OGE Energy (US:OGE)2025-10-29 14:02Financial Data and Key Metrics Changes - Consolidated earnings for Q3 2025 were reported at $1.14 per share, an increase from $1.09 per share in the same quarter last year [3][8] - The electric company achieved net income of $243 million, or $1.20 per diluted share, compared to $225 million, or $1.20 per share last year [8][9] - The holding company reported a loss of $12 million, or $0.06 per diluted share, compared to a loss of $6 million, or $0.03 per share last year [9] Business Line Data and Key Metrics Changes - The main driver for the increase in net income was the recovery of capital investments, despite higher O&M and income taxes [9] - Year-over-year customer growth was just under 1% in Q3, with weather-normalized load growth at 6.5% [9][10] - The company expects total retail normalized load growth of approximately 7.5% in 2025 [9] Market Data and Key Metrics Changes - Oklahoma customers will see a decrease in their monthly bill due to a reduction in the fuel cost adjustment, averaging $6.75 lower per month [5] - The company has experienced load growth that surpasses national trends, particularly from data centers [5][6] Company Strategy and Development Direction - The company is focused on maintaining low rates to sustain growth and has a strong capital investment plan, including a $250 million project for the Fort Smith to Muskogee transmission line [10][11] - The company is negotiating with existing bidders and anticipates issuing more RFPs to address future generation needs [4][10] - The company aims to achieve a consolidated earnings growth rate of 5%-7% based on the midpoint of its 2025 guidance [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering results in the top half of the earnings guidance range for 2025 [8][12] - The company highlighted strong local economies and job growth in Oklahoma and Arkansas, contributing to its operational success [7][10] - Management emphasized the importance of affordability and operational excellence in driving customer demand and business growth [6][7] Other Important Information - The company has a strong balance sheet, which is considered a competitive advantage [12] - The company is in serious negotiations regarding data center load, with expectations for announcements in the near future [6][65] Q&A Session Summary Question: CapEx needs and RFP process - Management anticipates approval for the pre-approval request soon and plans to layer in additional filings and RFPs as needed [18][20] Question: Regulatory constructs and ROE lag - Management indicated that they have a good track record on minimizing ROE lag and will provide guidance for next year in February [21][22] Question: 2025 SPP ITP plan and competitive position - Management acknowledged the robust SPP plan but noted that further milestones are needed before providing a firm outlook [31] Question: Data center project negotiations - Management confirmed ongoing negotiations and the requirement to file a large load tariff as part of the pre-approval settlement [32][65] Question: Load growth outlook for 2025 - Management clarified that the load growth outlook of 7.5% for 2025 is at the low end of the prior range due to timing issues with customer ramp-up [34] Question: Meeting capacity needs by 2030 - Management confirmed that they expect to meet some capacity needs from the current RFP and will file a new RFP to address the remaining shortfall [46] Question: Dividend growth rate - Management stated that the dividend growth rate is targeted to align with investment opportunities, aiming for a payout ratio of 65%-70% [55] Question: Rate filing cadence - Management confirmed that the philosophy regarding rate filings remains unchanged, with adjustments based on settlement agreements [56]