Oge Energy Corp · NYSE:OGE
Oge Energy — Q3 2023 Earnings Presentation
14 slides from Oge Energy's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Earnings & Business Update Conference Call
Q3 2023 Earnings & Business Update Conference Call November 2, 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: Summary of third quarter 2023 financial results
Summary of third quarter 2023 financial results ✓ Consolidated earnings of $1.20 per average diluted share ➢Electric company earnings of $1.22 per average diluted share ➢Other operations, including holding company, loss of $0.02 per average diluted share “We are operating ahead of plan this year and
Slide 4: Highly productive quarter with exceptional execution
Highly productive quarter with exceptional execution ✓ Awarded $50 million grant from the Bipartisan Infrastructure Bill • DOE awarded maximum amount for our Adaptable Grid Project • Automation technology will reduce outages and outage time for customers • OG&E to invest approximately $50 million to
Slide 5: Continuing constructive regulatory outcomes
Continuing constructive regulatory outcomes Current: ✓ Awaiting Oklahoma Corporation Commission final order, following uncontested settlement in Horseshoe Lake CT approval ✓ Arkansas Public Service Commission approved construction of Horseshoe Lake CTs ✓ Filed final formula rate plan update in Arkan
Slide 6: America's Best-in-State Employers Oklahoma
AMERICA'S BEST-IN-STATE EMPLOYERS OKLAHOMA POWERED BY STATISTA OKLAHOMA
Slide 7: 2023 third quarter EPS results
2023 third quarter EPS results 2023 2022 Drivers Depreciation and interest expense on a growing asset base i Milder weather compared to last year i OG&E $1.22 $1.26 Recovery of capital investments h Solid weather-normal load growth h 2022 results include income tax effects from former Midstream Othe
Slide 8: EPS guidance raised
EPS guidance raised Refreshed consolidated EPS guidance Given OG&E’s excellent operational execution and a hotter than normal summer, we are increasing our 2023 earnings guidance to: Consolidated Midpoint = ~$2.05 Consolidated Consolidated – $2.02 to $2.07 from $1.93 to $2.07 Midpoint = $2.00 OG&E –
Slide 9: 2023 customer growth and load results
2023 customer growth and load results Customer Growth Load Growth Q3 Highlights ~1.0% 3.0%-3.5% • Updated 2023 weather-normal load growth forecast of 3.0%-3.5% is 1.1% 3.1% tremendous, adding to last year’s 3.1% growth 1.4% 2.4% • The potential for business growth in a wide range of industries in th
Slide 10: Strong financial position
Strong financial position • Strong balance sheet and no equity issuance needs in current 5-year capital plan1 • Forecasted FFO to debt of 17.5% to 18% during forecast period1,2 • No fixed-rate maturities until 2027 • Relative HoldCo debt position one of the strongest in the industry – expected to be
Slide 11: Q&A
Q&A © 2023 OGE Energy Corp | 11
Slide 12: Appendix
Appendix © 2023 OGE Energy Corp | 12
Slide 13: Third quarter weather impact
Third quarter weather impact Weather Variance Cooling Degree Days1 Q3 2023 Q3 2022 % Change Actuals 1,510 1,566 (4%) Normal 1,268 1,268 0% Variance from Normal 19% 24% Estimated current year normalized earnings per share impact of weather Q1 Q2 Q3 2023 ($0.01) ($0.02) $0.07 1. Degree days are calcul
Slide 14: Compelling investment thesis
Compelling investment thesis Clear line of sight for total return Electric company Commitment to Strong balance sheet, Abundant investment earnings per share prudently grow the liquidity and cash flow opportunities to growth rate of 5-7 dividend2 – no equity issuances address growing percent1 foreca