OGE Energy Corp. (OGE) | Investment Case

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 Corp.'s recent performance was driven by strong earnings growth prospects, debt management, and ability to increase shareholder value. The company's Q4 2024 earnings beat estimates, with revenues increasing 34.2% year-over-year. OGE's systematic investment plan and ability to raise shareholder value also contributed to its positive performance. Additionally, the company's better debt management and prospects in the utility space make it a solid pick for investors.

1.c. Company Highlights

Last Price	43.55
Change Percentage	0.15%
Open	43.49
Previous Close	43.48
Market Cap ( Millions)	8764
Volume	343394
Year High	47.33
Year Low	39.41
M A 50	45.28
M A 200	44.78

FCF Yield	6.68%
Dividend Yield	3.88%
ROE	10.77%
Debt / Equity	121.63%
Net Debt / EBIDTA	427.26%
Price To Book	1.83
Price Earnings Ratio	17.43
Price To FCF	14.98
Price To sales	2.66
EV / EBITDA	10.69

2. OGE Energy Corp. Delivers Strong Q3 Earnings

OGE Energy Corp. reported consolidated earnings of $1.14 per share for the third quarter of 2025, slightly below estimates of $1.16 per share. The electric company segment contributed $1.20 per share, while the holding company reported a loss of $0.06 per share. The company's strong performance was driven by operational excellence and constructive regulatory outcomes. The financial position remains robust, with a balance sheet that is one of the strongest in the industry, as reflected in a 'Net Debt / EBITDA' ratio of 4.27.

Publication Date: Nov -02

                                    📋 Highlights
                                    Consolidated Earnings Performance::
                                                $1.14 per share (Q3 2025), driven by $1.20 per share from electric operations and a $0.06 per share holding company loss.
Infrastructure Projects::
                                                450 MW natural gas generation (2029) and 550 MW combustion turbines (2026) under construction in Oklahoma.
Transmission Investment::
                                                $250 million Fort Smith to Muskogee transmission line to address reliability, phased into service 2027–2029.
Load Growth Momentum::
                                                6.5% weather-normalized load growth YTD (Q3 2025), with 7.5% full-year guidance and 7.5% 2025 retail load growth expected.
Capital Expenditures::
                                                $250 million increase announced, with financing plans to be detailed in Q4 update and a pending data center deal in negotiations.

                                

Operational Highlights

The company has made significant progress in its generation and transmission projects. A preapproval request in Oklahoma is pending, which will enable the construction of 450 megawatts of natural gas generation by 2029. Additionally, approximately 550 megawatts of combustion turbines are under construction and expected to be operational next year. The company celebrated the grand opening of a major expansion project for a plastics manufacturer, adding 4.5 megawatts of load and creating hundreds of jobs.

Capital Plan and Load Growth

OGE Energy Corp.'s capital plan has been updated to include the Fort Smith to Muskogee transmission line, a $250 million project aimed at addressing reliability and capacity issues. Year-over-year customer growth remained healthy at just under 1% in the third quarter. Weather-normalized load growth was strong at 6.5% through the third quarter, with expectations of total retail normalized load growth of approximately 7.5% in 2025. The company expects load growth to remain strong, potentially driving higher sales growth in 2026.

Financial Outlook and Valuation

The company's long-term EPS CAGR remains in the 5% to 7% range. With a 'P/E Ratio' of 17.67 and a 'P/S Ratio' of 2.7, the stock appears reasonably valued. The 'Dividend Yield' of 3.83% is attractive, and the dividend growth rate is targeted to grow into a 65% to 70% payout ratio. Analysts estimate next year's revenue growth at 4.1%, indicating a stable outlook for the company.

Future Prospects

A data center deal is in serious negotiations, with an announcement expected soon. The company will provide a full update on 2026 planning assumptions in February. With a strong balance sheet and a focus on minimizing earned ROE lag, OGE Energy Corp. is well-positioned for future growth.

3. NewsRoom

OGE Energy Corp. Board of Directors declares quarterly dividend

Dec -03

Source: prnewswire.com

Boston Partners Purchases 846,365 Shares of OGE Energy Corporation $OGE

Nov -27

Source: defenseworld.net

EIX vs. OGE: Which Stock Is the Better Value Option?

Nov -26

Source: zacks.com

OGE Energy Corporation (NYSE:OGE) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Nov -24

Source: defenseworld.net

OGE Energy Corp. Prices Public Offering of 8,023,256 Shares of Common Stock

Nov -21

Source: prnewswire.com

OGE Energy Corp. Announces Public Offering of $345 Million of Shares of Common Stock

Nov -20

Source: prnewswire.com

Financial Contrast: United Utilities Group (OTCMKTS:UUGRY) and OGE Energy (NYSE:OGE)

Nov -05

Source: defenseworld.net

OGE Energy Corporation $OGE Shares Acquired by Y Intercept Hong Kong Ltd

Nov -03

Source: defenseworld.net

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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

OGE Energy

A-Score: 6.8/10

Value: 5.5

Growth: 4.1

Quality: 5.6

Yield: 8.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

Evergy

A-Score: 6.7/10

Value: 5.5

Growth: 4.7

Quality: 4.7

Yield: 7.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

Pinnacle West Capital

A-Score: 6.4/10

Value: 5.9

Growth: 5.2

Quality: 4.1

Yield: 8.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

FirstEnergy

A-Score: 6.4/10

Value: 5.7

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

PGE

A-Score: 6.1/10

Value: 6.8

Growth: 4.4

Quality: 4.1

Yield: 8.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

Avangrid

A-Score: 5.2/10

Value: 6.2

Growth: 4.3

Quality: 3.8

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.91%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.37%

OGE Energy Corp. - US6708371033

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OGE

1.c. Company Highlights

Fairly Valued

Medium Volatility

Average Yield

Earnings Miss

Revenues Miss

Expensive

Earnings Beats

Average Quality

Stable Momentum

Revenues Beats

Average Growth

2. OGE Energy Corp. Delivers Strong Q3 Earnings

Operational Highlights

Capital Plan and Load Growth

Financial Outlook and Valuation

Future Prospects

3. NewsRoom

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%

7. Detailed Products

Electricity Distribution

Electric Transmission

Energy Trading and Marketing

Renewable Energy Solutions

8. OGE Energy Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.55$

Current Price

43.55$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA