Oge Energy Corp · NYSE:OGE
Oge Energy — Q1 2022 Earnings Presentation
13 slides from Oge Energy's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Earnings and Business Update Conference Call
Q1 2022 Earnings and Business Update Conference Call May 5, 2022
Slide 2: Safe Harbor
Safe Harbor Some of the matters discussed in this presentation release may contain forward-looking statements that are subject to certain risks, uncertainties, and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estim
Slide 3: Summary of First Quarter 2022 financial results
Summary of First Quarter 2022 financial results $0.19 $0.06 2021 2022 OG&E (Electric Utility) Electric utility operations earnings of $0.19 per share Holding Company and Other Operations earnings of $0.05 per share Natural Gas Midstream Operations earnings of $1.15 per share • Includes $282 mi
Slide 4: First Quarter 2022 Highlights
First Quarter 2022 Highlights Strong Operational Performance & Business and Economic Development Critical operational and grid enhancement investments • Substation upgrades • Transmission line renovations • Distribution circuit improvements • Communication and technology projects Business and Econ
Slide 5: 2022 First Quarter EPS Results
2022 First Quarter EPS Results • Strong operational execution delivers solid first quarter results 2022 2021 Drivers Load growth Recovery of capital investments OG&E $0.19 $0.061 Operation and maintenance expense, as planned Depreciation on growing asset base Natural Gas Midstream $1.152 $0.
Slide 6: Economic Indicators and Load Growth Continue to be Strong
Economic Indicators and Load Growth Continue to be Strong Highlights • Customer growth remains strong Customer Growth Unemployment Rates 1.3% • National: 3.6% • First quarter load results in line with 2022 • Oklahoma City: 2.7% expectations • Oklahoma: 2.7% • Ft. Smith, AR: 3.2% • Commercial custome
Slide 7: 2022 Guidance Affirmed
2022 Guidance Affirmed • Strong start to the year and healthy business fundamentals underly confidence in achieving guidance range of $1.87 to $1.97 per share for OG&E • Greater than 90% of utility earnings are typically generated in the second, third, and fourth quarters Targeting annual OG&E earni
Slide 8: 2022 Financing Plan Update
2022 Financing Plan Update • Strong progress in exiting Energy Transfer units • Through the end of April 2022, OGE has sold 21.75 million units and received $246 million in net pre-tax proceeds • 73.6 million units remained at the end of April 2022 • Proceeds will be used to pay down Holdco short te
Slide 9: Appendix
Appendix © 2022 OGE Energy Corp. | 9
Slide 10: OGE Sustainable Business Model
OGE Sustainable Business Model Growth & Investment Long-term Vision for Economic Development Shareholders • Grow Utility EPS 5-7% annually1 Growth in our Communities • 65-70% dividend payout Reliability, Resiliency, Affordability 1. From the midpoint of 2021 Utility guidance of $1.81 per share © 202
Slide 11: Investing in our Communities
Investing in our Communities Strong load growth • 5-year capital plan of $4.75 billion and robust • Strong customer growth and T&D resiliency projects drive grid infrastructure investment investment needs of • Over 75% of the 5-year capital plan is customer focused T&D investments our communities •
Slide 12: Projected Rate Base
Projected Rate Base $11,000 $10,369 KEY TAKEAWAYS $10,000 $9,848 Based off 5-year capital plan of $9,306 $4.75 billion, supported by strong $9,000 $8,744 customer growth and T&D $8,155 resiliency projects that drive $ millions $8,000 $7,554 incremental grid infrastructure $7,039 investments. $7,000
Slide 13: First Quarter Weather Impact
First Quarter Weather Impact Weather Variance Heating Degree Days Q1 2022 Q1 2021 % Change Actuals 2,010 2,066 (3%) Normal1 1,887 1,800 5% Variance from Normal1 7% 15% Cooling Degree Days 2022 2021 % Change Actuals 3 6 (50%) Normal1 10 13 (23%) Variance from Normal1 (70%) (54%) 1. The calculation of