Key Takeaways Entergy Corporation ((ETR) reported second-quarter 2025 earnings of $1.05 per share, which improved 9.4% from the year-ago quarter's figure of 96 cents. The Zacks Consensus Estimate was pegged at 91 cents per share. The year-over-year bottom-line improvement can be attributed to higher operating revenues and operating income. ETR's Q2 Revenues Entergy reported revenues of $3.33 billion, which beat the Zacks Consensus Estimate of $3.22 billion by 3.4%. The top line also inched up 12.7% from the ...

Financial Data and Key Metrics Changes - AEP reported the strongest ever second quarter operating earnings in its 100-year history, with operating earnings of $1.43 per share or $766 million, representing a 14% increase year-over-year from $1.25 per share in 2024 [9][27] - The company is guiding to the upper half of its 2025 operating earnings range of $5.75 to $5.95 per share, reflecting strong year-to-date results [10][39] - AEP reaffirmed its long-term operating earnings growth rate of 6% to 8% [10] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities increased to $0.56 per share, up $0.10 from the previous year, driven by rate changes and increased load from data centers [28] - The transmission and distribution utility segment earned $0.42 per share, up $0.01 from last year, supported by rate changes and retail sales gains [29] - Generation and Marketing produced $0.17 per share, up $0.05 from last year, with favorable energy margins [31] Market Data and Key Metrics Changes - AEP expects to have 24 gigawatts of incremental load by the end of the decade, up from 21 gigawatts, primarily driven by data centers and reshoring [12] - The company has a significant interconnection queue with approximately 190 gigawatts of additional load seeking to connect to its system, which is five times its current system size of 37 gigawatts [12][35] Company Strategy and Development Direction - AEP is executing a $54 billion capital plan and expects to announce a new five-year capital plan of approximately $70 billion, with allocations of 50% to transmission, 40% to generation, and 10% to distribution [11] - The company is focused on aligning its business with regulatory goals and has secured large load tariffs in multiple states to support economic development [14][15] - AEP is exploring innovative power solutions, including small modular reactors (SMRs) and Bloom fuel cells, to meet growing customer demands [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, citing strong regulatory support and a disciplined approach to capital allocation [10][18] - The management team highlighted the importance of safety, service, and reliability while navigating complex operational and regulatory landscapes [18][19] - AEP's leadership emphasized the need for continued collaboration with regulators to support infrastructure investments and customer affordability [20][21] Other Important Information - AEP Texas was granted approval for a significant transmission project, and the company has received positive regulatory outcomes in several states [19][23] - The company has a strong liquidity position with over $5.6 billion supported by $6 billion in credit facilities [36][37] Q&A Session Summary Question: CapEx increase and financing needs - Trevor Mihalik indicated that the company has proactively financed its existing capital plan and does not have near-term equity needs, providing flexibility for future financing [42][44] Question: ROE trajectory and impact of regulatory changes - Trevor Mihalik confirmed that the ROE is expected to increase due to the new regulatory mechanisms in Texas, potentially by 50 to 100 basis points [46][48] Question: Plans for small modular reactors (SMRs) - William J. Fehrman discussed the focus on early site permit work for SMRs, emphasizing strong regulatory support in Virginia and Indiana [52][53] Question: Ongoing impact of NOLC changes - Kate Sturgess noted that the ongoing impact from the NOLC change is expected to be around 3 cents per share annually [56][57] Question: Update on West Virginia case - William J. Fehrman provided an update that the West Virginia case is awaiting an order expected in late August or early September [59] Question: CapEx opportunities and future increases - Trevor Mihalik highlighted the tremendous growth opportunities across AEP's service territory, indicating that further increases in CapEx could be possible [64][66] Question: Data center activity and connection timelines - William J. Fehrman explained that AEP's transmission system is attractive for data centers, with wait times for connections typically ranging from five to seven years [70][71]

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]

Financial Data and Key Metrics Changes - American Electric Power (AEP) reported the strongest second quarter operating earnings in its 100-year history, with operating earnings of $1.43 per share or $766 million, representing a 14% increase year-over-year from $1.25 per share in 2024 [9][27][28] - The company is guiding to the upper half of its 2025 operating earnings range of $5.75 to $5.95 per share, reflecting strong year-to-date results and confidence in future execution [10][40] Business Line Data and Key Metrics Changes - Operating earnings for vertically integrated utilities increased to $0.56 per share, up $0.10 from the previous year, driven by rate changes and increased load from data centers [29] - The transmission and distribution utility segment earned $0.42 per share, up $0.01 from last year, supported by rate changes and retail sales gains [29] - Generation and Marketing produced $0.17 per share, up $0.05 from last year, with favorable energy margins offset by lower distributed generation margins due to the sale of the On-site Partners business [31] Market Data and Key Metrics Changes - AEP is experiencing transformative load growth across its 11-state footprint, with an increase in firm customer commitments to 24 gigawatts of incremental load by the end of the decade, up from 21 gigawatts previously reported [12][34] - The company has a significant interconnection queue of approximately 190 gigawatts of additional load seeking to connect to its system, indicating strong demand for its services [12][35] Company Strategy and Development Direction - AEP is executing a $54 billion capital plan and expects to announce a new five-year capital plan of approximately $70 billion, with allocations of 50% to transmission, 40% to generation, and 10% to distribution [11][37] - The company is focused on aligning its business with regulatory goals and has secured large load tariffs in multiple states to support economic development and infrastructure needs [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, emphasizing a culture of accountability and performance [10][26] - The company is committed to maintaining safety, service, reliability, and constructive regulatory outcomes, with significant progress made in legislative efforts and regulatory approvals [18][21] Other Important Information - AEP Texas was granted an ERCOT Permian Basin 765 kV transmission project, and several system resiliency plans received approval, reflecting collaborative efforts with regulators [19][20] - The company is exploring innovative energy solutions, including small modular reactors (SMRs) and Bloom fuel cells, to meet growing power demands [17][58] Q&A Session Summary Question: CapEx increase and financing needs - Management indicated that they have proactively financed the existing capital plan and do not foresee immediate equity needs, providing flexibility for future financing strategies [45][46][49] Question: ROE trajectory and impact of regulatory changes - Management expects an increase in ROE due to the implementation of the Unified Tracker Mechanism in Texas, which could raise ROEs by 50 to 100 basis points [52] Question: Plans for small modular reactors (SMRs) - The focus is currently on early site permit work in Virginia and Indiana, with strong regulatory support for investments [58][59] Question: Update on West Virginia case - The West Virginia case is awaiting an order expected in late August or early September, with positive engagement from stakeholders [64] Question: Future CapEx opportunities - Management sees continued opportunities for investment driven by significant load growth and economic activity across its service territory [71][72]

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. ...

Financial Performance - Q2 2025 operating earnings per share (EPS) reached $1.43, compared to $1.25 in Q2 2024, representing a 14% increase[22] - Year-to-date (YTD) 2025 operating EPS was $2.98, up from $2.52 in YTD 2024, reflecting an 18% growth[24] - The company is guiding towards the upper half of the 2025 operating earnings guidance range of $5.75-$5.95 per share[20] - Moody's FFO to Debt as of June 30, 2025, was 13.2%[46, 114] Capital Investments and Growth - AEP expects to announce a new 5-year capital plan of approximately $70 billion to meet growing energy needs[18, 20] - The company is executing a $54 billion capital plan and expects approximately 8% rate base growth through the 5-year forecast[11, 18, 51] - Approximately $34 billion, or 63%, of the $54 billion capital forecast is allocated to wires (transmission and distribution)[75, 77] - Approximately $14 billion, or 26%, of the $54 billion capital forecast is allocated to regulated new generation, including renewables[75, 79] Load Growth and Demand - AEP anticipates 24 GW of incremental load growth through 2029, supported by signed customer financial commitments[17, 25, 43, 44] - The company has approximately 190 GW of interconnect requests in various stages of development[17, 25, 44] - Peak demand in Q2 2025 reached 37.6 GW, generating $2.9 billion in revenue, compared to 33.5 GW and $2.7 billion in Q2 2024[42] Financial Strength and Strategy - The company closed a $2.82 billion minority interest transmission transaction, contributing to S&P's outlook upgrade to stable[25, 29, 51] - AEP reaffirms its long-term growth rate of 6%-8% and a FFO/Debt targeted range of 14%-15%[18, 25] - The company's balance sheet strength is reinforced by S&P's favorable outlook revision to stable[49]

Second Quarter 2025 results OG&E contributed net income of $107.7 million, or $0.53 per diluted share, in the second quarter compared to $109.3 million, or $0.54 per diluted share, in the same period 2024. The decrease in net income was primarily due to milder weather compared to last year and higher interest and depreciation expense on a growing asset base, partially offset by increased recovery of capital investments, higher weather-normalized load, and lower operation and maintenance expense. OKLAHOMA CI ...

Core Insights - American Electric Power (AEP) reported significant growth in second-quarter 2025 earnings, with GAAP earnings of $1,226 million or $2.29 per share, compared to $340 million or $0.64 per share in the same quarter of 2024 [1][11] - The company reaffirmed its 2025 operating earnings guidance range of $5.75 to $5.95 per share, now guiding to the upper half of that range, and maintained a long-term operating earnings growth rate of 6% to 8% [2][11] Financial Performance - AEP's operating earnings for Q2 2025 were $766 million or $1.43 per share, an increase from $662 million or $1.25 per share in Q2 2024, reflecting a growth of 15.7% [1][12] - Year-to-date revenue for 2025 reached $10,550.3 million, up from $9,604.9 million in 2024, marking an increase of $945.4 million [10] Customer-Centric Strategy - AEP's focus on customer service has led to enhanced energy systems and infrastructure investments, supported by recent legislative advancements in Oklahoma, Ohio, and Texas [4][5] - The company has secured customer agreements for an additional 24 gigawatts of load by 2030, primarily in high-growth areas, which will increase AEP's peak load to over 60 gigawatts [8][11] Capital Investment and Growth - AEP is executing a $54 billion capital plan and plans to announce a new five-year capital plan of approximately $70 billion to meet growing energy demands [7][11] - The company completed a $2.82 billion investment transaction for a 19.9% equity interest in its Ohio and Indiana Michigan transmission companies, strengthening its financial foundation [6][11] Regulatory and Legislative Support - Key regulatory achievements, such as the acquisition of the Green Country natural gas plant and approval of large load tariffs, have positively impacted AEP's operations and growth prospects [4][11] - AEP's strategy includes deepening collaboration with regulators and policymakers to enhance service and economic growth [5][9]

Core Viewpoint - Entergy Corporation reported strong second quarter 2025 earnings, affirming its guidance and raising outlooks for 2027-2028, indicating confidence in future growth and operational performance [1][9]. Financial Performance - The company reported second quarter 2025 earnings of $468 million, or $1.05 per share, compared to $49 million, or $0.11 per share in the same quarter of 2024, reflecting a significant increase [3][29]. - Adjusted earnings for the second quarter 2025 were $468 million, or $1.05 per share, up from $411 million, or $0.96 per share in the second quarter of 2024, marking a $57 million increase [2][3]. - Year-to-date earnings for 2025 reached $829 million, or $1.87 per share, compared to $124 million, or $0.29 per share in 2024, showing a substantial improvement [2][3]. Business Segments - The Utility business segment reported earnings of $599 million, or $1.34 per share, for the second quarter 2025, compared to $441 million, or $1.03 per share in the same quarter of 2024 [5][27]. - The Parent & Other segment reported a loss of $(131) million, or $(0.29) per share, for the second quarter 2025, an improvement from a loss of $(392) million, or $(0.91) per share in the second quarter of 2024 [10][27]. Operational Highlights - Entergy's capital plan was updated, and the company completed the sale of its natural gas distribution businesses in New Orleans and Louisiana [9]. - Entergy Texas received approval for $188 million in distribution investments, and Entergy Louisiana reached a settlement to support a new large customer [9]. - The company celebrated the 40th anniversary of its Waterford 3 and Grand Gulf nuclear plants, emphasizing its commitment to clean energy [9]. Customer and Sales Metrics - Total retail sales increased by 3.2% in the second quarter 2025, driven by a significant rise in industrial usage, particularly in primary metals and technology sectors [41][42]. - Residential sales, however, declined by 6.9%, indicating a mixed performance across customer segments [41][42]. Future Outlook - Entergy affirmed its 2025 adjusted earnings per share guidance range of $3.75 to $3.95, reflecting confidence in continued operational success [12][13].