Key Takeaways OGE plans $6.5B in infrastructure spending from 2025-2029 to improve grid safety, resiliency and reliability.OGE continues expanding renewable generation with wind and solar assets across Oklahoma and Arkansas.OGE Energy rewards shareholders with a steady dividend, currently offering a yield of 3.95%.OGE Energy Corp. (OGE) focuses on consistent investments in infrastructure upgrades to better serve its customers. The company is also steadily expanding its renewable generation assets. Given its ...

Core Viewpoint - Investors in the Utility - Electric Power sector should consider OGE Energy and IdaCorp as potential undervalued stocks, with OGE being highlighted as the superior value option based on various valuation metrics [1][6]. Valuation Metrics - Both OGE Energy and IdaCorp currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - OGE has a forward P/E ratio of 18.72, while IdaCorp has a forward P/E of 21.52, suggesting OGE may be more attractively priced [5]. - OGE's PEG ratio is 2.68, compared to IdaCorp's PEG ratio of 2.69, indicating similar expected earnings growth rates [5]. - OGE's P/B ratio is 1.79, while IdaCorp's P/B ratio is 1.95, further supporting OGE's position as a more favorable value stock [6]. - Based on these metrics, OGE holds a Value grade of B, while IdaCorp has a Value grade of C, reinforcing the conclusion that OGE is the better value option [6].

Core Viewpoint - OGE Energy Corp. is recognized as a strong investment option, particularly for retirement portfolios, due to its consistent dividend growth and strategic expansion plans to meet rising energy demand [1][3]. Group 1: Dividend Information - OGE Energy announced a dividend of $0.425 per share, payable on January 30, 2026, to shareholders on record as of January 5, 2026 [3]. - The company has increased its dividend payouts for 19 consecutive years, resulting in an annual dividend yield of 3.96%, positioning it among the top utility dividend stocks [3]. Group 2: Expansion and Investment - OGE Energy is actively investing in expansion to address the anticipated surge in energy demand driven by the AI boom and rapid industrialization [4]. - The company launched a public offering of $345 million in common stock, with an additional option for underwriters to purchase up to $51.75 million in shares, aimed at funding capital expenditures and refinancing debt [4]. Group 3: Market Position and Analyst Ratings - Barclays has reiterated a 'Buy' rating for OGE Energy, setting a price target of $51, indicating an upside potential of over 18% [5].

Core Insights - OGE Energy Corp. is positioned for stronger long-term performance through ongoing capital investments, carbon-reduction initiatives, and a robust renewable generation portfolio [1] - The company is expanding its renewable portfolio to capture incentives from large clean-energy investments [2] - OGE Energy plans to invest $6.50 billion from 2025 to 2029 to upgrade infrastructure and enhance grid reliability [3] - The company expects long-term earnings growth of 5-7% and aims to reward shareholders with steady dividend hikes [4] - Supply-chain disruptions and rising production costs pose risks to OGE Energy's project timelines [5][6] - OGE Energy's share price has increased by 2.8% over the past year, compared to the industry's 18.9% growth [7] Factors Supporting OGE Energy - The company operates several wind farms with a total capacity of nearly 450 MW and solar sites with 32.2 MW as of December 31, 2024 [2] - OGE Energy offers voluntary renewable programs for Oklahoma retail customers and plans to add more zero-emission resources [2] - The planned capital spending of $6.50 billion represents a 4% increase from the previous five-year plan of $6.25 billion [3] Challenges Facing OGE Energy - Supply-chain disruptions due to raw material inflation, logistical challenges, and component shortages may delay construction and equipment deliveries [5] - Rising electricity production costs, driven by increased fuel prices and inflation, have led to an 11% year-over-year surge in fuel, purchased power, and transmission expenses in Q3 2025 [6] Share Price Performance - OGE Energy's shares have risen 2.8% in the past year, while the industry has seen an 18.9% growth [7]

Core Viewpoint - Edison International (EIX) is currently viewed as a superior value opportunity compared to OGE Energy (OGE) based on various valuation metrics [1] Valuation Metrics - EIX has a forward P/E ratio of 9.59, significantly lower than OGE's forward P/E of 19.70 [5] - EIX's PEG ratio is 0.88, indicating better value relative to its expected earnings growth compared to OGE's PEG ratio of 2.82 [5] - EIX's P/B ratio stands at 1.27, while OGE's P/B ratio is higher at 1.88, further supporting EIX's valuation advantage [6] Earnings Outlook - Both EIX and OGE hold a Zacks Rank of 2 (Buy), indicating an improving earnings outlook due to positive analyst estimate revisions [3]

Core Insights - OGE Energy Corp. is recognized as one of the 14 Best Utility Dividend Stocks to Buy Now [1] - The company has launched a public offering of $345 million in common stock, with an additional option for underwriters to purchase up to $51.75 million [3] - Proceeds from the stock offering will be used for capital expenditures and general corporate purposes, including debt repayment [3] Company Overview - OGE Energy operates as an energy services provider in the United States, with a capacity of approximately 7,116 megawatts for generating, transmitting, distributing, and selling electric energy [2] Financial Ratings - Mizuho has reiterated a 'Buy' rating on OGE Energy with a target price of $47, indicating a potential upside of 6.5% [4] - Wells Fargo has maintained a 'Hold' rating on the stock [4]

Core Viewpoint - OGE Energy Corp. has announced a public offering of 8,023,256 shares of common stock at a price of $43.00 per share, aiming to raise approximately $345 million to fund capital expenditures and other corporate purposes [1][10]. Offering Details - The offering consists of 8,023,256 shares, with 4,011,628 shares being sold directly by OGE Energy Corp. and the remaining shares sold by forward sellers [1]. - Underwriters, including Morgan Stanley and J.P. Morgan, have been appointed to manage the offering, with an option to purchase an additional 1,203,488 shares [2]. - The expected closing date for the offering is around November 24, 2025, subject to customary conditions [2]. Forward Sale Agreements - OGE Energy Corp. has entered into forward sale agreements with Morgan Stanley and J.P. Morgan, agreeing to sell the same number of shares borrowed from third parties at an initial forward sale price of $41.71 per share [3]. - Settlement of these forward sale agreements is anticipated to occur within 18 months following the offering's completion [3]. Use of Proceeds - The net proceeds from the direct sale of shares will be allocated to general funds, capital expenditures, and debt repayment or refinancing [4]. - OGE Energy Corp. will not receive initial proceeds from shares sold by forward sellers but intends to utilize proceeds from the settlement of forward sale agreements for similar purposes [4]. Company Overview - OGE Energy Corp. is the parent company of OG&E, serving approximately 910,000 customers in Oklahoma and western Arkansas, focusing on the generation, transmission, distribution, and sale of electric energy [6].

Core Viewpoint - OGE Energy Corp. has initiated a public offering of $345 million in common stock, with plans to use the proceeds for capital expenditures and general corporate purposes [1][4]. Offering Details - The company expects to sell approximately $172.5 million of shares directly to underwriters and an additional $172.5 million through forward sale agreements [1]. - An option to purchase up to $51.75 million of additional shares will be granted to the underwriters [1]. - Morgan Stanley and J.P. Morgan are acting as joint lead bookrunners for the offering [2]. Forward Sale Agreements - OGE Energy Corp. will enter into forward sale agreements with Morgan Stanley and J.P. Morgan, agreeing to sell the same number of shares borrowed from third parties [3]. - The initial forward sale price per share will match the price at which underwriters purchase shares in the offering, with settlement expected within 18 months [3]. Use of Proceeds - The net proceeds from the offering will be allocated to fund capital projects, including the Horseshoe Lake generating units and the Ft. Smith to Muskogee Transmission line, as well as for debt repayment [4]. - The company will not initially receive proceeds from shares sold by forward sellers to underwriters [4]. Company Overview - OGE Energy Corp. is the parent company of OG&E, serving approximately 910,000 customers in Oklahoma and western Arkansas [6].

Financial Data and Key Metrics Changes - Consolidated earnings for Q3 2025 were reported at $1.14 per share, an increase from $1.09 per share in the same quarter last year [3][8] - The electric company achieved net income of $243 million, or $1.20 per diluted share, compared to $225 million, or $1.20 per share last year [8][9] - The holding company reported a loss of $12 million, or $0.06 per diluted share, compared to a loss of $6 million, or $0.03 per share last year [9] Business Line Data and Key Metrics Changes - The main driver for the increase in net income was the recovery of capital investments, despite higher O&M and income taxes [9] - Year-over-year customer growth was just under 1% in Q3, with weather-normalized load growth at 6.5% [9][10] - The company expects total retail normalized load growth of approximately 7.5% in 2025 [9] Market Data and Key Metrics Changes - Oklahoma customers will see a decrease in their monthly bill due to a reduction in the fuel cost adjustment, averaging $6.75 lower per month [5] - The company has experienced load growth that surpasses national trends, particularly from data centers [5][6] Company Strategy and Development Direction - The company is focused on maintaining low rates to sustain growth and has a strong capital investment plan, including a $250 million project for the Fort Smith to Muskogee transmission line [10][11] - The company is negotiating with existing bidders and anticipates issuing more RFPs to address future generation needs [4][10] - The company aims to achieve a consolidated earnings growth rate of 5%-7% based on the midpoint of its 2025 guidance [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering results in the top half of the earnings guidance range for 2025 [8][12] - The company highlighted strong local economies and job growth in Oklahoma and Arkansas, contributing to its operational success [7][10] - Management emphasized the importance of affordability and operational excellence in driving customer demand and business growth [6][7] Other Important Information - The company has a strong balance sheet, which is considered a competitive advantage [12] - The company is in serious negotiations regarding data center load, with expectations for announcements in the near future [6][65] Q&A Session Summary Question: CapEx needs and RFP process - Management anticipates approval for the pre-approval request soon and plans to layer in additional filings and RFPs as needed [18][20] Question: Regulatory constructs and ROE lag - Management indicated that they have a good track record on minimizing ROE lag and will provide guidance for next year in February [21][22] Question: 2025 SPP ITP plan and competitive position - Management acknowledged the robust SPP plan but noted that further milestones are needed before providing a firm outlook [31] Question: Data center project negotiations - Management confirmed ongoing negotiations and the requirement to file a large load tariff as part of the pre-approval settlement [32][65] Question: Load growth outlook for 2025 - Management clarified that the load growth outlook of 7.5% for 2025 is at the low end of the prior range due to timing issues with customer ramp-up [34] Question: Meeting capacity needs by 2030 - Management confirmed that they expect to meet some capacity needs from the current RFP and will file a new RFP to address the remaining shortfall [46] Question: Dividend growth rate - Management stated that the dividend growth rate is targeted to align with investment opportunities, aiming for a payout ratio of 65%-70% [55] Question: Rate filing cadence - Management confirmed that the philosophy regarding rate filings remains unchanged, with adjustments based on settlement agreements [56]

Financial Data and Key Metrics Changes - Consolidated earnings for the third quarter were reported at $1.14 per share, an increase from $1.09 per share in the previous year [3][8] - The electric company achieved net income of $243 million, or $1.20 per diluted share, compared to $225 million, or $1.20 per share last year [8][9] - Consolidated net income was $231 million, reflecting a year-over-year increase driven by capital investment recovery, despite higher operational costs [8][9] Business Line Data and Key Metrics Changes - The electric company’s performance was bolstered by increased recovery of capital investments, while the holding company reported a loss of $12 million, attributed to higher interest expenses [9][10] - Year-over-year customer growth was just under 1%, with weather-normalized load growth at 6.5% through the third quarter [9][10] Market Data and Key Metrics Changes - Oklahoma customers will see a decrease in their monthly bills due to a reduction in the fuel cost adjustment, averaging $6.75 lower per month [5][6] - The company has experienced load growth that surpasses national trends, particularly driven by demand from data centers [5][6] Company Strategy and Development Direction - The company is focused on maintaining low rates to sustain growth and has plans for significant capital projects, including a $250 million transmission line project [10][11] - The company aims to deliver a consolidated earnings growth rate of 5% to 7% based on the midpoint of its 2025 guidance [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering results in the top half of the earnings guidance range for 2025, citing strong operational execution and favorable regulatory outcomes [3][8] - The company is optimistic about future growth opportunities, particularly in the data center sector, and is actively negotiating with potential customers [6][66] Other Important Information - The company has updated its capital plan to include new projects aimed at addressing reliability and capacity issues [10][11] - The balance sheet remains strong, providing a competitive advantage in the industry [12] Q&A Session Summary Question: CapEx needs and RFP process acceleration - Management indicated that they anticipate approval for the pre-approval request soon and will layer in additional filings as needed [18][20] Question: Impact of new regulatory constructs on ROE - Management noted that they have a good track record on minimizing ROE lag and will provide guidance for next year in February [21][22] Question: 2025 SPP ITP plan and competitive position - Management acknowledged the robust plan but indicated that further milestones need to be met before providing a firm outlook [31] Question: Data center contract negotiations - Management confirmed that serious negotiations are ongoing and that any agreements would be followed by necessary filings for approval [66] Question: Long-term EPS CAGR outlook - Management expressed confidence in maintaining a solid growth outlook regardless of specific deals, emphasizing a consistent approach to guidance [71]