OGE Energy (OGE) - 2024 Q4 - Annual Report

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$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$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].