Financial Data and Key Metrics Changes - The company reported consolidated earnings of $0.44 per share for Q2 2023, compared to $0.36 per share in the same period of 2022, reflecting a year-over-year increase in net income [47] - The electric company achieved net income of $92 million or $0.46 per diluted share in Q2 2023, down from $101 million or $0.50 per share in Q2 2022, primarily impacted by weather conditions [22][47] - Year-to-date results through June for the electric company were $0.66 per diluted share, tracking on plan for the full year [36] Business Line Data and Key Metrics Changes - The electric utility's core operations performed well, with residential load remaining solid and commercial sector growth at 16.5% year-over-year [48] - Other operations, including the holding company, reported a loss of $4 million or $0.02 per diluted share in Q2 2023, an improvement from a loss of $9 million or $0.05 per share in the same period of 2022 [23] Market Data and Key Metrics Changes - The company expects load growth for 2023 to exceed 4%, driven by economic development and business partnerships in Oklahoma and Arkansas [20][24] - The company experienced exceptional growth in weather-normalized total load, coming in at 3.5% compared to Q2 2022, marking the third consecutive year of load growth well above 2% [37] Company Strategy and Development Direction - The company is focused on delivering reliable, affordable, and safe electricity to nearly 900,000 customers, with a long-term plan that includes diverse investment opportunities [6] - The company is pursuing new generation approvals and has filed applications for projects under the Infrastructure Investment and Jobs Act (IIJA) [30][31] - The company emphasizes affordability and has made significant progress in reducing the unrecovered fuel balance, which will benefit customers in the future [34][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet customer needs and grow, citing a strong load forecast and economic development efforts [20][35] - The company is optimistic about continued growth in 2024, particularly in the commercial sector, and expects to exceed historical load growth rates [26][70] Other Important Information - The company has experienced significant weather events but reported that 98% of customers did not experience outages due to effective operational responses [17][18] - The total fuel under recovery balance was $198 million as of June 30, 2023, a decrease of $317 million since the beginning of the year [51] Q&A Session Summary Question: What was the impact from storms in the quarter? - Management noted that despite severe weather, 98% of customers did not experience outages, showcasing the effectiveness of reliability investments [17] Question: Can you comment on the drivers of CapEx year-to-date? - Management indicated that CapEx is tracking well relative to the original plan, with a focus on regulatory mechanisms for timely recovery [41] Question: What drove the 16.5% load growth in the commercial sector? - The growth was attributed to various industries, particularly data mining companies and manufacturing, contributing to a robust commercial load [78]
OGE Energy (OGE) - 2023 Q2 - Earnings Call Transcript