Company Reports

We are reaffirming our $38 per share fair value estimate for OGE Energy after the company announced a comprehensive settlement in its 2024 electric rate review in Oklahoma.

OGE Energy completed its long transition to a fully regulated all-electric utility in late 2022 when it finished divesting its midstream gas business. Investors can now focus on electricity demand growth and rate regulation primarily in Oklahoma, which represents 90% of earnings.

We are upgrading OGE Energy's Morningstar Moat Rating to Narrow from None to reflect what we consider a more constructive regulatory outlook and attractive long-term electricity demand growth that should boost shareholder returns. OGE's exit from the midstream oil and gas business, which we considered to have no economic moat, also supported our upgrade.

OGE Energy completed its long transition to a fully regulated all-electric utility in late 2022 when it finished divesting its midstream gas business.

We are reaffirming our $38 fair value estimate for OGE Energy after the company reported earning $0.12 per share in the first quarter, down from $0.20 in the first quarter of 2023.

OGE Energy completed its long transition to a fully regulated all-electric utility in late 2022 when it finished selling the 95 million Energy Transfer partnership units it acquired in a swap transaction for its stake in midstream firm Enable. Utilities investors should be more comfortable with OGE now that it is a pure play regulated electric utility.

We are reaffirming our $38 fair value estimate for OGE Energy after the company reported earning $2.07 per share in 2023, in line with our estimate after adjusting for weather impacts.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

After meeting management, we expect the next two years will be critical for OGE to demonstrate its ability to grow earnings consistently using the capital raised from its midstream sales.

OGE Energy completed its long transition to a fully regulated all-electric utility in late 2022 when it finished selling the 95 million Energy Transfer partnership units it acquired in a swap transaction for its stake in Enable. Utilities investors should be more comfortable with OGE now that it has no direct exposure to energy commodity markets or fossil fuels.

We are reaffirming our $37 fair value estimate for OGE Energy after the company reported earning $1.20 per share in the third quarter of 2023, down from $1.23 in the third quarter last year after adjusting for earnings from the since-divested midstream business. We are reaffirming our no-moat rating.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

We are reaffirming our $37 fair value estimate for OGE Energy after the company reported earning $0.44 per share during the second quarter of 2023, mostly flat from the second quarter last year after adding back a loss from the since-divested midstream operations in the second quarter of 2022. We are reaffirming our no-moat rating.

OGE Energy completed its long transition to a fully regulated all-electric utility in late 2022 when it finished selling the 95 million Energy Transfer partnership units it acquired in a swap transaction for its stake in Enable. Utilities investors should be more comfortable with OGE now that it has no direct exposure to energy commodity markets or fossil fuels.

We are reaffirming our $37 fair value estimate for OGE Energy after the company reported earning $0.19 per share during the first quarter of 2023, mostly flat after adjusting for gains related to OGE's ownership in Energy Transfer during 2022 and other parent-level benefits during the first quarter of 2022. We are reaffirming our no-moat and stable moat trend ratings.

OGE Energy completed its long transition to a fully regulated all-electric utility in mid-2022 when it finished selling the 95 million Energy Transfer partnership units it acquired in a swap transaction for its stake in Enable. Utilities investors should be more comfortable with OGE now that it has no direct exposure to energy commodity markets or fossil fuels.

We are reaffirming our $37 fair value estimate for OGE Energy after the company reported earning $3.32 per share in 2022, down from $3.68 in 2021. We are reaffirming our no-moat and stable moat trend ratings.

We are reaffirming our $37 fair value estimate for OGE Energy after the company reported earning $1.31 per share in the third quarter, up from $1.26 in the third quarter of 2021. We are reaffirming our no-moat and stable moat trend ratings.

OGE Energy completed its long transition to a fully regulated all-electric utility in mid-2022 when it finished selling the 95 million Energy Transfer partnership units it acquired in a swap transaction for its stake in Enable. Utilities investors should be more comfortable with OGE now that it has no direct exposure to energy commodity markets or fossil fuels and can establish a stable core dividend policy.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.