Investment in Unconsolidated Affiliates (Tables)

9 Months Ended

Sep. 30, 2020

Reconciliation of Basis Difference [Line Items]

Reconciliation of Basis Difference [Table Text Block]

The following table reconciles the difference between OGE Energy's investment in Enable and its underlying equity in the net assets of Enable (basis difference) from December 31, 2019 to September 30, 2020. The basis difference is being amortized over approximately 30 years.


(In millions)
Basis difference at December 31, 2019	$	652.5
Amortization of basis difference (A)	(86.1)
Impairment of OGE Energy's equity method investment in Enable	780.0

Basis difference at September 30, 2020	$	1,346.4

(A) Includes proportional basis difference recognition due to dilution.

Reconciliation of Equity in Earnings of Unconsolidated Affiliates [Table Text Block]

The following table reconciles the Company's equity in earnings (losses) of unconsolidated affiliates for the three and nine months ended September 30, 2020 and 2019. For further discussion of Enable's net income (loss), see "Item 2. Management's Discussion and Analysis - Results of Operations - OGE Holdings (Natural Gas Midstream Operations)."



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2020			2019			2020			2019
Enable net income (loss)	$	(173.0)		$	123.0		$	(35.0)		$	351.1
OGE Energy's percent ownership at period end	25.5		%	25.5		%	25.5		%	25.5		%
OGE Energy's portion of Enable net income (loss)	$	(44.0)		$	31.2		$	(8.9)		$	89.4



Amortization of basis difference and dilution recognition (A)	59.8			7.1			85.1			15.4
Impairment of OGE Energy's equity method investment in Enable	—			—			(780.0)			—
Equity in earnings (losses) of unconsolidated affiliates (B)	$	15.8		$	38.3		$	(703.8)		$	104.8

(A) Includes loss on dilution, net of proportional basis difference recognition.

(B) 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.

The following table summarizes related party transactions between OG&E and Enable during the three and nine months ended September 30, 2020 and 2019.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating revenues:
Electricity to power electric compression assets	$	4.5	$	4.5	$	11.7	$	12.1
Cost of sales:
Natural gas transportation services	$	9.3	$	9.4	$	23.4	$	33.5

Natural gas purchases (sales)	$	3.2	$	(1.1)	$	2.2	$	(5.4)

Summarized Balance Sheet Financial Information, Equity Method Investment [Table Text Block]

Summarized unaudited financial information for 100 percent of Enable is presented below at September 30, 2020 and December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019.


	September 30,		December 31,
Balance Sheet	2020		2019
(In millions)
Current assets	$	373	$	389
Non-current assets	$	11,402	$	11,877
Current liabilities	$	644	$	780
Non-current liabilities	$	4,055	$	4,077

Summarized Income Statement Financial Information, Equity Method Investment [Table Text Block]


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Income Statement	2020		2019		2020		2019
(In millions)
Total revenues	$	596	$	699	$	1,759	$	2,229
Cost of natural gas and NGLs	$	250	$	263	$	653	$	958
Operating income	$	100	$	175	$	326	$	507
Net income (loss)	$	(173)	$	123	$	(35)	$	351