Financial Performance - The company increased its fiscal year 2025 indicated annual dividend by 8.1% to $3.48 per diluted share[3] - Year-to-date diluted EPS reached $5.26[6] - The company raised its fiscal year 2025 EPS guidance range from $7.05-$7.25 to $7.20-$7.30[6] - Q2 2025 net income was $486 million, compared to $432 million in Q2 2024[8] - Capital expenditures year-to-date totaled $1.7 billion, with 85% allocated to safety and reliability spending[6] Financing and Liquidity - The company issued $650 million in 30-year senior notes at a 5.00% interest rate[6] - The company settled $380 million of equity forwards[6] - Available liquidity stood at approximately $5.3 billion[6] - Equity capitalization was at 61% as of March 31, 2025[6] Regulatory and Rate Activity - Implemented $153.2 million in approved annualized operating income increases as of May 7, 2025[6] - $389.1 million in annualized operating income increases are currently in progress[6] - Mid-Tex Cities filed a Rate Review Mechanism (RRM) requesting an increase of $165.0 million in annual operating income[62] Outlook - The company anticipates total net income between $1.15 billion and $1.17 billion for fiscal year 2025[43] - Capital spending is projected to be approximately $3.7 billion for fiscal year 2025[43] - The effective tax rate is expected to be between 18% and 20% for fiscal year 2025[45]

Financial Data and Key Metrics Changes - Consolidated earnings for the first quarter were reported at $0.31 per diluted share, an increase from $0.09 per share in the same period of 2024 [17] - The electric company achieved net income of $71 million or $0.35 per diluted share, compared to $25 million or $0.12 per share in the same period of 2024 [17] - The holding company reported a loss of $8 million or $0.04 per diluted share, compared to a loss of $7 million or $0.03 per share in the same period of 2024 [17] - The company affirmed its 2025 earnings per share guidance of $2.27 within a range of $2.21 to $2.33 per share [17][25] Business Line Data and Key Metrics Changes - Customer growth was at 1% year-over-year, with residential and commercial sectors leading the demand growth of 8% [7][18] - Residential load growth was strong at 3%, while commercial load growth was even higher at 28% [19] - Industrial and oilfield classes experienced some softness due to planned and unplanned outages [19] Market Data and Key Metrics Changes - The company reported an average reliability of 99.975% despite facing extreme weather conditions [9] - The rates for the company are among the lowest in the nation, with the lowest rates in both Oklahoma and Arkansas [10] Company Strategy and Development Direction - The company is focused on delivering safe, reliable, and affordable electric service to over 900,000 customers [6] - Future growth is anticipated from diverse industries, including defense, tribal development, and hospitality, particularly with Oklahoma City hosting events for the 2028 Olympics [8] - The company plans to request a rate review midyear in Oklahoma and a general rate review in Arkansas towards the end of the year [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and operational excellence, which supports future growth [14] - The company is proactive in managing supply chain risks and has secured key components through 2026 [13] - Management acknowledged the uncertainty in the macroeconomic environment but remains committed to delivering on stakeholder expectations [13] Other Important Information - The company completed a planned external financing of $350 million, contributing to low refinancing risk [21] - The balance sheet is considered one of the strongest in the industry, with a forecasted FFO to debt ratio of approximately 17% [22] Q&A Session Summary Question: Are there any disruptive or inflationary impacts on the current CapEx plan? - Management feels confident about the current CapEx plan and expects little to no disruption in the coming years [30] Question: What is the outlook for industrial load growth? - Management indicated that the lower growth in the industrial segment is due to transitory events like outages, with no external factors impacting that class [32] Question: Are there discussions around utility regulatory improvements in Oklahoma? - Management confirmed ongoing discussions about pursuing formula rates but indicated that significant changes are not expected this year [36] Question: How would the generation rider and PISA recovery impact the current plan? - Management stated that the generation rider would provide cash flow during the construction phase, enhancing credit and facilitating financing [44] Question: Is there any impact from the Oklahoma Supreme Court ruling on service extensions? - Management confirmed that the ruling does not affect the ability to serve large load customers [52] Question: How is the tone in customer exchanges regarding data center electricity demand? - Management reported ongoing discussions with several data center companies, indicating strong demand [59] Question: What is the company's strategy regarding Moody's negative outlook? - Management expressed confidence in maintaining a strong balance sheet and believes that upcoming regulatory events could positively influence Moody's assessment [62]