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    OGE
    Earnings call· Jun 2026(Q2 FY26)

    OGE ENERGY Q2 FY26 earnings call OGE

    Jul 29, 2026 Source

    Executive summary

    OGE Energy Corp. Q2 FY26 — Strong Earnings and Regulatory Progress Amidst Growing Demand

    OGE Energy reported strong Q2 FY26 earnings, driven by favorable weather and lower depreciation. The company is actively navigating significant load growth, particularly from data centers, through proactive regulatory filings like the Oklahoma large load tariff designed to protect existing customers. Management reaffirmed its full-year earnings guidance, emphasizing ongoing capital investments to expand system capacity and meet increasing demand, while also addressing the financing strategy to maintain credit metrics.

    Highlights

    5

    • Consolidated earnings of $0.56 per share, up from $0.53 in Q2 2025.

    • Electric company net income increased to $0.58 per diluted share from $0.53 in Q2 2025.

    • Reaffirmed 2026 consolidated earnings guidance range of $2.38 to $2.48 per share.

    • Steady customer growth of approximately 1% across the service area.

    • Set a new all-time peak demand of over 6,800 megawatts, exceeding the prior record by 180 megawatts.

    Concerns

    3

    • Two large customers shifted ramp schedules, pushing approximately 200 megawatts of load further into the year.

    • Holding company reported an increased loss of $0.02 per diluted share compared to less than $0.01 in Q2 2025.

    • SPP accreditation for renewables becoming more stringent, potentially biasing towards thermal assets.

    Guidance & targets

    4
    CategoryTargetConfidence
    Consolidated Earnings
    $2.38 to $2.48 per share
    high materiality
    High
    Generation RFP Filings
    Multiple filings
    medium materiality
    High
    Oklahoma Rate Review Filing
    Filing this quarter
    medium materiality
    High
    SPP Transmission NTC
    Expected in the fourth quarter
    high materiality
    Medium

    Operational metrics

    17
    Consolidated Net Income
    $116 millionup from $108 million in Q2 FY25
    Q2 FY26

    Consolidated net income for the second quarter.

    Consolidated EPS
    $0.56up from $0.53 in Q2 FY25
    Q2 FY26

    Consolidated earnings per diluted share for the second quarter.

    Electric Company Net Income
    $120 millionup from $108 million in Q2 FY25
    Q2 FY26

    Net income for the core electric business.

    Electric Company EPS
    $0.58up from $0.53 in Q2 FY25
    Q2 FY26

    Earnings per diluted share for the core electric business.

    Holding Company Net Loss
    $4 millioncompared to less than $1 million loss in Q2 FY25
    Q2 FY26

    Increased loss primarily due to higher interest expense and one-time benefit related to legacy midstream operations in 2025.

    Holding Company EPS Loss
    $0.02compared to less than $0.01 loss in Q2 FY25
    Q2 FY26

    Increased loss per diluted share for the holding company.

    Customer Growth
    1%steady
    Q2 FY26

    Steady customer growth across the service area.

    Peak Demand
    6,800 MWexceeded prior record by 180 MW
    July 2026

    New all-time peak demand set recently in July.

    Generation Capacity Addition
    550 MW
    FY26

    Capacity to be added to the grid in 2026.

    Generation Capacity Addition
    300 MW
    FY27

    Capacity to be added from the Frontier Storage project next year.

    Horseshoe Lake Units Capacity
    450 MW
    Future

    Additional capacity from Horseshoe Lake units.

    Average Annual Capacity Addition
    300 to 400 MW
    Historical

    Historical average addition of capacity per year, which needs to increase to meet growing demand.

    Large Load Tariff - Customer Affordability Charge Benefit
    $25 million to $30 million annually
    Annual

    Proposed charge designed to benefit residential customers.

    Large Load Tariff - Minimum Commitment
    15 years
    Duration

    Minimum commitment required for large load customers under the new tariff.

    Large Load Tariff - Upfront Cost Funding
    100%
    Upfront

    Requirement for large load customers to fund upfront costs.

    Shifted Large Load Capacity
    200 MWshifted further into the year
    FY26

    Portion of ramp schedules shifted for existing large customers.

    Active Large Load Negotiations
    6 or 7
    Current

    Number of active negotiations with potential large load customers.

    Industry KPIs

    7
    MetricValueDetails
    Ffo to debt17%%
    Retail sales growth1%%
    Regulatory rate base growth—
    Rto market structure reviewSPP ITP 2026
    New gas generation builds upgrades550 MWMW
    Contracted large load capacity esas loas—
    Nuclear capacity factor gas forced outage factor—

    Deals & partnerships

    1
    GoogleSpecial contract for serving large load

    Filed on May 1 in Oklahoma, with a procedural schedule and expected resolution before year-end.

    Risks & headwinds

    4
    Timing shift in large customer load ramp schedulesFY26

    Approximately 200 megawatts pushed further into the year

    Mitigation: Customer commitments remain firmly in place; load will come on shortly.

    Increased holding company net lossQ2 FY26

    $4 million loss, up from less than $1 million in Q2 FY25

    Mitigation: Primarily due to higher interest expense and one-time benefit related to legacy midstream operations in 2025.

    More stringent SPP accreditation for renewablesOngoing

    Biases towards gas generation in pending RFPs

    Mitigation: Company focuses on the price of the product, but acknowledges the directional bias.

    Lack of control over SPP Notice to Construct (NTC) award timingQ4 FY26

    Expected in Q4, but not necessarily before earnings call

    Mitigation: Company will announce when received; will then ratify costs, routing, and in-service timeline.

    What to watch in Q3 FY26

    5

    Google Special Contract Resolution

    before year-end
    CurrentFiled on May 1, procedural schedule in place
    TargetResolution before year-end

    Why it matters

    This contract is a key regulatory milestone for serving large loads and provides clarity for future economic development.

    We filed the Google special contract on May 1 in Oklahoma and that filing now has a procedural schedule, and we're pleased to have a defined path forward and expect this matter to move toward resolution before the end of the year.

    Q&A highlights

    7

    Clarification on whether the upcoming Q3 rate review will include CWIP for Horseshoe Lake 13 and 14, or if generation CWIP needs a separate docket.

    The Q3 rate case will cover general distribution additions and normal expansion, not generation capacity. Generation capacity goes through a separate pre-approval process, and Horseshoe Lake 13 and 14 are already captured there.

    “The rate case that we will file this quarter in Oklahoma will be generally distribution additions to our system and normal expansion. It does not include any generation capacity that was in there that's we go through a pre-approval process for those and 13 and 14 is captured in that process.”

    asked by Whitney Mutalemwa · answered by R. Trauschke

    2 min read5 chapters

    Detailed Narrative

    01

    Responding to Growing Demand and Reliability

    OGE Energy's teams demonstrated strong commitment to reliability and customer service by swiftly responding to severe weather events in June and July. The company is actively working to expand system capacity, with plans to add 550 MW to the grid in 2026 from Horseshoe Lake and Tinker projects, and another 300 MW in 2027 from the Frontier Storage project, to meet increasing demand. This proactive approach ensures continued reliable service amidst growing energy needs.

    02

    Proactive Regulatory Strategy for Large Loads

    The company has filed a Google special contract and an Oklahoma large load tariff, both designed to support economic development while protecting existing customers. The tariff includes provisions for 100% upfront cost funding by large loads, a minimum 15-year commitment, and a consumer protection charge. This framework aims to provide $25 million to $30 million annually in benefits for residential customers from a typical 1 GW data center, balancing growth with affordability.

    03

    Regulatory Milestones and Approvals

    Key regulatory milestones are advancing, including a positive proposed order for the Frontier storage project expected to be adopted soon. The Google special contract filing has a procedural schedule, with resolution anticipated before year-end. Additionally, the company is preparing for an Oklahoma rate review this quarter and monitoring for SPP transmission Notices to Construct (NTCs) expected in Q4, all contributing to a clear path forward for investments.

    04

    Capital Plan and Financing Strategy

    OGE Energy is refining its capital plan, with initiatives advancing to support increasing customer demand and strengthen its long-term growth profile. The company has completed all planned financing activities for 2026 and targets maintaining an FFO to debt ratio of approximately 17% over the planning horizon. Management emphasized utilizing various tools, including CWIP financing for large transmission projects, to meet this commitment and support future capital needs.

    05

    Load Growth and Customer Commitments

    The service area continues to experience strong demand and steady customer growth of approximately 1%. Despite a temporary shift in ramp schedules for two large customers, pushing about 200 MW further into the year, customer commitments remain firm. The company recently set a new all-time peak demand of over 6,800 MW, exceeding the prior record by 180 MW, underscoring the robust growth in its service territory.

    AI-generated summary of the company’s earnings call. Not investment advice.