OGE Energy (OGE) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated earnings were $1.09 per diluted share, with electric company earnings at $1.12 per share and a holding company or other operations loss of $0.03 per share, driven by robust demand and customer growth across all sectors.

• Net income for Q3 2024 was $218.7 million, down from $241.9 million in Q3 2023, mainly due to higher depreciation, O&M, interest, and tax expenses, partially offset by load growth and higher revenues.

• Strong weather-normalized energy demand and customer growth contributed to solid results, with broad-based business expansion in datacenter, defense, and manufacturing sectors.

• Exceptional operational response to severe storms restored 86% of impacted customers within 24 hours and over 90% of essential services.

• OG&E implemented an interim rate increase in July 2024, subject to refund, as part of a settlement agreement in its Oklahoma general rate review, pending OCC approval.

Financial highlights

• Q3 2024 consolidated net income was $219 million ($1.09 per diluted share), down from $242 million ($1.20 per share) in Q3 2023; electric company net income was $225 million ($1.12 per share), compared to $246 million ($1.22 per share) last year.

• Q3 2024 operating revenues rose 2.1% year-over-year to $965.4 million; nine-month revenues increased 5.6% to $2,224.8 million.

• Decrease in earnings primarily due to higher depreciation, interest, O&M, and income tax expenses, partially offset by strong load growth.

• Weather-normalized load growth reached 8.4% quarter-over-quarter, with year-to-date growth at 6.8% and customer count up 1.2% year-over-year.

• Weather impact on Q3 2024 EPS was $0.04; cooling degree days were 8% lower than Q3 2023 but 9% above normal.

Outlook and guidance

• Full-year 2024 EPS expected at the top of the $2.06–$2.18 guidance range, assuming regulatory approval.

• Anticipates continued 5%-7% annual EPS growth based on 2024 guidance, with a stable and growing dividend.

• Load growth forecast at the top of the revised 4%-6% range for 2024.

• Assumes approval of uncontested Oklahoma rate review settlement in 2024.

• No need for external equity issuances in the current plan; no fixed-rate maturities until 2027.