Financial Data and Key Metrics Changes - The company reported consolidated earnings of $1.14 per share for Q3 2025, an increase from $1.09 per share in the same quarter last year [3][9] - Consolidated net income was $231 million, compared to $219 million in the previous year [9] - 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 [9][10] - 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 [10] 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 [10] - Year-over-year customer growth was just under 1% in Q3, with weather-normalized load growth at 6.5% [10][11] - The company expects total retail normalized load growth of approximately 7.5% in 2025 [10] Market Data and Key Metrics Changes - The company noted that 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 unemployment rate in Oklahoma City remains below 4% for the 48th consecutive month, indicating strong local economic conditions [8] Company Strategy and Development Direction - The company is focused on building 450 MW of natural gas generation, expected to be operational by 2029, and has 550 MW of combustion turbines under construction [4] - The updated capital plan includes a $250 million project for the Fort Smith to Muskogee transmission line, aimed at addressing reliability and capacity issues [11] - The company aims to maintain competitive low rates while supporting growth and reliability in its service area [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering results in the top half of the 2025 earnings guidance range, citing strong operational performance and favorable regulatory outcomes [3][9] - The company is optimistic about future growth opportunities, particularly in the data center sector, which is expected to contribute to load growth [7][9] Other Important Information - The company has reached a settlement regarding its Oklahoma pre-approval request, which may shift the planned rate review to the second half of next year [13] - The company is committed to maintaining a strong balance sheet, which is considered a competitive advantage [12] Q&A Session Summary Question: CapEx needs and RFP process - Management anticipates approval for the pre-approval request soon and plans to layer in updates as they progress with the RFP process [16][17] Question: Regulatory constructs and ROE lag - Management indicated that they have a good track record on minimizing ROE lag and will include benefits in the 2026 planning assumptions [18] Question: 2025 load growth outlook - Management confirmed 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 load [26] Question: Dividend growth rate - The company targets a dividend growth rate of 65% to 70% payout ratio, with plans to reassess capital allocation once that target is reached [44] Question: Data center negotiations - Management confirmed they are in serious negotiations regarding data center projects and will file necessary approvals with the commission [54]

Financial Performance - Consolidated earnings were $1.14 per average diluted share in Q3 2025[4, 10] - Electric company earnings were $1.20 per average diluted share in Q3 2025[4, 10] - Other operations, including holding company, experienced a loss of $0.06[4, 10] - The company expects to be in the top half of the original 2025 EPS guidance range[4, 10] Operational Highlights - A settlement agreement was reached with the majority of parties in the pre-approval filing in Oklahoma[9] - 550 MW natural gas combustion turbines are expected to become operational in 2026, with 450 MW pending approval[9] - Customer growth is approximately 1%, and year-to-date weather-normalized load is 6.5%, with an expected 7.5% load growth in 2025[14] Capital Investments and Financing - The company issued $350 million in long-term debt at OG&E in April[14] - The capital plan was updated to include the Fort Smith to Muskogee transmission line, a $250 million project planned for service in phases from 2027 to 2029[14, 23] - Total capital expenditures are projected to be $6.5 billion from 2025 to 2029[21] Shareholder Returns - The company anticipates a compelling total shareholder return proposition, combining consolidated annual and long-term forecasted earnings per share growth of 5-7% with an expected stable and growing dividend[12]

Core Viewpoint - OGE Energy reported quarterly earnings of $1.14 per share, missing the Zacks Consensus Estimate of $1.16 per share, but showing an increase from $1.09 per share a year ago, indicating a slight earnings surprise of -1.72% [1] Financial Performance - The company posted revenues of $1.05 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 17.24%, compared to revenues of $965.4 million in the same quarter last year [2] - Over the last four quarters, OGE Energy has exceeded consensus revenue estimates three times [2] Stock Performance - OGE Energy shares have increased approximately 10% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $737.55 million, and for the current fiscal year, it is $2.28 on revenues of $3.12 billion [7] - The trend of estimate revisions for OGE Energy was mixed prior to the earnings release, which may change following the report [6] Industry Context - The Utility - Electric Power industry, to which OGE Energy belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - OGE Energy Corp. is a prominent energy provider in Oklahoma City, serving approximately 879,000 customers with a diverse energy generation portfolio including coal, natural gas, wind, and solar [1] Stock Performance and Analyst Views - The consensus price target for OGE Energy's stock is stable at $49.8, although Credit Suisse has set a lower target of $42, indicating a conservative outlook [2] - The company's strong market presence and diversified energy portfolio contribute to the stability of its stock price target [2] Demand and Growth Projections - There is an increase in electricity demand in Oklahoma driven by data center growth and strong regional economic activity, supporting stable revenue and earnings growth [3] - OGE Energy targets an annual EPS growth of 5-7% and a total return of 9-11% [3] Financial Performance - The latest earnings report shows a modest increase in earnings per diluted share from $0.51 in 2024 to $0.53 in 2025, indicating steady financial health [4] - A quarterly earnings and business update conference call is scheduled for September 29, 2025, which will provide insights into the company's financial results for Q3 2025 [4]

Earnings Performance - OGE Energy Corp. reported earnings of $1.14 per diluted share for Q3 2025, up from $1.09 per diluted share in Q3 2024, reflecting a 4.6% increase[2] - OG&E contributed net income of $242.9 million, or $1.20 per diluted share, in Q3 2025, compared to $225.0 million, or $1.12 per diluted share, in the same period of 2024, marking a 7.6% increase in net income[3] - The company reported a net income of $231.3 million for Q3 2025, compared to $218.7 million in Q3 2024, which is a 5.9% increase[4] - OGE Energy's operating income for Q3 2025 was $341.3 million, up from $313.2 million in Q3 2024, indicating a growth of 9.0%[11] Revenue Growth - Total operating revenues for Q3 2025 were $1,045.0 million, an increase of 8.3% from $965.4 million in Q3 2024[11] - System sales revenues for the nine months ended September 30, 2025, were $2,312.6 million, up 11.2% from $2,079.2 million in the same period of 2024[14] - Commercial operating revenues grew to $319.1 million in Q3 2025, a 10.4% increase from $288.8 million in Q3 2024[14] - Integrated market revenues increased to $23.6 million in Q3 2025, compared to $19.2 million in Q3 2024[14] - Public authorities and street light revenues were $87.7 million in Q3 2025, slightly up from $86.8 million in Q3 2024[14] Expenses and Costs - Fuel, purchased power, and direct transmission expenses rose to $388.5 million in Q3 2025, compared to $350.1 million in Q3 2024, reflecting an increase of 11.0%[11] - Interest expense increased to $69.6 million in Q3 2025 from $64.2 million in Q3 2024, representing an increase of 5.3%[11] - Weighted-average cost of natural gas increased to 3.190 cents per kilowatt-hour in Q3 2025, compared to 2.142 cents in Q3 2024[14] - Total fuel and purchased power costs rose to 3.732 cents per kilowatt-hour in Q3 2025, up from 3.448 cents in Q3 2024[14] Customer Metrics - The number of customers remained stable at 910,464, compared to 904,900 in the previous year[14] - MWh sales for residential customers were 3.1 million in Q3 2025, slightly down from 3.2 million in Q3 2024[14] Future Outlook - OGE Energy's 2025 consolidated earnings guidance remains projected to be in the top half of the range of $2.21 to $2.33 per average diluted share[5] - The company is constructing approximately 550 MW of new natural gas turbines to address growing energy needs[3] Losses - Other Operations reported a loss of $11.6 million, or $0.06 per share, in Q3 2025, compared to a loss of $6.3 million, or $0.03 per diluted share, in Q3 2024, indicating a worsening of 84.1% in net loss[4]

Financial Performance - Operating revenues for Q3 2025 were $1,045.0 million, a 8.3% increase from $965.4 million in Q3 2024[15] - Net income for the nine months ended September 30, 2025, was $401.5 million, up 18.2% from $339.6 million in the same period of 2024[20] - Basic earnings per share for Q3 2025 were $1.15, compared to $1.09 in Q3 2024, reflecting a 5.5% increase[15] - Operating income for the nine months ended September 30, 2025, was $661.2 million, a 17.4% increase from $563.1 million in 2024[15] - The company reported a comprehensive income of $401.8 million for the nine months ended September 30, 2025, compared to $343.7 million in 2024, reflecting a 16.9% increase[17] - Net income for the period was $231.3 million, compared to $218.7 million in the previous period, reflecting an increase of 5.9%[27] - Net income for the three months ended September 30, 2025, was $242.9 million, compared to $225.0 million in the same period of 2024, representing a year-over-year increase of 7.6%[39] - OGE Energy reported a net income of $231.3 million for the three months ended September 30, 2025, compared to $218.7 million for the same period in 2024, representing an increase of 7.4%[81] Revenue and Expenses - Fuel, purchased power, and direct transmission expenses increased to $388.5 million in Q3 2025, up 10.3% from $350.1 million in Q3 2024[15] - Operating revenues for the three months ended September 30, 2025, were $1,045.0 million, an increase of 8.3% compared to $965.4 million in the same period of 2024[28] - OGE Energy's total compensation expense for the nine months ended September 30, 2025, was $10.1 million, up from $8.6 million in the same period of 2024, indicating increased employee compensation costs[75] - The company reported a total of $2,489.2 million in revenues from contracts with customers for the nine months ended September 30, 2025, compared to $2,171.9 million for the same period in 2024, marking a 14.6% increase[67] Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended September 30, 2025, were $752.3 million, compared to $683.2 million in 2024, representing a 10.1% increase[20] - Capital expenditures for the nine months ended September 30, 2025, were $752.7 million, a decrease from $794.3 million in 2024[20] - Capital expenditures for the three months ended September 30, 2025, were $229.5 million, compared to $244.1 million in the same period of 2024, indicating a decrease of 6.0%[100] Assets and Liabilities - Total assets increased to $14,257.4 million as of September 30, 2025, up from $13,716.0 million on December 31, 2024, representing a growth of 3.9%[22] - Current assets rose to $987.7 million, compared to $895.1 million in the previous period, marking an increase of 10.3%[22] - Total liabilities increased to $9,460.3 million from $9,075.1 million, indicating a rise of 4.2%[25] - Long-term debt rose to $5,368.2 million, compared to $5,020.9 million, an increase of 6.9%[25] - Total stockholders' equity increased to $4,797.1 million from $4,640.9 million, a growth of 3.4%[25] Regulatory and Legal Matters - In May 2025, Oklahoma's SB 998 was passed, allowing OG&E to recover costs for new natural gas generation capacity, enhancing regulatory support for infrastructure investments[61] - Arkansas's Act 373, signed in March 2025, enables OG&E to recover costs for strategic investments in electric generating and transmission facilities, subject to regulatory approval[62] - OG&E filed a general rate review in December 2023, resulting in an annual revenue requirement increase of $126.7 million, with interim rates implemented on July 1, 2024[111] - The Oklahoma Supreme Court ruled in favor of OG&E in three out of five cases related to the Oklahoma Retail Electric Supplier Certified Territory Act[124] Shareholder Information - The company declared dividends of $0.42125 per share, totaling approximately $86.8 million for the period[27] - The company declared dividends of $250.0 million on common stock during the third quarter of 2025, maintaining a consistent dividend policy[39] - OGE Energy issued 234,476 shares of new common stock during the nine months ended September 30, 2025, to satisfy payouts of earned performance units and restricted stock unit grants[76] - OGE Energy issued 64,796 new shares under its Automatic Dividend Reinvestment and Stock Purchase Plan, raising $2.9 million during the three months ended September 30, 2025[79] Pension and Employee Benefits - OGE Energy's pension plan net periodic benefit cost for the three months ended September 30, 2025, was $2.8 million, slightly up from $2.7 million in the same period of 2024[93] - OGE Energy made contributions to its Pension Plan totaling $13.5 million related to OG&E employees during the nine months ended September 30, 2025[98] - The total net periodic benefit cost for OGE Energy's Pension Plan for the three months ended September 30, 2025, was $2.7 million, consistent with the same period in 2024[94] Future Outlook and Projects - The 2025 Integrated Resource Plan (IRP) identified capacity needs of 1,647 MWs by 2030 for summer and 1,017 MWs for winter[108] - OG&E is pursuing regulatory approvals for nearly 1,000 MWs of generation capacity as part of its 2024 request for proposal process[108] - The Muskogee to Fort Smith Transmission Project is estimated to cost approximately $250 million, with construction expected to begin in stages starting in 2027[110]

Core Viewpoint - Investors in the Utility - Electric Power sector should consider Iberdrola S.A. (IBDRY) and OGE Energy (OGE) for potential value opportunities, with IBDRY currently showing a stronger investment outlook [1] Valuation Metrics - Iberdrola S.A. has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to OGE Energy, which has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for IBDRY is 17.93, while OGE's forward P/E is 20.39, suggesting IBDRY may be undervalued relative to OGE [5] - IBDRY's PEG ratio is 2.45, compared to OGE's PEG ratio of 3.23, indicating IBDRY has a better balance between price and expected earnings growth [5] - The P/B ratio for IBDRY is 1.91, while OGE's P/B ratio is 2.02, further supporting the notion that IBDRY is a more attractive value option [6] - Based on these valuation metrics, IBDRY has earned a Value grade of B, while OGE has a Value grade of C [6] Investment Outlook - IBDRY is positioned as the superior value option due to its solid earnings outlook and favorable valuation figures compared to OGE [7]

Core Viewpoint - OGE Energy Corp. is recognized as one of the best utility stocks for dividends, with a focus on expansion and positive market outlooks from analysts [1][3]. Company Overview - OGE Energy Corp. 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]. Analyst Ratings and Price Target - Jefferies raised the price target for OGE Energy from $52 to $55 while maintaining a 'Buy' rating, anticipating a positive "super cycle" in the utilities sector with increased capital expenditures and reduced cost of capital [3]. Expansion Plans - The company aims to add around 550 megawatts of capacity to meet growing customer demand, including new natural gas combustion turbines at Tinker and Horseshoe Lake Units 11 and 12, expected to be operational within the next year [4]. Dividend Information - OGE Energy declared a quarterly dividend of $0.425 per share, resulting in an annual dividend yield of 3.66% [4].

Industry Overview - The utility sector has outperformed the broader market, gaining over 18% since the beginning of 2025, following a 19% rally last year, resulting in nearly $500 billion in value increase over two years [2] - The Energy Information Administration projects U.S. power demand to grow to 4,191 billion kilowatt-hours in 2025 and 4,305 billion kWh in 2026, up from a record 4,097 billion kWh in 2024 [1] Capital Investments - The utility sector is expected to invest $1.1 trillion in capital expenditures through 2029 to meet the increasing demand driven by new data centers and rising energy needs [3] Dividend Stocks - The article lists the best utility dividend stocks, focusing on those with an annual dividend yield of at least 3% as of October 22, 2025, and those with significant hedge fund interest [6] Company Highlights - **Brookfield Renewable Corporation (NYSE:BEPC)**: - Dividend yield of 3.81% as of October 22, 2025, with a diversified portfolio in renewable energy [8] - Forecasts over 10% annual FFO per share growth through 2030 and aims to increase cash distributions by 5% to 9% annually [11] - **Dominion Energy, Inc. (NYSE:D)**: - Dividend yield of 4.38% as of October 22, 2025, providing regulated electricity to 3.6 million customers [12] - Plans to invest over $50 billion through 2029 to support expanding power demand, with an expected EPS growth of 5% to 7% annually [13] - Coastal Virginia Offshore Wind project is on track to deliver first power in early 2026 [14] - **OGE Energy Corp. (NYSE:OGE)**: - Dividend yield of 3.66% as of October 22, 2025, with a focus on expanding capacity by approximately 550 MW [16] - Recently received a price target increase from Jefferies, reflecting positive expectations for the upcoming quarter [17]

Core Viewpoint - The article compares Exelon (EXC) and OGE Energy (OGE) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Exelon has a Zacks Rank of 2 (Buy), while OGE Energy has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, indicating that EXC's earnings outlook is improving more significantly than OGE's [3] Group 2: Valuation Metrics - EXC has a forward P/E ratio of 17.36, compared to OGE's forward P/E of 19.89 [5] - The PEG ratio for EXC is 2.74, while OGE's PEG ratio is 3.15, suggesting EXC may be undervalued relative to its expected earnings growth [5] - EXC's P/B ratio is 1.71, whereas OGE's P/B ratio is 1.97, further indicating EXC's relative valuation advantage [6] Group 3: Value Grades - EXC has a Value grade of B, while OGE has a Value grade of C, highlighting EXC's stronger position in terms of value metrics [6]