OGE Energy Corp. Q3 FY2024 earnings call

• Response to recent storms: 86% of impacted customers restored within 24 hours, 90% of essential services back up. Team worked with election officials to energize polling places. - Financial results: Third quarter consolidated earnings $1.09 per share, electric company $1.12 per share. - Regulatory updates: Anticipate order in Oklahoma rate review by end of year, uncontested settlement on 5-year energy efficiency portfolio expected by end of year. - Load growth: Forecast for year now at top of revised range 4%-6%, driven by commercial and strong residential growth. - Generation investments: Broke ground on Horseshoe Lake Units 11-12, hydrogen-capable natural gas units. - Data center projects: Franchise election in one community for OG&E to serve new data center. - Cost management: Delivering best O&M per megawatt hour cost in industry, increased self-service digital tools.

Consolidated third quarter net income was approximately $219 million or $1.09 per diluted share. The electric company achieved net income of $225 million or $1.12 per diluted share. Weather-normalized load growth was exceptional at 8.4% in Q3, with year-to-date weather-normalized load growth at 6.8% and expected to finish at the top of the 2024 load growth guidance of 4% to 6%. Customer count continued strong year-over-year growth at 1.2%. Weather-normalized load growth was strong across all customer classes: residential 1.8%, commercial 24.7%, industrials 3.7%, oilfield 1.7%.

• Full year 2024 consolidated earnings per share expected to be at the top of the $2.06 to $2.18 range due to excellent load growth and warmer-than-normal summer. - Expect 5% to 7% consolidated EPS CAGR from 2025 and beyond based on sustainable business model of low rates, excellent load growth, constructive regulatory environment, and customer-centric investment plan.

No specific detailed risks highlighted in the transcript

Q: What is your opportunity set for SPP?

A: Awaiting notices to construct in December, will finalize estimates and layer into plants with flexibility.

Q: Thoughts on CapEx update and resource mix?

A: CapEx update to be done by February regarding generation RFP, continuous evaluation of plant upgrades, focus on best value for customers with long-term asset ownership.

Q: Load growth and CapEx projections?

A: Load growth driving CapEx, evaluating reevaluation of IRP due to changed assumptions, SPP ITP projects with cost allocation across region.

Q: Data centers and contract structure?

A: Focus on low debt, accretive to asset base, ensuring residential customers not impacted, working on cost allocation through commission.

Q: Generation required for Stillwater data center?

A: Unable to disclose specific details.

Q: OCC settlement timeline?

A: Expect settlement this year, rates implemented July 1 with reserves in place.

Q: CapEx financing with equity?

A: Focus on regulatory compact first, longer term FFO-to-debt of ~17% is considered for financing.