Oge Energy Corp · NYSE:OGE
Oge Energy — Q2 2024 Earnings Presentation
14 slides from Oge Energy's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Earnings & Business Update Conference Call
Q2 2024 Earnings & Business Update Conference Call August 7, 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," "
Slide 3: Summary of second quarter 2024 financial results
Summary of second quarter 2024 financial results ✓ Consolidated earnings of $0.51 per average diluted share ➢Electric company earnings of $0.54 per average diluted share ➢Other operations, including holding company, loss of $0.03 per average diluted share ✓ Expect to be in top half of 2024 consolida
Slide 4: Constructive results for regulatory agenda
Constructive results for regulatory agenda ✓Oklahoma rate review moves forward • ALJ recommended approval of uncontested settlement • Expect order in the fall ✓ Rate reductions keep rates low •Rates today are 40% below the national average •Lower fuel costs passed along to customers in May ✓Integrat
Slide 5: Excellent second quarter performance
Excellent second quarter performance ✓Business & Economic Development drives expansion • More jobs and investment in communities ✓Our sustainable business model works • Low rates powers growth • Attracts diversified customer mix ✓Technology drives satisfaction and efficiency • Customer tools and res
Slide 6: Strong Q2 2024 results
Strong Q2 2024 results Q2 2024 Q2 2023 Drivers Robust load growth h OG&E $0.54 $0.46 Warmer than normal weather h Depreciation on a growing asset base i Other Operations/HoldCo $(0.03) $(0.02) Interest expense i Consolidated $0.51 $0.44 Robust load growth and warmer than normal weather in the second
Slide 7: Q2 2024 customer and load growth highlight strength of service area
Q2 2024 customer and load growth highlight strength of service area Customer Growth Load Growth 5.8% 1.2% 0.8% 1.1% 3.1% 2.7% Q2 Highlights 1.4% 2.4% • 1.2% customer growth 2020 2021 2022 2023 Q2 2024 2020 2021 2022 2023 YTD 2024 • 6.7% load growth, driven by contributions vs YTD 2023 from all custo
Slide 8: Pointing to top half of 2024 EPS guidance
Pointing to top half of 2024 EPS guidance •Reaffirming 2024 consolidated EPS guidance and expect results in the top half of the $2.06 to $2.18 range o Remarkable load results for first half of the year Targeting annual consolidated 5% to 7% EPS growth rate through 20281 1. Base year equal to 2024’s
Slide 9: 2024 financing plan update
2024 financing plan update ▪ Planned debt issuance of $350 million at OG&E in the third quarter of 2024 ▪ Strong balance sheet, no fixed-rate maturities until 2027, and no external equity issuance needs in current 5-year capital plan ▪ Forecasted FFO to debt of ~17% each year throughout the 5-year p
Slide 10: Q&A
Q&A © 2024 OGE Energy Corp. | 10
Slide 11: Appendix
Appendix © 2024 OGE Energy Corp. | 11
Slide 12: Second quarter weather impact
Second quarter weather impact Weather Variance Heating Degree Days1 Q2 2024 Q2 2023 % Change Actuals 117 234 (50%) Normal 249 249 0% Variance from Normal (53%) (6%) Cooling Degree Days1 2024 2023 % Change Actuals 740 571 30% Normal 553 553 0% Variance from Normal 34% 3% Estimated current year normal
Slide 13: Building futures with a community centric investments plan
Building futures with a community centric investments 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 14: 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