OGE Energy Corp (NYSE:OGE) Q1 2022 Earnings Conference Call May 5, 2022 9:00 AM ET Company Participants Jason Bailey - Director, IR Robert Trauschke - Chairman, President & CEO Bryan Buckler - CFO Conference Call Participants Constantine Lednev - Guggenheim Securities Wayne Lee - Mizuho Securities Operator Good day, and thank you for standing by. Welcome to the Q1 2022 OGE Energy Corp. Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to Jason Bailey, Director o ...

We Energize Life Q1 2022 Earnings and Business Update Conference Call May 5, 2022 Safe Harbor Some of the matters discussed in this presentation release may contain forward-looking statements that are subject to certain risks, uncertainties, and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "intend," "objective, "plan," "possible," "potential," "project," "target" and similar expressions. Actual results ...

Financial Performance - For the three months ended March 31, 2022, operating revenues were $589.3 million, a decrease of 6.4% from $630.6 million in the same period of 2021[21] - Net income for the same period was $279.5 million, significantly up from $52.7 million in 2021, representing a 429.4% increase[21] - Basic earnings per share increased to $1.40 from $0.26, reflecting a substantial growth in profitability[21] - Operating income rose to $83.1 million, compared to $48.6 million in the prior year, marking an increase of 71.1%[21] - Operating revenues decreased to $589.3 million for the three months ended March 31, 2022, down from $1,630.6 million in the prior year, a decline of 63.9%[37] - Operating income improved to $83.9 million in Q1 2022, compared to $49.1 million in Q1 2021, marking an increase of 70.5%[37] - OGE Energy reported a net income of $39.0 million for the three months ended March 31, 2022, compared to $11.2 million for the same period in 2021, representing a significant increase[64] - Net income for OGE Energy reached $279.5 million in Q1 2022, a substantial increase from $52.7 million in Q1 2021, driven by gains on equity securities[123] Cash Flow and Expenditures - Cash flows from operating activities were $58.9 million, a recovery from a cash outflow of $940.2 million in the same quarter of 2021[26] - Capital expenditures for the quarter were $220.1 million, up from $158.4 million in the prior year[26] - Cash flows from operating activities provided $51.4 million in Q1 2022, a recovery from a cash outflow of $939.9 million in Q1 2021[40] - Capital expenditures for Q1 2022 were $220.1 million, compared to $158.4 million in Q1 2021, representing a rise of 39.0%[40] Assets and Liabilities - Total assets increased to $13,093.6 million as of March 31, 2022, compared to $12,606.4 million at the end of 2021[29] - Total liabilities increased to $8,830.9 million as of March 31, 2022, compared to $8,550.1 million at December 31, 2021, reflecting a growth of 3.3%[32] - Total stockholders' equity rose to $4,262.7 million as of March 31, 2022, up from $4,056.3 million at December 31, 2021, an increase of 5.1%[32] - Short-term debt increased to $731.5 million as of March 31, 2022, compared to $486.9 million at December 31, 2021, reflecting a rise of 50.1%[32] - Total current liabilities increased to $1,342.8 million as of March 31, 2022, from $1,089.6 million at December 31, 2021, an increase of 23.2%[32] - Long-term debt remained relatively stable at $4,497.0 million as of March 31, 2022, compared to $4,496.4 million at December 31, 2021[32] Investments and Gains - The company reported a gain on equity securities of $282.3 million, compared to no gain in the previous year[21] - The equity securities investment in Energy Transfer rose to $1,067.4 million from $785.1 million, indicating a significant increase in investment value[29] - OGE Energy recognized a pre-tax unrealized gain of $282.3 million related to its investment in Energy Transfer's equity securities for the three months ended March 31, 2022[71] - Distributions received from Energy Transfer amounted to $16.7 million during the three months ended March 31, 2022[72] - OGE Energy sold 21.75 million Energy Transfer limited partner units by the end of April 2022, resulting in pre-tax net proceeds of $246.0 million, reducing its ownership to approximately 2%[73] - OGE Energy's investment in Energy Transfer is accounted for as an equity investment with a readily determinable fair value under ASC 321[71] Regulatory and Risk Factors - The company has identified various risk factors that could impact future performance, including economic conditions and regulatory changes[16] - OGE Energy has reserved $13.0 million for potential refunds related to FERC proceedings, which may impact customers through rider mechanisms or the FERC formula rate[136] - The company anticipates an annual electric revenue increase of $4.2 million following the approval of a non-unanimous joint settlement agreement by the APSC, effective April 1, 2022[130] - OGE Energy is currently evaluating the potential impacts of proposed changes to FERC's transmission incentives policy, which could affect its return on equity[138] Employee and Pension Information - The total compensation expense for OGE Energy for the three months ended March 31, 2022, was $2.3 million, slightly down from $2.5 million in the same period of 2021[99] - The settlement cost for the pension plan and restoration of retirement income plan was $9.6 million for the three months ended March 31, 2022, compared to $4.1 million in the same period of 2021[82] - The balance of the pension plan at March 31, 2022, was $(18.3) million, an improvement from $(26.1) million at December 31, 2021[80] - The total net periodic benefit cost for OGE Energy's Pension Plan for the three months ended March 31, 2022, was $13.9 million, down from $27.2 million in the same period of 2021, a decrease of 48.9%[116] - OG&E's total net periodic benefit cost for the Restoration of Retirement Income Plan was $6.0 million for Q1 2022, compared to $26.6 million in Q1 2021, a reduction of 77.5%[117] Regulatory Approvals and Rate Reviews - OG&E has regulatory approval to incur up to $800.0 million in short-term borrowings for a two-year period ending December 31, 2022[113] - OG&E filed for a general rate review seeking a rate increase of $163.5 million and a 10.2 percent return on equity[146] - The amended Arkansas statute allows for recovery of extraordinary costs through securitization, with a financing order to be issued within 135 days[140] - OG&E's motion for special regulatory treatment to defer fuel costs includes a carrying charge of 6.60 percent over a ten-year period[139] - The APSC granted OG&E an extension of its Formula Rate Plan Rider for an additional five years[142] - Initial intervenor testimony for the general rate review was filed on April 27, 2022, with a hearing expected in Q2 2022[146]

OGE Energy Corp. (NYSE:OGE) Q4 2021 Earnings Conference Call February 24, 2022 9:00 AM ET Company Participants Jason Bailey - Director, Investor Relations Sean Trauschke - Chairman, President and CEO Bryan Buckler - Chief Financial Officer Conference Call Participants Constantine Lednev - Guggenheim Partners Cody Clark - Bank of America Insoo Kim - Goldman Sachs Travis Miller - Morningstar Brandon Lee - Mizuho Operator Good day and thank you for standing by. Welcome to the Q4 2021 OGE Energy Corp. Earnings ...

We Energize Life Q4 2021 Earnings and Business Update Conference Call February 24, 2022 Safe Harbor Some of the matters discussed in this presentation may contain forward-looking statements that are subject to certain risks, uncertainties, and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "intend," "objective," "plan," "possible," "potential," "project," "target" and similar expressions. Actual results ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Exact name of registrants as specified in their charters, address of principal executive | Commission File Number | | --- | offices and registrants' telephone nu ...

We Energize Life Q3 2021 Earnings and Business Update Conference Call November 4, 2021 Safe Harbor Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate", "believe", "estimate", "expect", "intend", "objective", "plan", "possible", "potential", "project", "target" and similar expressions. Actual results ma ...

OGE Energy Corp. (NYSE:OGE) Q3 2021 Earnings Conference Call November 4, 2021 9:00 AM ET Company Participants Jason Bailey - Director of Investor Relations Sean Trauschke - Chairman, President & Chief Executive Officer Bryan Buckler - Chief Financial Officer Conference Call Participants Constantine Lednev - Guggenheim Cody Clark - Bank of America Insoo Kim - Goldman Sachs Travis Miller - Morningstar Wayne Lee - Mizuho Operator Ladies and gentlemen, thank you for standing by and welcome to the OGE Energy Cor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OR P.O. Box 321 Oklahoma City, Oklahoma 73101-0321 405-553-3000 | | Exact name of registrants as specified in their charters, address of | | | --- | --- | --- | | Commission File Number | principal executive offices and registrants' telephone number | I.R.S. Employer Identification No. | | 1-12579 | OGE ENERGY CORP. | 73-1481638 | | 1-1097 | OKLAHOMA GAS AND ELECTRIC COMPANY | 73-0382390 | State or other jurisdiction of incorp ...

Financial Data and Key Metrics Changes - For Q2 2021, the company reported consolidated earnings of $0.56 per share, an increase from $0.43 per share in Q2 2020, driven by higher utility earnings and improved performance in midstream operations [5][24][25] - The utility earnings were $0.42 per share, while earnings from the investment in Enable were $0.16 per share, with a holding company loss of $0.02 per share [5][24] - The company achieved net income of $113 million in Q2 2021 compared to $86 million in the same quarter of 2020 [24] Business Line Data and Key Metrics Changes - The utility segment's performance improved despite mild weather, primarily due to higher revenues from capital investments and customer growth [24] - The natural gas midstream operation reported earnings of $0.16 per share, up from $0.10 per share in 2020, attributed to higher commodity prices and improved volumes [25] Market Data and Key Metrics Changes - Customer growth was reported at 1.3% year-over-year, with commercial and industrial customer classes showing significant load growth of approximately 12% and 9% respectively [26] - The overall load increased by 5.7% during the quarter, aligning with expectations, and the company anticipates a weather-normalized load increase of more than 2% above 2020 levels for the full year [26][16] Company Strategy and Development Direction - The company is focusing on a draft integrated resource plan (IRP) that includes retiring approximately 850 megawatts of aging gas plants over the next five to six years, replacing them with solar and hydrogen-capable combustion turbines [11][12] - The strategy emphasizes fuel diversity and cleaner energy solutions while maintaining affordable rates, with a long-term EPS growth target of 5% through 2025 [30][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the economies within their service territory, noting low unemployment rates compared to national averages [22] - The company remains committed to maintaining affordable rates, which is seen as a competitive advantage in attracting new customers and supporting sustained load growth [20][22] Other Important Information - The company received its 19th EEI Emergency Response award for power restoration efforts, highlighting its commitment to service reliability [6] - A securitization filing in Oklahoma is on track to recover approximately 85% of costs associated with the February winter storm, with a hearing scheduled for October [13][33] Q&A Session Summary Question: Can you provide insights on the IRP filing and CapEx? - Management indicated a gradual increase in capital expenditures, planning to layer in 100 to 150 megawatts of solar capacity annually while managing customer impact [41] Question: How will the exit from Enable affect capital allocation? - The focus will be on reinvesting in the business and growing the company, with a commitment to increasing dividends as well [43][44] Question: What is the remaining book value on coal plants and plans for retirement? - Management stated that coal plants have a significant useful life, with no immediate plans for accelerated retirement, focusing instead on the next five years [55]