OGE

OGE Energy is the holding company for OG&E, a vertically integrated regulated electric utility serving Oklahoma and western Arkansas with 6,921 MW of generating capability. It is a classic regulated-utility profile: FY2025 revenue rose 9.4% to $3.19B, net income grew 6.6% to $471M, and diluted EPS rose 5.9% to $2.32, with a healthy 25.1% operating margin and 54.9% gross margin reflecting rate-regulated returns. The most encouraging detail in the MD&A is load growth: commercial revenue jumped to $955.7M from $816.5M (and $666.7M in 2023), a sign of strong demand in OG&E's service territory that supports continued rate-base investment.

The company is in a heavy investment phase, spending $1.05B of capex against $1.14B of operating cash flow (the latter up a strong 39.9%), funding generation and grid expansion to serve that growing load. Long-term debt of $5.37B (up 6.9%) against $4.98B of equity gives a liabilities/equity of 1.89x — typical and manageable for a regulated utility. The dividend of $342M (up 1.0%) is well covered by the $471M of earnings, providing a reliable income stream of roughly 3% at the current price.