OGE Energy Corp. Q4 FY2025 earnings call

Good morning, everyone. 2025 was a strong year. Delivered consolidated earnings of $2.32 per share. Talked about delivering in top half of guidance, filed for generation recovery, secured financing, job growth, safety recognition. 2026 outlook: guiding to consolidated earnings of $2.43 per share with range $2.38 to $2.48. Plan to file rate review in Oklahoma this summer, evaluate Arkansas rate review. Growth drivers: customer count increase ~1%, weather-normalized load growth 4%-6%. Issued draft RFPs, draft IRP identifying capacity needs. SPP assigned transmission projects. Recognized employees' dedication

Consolidated net income for 2025 was approximately $471 million, or $2.32 per diluted share. At the electric company, net income increased to $500 million, or $2.47 per share. At the holding company, the loss was $29 million, or $0.15 per share. Customer growth was just under 1%, and weather-normalized load grew approximately 7%

Guiding to consolidated earnings of $2.43 per share for 2026 with a range of $2.38 to $2.48. Long-term EPS growth target of 5% to 7%. Plan to file rate review in Oklahoma this summer with new rates in 2027, evaluate Arkansas rate review. Expect customer count increase ~1% and weather-normalized load growth 4%-6% in 2026

Q: How to think about rate base growth versus investment plan?

A: Plan as laid out equates to 9% rate base growth.

Q: What changed in large load panel?

A: Finalizing agreement with Customer X, expect to file with commission and large load tariff by midyear.

Q: Weather-normalized load growth moderation?

A: Loads have ebb and flow, in line with long-term average.

Q: Black Kettle energy storage termination?

A: Validates thesis of utility generation ownership.

Q: Capital prioritization?

A: Flexible in allocating capital, balancing affordability.

Q: 765 kV transmission line?

A: Early stages, routing to be determined.

Q: Data center contract and customer protections?

A: Contract worked into IRP numbers, customer protections include fair share, minimum terms, collateral.

Q: Customer class breakdown in load growth?

A: Customer X not driving 2026 load growth, residential steady.

Q: Commission elections?

A: Involved with candidates, primary in June.

Q: Alva data center in service territory?

A: IRP update doesn't include similar customer, talking to other counterparties.

Q: Current legislation impact on DC deal?

A: Involved in dialogue, focused on existing customer protection.

Q: Rate base CAGR and growth?

A: Lay out approved regulatory and financing assumptions, will layer in ITP projects and RFP approvals