OGE Energy Corp. Q1 FY2026 earnings call

• Sean mentioned consolidated earnings of $0.24 per share in Q1, first quarter typically ~10% of annual earnings. Confident in 2026 guidance and foundation for 2027+. Will file long-term special contracts with Google for data centers in Oklahoma. Commissioned 98 MW Tinker power plant, expect 450 MW CTs at Horseshoe Lake in Q4, break ground on two additional 450 MW units, advancing 300 MW Frontier Energy Storage Project. Finalizing standalone large load tariff in Oklahoma to file by July 1st, preparing for rate review filing later this year with new rates in 2027. Expect preapproval of Frontier Energy Storage Project in August, seek preapprovals on rolling basis for RFP projects. Complete acceptance of notices to construct on SPP transmission projects in October. Company named national top workplace by USA Today. - Chuck discussed Q1 results, consolidated net income decrease due to mild weather and O&M timing, partially offset by lower depreciation and interest. Expect consolidated earnings guidance of $2.43 per share with range 2.38 - 2.48 assuming normal weather. Service area performing well with customer growth and healthy underlying demand. Completed debt issuance in April, flexibility with forward equity agreements, target FFO to debt around 17%. Moody's revised outlooks to stable, affirmed ratings citing constructive regulatory framework and balance sheet actions. Anticipate order in frontier battery storage pre-approval case in August and accept final notices to construct from SPP in October.

Consolidated net income was approximately $50 million or $0.24 per diluted share in Q1 2026, compared to $63 million or $0.31 per share in Q1 2025. Electric company had net income of approximately $58 million or $0.28 per diluted share in Q1 2026, vs $71 million or $0.35 per share in Q1 2025. Holding company reported a loss of approximately $8 million or $0.04 per diluted share. Service area customer growth just under 1%, weather normalized load stable with strength in public authority and oil field sectors. Google energy service agreements to serve data centers, adding large high load factor customer to spread fixed costs and create downward pressure on rates. Secured generation capacity from two solar facilities under construction providing 600 MW nameplate capacity.

• Expect consolidated earnings guidance of $2.43 per share with a range of $2.38 to $2.48 assuming normal weather for the balance of 2026. - Company has flexibility between now and May 2027 to exercise approximately 4.6 million shares in the forward equity agreements. - Target FFO to debt around 17% over the planning horizon.

Q: Regarding legislature process, how does HB 2992 affect negotiating position with large load customers?

A: Sean says it's clearly supportive of direction been heading, good alignment with authors for customer protection and economic development.

Q: On regulation side, how to sequence rate filings to preserve constructive recovery and avoid crowding on customer bills?

A: Will take bids from RFPs, file as negotiations complete, sequence rate filings in OK and AR.

Q: Since largeholder tariff not filed, discuss what's looked for in tariff and upfront capital commitments and impact on financing needs?

A: Expect large low customer to pay upfront, tariff consistent with legislation on contract terms, security, pricing, etc. Initial upfront connection won't change financing plans, adding resources will.

Q: When taking into account upside with Google, transmission, and IRP, how to think about impacts to EPS and when to communicate new plan?

A: Chuck says like playbook from last year, catalysts coming this year and early next, transmission line of sight by Q4 this year, Frontier battery case when buttoned up, will layer into plan and discuss financing. Short-term load guidance 4%-6%, longer-term not given but Google announcement consistent with IRP.

Q: How to think about 5-7 in base plan and catalysts?

A: Chuck says 5-7 unchanged in near term, catalysts extend runway, will roll projects into capital plan when they are.

Q: Thoughts on Moody's FVOTA debt threshold and common equity needed for incremental capex?

A: Chuck says confirmation of plan, long-term track record, full toolbox at disposal, will evaluate equity in context of market at time.

Q: Total gigawatts with Google and solar contracts?

A: Google announcement consistent with IRP, not incremental. Solar contracts adjust winter need from 1.9 to 1.8.

Q: Cadence of conversations for expanding Google or other data center contracts?

A: Sean says continuing and consistent.

Q: Plan to indicate new resources CapEx as they get pre-approved?

A: Yes, will telegraph as get pre-approved, will have color before formal approval.

Q: Color on 600 MW solar facilities and generation opportunities?

A: Not included in 2026 IRP need of 1.9, adjusting winter need to about 1.8.

Q: Seminole to Shreveport line timeframe and rights-of-way?

A: Chuck says SPP date was modeling, clarity by early Q4 this year, new line, negotiating with AEP, working on line routing.

Q: Additional equity need for battery?

A: Not in plan yet, will take holistic view when have timing clarity around same time as transmission, CapEx update likely third quarter.

Q: Positioning to win with incremental generation vs capacity contracts?

A: Sean says intent to own and operate assets, focused on owning and operating during severe weather, whether build or purchase, focused on holding ball during severe weather.