OGE Energy: An Excellent Utility With Growing Exposure To Midstream Operations In Prolific Shale Plays
- OGE is an electric utility company with growing exposure to midstream operations via interest in an MLP.
- Enable Midstream Partners has midstream operations in the prolific SCOOP, STACK, and emerging Springer shale plays of Oklahoma.
- OGE will likely deliver a 10% total return over the next 12 months. In 2015, MLP distributions to GP OGE will grow as its 60% claim on IDRs kick-in.
- Total returns could then accelerate to the 15-20% range as midstream contributions to EPS grow.