Oge Energy Corp · NYSE:OGE
Oge Energy — Q2 2023 Earnings Presentation
15 slides from Oge Energy's earnings presentation, Aug 9, 2023
Slide 1: Q2 2023 Earnings & Business Update Conference Call
Q2 2023 Earnings & Business Update Conference Call August 9, 2023
Slide 2: Safe Harbor
Safe Harbor Some of the matters discussed in this news presentation 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," "estimate
Slide 3: Summary of second quarter 2023 financial results
Summary of second quarter 2023 financial results ✓ Consolidated earnings of $0.44 per average diluted share ➢Electric company earnings of $0.46 per average diluted share ➢Other operations, including holding company, loss of $0.02 per average diluted share OGE Energy remains on target to deliver on 2
Slide 4: Delivering on the past and investing to power the future
Delivering on the past and investing to power the future Delivered on commitments to grow the utility Utility EPS +51% • Delivered unadjusted utility EPS compound annual growth of 5.3% from 2015 to the midpoint of 2023 utility guidance • Increased utility 5-year EPS growth expectations from 3-5% in
Slide 5: Enhance the customer experience and provide safe, reliable service
Enhance the customer experience and provide safe, reliable service Pursuing additional opportunities to improve the customer experience • Submitted IIJA grant applications that would provide 50% funding o Grid Resilience and Innovation Partnerships Program: ▪ $200 million for Storm Protection ▪ $100
Slide 6: Industry-leading safety improvements
Industry-leading safety improvements Total Recordable Injury Rate Days Away Restricted Transferred OSHA DART (OGE vs SEE average) (OGE vs SEE average) 0.8 0.4 0.6 0.2 0.4 0.2 0 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 SEE OGE SEE OGE *SEE: Southeastern Electric
Slide 7: Continuing momentum
Continuing momentum For the remainder of the year and early next year expect : ➢ Updates on Horseshoe Lake combustion turbine regulatory approvals and IIJA applications ➢ File next Formula Rate Plan in Arkansas ➢ File a rate review in Oklahoma ➢ Submit an IRP in early 2024 to identify generation cap
Slide 8: 2023 second quarter EPS results
2023 second quarter EPS results 2023 2022 Drivers Weather unfavorable ~7 cents, including storms i Depreciation and interest expense on a growing asset base i OG&E $0.46 $0.50 O&M, primarily timing i Recovery of capital investments h Strong total retail load growth h 2022 results include income tax
Slide 9: Second quarter 2023 customer growth and load results
Second quarter 2023 customer growth and load results Customer Growth Load Growth Q2 Highlights ~1.0% ~4-5% • Solid customer growth of ~1% and load growth of ~3.5% demonstrate vitality 1.1% 3.1% and vibrancy of service territory 1.4% 2.4% • Residential growth remains solid • Exceptional 16.5% growth
Slide 10: Financing plan update
Financing plan update ▪ Strong balance sheet and no equity issuance needs in current 5-year capital plan1 ▪ Financing activities complete for 2023 ▪ Year-to-date through June 2023 capital expenditures total $580 million, driven by T&D investments to serve growing service territory ▪ Forecasted FFO t
Slide 11: 2023 EPS guidance reaffirmed
2023 EPS guidance reaffirmed • Solid performance in the first half of 2023 underlies Utility EPS Guidance versus Actual Results confidence in reaffirming full-year EPS guidance: OG&E – $2.04 with a range of $1.99 to $2.09 $2.19 Actual ~6% HoldCo – ($0.04) with a range of ($0.06) to ($0.02) $1.92* $2
Slide 12: Q&A
We Energize Life © 2023 OGE Energy Corp | 12
Slide 13: Appendix
Appendix © 2023 OGE Energy Corp | 13
Slide 14: Second quarter weather impact
Second quarter weather impact Weather Variance Heating Degree Days1 Q2 2023 Q2 2022 % Change Actuals 234 210 11% Normal 249 249 0% Variance from Normal (6%) (16%) Cooling Degree Days1 Q2 2023 Q2 2022 % Change Actuals 571 736 (22%) Normal 553 553 0% Variance from Normal 3% 33% Estimated current year
Slide 15: Compelling Investment Thesis
Compelling Investment Thesis Clear line of sight for total return Utility earnings per Commitment to Strong balance Abundant investment share growth rate prudently grow the sheet, liquidity and opportunities to of 5-7 percent1 dividend2 cash flow – no address growing equity issuances customer needs