Q4 2023 OGE Energy Corp Earnings Call

February 21, 2024

Okay.

Operator: Good day, and thank you for standing by. Welcome to the OGE Energy Corp. 2023 Fourth Quarter Earnings and Business Update Call. At this time, all participants are in a listen-only mode.

Speaker Change: Good day and thank you for standing by welcome to the O G Energy Corp, 2023 fourth quarter earnings and business update call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Jason Bailey, Director of Investor Relations, please go ahead. Thank you, DeeDee, and good morning, everyone, and welcome to OGE Energy Corp.'s fourth quarter 2023 Earnings and Business Call. With me today, I have Stan Trauschke, our Chairman, President, and CEO, and Brian Buckler, our CFO. In terms of the call today, we will first hear from Tom, followed by an explanation from Brian of the financial results.

Speaker Change: To ask a question during the session you will need to press star one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one again please.

Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today Jason.

Speaker Change: Jason Bailey director of Investor Relations. Please go ahead.

Thank you D D and good morning, everyone and welcome to O D. D O G Energy Corp, fourth quarter, 2023, earning and business call update.

Jason Bailey: With me today, I have <unk>, our chairman, President and CEO and Brian Butler, our CFO.

Jason Bailey: In terms of the call today, we will first hear from Sean followed by an explanation from Brian of financial results and finally as always we will answer your questions.

Jason Bailey: And finally, as always, we will answer your questions. I'd like to remind you that this conference is being webcast and you may follow along at oge.com. In addition, the conference call and accompanying slides will be archived following the call on that same website. Before we begin the presentation, I'd like to direct your attention to the Safe Harbor Statement regarding forward-looking statements. This is an SEC requirement for financial statements.

Jason Bailey: I'd like to remind you. This conference is being webcast and you may follow along at <unk> Dot Com. In addition, the conference call and accompanying slides will be archived following the call on that same website.

Speaker Change: Before we begin the presentation I'd like to direct your attention to the Safe Harbor statement regarding forward looking statements.

Speaker Change: This is an SEC requirement for financial statements and simply states that we cannot guarantee forward looking financial results, but this is our best estimate today.

Jason Bailey: It simply states that we cannot guarantee forward-looking financial results, but this is our best estimate today. I will now turn the call over to Shawn for his opening remarks. Thank you, Jason. Good morning, everyone. Thank you for joining us today. It's certainly great to be with you.

Speaker Change: I will now turn the call over to Sean for his opening remarks, Sean. Thank you Jason Good morning, everyone. Thank you for joining US today, it's certainly great to be with you.

Jason Bailey: I'm excited about our message to you this morning. As our results for 2023 were top of guidance, and we are updating our five-year plan, including a consolidated earnings growth rate based on the strong fundamentals of our business. It's truly a great time to be here at the company.

Sean: I'm excited about our message to you. This morning as our results for 2023 were top of guidance and we are updating our five year plan, including a consolidated earnings growth rate based on the strong fundamentals of our business. It is truly a great time to be here at the company.

Shawn: Before we get into the plan, I do want to take a moment to talk about our people here at Big Orange. In 2023, the team delivered results for our customers, for our communities, and for shareholders by providing reliable energy at some of the lowest rates in the nation every day. Once again, our safety results were very strong, with the last eight years being the safest in our 121-year history.

Sean: Before we get into the plan I do want to take a moment to talk about our people here are big Orange in 2023, the team delivered results for our customers our communities and shareholders by providing reliable energy at some of the lowest rates in the nation every day.

Sean: Once again, our safety results were very strong with the last eight years being the safest in our 121 year history, even as we continue to face some of the most extreme weather in the country like winter storms, Jerry and Heather in January where our plants ran generating electricity to the grid to ensure our customers could continue to.

Shawn: Even as we continue to face some of the most extreme weather in the country, like winter storms Jerry and Heather in January, where our plants ran, generating electricity to the grid to ensure our customers could continue to live their lives and run their businesses. Our team achieved recognition for our culture in 2023. I mentioned last quarter that we'd been named the number one and state employer in Oklahoma by Forbes magazine. And later in the year, we were also named a top workplace in Oklahoma following the feedback our employees gave in our annual workplace survey. And just last week, Forbes named OGE Energy the 16th best mid-sized employer in the country, achieving the highest rank in our sector and the highest ranking of any company in Oklahoma. These results are not happenstance.

Sean: Live their lives and run their businesses.

Sean: Our team achieved recognition for our culture in 2023, I mentioned last quarter that we've been named the number one in state employer in Oklahoma by Forbes magazine and later in the year. We were also named a top workplace in Oklahoma. Following the feedback our employees gave in our annual workplace survey.

Sean: Just last week Forbes named <unk> energy, the 16th best mid sized employer in the country.

Sean: <unk> the highest rank in our sector and the highest ranking of any company in Oklahoma.

Sean: These results are not happenstance.

Sean: Come from a dedicated commitment to fostering a culture grounded in our values and our beliefs and operationalized with a focus to deliver safe reliable and resilient electricity combined with outstanding customer experiences every single day.

Sean: I am so proud of everyone here at the company and it's because of them that were discussing great financial results.

Speaker Change: This morning, we reported consolidated earnings at the top end of our guidance of $2 seven per share for the year.

Speaker Change: <unk> $2 12 per share for <unk>, and our holding company loss of <unk> <unk> per share.

Speaker Change: Our sustainable business model provides opportunities to drive load growth of <unk>.

Speaker Change: Simultaneously investing in the grid and generation for many years to come in a way that is mindful of ensuring a smooth customer impact and delivering consistent financial returns.

Speaker Change: Last year my message to you was we've got this the plane. We introduced to you. This morning as an extension of that message and is consistent with the growth we've delivered in the past over the next five years, we expect to grow consolidated earnings per share at 5% to 7%.

Shawn: Our sustainable business model provides opportunities to drive low growth while simultaneously investing in the grid and generation for many years to come in a way that is mindful of ensuring a smooth customer impact and delivering consistent financial return. Last year, my message to you was, "We've got this." The plan we introduced to you this morning is an extension of that message and is consistent with the growth we've delivered in the past. Over the next five years, we expect to grow consolidated earnings per share by 5 to 7 percent. Looking back at the 10-year period before we exited our midstream natural gas segment, we delivered over 6% consolidated earnings per share growth.

Speaker Change: Looking back at the 10 year period before we exited our midstream natural gas segment, we delivered over 6% of consolidated earnings per share growth. The difference now is that we've simplified our business mix and remove the volatility that was associated with that business segment, our plan going forward, which Brian will detail is based on our <unk>.

Brian Russo: Play electric model with premium fundamentals, including a strong financial base and credit metrics excellent load and customer growth and a lower risk investment plan focused on delivering the safe reliable resilient electric service that our customers expect.

Speaker Change: Today I want to talk to you a bit more about three key aspects of our work that drive our results reliability.

Speaker Change: <unk> and affordability.

Speaker Change: Our grid and whether hardening investments continue to deliver great results for our customers our grid reliability investments benefited customers in 2023 saving over 320 minutes of interruption for the average impact of customer and from a safety perspective automated restorations saved our customers more than seven five minutes.

Shawn: The difference now is that we've simplified our business mix and removed the volatility that was associated with that business segment. Our plan going forward, which Brian will detail, is based on a pure play electric model with premium fundamentals, including a strong financial base and credit metrics, excellent load and customer growth, and a lower risk investment plan focused on delivering the safe, reliable, resilient electric service that our customers expect. Today, I want to talk to you a bit more about three key aspects of our work that drive our results. Reliability, growth, and affordability.

Speaker Change: The savings were $6 2 million customer minutes of interruptions.

Speaker Change: We also built or upgraded 21 substations to serve our growing service area and we will continue making these types of investments in the grid that directly benefit our customers.

Speaker Change: This foundation powers, our growing communities and economic development engine that has delivered 11 new projects in our service area that are projected to create thousands of jobs and garnered billions of dollars in additional investment.

Speaker Change: This type of growth is not by accident, we set the stage for these results more than five years ago, when we began investment and growing our local economy in cities and towns all across our service area.

Speaker Change: Our communities maintained strong unemployment rates and continue to attract expanding and new businesses that are low rates helped secure.

Speaker Change: For example, just last month start us power announced its plans to build a new battery grade lithium refinery and Oklahoma, bringing hundreds of jobs to the community as well as community infrastructure development.

Shawn: Our grid and weather hardening investments continue to deliver great results for our customers. Our grid reliability investments benefited customers in 2023, saving over 320 minutes of interruption for the average impacted customer. And from a SADI perspective, automated restorations saved our customers more than seven and a half minutes of SADI, or 6.2 million customer minutes of interruption.

Speaker Change: Oklahoma Central location access to multiple transportation routes highly skilled workforce and low cost energy were all reasons noted for the site selection and we look forward to serving start us as they get up and running.

Speaker Change: Our load forecast for 2024 continues to keep pace with the outstanding growth we've experienced over the last three years and our long term load forecast remains as strong as our service area continues to grow.

Speaker Change: Turning to the regulatory front constructive regulatory outcomes enable us to support growth serve customers and key results for our shareholders. We released the draft RFP that will lead to Rfps later in the year for additional generation to meet the needs of our growing service area, we will be disciplined with regard to customer impact.

Speaker Change: And we expect the combination of gas solar along with energy efficiency in DSM programs to meet the identified needs.

Speaker Change: In Oklahoma, we have filed a rate review and expect new rates to be in place by July one and.

Speaker Change: In Arkansas, we have achieved a settlement under the Formula rate plan for one 4% increase in rates effective April one.

Speaker Change: Today's macro environment continues to macroeconomic environment continues to create pressure on our customers and we remain committed to affordability and keeping bills low as I mentioned in our last call. We reduced the average fuel charge by $21 per month in November which had an immediate impact on customer.

Shawn: We set the stage for these results more than five years ago when we began investing and growing the local economy in cities and towns all across our service area. Communities maintain strong unemployment rates and continue to attract expanding and new businesses that our low rates help secure. For example, just last month, Stardust Power announced its plans to build a new battery-grade lithium refinery in Oklahoma, bringing hundreds of jobs to the community as well as community infrastructure development. Oklahoma's central location, access to multiple transportation routes, highly skilled workforce, and low-cost energy were all reasons noted for the site selection, and we look forward to serving Stardust as they get up and running.

Speaker Change: <unk> with.

Speaker Change: <unk> doubled down on connecting customers to programs and services to help them manage their energy use and monthly bill gross.

Speaker Change: Enrolling nearly 20% of our customers and new to them programs in 2023 <unk>.

Including energy efficiency and home Weatherization as well as connecting our customers to billing assistance when they need.

Speaker Change: Additionally, our team continues to innovate energy efficiency programs that will help customers reduce their bill and increased reliability, including making low cost repairs to qualified customer homes for weatherization piloting in solar and battery storage technology at schools and piloting managed flexible low technology as.

Speaker Change: We celebrate the impact of those programs I want to close with a few important thoughts.

Shawn: Our load forecast for 2024 continues to keep pace with the outstanding growth we've experienced over the last three years, and our long-term load forecast remains as strong as our service area continues to grow. Constructive regulatory outcomes enable us to support growth, serve customers, and achieve results for our shareholders. We released the draft IRP that will lead to RFPs later in the year for additional generation to meet the needs of our growing service area. We'll be disciplined with regard to customer impact and expect a combination of gas and solar, along with energy efficiency and DSM programs to meet the identified needs. In Oklahoma, we filed a rate review and expect new rates to be in place by July 1st.

Speaker Change: We are committed to growth for our communities for our customers and to financial growth for our shareholders and our employees.

Speaker Change: <unk> is strong and I am bullish on our future.

Speaker Change: We're leveraging the economic development engine, we built that drives load growth are.

Speaker Change: Our excellent execution is driven by fully engaged employees, who are determined to reach our northstar delivering safe reliable and affordable electricity to our customers.

Speaker Change: We operate in constructive regulatory jurisdictions, and we've created a competitive credible lower risk financial plan backed by a strong balance sheet.

Speaker Change: All of which leads to a long term plan, where we address system growth in customer needs, which which are at the center of our decisions.

Speaker Change: Next week <unk> turned to 122 years old.

Speaker Change: And as we celebrate that milestone we look ahead to the future where our deep diverse set of investment opportunities allows us to meet customer expectations and achieve investor commitments.

Shawn: In Arkansas, we've achieved a settlement under the Formula Rate Plan for a 1.4% increase in rates effective April 1st. Today's macro-economic environment continues to create pressure on our customers, and we remain committed to affordability and keeping bills low. As I mentioned in our last call, we reduced the average fuel charge by $21 per month in November, which had an immediate impact on customer bills.

Speaker Change: Keeping customer bill impact in mind, we will invest alongside growth in our communities to keep the momentum going for many many years to come.

Speaker Change: Thank you I'll turn it over to Bryan Bryan.

Bryan: Thank you Sean Thank you, Jason and good morning, everyone. I am pleased to review our 2023 results with you and provide our 2024 outlook as well as details on our long term consolidated EPS guidance.

Bryan: Let's start on slide six and discuss full year 2023 results on a consolidated basis 2023, net income was $417 million or $2 <unk> per diluted share <unk>.

Bryan: Compared to $666 million or $3 32 per share in 2022.

Shawn: We've doubled down on connecting customers to programs and services to help them manage their energy use and monthly bills. We will enroll nearly 20% of our customers in new-to-them programs in 2023, including energy efficiency and home weatherization, as well as connecting our customers to billing assistance when they need it. Additionally, our team continues to innovate energy efficiency programs that will help customers reduce their bill and increase reliability, including making low-cost repairs to qualify customer homes for weatherization, piloting solar and battery storage technology at schools, and piloting managed flexible load technology. As we celebrate the impact of those programs, I want to close with a few important thoughts. We're committed to growth for our communities, for our customers, and to financial growth for our shareholders and our employees. The case for OGE is strong, and I'm bullish on our future. We're leveraging the economic development engine we built that drives load growth. Our excellent execution is driven by fully engaged employees who are determined to reach our North Star of delivering safe, reliable, and affordable electricity to our customers.

Bryan: Earnings for last year included one point.

Bryan: Included $1 16 per share from natural gas midstream operations, which we fully exited in 2022 through to sell of our energy transfer units.

Bryan: We had a great year of execution <unk> Energy's 2023 consolidated earnings reflect results at the high end of our original and revised guidance and our core business. The electric company exceeded expectations, achieving net income of $426 million or $2 12 per diluted share compared to 440 million.

Bryan: Our $2 19 per share in 2022.

Bryan: The year over year decrease in electric company net income was primarily due to milder weather compared to the prior year as.

Bryan: As you May recall, Oklahoma, Arkansas experienced an exceptionally hot summer in 2022.

Bryan: Aldo rather in 2023 was partially offset by the benefits of strong load growth of two 7% during the year. Other drivers of current year results compared to the prior year were depreciation and interest expense related to our capital investments increased operation and maintenance expense higher revenues from recovery of capital investments.

Bryan: And allowance for equity funds used during construction related to our 2023 capital investments.

Bryan: Other operations, including our holding company reported a loss of $10 million or <unk> <unk> per diluted share in 2023 compared to a loss of $5 million or <unk> <unk> per share in 2022. The increase in net loss was primarily due to higher interest expense related to increased short term debt. In Q4 results included an approximate <unk> <unk> tax benefit related to.

Bryan: Our former natural gas midstream business.

Bryan: As I mentioned 2023 weather normalized load growth came in at two 7% led by the commercial sector, which grew electricity usage by remarkable 11%.

Shawn: We operate and construct the regulatory jurisdictions, and we've created a competitive, credible, lower-risk financial plan backed by a strong balance. All of which leads to a long-term plan where we address system growth and customer needs, which are at the center of our decision. Next week, OGE turns 122 years old.

Bryan: We have now experienced back to back to back annual total retail load growth of two 4% or greater.

As you will see in a moment, we expect 2024 load to continue this enviable trend, which highlights the economic vibrancy of Oklahoma, and Arkansas enhanced fire of low rates.

Bryan: Please see the appendix for more information regarding fourth quarter 2023 results.

Bryan: Turning to slide seven for 2024 on a consolidated basis, we are forecasting earnings of $2 12 per share with a range of 260 to $2 18 per share.

Shawn: And as we celebrate that milestone, we look ahead to the future, where our deep, diverse set of investment opportunities allows us to meet customer expectations and achieve investor commitment. Keeping the customer bill impact in mind, we will invest alongside growth in our communities to keep the momentum going for many, many years to come. Thank you. I'll turn it over to Brian.

Bryan: This represents a consolidated growth rate of 6% from our original 2023 guidance of $2 per share.

Bryan: And as I'll discuss in a moment, we expect consolidated EPS to continue to grow 5% to 7% throughout our five year forecast period.

Bryan: 2024, consolidated EPS expectations incorporate electric company earnings of $2 22 per share.

Bryan: The electric company has consistently delivered results in line with our commitments. It's earnings growth profile has the foundation of strong load growth in 2024 that look similar to the past three years as.

Brian: Thank you, Sean. Thank you, Jason. And good morning, everyone.

Brian: I am pleased to review our 2023 results with you and provide our 2024 outlook, as well as details on our long-term consolidated EPS guidance. Let's start on slide six and discuss full year 2023 results. On a consolidated basis, 2023 net income was $417 million, or $2.07 per diluted share, compared to $666 million, or $3.32 per share, in 2022.

As well as an investment plan that is focused on our ability to serve our growing customer base with a reliable resilient and safe power system.

Bryan: At the holding company in 2024, we are forecasting a loss of <unk> 10 per share consistent with expectations shared with you on prior calls.

Bryan: Let's now move to slide eight as Sean mentioned today, we are introducing a long term and annual consolidated EPS growth rate guidance of 5% to 7% based off of our 2024 consolidated earnings midpoint estimate of $2 12 per share.

Bryan: We believe O Genie energy has one of the most credible five year financial plans in the entire industry. It starts with the service area with favorable business prospects.

Bryan: In fact, we project load growth of 3% to 5% in 2024, and expect 2025 to be well above our historic 1% load growth with emerging trends that indicate continued strength in years beyond 2025.

Brian: Earnings for last year included $1.16 per share for natural gas midstream operations, which we fully exited in 2022 through the sale of our energy transfer units. We had a great year of execution. OGE Energy's 2023 consolidated earnings reflect results at the high end of our original and revised guidance. In our core business, the electric company exceeded expectations. Achieving net income of $426 million, or $2.12 per diluted share, compared to $440 million, or $2.19 per share, in 2022. The year-over-year decrease in electric company net income was primarily due to milder weather compared to the prior year.

Bryan: Our balance sheet is one of the strongest in the industry supporting the 6 billion five year capital investments you see in today's materials.

Bryan: Consolidated <unk> to debt is forecasted to remain strong throughout the five year forecast period with no big depths and instead of consistent performance of approximately 17% each year.

Bryan: We continue to target a dividend payout ratio of 65% to 70% and expect earnings per share growth to exceed dividend growth over the five year period.

In short we believe our five year plan is tremendous and it will be implemented by our proven team with a track record of operational excellence.

Bryan: Now, let me take a moment to discuss our future investment plans are growing operations will require a substantial level of infrastructure to support the reliability of our transmission and distribution system, our future plans will be flexible and annual level of capital spending in our T&D system could vary depending on the amount and timing of potential new.

Brian: As you may recall, Oklahoma and Arkansas experienced an exceptionally hot summer in 2022. However, milder weather in 2023 was partially offset by the benefits of strong load growth of 2.7% during the year. Other drivers of current year results compared to the prior year were depreciation and interest expense related to our capital investments, increased operation and maintenance expense, higher revenues from recovery of capital investments, and allowance for equity funds used during construction related to our 2023 capital investment. Other operations, including our honing company, reported a loss of $10 million or $0.05 per diluted share in 2023, compared to a loss of $5 million or $0.03 per share in 20 The increase in net loss is primarily due to higher interest expense related to increased short-term debt, and Q4 results included an approximate $0.02 tax benefit related to our former natural gas midstream business.

Bryan: <unk> capacity investments.

Bryan: Our deployed capital will address our customers' requirements for safe and reliable power system, while maintaining our competitive advantage of low rates and delivering on our commitments to shareholders and a lower risk fast fashion.

Bryan: In essence this is all a continuation of execution of our sustainable business model.

Bryan: Before I hand, the call back to Sean Let me summarize today's message. Our team has once again delivered exceptional results in 2023 at the high end of our original and increased EPS guidance range.

Sean: <unk> ahead, we have developed an operational and financial plan spending five years aiming to bring substantial value to customers and <unk> power system.

Sean: Supporting economic development in our communities and providing a compelling investment thesis for our shareholders. Our future outlook is based on this lower risk investment strategy backed by exceptional load growth, a solid financial position constructive regulatory jurisdictions and consistent execution from our employees.

Speaker Change: With that we will open the line for your questions.

Speaker Change: Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Speaker Change: And our first question comes from Shar <unk> of Guggenheim Partners.

Shar: Hey, guys good morning.

Shar: Hey, good morning, Shar. Good morning, good morning, Congrats Sean on the on the results.

Speaker Change: Thank you and congrats on the pronunciation of your name they did down.

Brian: As I mentioned, 2023 weather-normalized load growth came in at 2.7%, led by the commercial sector, which grew electricity usage by a remarkable 11%. We have now experienced back-to-back annual total retail load growth at 2.4% or greater. As you will see in a moment, we expect 2024 load to continue this enviable trend, which highlights the economic vibrancy of Oklahoma and Arkansas enhanced by our low rate. Please see the appendix for more information regarding fourth quarter 2023 results.

Speaker Change: It's taken years, but it's getting there.

Speaker Change: I'm still working on mine.

Speaker Change: Yeah.

Speaker Change: John maybe just starting off on the recently filed ERP update Theres, obviously over a gigawatt capacity.

Speaker Change: The five year timeframe, it's not had plan I guess, how quickly would you look to update that portion of the capex needs. After the IRB. So what's the cadence of updates and that incremental spending kind of crowd out some of the base spending as you manage customer rates. Thanks.

Speaker Change: Yes, I think Thats, a great question and so we will handle.

Speaker Change: This process just like we did with the last one and so what we'll do is we'll finalize that RFP will go through the RFP process, where we go through an extensive review there is a lot of stakeholder discussions we follow all of the Commission rules.

Brian: Turning to slide 7, for 2024 on a consolidated basis, we are forecasting earnings of $2.12 per share with a range of $2.06 to $2.18 per share. This represents a consolidated growth rate of 6% from our original 2023 guidance of $2 per share. And as I'll discuss in a moment, we expect Consolidated EPS to continue to grow 5-7% throughout our 5-year forecast period. 2024 Consolidated EPS Estimates Incorporate Electric Company Earnings of $2.22 per share.

Speaker Change: And then we will negotiate some agreements.

Speaker Change: We will file that at the commissions and once we get approval then we will load layer that into.

Speaker Change: Our forecast.

Speaker Change: Couple of points about that I think your point, there with that crowd out.

Speaker Change: I'd, probably use a different word than crowd, but what I would say to that shar is that we have a lot of flexibility around our investments and we can move some things around so yes, we will be very flexible and move some things around them really smooth that impact out to customers as much as we can.

Speaker Change: And then I've said repeatedly.

Speaker Change: Our preference our very strong preferences.

Speaker Change: To really smooth these generation additions out over a number of years.

Speaker Change: So.

Speaker Change: Not to create a situation, where we have a very large asset going into service.

Speaker Change: Over a couple of years.

Speaker Change: Does that help perfect, yes, totally and then just lastly.

Speaker Change: Just a balance sheet question I mean, obviously there is incremental spending you're one of the key things on the call today right as youre getting to that 17% <unk> to debt metric would you look at further equity support in line with the Opco authorized cap structure of roughly 50, 50 or something different or not at all.

Brian: The electric company has consistently delivered results in line with our commitment. Its earnings growth profile has the foundation of strong load growth in 2024 that looks similar to the past three years, as well as an investment plan that is focused on our ability to serve our growing customer base with a reliable, resilient, and safe power system. At The Holding Company in 2024, we are forecasting a loss of $0.10 per share, consistent with the expectations I shared with you on prior calls. Let's now move to slide eight.

Speaker Change: Actually so.

Speaker Change: Yes, thanks for that and.

Speaker Change: What I would say Shar as I think Brian was very clear.

Speaker Change: Theres really no equity needs in our plan I think what I would offer for you though is that we're managing this business for the long term and.

Speaker Change: When when we.

Speaker Change: Sure.

Speaker Change: We have the opportunity with our investments in our growth down the road and we need to issue the equity will issuance.

Speaker Change: Got it.

Speaker Change: Okay.

Speaker Change: Okay. Thanks, Chuck I appreciate it guys. Thank you and then it's good to see Brian working very hard for you. Thanks guys.

Brian: As Sean mentioned, today we are introducing a long-term and annual consolidated EPS growth rate guidance of five to 7% based off of our 2024 consolidated earnings midpoint estimate of $2.12 per share. We believe OGE Energy has one of the most credible five-year financial plans in the entire industry because it starts with a service area with favorable business prospects. In fact, we project load growth of 3-5% in 2024 and expect 2025 to be well above our historic 1% load growth, with emerging trends that indicate continued strength in years beyond 2025. Our balance sheet is one of the strongest in the industry, supporting the $6 billion, five-year capital investments you see in today's materials. Consolidated FFO data is forecasted to remain strong throughout the five-year forecast period with no big dips and instead a consistent performance of approximately 17% each year. We continue to target a dividend payout ratio of 65 to 70 percent and expect earnings per share growth to exceed dividend growth over the five-year period.

Speaker Change: Hi, Thanks have a good day bye.

Speaker Change: Thank you one moment for the next question.

Speaker Change: And our next question comes from Nicholas Campanella of Barclays.

Nicholas Campanella: Hey, good morning, everyone. Thanks for taking the question.

Nicholas Campanella: Hi, Martin.

Nicholas Campanella: So yes, thanks for the increase in the Capex plan and all the details there I guess just simplistically what is rate base growth on this new plan as you see it.

Nicholas Campanella: Brian you want to cover that one sure sure good morning, Nick and <unk>.

Brian: Appendix, we've given our best current estimate of our five year capital expenditures.

Brian: We've also provided our starting rate base number as filed in our recent rate case filing as well as in annual depreciation expense trend line during the five years.

Brian: So maybe I'll punt to Jason maybe after the call to help with kind of the annual.

Jason Bailey: Rate base number across the five year plan, but from a five year CAGR perspective, it's roughly seven 5%.

Jason Bailey: Seven 5%.

Jason Bailey: That's helpful. Okay.

Jason Bailey: And then I guess just Holdco was 523, you have another <unk> <unk> drag in 'twenty four from probably just new debt issuances, just how do you kind of see your holdco drag progressing through the plan here does it remain consistent at that 10 or does it does it grow through 'twenty five and beyond.

Jason Bailey: Yeah, Hey, Nick it's Brian again.

Brian: As I've spoken to the last few quarters.

Brian: In short, we believe our five-year plan is tremendous, and it will be implemented by a proven team with a track record of operational excellence. Now, let me take a moment to discuss our future investment plan. Our growing operations will require a substantial level of infrastructure to support the reliability of our transmission and distribution systems. Our future plans will be flexible, and the annual level of capital spending in our T&D system could vary depending on the amount and timing of potential new generation capacity investments.

Brian: The utility holding company are lining up very well for 2024 and beyond.

Brian: You've heard us speak to the many <unk> at utility we spoke about a item today, namely the very strong load growth in <unk>.

Brian: A host of incremental infrastructure investment needs and so we're expecting utility to grow very meaningfully during the five year period and the holding company really is there to help to finance the business as we go along the way.

Brian: So you have the capital plan numbers in.

Brian: Today, we are providing this consolidated view of <unk> Energy Corp.

Brian: We have a lot of confidence in achieving that 5% to 7% consolidated EPS growth rate throughout the five year period, Nick So we're.

Brian: We're looking at it as a consolidated view.

Nick: Certainly you will see the holding company tick up a little bit each year.

Brian: Our deployed capital will address our customers' requirements for a safe and reliable power system while maintaining our competitive advantage of low rates and delivering on our commitments to shareholders in a lower-risk fashion. In essence, this is all a continuation of the execution of our sustainable business model. Before I hand the call back to Sean, let me summarize today's message. Our team has once again delivered exceptional results in 2023 at the high end of our original and increased EPS guidance round. Looking ahead, we have developed an operational and financial plan for five years aiming to bring substantial value to customers and OG&E's power system, supporting economic development in our communities, and providing a compelling investment thesis for our shareholders.

Nick: But in total when you look at the whole package, we feel very.

Nick: Confident in strongly about our ability to deliver that 5% to 7% consolidated CAGR and an annual growth rate.

Speaker Change: Alright, Hey, I appreciate the time thanks.

Speaker Change: Thank you Nick Thank you one moment for our next question.

Speaker Change: And our next question comes from <unk> Chopra of Evercore ISI.

Deepak Chopra: Hey, good morning team and I are happy.

Raj Chopra: Thanks, Sean.

Raj Chopra: Morning.

Raj Chopra: Happy.

Deepak Chopra: 122nd further in advance.

Speaker Change: Thank you. Thank you are there big day.

Speaker Change: Hey.

Speaker Change: Maybe can you help US bridge, obviously, a very steep increase in capital plan and it's nice to see low growth is supporting a lot of that but just can you help us bridge, what big projects Big generation projects are in the plan now obviously I think Horseshoe Lake is is in the plan now, but just any.

Speaker Change: Big projects that you can call out, which helps us bridge going from 475% to 6 billion. Please.

Operator: Our future outlook is based on this lower risk investment strategy backed by exceptional load growth, a solid financial position, constructive regulatory jurisdictions, and consistent executions from our employees. With that, we will open the line for your questions. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker Change: Yet really horseshoe Lake is the single Big project in the five year capital plan.

Speaker Change: Really what is driving a lot of that is load growth.

Speaker Change: We are investing a lot in connecting new customers and building infrastructure to support them, all the while improving the reliability and resiliency of our assets but.

Speaker Change: Other than horseshoe like Theres, not a a big project in there thats really driving that.

Speaker Change: Got it excellent okay.

Speaker Change: What I was expecting I just wanted to check okay. That's perfect and then maybe just any updates on the Oklahoma rate case here any feedback or initial feedback from stakeholders, our discussions with regulators and.

Shahriar Pourreza: Please stand by while we compile the Q&A roster. And our first question comes from Shahriar Pourreza of Guggenheim Partners. Hey guys, good morning. Hey, good morning, Shahriar.

Speaker Change: And others that you can share with us.

Speaker Change: Not at this time I mean, it's still early in the process and.

Speaker Change: Testimony Hasnt been filed for all the parties, yet and so we'll go through that in.

Shahriar Pourreza: Good morning. Good morning. Congratulations, Sean, on the results. Oh, well, thank you. And congrats on the pronunciation of your name. They did outstanding. It's taking years, but it's getting there. I'm still working on mine.

Speaker Change: And we'll get this resolved in <unk>.

Speaker Change: Continue executing on our business.

Speaker Change: Okay perfect I appreciate that good luck guys. Thanks.

Speaker Change: Thanks for.

Speaker Change: The character Jess.

Speaker Change: One moment for our next question.

Speaker Change: Yes.

Speaker Change: And our next question comes from Julien Dumoulin Smith of Bank of America.

Speaker Change: Yes.

Shawn: There you go. Sean, maybe just starting off on the recently filed IRP update, there's obviously over gigawatt capacity that's within the five-year timeframe. It's not in the plan. I guess, how quickly would you look to update that portion of the CAPEX needs after the IRP? So what's the cadence of updates?

Speaker Change: Hey, good morning, Jim very nicely done on holding the line on that five to seven so kudos to the whole team there on that front.

Speaker Change: I appreciate it.

Speaker Change: Thanks, Julie good morning, and good to hear from you.

Speaker Change: Yeah, absolutely guys alright.

Speaker Change: Just let me kick it off on this front you talked about being open to issuing equity you obviously have a variety of further incremental generation projects potentially coming into the picture maybe over the next year. So you can define that.

Shawn: And could that incremental spending kind of crowd out some of the base spending as you manage customer rates? Thank you. Yeah, I think that's a great question. And we'll handle this process just like we did with the last one. And so what we'll do is we'll finalize that IRP, and we'll go through the RFP process where we go through an extensive review. There will be a lot of stakeholder discussions. We will follow all of the commission rules.

Speaker Change: How do you think about like what the moderator Governor is when it comes to raise net capex, you've kind of talked about maybe not call. It crowding out, but then the element of like sort of trying to tailor our program Thats palatable customers in parallel to your balance sheet is there some more specific metrics you'd like to offer I mean is there some.

Speaker Change: Kind of SFO metric or inflationary metric or how do you think about box net and if you will a little bit more sorry to start to re ask it a little differently.

Speaker Change: Yes, great question and I think all of those points you raised R. R.

Shawn: And then we'll negotiate some agreements. And we'll file that at the commissions. And once we get approval, then we'll layer that into our forecast. A couple points about that.

Speaker Change: Our important points for us to consider I think the key.

Speaker Change: Credit metrics in the <unk> to debt, that's very important to us.

Speaker Change: We're going to manage our balance sheet that way.

Speaker Change: As we think about.

Shawn: I think your point there with that Crowdell. I'd probably use a different word than crowd, but what I would say to that, Shahriar, is that we have a lot of flexibility around our investments, and we can move some things around. So, yes, we will be very flexible and move some things around and really smooth that impact out to customers as much as we can. And then, I've said repeatedly, our preference, our very strong preference is to really smooth these generation additions out over a number of years so as not to create a situation where we have a very large asset going into service over a couple of years. Does that help?

Speaker Change: The customer impact.

Speaker Change: Inflation that is a key indicator that we would look at but I think more importantly to that is we really forecast this load growth to continue for many many years.

Speaker Change: And we play a big role in it.

Speaker Change: Facilitating that continuation of that growth and so.

Speaker Change: So what we wanted to do is make sure that.

Speaker Change: Our service area does not seen any large increases in rates, thereby mitigating or slowing down that growth.

Speaker Change: That help.

Speaker Change: No fair enough.

Speaker Change: And then if I can follow up a little bit on some of the specifics there.

Speaker Change: From an authorized equity ratio perspective to the extent to which that would deviate here and the rate case could that drive.

Shawn: Perfect. Yeah, totally. And then just lastly, just to balance your question, I mean, obviously, incremental spending is one of the key things on the call today, right? As you're getting to that 17% FFO to debt metric, would you look at further equity support in line with the OPCO authorized cap structure of roughly 50-50 or something different or not at all?

Equity needs here again, I know that there is kind of a tilde, 17% here.

Speaker Change: Yes Julian.

Speaker Change: Julien just to be perfectly clear, we have no needs and no plans to issue equity over this five year horizon.

Speaker Change: Excellent alright.

Speaker Change: It's not an.

Speaker Change: Different parameters.

Speaker Change: Of equity ratio Alright, wonderful and then just moving on if I can just to pivot.

Speaker Change: <unk> at this point are familiar I mean, given the protracted nature of process last year, I mean wouldn't it be appropriate to think about pursuing settlement.

Shawn: Yeah, thanks for that, and what I would say, Shahriar, is I think Brian was very clear. You know, there's really no equity needs in our plan.

Speaker Change: In the right time and place and as much as that could help.

Shawn: I think what I would offer for you, though, is that, you know, we're managing this business for the long term. And when we have the opportunity with our investments and our growth down the road and we need to issue the equity, we'll issue it. Got it. Got it.

Speaker Change: Expedite what is otherwise a busy schedule here this year sure sure.

We pursue those and executed those settlements in the past and we did that during our Horseshoe Lake proceedings, and we'd hope to do that again this time.

Speaker Change: Alright, wonderful excellent and sorry to clarify this one more time, 17% during the period here.

Shawn: Perfect, I appreciate it. Okay. Thanks, Shahriar. Yeah, I appreciate it, guys. Thank you. And it's good to see Brian working very hard for you. Thanks, guys. Yeah, he's working hard.

Speaker Change: In terms of.

Speaker Change: I've seen that the cadence to that 7% 17 through the whole carrier, it's not necessarily feeding at the end of that period or what have you right yes.

Speaker Change: Brian I'll just clarify that.

Speaker Change: Brian was very clear to say no dips.

Shahriar Pourreza: Thanks, Shahriar. Have a good day, buddy. Thank you. One moment for the next question. And our next question comes from Nicholas Campanella of Barclays. Hey, good morning, everyone.

Speaker Change: Exactly.

Speaker Change: Excellent guys.

Speaker Change: Yes.

Speaker Change: Jay.

Speaker Change: They carry Julien.

Thank you for our next question.

Speaker Change: Okay.

Speaker Change: And our next question comes from Anthony <unk> of Mizuho.

Anthony: Hey, good morning, Sean Good morning, Brian.

Anthony: Morning morning, Anthony.

Anthony: Hey, if I could follow up on Julians question here on the 17% <unk> to debt target.

Nicholas Campanella: Thanks for taking the question. Morning. So, yeah, thanks for the increase in the CapEx plan and all the details there. I guess, just simplistically, what is rate-based growth on this new plan as you see it? Brian, do you want to cover that one?

Anthony: I believe and I may have it wrong I thought give moody's downgrade threshold was 18%.

Anthony: It seems like.

Anthony: If that if that is accurate are you guys.

Anthony: Comfortable operating below the threshold.

Speaker Change: Yes, Brian you want to tackle that sure sure.

Brian: Sure, sure. Good morning, Nick. And yeah, you know, in the appendix, we've given our best current estimate of our five-year capital expenditures. And we've also provided our starting rate base number, as filed in our recent rate case filing, as well as an annual depreciation expense trend line over the next five years. So, you know, maybe I'll punt to Jason maybe after the call to help with kind of the annual rate base number across the five-year plan. But from a five-year CAGR perspective, it's roughly seven and a half percent. Seven and a half percent.

Anthony: Anthony.

Brian: Previously we were projecting more in the neighborhood of 18% and now that we've updated our capital investment plan and made other updates to the plan, including this load growth, which just continues to the.

Speaker Change: The shine and grow.

Anthony: We now see our <unk> numbers coming in around 17% each year 2024 through 2028.

Anthony: With respect to Moody's we have discussed these plans with them we did that back in December.

Anthony: And I believe they really appreciate our track record.

Sure risk way, we deploy capital the constructive nature of regulation in Oklahoma, and Arkansas, and so my hope and belief is that our financial plans to continue to support our current credit ratings.

Nicholas Campanella: That's, that's, that's helpful. Okay. And then I guess just holdco was five cents and 23.

Speaker Change: Great and then if I could just.

Speaker Change: High level question on the 5% to 7% EPS growth rate does the company have a bias either way are you guys targeting the midpoint and then also attached to that just.

Nicholas Campanella: You have another five cents to drag and 24 from, you know, probably just new debt issuances. Just how do you kind of see your holdco drag progressing through the plan here? Does it remain consistent at that 10 cents? Or does it grow through 25 and beyond?

Speaker Change: Is it going to be linear the whole forecast buried.

Speaker Change: Thanks Anthony.

Speaker Change: Think.

Speaker Change: You should expect.

Speaker Change: <unk> be linear we have every expectation to do.

Speaker Change: Do what we say we're going to do it.

Speaker Change: There's not a particular bias to the upside of the low side, but.

Speaker Change: But the bias is to do what we say, we're going to do and achieved a 5% to seven on an annual basis.

Brian: Yeah. Hey, Nick, it's Brian again. You know, as I've spoken about in the last few quarters, the utility and holding company are lining up very well for 2024 and beyond. You've heard us speak about the many tailwinds at Enron. We spoke about a lot of them today, namely very strong load growth and a host of incremental infrastructure investment needs. And so we're expecting utility growth to be very meaningful during the five-year period. And the holding company is really there to help to finance the business as we go along. So you have the capital plan numbers.

Speaker Change: Great Congrats on a great quarter. Thanks for taking my questions. Thanks, Anthony take care. Thank you Anthony.

Speaker Change: Thank you one moment for our next question.

Speaker Change: And our next question comes from Paul Fremont of Ladenburg Thalmann <unk> company.

Speaker Change: Okay.

Paul Patterson: Alright, thanks, and congratulations on a great quarter.

Paul Patterson: Hey, good morning, Paul.

Paul Patterson: Thanks, Good morning, I'm, just trying to reconcile.

Paul Patterson: Some of some of some of your comments.

Paul Patterson: No.

Speaker Change: I'm assuming that.

Speaker Change: Current Capex plan.

Speaker Change: Equity sort of get you to that that that 17% <unk> to debt level.

Speaker Change: Or can you more capex.

Speaker Change: And still get 70%.

Brian: And, you know, today we're providing this consolidated view of OGE Energy Corp. And we have a lot of confidence in achieving that five to seven percent consolidated EPS growth rate throughout the five-year period. So we're, you know, we're looking at it as a consolidated view. And certainly, you'll see the holding company tick up a little bit each year. But in total, when you look at the whole package, we feel very confident and strongly about our ability to deliver that five to seven percent consolidated CAGR and annual growth rate. All right. Hey, I appreciate the time.

Speaker Change: Brian you on tackle that one sure Paul.

Brian: <unk> estimates a 17% throughout the forecast period or are predicated really on all the assumptions we've put in the materials today, so that $6 billion capital investment plan.

Brian: The load growth, we're projecting in 2024, I've mentioned that we expect 2025 and beyond to be well north of 1% so strong load growth.

Brian: Good results throughout the five year period.

Brian: Staying on top of our regulatory recovery for investments, so think of that as kind of a.

Brian: Annual type of rate case cadence.

Brian: So all of those assumptions you've seen our materials today are what's embedded.

Nicholas Campanella: Thanks. Thanks, Nick. Thank you, Nick.

Brian: And in that estimate.

Speaker Change: Alright. So then when Sean says that there is no net debt.

Durgesh Chopra: Thank you. One moment for our next question. And our next question comes from Durgesh Chopra of Evercore ISI. Hey, good morning, team, and happy H. Hey, good morning. Good morning. Happy 122nd birthday in advance to my country.

Speaker Change: That he doesn't expect.

Speaker Change: Equity in the five year plan does that imply that the plan likely the planned capital spending is likely to remain roughly than where it is today as opposed to.

Speaker Change: Some of these new projects being additive.

Durgesh Chopra: Thank you. Thank you. It'll be a big day. It sure is.

Speaker Change: Yes, Paul This is Sean I think that's accurate, where we sit today right and I think as Brian mentioned as we see other projects come in we have a lot of latitude a lot of flexibility to move things around.

Shawn: Hey, just maybe, can you help us bridge, obviously, a very steep increase in capital expenditures? And it's nice to see low growth is supporting a lot of that. But just, you know, can you help us bridge what big projects, big generation projects are in the plan now? Obviously, I think Horseshoe Lake is in the plan now.

Speaker Change: And our investment profile and.

Speaker Change: We're going to be very cognizant of that.

Speaker Change: The previous question in terms of managing our balance sheet and our credit metrics.

Speaker Change: The impact to customers, so as not to slow down this tremendous load growth that we see.

Speaker Change: Continuing for many years.

Speaker Change: Great and then last question for me.

Shawn: Just any big projects that you can call out, which helps us bridge the gap going from $4.75 to $6 billion, please? Yeah, really. Horseshoe Lake is the single biggest project in the five-year capital plan. Really, what is driving a lot of that is load growth. We are investing a lot in connecting new customers and building infrastructure to support them, all the while improving the reliability and resiliency of our assets. But other than Horseshoe Lake, there's not a big project in there that's really driving that.

Speaker Change: Can you guys be more specific in terms of your 5% to 7%.

Speaker Change: EPS growth plan and telling us what.

Speaker Change: Load growth.

Speaker Change: Is embedded in that 5% to 7% because you've set above 1%, but that's a pretty.

Speaker Change: Why potential range.

Speaker Change: Yes, yes, that's right Paul.

Speaker Change: To give you some guardrails maybe.

Speaker Change: Draft to IRB, which is out there in public you can see some of the energy usage numbers that.

Speaker Change: That are based on our conversations with customers and their plans, obviously, we stay very close with our large customers understand their needs and unexpected usage. So I might point you to that and just now we are.

Durgesh Chopra: Got it. Excellent. Okay. That's what I was expecting.

Shawn: I just wanted to check. Okay, that's perfect. And then maybe just any updates on the Oklahoma rate case here, any feedback or initial feedback from stakeholders or discussions with regulators and others that you can share with us? Not at this time. I mean, it's still early in the process. And, you know, testimony hasn't been filed for all the parties yet.

Speaker Change: We're conservative in our financial planning and what Youll see in that draft RFP.

Speaker Change: Giving you the load growth expectations for 2024.

Speaker Change: 2025 and beyond.

Speaker Change: <unk> had some really large growth numbers, we're not going all the way that far but it's.

Speaker Change: Net 2% plus area.

Speaker Change: The 2% plus being what's embedded in your.

Durgesh Chopra: And so we'll go through that, and we'll get this resolved and continue executing on our business. Okay, perfect. I appreciate the time.

Speaker Change: In Europe, and your current forecast that you're correct.

Speaker Change: Alright, great.

Speaker Change: Thank you so much.

Speaker Change: Thanks, Paul take care.

Speaker Change: Thank you one moment for our next question.

Durgesh Chopra: Good luck, guys. Thanks. Thanks, Suresh. Take care,

Speaker Change: And our next question comes from Travis Miller of Morningstar.

Julie Dumoulin-Smith: Thank you. One moment for our next question. And our next question comes from Julie Dumoulin-Smith of Bank of America. Hey, good morning team. Very nicely done holding the line on that five to seven. So kudos to the whole team there on that front.

Travis Miller: Good morning, everyone. Thank you address.

Travis Miller: Good morning.

Travis Miller: Answer most of my questions, but one clarification around how your buckets the load growth, obviously commercial big one up in the data.

Travis Miller: How does that relate to some of these larger projects that you talked about the manufacturing projects.

Julie Dumoulin-Smith: I appreciate it. Thanks, Julie. Good morning. It's good to hear from you.

Travis Miller: <unk> production.

Julie Dumoulin-Smith: Yeah, absolutely, guys. All right, well, let me kick it off on this front. You talked about being open to issuing equity, you obviously have a variety of further incremental generation projects potentially coming into the picture, maybe over the next year or so, you can define that. How do you think about the moderator or governor is when it comes to raising that cap tax?

Travis Miller: Ex oil and gas.

Travis Miller: Projects would those go into or are they in the commercial bucket or would they then.

Travis Miller: Switch over to the industrial would you expect more industrial growth.

Travis Miller: Hey, Travis it's Brian good morning.

Brian: We're seeing nice load growth prospects across a lot of different industries.

Brian: Western Arkansas is very manufacturing heavy.

Brian: So thats going to show up in the industrial sector over the next five years.

Brian: In Oklahoma.

Shawn: You kind of talked about, you know, maybe not call it crowding out, but then the element of, you're trying to tailor a program that's palatable to customers and palatable to your balance sheet. Is there some, you know, more specific metric you'd like to offer? I mean, is there some kind of FFO metric or inflationary metric?

Brian: You see a lot of different the defense industry food and beverage distribution.

Brian: Data centers is a big driver.

Brian: And as I mentioned in the past that that data center load as is.

Brian: Fast to come on it's kind of a lower margin type of sector.

Brian: But it's turned out to be pretty at least so far very sustainable.

Brian: It's more training to generative AI data centers as opposed to the old Bitcoin mining.

Brian: So does that give you a feel for what we're looking at are.

Shawn: Or how do you think about boxing that in, if you will, a little bit more? Start to ask a little differently. Yeah, great question. You know, and I think all of those points you raised are, are, are important points for us to consider. I think the credit metrics and the FFO to debt are very important to us, and we're going to manage our balance sheet that way. You know, as we think about the customer impact, inflation, you know, that is a key indicator that we would look at.

Brian: Are those flowing through those commercial.

Speaker Change: I'm sorry.

Speaker Change: And thats going through the commercial sector that's right.

Speaker Change: So we shouldnt see a huge shift from commercial to industrial is just.

Speaker Change: Continued pretty much.

Speaker Change: That commercial Thats right and also some industrial growth.

Speaker Change: Youre going to see our biggest increases in the commercial sector in the next five years, we do believe there's going to be a nice pickup in the industrial sector compared to what we've seen the last couple of years, but it'll be modest compared to what youll see in the commercial sector. Okay, perfect sorry to drill down so much on the house.

Speaker Change: And then kind of along those lines when these big customers commodity the manufacturing or like you mentioned the data centers.

Speaker Change: What concerns you the most or what investment is needed. The most to serve those customers in particular is a generation or is it more of the wire as parts of Substations and transmission lines.

Shawn: But I think more importantly, we really forecast this load growth to continue for many, many years. And we play a big role in facilitating that continuation, that growth. And so what we want to do is make sure that our service area does not see any large increases in rates, thereby mitigating or slowing down that growth. Dad, help?

Speaker Change: Well you know on the on the transmission side the data centers.

Speaker Change: Work with us and they do.

Speaker Change: Look to the place their infrastructure, where we have.

Speaker Change: The vote the load capacity on our transmission lines. So.

Speaker Change: The need to invest on that front is pretty minimal.

Shawn: No, fair enough. Indeed. And then if I can follow up a little bit on some of the specifics there, just from an authorized equity ratio perspective, though, to the extent to which that would deviate here in the rate case, could that drive equity needs here? Again, I know that there's, you know, kind of a tilde 17% here.

Speaker Change: And as I mentioned earlier, our ERP has some pretty substantial growth numbers already included in it the draft. When I'm speaking to has has assumed some of these large loads that we're speaking to today coming to fruition in the next five years.

Speaker Change: They're very likely to come to fruition. So yes that gets embedded into the generation capacity planning, including our DSM energy efficiency programs load reductions type services. So it may or may not have an impact on our generation depending on how successful we are with energy efficiency load reduction and DSM.

Julie Dumoulin-Smith: Yeah, Julian, just to be perfectly clear, we have no needs and no plans to issue equity over this five-year horizon. Excellent. Bye. Given the protracted nature of the process last year, wouldn't it be appropriate to think about pursuing settlement in the right time and place in as much as that could help expedite what is otherwise a busy schedule here this year?

Speaker Change: <unk>.

Speaker Change: Okay. Okay, great. That's very helpful. Thanks, so much.

Speaker Change: Thank you have a great day.

Speaker Change: Thank you one moment for our next question.

Speaker Change: And our next question comes from Rajiv Gandhi of Wolfe Research.

Rajiv Gandhi: Good morning, Sean Brian and Jason can you hear me.

Rajiv Gandhi: Yes, we can good morning, good morning.

Rajiv Gandhi: Good morning.

Rajiv Gandhi: Brian I just wanted to go back to Nick's question on.

Rajiv Gandhi: The Holdco leverage could you could you give us a little bit more color around holdco debt issuance needs beyond 2024.

Shawn: Sure. Sure. And, you know, we've pursued those and executed those settlements in the past, and, you know, we did that during our Horseshoe Lake proceedings, and we'd hope to do that again this time. All right, wonderful, excellent. And sorry to clarify this one more time, 17% through the period here, in terms of seeing that the cadence through that, that's 17% through the whole period; it's not necessarily fading at the end of that period or what have you, right?

You've mentioned the five to seven consolidated.

Rajiv Gandhi: Neil.

Rajiv Gandhi: Sure.

Rajiv Gandhi: <unk> reiterated confidence in achieving is just how should we kind of think about where you are tracking within that range beyond beyond 'twenty four.

Rajiv Gandhi: Maybe go back to some of our messaging in previous quarters.

Speaker Change: I think the one thing that's changed from a year ago as our capital investment plan has been updated.

Speaker Change: Our messaging has been very consistent we've been speaking to all the investments it Sean.

Speaker Change: Alluded to earlier and so when you think about our consolidated entity.

Speaker Change: And maintaining the appropriate cap structure at utility and a dividend payout ratio we spoken to.

Julie Dumoulin-Smith: Yeah, I think Brian was very clear to say there were no dips. Exactly. Bingo. Excellent, guys. Thank you so much. Take care, Joanne.

Speaker Change: I believe what I've referenced in the past is the holding company debt, increasing somewhere in the neighborhood of $2 million to $300 million per year.

Speaker Change: That number.

Speaker Change: It gets smaller as the five year period goes on so.

Julie Dumoulin-Smith: Thank you. One moment for our next question, and our next question comes from Anthony Crowdell of Mizzou.

Speaker Change: I wouldn't necessarily think the.

<unk> increase youre seeing this year is necessary going to be five since each year that should decline a little bit as time goes by.

Anthony Crowdell: Hey, good morning, Sean. Good morning, Brian. Hey, good morning.

Speaker Change: But again this is all part of the consolidated EPS package.

Anthony Crowdell: Good morning, Anthony. Hey, if I could follow up on Julian's questionnaire on the 17% FFO to debt target. I believe, and I may have it wrong, I thought your Moody's downgrade threshold was 18%.

Speaker Change: But don't forget about the great tailwind that we're seeing at the utility and the overall growth we're seeing in our core operations.

Speaker Change: Okay. Okay that makes sense. Thank you for that and then just on the Oklahoma rate case, I know, it's still early testimonies yet to be filed but can you can you speak to how you feel about the case.

Brian: It seems that you're, if that is accurate, are you guys comfortable operating below the threshold? Yeah, let Brian handle that. Sure, sure. And Anthony, you know, you know, previously, we were projecting more in the neighborhood of 18%. And now that we've updated the capital investment plan and made other updates to the plan, including this load growth, which just continues to shine and grow. You know, we now see our FFO numbers coming in around 17% each year from 2024 through 2028. You know, with respect to Moody's, we discussed these plans with them. We did that back in December.

Speaker Change: Given that the lower fuel factors for.

Speaker Change: Fostered customers late last year.

Speaker Change: What was the time for a potential settlement.

Speaker Change: Yes.

Speaker Change: It'll be.

Speaker Change: The ongoing discussion I think the first step and all of that is you need testimony to be filed and then we'll begin those discussions, but I think that would be in the second quarter.

Speaker Change: Okay. Okay. That's helpful. Thanks for taking my questions.

Speaker Change: Have a great day.

Speaker Change: Thank you as a reminder to ask a question. Please press star one one on your Touchtone telephone.

One moment for our next question.

Yes.

And our next question comes from Gregg <unk> of UBS.

Gregg: Yes. Thank you congratulations.

Hey, good morning, Greg Good morning, Good morning, Sean.

Gregg: Brian.

Gregg: The only thing I have left is just guidance on the tax rate for.

Brian: And I believe they really appreciate our track record, you know, the lower-risk way we deploy capital, and the constructive nature of regulation in Oklahoma and Arkansas. And so my hope and belief is that our financial plans will continue to support our current credit ratings. Great, and then if I could just, a high-level question on the 5-7% EPS growth rate, does the company have a bias either way, or are you guys targeting the midpoint, and then also attached to that, just, you know, is it going to be linear the whole forecast period? Anthony. I think you should expect it to be linear.

Gregg: 24 through the plan.

Gregg: Brian Alright, well, Hey, Greg good morning.

Gregg: The tax the effective tax rate were estimating for 2024% to 16%.

Gregg: <unk>.

Gregg: What we when you think about our effective tax rate reconciliation.

Gregg: The larger items is the the flowback of excess deferred income taxes, which lowers that.

Gregg: The effective tax rate compared to the statutory rate. So while you may see the ETR tick up a bit as time goes on and that's just because we've returned.

Gregg: State Itc's.

Gregg: Federal excess deferred income taxes, so the net income impact should be negligible.

Gregg: ETR changing overtime point of view.

Anthony Crowdell: We have every expectation to do what we say we're going to do. And there's not a particular bias to the upside or the low side, but the bias is to do what we say we're going to do and achieve the five to seven on an annual basis. Great, congratulations on a great quarter. Thanks for taking my questions. Thanks, Anthony. Take care.

Speaker Change: Great. Thanks.

Speaker Change: Thank you have a good one Greg.

Thank you I'm showing no further questions at this time I would now like to turn it back to Sean <unk> for closing remarks.

Brian Russo: Thank you David and thank you everyone for joining us today. Thank you for your interest in <unk> energy and for being on the call and have a great day.

Anthony Crowdell: Thank you, Anthony. Thank you. One moment for our next question, and our next question comes from Paul Fremont of Ladenburg Dominant Company. Thank you. Thank you. Thank you. Thanks, and congratulations on a great quarter. Hey, good morning, Paul. Good morning. I'm just trying to reconcile some of your comments. I'm assuming that, well, the current CapEx plan... equity sort of gets you to that 17% FFO to debt limit, or, can you do more, CapEx? and still get it.

Speaker Change: This concludes today's conference call. Thank you for participating and you may now disconnect.

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Paul Patterson: Brian, you want to tackle that one? Sure. And, Paul, you know, our FFO estimates of 17% throughout the forecast period are predicated really on all the assumptions we've put into the materials today. So, that $6 billion capital investment plan, the load growth we're projecting in 2024, I mentioned that we expect 2025 and beyond to be well north of 1%. So, you know, strong load growth, and load results throughout the five-year period, you know, staying on top of our regulatory recovery for investments. So, think of that as kind of an annual rate case cadence. And so, all those assumptions you see in the materials today are what's embedded in that estimate.

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Brian: Great, so then, when Sean says that there's no equity in the five-year plan, and he doesn't expect any equity in the five-year plan, if that implies that the planned capital spending is likely to remain roughly where it is today, as opposed to.., some of these new projects being added. Yeah, Paul, this is Sean.

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Shawn: I think that's accurate where we sit today, right? And I think, as Brian mentioned, as we see other projects come in, we have a lot of latitude, a lot of flexibility to move things around in our investment profile. And, you know, we're going to be very cognizant of the previous question in terms of managing our balance sheet and our credit metrics and, you know, the impact on customers so as not to slow down this tremendously low growth that we see continuing for many years. Great, and then last question for me: can you guys be more specific in terms of your 5% to 7%? EPS Growth Plan, telling us what?

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Paul Patterson: load growth is embedded in that five. I said above 1%, but that's a pretty..., wide potential. Yeah, that's right, Paul, to give you some guardrails, maybe our draft IRP, which is out there in public, you can see some of the energy usage numbers that are based on, you know, our conversations with customers and, and their plans. Obviously, we stay very close with our large customers and understand their needs and expected usage. So, I might point you to that and just know we're more conservative in our financial planning than what you'll see in that draft IRP. We've given you low growth expectations for 2024, 2025 and beyond, you know, an IRP has some really large growth numbers. We're not going all the way that far, but it's, it's, it's in that 2% plus area. The 2%-plus being what's embedded in your current. Transcribed by https://otter.ai. That's right.

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Brian: Thank you so much. Thanks, Paul. Take care.

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Travis Miller: Thank you. One moment for our next question. And our next question comes from Travis Miller of Morningstar. Morning, everyone. Thank you. Good morning. You answered most of my questions, but one clarification on how you're bucketing the load growth.

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Travis Miller: Obviously, you know, commercial, the big one up in the data. How does that relate to some of these larger projects you've talked about, the manufacturing projects, commodity production, and Exxon Oil and Gas projects, would those go into or are they in that commercial bucket, or would they not? Then switch over to the industrial. Would you expect more industrial? You know, hey Travis, it's Brian.

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Brian: Good morning. You know, we're seeing nice low growth prospects across a lot of different industries. You know, western Arkansas is very manufacturing heavy.

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Brian: So that's going to show up in the industrial sector over the next five years. In Oklahoma, you know, you see a lot of different things: the defense industry, food and beverage distribution, data centers are a big driver. And as I mentioned in the past, that data center load is fast to come on. It's kind of a lower margin type of sector.

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Brian: But it's turned out to be pretty, at least so far, very sustainable. And it's more trending to generative AI data centers as opposed to the old Bitcoin mining. So does that give you a feel for what we're looking at? Yeah, are those flowing through those commercial numbers?

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Brian: Yes, and that's going on in the commercial sector. That's right. Okay, so we shouldn't see a huge shift from commercial to industrial. That's right.

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Travis Miller: Yeah, you're going to see our biggest increases in the commercial sector over the next five years. We do believe there's going to be a nice pickup in the industrial sector compared to what we've seen the last couple years, but it'll be modest compared to what you'll see in the commercial sector. Okay, perfect. Sorry to drill down so much on this. And then kind of along those lines, when these big customers come in, either manufacturing or, like you mentioned, the data center, what concerns you the most, or what investment is needed the most to serve those customers in particular? Is it generation, or is it more of the wires parts, the substations, the transistors?

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Brian: Well, you know, on the transmission side, the data centers work with us, and they do look to place their infrastructure where we have the load capacity on our transmission lines. So, you know, the need to invest on that front is pretty minimal. And as I mentioned earlier, IRP has some pretty substantial growth numbers already included in it. The draft one I'm speaking to has assumed some of these large loads that we're speaking about today coming to fruition in the next five years, and they're very likely to come to fruition. So, yeah, that gets embedded into the generation capacity planning, including our DSM energy efficiency programs and load reduction services. So it may or may not have an impact on our generation, depending on how successful we are with energy efficiency load reduction and DSM.

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Travis Miller: Okay. Okay, great. That's very helpful.

Travis Miller: Thanks so much. Thank you. Have a great day. Thank you. One moment for our next question. And our next question comes from Aditya Gandhi of Wolf Research. Morning, Sean, and Brian. Yes, we can.

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Aditya Gandhi: Good morning. Good morning. Brian, I just wanted to go back. Questions?

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Aditya Gandhi: Cisco Leverage, could you give a little... to address that issuance need, uh... twenty? You've mentioned the five... and Howard Schultz, about where you're trying. You know, Aditya, I'll maybe go back to some of my messaging in previous quarters. You know, I think the one thing that's changed from a year ago is our capital investment plan has been updated. And you know, our messaging's been very consistent. We've been speaking to all the investments that Sean alluded to earlier. And so when you think about our consolidated entity and maintaining the appropriate cap structure at utility and the dividend payout ratio we've spoken about, I believe what I've referenced in the past is the holding company debt increasing somewhere in the neighborhood of $200 to $300 million per year. That number, you know, gets smaller as the five-year period goes on.

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Brian: So I wouldn't necessarily think the $0.05 increase you're seeing this year is necessarily going to be $0.05 each year. That should decline a little bit as time goes by. But again, this is all part of the consolidated EPS package.

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Brian: And don't forget about the great tailwinds that we're seeing at the utility and overall growth we're seeing in our core operations. Okay, okay. And then just on the Oklahoma Raid case, I know it's still... Testimonies are yet to be filed. How have you failed, Bob?

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Aditya Gandhi: given that the low fuel factor... late last, What was the time for... You know, it'll it'll it'll be, you know, an ongoing discussion. I think the first step in all of that is you need testimony to be filed, and then we'll begin those discussions. But I think that would be in the second quarter.

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Shawn: Okay, that's all. Thanks. Have a great day. See ya. Thank you. As a reminder, to ask a question, please press star 11 on your touchtone telephone. One moment for our next question, and our next question comes from Gregg Orrill of UBS. Yeah, thank you.

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Aditya Gandhi: Congratulations. Hey, good morning, Greg. Morning, Sean. Brian. The only thing I have left is just guidance on the tax rate for... 24 through the plan.

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Gregg Gillander Orrill: All right. Well, hey, Greg. Good morning. The tax, the effective tax rate we're estimating for 2024 is 16%, and, you know, what we do when you think about our effective tax rate reconciliation, one of the larger items is the flowback of excess deferred income taxes, which lowers that effective tax rate compared to the statutory rate. So while you may see the ETR tick up a bit as time goes on, that's just because we've returned state ITCs and then the federal excess deferred income taxes. So the net income impact should be negligible from an ETR changing over time point of view.

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Brian: Great, thanks. Thank you. Have a good one, Gregg. Thank you. I'm asking no further questions at this time.

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Gregg Gillander Orrill: I would now like to turn it back to Sean Trauschke for closing remarks. Thank you, Dede, and thank you, everyone, for joining us today. Thank you for your interest in OGE Energy and for being on the call. And have a great day.

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Shawn: This concludes today's conference call. Thank you for participating, and you may now disconnect. Thank you for watching!

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Operator: ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? www.globalonenessproject.org Copyright © 2020, New Thinking Allowed Foundation, ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day and thank you for standing by. Welcome to the OGE Energy Corp 2023 Fourth Quarter Earnings and Business Update Call. At this time, all participants are in a listen-only mode.

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Jason Bailey: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Jason Bailey, Director of Investor Relations, please go ahead. Thank you, DeeDee, and good morning, everyone, and welcome to OGE Energy Corp.'s fourth quarter 2023 Earnings and Business Call. With me today, I have Sean Trauschke, our Chairman, President, and CEO, and Brian Buckler, our CFO. In terms of the call today, we will first hear from Sean, followed by an explanation from Brian of the financial results.

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Speaker Change: Good day and thank you for standing by welcome to the O G Energy Corp, 2023, fourth quarter earnings and business update call.

Jason Bailey: And finally, as always, we will answer your questions. I'd like to remind you that this conference is being webcast, and you may follow along at oge.com. In addition, the conference call and accompanying slides will be archived following the call on that same website.

Speaker Change: This time, all participants are in a listen only mode.

Speaker Change: After the Speakers' presentation, there will be a question and answer session.

Jason Bailey: Before we begin the presentation, I'd like to direct your attention to the Safe Harbor Statement regarding forward-looking statements. This is an SEC requirement for financial statements and simply states that we cannot guarantee forward-looking financial results, but this is our best estimate today. I will now turn the call over to Shawn for his opening remarks. Thank you, Jason. Good morning, everyone.

Speaker Change: Ask a question during this session you will need.

Speaker Change: Need to press Star one on your telephone you will.

Speaker Change: Youre an automated message advising your hand is raised to withdraw your question. Please press star one again.

Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today.

Speaker Change: Jason Bailey director of Investor Relations. Please go ahead.

Jason Bailey: Thank you Didi and good morning, everyone and welcome to <unk> LG Energy Corp, fourth quarter, 2023, earning and business call update.

Shawn: Thank you for joining us today. It's certainly great to be with you. I'm excited about our message to you this morning, as our results for 2023 were top of guidance and we are updating our five-year plan, including a consolidated earnings growth rate based on the strong fundamentals of our business. It's truly a great time to be here at the company. Before we get into the plan, I do want to take a moment to talk about our people here at Big Orange. In 2023, the team delivered results for our customers, for our communities, and for shareholders by providing reliable energy at some of the lowest rates in the nation every day. Once again, our safety results were very strong, with the last eight years being the safest in our 121-year history.

Jason Bailey: With me today, I have Sean <unk>, our chairman, President and CEO and Brian Butler, our CFO.

Jason Bailey: In terms of the call today, we will first hear from Sean followed by an explanation from Brian of financial results and finally as always we will answer your questions.

I'd like to remind you that this conference is being webcast and you may follow along.

Jason Bailey: <unk> Dot Com. In addition, the conference call and accompanying slide will be archived following the call on that same website.

Speaker Change: Before we begin the presentation I would like to direct your attention to the safe Harbor statement regarding forward looking statements.

Speaker Change: This is an SEC requirement for financial statements and simply states that we cannot guarantee forward looking financial results, but this is our best estimate today.

Speaker Change: I will now turn the call over to Sean for his opening remarks, Sean. Thank you Jason Good morning, everyone. Thank you for joining US today, it's certainly great to be with you.

Brian Russo: I am excited about our message to you. This morning as our results for 2023 were top of guidance and we are updating our five year plan, including a consolidated earnings growth rate based on the strong fundamentals of our business. It is truly a great time to be here at the company.

Brian Russo: Before we get into the plan I do want to take a moment to talk about our people here a big launch in 2023, the team delivered results for our customers our communities and shareholders by providing reliable energy at some of the lowest rates in the nation every day.

Brian Russo: Once again, our safety results were very strong with the last eight years being the safest in our 121 year history, even as we continue to face some of the most extreme weather in the country like winter storms, Jerry and Heather in January where our plants ran generating electricity to the grid to ensure our customers can continue to.

Brian Russo: Live their lives and run their businesses.

Brian Russo: Our team achieved recognition for our culture in 2023, I mentioned last quarter that we've been named the number one in state employer in Oklahoma by Forbes magazine and later in the year. We were also named a top workplace in Oklahoma. Following the feedback our employees gave in our annual workplace survey and just last week Forbes named <unk>.

Brian Russo: The 16th best mid sized employer in the country, achieving the highest rank in our sector and the highest ranking of any company in Oklahoma.

Brian Russo: These results are not happenstance that come from a dedicated commitment to fostering a culture grounded in our values and our beliefs and operationalized with a focus to deliver safe reliable and resilient electricity combined with outstanding customer experiences every single day.

Shawn: They come from a dedicated commitment to fostering a culture grounded in our values and our beliefs and operationalized with a focus on delivering safe, reliable, and resilient electricity combined with outstanding customer experiences every single day. I'm so proud of everyone here at the company, and it's because of them that we're discussing great financial results. This morning, we reported consolidated earnings at the top end of our guidance of $2.07 per share for the year, including $2.12 per share for OG&E and a holding company loss of $0.05 per share. Our sustainable business model provides opportunities to drive low growth while simultaneously investing in the grid and generation for many years to come in a way that is mindful of ensuring a smooth customer impact and delivering consistent financial returns. Last year, my message to you was, "We've got this."

Brian Russo: I'm so proud of everyone here at the company and it's because of them that we are discussing great financial results.

Brian Russo: This morning, we reported consolidated earnings at the top end of our guidance of $2 seven per share for the year, including $2 12 per share for <unk> and holding company loss of <unk> <unk> per share.

Brian Russo: Our sustainable business model provides opportunities to drive load growth, while simultaneously investing in the grid and generation for many years to come in a way that is mindful of ensuring a smooth customer impact and delivering consistent financial returns.

Shawn: The plan we introduced to you this morning is an extension of that message and is consistent with the growth we've delivered in the past. Over the next five years, we expect to grow consolidated earnings per share by 5 to 7 percent. Looking back at the 10-year period before we exited our midstream natural gas segment, we delivered over 6% of consolidated earnings per share growth. The difference now is that we've simplified our business mix and removed the volatility that was associated with that business segment. Our plan going forward, which Brian will detail, is based on a pure play electric model with premium fundamentals, including a strong financial base and credit metrics, excellent load and customer growth, and a Today I want to talk to you a bit more about three key aspects of our work that drive our results.

Speaker Change: Looking back at the 10 year period before we exited our midstream natural gas segment, we delivered over 6% of consolidated earnings per share growth. The difference now is that we simplified our business mix and remove the volatility that was associated with that business segment, our plan going forward, which Brian will detail is based on a pure.

Speaker Change: <unk> electric model with premium fundamentals, including a strong financial base and credit metrics.

Brian: <unk> load and customer growth and a lower risk investment plan focused on delivering the safe reliable resilient electric service that our customers expect.

Brian: Today I want to talk to you a bit more about three key aspects of our work that drive our results reliability growth and affordability.

Shawn: Reliability, growth, and affordability. Our grid and weather hardening investments continue to deliver great results for our customers. For example, our grid reliability investments benefited customers in 2023, saving over 320 minutes of interruption for the average impacted customer. And from a SADI perspective, automated restorations saved our customers more than seven and a half minutes of SADI, or 6.2 million customer minutes of interruption.

Brian: Our grid and whether hardening investments continue to deliver great results for our customers our grid reliability investments benefited customers in 2023 saving over 320 minutes of interruption for the average impact of customer and from a safety perspective automated restorations saved our customers more than seven five minutes.

Brian: <unk> were $6 2 million customer minutes of interruptions.

Shawn: We also built or upgraded 21 substations to serve our growing service area, and we will continue making these types of investments in the grid that directly benefit our customers. This foundation powers our growing communities, an economic development engine that has delivered eleven new projects in our service area that are projected to create thousands of jobs and garner billions of dollars in additional investment. This type of growth is not by accident. We set the stage for these results more than five years ago when we began investing and growing the local economy in cities and towns all across our service area. Communities maintain strong unemployment rates and continue to attract expanding and new businesses that our low rates help secure. For example, just last month, Stardust Power announced its plans to build a new...

Brian: We also built or upgraded 21 substations to serve our growing service area and we will continue making these types of investments in the grid that directly benefit our customers.

Brian: This foundation powers, our growing communities and economic development engine that has delivered 11 new projects in our service area that are projected to create thousands of jobs and garnered billions of dollars in additional investment.

Brian: This type of growth is not by accident, we set the stage for these results more than five years ago. When we began investment in growing our local economy in cities and towns all across our service area.

Brian: Our communities maintained strong unemployment rates and continue to attract expanding and new businesses that are low rates helped secure.

Brian: For example, just last month startup power announced its plans.

Q4 2023 OGE Energy Corp Earnings Call

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