OGE Energy Corp. Files Q2 2024 10-Q

TL;DR

OGE Energy Corp. (OK Electric Services) filed its Q2 2024 10-Q. Financials look steady.

AI Summary

OGE Energy Corp. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which operates as Oklahoma Gas & Electric Co. The report covers the second quarter and provides information relevant to investors and stakeholders regarding the company's financial health and business activities.

Why It Matters

This filing provides crucial financial and operational data for OGE Energy Corp., allowing investors to assess the company's performance and make informed decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures for a utility company.

Key Players & Entities

• OGE ENERGY CORP. (company) — Filer
• OKLAHOMA GAS & ELECTRIC CO (company) — Subsidiary/Operating Company
• 20240630 (date) — Reporting Period End Date
• 20240807 (date) — Filing Date

FAQ

Key Financial Figures

• $0.01 — Energy Corp.'s common stock, par value $0.01 per share, outstanding. At June 30, 2
• $2.50 — ctric Company's common stock, par value $2.50 per share, outstanding, all of which we

Filing Documents

• oge-20240630.htm (10-Q) — 3640KB
• 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
• oge-ex99_01.htm (EX-99.01) — 1266KB
• oge-ex99_02.htm (EX-99.02) — 704KB
• 0000950170-24-092035.txt ( ) — 16303KB
• oge-20240630.xsd (EX-101.SCH) — 1415KB
• oge-20240630_htm.xml (XML) — 3543KB

- 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 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 individual Registrant is filed by such Registrant on its own behalf. OG&E makes no repr

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 Six Months Ended June 30, June 30, (In millions, except per share data) 2024 2023 2024 2023 OPERATING REVENUES Revenues from contracts with customers $ 644.1 $ 589.2 $ 1,226.7 $ 1,133.8 Other revenues 18.5 15.8 32.7 28.4 Operating revenues 662.6 605.0 1,259.4 1,162.2 FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE 193.9 181.8 426.1 382.4 OPERATING EXPENSES Other operation and maintenance 130.4 128.3 262.8 258.7 Depreciation and amortization 135.5 124.1 264.7 245.3 Taxes other than income 26.9 24.4 55.9 52.9 Operating expenses 292.8 276.8 583.4 556.9 OPERATING INCOME 175.9 146.4 249.9 222.9 OTHER INCOME (EXPENSE) Allowance for equity funds used during construction 6.6 5.1 11.3 9.6 Other net periodic benefit income 1.6 1.1 3.3 2.6 Other income 8.9 12.7 13.4 29.6 Other expense ( 6.6 ) ( 4.4 ) ( 11.1 ) ( 10.9 ) Net other income 10.5 14.5 16.9 30.9 INTEREST EXPENSE Interest on long-term debt 54.9 52.9 106.9 101.0 Allowance for borrowed funds used during construction ( 3.4 ) ( 1.3 ) ( 6.8 ) ( 3.4 ) Interest on short-term debt and other interest charges 13.4 6.1 25.0 7.9 Interest expense 64.9 57.7 125.1 105.5 INCOME BEFORE TAXES 121.5 103.2 141.7 148.3 INCOME TAX EXPENSE 19.2 14.8 20.8 21.6 NET INCOME $ 102.3 $ 88.4 $ 120.9 $ 126.7 BASIC AVERAGE COMMON SHARES OUTSTANDING 200.8 200.3 200.6 200.3 DILUTED AVERAGE COMMON SHARES OUTSTANDING 201.4 200.8 201.0 200.8 BASIC EARNINGS PER AVERAGE COMMON SHARE $ 0.51 $ 0.44 $ 0.60 $ 0.63 DILUTED EARNINGS PER AVERAGE COMMON SHARE $ 0.51 $ 0.44 $ 0.60 $ 0.63 The accompanying Combined N

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