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]

Financial Performance - OGE's consolidated earnings per share (EPS) increased to $0.56 in Q2 2021 from $0.43 in Q2 2020[9, 24] - OG&E's EPS increased to $0.42 in Q2 2021 from $0.39 in Q2 2020, driven by recovery of additional investments and mild weather[5, 24] - Natural Gas Midstream Operations contributed $0.16 EPS in Q2 2021, up from $0.10 in Q2 2020, due to higher commodity prices and gathering/processing volumes[6, 24] - HoldCo and Other Operations had a loss of $0.02 EPS in Q2 2021, an improvement from a loss of $0.06 in Q2 2020, due to lower income tax expense[8, 24] - Natural Gas Midstream Operations contributed earnings of $32 million to OGE Energy Corp in Q2 2021, compared to $19 million in Q2 2020[63] Load and Customer Growth - The company forecasts a 2% load growth in 2021 compared to 2020 levels[21, 26] - Customer growth is at 1.3% year-over-year[21, 27] - OG&E expects to add approximately 75 MW of additional load by the end of 2021[21] Capital Investments and Planning - The company has a 5-year capital plan of $4.2 billion[51] - Approximately $100 million was added to the 2021 capital plan[51] - The company plans to retire approximately 850 MW of generation capacity over the next 5 to 6 years[15] Securitization and Financing - OG&E received approximately $100 million in SPP settlements in June, reducing the impact of fuel costs from the February winter storm[42] - As of June 30, 2021, OG&E has recorded approximately $850 million as a regulatory asset related to winter storm Uri[42]

Part I - Financial Information [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements for OGE Energy Corp. and Oklahoma Gas and Electric Company, detailing financial position, performance, and significant events like Winter Storm Uri and the Enable merger [OGE Energy Corp. Consolidated Condensed Financial Statements](index=6&type=section&id=OGE%20Energy%20Corp.%20Consolidated%20Condensed%20Financial%20Statements) OGE Energy Corp. - Condensed Consolidated Statements of Income (Unaudited) | (In millions, except per share data) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $577.4 | $503.5 | $2,208.0 | $934.8 | | **Operating Income** | $129.5 | $125.4 | $178.1 | $181.7 | | **Net Income (Loss)** | $112.9 | $85.9 | $165.6 | $(405.9) | | **Diluted Earnings (Loss) Per Share** | $0.56 | $0.43 | $0.83 | $(2.03) | OGE Energy Corp. - Condensed Consolidated Balance Sheets (Unaudited) | (In millions) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $484.6 | $428.5 | | **Net Property, Plant and Equipment** | $9,575.2 | $9,374.6 | | **Total Assets** | $11,899.5 | $10,718.8 | | **Total Current Liabilities** | $911.3 | $697.4 | | **Long-Term Debt** | $4,495.2 | $3,494.4 | | **Total Stockholders' Equity** | $3,640.8 | $3,631.8 | | **Total Liabilities and Stockholders' Equity** | $11,899.5 | $10,718.8 | - Net cash used in operating activities was **$767.8 million** for the first six months of 2021, a significant decrease from the **$263.3 million** provided in the same period of 2020, primarily due to a large increase in regulatory assets related to Winter Storm Uri costs[26](index=26&type=chunk) - Net cash from financing activities increased to **$1,123.5 million** in the first half of 2021 from **$86.5 million** in H1 2020, largely due to proceeds from new long-term and short-term debt issued to manage Winter Storm Uri costs[26](index=26&type=chunk) [Oklahoma Gas and Electric Company Condensed Financial Statements](index=13&type=section&id=Oklahoma%20Gas%20and%20Electric%20Company%20Condensed%20Financial%20Statements) OG&E - Condensed Statements of Income (Unaudited) | (In millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $577.4 | $503.5 | $2,208.0 | $934.8 | | **Operating Income** | $131.2 | $126.1 | $180.3 | $183.1 | | **Net Income** | $85.1 | $78.9 | $96.3 | $98.8 | OG&E - Condensed Balance Sheets (Unaudited) | (In millions) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | $11,459.3 | $10,489.0 | | **Long-Term Debt** | $3,995.4 | $3,494.4 | | **Total Stockholder's Equity** | $4,558.0 | $3,975.6 | - OG&E's regulatory assets increased dramatically to **$1,278.3 million** at June 30, 2021, from **$415.6 million** at December 31, 2020, primarily due to deferred costs from Winter Storm Uri[42](index=42&type=chunk) [Combined Notes to Condensed Financial Statements](index=22&type=section&id=Combined%20Notes%20to%20Condensed%20Financial%20Statements) - OGE Energy operates through two segments: electric utility (OG&E) and natural gas midstream operations (investment in Enable), with the Enable investment accounted for using the equity method[54](index=54&type=chunk)[56](index=56&type=chunk) - In February 2021, Enable entered a merger agreement with Energy Transfer, after which OGE Energy will own approximately **3%** of Energy Transfer's limited partner units and plans to exit the midstream segment[94](index=94&type=chunk)[95](index=95&type=chunk) - Due to Winter Storm Uri, OG&E incurred extremely high natural gas and purchased power costs, leading regulators to allow creation of regulatory assets totaling **$754.8 million** for Oklahoma and **$92.3 million** for Arkansas as of June 30, 2021[65](index=65&type=chunk)[67](index=67&type=chunk) - In May 2021, OGE Energy and OG&E each issued **$500.0 million** of senior notes, primarily to repay **$900.0 million** of a **$1.0 billion** term loan taken in March 2021 for Winter Storm Uri costs[119](index=119&type=chunk)[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, including consolidated net income, segment performance, the impact of Winter Storm Uri, the Enable merger, capital expenditure plans, and 2021 earnings guidance for OG&E [Overview and Recent Developments](index=45&type=section&id=Overview%20and%20Recent%20Developments) - OGE Energy's strategy targets **5%** earnings per share growth at the electric utility through low-risk infrastructure investments and midstream cash distributions to create long-term shareholder value[179](index=179&type=chunk) - In February 2021, Enable entered a merger agreement with Energy Transfer, an all-equity transaction expected to close in 2021, after which OGE Energy will own **~3%** of Energy Transfer's units and plans to exit the midstream segment[181](index=181&type=chunk)[182](index=182&type=chunk) - Winter Storm Uri in February 2021 caused record electricity demand and high fuel costs, leading OG&E to record regulatory assets of **$754.8 million** (Oklahoma) and **$92.3 million** (Arkansas) and pursue securitization for recovery[183](index=183&type=chunk)[184](index=184&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) OGE Energy Consolidated Net Income | (In millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (Loss)** | $112.9 | $85.9 | $165.6 | $(405.9) | - OG&E's (Electric Utility) net income increased by **$6.2 million** in Q2 2021 compared to Q2 2020, primarily due to higher utility margin, partially offset by increased depreciation from new assets[189](index=189&type=chunk)[204](index=204&type=chunk) - OGE Holdings' (Natural Gas Midstream) net income increased by **$13.2 million** in Q2 2021, driven by higher equity in earnings from Enable due to improved NGL prices and crude oil volumes[189](index=189&type=chunk)[221](index=221&type=chunk) - For the six months ended June 30, 2021, OGE Energy's net income was **$165.6 million**, a significant turnaround from a net loss of **$405.9 million** in the prior year, primarily due to a **$780 million** impairment charge on the Enable investment in 2020[188](index=188&type=chunk)[142](index=142&type=chunk) - OG&E's utility margin for the six months ended June 30, 2021, decreased by **$1.2 million**, mainly due to a **$27.7 million** loss from the guaranteed flat bill program during Winter Storm Uri[206](index=206&type=chunk)[207](index=207&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) - Net cash used in operating activities was **$(767.8) million** for the first six months of 2021, a decrease of **$1,031.1 million** from the prior year, primarily due to payments for Winter Storm Uri fuel and purchased power costs[232](index=232&type=chunk)[233](index=233&type=chunk) - To manage Winter Storm Uri liquidity, OGE Energy entered a **$1.0 billion** term loan in March 2021, repaying **$900.0 million** in May 2021 with proceeds from new senior notes issued by OGE Energy and OG&E[249](index=249&type=chunk)[250](index=250&type=chunk) Projected Capital Expenditures (2021-2025) | (In millions) | 2021 | 2022 | 2023 | 2024 | 2025 | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | $850 | $785 | $810 | $835 | $860 | $4,140 | - In March 2021, Moody's and S&P's Global Ratings revised their outlook on OGE Energy and OG&E from stable to negative, citing regulatory uncertainty and weaker financial measures post-Winter Storm Uri[253](index=253&type=chunk)[254](index=254&type=chunk) [Environmental Laws and Regulations](index=61&type=section&id=Environmental%20Laws%20and%20Regulations) - OG&E monitors Biden administration actions on greenhouse gas emissions, including targets of **50-52%** reduction from 2005 levels by **2030** and a fully decarbonized power industry by **2035**, with unknown current impact on OG&E[260](index=260&type=chunk)[267](index=267&type=chunk) - OG&E has reduced carbon dioxide emissions by over **40%** compared to 2005 levels and expects to reach a **50%** reduction by **2030** through coal-to-natural gas conversions and renewable energy deployment[269](index=269&type=chunk) - The US Fish and Wildlife Service's proposed listing of the lesser prairie chicken as threatened in OG&E's service area could restrict or delay future development projects, especially for transmission lines[273](index=273&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its market risks compared to those disclosed in its 2020 Annual Report on Form 10-K - There have been no significant changes in the market risks affecting the Registrants from those discussed in the Registrants' 2020 Form 10-K[287](index=287&type=chunk) [Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Registrants' disclosure controls and procedures are effective as of the end of the reporting period[288](index=288&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[289](index=289&type=chunk) Part II - Other Information [Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no new significant legal cases and no material changes in previously reported proceedings, referencing its 2020 Form 10-K - There are no new significant legal cases to report, and no material changes in previously reported proceedings since the 2020 Form 10-K[291](index=291&type=chunk) [Risk Factors](index=67&type=page&id=Item%201A.%20Risk%20Factors) The company states there have been no significant changes to its risk factors from those disclosed in its 2020 Annual Report on Form 10-K - There have been no significant changes in the Registrants' risk factors from those discussed in the 2020 Form 10-K[292](index=292&type=chunk) [Other Information](index=67&type=section&id=Item%205.%20Other%20Information) This section discloses compensation adjustments for CFO and VP of Utility Operations, and an amendment to the Supplemental Executive Retirement Plan (SERP) affecting the CEO's retirement benefit calculation - On August 2, 2021, the Compensation Committee approved **10%** annual base salary increases for CFO W. Bryan Buckler (to **$440,000**) and VP of Utility Operations Donnie O. Jones (to **$355,000**)[294](index=294&type=chunk) - On August 3, 2021, the Board amended the Supplemental Executive Retirement Plan (SERP), increasing the retirement benefit formula from **1.32%** to **2.90%** of the participant's average final 36 months' compensation, multiplied by years of service[295](index=295&type=chunk)[297](index=297&type=chunk) - The Chairman, President, and CEO, Sean Trauschke, is currently the only employee designated as a participant in the amended SERP[295](index=295&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including supplemental indentures, an amendment to the Supplemental Executive Retirement Plan, and various Sarbanes-Oxley Act certifications

OGE Energy Corp (NYSE:OGE) Q1 2021 Earnings Conference Call May 6, 2021 9:00 AM ET Company Participants Jason Bailey - Director of IR Sean Trauschke - Chairman, President & CEO Bryan Buckler - CFO Conference Call Participants Constantine Lednev - Guggenheim Securities Insoo Kim - Goldman Sachs Brandon Lee - Mizuho Operator Good day and thank you for standing by. Welcome to First Quarter 2021 OGE Energy Earnings conference call. At this time all participants are in a listen-only mode. Later we'll conduct a q ...