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].

The market expects OGE Energy (OGE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

Investors with an interest in Utility - Electric Power stocks have likely encountered both Dominion Energy (D) and OGE Energy (OGE) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and est ...

OKLAHOMA CITY, Jan. 22, 2025 /PRNewswire/ -- OGE Energy Corp. (NYSE: OGE) will hold its quarterly earnings and business update conference call at 9 a.m. Eastern Time (8 a.m. Central Time), Wednesday, February 19, 2025. This call is being webcast by Notified and can be accessed at OGE Energy's website at www.oge.com. OGE Energy Corp. is the parent company of OG&E, a regulated electric company with approximately 905,000 customers, in Oklahoma and western Arkansas. SOURCE OGE Energy Corp. ...

OGE Energy's (OGE) strategic investments are expected to strengthen its infrastructure, which should further boost its performance. The company also benefits from grid enhancements. Given its growth opportunities, OGE Energy makes for a solid investment option in the utility sector.Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.OGE’s Growth ProjectionsThe Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 0.5% to $2.16 in the ...

Investors interested in Utility - Electric Power stocks are likely familiar with Dominion Energy (D) and OGE Energy (OGE) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revisio ...

Board of Directors declares quarterly dividendOKLAHOMA CITY, Dec. 4, 2024 /PRNewswire/ -- OGE Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric Company, announced today that Charles Walworth is appointed Chief Financial Officer and Treasurer, effective December 4, 2024. Walworth is a 25-year veteran of the company, holding a variety of finance roles during his tenure. Most recently, Walworth served as treasurer. Charles Walworth, Chief Financial Officer and Treasurer, OGE Energy ...