Q2 2026 OGE Energy Corp Earnings Call

July 29, 2026

Operator: Good day everyone, thank you for standing by. Welcome to OGE Energy Corp 2026 Q2 Earnings and Business Update Call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question-and-answer session. To ask a question, you will need to press star one one on your telephone. You will hear a message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. Now it's my pleasure to hand the conference to Cassandra Strange, Investor Relations Senior Manager, for opening comments.

Speaker #1: Good day, everyone, and thank you for standing by. Welcome to OGE Energy Corp 2026 second quarter earnings and business update call. At this time, all participants are in a listen-only mode.

Speaker #1: After the presentation, there will be a question-and-answer session. To ask a question, you will need to press star 11 on your telephone. You will then hear a message advising your hand is raised.

Speaker #1: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. Now, it's my pleasure to hand the conference to Casey Strange, Investor Relations Senior Manager.

Speaker #1: For opening comments.

Speaker #2: Thank you, Carmen, and good morning, everyone, and welcome to our call. With me today, I have Sean Trauschke, our Chairman, President, and CEO, and Chuck Walworth, our CFO.

Cassandra Strange: Thank you, Carmen, good morning everyone, welcome to our call. With me today, I have Sean Trauschke, our Chairman, President, and CEO, and Charles Walworth, our CFO. In terms of the call today, we will first hear from Sean, followed by an explanation from Chuck of financial results, and finally, as always, we will answer your questions. I would 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 would 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 to date.

Casey Strange: Thank you, Carmen, good morning everyone, welcome to our call. With me today, I have Sean Trauschke, our Chairman, President, and CEO, and Charles Walworth, our CFO. In terms of the call today, we will first hear from Sean, followed by an explanation from Chuck of financial results, and finally, as always, we will answer your questions. I would 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 would 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 to date.

Speaker #2: In terms of the call today, we will first hear from Sean, followed by an explanation from Chuck of Financial Results, and finally, as always, we will answer your questions.

Speaker #2: I would 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 #2: Before we begin the presentation, I would 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 to date.

Speaker #2: I will now turn the call over to Sean for his opening remarks. Sean?

Cassandra Strange: I will now turn the call over to Sean for his opening remarks. Sean?

Casey Strange: I will now turn the call over to Sean for his opening remarks. Sean?

Speaker #3: Thank you, Casey. Good morning, everyone. Thank you for joining us today. This morning, we reported consolidated earnings of $56 per share. Before Chuck discusses our second quarter financial results, I'll spend a few minutes on the actions and milestones that are shaping the remainder of 2026.

Sean Trauschke: Thank you, Casey. Good morning, everyone. Thank you for joining us today. This morning, we reported consolidated earnings of $0.56 per share. Before Chuck discusses our Q2 financial results, I'll spend a few minutes on the actions and milestones that are shaping the remainder of 2026. To start, I want to recognize our team for their stellar work following severe weather in June and July. In each instance, their response was both safe and swift and reflected the best of our company, a strong commitment to reliability and service to our customers. I'm grateful for our crews, operations, and customer service teams and everyone who was involved. We continue to make progress on several important filings that support our ability to serve growing customer needs while protecting affordability for our customers. We filed the Google special contract on 1 May in Oklahoma.

Speaker #3: To start, I want to recognize our team for their stellar work following severe weather in June and July, and each instance, their response was both safe and swift, and it reflected the best of our company: a strong commitment to reliability and service to our customers, and I'm grateful for our crews, operations, and customer service teams and everyone who was involved.

Speaker #3: We continue to make progress on several important filings that support our ability to serve growing customer needs, while protecting affordability for our customers. We filed the Google Special Contract on May 1st, in Oklahoma, and that filing now has a procedural schedule, and we are pleased to have a defined path forward and expect this matter to move toward resolution before the end of the year.

Sean Trauschke: That filing now has a procedural schedule, we're pleased to have a defined path forward and expect this matter to move toward resolution before the end of the year. On 17 June, we also filed our Oklahoma large load tariff. This filing establishes a framework for serving loads greater than 75 MW that is aligned with recently passed state legislation. Importantly, the tariff is designed to support economic development and new load growth while protecting existing customers. It also reflects the spirit of the White House Ratepayer Protection Pledge, which we've recently signed. I'll join the Oklahoma governor and legislative authors in a couple of weeks in support of Oklahoma's Data Center Consumer Ratepayer Protection Act. We're approaching consumer protections from all angles and leading the way with our tariff, which goes further than any of these other measures.

Speaker #3: On June 17th, we also filed our Oklahoma Large Load Tariff. This filing establishes a framework for serving loads greater than 75 megawatts that is aligned with recently passed state legislation.

Speaker #3: Importantly, the tariff is designed to support economic development and new load growth, while protecting existing customers. It also reflects the spirit of the White House Rate-Pair Protection Pledge, which we've recently signed.

Speaker #3: And I'll join the Oklahoma Governor and Legislative Authors in a couple of weeks in support of Oklahoma's Data Center Consumer Rate-Pair Protection Act. We're approaching consumer protections from all angles, and leading the way with our tariff, which goes further than any of these other measures.

Speaker #3: We're putting words into action by doing everything within our power to protect customers from increased costs. The key components of the tariff include funding upfront 100% of the cost to connect to the grid, a minimum 15-year commitment, minimum billing and collateral requirements, along with early termination and capacity reduction fees, a consumer protection charge—which provides a regulatory backstop if future impacts to existing customers emerge—and, lastly, our proposed customer affordability charge, which would benefit residential customers to the tune of $25 to $30 million annually for a typical 1-gigawatt data center.

Sean Trauschke: We're putting words into action by doing everything within our power to protect customers from increased costs. The key components of the tariff include funding upfront 100% of the cost to connect to the grid, a minimum 15-year commitment, minimum billing and collateral requirements, along with early termination and capacity reduction fees, a consumer protection charge, which provides a regulatory backstop if future impacts to existing customers emerge. Lastly, our proposed customer affordability charge would benefit residential customers to the tune of $25 million to $30 million annually for a typical 1 GW data center. Over time, we believe high energy demand customers like data centers can help bring down costs for all customers, but only when they connect to the grid under the regulated electricity model, which has consistently proven time and time again to provide the lowest cost electricity for all customers.

Speaker #3: Over time, we believe high-energy demand customers like data centers can help bring down costs for all customers. But only when they connect to the grid under the regulated electricity model, which is consistently proven time and time again to provide the lowest cost electricity for all customers.

Speaker #3: Our tariff proposal is one of the ways we balance growth, reliability, and affordability for the customers and communities we serve, while remaining aligned with the laws in Oklahoma and Oklahoma Corporation Commission policies.

Sean Trauschke: Our tariff proposal is one of the ways we balance growth, reliability, and affordability for the customers and communities we serve while remaining aligned with the laws in Oklahoma and Oklahoma Corporation Commission policies. Looking ahead, we remain focused on executing the key regulatory milestones that support our long-term plan. There is a positive proposed order for the Frontier Energy Storage Project from Commissioner Bingman's office, and we expect it to be adopted in short order. In 2026 alone, we will add 550 MW to the grid with Horseshoe Lake and Tinker. We will add another 300 MW next year from the Frontier Energy Storage Project. The Horseshoe Lake units 13, 14, and 29 will add another 450 MW.

Speaker #3: Looking ahead, we remain focused on executing the key regulatory milestones that support our long-term plan. There is a positive proposed order for the Frontier Storage Project from Commissioner Bingman's office, and we expect it to be adopted in short order.

Speaker #3: In 2026 alone, we will add 550 megawatts to the grid, with Horseshoe Lake and Tinker. We will add another 300 megawatts next year from the Frontier Storage Project.

Speaker #3: And the Horseshoe Lake units, 13 and 14 and 29, will add another 450 megawatts. We've averaged the addition of roughly 300 to 400 megawatts of capacity per year, and we'll need to increase that to meet the growing demand on our system.

Sean Trauschke: We've averaged the addition of roughly 300 to 400 MW of capacity per year, we will need to increase that to meet the growing demand on our system. We intend to make multiple filings throughout the balance of this year as we finalize evaluations and negotiations out of the RFP. You could possibly see a filing this quarter. We continue to prepare for an Oklahoma rate review this quarter as well, and we are also monitoring SPP transmission notices to construct, currently expected in Q4. There's certainly a lot to be excited about, our regulatory filings and policy efforts are designed to position the company for long-term success while making sure customers continue to benefit from a reliable, affordable system. That foundation supports the next phase of investments needed to serve increasing demand across our service area. Thank you.

Speaker #3: We intend to make multiple filings throughout the balance of this year as we finalize evaluations and negotiations out of the RFP. And you could possibly see a filing this quarter.

Speaker #3: We continue to prepare for an Oklahoma Rate Review this quarter as well. And we are also monitoring SPP transmission notices to construct, currently expected in the fourth quarter.

Speaker #3: And there's certainly a lot to be excited about, and our regulatory filings and policy efforts are designed to position the company for long-term success.

Speaker #3: We're making sure customers continue to benefit from a reliable, affordable system. That foundation supports the next phase of investments needed to serve increasing demand across our service area.

Speaker #3: Thank you, and now I'll turn the call over to Chuck. Chuck?

Sean Trauschke: Now I'll turn the call over to Chuck. Chuck?

Speaker #4: Thank you, Sean, and thank you, Casey. And good morning, everyone. I'm pleased to review 2026's second quarter results with you today. Let's start on slide 5.

Charles Walworth: Thank you, Sean, and thank you, Casey. Good morning, everyone. I'm pleased to review 2026's Q2 results with you today. Let's start on slide five. Consolidating net income was approximately $116 million, or $0.56 per diluted share, compared to $108 million, or $0.53 per share, in the same period of 2025. In our core business, the electric company achieved net income of approximately $120 million, or $0.58 per diluted share, compared to $108 million, or $0.53 per share, in the same period of 2025. The increase in net income was primarily driven by warm Q2 weather and lower depreciation and interest expense on assets placed in service, partially offset by higher O&M expense.

Chuck Walworth: Thank you, Sean, and thank you, Casey. Good morning, everyone. I'm pleased to review 2026's Q2 results with you today. Let's start on slide five. Consolidating net income was approximately $116 million, or $0.56 per diluted share, compared to $108 million, or $0.53 per share, in the same period of 2025. In our core business, the electric company achieved net income of approximately $120 million, or $0.58 per diluted share, compared to $108 million, or $0.53 per share, in the same period of 2025. The increase in net income was primarily driven by warm Q2 weather and lower depreciation and interest expense on assets placed in service, partially offset by higher O&M expense.

Speaker #4: Consolidating net income was approximately $116 million, or $56 per diluted share, compared to $108 million, or $53 per share, in the same period of 2025.

Speaker #4: In our core business, the electric company achieved net income of approximately $120 million, or $58 per diluted share, compared to $108 million, or $53 per share, in the same period of 2025.

Speaker #4: The increase in net income was primarily driven by warm second-quarter weather, and lower depreciation and interest expense on assets placed in service partially offset by higher own income expense.

Speaker #4: The holding company reported a loss of approximately $4 million, or $0.02 per diluted share, compared to a loss of less than $1 million in the same period of 2025.

Charles Walworth: The holding company reported a loss of approximately $4 million, or $0.02 per diluted share, compared to a loss of less than $1 million in the same period of 2025. The increased loss was primarily due to higher interest expense and a one-time benefit related to legacy midstream operations that was recognized in 2025, which was partially offset by increased other income. Stronger weather in the Q2 has offset a portion of the Q1 headwind. With nearly 70% of our expected annual earnings still ahead of us, we remain confident in our outlook and are reaffirming our 2026 consolidated earnings guidance range of $2.38 to $2.48 per share, with a midpoint of $2.43. We continue to see strong demand across our service area, along with steady customer growth of approximately 1%.

Chuck Walworth: The holding company reported a loss of approximately $4 million, or $0.02 per diluted share, compared to a loss of less than $1 million in the same period of 2025. The increased loss was primarily due to higher interest expense and a one-time benefit related to legacy midstream operations that was recognized in 2025, which was partially offset by increased other income. Stronger weather in the Q2 has offset a portion of the Q1 headwind. With nearly 70% of our expected annual earnings still ahead of us, we remain confident in our outlook and are reaffirming our 2026 consolidated earnings guidance range of $2.38 to $2.48 per share, with a midpoint of $2.43. We continue to see strong demand across our service area, along with steady customer growth of approximately 1%.

Speaker #4: The increased loss was primarily due to higher interest expense and a one-time benefit related to legacy midstream operations that was recognized in 2025, which was partially offset by increased other income.

Speaker #4: Stronger weather in the second quarter has offset a portion of the first quarter headwind. With nearly 70% of our expected annual earnings still ahead of us, we remain confident in our outlook and are reaffirming our 2026 consolidated earnings guidance range of $2.38 to $2.48 per share, with a midpoint of $2.43.

Speaker #4: We continue to see strong demand across our service area, along with steady customer growth of approximately 1%. Two current large customers have shifted portions of the ramp schedules, thereby pushing a couple hundred megawatts further into the year.

Charles Walworth: Two current large customers have shifted portions of their ramp schedules, thereby pushing a couple hundred MW further into the year. While the timing has shifted, customer commitments remain firmly in place. Just last week, we set a new all-time peak of over 6,800 MW, exceeding the prior record set in August 2024 by roughly 180 MW. We're clearly excited about the opportunities ahead. Turning to the capital plan, the initiatives Sean outlined continue to advance, providing greater clarity around future capital requirements. Together, they represent the next phase of our infrastructure investment needed to support increasing customer demand across our service area. By expanding system capacity and capability, these investments extend our growth runway and strengthen our long-term growth profile. They're also building momentum across our business and reinforcing the foundation for future value creation.

Chuck Walworth: Two current large customers have shifted portions of their ramp schedules, thereby pushing a couple hundred MW further into the year. While the timing has shifted, customer commitments remain firmly in place. Just last week, we set a new all-time peak of over 6,800 MW, exceeding the prior record set in August 2024 by roughly 180 MW. We're clearly excited about the opportunities ahead. Turning to the capital plan, the initiatives Sean outlined continue to advance, providing greater clarity around future capital requirements. Together, they represent the next phase of our infrastructure investment needed to support increasing customer demand across our service area. By expanding system capacity and capability, these investments extend our growth runway and strengthen our long-term growth profile. They're also building momentum across our business and reinforcing the foundation for future value creation.

Speaker #4: While the timing has shifted, customer commitments remain firmly in place. And just last week, we set a new all-time peak of over $6,800 megawatts, exceeding the prior record set in August 2024 by roughly $180 megawatts.

Speaker #4: We're clearly excited about the opportunities ahead. Turning to the capital plan, the initiative Sean outlined continued to advance. Providing greater clarity around future capital requirements.

Speaker #4: Together, they represent the next phase of our infrastructure investment needed to support increasing customer demand across our service area. By expanding system capacity and capability, these investments extend our growth runway and strengthen our long-term growth profile.

Speaker #4: They're also building momentum across our business and reinforcing the foundation for future value creation. Over the balance of the year, we expect a further refined project scope, timing, and capital needs, as these initiatives move through the approval process.

Charles Walworth: Over the balance of the year, we expect to further refine project scope, timing, and capital needs as these initiatives move through the approval process. As projects advance and key approvals are received, we will expect to provide multiple capital updates and will update our financing strategy accordingly. Turning to financing, we have completed all planned financing activities for 2026 and continue to target credit supportive metrics, including maintaining FFO to debt of approximately 17% over the planning horizon. In closing, we continue to execute from a position of strength. We've reaffirmed our 2026 guidance and are advancing the regulatory and capital initiatives that will help shape the next phase of growth. We remain focused on balancing customer affordability with disciplined investment and believe we are well-positioned to deliver sustainable value for our customers and shareholders for many years to come.

Chuck Walworth: Over the balance of the year, we expect to further refine project scope, timing, and capital needs as these initiatives move through the approval process. As projects advance and key approvals are received, we will expect to provide multiple capital updates and will update our financing strategy accordingly. Turning to financing, we have completed all planned financing activities for 2026 and continue to target credit supportive metrics, including maintaining FFO to debt of approximately 17% over the planning horizon. In closing, we continue to execute from a position of strength. We've reaffirmed our 2026 guidance and are advancing the regulatory and capital initiatives that will help shape the next phase of growth. We remain focused on balancing customer affordability with disciplined investment and believe we are well-positioned to deliver sustainable value for our customers and shareholders for many years to come.

Speaker #4: As projects advance and key approvals are received, we expect to provide multiple capital updates and will update our financing strategy accordingly. Turning to financing, we have completed all planned financing activities for 2026 and continue to target credit-supportive metrics, including maintaining FFO to debt of approximately 17% over the planning horizon.

Speaker #4: In closing, we continue to execute from a position of strength. We've reaffirmed our 2026 guidance and are advancing the regulatory and capital initiatives that will help shape the next phase of growth.

Speaker #4: We remain focused on balancing customer affordability with disciplined investment and believe we are well-positioned to deliver sustainable value for our customers and shareholders for many years to come.

Speaker #4: With that, I'll turn it back to Sean, and we'll be happy to take your questions.

Charles Walworth: With that, I'll turn it back to Sean, and we'll be happy to take your questions.

Chuck Walworth: With that, I'll turn it back to Sean, and we'll be happy to take your questions.

Speaker #1: Thank you. As a reminder, if you do have a question, please press star 1-1 and wait for your name to be announced. To withdraw your question, simply press star 1-1 again.

Operator: Thank you. As a reminder, if you do have a question, please press star 11 and wait for your name to be announced. To withdraw your question, simply press star 11 again. Our first question is from Char Puresso with Wells Fargo.

Speaker #1: Our first question is from Sharpe Uressa with Wells Fargo.

Speaker #5: Good morning, team. This is Whitney Mutalamo dialing in for Shar.

Whitney Mutalamo: Good morning, team. This is Whitney Mutalamo dialing in for Char.

Whitney Mutalemwa: Good morning, team. This is Whitney Mutalamo dialing in for Char.

Speaker #3: Good morning.

Sean Trauschke: Good morning.

Speaker #5: Fantastic. So on the Rate Review now in the third quarter, can you frame the scope for us specifically whether the quip request for Hershey Lake 13 and 14 could possibly sit inside that case?

Whitney Mutalamo: Fantastic. On the rate review now in Q3, can you frame the scope for us, specifically whether the CWIP request for Horseshoe Lake 13 and 14 could possibly sit inside that case? If the Supreme Court rules while that case is pending, does CWIP get picked up there, or does it need its own docket? If you could provide any other update on the procedure.

Whitney Mutalemwa: Fantastic. On the rate review now in Q3, can you frame the scope for us, specifically whether the CWIP request for Horseshoe Lake 13 and 14 could possibly sit inside that case? If the Supreme Court rules while that case is pending, does CWIP get picked up there, or does it need its own docket? If you could provide any other update on the procedure.

Speaker #5: And if the Supreme Court rules, while that case is pending, does quip get picked up there, or does it need its own docket? And if you could provide any other update on the procedure.

Speaker #3: Yeah. Thank you. Thank you for the question, Whitney. The rate case that we will file this quarter in Oklahoma will be generally distribution additions to our system and normal expansion.

Sean Trauschke: Thank you. Thank you for the question, Whitney. The rate case that we will file this quarter in Oklahoma will be generally distribution additions to our system and normal expansion. It does not include any generation capacity that was in there. We go through a pre-approval process for those 13 and 14 is captured in that process. There will not be, in the rate case, any generation. It'll just be the normal course of business, run-of-the-mill distribution, substation additions, things like that. Chuck, you got anything to add to that?

Speaker #3: It does not include any generation capacity that was in there. That's we go through a pre-approval process for those, and 13 and 14 is captured in that process.

Speaker #3: So there will not be in the rate case any generation; it'll just be the normal course of business, run-of-the-mill distribution substation additions, things like that.

Speaker #3: Chuck, you got anything to add to that?

Speaker #4: No, I think that sums it up. It's really a separate issue.

Charles Walworth: No, I think that sums it up. It's really a separate issue.

Chuck Walworth: No, I think that sums it up. It's really a separate issue.

Speaker #5: Great. Thank you. Obviously, on the tariff, the protections are clearly built around the minimum billing demand over a long term. But how are you thinking about a large customer that wants to self-supply some of its load?

Whitney Mutalamo: Great. Thank you. Obviously, on the tariff, the protections are clearly built around the minimum billing demand over a long term. How are you thinking about a large customer that wants to self-supply some of its load? Does the tariff as filed hold up in that case? That's it for me. Thank you.

Whitney Mutalemwa: Great. Thank you. Obviously, on the tariff, the protections are clearly built around the minimum billing demand over a long term. How are you thinking about a large customer that wants to self-supply some of its load? Does the tariff as filed hold up in that case? That's it for me. Thank you.

Speaker #5: And does the tariff, as filed, hold up in that case? That's it for me. Thank you.

Speaker #4: So, thanks for the question. We have filed a large load tariff, which we think really goes above and beyond the legislation that was passed here in Oklahoma.

Charles Walworth: Thanks for the question. We have filed a large load tariff, which we think really goes above and beyond the legislation that was passed here in Oklahoma, to protect customers from these large impacts of large loads. Also really above and beyond the recently White House pledge in that area. Again, as Sean stated in his remarks, we believe that due to the network benefits of the fully regulated utility model, that that is the way to achieve the best outcome for all customer types, large data centers and traditional customers as well.

Chuck Walworth: Thanks for the question. We have filed a large load tariff, which we think really goes above and beyond the legislation that was passed here in Oklahoma, to protect customers from these large impacts of large loads. Also really above and beyond the recently White House pledge in that area. Again, as Sean stated in his remarks, we believe that due to the network benefits of the fully regulated utility model, that that is the way to achieve the best outcome for all customer types, large data centers and traditional customers as well.

Speaker #4: To protect customers from these large impacts of large loads, and also really above and beyond the recent White House pledge in that area. So again, as Sean stated in his remarks, we believe that due to the network benefits of the fully regulated utility model, that is the way to achieve the best outcome for all customer types.

Speaker #4: Large data centers and traditional customers as well.

Speaker #1: One moment for any questions. Thank you. Our next question comes from the line of Nick Campanella with Barclays.

Operator: One moment for our next.

Operator: One moment for our next. [crosstalk]

Whitney Mutalamo: Great. Sounds good. Thank you.

Whitney Mutalemwa: Great. Sounds good. Thank you. [crosstalk]

Operator: Thank you. Our next question comes from the line of Nick Campanella with Barclays.

Speaker #6: How are you doing? This is Michael Brown for Nicholas Campanella.

Michael Brown: How are you doing? This is Michael Brown on for Nicholas Campanella.

Speaker #3: Good morning, Michael.

Charles Walworth: Morning, Michael.

Chuck Walworth: Morning, Michael.

Speaker #6: Good morning. I know you're targeting to announce the NTC in the fourth quarter, but would that be before or after EI?

Michael Brown: Good morning. I know you're targeting to announce the NTC in Q4. Would that be before or after EEI?

Sean Trauschke: Well, we'd hope it'd be before EEI, but we're not necessarily in control of the award of the NTC. We'll certainly announce it when we receive it.

Speaker #3: Well, we'd hope it'd be before EI, but we're not necessarily in control of the award of the NTC. So we'll certainly announce it when we receive it.

Speaker #6: My next thank you. My next question is, could you clarify the 200 megawatts that was shifted into the year, or is that correct? The ramp schedule of your two customers?

Michael Brown: Thank you. My next question is, could you clarify the 200 MW that was shifted into the year, or is that correct? The ramp schedule of your two customers?

Speaker #3: Yeah. Yeah, Michael. So it's really like we've said all along with some of these large loads it's difficult to pinpoint the exact quarter, the exact day that they start, and to the extent that they that shift, that obviously can have a little bit of an impact on the near term.

Charles Walworth: Yeah, Michael. It's really like we've said all along with some of these large loads, it's difficult to pinpoint the exact quarter or the exact day that they start. To the extent that shifts, that obviously can have a little bit of an impact on the near term. What I can say, if it wasn't clear in my comments, was that these customers are currently online. They just started their ramp a little bit later in the year than we originally anticipated, really due to some issues on their side. Definitely they're ramping up and we have full confidence that that load will come on shortly.

Chuck Walworth: Yeah, Michael. It's really like we've said all along with some of these large loads, it's difficult to pinpoint the exact quarter or the exact day that they start. To the extent that shifts, that obviously can have a little bit of an impact on the near term. What I can say, if it wasn't clear in my comments, was that these customers are currently online. They just started their ramp a little bit later in the year than we originally anticipated, really due to some issues on their side. Definitely they're ramping up and we have full confidence that that load will come on shortly.

Speaker #3: But what I can say, if it wasn't clear in my comments, was that these customers are currently online. They just started their ramp a little bit later in the year than we originally anticipated, really due to some issues on their side.

Speaker #3: But definitely they're ramping up, and we have full confidence that that load will come on shortly.

Speaker #6: Thank you. That's it for my questions.

Michael Brown: Thank you. That's it for my question.

Speaker #1: Thank you. Our next question is from Julian Dumoulin-Smith with Jefferies.

Whitney Mutalamo: Thank you. Our next question is from Julien Dumoulin-Smith with Jefferies.

Operator: Thank you. Our next question is from Julien Dumoulin-Smith with Jefferies.

Speaker #7: Yeah, hi. Good morning. It's Brian Ruscelan for Julian.

Brian Newson: Yeah. Hi, good morning. It's Brian Newson on for Julien.

Brian Russo: Yeah. Hi, good morning. It's Brian Newson on for Julien.

Speaker #3: Hey, good morning, Brian.

Sean Trauschke: Hey, good morning, Brian.

Speaker #7: Hey, good morning, Sean. Hey, just to follow up on the terminal to Shreveport line, I'm assuming they get the notice to construct. As early as October, what are the next steps in terms of rights of way?

Brian Newson: Hey, good morning, Sean. Hey, just to follow up on the Seminole to Shreveport line. Assuming we get the notice to construct as early as October, what are the next steps in terms of rights of way, construction timing, and commercial operation date? I know it's preliminary. Any updated cost estimates on that.

Brian Russo: Hey, good morning, Sean. Hey, just to follow up on the Seminole to Shreveport line. Assuming we get the notice to construct as early as October, what are the next steps in terms of rights of way, construction timing, and commercial operation date? I know it's preliminary. Any updated cost estimates on that.

Speaker #7: Construction timing, and commercial operation date, I know it's preliminary. And then any updated cost estimates on that.

Speaker #3: Yeah, I think in the notice construct, there's a process there where we would respond back to the SPP with the confirmation of the cost, the routing, and the in-service timeline.

Sean Trauschke: Yeah, I think in the notice construct, there's a process there where we would respond back to the SPP with the confirmation of the cost, the routing, and the in-service timeline for final approval. Then once that's kind of ratified, we're off and running. I think you should expect us to be able to deliver to you what the cost or the investment schedule is by year, the timing, and just any financing needs that would be associated with that. I think there's

Speaker #3: For final approval, and then once that's kind of ratified, we're off and running. And I think you should expect us to be able to deliver to you kind of what the cost or the investment schedule is by year, the timing, and just kind of any financing needs that would be associated with that.

Speaker #3: So I think there's.

Speaker #7: Okay, understood.

Brian Newson: Okay, understood

Brian Russo: Okay, understood

Sean Trauschke: we have a little bit. Brian, just to clarify that, there'll be a lot more clarity when we get the NTC, but it's really going to be incumbent upon us to ratify that with routing, schedule, and costs.

Speaker #3: There'll be some so Brian, just to clarify that, there'll be some a lot more clarity when we get the NTC, but it's really going to be in coming upon us to kind of ratify that with routing schedule and costs.

Speaker #7: Okay, got it. Any thoughts on the upcoming SPP ITP for 2026? There are indications that it could be much larger than the 2025 ITP, which the seminal Shreveport line was a part of, and which was arguably lower than many of us expected.

Brian Newson: Okay, got it. Any thoughts on the upcoming SPP ITP for 2026? There's indications that it could be much larger than the 2025 ITP, which Seminole-Shreveport line was a part of, which was arguably lower than many of us expected. Just wondering where OGE, any assets in Oklahoma to participate in the upcoming ITP.

Brian Russo: Okay, got it. Any thoughts on the upcoming SPP ITP for 2026? There's indications that it could be much larger than the 2025 ITP, which Seminole-Shreveport line was a part of, which was arguably lower than many of us expected. Just wondering where OGE, any assets in Oklahoma to participate in the upcoming ITP.

Speaker #7: Just wondering where OG, any sets in Oklahoma to participate in the upcoming ITP.

Speaker #3: Yeah, I think there's certainly a lot of discussion about potential opportunities. The ultimate decision there, it hasn't been made whether it's going to be '26 is going to be greater or smaller than '25.

Sean Trauschke: Yeah, I think there's certainly a lot of discussion about potential opportunities. The ultimate decision there hasn't been made and whether 2026 is going to be greater or smaller than 2025. There's a lot of different thoughts, a lot of different discussions going on. We're certainly engaged in those discussions, and we would expect to be a very active participant in the construction of transmission in Oklahoma.

Speaker #3: There are a lot of different thoughts, a lot of different discussions going on. So we're certainly engaged in those discussions, and we would expect to be a very active participant in the construction of transmission in Oklahoma.

Speaker #7: Okay, one last question.

Brian Newson: Okay, one last question.

Brian Russo: Okay, one last question. [crosstalk]

Sean Trauschke: I don't know, Brian. We can't forecast that for you at this point.

Speaker #3: I don't know, Brian. We can't forecast that for you at this point.

Speaker #7: Okay. And then just one last thing on the SPP, the accreditations for renewables, seem to be becoming more stringent. Does that bias you towards gas generation in these pending 2026 RFPs?

Brian Newson: Okay. Just one last thing. On the SPP, the accreditations for new renewables seem to be becoming more stringent. Does that bias you towards gas generation in these pending 2026 RFPs?

Brian Russo: Okay. Just one last thing. On the SPP, the accreditations for new renewables seem to be becoming more stringent. Does that bias you towards gas generation in these pending 2026 RFPs?

Speaker #3: I think so. I think directionally, that is a big criteria in terms of the dollar of a credit the dollar cost of a credited capacity.

Sean Trauschke: I think so. I think directionally, that is a big criteria in terms of the dollar cost of accredited capacity. We do focus on the price of the product. I think it does kind of lend you towards more thermal assets.

Speaker #3: But we do focus on the price of the product. But I think it does kind of lend you towards more thermal assets.

Speaker #7: Great. Thank you very much.

Brian Newson: Great. Thank you very much.

Brian Russo: Great. Thank you very much.

Speaker #3: Thanks, Brian.

Sean Trauschke: Thanks, Brian.

Speaker #1: Thank you so much. Our next question comes from David Arcaro with Morgan Stanley.

Operator: Thank you so much. Our next question comes from David Arcaro with Morgan Stanley.

Speaker #8: Hey, thanks. Good morning.

David Arcaro: Hey, thanks. Morning.

Speaker #3: Good morning.

Sean Trauschke: Good morning.

David Arcaro: Just to check in. Has there been any progress on large load negotiations with new customers, and potentially, working towards converting those into contracts?

Speaker #8: What is the check-in? Has there been any progress on large load negotiations with new customers and potentially working toward converting those into contracts?

Speaker #3: Yes. I think the short answer is yes. I think we continue to have those discussions. We're moving forward. And I think the submittal and the finalization of our large load tariff provides that clarity for those large loads to understand the how things are going to work in Oklahoma.

Sean Trauschke: Yes. I think the short answer is yes. I think we continue to have those discussions. We're moving forward. I think the submittal and the finalization of our large load tariff provides that clarity for those large loads to understand how things are going to work in Oklahoma. They are progressing and we're not backing off of the six or seven active negotiations we're in the middle of right now.

Speaker #3: So they are progressing, and we're not backing off of the six or seven active negotiations we're in the middle of right now.

Speaker #8: Got it. That makes sense. And any surprises, just around what you're seeing in load growth or new customer interest in your service territory that would cause you to reassess, re-look at the load growth outlook?

David Arcaro: Got it. That makes sense. Any surprises just around what you're seeing in load growth or new customer interest in your service territory that would cause you to reassess, relook at the load growth outlook?

Speaker #3: Not nothing's coming to mind right now sitting here Chuck and I are looking at each other and nothing came to mind. It's all systems go, and full steam ahead.

Sean Trauschke: Nothing's coming to mind right now. Sitting here, Chuck and I are looking at each other and nothing came to mind. It's all systems go and full steam ahead.

Speaker #8: Yeah. Gotcha. Gotcha. And then could you maybe just refresh on your latest thinking on when the right time frame would be for revisiting the CapEx and the earnings outlook, just as you chip away at some of the upcoming milestones?

David Arcaro: Yeah. Got you. Could you maybe just refresh on your latest thinking on when the right timeframe would be for revisiting the CapEx and the earnings outlook, just as you chip away at some of the upcoming milestones?

Speaker #3: Yeah, I think the way you said it there, as we chip away at it, I think Chuck and I would—it'd be neat if we could tidy all this up in one big release.

Sean Trauschke: Yeah. I think the way you said it there is we chip away at it. Chuck and I, it'd be neat if we could tidy all this up in one big release. The opportunities and the growth, quite frankly, are just going to be continual. We're going to continually update this. If we receive the approval from Tier, you should expect an update there. On the NTCs from the SPP, you should expect an update there. Approvals of these filings we're going to make over the balance of 2026 for generation, you should expect updates there. Obviously, just like we did last year, we'll lay that out for you in terms of the earnings impact and the financing plan. We'll make it easy.

Speaker #3: But the opportunities and the growth, quite frankly, are just going to be continual. So we're going to continually update this if we receive the approval from Tier.

Speaker #3: You should expect an update there. On the NTCs from the SPP, you should expect an update there. Approvals of these filings, we're going to make over the balance of '26.

Speaker #3: We're generation. You should expect updates there. And obviously, just like we did last year, we'll lay that out for you in terms of the earnings impact and the financing plan.

Speaker #3: We'll make it easy.

Speaker #8: Awesome. Understood. That makes sense. Thanks so much.

David Arcaro: Awesome. Understood. That makes sense. Thanks so much.

Speaker #3: Thanks.

Sean Trauschke: Thanks.

Speaker #1: Thank you so much. And our next question comes from Aiden Kelly with JP Morgan.

Operator: Thank you so much. Our next question comes from Aidan Kelly with JPMorgan.

Speaker #9: Hi, good morning. Thanks for the time today. Just want to pick up again on that growth outlook front. Clearly, you have a lot of upside opportunities as you outlined.

Aidan Kelly: Hi. Good morning. Thanks for the time today. Just want to pick up again on that growth outlook front. Clearly you have a lot of upside opportunities as you outlined, and it's got many thinking about kind of upside bias to the prevailing CAGR. I guess my question is, how do you intend to kind of message that outlook moving forward? Do you see any possibility of rebasing or a plus mark after growth? Just what makes the most sense in this kind of backdrop for you?

Speaker #9: And it's got many thinking about kind of upside bias to the prevailing CAGR, I guess my question is, how do you intend to kind of message that outlook moving forward?

Speaker #9: Do you see any possibility of rebasing or a plus mark after growth? Just what makes the most sense in this kind of this backdrop for you?

Speaker #3: Aiden, thanks for the question. I think we're obviously going to take it one step at a time as these opportunities continue to roll in.

Charles Walworth: Aidan, thanks for the question. I think we're obviously going to take it one step at a time as these opportunities continue to roll in. As Sean mentioned, we see really a long conveyor belt of opportunities. Multiple chances for that. You mentioned rebasing. That's something that we have done already in the past where we've grown off of the higher trend line from previous year's guidance. I think we'll take a look at all those things, but I think what's paramount is that we effectively communicate to you the opportunity set that we have in front of us, and how we're going to finance that. I think that's probably the more clarity that you all need. We'll definitely work on that front.

Chuck Walworth: Aidan, thanks for the question. I think we're obviously going to take it one step at a time as these opportunities continue to roll in. As Sean mentioned, we see really a long conveyor belt of opportunities. Multiple chances for that. You mentioned rebasing. That's something that we have done already in the past where we've grown off of the higher trend line from previous year's guidance. I think we'll take a look at all those things, but I think what's paramount is that we effectively communicate to you the opportunity set that we have in front of us, and how we're going to finance that. I think that's probably the more clarity that you all need. We'll definitely work on that front.

Speaker #3: And as Sean mentioned, we see really a long conveyor belt of opportunities, so multiple chances for that. You mentioned rebasing; that's something that we have done.

Speaker #3: Already in the past, where we've grown off of the higher trend line from previous years' guidance. So I think we'll take a look at all those things.

Speaker #3: But I think what's paramount is that we effectively communicate to you the opportunity set that we have in front of us, and how we're going to finance that.

Speaker #3: And that's—I think that's probably the more clarity that you all need. So we'll definitely work on that front.

Speaker #9: Great, thanks, Chuck. And do you expect both the CapEx and equities to be increased piecemeal, or do you try to have more chunky updates in future years?

Aidan Kelly: Great. Thanks, Chuck. Do you expect both the CapEx and equity needs to be increased piecemeal, or do you kind of try and have more chunky updates in future years?

Speaker #3: Well, we'll look at it as it comes through. But again, as Sean said, we're not going to be able to tie it all up in one big package.

Charles Walworth: Well, we'll look at it as it comes through, again, as Sean said, we're not going to be able to tie it all up in one big package. Yeah, we'll look at it in chunks and discuss it as such as they come across.

Chuck Walworth: Well, we'll look at it as it comes through, again, as Sean said, we're not going to be able to tie it all up in one big package. Yeah, we'll look at it in chunks and discuss it as such as they come across.

Speaker #3: So yeah, we'll look at it in chunks and discuss it as such as they come across.

Speaker #9: Okay, great. I appreciate the time today. Thanks.

Aidan Kelly: Okay, great. Appreciate the time today. Thanks.

Speaker #3: Thank you. Thank you.

Sean Trauschke: Thank you.

Charles Walworth: Thank you.

Chuck Walworth: Thank you.

Speaker #1: Thank you so much. Our next question comes from Paul Fremont with Lottenberg Taumann.

Operator: Thank you so much. Our next question comes from Paul Fremont with Ladenburg Thalmann.

Speaker #10: Hey, congratulations. I had a really good experience.

Paul Fremont: Hey, congratulations on a really great.

Sean Trauschke: Hey. Morning, Paul. Good morning.

Speaker #11: Morning, Paul.

Speaker #10: Good morning.

Paul Fremont: Good morning. I just want to understand, you've got an FFO to debt target of 17%. In the past, what we've seen in order for you to maintain the very strong credit metrics that you're targeting, you've essentially used PPAs on some of the new construction to spread out some of the timing of new construction in order, I guess, in part, to maintain a strong balance sheet. Should we continue to expect that would occur on future spending? Or are you willing to allow FFO to debt metrics, at least for a temporary period of time, to go to lower levels until the projects are online and producing significant contribution?

Speaker #11: Good morning.

Speaker #10: I just want to understand sort of you've got an FFO to debt target of 17%. In the past, what we've seen in order for you to maintain sort of the very strong credit metrics that you're targeting, you've essentially used PPAs on some of the new construction to spread out some of the timing.

Speaker #10: Of new construction in order I guess in part to maintain a strong balance sheet. Should we continue to expect that that would occur sort of on future spending or are you willing to sort of allow FFO to debt metrics at least for a temporary period of time to go to lower levels until the projects are online and producing significant contributions?

Speaker #3: Yeah. Paul, maybe Chuck and I will tag-team this one a bit. As it relates to our capacity planning, we've utilized some short-term bridge PPAs to get us through the construction cycle.

Sean Trauschke: Yeah. Paul, maybe Chuck and I will tag team this one a bit. As it relates to our capacity planning, we've utilized some short-term bridge PPAs to get us through the construction cycle. That's what we use the PPAs for. It's not a mechanism we've been using to manage FFO or anything like that. Chuck, maybe you could talk a little bit about your projection for FFO.

Speaker #3: And so that's what we used the PPAs for. And it's not a mechanism we've been using to manage FFO or anything like that. And Chuck, maybe you could talk a little bit about your projection for FFO.

Speaker #2: Yeah. So Paul, as we indicate, in our remarks, we do target 17%. Now, obviously, as you know well, there's going to be some ebb and flow to that number.

Charles Walworth: Yeah. Paul, as we indicate in our remarks, we do target 17%. Obviously, as you know well, there's going to be some ebb and flow to that number. That being said, it's important for us to maintain basically in that ZIP code. We showed it with the equity deal we did last November. We've also acknowledged that there's a whole host of tools out there to help with our capital stack. We'll look at all of those in order to maintain that, as well as taking advantage of items like CWIP financing for the large transmission project that we've been talking about earlier this morning. We've got a lot of tools at our disposal in order to meet that commitment.

Chuck Walworth: Yeah. Paul, as we indicate in our remarks, we do target 17%. Obviously, as you know well, there's going to be some ebb and flow to that number. That being said, it's important for us to maintain basically in that ZIP code. We showed it with the equity deal we did last November. We've also acknowledged that there's a whole host of tools out there to help with our capital stack. We'll look at all of those in order to maintain that, as well as taking advantage of items like CWIP financing for the large transmission project that we've been talking about earlier this morning. We've got a lot of tools at our disposal in order to meet that commitment.

Speaker #2: But that being said, it's important for us to maintain, basically, in that zip code. And we showed it with our—the equity deal we did last November.

Speaker #2: And we've also acknowledged that there's a whole host of tools out there to help with our capital stack. And we'll look at all of those.

Speaker #2: In order to maintain that, as well as taking advantage of items like CWIP financing for the large transmission project that we've been talking about earlier this morning.

Speaker #2: So, we've got a lot of tools at our disposal in order to meet that commitment.

Speaker #10: And then, I guess, in terms of turbine resources, do you see any issues for any of the RFPs that you're currently involved in, in terms of procuring the generation resources that are necessary for the RFPs?

Paul Fremont: I guess, in terms of turbine resources, do you see any issues for any of the RFPs that you're currently involved in terms of procuring the generation resources that are necessary in terms of the RFPs?

Speaker #3: Yeah. We're going through that evaluation right now. And we're doing it as quickly as we can. But we feel like we're in pretty good shape.

Sean Trauschke: Yeah, we're going through that evaluation right now, and we're doing it as quickly as we can. We feel like we're in pretty good shape.

Speaker #10: And then maybe last question for me, for Shreveport to Seminole, is there any sort of determination on the split in miles for construction between you and AEP?

Paul Fremont: Then maybe last question from me. For Shreveport to Seminole, is there any sort of determination on the split in miles for construction between you and AEP?

Speaker #3: Yeah. We're still working through that.

Sean Trauschke: Yeah, we're still working through that.

Speaker #10: So that would be known when they provide the NTC? We would sort of have the answer to that by then?

Paul Fremont: That would be known when they provide the NTC? We would have the answer to that by then?

Sean Trauschke: Oh, absolutely. Because part and parcel of that is kind of the ultimate resolution of the routing. Yeah.

Speaker #3: Oh, absolutely. Absolutely. routing. Yeah.

Speaker #10: Great. That's it for me. Thank you.

Paul Fremont: Great. That's it for me. Thank you.

Speaker #3: Thanks, Paul. Have a great

Sean Trauschke: Thanks, Paul. Have a great day.

Speaker #1: Thank you so much. And as a reminder, if you do have a question, simply press star 11 to get in the queue. One moment.

Operator: Thank you so much. As a reminder, if you do have a question, simply press star one one to get in the queue. One moment. We have a question from Stephen D'Ambrisi with RBC Capital Markets. Please proceed.

Speaker #1: We have a question from Steve Diambrisi with RBC Capital Markets. Please proceed.

Speaker #9: Hey, Sean. Hey, Chuck. Thanks for taking the time this morning. Appreciate it. Good morning. Just had a quick one, kind of a follow-up on Brian's question about 2026 SPP ITP process.

Stephen D'Ambrisi: Hey, Sean. Hey, Chuck. Thanks for taking the time this morning. Appreciate it.

Sean Trauschke: Hey, good morning, Steve.

Stephen D'Ambrisi: Good morning. Just had a quick one, kind of a follow-up on Brian's question about 2026 SPP ITP process. Obviously, it's early. I understand there's a lot of options that are being thrown around. Can you just remind us what in Oklahoma, if you have a ROFR on transmission that ends up in your substations or in your service territory, or how that works? I think there was some legislation. Maybe it went to the FERC. Just looking at some of these maps that are in these ITP presentations, it looks like a lot of these potential 765 lines terminate at your substations.

Speaker #9: Obviously, it's early and I understand there's a lot of options that are being thrown around, but can you just remind us what in Oklahoma, if they're if you have a rofer on transmission that ends up in your substations or in your service territory, or how that works?

Speaker #9: I think there was some legislation, but maybe it went to the FERC. Because just looking at the map—some of these maps that are in these ITP presentations—it looks like a lot of these potential 765 kV lines terminate at your substations.

Speaker #3: Yes. So I'm familiar with that map. So, in general terms, to the extent that it is determined by the SPP that these are reliability projects—meaning we need to add transmission to support the reliability of the system—then the general rule is that is directed to the owners of the originating and terminating substation.

Sean Trauschke: Yes. I'm familiar with that map. In general terms, to the extent that it is determined by the SPP that these are reliability projects, meaning we need to add transmission to support the reliability of the system, the general rule is that is directed to the owners of the originating and terminating substation. Hence, that's the Seminole to Shreveport line. To the extent that there are lines that may be more economic or forward-looking, those would be a competitive opportunity. To the extent that a particular state has a ROFR, that would probably trump the competitive direction that the SPP had. Does that help?

Speaker #3: And hence, that's the Seminole to Shreveport line. To the extent that there are lines that may be more economic or forward-looking, those would be a competitive opportunity.

Speaker #3: And so, to the extent that a particular state has a ROFR, then that would probably trump the competitive direction that the SPP had. Does that help?

Speaker #9: Yeah. Did that get clarified in Oklahoma yet, whether or not you have a ROFR? I think not yet.

Stephen D'Ambrisi: Yeah. Did that get clarified in Oklahoma yet, whether or not you have a ROFR?

Sean Trauschke: Not yet.

Speaker #3: Not yet. Not yet.

Speaker #9: Okay, let's stay tuned. Stay tuned. Okay.

Stephen D'Ambrisi: Okay.

Sean Trauschke: Not yet.

Stephen D'Ambrisi: Stay tuned.

Sean Trauschke: Yeah.

Stephen D'Ambrisi: Okay.

Speaker #3: Yep.

Sean Trauschke: Yeah.

Speaker #9: All right, that's all I had. Appreciate it.

Stephen D'Ambrisi: All right. That's all I had. Appreciate it.

Speaker #3: All right. Thanks. Have a great day.

Sean Trauschke: All right, thanks. Have a great day.

Speaker #9: Thanks. You too.

Stephen D'Ambrisi: Thanks. You too.

Speaker #1: Thank you so much. This will conclude our Q&A session for today. I will now pass it back to Sean Trauschke for final remarks.

Operator: Thank you so much. This will conclude our Q&A session for today, and I will pass it back to Sean Trauschke for final remarks.

Sean Trauschke: Well, thank you, Carmen. Thank you all for joining us today. Thank you for your support. I hope everyone has a great day.

Speaker #3: Well, thank you, Carmen. And thank you all for joining us today. Thank you for your support, and I hope everyone has a great day.

Operator: With that, we will conclude today's conference. Thank you for participating. You may now disconnect.

Q2 2026 OGE Energy Corp Earnings Call

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