Chris Hark

Chris Hark asked if the dividend growth rate should be expected to align with the EPS CAGR. He also questioned the cadence of future rate filings, specifically if pushing the next Oklahoma rate review to the second half of 2026 would establish a similar timing for subsequent filings.

Answer

Chuck Walworth, CFO, explained that OGE Energy has intentionally grown the dividend at a lower rate than EPS to target a 65%-70% payout ratio, with a reassessment planned once that target is met. He clarified that while the H2 2026 rate filing shift is part of a settlement, the company's underlying philosophy for future rate filings remains unchanged.

Chris Hark asked if OGE Energy's dividend growth rate should be expected to align with its EPS CAGR. He also inquired about the cadence of future rate filings, specifically if pushing the next Oklahoma rate review to the second half of 2026 implies a similar timing for subsequent filings over the next two years.

Answer

Charles Walworth, CFO, explained that OGE Energy is intentionally targeting a 65%-70% payout ratio, with dividend growth currently lower than EPS CAGR to achieve this. He stated that capital allocation decisions would be reassessed once the target is met. Regarding rate filings, Mr. Walworth clarified that the philosophy remains consistent, with the 2H 2026 shift being a term of the settlement agreement, and future filings would continue under the same established philosophy.