OGE Energy Q2 Earnings Call Highlights

Key Points

• OGE Energy’s Q2 net income rose to approximately $116 million, or $0.56 per diluted share, from $108 million a year earlier. Management reaffirmed full-year earnings guidance of $2.38 to $2.48 per share.
• Electricity demand remains strong, with customer growth near 1% and a record peak demand exceeding 6,800 MW, although two large customers delayed portions of their planned load ramp.
• OGE is expanding capacity and protecting existing customers as large-load demand grows, including a proposed tariff requiring major customers to fund grid connections, commit for at least 15 years and provide consumer protections. The company expects to add 550 MW in 2026 and another 300 MW in 2027.

OGE Energy NYSE: OGE reported second-quarter 2026 consolidated net income of approximately $116 million, or $0.56 per diluted share, compared with $108 million, or $0.53 per share, in the same quarter a year earlier. The company reaffirmed its full-year consolidated earnings guidance of $2.38 to $2.48 per share, with a midpoint of $2.43.

Chairman, President and CEO Sean Trauschke said the company is advancing regulatory filings, capacity additions and customer negotiations intended to support growing electricity demand while protecting existing customers from added costs.

Quarterly Results and Demand Trends

Chief Financial Officer Chuck Walworth said the company’s electric utility business generated net income of about $120 million, or $0.58 per diluted share, up from $108 million, or $0.53 per share, a year earlier. The increase was primarily driven by warmer second-quarter weather and lower depreciation and interest expense on assets placed in service, partly offset by higher operations and maintenance expense.

The holding company recorded a loss of approximately $4 million, or $0.02 per diluted share, compared with a loss of less than $1 million in the prior-year period. Walworth attributed the larger loss primarily to higher interest expense and the absence of a one-time benefit tied to legacy midstream operations that was recognized in 2025.

Walworth said stronger weather during the second quarter offset part of the weather-related headwind experienced in the first quarter. He added that nearly 70% of expected annual earnings remain ahead of the company.

The utility continues to see customer growth of approximately 1% and strong demand across its service territory. However, two existing large customers shifted portions of their planned ramp schedules, moving a combined couple hundred megawatts of load later into the year. Walworth said the customers are already online and that their commitments remain in place.

OGE set a new all-time peak demand record of more than 6,800 megawatts during the prior week, exceeding the previous record set in August 2024 by roughly 180 megawatts, Walworth said.

Large-Load Tariff and Customer Protections

Trauschke highlighted the company’s May 1 filing of a special contract with Google in Oklahoma, which now has a procedural schedule. He said OGE expects the matter to move toward resolution before the end of 2026.

On June 17, the company filed an Oklahoma large-load tariff for customers requiring more than 75 MW. The filing is aligned with recently enacted state legislation and is designed to facilitate economic development and load growth while protecting existing customers, according to Trauschke.

The proposed tariff includes several requirements for large-load customers:

• Upfront funding of 100% of grid connection costs.
• A minimum 15-year commitment.
• Minimum billing and collateral requirements.
• Early-termination and capacity-reduction fees.
• A consumer-protection charge intended to provide a regulatory backstop if future impacts emerge for existing customers.

Trauschke said the company’s proposed customer affordability charge could provide residential customers with $25 million to $30 million annually for a typical 1-gigawatt data center. He said OGE believes high-demand customers can reduce costs for all customers when they connect under a regulated utility model.

During the question-and-answer session, Trauschke said the company remains engaged in six or seven active large-load customer negotiations. He said the tariff filing provides prospective customers with greater clarity on how large-load service would operate in Oklahoma.

Capacity, Generation and Transmission Plans

OGE expects a proposed order for its Frontier Energy Storage Project from Commissioner Bingman’s office to be adopted soon, Trauschke said. The company expects to add 550 MW of capacity in 2026 through the Horseshoe Lake and Tinker projects, followed by another 300 MW next year from the Frontier Energy Storage Project.

Horseshoe Lake units 13, 14 and 29 are expected to add another 450 MW. Trauschke said OGE has historically added roughly 300 MW to 400 MW of capacity per year but will need to increase that pace to meet system demand.

The company expects to make multiple generation-related filings through the remainder of 2026 as it completes evaluations and negotiations associated with its request-for-proposals process. Trauschke said a filing could occur during the current quarter.

He also said more stringent accreditation standards for new renewable resources within the Southwest Power Pool may favor thermal generation in the company’s pending RFP evaluations, given the importance of the dollar cost of accredited capacity.

OGE plans to file an Oklahoma rate review during the third quarter. Trauschke said that case will focus on distribution additions, substations and normal system expansion and will not include generation capacity. He said Horseshoe Lake units 13 and 14 are being addressed through a separate preapproval process.

Financing and Transmission Outlook

Walworth said OGE has completed all planned financing activities for 2026 and continues to target funds from operations-to-debt of approximately 17% over its planning horizon. He said the company has multiple tools available to support its capital structure, including potential construction-work-in-progress financing for large transmission projects.

The company is monitoring Southwest Power Pool notices to construct, which are currently expected in the fourth quarter. Regarding the proposed Seminole-to-Shreveport transmission line, Trauschke said OGE would provide more information on costs, routing, construction timing, investment schedules and financing needs after receiving a notice to construct and confirming those details with the regional transmission organization.

Management said capital spending, earnings outlook and financing updates are likely to be provided incrementally as projects receive approvals, rather than in one comprehensive announcement.

About OGE Energy (NYSE:OGE)

OGE Energy Corp. NYSE: OGE is an energy and infrastructure holding company headquartered in Oklahoma City, Oklahoma. Through its principal subsidiary, Oklahoma Gas & Electric Company, the company provides regulated electric service to residential, commercial and industrial customers across Oklahoma and western Arkansas. Its diversified generation mix includes coal, natural gas and wind-powered facilities, complemented by ongoing investments in grid modernization and smart technology to enhance reliability and customer satisfaction.

In addition to its core electric utility operations, OGE Energy Corp.

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