OGE - Earnings call 3 2023 | OGE Energy Corp.

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Operator

Good day, and thank you for standing by. Welcome to the OGE Energy Corp.

Third Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jason Bailey, Director of Investor Relations. ahead. go Please

Jason Bailey

CEO; and Energy Andrea, me everyone, welcome President and I our Thank Third good Quarter OGE and Chairman, our Corp.'s Sean With Bryan XXXX to Buckler, have CFO. you, Trauschke, morning, and Earnings today, Call.

of as we will is the like answer questions. always, followed we from first financial of to today, you from may oge.com. at and that webcast I'd call explanation will being an Bryan call this remind results. terms hear Sean, along In by And conference you finally, your follow

In be addition, same call the website. conference following that call and accompanying slides on archived will the

Before we call remarks. best statements estimate states but now that regarding attention statement forward-looking our your begin statements. forward-looking will turn this the we This is Sean cannot Sean? his and direct simply guarantee to SEC the financial financial I'd to is results, to the for harbor opening like to I for safe an over date. presentation, requirement

R. Trauschke

Jason. we Thank including $X.XX morning, today. be this Earlier Good joining company consolidated share, and of of share with at loss electric company a holding of you. $X.XX great $X.XX. us earnings you It's earnings per certainly for third per to you, the quarter reported everyone. Thank morning,

grid was August Our on public the seen a by during peak the to without keep a solid that setting our summer, new due flowing and areas performance hourly delivered energy hot in this operational of calling team through conservation excellence quarter is country. to who work XX a other for while

mind. this team need electricity reliable always for proud and our meeting our conditions of keeping system safe our that summer, was for shared I built designed, and always top of operated like I'm saw affordability and and customers' for we before

sheets strongest was and electric constructive a of productive the exceptional undertaken third operate company work The the we've utility one a industry. regulatory in the and premium environment balance to reflects highly with quarter as execution,

will few year we ahead details a bit. that share on as are operating guidance. a this a of result, plan more We just and Bryan are raising in

cost investment We communities. that have project, living with OG&E This reduced the our to reliability forward and and project customers program X our OG&E the XX outages adaptable one to deliver variety from Department us. awarded XXX a federal And only one amount at million, The is $XXX than outage Energy project was wide maximum of will the and opportunities of time and improving and receive companies under we resiliency grants a recent grid the of before was of for million. $XX in for grant grant awarded total of look cost. announcement this more the half for customers

look before X the hearing those forward on end We have proposals back with of review department. the additional under the year. We grant to

may apply You team that districts in funds shared school I recall buses. to federal our acquire time, electric for to area our districts for last with closely was service this school year at collaborating

them take awarded service delivery furthering grant Eastern Shawnee ensure we in X territory. buses school communities the their closely and the X to total, area, districts first electrification were of school in the Schools are that month, in fleet, their working Oklahoma service into with awarded district our to were last Just buses EV to adding through was success our In EV in XX to Public buses school program. the

customers' of the to our of customers, continue got continues our as reduction off in yesterday grow. country the That to customer-centered for $XX lowest bills customer. on of average area even lower, rates residential month the tune to Our just in our significant per fuel a efforts for announced relentless we the cost continues service the pay some in results affordability on just as and which focus electric

business the development, tribal growth economies and manufacturing with retail and across care, job Broad ensure for sectors healthy defense, health future as as the expansion diverse board.

Our XXXX above load forecast delivers growth rate. our growth, year-over-year robust well historical

remains forecast grow. service area as to long-term strong our Our continues load

regulatory stakeholders to with we front, await add Lake our now finalized Corporation approved a Oklahoma order the to an uncontested ALJ new which the the final On from and settlement Horseshoe generation facility, Commission.

these approval we and rate in Service plan begin Arkansas update formula received Public also to We the our units, final from Commission filed construction Arkansas. on

the outlining Oklahoma by plan we the resource forward, And an rate several a needs quarter will of our file the meet over to Looking of XXXX, next plan year. we the capacity also, the will in integrated in review end submit first years.

regulatory We both and expect in outcomes Oklahoma Arkansas. constructive continued

and and our our belonging continued are the sense efforts feel to to experience, internal experiences drives State year customer employer named of to by delighted We last we Forbes our employee of be operations. Magazine. important showing develop, these a were Turning learn, and succeed We #X Oklahoma where results. in that were #X employees our culture the know nurture

team and work purpose. the every dedication who is proud to for life nearly customers men women so of energizing and Our OG&E for our very our I'm purpose-driven, XXX,XXX continued day. their

want with finally, service. I leave one, to a you few And Number thoughts.

circuit, single XXX-mile of Our and success customer, industrial serve obligation our residential whether equally a to customer to a end operation each at drives a team large stability. or the

future today XX week. for to We it delivering and day, by days build affordable a business hours for the a our and continue build reliable X to electricity continue

and I'll now help all we Thank have the priorities will you, And these to affordability Bryan. our with coming. turn and and mind, in investments projects us. we manage execute the Bryan? opportunities of to growth on support us load we'll over the call evaluate before that make the investment And focus reliability

W. Buckler

Jason, and morning, good Thank Thank Sean. you, you, everyone.

quarter exited income $XXX diluted the start $X.XX through Slide Let's million to included on the and $XXX compared income or our sale $X.XX of share last $X.XX a or in net which midstream per period from was per XXXX. year we consolidated On third third discuss XXXX net quarter X of for units. share share gas XXXX million energy per natural results. same the Earnings basis, in fully transfer of operations,

well offset investments. due interest compared degree operating year capital expected solid to last this Core The increased to quarter. $XXX days net $XXX same well per our electric of to to million electric in or in expense compared was capital recovery higher normal XXXX. operations of or utility period depreciation third revenues fewer electric cooling load as quarter of growth company $X.XX $X.XX investments, the net the income and achieved million primarily weather of per and as diluted The share by decrease performed share company related income from

or including of in per per the million compared company, the loss a holding of our XXXX. or operations, reported loss quarter period Other same $X.XX in $X million third $X a share diluted $X.XX to share

midpoint Now diluted current refreshed has per driven $X.XX at XXXX. about initial basis, share. to X a been the for our EPS the $X.XX earn is let's turn holding we our excellent company results rate forecast, expect consolidated higher Slide this to guidance It year reflecting far thus company. for full by now The company for and interest refreshed than an of environment. performance year our forecast From $X.XX to electric outstanding

well the outpace the continue I've company for in and tailwinds quarters, previous electric indicated expectations, to cost As XXXX you interest up setting at to beyond. very us

weather-normalized which third X. continues approximately to compared of electricity OG&E Turning experience load, to growth on factors solid Slide increased usage XXXX. X% quarter to in the

of X We growth least years weather-normalized for X% X% are X.X% growth. load track and at to year are of forecasting growth X X% full better years of on and consecutive than

growth load We development are feel just the are started. sustained proud level of and getting tremendous and of we economic

For deliver in ability X% load XXXX, we more growth we example, once looking again historically to forward and refine becoming our in excess to are more and had to experienced. continue confident our estimates of

significant And next Sean our consider in expansion the As will for we reduction be includes several continue you service industries. earlier, interest many referenced years. business in believe of rates to business customer mentioned, when area robust OG&E's fuel the pipeline

on Slide for I'll XX on position. financial an wrap update up our

no Our maturities for and to of continues metric risk projected with industry balance our to XXXX. one a rate capital equity low issue current fixed-rate with need XX% FFO-to-debt to XX.X% of in interest the forecast, best until relatively be no sheet the

in places spectrum position a eyes opportunities a and the north on T&D sheet of to of resilient and safe related of strength us broad incremental generation as star with reliable, our we evaluate a investment balance Our and system. power investments,

XXXX and for delivering come. for and our a both in strong to company sustain call in support us with growth look growth positioning to critical to and capital our providing consolidated It We updated to of be forward privilege is and quarter part an fourth and to plan a infrastructure, potential guidance years customers financing X-year February. expansion while long-term economic during significant earnings earnings load

fuel balance few questions, XX, Before compared the $XXX year the substantially and we the and many months beginning allowed prices you million. us of balance recovery to me million months during last of of gas which September customer sustained ahead of $XX as call speak lower to the open let stood the your business to of The at rates to residential natural schedule. regarding lower

rates a all in very mentioned, will Oklahoma month. the Sean of customers reduction beginning As in meaningful see our this

and nation These reduction for or example, XX% having OG&E For reductions as in ranges from monthly some business firmly a region. place and position of experience reduction residential we on customer highly the will rates lowest customers the the as in average their XX%. rate business company compete in the position to an competitive customers of $XX, bills rates expansion in XX% opportunities for the

our the to With customers, your delivering shareholders forward our for open of XXXX. and eyes With line we that, come. employees' for And set are in on look years we for proud will communities questions. accomplishments future, the we our to

Operator

first Instructions] question with Campanella [Operator Our from Barclays. Nicholas comes

Nathan Richardson

Richardson how based bit funding about could 'XX for wondering for which on I move little Nick. upcoming a on if Nathan actually for parent -- was you're CapEx, higher. just drag the It's thinking

parent If any on give that color the could would be you drag, great. more

R. Trauschke

Do take to Bryan? you that, want

W. Buckler

Sure, yes.

utility asked that the and glad speak lining host utility, I'm heard So tailwinds very a really growth incremental holding namely load at very strong are many well the beyond. question. up to the for And and you've investment company and The needs. us you infrastructure XXXX of

business near the be and So of company utility there the end expecting that way. top range, grow the whole the to I'm to finance along will

drag. a all as So it incorporated view we an We view it there. -- business don't as

and again, be view February provide we're clear, to So strong, really call. a so. do to excited prospects on financial tailwinds really of our consolidated concise we'll And are OG&E's

to in again, So come more February.

Operator

Our next Pourreza Shar Partners. Guggenheim question with comes from

Konstantin Lednev

of are on on tailwinds million you a from thinking Especially we maybe This Shar. what rate kind XXXX CapEx. the quarter. about how good prior the actually of just There what of options? we've dividend after something policy mentioned, in major $XXX case, of factor just of XQ for seen, -- different the be reconsideration? rate think the Congrats the outcome? light run that update question, that the Maybe versus up the more as And cadence Nate or the is a kind into about update interest for Constantine on volatility a And into to XQ is follow-up for rate just the goes seems comes does year-to-date? maybe, basis that

R. Trauschke

Sean. this is Constantine,

think all decision-making factor are considerations our those I time. you that the all points raised into we

around. And terms to move distribution conducted investment we not have The around we're lot able a those those lot quick multi-years. we're a over flexibility We've and majority are anything previously, investments engineering or things like We've aren't so very lot in opportunities of so have. are the long our of They're we making. of tenured opportunities, network, of said new investments these planning that. developments the and for of a

to to rate our It intention is continue reviews. file

dividend Oklahoma. We remain have in and to plan ratio changed regulatory of terms XX% targeting on in in on going policy that our Arkansas, And a rate filing. our XX%. payout current But of formula to we're the hasn't working we're

continue got investments manage what flexibility for we've different delivering in and around going we're going been move to -- long that to executing doing, term, continue business to results. just and So continue to the the to we've the just things draw -- and we're

Konstantin Lednev

tail for flexibility. have on lower touching drivers Good Is maybe the that And slightly the Can 'XX? the to comment to there translate in visibility for the end load 'XX in economic into Excellent. And margin ultimately, that we're the as see? of some getting of load does and how expectations the impact any that shifting 'XX? the growth also forecast development. and you on 'XX, you

R. Trauschke

cover want that Bryan, do you one? to

W. Buckler

we in had phenomenal really we had Sure, commercial, in X.X% really had sure. customer in top of our Constantine, 'XX are growth with results. X% growth line we're which again for our X% expectations, early proud of XXXX what X the to we the It's residential XXXX. and growth high. largest on be and segments, And were

So that's -- a year it's been great been for us. a

isn't going it expansion the throughout business of all XXXX, into a pipeline just way period. 'XX, incrementally forecast Our X-year see but 'XX, we adding

mentioned pipeline We perhaps strong our me have as he's ever good And is XXXX. as through the ever to sales company has head reiterate of this vision customer seen but to on that as our I last as it to it, call, continues and expansive as seen. our strong really

So great in above it to February, forward expect look definitely you there, details story a to and we but X% be more giving again.

Operator

comes with Morningstar. Our from Travis Miller question next

Travis Miller

you quantitatively, simpler. the to drivers? Obviously, lay about either else follow-up that the of know I'll load maybe ask giving you if qualitatively, or the points, guidance could and simply you would you out be here. XXXX mix? What growth. talked even you're mind, I year-over-year kind But if not the is of will, bullet the follow-up, in types don't

R. Trauschke

will primarily, a filing -- think that in and load And that mentioned load I our going formula growth. invest made we Arkansas. make in before file I to rate Well, filing under will be a and it's we've around we Oklahoma, plan driven growth, by

So I you. those X drivers would to for point

Travis Miller

the of around terms Okay. of done Oklahoma What's adjustments your in getting XXXX terms rate thoughts in the timing and earnings? case

R. Trauschke

that's XXX Typically, about days.

mid-summer. think would you So

Travis Miller

that points, minus the points on Okay. what to basis earnings? is what's If basis And sensitivity plus have you interest your Great. rates? impact on about XX then level, holdco or or XXX

R. Trauschke

Bryan?

W. Buckler

of Sure. the but could all a refresh into we've little need we've year. front, given. to that holding not expectation what guidance interest, That's on only That's is that's grow that, on we the rule next $X.XX pointed the to Travis, a company $X.XX an bad But guidance stale to thumb. that.

we'll estimate. refine continue that to So

I strong a bullish again, model today. about very growth feel, that's prospects But And utility's on the really which us, part mentioned is utility. of reasons we business talked inclusive as our just mostly one for of all for before, we've

So lay for consolidated more on a give all you time, in February. us little we're a to basis of going this out and

Operator

Our comes Tanner from with of James next Bank question America.

Tanner James

Constantine's on question growth. on up following Just load

or could look relative that potentially the Within your the perhaps large issued customers commercial load And upside data center beginning expectations? you the when bucket, seeing the extended what are of to there expectations you on year? to items providing are at front as other any relative we at

R. Trauschke

Bryan?

W. Buckler

initial XX% commercial was growth these We're Our for estimate 'XX quarter it's expectations come growth really in to we're is -- are at of in when there given range segment pretty a for And the high but year-to-date. a third was they're of loads going the to X.X%, XX%, were XX% XX.X% to the it. large that expansive, also kind exact which hard example. of some We year-over-year. in, right on month rate,

right expected. in So which is somewhere we'll the for in range XX% the XX% year, probably full to land commercial around we

going again to be growth beyond, to in it's for strong look and that's really you see that easy 'XX to 'XX commercial. As

the the well. 'XX of 'XX. 'XX extension over carried growth over It into should in started Just in carry as we

of But is data other mining, do mentioned. you Some industries the we are that call. on expanding. as Sean Bitcoin mentioned that those have

this in all are industry around every centers AI, more in this seen, company which Data country, the is, we've as is -- impacting that generative sorry.

United run capacity. do the industry So work States used data are that -- this honestly, across the big to United And have every do that out using the never States quite of they've companies have before. centers in

grid. our we're into in request tapping system, tremendous seeing So for our load

forward a forward. going serving to And way responsible that so look in we

Tanner James

more had CPCN the in this procedural-type Will then just typical lastly, and formal for Lake occur the a of Horseshoe the Arkansas. regarding question But basically, just at time completed? review in commission's what's -- the is filing situation? at line level And construction precedent I when

R. Trauschke

Typically, we already we've begin construction. go to them, the to approval and received

complete, we portion their then when filings And Arkansas. allocated our file in in requirement of recovery, it. that for the that's it's So subsequent will

Operator

next Mortimer Alex with Securities. Our comes from Mizuho question

Alexander Mortimer

you I in we environment. hoping potential file bit mentioned a touch your was increase Oklahoma you look Oklahoma on the for a I CapEx year, the years. coming next rate So as in your know plan could case regulatory you to in little

color your see So support you more the bit expand maybe regulators continue spending to a in look rates. you just as work as coming into on its way little to years from to the this has

R. Trauschke

I settlements received the of constructive Oklahoma think and agreements we the very we've orders evidenced number by the constructive, find number last of over Commission years. and

As affordability is center. front I look and at things,

the tailwind. and here rate that's to lot and you this the when reduction, and year, flexibility confidence charge, comments this big the us that's that at a about filing. that so fuel we're make our of And the lot spoke on end give we going heading here us to filing leading a have gives going And to of a of into

So I nature in see constructive and change constructive outcomes we've no received. the

Operator

[Operator Ladenburg. Instructions] next question from Fremont Paul with Our comes

Paul Fremont

should look you opportunities words, might be How mix gas? what possible like? of beyond construction of it So the more generation Would potential renewables? additional us would look Lake? be give Horseshoe in at new other investors likely sense a generation Can it of

R. Trauschke

you forward, resource to dispatchable want think the mix generation there I've said scenarios generation of certainly going But of generation run are of believe have incorporate I a in economic Yes. IRP going past gas new you're scenarios at in Thanks, look in different is our of in until and what a available, filing. see you to is various for that. a lot looking solar. Paul. lot like so long-duration and is I regulations our through Sean. of next a different development, This stages EPA We'll scenarios. lot that Obviously,

Paul Fremont

in would terms safe -- XX-XX be sort to assume percentages? that be of it would a of And

R. Trauschke

way that's good think I I about a TBD, that's but think it. to think

Paul Fremont

And should obviously Great. term, extremely strong at longer how level goal? FFO-to-debt FFO-to-debt term, we think Longer then an you're your about today.

R. Trauschke

to you take Bryan, that? do want

W. Buckler

our as take keep today Sure, mentioned, stand And solid the sheet of company to we're we metrics sure a and our balance XX%. to Paul, a we yes. care always at company that XX.X% wants good, position. make in

never see So edge living going on XX%, us at you're the to XX%.

this build that Obviously, CapEx add be the we'll without have plan need of equity. do we room to some continue going out we capital issue some to the we're into estimates, our to future. all, as those So But we'll of mindful to our all balance right it and refine care to investments, matter, take metrics, those we'll credit it's and sheet affordability, capital whether balance the it in balance and continue way.

Paul Fremont

And what a budget, sort to will investments? that, follow-up be investors currently incremental maybe -- not percent CapEx should of to as what on support equity of your incremental in that's assume used

W. Buckler

Sean. ahead, Go

R. Trauschke

anything it be we'll needs out February. time. at meet rolling in we Paul, that get do will And ahead earnings in really of was terms Yes. there lay doesn't and Bryan a objectives, all mean I got But appropriate plan require want I this think the growth any I that to that, all ourselves clear that we've equity. I above equity. to to don't and of out beyond that -- think don't our

Operator

remarks. you. time. I'd at this further to showing Trauschke for closing to Thank back like turn it no Sean questions I'm now

R. Trauschke

in your being you Thank are we for adjourned. with you, Have Corp., and Andrea. a And OGE day. us today great Energy interest thank all and

Operator

conference. Thank concludes participation program. This you in today's your the for

disconnect. now may You

OGE Energy (OGE) 2 Nov 232023 Q3 Earnings call transcript