Overview

• US electric utility's Q1 net income and EPS declined yr/yr on mild weather, higher costs

• Q1 operating revenue was little changed from a year earlier

• Company reaffirmed 2026 earnings guidance, assuming normal weather for the rest of the yr

Outlook

• OGE Energy maintains 2026 EPS guidance of $2.43, in a range of $2.38 to $2.48

• Company says 2026 guidance assumes normal weather for the remainder of the year

• Company notes significant seasonality in earnings due to weather

Result Drivers

• MILD WEATHER - Co said year-over-year decrease in net income was primarily due to mild weather reducing electricity demand

• HIGHER OPERATING COSTS - Co cited higher operation and maintenance expense as a key factor in lower Q1 net income

• LOWER DEPRECIATION AND INTEREST EXPENSE - Lower depreciation and interest expense on assets placed in service partially offset negative impacts, per co

Company press release: ID:nPn331mG3a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Pretax Profit		$59.40 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for OGE Energy Corp is $49.00, about 3% above its April 28 closing price of $47.59

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

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