OGE Energy: OGE Energy Q4 2021 Earnings Conference Call Presentation

Fourth Quarter 2021 Earnings and Business Update

Conference call

February 24, 2022

Safe Harbor

Some of the matters discussed in this presentation may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. These forward-looking statements are intended to be identified in this document by the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “goal”, “plan”, “possible”, “potential”. ,” “project”, “target” and similar expressions. Actual results may vary significantly.

Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including availability of credit, access to existing lines of credit, access to commercial paper markets , rating agency actions, inflation rates and their impact on capital spending; the ability of the Company and its subsidiaries to access capital markets and obtain financing on favorable terms as well as inflation rates and currency fluctuations; the ability to obtain rapid and sufficient rate relief to enable the recovery, including through securitization, of items such as capital expenditures, fuel costs, operating costs, transportation costs and expenses postponed; prices and availability of electricity, coal and natural gas; competitive factors, including the extent and timing of the entry of additional competition into the markets served by the Company; the impact on demand for services resulting from cost-competitive technological advances, such as distributed power generation and customer energy efficiency programs; technological developments, market changes and other factors that cause competitive disadvantages and create the potential for impairment of existing assets; factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unexpected production breakdowns, unusual maintenance or repairs; unexpected changes in the costs or availability of fossil fuels, natural gas or coal supply due to increased demand, shortages, transportation problems or other developments; environmental incidents; or the constraints of the electricity transmission network or gas pipeline; the availability and prices of raw materials and equipment for current and future construction projects; the effect of retroactive pricing of transactions in the SPP marketplaces or adjustments to market pricing mechanisms by the SPP; federal or state legislation and regulatory decisions and initiatives that affect the recovery of costs and investments, impact rate structures, or affect the speed and degree of competitive entry into the Company’s markets; environmental laws, safety laws or other regulations that may impact the cost of operations, restrict or change the way the Company’s facilities are operated or result in stranded assets; changes in accounting standards, rules or guidelines; the abandonment of accounting principles for certain types of rate-regulated activities; the cost of protecting assets against terrorism or cyberattacks, or damages due to them, including loss of control of our assets and potential ransoms, and other catastrophic events; the creditworthiness of suppliers, customers and other contracted parties, including large new customers in emerging industries such as cryptocurrency; social attitudes regarding the utility, natural gas and electrical industries; identification of appropriate investment opportunities to enhance shareholder returns and achieve long-term financial goals through business acquisitions and divestitures; rising pension and healthcare costs; the impact of extraordinary external events, such as the current pandemic health event resulting from COVID-19, and their collateral consequences, including prolonged disruption of economic activity in the Company’s markets and operational challenges if significant percentages of key employee groups fall ill and are unable to work for an extended period; potential issues with employee engagement and/or increased employee turnover rates if federal or state authorities impose vaccine or testing mandates related to COVID-19; costs and other effects of legal and administrative proceedings, settlements, investigations, claims and cases; trading conditions in the energy and natural gas midstream sectors, including specifically for Energy Transfer, which may affect the fair value of the Company’s investment in Energy Transfer’s equity securities and the level of distributions that the Company receives from Energy Transfer; the difficulty in making accurate assumptions and projections regarding future distributions associated with the Company’s investment in Energy Transfer’s equity securities, as the Company does not control Energy Transfer; and other risk factors listed in the Company’s reports filed with the Securities and Exchange Commission, including those listed in the Company’s Form 10-K Risk Factors for the fiscal year ended December 31, 2021.

© 2022 OGE Energy Corp. | 2

Building a sustainable business model

Shift in operating paradigm to focus on

Redesign of the customer experience

Concentrated economic development

reliability, resilience and affordability

efforts to drive customer and load growth

© 2022 OGE Energy Corp. | 3

Summary of 2021 financial results






OG&E (Electrical Service)

  • Strong execution allowed us to deliver at the midpoint of the reduced utility guidance range of $1.79 to $1.83 per share1
  • Holding company and other transactions resulted in a loss of $0.04 per share
  • Midstream natural gas operations contributed $1.92 per share
    • Includes $1.32 per share gain on Enable/Energy Transfer merger transaction
  • Consolidated earnings $3.68 per share

1. 2021 Original Utility Tips EPS range from $1.76 to $1.86.

© 2022 OGE Energy Corp. | 4

Achievements 2021

  • 2n/a best safety year ever
    • #1 at SEE in 2021
    • Each of the past 6 years is the best in company history
  • 2022 Escalent Business Customer Champion
  • Continued network modernization investments
  • Planned investments in renewable energies
  • Active regulatory hours in OK & AR
    • Law on securitization adopted; securitization order obtained in Oklahoma
    • 4and formula rate set in Arkansas; formula rate extension requested
    • Oklahoma Filed Rate Review
  • Continuation of economic and commercial development activities

© 2022 OGE Energy Corp. | 5

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OGE Energy Corporation published this content on February 24, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Feb 24, 2022 12:25:21 PM UTC.

Public now 2022

All news about OGE ENERGY CORP.

Analyst recommendations on OGE ENERGY CORP.

Sales 2021 2,872 million

Net income 2021 442M

Net debt 2021 4,793 million

PER 2021 ratio 16.0x
2021 performance 4.36%
Capitalization 7,442 million
7,442 million
EV / Sales 2021 4.26x
EV / Sales 2022 4.36x
# of employees 2,360

Duration :

Period :

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Medium consensus SURPASS
Number of analysts 11
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Average Spread / Target 4.63%

Michael P. Boser