OGE Energy Corp. Q1 FY2025 earnings call

• Customer growth and load growth continued momentum: 1% customer growth and 8% weather-normalized load growth. Residential and commercial sectors led growth. • Grid and weather strengthening investments delivered high reliability, averaging 99.975% reliability despite recent weather events. • Generation projects: About 550 megawatts under construction at Horseshoe Lake and Tinker, with regulatory filings upcoming for RFP. • Regulatory actions: Plan to request rate review midyear in Oklahoma and file general rate review and formula rate plan in Arkansas. • Supply chain: Diversified transformer sourcing to minimize disruptions, with components secured through 2026. • Economic development: Anticipated baseload growth from industrial, military, and midstream customers, including Oklahoma City hosting 2028 Olympics events.

Consolidated net income for the first quarter of 2025 was $63 million or $0.31 per diluted share, with OG&E contributing $71 million or $0.35 per diluted share and a holding company loss of $0.04 per share. Customer growth was 1% year-over-year, and weather-normalized load growth was 8% year-over-year. Residential and commercial customers saw growth at 3% and 28% respectively, while industrial and oilfield classes had softness due to outages. OG&E's rates are top decile for overall retail and lowest in Oklahoma and Arkansas.

• Affirmed 2025 earnings per share guidance of $2.27 within a range of $2.21 to $2.33 per share. • Load growth is on track to meet full-year expectations, with intentional efforts to grow communities supporting low rates. • Confident in achieving consolidated earnings growth based on strong business fundamentals.

• Moody's placed OGE on negative outlook, with focus on FFO to debt ratio. • Macro-economic factors and regulatory changes pose potential headwinds. • Uncertainty in supply chain and regulatory outcomes affecting CapEx plans.

Q: Durgesh on balance sheet and Moody's?

A: Moody's negative outlook not imminent, credit accretive legislation and track record considered, still targeting 17% FFO to debt.

Q: Julien on Moody's and CapEx?

A: Credit accretive legislation points to favorable direction relative to peers, but Moody's process will determine outcome.

Q: Stephen on residential load growth durability?

A: Residential growth trend positive, though not guaranteed to stay at 3%, underpinned by economic fundamentals.

Q: Anthony on Moody's and credit enhancing items?

A: Credit enhancing items are external (legislative/regulatory), continuing track record helps, Moody's to resolve negative outlook within 12-18 months.