OGE Energy Corp. (OGE) reported third quarter earnings per share (EPS) of $1.40, topping the Zacks Consensus EPS estimate of $1.34. However, EPS in the reported quarter came a dime short, compared to the year-ago EPS of $1.50.

Earnings were boosted in the reported quarter by strong results at Oklahoma Gas and Electric Company (OG&E), offset by cooler weather in the OG&E service territory, lower commodity prices in the Enogex midstream pipeline business and an increase in the number of shares outstanding.

In the reported quarter, OG&E registered earnings of $1.26 per share, compared to $1.15 per share in the year-ago quarter. Enogex recorded earnings of 18 cents per share, compared to 30 cents per share in the year-ago quarter. The holding company Incorporatedluding results from the OGE Energy Resources marketing business, posted a loss of 4 cents per share, compared to earnings of 5 cents per share in the year-ago period.

Revenue fell to $845.3 million in the reported quarter from $1.3 billion in the year-ago quarter due to a tepid economy and a cooler summer affecting demand for electricity. Electric Utility revenues fell to $577.9 million from $682.5 million in the year-ago quarter. Similarly, Natural Gas Pipeline revenues fell to $267.4 million from $571.8 million last year.

OGE Energy Resources reported consolidated gross margin on revenues of $431 million in the reported quarter, compared to $418 million in the year ago quarter. Operating income was $230 million, compared to $231 million in the year ago period.

OG&E reported gross margin on revenues of $342 million, compared to $302 million in the third quarter of 2008. The increase was primarily due to retail rate increases in 2009, partially offset by milder weather. Also affecting OG&E’s quarterly results were higher expenses primarily due to increased depreciation expense associated with higher levels of plant in service and higher operation and maintenance expenses, mainly as a result of increased payroll and benefits costs. Net income at OG&E was $123 million in the quarter, compared to $107 million year-over-year.

Enogex reported gross margin on revenues of $93 million in the quarter, compared to $108 million in the comparable quarter last year. The decrease was due primarily to lower commodity prices, partially offset by continued volume growth. Net income at Enogex was $18 million in the third quarter this year, compared with $28 million in the third quarter of 2008.

OGE Energy reaffirmed its full-year consolidated EPS guidance between $2.30 and $2.60. For fiscal 2010, the company expects EPS to be in the range of $2.70 to $2.95.

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