Oge Energy Corp · NYSE:OGE
Oge Energy — Q2 2021 Earnings Presentation
20 slides from Oge Energy's earnings presentation, Aug 5, 2021
Slide 1: Q2 2021 Earnings and Business Update Conference Call
Q2 2021 Earnings and Business Update Conference Call August 5, 2021
Slide 2: Safe Harbor
Safe Harbor Some of the matters discussed in this news 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", "estimate", "ex
Slide 3: Q2 Financial Results
Q2 Financial Results $0.16 $0.42 Strong execution and mitigation $0.39 $0.10 efforts place Q2 2020 Q2 2021 Q2 2020 Q2 2021 utility on track OG&E Natural Gas Midstream Operations to be within guidance range Q2 2020 Q2 2021 $0.56 of $1.76 - $1.86 -$0.02 $0.43 -$0.06 Q2 2021 Q2 2020 HoldCo and Other Op
Slide 4: Q2 Operational Highlights
Q2 Operational Highlights ✓ OG&E recognized by S&P Global for having the lowest rates in the nation for the third consecutive year1 ✓ Systemwide transmission projects drive $75 million of increased capital investment ✓ Construction on two solar farms remains on track for completion this year ✓ OG&E
Slide 5: Integrated Resource Plan: Generation Retirements and Capacity Needs
Integrated Resource Plan: Generation Retirements and Capacity Needs 2021 IRP Timeline Retirements and Capacity • Draft IRP submitted on August 2, 2021 • Approximately 850 MW retiring over the • Stakeholder meetings in August and next 5 to 6 years September • Replacing capacity, beginning with solar
Slide 6: 2021 Regulatory Focus
2021 Regulatory Focus • Submit final Integrated Resource Plans in Oklahoma and Arkansas that sustain reliability of the fleet, providing cleaner energy, and keeping customer rates affordable • The Oklahoma securitization filing is on track and an order is expected by the end of the year • In Arkansa
Slide 7: Solid Economic Indicators & Load Results
Solid Economic Indicators & Load Results • Forecasting 2% load growth in 2021 over 2020 levels1 • 1.3% Customer growth year over year • OG&E’s business and economic development efforts expect to bring ~75 MW of additional load by the end of 2021 driven by the lowest electric rates in the nation • On
Slide 8: Long Term Vision for Customers and Shareholders
Long Term Vision for Customers and Shareholders • We energize life, providing life-sustaining and life-enhancing products and services, while honoring our commitment to strengthen our communities • Reposition as a pure-play electric utility by responsibly exiting the midstream investment • Grow OG&E
Slide 9: Second Quarter EPS Results
Second Quarter EPS Results • OGE had a strong second quarter as utility load results and midstream operations continue to rebound from the pandemic 2Q 2021 2Q 2020 Drivers Recovery of additional investments h OG&E $0.42 $0.39 Mild Weather i Higher commodity prices and higher Natural Gas Midstream ga
Slide 10: Economic and Load Results
Economic and Load Results • Forecasting 2% load growth in 2021 over 2020 levels1 • Load is supported by customer growth that continues to exceed 1% driven by increases in Residential and Commercial customers Customer Growth Unemployment Rates 1.3% • National: 5.9% • Oklahoma City: 3.7% 863,234 874,7
Slide 11: 2021 Guidance Reaffirmed
2021 Guidance Reaffirmed • Strong execution keeps us in the guidance range mitigating mild second quarter weather Long term OG&E 2022 – 2025 EPS growth rate of 5% • Currently projecting results within the lower half of the original guidance off the midpoint of 2021 range of $1.76 - $1.86 original gu
Slide 12: Securitization Update
Securitization Update OG&E received ~$100 million in SPP settlements in June, reducing the impact of fuel and purchased power costs incurred from the February weather event. Approximately $850 million has been recorded as a regulatory asset as of June 30, 2021. Oklahoma • As of June 30, 2021, OG&E h
Slide 13: Financing Plan Update
Financing Plan Update • Balance sheet strength supports our long-term growth plan and dividend • Consolidated FFO/Debt of 18% to 20% originally forecasted for 2021 - 2023 • Target metrics are before the effects of fuel costs incurred during winter storm Uri • In March 2021, OGE Energy entered into $
Slide 14: © 2021 OGE Energy Corp. |
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Slide 15: Appendix
Appendix 15
Slide 16: Investing in our Communities
Investing in our Communities 5% targeted • 5-year capital plan of $4.2 billion utility EPS • Approximately $100M added to the 2021 capital plan this year growth rate through 2025, • Strong customer growth drives incremental grid investment needs from the 2021 • Over 75% of 5-year capital plan is low
Slide 17: Oklahoma Securitization: Key Dates
Oklahoma Securitization: Key Dates Filed testimony Estimated date of supporting the Hearing on securitization application Exceptions proceeds April June October December December Mid Late Mid Late 2021 2021 2021 2021 2021 2022 2022 2023 2023 Filed Hearing Estimated Estimated Application on the Deadl
Slide 18: Securitization provides path to timely recovery of fuel and purchased power costs
Securitization provides path to timely recovery of fuel and purchased power costs Oklahoma law provisions • An application must be filed with OCC for securitization • OCC has 180 days to issue a financing order • Oklahoma Development Finance Authority issues the bonds • Bonds must be issued within 2
Slide 19: Oklahoma Securitization Procedural Schedule
Oklahoma Securitization Procedural Schedule Date Action Date Action July 19, 2021 Deadline for Intervention October 8, 2021 Pre-trial Conference Hearing on the Merits begins, continuing until August 23, 2021 Deadline for filing Responsive Testimony October 11, 2021 completed Proposed Findings of Fac
Slide 20: Second Quarter 2021 Results – Natural Gas Midstream Operations
Second Quarter 2021 Results – Natural Gas Midstream Operations • Natural Gas Midstream Operations received cash distributions from Enable Midstream of $18 million in Q2 2021 compared to $18 million in Q2 2020 • Natural Gas Midstream Operations contributed earnings to OGE Energy Corp. of $32 million