Core Points - OGE Energy Corp. will hold its quarterly earnings and business update conference call on April 30, 2025, at 9 a.m. Eastern Time [1] - The conference call will be accessible via webcast on OGE Energy's official website [1] - OGE Energy Corp. is the parent company of OG&E, which serves approximately 907,000 customers in Oklahoma and western Arkansas [1]

Core Viewpoint - OGE Energy Corp. presents a strong investment opportunity in the Zacks Utility Electric Power industry due to rising earnings estimates, strategic investments, effective debt management, and a solid dividend history [1] OGE's Growth Projections - The Zacks Consensus Estimate for OGE Energy's 2025 earnings per share (EPS) has increased by 0.4% to $2.27 per share over the past 60 days [2] - The Zacks Consensus Estimate for OGE's 2025 revenues is projected at $3.01 billion, reflecting a growth of 0.8% from the 2024 reported figure [2] - The company's long-term earnings growth rate is estimated at 6.1% over the next three to five years [2] Debt Position of OGE - OGE's total debt to capital ratio stands at 54.34%, which is better than the industry's average of 60.82% [3] - The times interest earned (TIE) ratio for OGE at the end of Q4 2024 was 2.9, indicating the company can comfortably meet its interest payment obligations [3] Dividend History of OGE - OGE Energy has consistently increased shareholder value through dividends, currently paying a quarterly dividend of 42.125 cents per share, leading to an annualized dividend of $1.685 [4] - The current dividend yield for OGE is 3.8%, significantly higher than the Zacks S&P 500 Composite's average of 1.27% [4] OGE's Systematic Investments - OGE Energy plans to invest $6.25 billion in infrastructure from 2025 to 2029 to enhance the safety, resiliency, and reliability of its distribution and transmission grids, as well as its generation fleet [5] OGE Stock Price Performance - Over the past three months, OGE shares have increased by 7.4%, outperforming the industry's growth of 2.8% [6]

Company Overview - OGE Energy shares have increased by approximately 2.7% over the past month, outperforming the S&P 500 [1] - The consensus estimate for OGE Energy has shifted downward by 30.95% in the past month [2] Performance Metrics - OGE Energy has an average Growth Score of C, a Momentum Score of D, and a Value Score of C, placing it in the middle 20% for the value investment strategy [3] - The overall aggregate VGM Score for OGE Energy is D, indicating a need for attention across multiple investment strategies [3] Outlook - The estimates for OGE Energy have been trending downward, suggesting a negative shift in expectations [4] - Despite the downward revisions, OGE Energy holds a Zacks Rank of 2 (Buy), indicating an expectation of above-average returns in the coming months [4] Industry Comparison - OGE Energy is part of the Zacks Utility - Electric Power industry, where PG&E has gained 9.1% over the past month [5] - PG&E reported revenues of $6.63 billion for the last quarter, reflecting a year-over-year decline of 5.8% [5] - PG&E's expected earnings for the current quarter are $0.40 per share, representing a year-over-year increase of 8.1% [6]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: OGE Energy - OGE Energy currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3]. - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4]. Performance Metrics - OGE shares have increased by 2.39% over the past week, outperforming the Zacks Utility - Electric Power industry, which rose by 1.06% [6]. - Over the last month, OGE's stock price changed by 3.62%, compared to the industry's 1.07% [6]. - In the past quarter, OGE shares rose by 4.78%, and over the last year, they gained 29.14%, while the S&P 500 saw declines of -5.43% and gains of 13.83%, respectively [7]. Trading Volume - OGE's average 20-day trading volume is 1,129,124 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, three earnings estimates for OGE have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $2.26 to $2.27 [10]. - For the next fiscal year, one estimate has moved upwards, with no downward revisions noted [10]. Conclusion - Considering the positive performance metrics and earnings outlook, OGE Energy is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12].

Core Viewpoint - OGE Energy Corp. reported strong fourth-quarter 2024 results, with earnings and revenues exceeding expectations, leading to a 2.7% increase in share price to $45.20 on February 21, 2024 [1]. Financial Performance - Fourth-quarter 2024 earnings were 50 cents per share, surpassing the Zacks Consensus Estimate of 48 cents and improving from 24 cents per share in the same quarter last year [1]. - Total revenues for the fourth quarter reached $761 million, a 34.2% increase from $567 million in the prior-year quarter, and also exceeded the Zacks Consensus Estimate of $673 million by 13.1% [3]. - For the full year 2024, earnings per share were $2.19, up from $2.07 in 2023 [2]. Operational Highlights - Total sales for the quarter were 7.7 million megawatt-hours (MWh), an increase from 6.9 million MWh in the prior-year quarter [4]. - The customer count rose by 1.2% to 906,952 [4]. - Operating income for 2024 was $745.3 million, a 14.6% increase from $650.2 million in the previous year [5]. Segment Performance - The net income for the fourth quarter was $101.9 million, up 111.4% from $48.2 million in the prior-year quarter [6]. - The OG&E segment's net income was $110.4 million, reflecting a 127.2% increase from $48.6 million in the year-ago period [6]. - The Other Operations unit reported a net loss of $8.5 million, widening from a loss of $0.4 million in the prior-year quarter due to higher interest expenses [7]. Financial Position - As of December 31, 2024, cash and cash equivalents were $0.6 million, up from $0.2 million a year earlier [8]. - Long-term debt increased to $5.02 billion from $4.34 billion as of December 31, 2023 [8]. - Net cash flow from operating activities was $0.81 billion in 2024, down from $1.23 billion at the end of 2023 [8]. Future Guidance - OGE Energy provided guidance for 2025, expecting earnings per share in the range of $2.21 to $2.33, with the Zacks Consensus Estimate at $2.27 per share [9]. Market Position - OGE currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook in the market [10].

Financial Data and Key Metrics Changes - Consolidated net income for 2024 was $442 million or $2.19 per diluted share, compared to $417 million or $2.07 per share in 2023, reflecting a year-over-year increase [23] - The electric company achieved net income of $470 million or $2.33 per share, up from $426 million or $2.12 per share in 2023, driven by capital investment recovery [25] - The holding company reported a loss of $28 million or $0.14 per diluted share in 2024, compared to a loss of $10 million or $0.05 in 2023, primarily due to higher interest expenses [25] Business Line Data and Key Metrics Changes - The electric company saw a weather-normalized load growth of 7.6%, the largest annual growth in nearly 25 years, with commercial load leading at 21.4% [27] - Residential load grew by 2.4% in 2024, reinforcing overall system growth [28] - The company expects continued load growth into 2025, with a forecast of 8.5% weather-normalized growth by year-end [33] Market Data and Key Metrics Changes - Oklahoma City and Fort Smith's unemployment rates were below the national average, with Oklahoma City at 2.8%, contributing to a 1.2% increase in customer growth [14] - The company experienced exceptional load growth across various industries, including multi-unit housing, defense, and manufacturing [15] Company Strategy and Development Direction - The company is focused on reliability, growth, and affordability, with a commitment to maintaining low rates while investing in grid improvements [11] - A five-year capital plan has been rolled forward to 2029, increasing by $250 million, indicating a strong commitment to infrastructure investment [35] - The company plans to file for recovery of generation needs and a general rate review in Oklahoma by midyear, and a similar filing in Arkansas by year-end [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial plan, projecting a 2025 earnings guidance midpoint that is 7% higher than the previous year [32] - The company anticipates continued strong load growth and operational execution, with a long-term annual EPS growth rate of 5% to 7% [37] - Management highlighted the importance of a constructive regulatory environment in supporting growth and achieving results [12] Other Important Information - The company has nearly 450 megawatts under construction at Horseshoe Lake and an additional 100 megawatts for Tinker Air Force Base, expected to come online in 2025 [9] - The company is leveraging automation and AI to enhance customer experience and operational efficiency [9] Q&A Session Summary Question: Data center opportunities and megawatt needs - Management indicated potential opportunities in the 250 to 500 megawatt range across several discussions, but specifics on the Stillwater opportunity could not be disclosed [45][46] Question: Dividend growth in relation to EPS growth - Management reiterated a consistent approach to dividend growth, aiming for a payout ratio of 65% to 70% [49] Question: 2025 expectations and load growth sensitivity - Management was hesitant to provide specific EPS sensitivity to load growth but indicated that load growth would help mitigate regulatory lag [58][59] Question: Capital requirements for new generation solutions - Management expressed confidence in their ability to deliver generation solutions for new customers, with ongoing visibility into available resources [72] Question: Updates on RFP and potential new data center contracts - Management plans to file results of the generation RFP by mid-year and will communicate any new data center contracts as they arise [78][79] Question: Long-term load growth expectations - Management confirmed expectations for long-term load growth to remain at least 2% [120]

Q4 2024 Earnings & Business Update Conference Call February 19, 2025 Safe Harbor Some the matters 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," "forecast," "intend," "objective," "plan," "possible," "potential," "project," "target" and similar expressions. Actual results may vary materially f ...

Core Viewpoint - OGE Energy Corp. reported a strong financial performance for 2024, with increased earnings per share and net income driven by operational execution and customer growth [1][4]. Financial Performance - OGE Energy's net income for 2024 was $441.5 million, or $2.19 per diluted share, compared to $416.8 million, or $2.07 per diluted share in 2023, reflecting a year-over-year increase [4][10]. - OG&E, a subsidiary of OGE Energy, contributed net income of $469.9 million, or $2.33 per diluted share in 2024, up from $426.4 million, or $2.12 per diluted share in 2023 [3][10]. - For the fourth quarter of 2024, OGE Energy reported net income of $101.9 million, or $0.50 per diluted share, compared to $48.2 million, or $0.24 per diluted share in the same period of 2023 [5]. Revenue and Expenses - Operating revenues for OGE Energy in 2024 were $2,985.3 million, an increase from $2,674.3 million in 2023 [15][16]. - The increase in net income was primarily due to exceptional load growth and higher operating revenues, partially offset by increased depreciation, interest expenses, and higher income taxes [3][4]. Future Outlook - OGE Energy's consolidated earnings guidance for 2025 is set at a midpoint of $2.27 per average diluted share, with expectations for annual growth in consolidated earnings per share between 5% and 7% [8][9]. - The company forecasts earnings for OG&E at $2.43 per average diluted share for 2025, while anticipating a loss of $0.16 per average diluted share for the holding company [8]. Dividend Declaration - The Board of Directors approved a second quarter dividend of $0.42125 per common share, to be paid on April 25, 2025, to shareholders of record on April 7, 2025 [11].

Financial Performance - OGE Energy's net income for 2024 was $441.5 million, or $2.19 per diluted share, compared to $416.8 million, or $2.07 per diluted share in 2023, reflecting an increase of $24.7 million, or $0.12 per diluted share[178]. - OG&E experienced an increase in net income of $43.5 million, or $0.21 per diluted share, primarily due to higher operating revenues driven by load growth and recovery of capital investments[180]. - OGE Energy's net income for 2024 was $441.5 million, an increase of $24.7 million, or 5.9% compared to $416.8 million in 2023[182]. - Operating revenues for OG&E increased by $311 million, or 11.6%, from $2,674.3 million in 2023 to $2,985.3 million in 2024[187]. - OG&E's net income increased by $43.5 million, or 10.2%, from $426.4 million in 2023 to $469.9 million in 2024[186]. Sales and Customer Growth - In 2024, OG&E's system sales reached 32.0 million MWh, representing a 7.7% increase compared to 29.7 million MWh in 2023[32]. - The number of electric customers served by OG&E increased to 906,952 in 2024, up from 896,102 in 2023, reflecting a growth of 1.0%[36]. - In 2024, residential electric operating revenues were $1,148.5 million, an increase from $1,040.4 million in 2023[36]. Infrastructure and Investment - OG&E's total operating revenues for 2024 were $2,985.3 million, up from $2,674.3 million in 2023, marking a year-over-year increase of 11.6%[36]. - The company plans to modernize existing infrastructure and invest in capital improvements, with potential federal grants available under the Infrastructure Investment and Jobs Act[102]. - OGE Energy expects total capital investments to reach $6,250 million from 2025 to 2029, with annual investments increasing from $1,150 million in 2025 to $1,350 million in 2029[207]. - Total generating capability for OG&E's electric generation facilities was 6,921 MWs as of December 31, 2024, with a total renewable generating capability of 481 MWs[159][163]. Regulatory Environment - OG&E's retail electric tariffs are regulated, with 87% of electric revenue subject to the jurisdiction of the OCC in Oklahoma[37]. - Regulatory risks include the potential inability to recover costs from customers, which could adversely impact profitability[87]. - Changes in the regulatory environment could impact the company's ability to recover costs and affect its financial position[89]. - The company operates in a vertically integrated market, with most revenue derived from retail electricity sales subject to state regulatory approval[90]. Energy Mix and Sustainability - OG&E's generation mix for 2024 consists of 74% natural gas, 18% coal, and 8% renewable energy sources[51]. - OG&E's renewable energy initiatives include ownership of wind farms totaling 449 MW and solar sites with a combined capacity of 32 MW[60][62]. - The company is committed to a balanced energy mix and advancing innovative technologies to maintain competitive operations[33]. Risk Management - The Board of Directors oversees major risk exposures, including cybersecurity risks, with regular updates from the Vice President of Technology, Data, and Security[154]. - The company faces human resource risks, with 26.2% of current employees eligible for retirement within the next three years, potentially impacting operational management[137]. - Cybersecurity risks and reliance on technology processes could materially impact financial performance if significant breaches occur[128]. - The company is subject to extensive environmental regulations that may increase compliance costs and affect financial performance[92]. Future Projections - OGE Energy projects earnings of approximately $447 million to $471 million, or $2.21 to $2.33 per average diluted share for 2025, with a midpoint of $459 million, or $2.27 per share[181]. - Total retail load growth is projected to be approximately 7.5% to 9.5% for 2025[183]. - Operating expenses are estimated to be between $1.205 billion and $1.217 billion for 2025, with operation and maintenance expenses comprising approximately 44% of the total[183]. Debt and Liquidity - OGE Energy's outstanding indebtedness and liabilities amount to $9.1 billion, impacting its ability to pay dividends[120]. - OGE Energy plans to issue $300 million to $350 million in long-term debt in 2025 to support general operating needs[222]. - OGE Energy has $1.1 billion in unsecured five-year revolving credit facilities, with $690.3 million in net available liquidity as of December 31, 2024[217]. Employee Engagement and Culture - The company has been recognized as a Top Workplace in the Energy and Utilities sector in 2024 based on employee engagement surveys[73]. - The company emphasizes the importance of diversity and inclusion, with ten employee-led Member Resource Groups (MRGs) supporting various communities[82]. - The company is focused on fostering a culture of inclusion to ensure its workforce reflects the communities it serves, enhancing business decisions[80].

Financial Performance - OGE Energy Corp. reported earnings of $2.19 per diluted share in 2024, an increase of 5.8% from $2.07 per diluted share in 2023[1]. - OG&E contributed net income of $469.9 million, or $2.33 per diluted share, in 2024, compared to $426.4 million, or $2.12 per diluted share, in 2023, reflecting a 10.4% increase in earnings[3]. - OGE Energy's net income for 2024 was $441.5 million, compared to $416.8 million in 2023, marking a 5.9% increase[4]. - The fourth quarter of 2024 saw net income of $101.9 million, or $0.50 per diluted share, compared to $48.2 million, or $0.24 per diluted share, in Q4 2023, indicating a significant increase[5]. - The total operating revenues for the year ended December 31, 2024, were $2,985.3 million, a 11.6% increase from $2,674.3 million in 2023[20]. Revenue and Sales Growth - The company's consolidated operating revenues for 2024 were $2,985.3 million, up from $2,674.3 million in 2023, representing an increase of 11.6%[16]. - Total operating revenues for Q4 2024 reached $760.5 million, a 34.1% increase from $566.7 million in Q4 2023[20]. - System sales revenues increased to $652.2 million in Q4 2024, up 28.4% from $507.6 million in Q4 2023[20]. - Integrated market revenues increased to $23.2 million in Q4 2024, up from $13.9 million in Q4 2023, a growth of 67.6%[20]. Customer Growth and Demand - The company expects to maintain strong customer growth and demand for electricity, supported by the completion of two new natural-gas power generation units[2]. - The company has approximately 907,000 customers in Oklahoma and western Arkansas, indicating a stable customer base for future growth[12]. - The number of customers grew to 906,952, an increase from 896,102 in the previous year[20]. Cost and Pricing Factors - The weighted-average cost of natural gas per kilowatt-hour rose to 3.770 cents in Q4 2024 from 3.216 cents in Q4 2023[20]. - Total fuel and purchased power costs increased to 3.751 cents per kilowatt-hour in Q4 2024, compared to 2.667 cents in Q4 2023[20]. - The company reported a provision for rate refund of $40.5 million in Q4 2024, compared to no provision in Q4 2023[20]. Future Guidance - The midpoint of OGE Energy's consolidated earnings guidance for 2025 is $2.27 per average diluted share, with a range of $2.21 to $2.33 per share, projecting annual growth of 5% to 7%[8]. Operational Challenges - Other operations reported a loss of $28.4 million, or $0.14 per diluted share, in 2024, compared to a loss of $9.6 million, or $0.05 per diluted share, in 2023, indicating increased financial pressure in this segment[4]. - The company experienced a decrease in heating degree days, with actual heating degree days at 979 compared to 1,166 in the previous year[20].