Core Viewpoint - OGE Energy has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with short-term stock price movements [3][5]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock transactions that affect prices [3]. Company Performance Indicators - The upgrade reflects an improvement in OGE Energy's underlying business, suggesting that investors may respond positively by driving the stock price higher [4]. - For the fiscal year ending December 2025, OGE Energy is expected to earn $2.28 per share, with a 0.3% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade to Zacks Rank 2 places OGE Energy in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Key Takeaways OGE's 2025 EPS estimate rose to $2.28, with revenue growth projected at 4.6% from the 2024 levels.OGE plans $6.25B in investments through 2029 to strengthen grid reliability and generation assets.OGE owns multiple wind and solar sites and continues expanding renewable resources with zero emissions.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 st ...

Core Viewpoint - The company aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] Group 1 - The service offers subscribers access to exclusive investment ideas before they are released to the general public, with many ideas not being released at all [1] - Subscribers receive in-depth research that is not available to non-subscribers, enhancing their investment decision-making [1] - A two-week free trial is currently being offered to attract new subscribers to the service [1]

Core Viewpoint - OGE Energy Corp. has appointed Lyle G. Ganske to its board of directors, enhancing its corporate governance capabilities and strategic growth potential [1][2]. Company Summary - Lyle G. Ganske brings over 40 years of experience in corporate governance, fiduciary duty, and corporate transactions, which will be beneficial for OGE Energy's growth [2]. - Ganske currently serves as Of Counsel at Jones Day and has held leadership roles, including head of the firm's Global M&A Practice, indicating a strong background in corporate law [2]. - His expertise spans various industries, including energy, manufacturing, retail, telecom, utilities, and process industries, which aligns with OGE Energy's operational focus [2]. Industry Summary - Ganske is recognized for his contributions to corporate governance, frequently speaking and coauthoring articles on the subject, which may enhance OGE Energy's reputation in governance practices [3]. - He serves on the advisory board of two private equity funds and on the boards of multiple portfolio companies, indicating a strong network and influence in the corporate governance landscape [3].

Core Viewpoint - OGE Energy Corp. is conducting its 2025 Second Quarter Earnings and Business Update Call, featuring key executives discussing financial results and future outlook [1][3]. Group 1: Company Participants - The call includes participation from Charles B. Walworth (CFO & Treasurer), Jason Bailey (Director of Investor Relations), and Robert Sean Trauschke (Chairman, President & CEO) [1][3]. - The conference call is being recorded and will be available for later access on the company's website [1][4]. Group 2: Conference Call Structure - The structure of the call involves opening remarks from the CEO, followed by a financial results explanation from the CFO, and a Q&A session [3]. - The call is being webcast, allowing participants to follow along in real-time [4]. Group 3: Forward-Looking Statements - A safe harbor statement regarding forward-looking statements is presented, indicating that the company cannot guarantee future financial results but will provide its best estimates [5].

Financial Data and Key Metrics Changes - For the second quarter, consolidated net income was $108 million or $0.53 per diluted share compared to $102 million or $0.51 per share in the same period of 2024, indicating a year-over-year increase in earnings per share [15][16] - The electric company achieved net income of $108 million or $0.53 per diluted share, slightly down from $109 million or $0.54 per share in the same period of 2024, primarily due to milder weather and higher interest and depreciation expenses [15][16] - The holding company reported a small loss of less than $1 million, flat on a per diluted share basis compared to a loss of $7 million or $0.03 per share in the same period of 2024 [16] Business Line Data and Key Metrics Changes - Year-over-year customer growth continued at a healthy pace near 1% in the second quarter, with weather-normalized load growing 6.5% year to date compared to the same period in 2024 [17] - The two largest customer classes, residential and commercial, showed year-to-date growth of 12.5% respectively, indicating strong demand [17] - Industrial and oilfield load showed some softness this year, attributed to unplanned customer outages, but future growth in these sectors is anticipated [18] Market Data and Key Metrics Changes - The local economy remains strong, with Oklahoma and Arkansas unemployment rates continuing to outpace the national average, and Oklahoma City maintaining an unemployment rate below 4% for the 46th consecutive month [13] - The Oklahoma Department of Commerce announced the 2025 Oklahoma Innovation Expansion Program, which includes 83 companies in the service area, supporting new capital investment and job creation [11] Company Strategy and Development Direction - The company is focused on adding approximately 550 megawatts of capacity, with new natural gas combustion turbines under construction and expected to be operational within the next year [9] - The company plans to continue exploring options to meet growing generation needs and expects to add generation at a similar pace for the next few years [9][10] - Legislative successes have provided new customer benefits and credit accretive provisions, allowing for CWIP recovery during the construction phase of certain generation capacity projects [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving results in the top half of the earnings guidance range for the year, emphasizing a strong foundation for future growth [6][14] - The company is optimistic about the future, citing ongoing negotiations with data centers and the potential for increased load projections [10][12] - Management highlighted the importance of maintaining a competitive low rate advantage and focusing on cost structure to minimize customer impacts [23][24] Other Important Information - The company received a notice to construct a transmission line from Fort Smith, Arkansas to Muskogee, Oklahoma, which will address reliability and capacity issues in the Fort Smith area [22] - The estimated cost for the transmission line is approximately $240 million, with construction expected to occur in multiple phases from 2027 to 2029 [22] Q&A Session Summary Question: What is driving the weaker industrial sales? - Management noted that industrial customers are more power-intensive and experience cycles for maintenance, which can lead to noticeable fluctuations in sales [29] Question: Excluding the midstream operations one-time legacy benefit, how can the parent drag for 2025 be expected to grow? - Management indicated that the one-time benefit should be largely ignored, and they remain focused on guidance for the year excluding that item [31] Question: Can you provide an update on generation capacity additions? - Management expressed a strong preference to own new assets while securing short-term bridge capacity during construction, with ongoing negotiations for additional agreements [32] Question: Any updates on the Google Stillwater data center site? - Management reported that negotiations are progressing and they are getting closer to achieving objectives that protect existing customers while being value accretive [39] Question: Does the top end of guidance include the one-time midstream tax gain? - Management confirmed that the guidance includes the impact of the one-time benefit mentioned [40] Question: Is the company expected to be long capacity at the end of the decade? - Management does not anticipate being long on capacity, stating that they will continue to add capacity in response to load growth [46]

Financial Data and Key Metrics Changes - Consolidated net income for Q2 2025 was $108 million or $0.53 per diluted share, compared to $102 million or $0.51 per share in Q2 2024 [15] - The electric company achieved net income of $108 million or $0.53 per diluted share, down from $109 million or $0.54 per share in the same period of 2024, primarily due to milder weather and higher interest and depreciation expenses [15][16] - The holding company reported a small loss of less than $1 million, flat on a per diluted share basis, compared to a loss of $7 million or $0.03 per share in Q2 2024 [15] Business Line Data and Key Metrics Changes - Year-over-year customer growth was near 1% in Q2 2025, with weather-normalized load growing 6.5% year-to-date compared to the same period in 2024 [16] - The two largest customer classes, residential and commercial, showed growth rates of 125% respectively, indicating strong performance [16] - Industrial and oilfield load showed some softness, attributed to unplanned customer outages, but future growth is anticipated [18] Market Data and Key Metrics Changes - The local economy remains strong, with Oklahoma City’s unemployment rate below 4% for the 46th consecutive month, and it was noted as the lowest in the nation for April and May [13] - The Oklahoma Department of Commerce announced the 2025 Oklahoma Innovation Expansion Program, which includes 83 companies in the service area, supporting new capital investment and job creation [11] Company Strategy and Development Direction - The company is focused on adding approximately 550 megawatts of capacity, with new natural gas combustion turbines under construction and expected to be operational within the next year [7][8] - The company plans to continue exploring options to meet growing generation needs and expects to add generation at a consistent pace over the next few years [8] - Legislative successes have provided new customer benefits and credit accretive provisions, allowing for CWIP recovery during construction phases of generation capacity projects [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving results in the top half of the earnings guidance range for 2025, emphasizing a strong foundation for future growth [6][14] - The company anticipates continued growth in customer demand and is well-prepared for the upcoming summer season [7][10] - Management highlighted the importance of maintaining a competitive low rate advantage and focusing on cost structure to minimize customer impacts [23][24] Other Important Information - The company received a notice to construct a transmission line from Fort Smith, Arkansas to Muskogee, Oklahoma, which will address reliability and capacity issues in the Fort Smith area [22] - The company is planning to file for an Oklahoma rate review by the end of the year, with Arkansas to follow thereafter [23] Q&A Session Summary Question: What is driving the weaker industrial sales? - Management noted that industrial customers are more power-intensive and experience maintenance cycles, which can lead to noticeable fluctuations in sales [28] Question: Excluding the midstream operations one-time legacy benefit, how can the parent drag for 2025 be expected to grow? - Management indicated that the one-time benefit should be largely ignored, and they remain on track with their guidance for the year excluding that item [30] Question: Can you provide an update on generation capacity additions and ownership versus PPA? - Management expressed a strong preference to own the assets while also securing short-term bridge capacity during construction [31] Question: Any updates on the Google Stillwater data center site? - Negotiations for the data center are progressing, with management getting closer to achieving objectives that protect existing customers [38] Question: Does the top end of guidance include the one-time midstream tax gain? - Management confirmed that the guidance includes the impact of the one-time benefit [39] Question: Is the company expected to be long capacity at the end of the decade? - Management does not anticipate being long on capacity, emphasizing a continuous addition of capacity to meet load growth [44]

Q2 2025 Earnings & Business Update Conference Call July 30, 2025 Safe Harbor Some of 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. ...

Core Insights - OGE Energy Corp. reported earnings of $0.53 per diluted share for Q2 2025, a slight increase from $0.51 in Q2 2024, driven by operational improvements despite milder weather conditions [1][3][4]. Financial Performance - OG&E's net income for Q2 2025 was $107.7 million, down from $109.3 million in Q2 2024, primarily due to milder weather and increased interest and depreciation expenses [3][4]. - Total operating revenues for Q2 2025 reached $741.6 million, compared to $662.6 million in Q2 2024, reflecting a year-over-year increase of approximately 11.9% [8][12]. - The company’s consolidated earnings guidance for 2025 is projected to be between $2.21 and $2.33 per diluted share, with expectations to be in the top half of this range due to strong economic growth in Oklahoma and Arkansas [5]. Operational Developments - OGE Energy is constructing approximately 550 MW of new natural gas combustion turbine generation projects, expected to be operational in 2026, with two additional turbines proposed for completion by the end of 2029 [2]. - The company reported a decrease in operating expenses, with other operation and maintenance costs slightly reduced to $127.1 million in Q2 2025 from $130.4 million in Q2 2024 [8][11]. Market Context - The company’s performance is influenced by seasonal weather patterns, which significantly affect earnings, particularly in the context of energy demand fluctuations [5][9]. - The increase in revenues from contracts with customers was notable, rising to $719.7 million in Q2 2025 from $644.1 million in Q2 2024, indicating a robust demand for services [11][12].

[Earnings Summary and Business Outlook](index=1&type=section&id=Earnings%20Summary%20and%20Business%20Outlook) OGE Energy Corp. reported **Q2 2025 diluted EPS of $0.53**, a slight increase, and reaffirmed its full-year guidance in the top half of the range [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) Consolidated net income increased to **$107.5 million** in Q2 2025, despite a slight decrease in OG&E's net income due to weather and expenses Consolidated Earnings Summary (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $107.5 million | $102.3 million | | Diluted EPS | $0.53 | $0.51 | Segment Net Income / Loss (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Net Income/(Loss) | Q2 2024 Net Income/(Loss) | | :--- | :--- | :--- | | OG&E (Electric Company) | $107.7 million | $109.3 million | | Other Operations | ($0.2 million) | ($7.0 million) | - The decrease in **OG&E's net income** was primarily driven by **milder weather**, **higher interest**, and **depreciation expenses**, partially offset by **increased recovery of capital investments**, higher weather-normalized load, and **lower operation and maintenance costs**[4](index=4&type=chunk) - The company is actively constructing approximately **550 MW of new natural gas generation**, expected to be **operational in 2026**, and has proposed two additional turbines for operation by the end of 2029 to meet growing energy demand[3](index=3&type=chunk) [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) The company reaffirmed its **2025 consolidated earnings guidance** of **$2.21 to $2.33 per diluted share**, now expecting results in the top half of the range - Maintained **2025 consolidated earnings guidance range of $2.21 to $2.33 per average diluted share**[6](index=6&type=chunk) - Expects consolidated earnings to be in the **top half of the guidance range**, driven by strong year-to-date performance and economic growth in Oklahoma and Arkansas[6](index=6&type=chunk) - The guidance is contingent on several assumptions, including **normal weather** for the remainder of the year[6](index=6&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents unaudited condensed financial statements for Q2 2025, including consolidated income, OG&E's income, and detailed operating data [Condensed Consolidated Statements of Income (OGE Energy Corp.)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(OGE%20Energy%20Corp.)) OGE Energy Corp. reported **Q2 2025 consolidated operating revenues of $741.6 million** and net income of **$107.5 million** (**$0.53 diluted EPS**) OGE Energy Corp. Consolidated Income Statement Highlights (Three Months Ended June 30) | Metric (In millions, except EPS) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Revenues | $741.6 | $662.6 | | Operating Income | $186.6 | $175.9 | | Net Income | $107.5 | $102.3 | | Diluted EPS | $0.53 | $0.51 | [Condensed Statements of Income (Oklahoma Gas & Electric Company)](index=4&type=section&id=Condensed%20Statements%20of%20Income%20(Oklahoma%20Gas%20%26%20Electric%20Company)) OG&E reported **Q2 2025 operating revenues of $741.6 million**, but net income slightly decreased to **$107.7 million** due to higher expenses OG&E Income Statement Highlights (Three Months Ended June 30) | Metric (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Revenues | $741.6 | $662.6 | | Operating Income | $187.4 | $176.1 | | Net Income | $107.7 | $109.3 | [Financial and Statistical Data (Oklahoma Gas & Electric Company)](index=5&type=section&id=Financial%20and%20Statistical%20Data%20(Oklahoma%20Gas%20%26%20Electric%20Company)) OG&E's Q2 2025 revenue growth was driven by Commercial and Public authorities, with **MWh sales increasing to 8.1 million** and customer base growing by nearly **7,000** Operating Revenues by Classification (Q2, in millions) | Classification | 2025 | 2024 | | :--- | :--- | :--- | | Residential | $261.0 | $247.2 | | Commercial | $225.9 | $183.9 | | Industrial | $60.2 | $56.8 | | Total Operating Revenues | $741.6 | $662.6 | - **Total MWh sales increased slightly to 8.1 million** in Q2 2025 from **8.0 million** in Q2 2024, with a notable **increase in the Commercial sector** offsetting a **decrease in Residential sales**[16](index=16&type=chunk) Key Operational Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Number of Customers | 909,131 | 902,303 | | Cooling Degree Days (Actual) | 579 | 740 | [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements, subject to risks and uncertainties including economic conditions, regulatory actions, weather, and cybersecurity threats - The company identifies **key risk factors** that could impact future performance, including but not limited to: - General economic conditions and access to capital markets - Ability to obtain timely and sufficient rate relief - Prices and availability of fuel and purchased power - Unusual weather conditions and catastrophic events - Federal or state legislation and regulatory decisions - Environmental laws and regulations - Cybersecurity attacks and other catastrophic events[10](index=10&type=chunk)