OGE Energy Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>OGE Energy Corp. has filed its Q1 2024 10-Q report, detailing financial performance and operational aspects.</b>

AI Summary

OGE ENERGY CORP. (OGE) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. OGE Energy Corp. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing includes data related to OGE's operations, financial performance, and risk factors. Key financial metrics and operational details are presented for the reporting period. The report covers the fiscal quarter of 2024. OGE Energy Corp. is identified by Central Index Key 0001021635.

Why It Matters

For investors and stakeholders tracking OGE ENERGY CORP., this filing contains several important signals. Investors and analysts can assess OGE's financial health and operational efficiency for the first quarter of 2024. The filing provides insights into potential risks and the company's strategies for managing them.

Risk Assessment

Risk Level: medium — OGE ENERGY CORP. shows moderate risk based on this filing. The company operates in the regulated electric services industry, which is subject to significant regulatory oversight and potential changes in policy that could impact financial performance.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-Q to understand OGE Energy Corp.'s current financial position and future outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-01 — Filing Date (Filed As Of Date)
• 2023-01-01 to 2023-03-31 — Prior Year Q1 Period (Context for Other Contracts with Customers)
• 2024-01-01 to 2024-03-31 — Current Year Q1 Period (Context for Performance Shares and Total Shareholder Return)

Key Players & Entities

• OGE ENERGY CORP. (company) — Filer name
• 0000950170-24-050701 (other) — Accession Number
• 20240331 (date) — Conformed Period of Report
• OKLAHOMA GAS & ELECTRIC CO (company) — Former Company Name
• 4055533000 (phone) — Business Phone
• 0001021635 (company) — Central Index Key for OGE ENERGY CORP.
• 0000074145 (company) — Central Index Key for OKLAHOMA GAS & ELECTRIC CO
• 2024-03-31 (date) — Reporting date for Loss on Reacquired Debt

FAQ

Risk Factors

• Regulatory Environment [high — regulatory]: The company is subject to extensive regulation by state and federal agencies, which can impact rates, operations, and financial results.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the cost of borrowing and the fair value of the company's debt.
• Weather and Natural Disasters [medium — operational]: Severe weather events can disrupt operations, damage infrastructure, and increase operating costs.
• Energy Market Volatility [medium — market]: Fluctuations in the prices of natural gas and other fuels can impact operating expenses and profitability.

Key Financial Figures

• $0.01 — Energy Corp.'s common stock, par value $0.01 per share, outstanding. At March 31,
• $2.50 — ctric Company's common stock, par value $2.50 per share, outstanding, all of which we

Filing Documents

• oge-20240331.htm (10-Q) — 2548KB
• oge-ex31_01.htm (EX-31.01) — 23KB
• oge-ex31_02.htm (EX-31.02) — 23KB
• oge-ex32_01.htm (EX-32.01) — 13KB
• oge-ex32_02.htm (EX-32.02) — 13KB
• 0000950170-24-050701.txt (&nbsp;) — 10771KB
• oge-20240331.xsd (EX-101.SCH) — 1387KB
• oge-20240331_htm.xml (XML) — 2333KB

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 OGE Energy Corp. Condensed Consolidated Financial Statements 3 Oklahoma Gas and Electric Company Condensed Financial Statements 9 Combined Notes to Condensed Financial Statements 14

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40

- OTHER INFORMATION

Part II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41

Other Information

Item 5. Other Information 41

Exhibits

Item 6. Exhibits 41 Signature 42 i GLOSSARY OF TERMS The following is a glossary of frequently used abbreviations that are found throughout this Form 10-Q. Abbreviation Definition 2023 Form 10-K Annual Report on Form 10-K for the year ended December 31, 2023 APSC Arkansas Public Service Commission ASC Financial Accounting Standards Board Accounting Standards Codification ASU Financial Accounting Standards Board Accounting Standards Update CO 2 Carbon dioxide COVID-19 Novel Coronavirus disease Dry Scrubber Dry flue gas desulfurization unit with spray dryer absorber EPA U.S. Environmental Protection Agency Federal Clean Water Act Federal Water Pollution Control Act of 1972, as amended FERC Federal Energy Regulatory Commission FIP Federal Implementation Program GAAP Accounting principles generally accepted in the U.S. IRP Integrated Resource Plan MWh Megawatt-hour NAAQS National Ambient Air Quality Standard NO X Nitrogen oxide OCC Oklahoma Corporation Commission ODEQ Oklahoma Department of Environmental Quality OG&E Oklahoma Gas and Electric Company, wholly-owned subsidiary of OGE Energy OGE Energy OGE Energy Corp., collectively with its subsidiaries, holding company and parent company of OG&E PM Particulate matter Pension Plan Qualified defined benefit retirement plan Regional Haze The EPA's Regional Haze Rule Registrants OGE Energy and OG&E Restoration of Retirement Income Plan Supplemental retirement plan to the Pension Plan SIP SPP Southwest Power Pool System sales Sales to OG&E's customers U.S. United States of America USFWS United States Fish and Wildlife Service Winter Storm Uri Unprecedented, prolonged extreme cold weather event in February 2021 ii FILING FORMAT This combined Form 10-Q is separately filed by OGE Energy and OG&E. Information in this combined Form 10-Q relating to each individu

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Except for the historical statements contained herein, the matters discussed within this Form 10-Q, including those matters discussed within "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations," are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "forecast," "intend," "objective," "plan," "possible," "potential," "project," "target" and similar expressions. Actual results may vary materially from those expressed in forward-looking statements. In addition to the specific risk factors discussed within "Item 1A. Risk Factors" in the Registrants' 2023 Form 10-K and within "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" herein, factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to: general economic conditions, including the availability of credit, access to existing lines of credit, access to the commercial paper markets, actions of rating agencies and inflation rates, and their impact on capital expenditures; the ability of the Registrants to access the capital markets and obtain financing on favorable terms, as well as inflation rates and monetary fluctuations; the ability to obtain timely and sufficient rate relief to allow for recovery of items such as capital expenditures, fuel and purchased power costs, operating costs, transmission costs and deferred expenditures; prices and availability of electricity, coal and natural gas; competitive factors, including the extent and timing of the entry of additional competition in the markets served by the Registrants, potentially through deregulation; the impact on demand for the Registrants' services resulting from cost-competitive advances

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. OGE ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended March 31, (In millions, except per share data) 2024 2023 OPERATING REVENUES Revenues from contracts with customers $ 582.6 $ 544.6 Other revenues 14.2 12.6 Operating revenues 596.8 557.2 FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE 232.2 200.6 OPERATING EXPENSES Other operation and maintenance 132.4 130.4 Depreciation and amortization 129.2 121.2 Taxes other than income 29.0 28.5 Operating expenses 290.6 280.1 OPERATING INCOME 74.0 76.5 OTHER INCOME (EXPENSE) Allowance for equity funds used during construction 4.7 4.5 Other net periodic benefit income 1.7 1.5 Other income 4.5 16.9 Other expense ( 4.5 ) ( 6.5 ) Net other income 6.4 16.4 INTEREST EXPENSE Interest on long-term debt 52.0 48.1 Allowance for borrowed funds used during construction ( 3.4 ) ( 2.1 ) Interest on short-term debt and other interest charges 11.6 1.8 Interest expense 60.2 47.8 INCOME BEFORE TAXES 20.2 45.1 INCOME TAX EXPENSE 1.6 6.8 NET INCOME $ 18.6 $ 38.3 BASIC AVERAGE COMMON SHARES OUTSTANDING 200.4 200.2 DILUTED AVERAGE COMMON SHARES OUTSTANDING 200.6 200.8 BASIC EARNINGS PER AVERAGE COMMON SHARE $ 0.09 $ 0.19 DILUTED EARNINGS PER AVERAGE COMMON SHARE $ 0.09 $ 0.19 The accompanying Combined Notes to Condensed Financial Statements are an integral part hereof. 3 OGE ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, (In millions) 2024 2023 Net income $ 18.6 $ 38.3 Other comprehensive income (loss), net of tax: Pension Plan and Restoration of Retirement Income Plan: Amortization of prior service cost, net of tax of $ 0.1 and $ 0.0 , respectively — 0.1 Amortization of defe

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View this 10-Q filing on SEC EDGAR