Q1 2025 OGE Energy Corp Earnings Call
Good day and thank you for standing by welcome to the O G Energy Corp, 2025, first quarter earnings and business update call.
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Please be advised that today's conference is being recorded I would like to hand, the conference over to your first speaker today, Jason Bailey Director of Investor Relations. Please go ahead.
Jason Bailey: Thank you Marvin and good morning, everyone and welcome to our call with me today I have Sean <unk>, our chairman, President and CEO and Chuck <unk> our.
Our CFO and treasurer.
Jason Bailey: In terms of the call today, we will first hear from Sean followed by an explanation from Chuck our financial results and finally as always we will answer your questions.
Jason Bailey: I'd like to remind you that this conference is being webcast and you may follow along at <unk> Dot Com and.
Jason Bailey: In addition, the conference call and accompanying slides will be archived on that same web site.
Jason Bailey: Before we begin the presentation I'd like to turn your direct direct your attention to the Safe Harbor statement regarding forward looking statements.
Jason Bailey: 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 to date.
Jason Bailey: I will now turn the call over to Sean for his opening remarks, Sean.
Sean: Thank you Jason Good morning, everyone. Thank you for joining US today, it's certainly great to be with you.
Sean: The first quarter of the year continued our momentum from the last few years and we're firmly on plan. This morning, we reported consolidated earnings of 31 per diluted share, including 35 Pro Jeannie and our holding company loss of <unk> <unk>.
Sean: Fundamentals of our business are strong and the team is committed to our north star delivering safe reliable and affordable electric service to our 900000 plus customers 24 hours a day seven days a week 365 days a year.
Sean: Today I want to touch on a few topics to build on this momentum for the future.
Sean: First the customer growth and increasing demand for electricity we are seeing.
Sean: Operational excellence and a look ahead for the rest of the year and how we view factors in the macro environment.
Sean: Demand for the quarter grew 8% year over year led by residential and commercial sectors customer growth is right on target at 1% and we are excited about the pipeline for base load growth, which represents diverse industries, bringing job and that economic growth to both Oklahoma and Arkansas and the new residents needed for.
Sean: Are those industries to thrive.
Sean: From defense to travel development hospitality. This sustainable growth is how we build an even brighter future for our company you may have seen the announcement earlier this month that Oklahoma City will host seven events for the 2028 Olympics for softball, and Consol. We've long supported these facilities and look forward to.
Sean: Partnering with them the city and the state to ensure our hometown delivers a wonderful experience for teams and visitors from around the world.
Sean: We have lines of sight into new and expanding business that drive our base load growth assumptions for the future from an industrial customer moving their onsite generation to us to our expanding military basis to a midstream customer building a new processing facility in our service area.
Sean: While I can't tell you the exact monitor quarter today within a given year. These expansions are all built into our long term growth projections.
Sean: Looking at operations, our grid and weather strengthening investments continued to deliver great reliability results here, we sit at the end of April after experiencing tornadoes fires windstorms freezes and thunderstorms in last eight weeks, we're averaging 90, 995% reliability.
Sean: Then again last night and early this morning, another wave of tornadoes high winds rain hail and flooding came through in our system held up very well in the small number of outages. We did have will all be back this morning.
Sean: Between our teams' physical infrastructure and technology <unk> customers experienced fewer outages and better reliability will continue to strengthen the grid for today and tomorrow and at some of the lowest rates in the nation.
Sean: Today, our rates are top desktop overall retail as noted in the most recent S&P report and our rates are the lowest in both Oklahoma and Arkansas, we understand the importance of keeping rates low for our customers and also serving as the foundation for the economic development engine, we've built over the years.
Sean: Turning to generation, our power plant supply the grid with electricity it fuels economic growth as a reminder, we have about 550 megawatts under construction today at Horseshoe Les can tinker and in the coming weeks, we expect to make regulatory filings on our most recent RFP. These filings will include a range of technology.
Sean: And contract types and we're currently in discussions with a number of companies regarding data center projects, including the Google project in Stillwater, and we will file separately for those needs as those contracts are finalized.
Sean: In addition to generation, we will also continue to invest in the reliability and resilience of the grid, including future transmission opportunities.
Sean: Continuing on the regulatory front as we previously shared we plan to request a rate review mid year in Oklahoma and Arkansas, We will file a general rate review in Formula rate plan requests towards the end of this year.
Constructive regulatory outcomes enable us to drive the economy serve customers and grow communities and achieve results for all of our stakeholders. We recognize the uncertainty in macroeconomic factors that may create questions about our operating environment and I'd like to share with you how we approach changes and.
Sean: In tariff policy, we've limited our exposure to a diversified supply base and one specific example is transformers and since Covid, we've expanded our transformer sourcing strategies to include domestic and international suppliers.
Sean: And for 2025 proactive planning and disciplined approach to inventory allows us to meet our planned projects for this year with little to no disruptions.
Sean: In fact key components like Transformers, as well as wire and cable are all secured through 2026, while.
Sean: While we don't have a crystal ball and the situation is dynamic we will continue to do what we say, we will do and deliver on our stakeholders needs and expectations and as we plan for future investment will keep all options in front of us ensuring our business isn't predicated on a single rate filing key supplier a particular path forward.
Sean: As I close my remarks, and hand off to Chuck I Hope you hear how bullish I am on our company and our future. The case for investment in <unk> energy is persuasive thanks to our growing sustainable business model, our financial position is strong with a high quality balance sheet that we leverage appropriately.
Speaker Change: Plan is designed to meet the needs of our growing customer base, keeping the macro environment and mine and continued.
<unk> success in running and economic development engine that drives jobs and local economies and all of that is supported by operational excellence delivered by an incredible team dedicated to reaching our north star.
Chuck: Now I'll turn the call over to Chuck Chuck.
Chuck: Thank you Sean and thank you, Jason and good morning, everyone. I am pleased to review 2025 first quarter results with you and provide an update on our 2025 financial plan.
Chuck: Let's start on slide six and discuss first quarter results.
Chuck: Consolidated net income was $63 million or <unk> 31 per diluted share compared to $19 million or <unk> <unk> per share in the same period of 24.
Chuck: In our core business. The electric company achieved net income of 71 million or <unk> 35 per diluted share compared to $25 million or <unk> 12 per share in the same period of 24.
Chuck: The main drivers of the year over year increase in net income were higher operating revenues driven by the recovery of capital investments and continued strong load growth as well as lower operation and maintenance expense, partially offset by higher income tax expense and higher depreciation and interest expense on a growing asset base.
Chuck: As expected the holding company reported a loss of 8 million or <unk> <unk> per diluted share compared to a loss of $7 million or <unk> <unk> per share in the same period of <unk> 'twenty four.
Chuck: Given our strong start to the year, we are affirming our 25 earnings per share guidance. We are firmly on our plan to deliver on our consolidated earnings commitment of $2 27 within a range of $2 21 to $2 33 per share.
Chuck: Let's review our load results by turning to slide seven.
Chuck: Customer growth and load growth continued its multiyear momentum into the first quarter.
Chuck: The number of customers on our system expanded at a very healthy pace of 1% compared to the first quarter of 'twenty four.
Chuck: Our weather normalized load growth turned in exceptional results growing 8% compared to the first quarter of 2024.
Chuck: Our two largest customer classes residential and commercial grew at 3% and 28% respectively. I continue to be excited about our residential growth, which is the cornerstone of the prosperous communities we serve.
Chuck: Residential results follows.
Chuck: Following a strong 2024, when it grew greater than 2% the.
Chuck: The combination of strong multi year customer growth led by our residential class and residential load growth underlies the robust nature of the economies in Oklahoma and Western Arkansas.
Chuck: We did see some softness in our industrial and oilfield classes, which can be partially explained by both planned and unplanned outages in the first quarter.
Chuck: We are on track to meet our full year total load growth expectations.
Chuck: Shawn discussed areas of future load growth led by our economic and business development efforts, which illustrate our excitement about the communities, we serve and underlying strength of our five year plan.
Chuck: Our sustainable business model is working by attracting new customers to our service area with our low rates spreading costs across a larger customer load base.
Chuck: And as I've discussed our intentional efforts to grow our communities benefit each one of our customers by keeping our rates low.
Chuck: In our last rate case in Oklahoma, we were able to pass on the benefits of load growth to our customers to the tune of more than $60 million.
Chuck: Let's turn our attention to our 2025 financing plan on slide eight.
Chuck: Our financial plan objectives include <unk>.
Chuck: Maintaining our competitive low rate advantage by focusing on our cost structure.
Chuck: Minimizing the time between investments and the return and recovery of the investments.
Chuck: And growing <unk> GE by maintaining a highly credible total return proposition for our shareholders.
Chuck: On April one we successfully completed our planned external financing by issuing $350 million of 30 year debt at the electric company, which contributes to our low refinancing risk.
Chuck: Our next refi isn't until 2027 and is a modest $125 million.
Chuck: And it's also our highest coupon debt.
Chuck: Our financial position is strong based on growing communities and load and a track record of constructive regulatory outcomes.
Chuck: We are also seeing credit constructive legislation being considered and a recent example of this is in Arkansas, where the governor signed legislation into law, which allows seawolf recovery during the construction phase of certain generation capacity projects.
Chuck: Oklahoma legislators are currently contemplating similar an additional credit accretive actions.
Chuck: Our balance sheet, one of the strongest in the industry is a competitive advantage and we are committed to keeping it that way.
Chuck: We continue to forecast <unk> to debt of approximately 17% throughout the forecast period with no need for external equity issuances other than a modest annual drip under our current investment plan.
Chuck: Sean updated you on our progress towards a preapproval filing in Oklahoma for generation capacity required to meet the Spp's planning margin requirements.
Chuck: Sean also discussed the potential for increased for incremental transmission investment associated with Spp's integrated transmission plan. If those actions result in incremental investment opportunities, we will communicate our plans, including prospective financing.
Chuck: With you after we receive the appropriate approvals as we've consistently said we expect to include equity in our financing plan to support any incremental investments, while producing accretive results and supporting our strong financial position.
Chuck: I'll close by summarizing our progress this quarter and expressing my confidence in our plan.
Chuck: Our system and our employees performed very well during extreme weather events.
Chuck: We plan to make generation capacity preapproval filing in Oklahoma in the coming weeks.
Chuck: We're on track for a mid year rate review filing in Oklahoma.
Chuck: Our load growth momentum carried forward into the first quarter and is on track to meet our expectations for the for the year.
Chuck: We've completed our planned financial planned.
Chuck: Planned external financing.
Chuck: And we're on plan to meet our earnings per share guidance.
Chuck: Our strong first quarter performance positions us well to meet our commitments for 2025, we're confident in our ability to achieve our consolidated earnings growth rate of 5% to seven based on the midpoint of our 2025 guidance the.
Chuck: The strength of our plan allows us to focus on the future and address our customer's expectations of a safe and reliable system and to deliver power at some of the lowest rates in the nation.
Chuck: As always our confidence remains based on the dedication of our employees and their ability to get the job done.
Chuck: That concludes our prepared remarks, and we'll now open the line for your questions.
Chuck: Thank you at this time, we will conduct a question and answer session.
Chuck: A reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Chuck: Please standby, while we compile the Q&A roster.
Speaker Change: Our first question comes from the line of Shah <unk> of Guggenheim Partners. Your line is now open.
Speaker Change: Hi, good morning team, it's actually probably more for Gerrard congrats on a strong quarter.
Speaker Change: Hey, good morning team.
Speaker Change: Mommy starting off on the tariff side.
Speaker Change: All the news since last quarter, especially as it relates to the new generation in the RFP are you seeing any disruptive or inflationary impact in <unk>.
Speaker Change: More broadly do you have regulatory mechanisms to address any tariff headwind across the current Capex plan.
Speaker Change: Yes, so I think for the current Capex plan costs team, we feel pretty good as I mentioned in my comments there.
Speaker Change: We have line of sight to those materials and assets and we feel pretty good that we'll see little to no disruption over the coming years for that as it relates to generation I think.
Speaker Change: Obviously that created a bit of a pause in the marketplace when those were announced and.
Speaker Change: And we were in the middle of negotiating evaluating all of those bids that came in so we certainly took our time to go through that we have not filed anything yet so we're not.
Speaker Change: We're not too concerned about regulatory actions.
Speaker Change: Excellent that's helpful.
Speaker Change: Then.
Speaker Change: Maybe a quick follow up on the load backdrop.
Speaker Change: The industrial backdrop posted some lower growth in that segment.
Speaker Change: First of all the overall strong revenue in commercial are there any key changes on the industrial side on a high level.
Tim: Yes, Tim I think.
Speaker Change: In our remarks, we really covered it it's.
Speaker Change: Within that class, you've got a variety of customers, but largely what we've seen there transitory events.
Speaker Change: In terms of outages maintenance outages.
Speaker Change: Things of that nature so.
Speaker Change: So that's that's kind of what we see that noise being.
Speaker Change: Nothing nothing we don't have any indication that there's anything.
Speaker Change: External like from a tariff or anything perspective, that's impacting that class and so I guess no change on the annual expectation.
Speaker Change: To reiterate no no no no were clear that were.
Speaker Change: We're confident in our annual number.
Speaker Change: And just a last quick one kind of high level, we have seen some jurisdictions paykan utility regulatory Comstock improvement.
Speaker Change: All of the load growth and support for economic development.
Speaker Change: Are there any conversations in Oklahoma legislature or OCC around the need for any improvement you see.
Speaker Change: Any increasing likelihood.
Speaker Change: Something like a formula rate.
Speaker Change: Current regulatory cycle or that.
Speaker Change: Long dated at this point.
Speaker Change: Yes, I think in terms of the formula rate discussions.
Speaker Change: We're going to be we're going to continue to pursue that.
Speaker Change: But I think thats going to as we've said before that's going to that's going to take a while but again that's more for the future and we don't necessarily.
Speaker Change: I think it's going to occur this year, but we're going to continue to push that.
Speaker Change: Okay understood.
Speaker Change: Really appreciate it I appreciate taking the questions. Thanks, Thanks, guys, saying they have a great day.
Speaker Change: You too.
Speaker Change: Thank you one moment for our next question.
Speaker Change: Our next question comes from the line of Nicholas Campanella of Barclays. Your line is now open.
Nicholas Campanella: Hey, good morning, everyone and thanks for the updates.
Speaker Change: Hey, good morning, Nick.
Speaker Change: Good morning.
Speaker Change: Maybe you can kind of talk through I think you brought up <unk> 998. This is the generation rider in piece of recovery.
Speaker Change: In your prepared remarks, you talked about it being kind of credit.
Speaker Change: Credit enhancing if you're going to get it through so can you just kind of confirm how that would impact. The current plan and then how it would impact how you would finance incremental capex.
Speaker Change: Especially if you start winning some of these rfps here.
Speaker Change: Yes.
Speaker Change: Yes, I think it's pretty straightforward Nick.
Speaker Change: We've got currently we've got a couple of units under construction right now.
Speaker Change: And then as you alluded to there may be additional following whatever comes out of the RFP.
Speaker Change: So like we've done on the transmission side and in the past this would provide cash flow during the construction phase.
Speaker Change: Basically, giving the what would normally be AFDC in in the form of a cash return on the.
Speaker Change: The <unk> balance as it grows so again, it's going to be dependent upon the mix of projects and the project length, and all that kind of stuff in terms of how much they.
<unk> credit.
Speaker Change: Accretive this turns out to be but but it's definitely marginally.
Speaker Change: The.
Speaker Change: Improvement in would help facilitate financing for it.
Speaker Change: Okay, that's great and then I also noticed that.
Speaker Change: When you kind of talked about these various datacenter projects.
Speaker Change: You talked about you're going to file separately for these opportunities.
Speaker Change: What would the timeline for those filings be what should we be watching for and then can you also just address.
Speaker Change: Q there was a Supreme Court decision.
Speaker Change: Not being able to extend service from third party transmission facilities does that impact in any way your ability to serve large load customers like Stillwater, just wanted to clarify that thanks.
Speaker Change: Thanks, Fred Thanks for the questions, Nick Let me kind of run through those really quickly here as we mentioned in our remarks, we're going to file for the generation coming out of the RFP here in a few weeks I mean, thats coming and we need to kind of get that ball rolling So that's why we're doing that.
Speaker Change: What we're trying to convey is these discussions we're having are ongoing and their current.
Speaker Change: To the extent that we have finalized something with one of these data center companies. We will include the generation needs into that filing if we don't we'll do it later and Thats. All we were trying to convey that we don't really have a timeline for any of the data center.
Speaker Change: Announcements or anything like that when there.
Speaker Change: When we get them done and we've come to agreement and there is a commitment we will certainly make you aware of that and then your question about the Oklahoma Supreme Court really no that doesn't have any effect on stillwater are any of those data centers.
Speaker Change: Thank you.
Speaker Change: Alright, Thanks have a great day.
Speaker Change: Thank you one moment for our next question.
Speaker Change: Our next question comes from the line of Turkish Chopra of Evercore ISI. Your line is now open.
Turkish Chopra: Hey, Deane good morning, Thank you for giving me John.
Speaker Change: Good morning.
Sean: Sean Good morning.
Speaker Change: Just I wanted to sort of build on the discussion you just.
Sean: Commentary.
Sean: Microsoft Amazon pulled back in.
Sean: Sort of some of our data center leases, we're hearing across the country.
Sean: How has the tone been.
Speaker Change: In your customer.
Speaker Change: Exchanges are you seeing any pullback.
Speaker Change: Data center electricity demand Saturday morning, Thats still guns blazing.
Speaker Change: Yes.
Speaker Change: I want to be careful how I describe that but I.
Speaker Change: I think we've said, we've got roughly a half a dozen or so discussions in various stages of.
Speaker Change: Development, and they're not slowing down.
Speaker Change: Got it okay.
Speaker Change: Seems like a pretty strong still remained pretty strong okay.
Speaker Change: Just on the balance sheet.
Chuck: Chuck So Moody's put you on negative <unk>.
Speaker Change: Currently.
Speaker Change: I believe the downgrade threshold of 18% you were targeting 17%.
Speaker Change: Sounds like there's going to be healthy.
Speaker Change: Capital upside here.
Speaker Change: <unk> toward the capital plan that will have some equity, but youre still targeting 17%. So is it okay to assume that and youll take the downgrade from <unk> to or are you trying to address that and perhaps Keith <unk> one rating, maybe just any thoughts there. Thank you.
Speaker Change: Yes, yes so.
Speaker Change: I think the main thing to take away is that this is.
Speaker Change: They put us on negative outlook and so it's not it's not an imminent change right.
Speaker Change: And.
Speaker Change: I see several potential items occurring.
Speaker Change: Before the end of that timeframe, we talked about.
Speaker Change: The credit accretive legislation, that's a new data point that I think we'd go into their calculus, if thats approved.
Speaker Change: We will have several other regulatory events to get through and to continue.
Speaker Change: To prove that the track record that we've had over over many years now.
Speaker Change: And so I think as they as they do and I can't obviously speak for Moody's, but I believe.
Speaker Change: It will take a measured approach in and take all of that new information into account whenever they resolve that.
Speaker Change: Ever direction they do.
Speaker Change: But from our perspective, we think that <unk>.
Speaker Change: 17% still gives us one of the strongest balance sheets in the in the industry.
Speaker Change: And we're we're very comfortable where we are there.
Speaker Change: That's helpful. Thank you again.
Speaker Change: Thank you Amit for next question.
Speaker Change: Our next question comes from the line of Julien Dumoulin Smith of Jefferies. Your line is now open.
Speaker Change: Hey, good morning team. Thank you guys very much for the time I sincerely appreciate it nicely done here.
Hey, good morning.
Speaker Change: Good morning.
Speaker Change: So as Sean Kim maybe just a follow up on the timeline here right with Google right.
Speaker Change: As you suggested earlier you could you could join that up with the existing RFP effort or it could take a separate route just given what seems like a fairly expedited timeline here for conceivably ramping up that site would you expect that there'll be some sort of like a short term PPA solution for them something that would be like maybe a non self built an acquisition or something.
Speaker Change: To try to ramp up and meet that capacity need on a shorter term basis, how do you think about.
Speaker Change: Kind of the timeline issues if it isn't married into the current RFP.
Speaker Change: And how that would fit into your planning process and then I've got a follow up on under <unk> one on credit.
Speaker Change: Alright, well, let me, let me try to back that so obviously theres a lot of moving pieces. There and this is a high class problem, we have with all of this.
Speaker Change: Opportunity coming before us.
We've got a very robust response.
Speaker Change: Bids that we're evaluating so think of it in terms of if we secure an agreement with anybody we could just go to the next one down on the list so to speak.
Speaker Change: That being said.
Speaker Change: As you think about constructing things we've said previously.
Speaker Change: It makes sense, maybe we have some short term bridge things that just bridges until we can get some things constructed the second point I would make on that.
Julien: Julien is.
Julien: The data centers themselves have a ramp curve.
Julien: They don't drop in just hundreds of megawatts overnight and so there is a build out a supply chain a ramp curve for them too. So there is time to kind of grow into some of these loans. So I think that's the other the other point that I wanted to make sure. We cover there so I think I covered.
Speaker Change: Your questions Im looking at Jcs Checkmate.
Julien: Alright, and then you've got a question for Chuck.
Speaker Change: Yes.
Speaker Change: Chuck.
Speaker Change: Coming back to the Moody's conversation, obviously credit accretive legislation that you acknowledged a moment ago.
Speaker Change: I didn't hear you necessary thing youre targeting anything higher than 17%. Despite some of the benefits you might be getting there per se right again, obviously, a big Capex program ahead of you.
Speaker Change: Your appointment simply to say that.
Speaker Change: Relative to peers your perception of what that downgrade threshold should be should be reduced but obviously given the enhanced credit accretive nature of what youre seeing in Oklahoma and Arkansas for that matter.
Speaker Change: You are advocating for a lower downgrade threshold consistent with your own internal targets.
What you have to say right.
Speaker Change: Yes, I mean, obviously I cant.
Speaker Change: Got to be careful about.
Speaker Change: I can't speak for Moody's, but yes, my position is that some of these these items that I discussed they have both qualitative and quantitative benefits too right.
Speaker Change: And so a lot of that Amit.
Speaker Change: Amit that qualitative side goes into.
Speaker Change: The the calculus on where those thresholds are so yeah, I would I would definitely argue relative to our peers.
Speaker Change: That would.
Speaker Change: Pointing that favorable direction, but again, that's moody's process and.
Speaker Change: We'll just see Hep C. How they determine that.
Speaker Change: And sorry quick clarification. It seems like you did fairly well for the start of the year is that tracking ahead of expectations or was that contemplated here in the guide.
Speaker Change: We're clearly on plan for the year.
Speaker Change: Again, reiterating our guidance.
Speaker Change: Where we put it out but definitely there is a positive tone to the start of the year and we're quite pleased with that.
Speaker Change: Awesome guys will keep Goin' alright, that's all curious to see what happens the next few weeks.
Speaker Change: Hey, good.
Speaker Change: Thank you <unk> for our next question.
Speaker Change: Our next.
Speaker Change: Question comes from the line of Steven <unk> of Ladenburg Thalmann. Your line is now open.
Steven: Guys. Thanks, very much for taking my question.
Speaker Change: Hey, good morning, it's Dave Good morning, Sean how are you.
Steven: Just.
Quickly wanted to follow up on the load growth discussion I know, we've talked about it a little bit already I'd like to focus more on the residential side I mean, clearly the industrial sales growth being down sounds transitory, but I'd like to hear a little bit about the durability of the 3% residential growth.
Steven: You were putting up something like 3% growth last year, and I think that that's probably a lot more margin accretive. So just interested to hear some comments around sales mix.
Steven: Yes, I mean, youre right residential we view as extremely important.
Steven: And.
Steven: And definitely.
It has been beneficial for us we've seen a lot of changes with <unk>.
Steven: Residential coming out of 2020, so I do think that some of that is kind of a continued rebound.
Steven: So.
Steven: I can't say, it's going to stay at 3%, that's obviously a fantastic number.
Steven: But I think.
Steven: Stepping back.
Steven: Looking at from a broader perspective, the trend is clearly positive.
Steven: And that's kind of underlined by the consistent customer growth that we have don't see that changing and then just the overall economic situation.
Speaker Change: Oklahoma and Western Arkansas.
Speaker Change: See that changing either so I think all the fundamentals are there for a directionally strong residential growth.
Speaker Change: Going forward.
Speaker Change: Thanks, That's really helpful have you guys given.
Speaker Change: On the EPS sensitivity for what 1%.
Speaker Change: Residential.
Speaker Change: Growth does to the numbers.
Speaker Change: We haven't just because kind of as you mentioned before there is a big.
Speaker Change: Different types of customers have.
Speaker Change: Have different.
Speaker Change: Our sensitivities.
Speaker Change: Did give on our our slides that we put out the first call. We did show just kind of overall, what our growth was and obviously you can do the simple math there for something but the caveat there is thats going to change from year to year, depending on on customer mix.
Speaker Change: Alright, that's all I had thanks very much congrats.
Speaker Change: Thanks. Thanks.
Speaker Change: Thank you for our next question again as a reminder to ask a question you will need to press star one on your telephone.
Speaker Change: And our next question comes from the line of Anthony <unk> of Mizuho. Your line is now open.
Speaker Change: Hey, good morning team.
Speaker Change: Looking forward to seeing a.
Speaker Change: Sean go on that what is that can you swallow them in the 2028 or 26 Olympic games.
Speaker Change: Right.
Anthony: I'm going to need a coach so I know you've got you've got coaching experience Anthony So I'm ready.
Speaker Change: Hey.
Speaker Change: Just a quick follow up I think that train of thought on the <unk> to debt downgrade threshold at 17.
Chuck: Chuck can you talk about a lot of items that.
Chuck: Do you believe are credit enhancing I just wanted to check all of the items you speak about that are credit enhancing our more external meaning the legislative or regulatory arena.
Chuck: <unk> actions.
Chuck: That <unk> is going to take actions.
Chuck: Gets into <unk>.
Chuck: We're actually gives you the 17% is that fair.
Chuck: Yes.
Chuck: Think thats fair, but again I think at a higher level, though.
Chuck: I think it's just continuing to build on our track record of success.
Chuck: The agencies, obviously have a very long term view and the longer you can prove that out and that's obviously up to us to continue to execute on but.
Chuck: That can only help us but no.
Chuck: I don't disagree with you.
Chuck: When they issued I think a recent report from Moody's I wondered if it was a month ago, but I apologize on the timing when they moved into negative outlook have you spoken to the agency. Since then because typically when they put a negative outlook I tried to resolve it within 12 months.
Chuck: 12 to 18 months is that correct.
Chuck: Yes, Yes, 12 months to 18 months is what they communicated to me.
Chuck: Great. Thank you so much for taking the questions.
Speaker Change: Thanks, Anthony take care.
Speaker Change: 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.
Sean Kim: Thank you Marvin and thank you everyone for joining us today and we appreciate your interest in <unk> energy. Please take care of yourselves and those around you.
Sean Kim: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
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Sean Kim: Okay.
Sean Kim: [music].
Yes.
Sean Kim: [music].
Sean Kim: Okay.
Sean Kim: Yes.
Sean Kim: [music].
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Hum.
[music].
Sean Kim: Yes.
Sean Kim: Yes.
Sean Kim: [music].
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Sure.
Sean Kim: [music].
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Sure.
Sean Kim: Yes.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Yes.
Sean Kim: Yes.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Sure.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Yes.
Sean Kim: Okay.
Sean Kim: Sure.
Sean Kim: Yes.
Sean Kim: Sure.
Sean Kim: Yes.
Sean Kim: [music].
Sean Kim: Yes.
Sean Kim: Okay.
Sean Kim: Yes.
Sean Kim: Yes.
Sean Kim: Okay.
Sean Kim: Sure.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Sure.
Sean Kim: Okay.
Sean Kim: Thank you.
Sean Kim: Okay.
Sean Kim: Yes.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Okay.
Sean Kim: Sure.