Oge Energy Corp · NYSE:OGE
Oge Energy — Q3 2024 Earnings Presentation
15 slides from Oge Energy's earnings presentation, Nov 5, 2024
Slide 1: Q3 2024 Earnings & Business Update Conference Call
Q3 2024 Earnings & Business Update Conference Call November 5, 2024
Slide 2: Safe Harbor
Safe Harbor Some of the matters discussed in this 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," "e
Slide 3: Photo: Bryan Terry, The Oklahoman
Photo: Bryan Terry, The Oklahoman © 2024 OGE Energy Corp. | 3
Slide 4: Q3 2024 financial results summary
Q3 2024 financial results summary ✓ Consolidated earnings $1.09 per average diluted share ➢Electric company earnings $1.12 per average diluted share ➢Other operations, including holding company, loss of $0.03 per average diluted share ✓ Expect 2024 EPS at the top of original guidance of $2.06 to $2.
Slide 5: Excellent Q3 performance
Excellent Q3 performance ✓Regulatory • Expect Oklahoma rate review final order this year • Expect Energy Efficiency final order in Oklahoma • Expect to file for generation capacity RFP approval in 1st half of 2025 ✓Broad-based business expansion driven by low rates • In discussions with datacenter p
Slide 6: Energizing Life
Energizing Life © 2024 OGE Energy Corp. | 6
Slide 7: Q3 2024 financial results drivers
Q3 2024 financial results drivers Q3 2024 Q3 2023 Drivers Depreciation and interest expense on a growing asset base Operation and maintenance expense OG&E $1.12 $1.22 Income tax expense Robust load growth, offsetting milder weather YOY Other income Interest expense Other Operations/HoldC
Slide 8: Robust customer and load growth sustained
Robust customer and load growth sustained Customer Growth Load Growth 6.8% 1.2% 0.8% 2.7% Q3 Highlights 1.1% 3.1% 1.4% 2.4% • 1.2% customer growth • 8.4% load growth, driven by contributions 2020 2021 2022 2023 Q3 '24 vs Q3 '23 2020 2021 2022 2023 YTD 2024 vs YTD 2023 from all customer classes • Exp
Slide 9: Pointing to top of 2024 guidance
Pointing to top of 2024 guidance • Expect to be at the top of 2024’s consolidated earnings per share guidance range of $2.06 to $2.18 per average diluted share • Excellent load growth • Warmer than normal summer • Assumes approval of the uncontested Oklahoma rate review settlement in 2024 Targeting
Slide 10: 2024 financing plan completed
2024 financing plan completed ▪ Planned debt issuances at HoldCo and OG&E for 2024 are completed ▪ Strong balance sheet and credit ratings ▪ No external equity issuance needs and a forecasted FFO to debt of ~17% each year through 20281 ▪ No fixed-rate maturities until 2027 1. Forecast period 2024 to
Slide 11: Q&A
Q&A © 2024 OGE Energy Corp. | 11
Slide 12: Appendix
Appendix © 2024 OGE Energy Corp. | 12
Slide 13: Third quarter 2024 weather impact
Third quarter 2024 weather impact Weather Variance Cooling Degree Days1 Q3 2024 Q3 2023 % Change Actuals 1,387 1,510 (8%) Normal 1,268 1,268 0% Variance from Normal 9% 19% Estimated current year normalized earnings per share impact of weather Q1 Q2 Q3 2024 ($0.03) $0.05 $0.04 1. Degree days are calc
Slide 14: Building futures with a community centric investment plan
Building futures with a community centric investment plan Capital Expenditures 2023 10K, $ millions 2024 2025 2026 2027 2028 Total Transmission economic expansion & reliability $ 145 $ 180 $ 195 $ 225 $ 240 $ 985 Oklahoma distribution economic expansion & reliability $ 400 $ 520 $ 665 $ 705 $ 725 $
Slide 15: OGE/OG&E fixed rate debt maturity ladder; strong credit ratings
OGE/OG&E fixed rate debt maturity ladder through end of the decade; strong credit ratings No fixed rate maturities until 2027 $450 $400 $350 $400 Amount ($mm) $300 $350 $250 6.65% $300 $300 $200 $150 $100 $125 $50 $100 $0 Holdco OG&E Moody's Rating Outlook OGE Energy Senior Notes Baa1 Stable OGE Ene