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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenues from contracts with customers [1] $ 848.2 $ 687.8 $ 3,033.7 $ 1,600.2
Other revenues 16.2 14.3 38.7 36.7
Operating revenues 864.4 702.1 3,072.4 1,636.9
FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE 330.1 209.1 1,876.9 481.5
OPERATING EXPENSES        
Other operation and maintenance 115.4 109.7 343.9 347.2
Depreciation and amortization 108.6 100.5 310.2 292.2
Taxes other than income 25.5 24.8 78.5 76.3
Operating expenses 249.5 235.0 732.6 715.7
OPERATING INCOME 284.8 258.0 462.9 439.7
OTHER INCOME (EXPENSE)        
Equity in earnings (losses) of unconsolidated affiliates [2] 41.2 15.8 127.9 (703.8) [3]
Allowance for equity funds used during construction 1.9 1.1 4.8 3.7
Other net periodic benefit expense (1.6) (2.0) (4.3) (3.5)
Other income 5.6 5.5 14.9 27.0
Other expense (3.8) (5.4) (12.5) (23.9)
Net other income (expense) 43.3 15.0 130.8 (700.5)
INTEREST EXPENSE        
Interest on long-term debt 39.3 38.7 115.5 114.1
Allowance for borrowed funds used during construction (1.0) (0.5) (2.5) (1.5)
Interest on short-term debt and other interest charges 1.2 1.6 5.8 6.3
Interest expense 39.5 39.8 118.8 118.9
INCOME (LOSS) BEFORE TAXES 288.6 233.2 474.9 (379.7)
INCOME TAX EXPENSE (BENEFIT) 36.1 55.8 56.8 (151.2)
NET INCOME (LOSS) $ 252.5 $ 177.4 $ 418.1 $ (228.5)
BASIC AVERAGE COMMON SHARES OUTSTANDING 200.2 200.1 200.1 200.1
DILUTED AVERAGE COMMON SHARES OUTSTANDING 200.4 200.4 200.3 200.1
BASIC EARNINGS (LOSS) PER AVERAGE COMMON SHARE $ 1.26 $ 0.89 $ 2.09 $ (1.14)
DILUTED EARNINGS (LOSS) PER AVERAGE COMMON SHARE $ 1.26 $ 0.89 $ 2.09 $ (1.14)
Other Comprehensive Income (Loss), Net of Tax $ 1.6 $ 2.2 $ 5.8 $ 2.2
Comprehensive Income (Loss), Net of Tax, Attributable to Parent 254.1 179.6 423.9 (226.3)
OG&E [Member]        
Revenues from contracts with customers 848.2 687.8 3,033.7 1,600.2
Other revenues 16.2 14.3 38.7 36.7
Operating revenues 864.4 702.1 3,072.4 1,636.9
FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE 330.1 209.1 1,876.9 481.5
OPERATING EXPENSES        
Other operation and maintenance 115.8 110.1 344.4 348.8
Depreciation and amortization 108.6 100.5 310.2 292.2
Taxes other than income 24.6 23.9 75.3 72.8
Operating expenses 249.0 234.5 729.9 713.8
OPERATING INCOME 285.3 258.5 465.6 441.6
OTHER INCOME (EXPENSE)        
Allowance for equity funds used during construction 1.9 1.1 4.8 3.7
Other net periodic benefit expense (1.1) (1.3) (3.2) (2.8)
Other income 2.4 1.1 5.2 3.7
Other expense (0.3) (0.3) (1.0) (1.7)
Net other income (expense) 2.9 0.6 5.8 2.9
INTEREST EXPENSE        
Interest on long-term debt 38.4 38.7 114.2 114.1
Allowance for borrowed funds used during construction (1.0) (0.5) (2.5) (1.5)
Interest on short-term debt and other interest charges 0.6 1.3 2.6 3.1
Interest expense 38.0 39.5 114.3 115.7
INCOME (LOSS) BEFORE TAXES 250.2 219.6 357.1 328.8
INCOME TAX EXPENSE (BENEFIT) 26.4 20.1 37.0 30.5
NET INCOME (LOSS) 223.8 199.5 320.1 298.3
Other Comprehensive Income (Loss), Net of Tax 0.0 0.0 0.0 0.0
Comprehensive Income (Loss), Net of Tax, Attributable to Parent $ 223.8 $ 199.5 $ 320.1 $ 298.3
[1] In February 2021, Winter Storm Uri resulted in record winter peak demand for electricity and extremely high natural gas and purchased power prices in OG&E's service territory. Operating revenues for the nine months ended September 30, 2021 significantly increased due to increased fuel, purchased power and direct transmission expenses, which are generally recoverable from customers, as a result of Winter Storm Uri. For further discussion, see Note 15 and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation."
[2] For the three and nine months ended September 30, 2020, Enable recorded a $225.0 million impairment on its SESH equity method investment, which is included in their net loss for each period. Enable estimated the fair value of this equity method investment was below the carrying value at September 30, 2020 and concluded the decline in value was other than temporary due to the expiration of a transportation contract and the current status of renewal negotiations. The impairment ran through OGE Energy's portion of Enable net income (loss) and was offset by basis differences that flow through the amortization of basis difference and dilution recognition line item above.
[3] In 2020, OGE Energy recorded a $780.0 million impairment on its investment in Enable, as further discussed in Note 4