Oge Energy Corp · NYSE:OGE
Oge Energy — Q4 2022 Earnings Presentation
16 slides from Oge Energy's earnings presentation, Feb 23, 2023
Slide 1: Q4 2022 Earnings & Business Update Conference Call
Q4 2022 Earnings & Business Update Conference Call February 23, 2023
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: Results and plans that deliver on commitments
Results and plans that deliver on commitments Dedicated team that puts safety first and achieves results for stakeholders Delivered on-plan 2022 results 2023 plan built to deliver on commitments © 2023 OGE Energy Corp | 3
Slide 4: Summary of 2022 financial results
Summary of 2022 financial results Electric company earnings of $2.19 per average diluted share Other operations, including holding company, loss of $0.03 per average diluted share Natural gas midstream operations earnings of $1.16 per average diluted share Consolidated earnings of $3.32 per
Slide 5: Achieving results
Achieving results Residential electric customer rate OSHA Incidents1 OG&E O&M / Customer (cents per kWh)3 (42%) (21%) 15.6 1.65 14.8 $574 14.2 (4%) (26%) 12.4 $553 11.6 0.97 0.89 0.68 0.47 2019 2020 2021 2022 2021 2019 2022 OG&E - OG&E – Reg TX Nat’l Industry average2 AR OK Avg Avg 1.Number of recor
Slide 6: 2022 accomplishments & 2023 focus
2022 accomplishments & 2023 focus Execution every day, including hot & cold extremes Reliability, resiliency investments deliver 99.96% uptime Economic and business development efforts grow communities Committed to affordability and connecting our customers to programs and services Advancing in
Slide 7: Full year 2022 EPS results
Full year 2022 EPS results 2022 2021 Drivers Increased revenue on recovery of capital investments Increased load OG&E $2.19 $1.80 Depreciation O&M Gain on Enable merger transaction in 2021 Natural Gas Midstream $1.16 $1.92 Removal of equity earnings in Enable Operations Gain on sale of E
Slide 8: 2022 customer growth and load results
2022 customer growth and load results Customer Growth Load Growth 1.1% 3.1% Highlights • Achieved continued annual customer growth of greater than 1% • Exceptional 2022 load growth of 3.1% driven by Commercial, Oilfield, and Public Authority, which follows 2021’s strong growth of 2.4% • Total load v
Slide 9: 2023 load forecast continues to show territory strength
2023 load forecast continues to show territory strength 2023 Weather Normal Load Forecast 11-15% 16.00% 5.00% 4-5% 3.00% 2-3% 2-3% 3.00% 2.00% 1-2% 1.00% 0-1% 8-9%1 2.5-3.5%2 Residential Commercial Industrial Oilfield Public Authority Total Retail KEY TAKEAWAYS • Forecasting total load growth of 4-5
Slide 10: 2023 guidance consistent with commitments
2023 guidance consistent with commitments Consolidated Electric Company • Midpoint of $2.00 EPS • Midpoint of $2.04 earnings per share • Range of $1.93 to $2.07 EPS • Range of $1.99 to $2.09 earnings per share • HoldCo range of ($0.02) to ($0.06) • Represents 6.2% electric utility EPS CAGR from base
Slide 11: 2023 financing and balance sheet considerations
2023 financing and balance sheet considerations No equity issuance needs in current, $4.75 billion 5-year capital plan Forecasted FFO to debt of 17.5% to 18% during forecast period1 Expect to issue in Q2 up to $400 million of long-term debt at OG&E to support capital investments Fuel clause
Slide 12: Q&A
\ # OG: ” We Energize Life © 2023 OGE Energy Corp | 12
Slide 13: Appendix
Appendix © 2023 OGE Energy Corp | 13
Slide 14: 2022 fourth quarter EPS results
2022 fourth quarter EPS results Q4 2022 Q4 2021 Drivers Increased revenues from recovery of capital investments OG&E $0.23 $0.20 Depreciation from growing asset base and increase in depreciation rates1 O&M Natural Gas Midstream $0.02 $1.42 Net gain on Enable merger transaction in 2021 Operati
Slide 15: 2022 weather impact
2022 weather impact Weather Variance Heating Degree Days1 2022 2021 % Change Actuals 3,652 3,281 11% Normal 3,568 3,452 3% Variance from Normal 2.4% (5%) Cooling Degree Days1 2022 2021 % Change Actuals 2,385 1,896 26% Normal 1,893 1,912 (1%) Variance from Normal 26% (1%) YTD Actual Total Load 2022 v
Slide 16: Investing in our communities
16 Investing in our communities • 5-year current capital forecast of approximately $4.75 billion Strong load growth and robust • Strong customer growth and T&D resiliency projects drive grid infrastructure investment investment needs of our • Over 70% of the current 5-year capital plan is customer f