OGE Energy Corp's Strong 2024 Results and Positive Outlook for 2025

OGE Energy Corp (NYSE: OGE) reported robust financial results for 2024, driven by exceptional load growth, higher operating revenues, and strong operational execution. The company's earnings per diluted share increased to $2.19, up from $2.07 in 2023, marking a significant improvement in its financial performance. OGE Energy's subsidiary, Oklahoma Gas and Electric Company (OG&E), contributed earnings of $2.33 per diluted share, compared to $2.12 in 2023.



The company's success can be attributed to several factors, including its investments in grid strengthening and power plant expansion. OGE Energy has been actively working to improve the reliability of its grid by replacing aging infrastructure, constructing new substations, and enhancing grid management tools. These efforts have led to a significant reduction in System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI), indicating improved reliability for customers.



OGE Energy's investments in power plant expansion have also contributed to its strong financial performance. The company has been expanding its generation capacity to meet growing demand for electricity in its service area. In 2024, OGE Energy completed two new natural-gas power generation units at its Horseshoe Lake plant, adding 400 megawatts of capacity to its generation portfolio.



The company's positive financial performance has also been driven by its regulatory environment. OGE Energy has successfully navigated regulatory reviews, as evidenced by the recognition of the interim order received in the fourth quarter of 2024 approving the uncontested settlement agreement in the Oklahoma rate review. This positive regulatory outcome has contributed to the company's strong fourth quarter results and is expected to continue to support its earnings growth.

Looking ahead to 2025, OGE Energy Corp has provided earnings guidance that reflects its expectations for continued economic growth, customer demand for electricity, and a stable and supportive regulatory environment. The company expects to grow consolidated earnings per share annually between 5% and 7% from the midpoint of 2025's guidance range. OGE Energy's guidance assumes normal weather for the remainder of the year, which suggests that it expects the regulatory environment to remain stable and supportive of its operations.

In conclusion, OGE Energy Corp's strong financial performance in 2024 and positive outlook for 2025 reflect the company's successful execution of its strategic initiatives, including investments in grid strengthening and power plant expansion. The company's earnings growth is supported by exceptional load growth, higher operating revenues, and a stable regulatory environment. As OGE Energy continues to invest in its infrastructure and services, it is well-positioned to deliver strong financial performance and support economic growth in its service area.