OGE Energy NYSE: OGE reported third-quarter 2026 consolidated net income of approximately $316 million, or $1.52 per diluted share, compared with $231 million, or $1.14 per share, a year earlier, as unusually hot weather lifted electricity demand across its service territory.
Chairman, President and CEO Sean Trauschke said the company’s service area experienced more than 45 days with triple-digit temperatures during the summer, compared with one such day in the prior year. OGE set new peak-load records four times, and 15 days exceeded its 2024 peak-load record, he said.
“At no time were there calls for the public to conserve energy,” Trauschke said, adding that the system was built to withstand such weather extremes. While residential prices per kilowatt-hour were 7% lower in August and September than a year earlier, extended air-conditioning use increased customer consumption, he said.
Weather Drives Higher Quarterly Earnings, Guidance Increase
CFO Chuck Walworth said the electric utility’s net income rose to approximately $321 million, or $1.54 per diluted share, from $243 million, or $1.20 per share, in the prior-year quarter. The increase was primarily driven by significantly warmer third-quarter weather, partly offset by higher income tax expense.
The holding company posted a loss of about $5 million, or $0.02 per share, improving from a $12 million loss, or $0.06 per share, a year earlier. Walworth attributed the improvement to higher income from energy-related investments and lower interest expense.
OGE raised its 2026 consolidated earnings guidance to a range of $2.62 to $2.68 per share. The updated outlook assumes normal weather for the remainder of the year and includes opportunities to perform work previously planned for future years.
Customer growth and weather-normalized load growth were each approximately 1%, according to Walworth. He said differences in load growth largely reflect the timing of customer ramps and maintenance outages among some large customers, while customer commitments remain in place.
Generation Expansion Centers on Horseshoe Lake
OGE has filed with the Oklahoma Corporation Commission for pre-approval to construct a 755-megawatt combined-cycle generating plant, Horseshoe Lake Unit 15. The company said it expects to file with the Arkansas Public Service Commission in coming weeks.
Walworth said Unit 15 was selected through the company’s 2026 all-source request for proposals and was the highest-ranked project in that process. The project represents about $1.75 billion of investment and is expected to enter service in 2031.
Recent Oklahoma legislation allows for construction-work-in-progress recovery, which OGE estimates will save customers more than $900 million over the life of the asset while moderating customer-bill impacts during construction. The legislation also established a 180-day regulatory review process for pre-approval filings.
Trauschke said the company’s use of the existing Horseshoe Lake site supports the economics of the project. He also pointed to OGE’s experience developing gas-fired generation and its record of completing Horseshoe Lake Units 11 and 12 ahead of schedule and $12 million under budget.
Those two units added approximately 448 MW of flexible generation capacity. Their early completion allowed OGE to avoid up to $16 million in capacity purchases for the coming winter, Trauschke said. Combined with other additions, OGE has added 544 MW of capacity this year. Horseshoe Lake Units 13 and 14 remain under construction and are expected to add another 440 MW.
After Unit 15, OGE estimates it will have approximately 1.1 gigawatts of remaining capacity needs. Trauschke told analysts the company intends to own and operate the majority of that future capacity, though it may use short-term bridge capacity while projects are under construction. He said the company expects the remaining portfolio to be principally gas generation, potentially supplemented by some solar and storage.
Capital Plan, Equity Program and Transmission Investment
OGE established an at-the-market equity program authorizing up to $750 million in common-equity issuances. Walworth said the program gives the company flexibility to match equity issuance with investment timing and was not intended to signal a specific amount of future capital spending.
The company’s five-year capital plan now includes an incremental $555 million in investment following approval of the Frontier Energy Storage Project and recent Notices to Construct. The additions include:
- $395 million related to the Frontier Energy Storage Project, which received regulatory approval during the third quarter.
- $160 million of transmission investment planned between 2027 and 2030.
OGE expects roughly $200 million of incremental equity over the planning horizon to support those investments, which it expects to raise through the ATM program. Walworth said the company will evaluate financing on a project-by-project basis while focusing on long-term credit metrics.
On transmission, Walworth said the $160 million added to the capital plan relates to projects assigned through the 2025 Southwest Power Pool Integrated Transmission Planning process, rather than the Seminole-to-Shreveport, now Longwood, line. He said OGE expects further clarity on Notices to Construct later this year and described the 2026 SPP planning process as still being in an early stage.
Rate Review and Customer Support
Trauschke said OGE’s Oklahoma rate review, its first since December 2023, reflects investments intended to improve system reliability, support demand growth and address evolving requirements. The filing also includes expanded customer-assistance and payment-flexibility programs.
The company plans to expand senior-discount and low-income assistance programs, launch a pilot program for customers with past-due balances, and introduce “Choose My Due Date” prepayment options. OGE also refreshed its Lend a Hand bill-assistance program, broadening its network of nonprofit partners and adding a commitment from the OGE Energy Corp. Foundation to match customer donations.
Management said it plans to provide updates on accepted SPP Notices to Construct with fourth-quarter results, on the Oklahoma rate review and Horseshoe Lake 15 pre-approval case during its first-quarter call, and on additional generation filings during its second-quarter call.
About OGE Energy (NYSE:OGE)
OGE Energy Corp. NYSE: OGE is an energy holding company headquartered in Oklahoma City, Oklahoma. Its principal subsidiary, Oklahoma Gas and Electric Company (OG&E), is a regulated electric utility that generates, transmits, distributes and sells electricity to residential, commercial and industrial customers.
OG&E serves customers across Oklahoma and in western Arkansas. Its operations include a diverse generation fleet and the infrastructure needed to deliver electricity, including transmission and distribution networks, customer service programs and energy-efficiency offerings.
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