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1. Company Snapshot

1.a. Company Description

OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that offers physical delivery and related services for electricity, natural gas, crude oil, and natural gas liquids in the United States.The company generates, transmits, distributes, and sells electric energy.It provides retail electric service to approximately 879,000 customers, which covers a service area of approximately 30,000 square miles in Oklahoma and western Arkansas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets.


As of December 31, 2021, the company owned and operated interconnected electric generation, transmission, and distribution systems, including 16 generating stations with an aggregate capability of 7,207 megawatts; and transmission systems comprising 54 substations and 5,122 structure miles of lines in Oklahoma, and 7 substations and 277 structure miles of lines in Arkansas.Its distribution systems included 350 substations; 29,494 structure miles of overhead lines; 3,365 miles of underground conduit; and 11,125 miles of underground conductors in Oklahoma, as well as 29 substations, 2,795 structure miles of overhead lines, 349 miles of underground conduit, and 662 miles of underground conductors in Arkansas.The company was founded in 1902 and is based in Oklahoma City, Oklahoma.

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1.b. Last Insights on OGE

OGE Energy's recent momentum is driven by its robust capital expenditure plan, focused on renewable expansion and infrastructure development. The company's Q4 earnings surpassed estimates, with $0.48 per share, beating the Zacks Consensus Estimate of $0.30. According to Marketbeat Ratings, analysts have set a price target of $47.13, with a consensus recommendation of "Hold". OGE Energy's strengthened balance sheet and disciplined payout ratio management support its dividend growth, aligning with its 5%-7% annual EPS growth target.

1.c. Company Highlights

2. Utility Company's 2025 Earnings: A Strong Year with Growth Momentum

The company's financial performance in 2025 was robust, with consolidated earnings of $2.32 per share, driven by strong load growth and recovery of capital investments. The electric company's net income increased to $500 million, or $2.47 per share, up from $470 million, or $2.33 per share in 2024. The actual EPS came out at $2.32, slightly beating analysts' estimates. Revenue growth was driven by a 7% increase in weather-normalized load, reflecting strong local economies and the company's sustainable business model. As Charles B. Walworth noted, "consolidated net income for 2025 was approximately $471 million, or $2.32 per diluted share, compared to $442 million, or $2.19 in 2024."

Publication Date: Feb -19

📋 Highlights
  • 2025 Consolidated Earnings:: $2.32 per share, including $2.47 at the electric company and a $0.15 holding company loss.
  • 2026 Earnings Guidance:: $2.43 per share (range: $2.38–$2.48), with 5%–7% long-term EPS growth from a higher base.
  • Load Growth Momentum:: 7% weather-normalized load growth in 2025, projected to moderate to 4%–6% in 2026, with total retail load up 24% since 2021.
  • Capital Plan:: $7.3 billion total, including 765kV transmission line ($7.3B project, 20% of capital plan) and 1.9 GW new generation needs by 2031.

Guidance and Growth Prospects

The company is guiding to consolidated earnings of $2.43 per share in 2026, with a range of $2.38 to $2.48, representing a 4.7% increase from 2025. Customer count is expected to increase by about 1%, and weather-normalized load is expected to grow 4% to 6%. The company's long-term EPS growth target is 5% to 7%, driven by its investment plan, which includes a $7.3 billion basic capital plan. The company's growth prospects are supported by its strong load growth and investment in generation and transmission opportunities.

Valuation and Dividend Yield

The company's valuation metrics indicate a reasonable price for its shares. The P/E Ratio is 18.61, and the Dividend Yield is 3.64%. The ROE is 10.77%, indicating a decent return on equity. The EV/EBITDA ratio is 11.27, suggesting a reasonable enterprise value relative to its earnings before interest, taxes, depreciation, and amortization. The company's dividend yield is attractive, making it a potentially appealing investment opportunity for income-seeking investors.

Investment Plan and Capital Allocation

The company's investment plan is focused on generation and transmission opportunities, with a $7.3 billion basic capital plan. The company is balancing its capital allocation between transmission, distribution, and generation capacity. As Robert Sean Trauschke noted, "we are going to be looking for additional generation... we will layer those in at that point." The company's capital plan is expected to drive its long-term growth prospects and support its EPS growth target.

3. NewsRoom

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OGE Energy Corporation (NYSE:OGE) Receives $47.63 Average Price Target from Brokerages

Mar -07

Source: defenseworld.net

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Fisher Asset Management LLC Takes Position in OGE Energy Corporation $OGE

Mar -07

Source: defenseworld.net

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OGE Energy Corporation $OGE Shares Bought by Elo Mutual Pension Insurance Co

Mar -06

Source: defenseworld.net

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OGE Advances Clean Energy and Grid Modernization to Drive Growth

Mar -03

Source: zacks.com

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Artisan Partners Limited Partnership Sells 111,518 Shares of OGE Energy Corporation $OGE

Feb -28

Source: defenseworld.net

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OGE Energy Corp. (OGE) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

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OGE Energy (OGE) Surpasses Q4 Earnings Estimates

Feb -18

Source: zacks.com

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OGE Energy Corp. reports 2025 results and outlook for 2026

Feb -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Electric Company

Expected Growth: 4.0%

OGE Energy Corp.'s Electric Company segment growth is driven by increasing demand for electricity in Oklahoma, fueled by population growth and economic expansion. Additionally, investments in grid modernization and renewable energy sources, such as wind power, contribute to the segment's growth. Furthermore, the company's focus on operational efficiency and cost management also supports its 4.0% growth rate.

7. Detailed Products

Electricity Distribution

OGE Energy Corp. distributes electricity to residential, commercial, and industrial customers through its regulated public utility, Oklahoma Gas and Electric Company (OG&E).

Electric Transmission

OGE Energy Corp. owns and operates a high-voltage electric transmission system, providing transmission services to other utilities, generators, and load-serving entities.

Energy Trading and Marketing

OGE Energy Corp. engages in energy trading and marketing activities, providing risk management and optimization services to customers.

Renewable Energy Solutions

OGE Energy Corp. offers renewable energy solutions, including wind and solar power, to customers seeking sustainable energy options.

8. OGE Energy Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for OGE Energy Corp. is medium due to the availability of alternative energy sources such as solar and wind power. However, the high cost of switching to these alternatives and the lack of infrastructure in some areas reduce the threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of alternative energy providers in the region and the high cost of switching to alternative energy sources.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of fuel and equipment, but the high cost of switching to alternative suppliers reduces the bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the energy industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple energy providers in the region, leading to intense competition for customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.75%
Debt Cost 5.36%
Equity Weight 48.25%
Equity Cost 7.45%
WACC 6.37%
Leverage 107.27%

11. Quality Control: OGE Energy Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Evergy

A-Score: 6.9/10

Value: 5.8

Growth: 4.7

Quality: 4.4

Yield: 8.0

Momentum: 8.5

Volatility: 10.0

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PGE

A-Score: 6.8/10

Value: 6.9

Growth: 4.3

Quality: 4.4

Yield: 8.0

Momentum: 7.0

Volatility: 10.0

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OGE Energy

A-Score: 6.7/10

Value: 5.4

Growth: 4.1

Quality: 5.4

Yield: 8.0

Momentum: 7.0

Volatility: 10.0

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FirstEnergy

A-Score: 6.6/10

Value: 5.4

Growth: 3.6

Quality: 4.9

Yield: 8.0

Momentum: 8.0

Volatility: 10.0

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Pinnacle West Capital

A-Score: 6.5/10

Value: 6.5

Growth: 5.1

Quality: 4.1

Yield: 8.0

Momentum: 5.5

Volatility: 10.0

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Avangrid

A-Score: 4.5/10

Value: 4.9

Growth: 4.3

Quality: 3.5

Yield: 4.0

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.93$

Current Price

47.93$

Potential

-0.00%

Expected Cash-Flows