OGE Energy Corp. Q4 FY2024 earnings call

• 2024 was an outstanding year with consolidated earnings exceeding guidance. Achievements included adding over 10,000 customers, improving SAIDI numbers, replacing a large substation ahead of schedule, and having nearly 450 MW under construction at Horseshoe Lake.
• Enhanced self-service tools like mobile app and website, used automation/AI for efficiency, and had a strong safety year.
• 2024 load growth was 7.6% weather-normalized, with commercial leading at 21.4% and residential at 2.4%.
• Plan to file for rate reviews in Oklahoma and Arkansas midyear and year-end respectively, and leverage economic development to drive load growth.

In 2024, the electric company achieved net income of $470 million or $2.33 per diluted share, compared to $426 million or $2.12 per share in 2023. The holding company reported a loss of $28 million or $0.14 per diluted share in 2024, up from a loss of $10 million or $0.05 in 2023. The electric company's performance contributed significantly to the consolidated earnings, while the holding company's loss was due to higher interest expense and lower net other income.

• 2025 consolidated earnings guidance is $2.27 per share with a range of $2.21 to $2.33, midpoint 7% higher than 2024.
• Long-term annual EPS growth expected to be 5%-7% based on the 2025 midpoint.
• Anticipate 2025 weather-normalized load growth of 8.5% by year-end, building on strong prior years' growth.

• Regulatory uncertainties in the rate review processes.
• Uncertainty around the timing and outcome of data center project negotiations.
• Potential challenges in aligning RFP results with future load needs if more data center projects materialize.

Q: Could you address the megawatts needed for data center opportunities and the Stillwater opportunity?

A: We've characterized data center opportunities as 250 to 500 MW across several discussions, but specifics on Stillwater are prohibited.

Q: What's the outlook for 2025 guidance and how does it relate to prior long-term assumptions?

A: 2025 guidance is a step up, and we're hesitant to give EPS sensitivity on low growth but load growth across classes contributes.

Q: When can we expect updates on data center customer contracts and generation RFP?

A: We'll file generation RFP results by midyear, and communicate on data center contracts when they occur.

Q: How does load growth impact rate case filings in Oklahoma?

A: Load growth is expected to mitigate the impact of rate case filings, keeping rate increases small.