OGE Energy Corp. Announces Successful Pricing of 8 Million Shares Offering

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

In a significant financial move, OGE Energy Corp. (NYSE: OGE) has announced the pricing of an underwritten public offering of 8,023,256 shares of its common stock at $43.00 per share. This offering is a crucial part of the company's strategy to raise capital for its projects, including the Horseshoe Lake generating units and the Ft. Smith to Muskogee Transmission line.

Of the shares available for public offering, 4,011,628 shares will be sold directly by OGE Energy Corp. to the underwriters, while another 4,011,628 shares will be borrowed from third parties and sold by designated forward sellers. These forward agreements extend the financial flexibility needed for the ample transaction volume.

Underwriters and Sales Process

The public offering is being led by notable financial institutions, namely Morgan Stanley and J.P. Morgan, who are serving as joint lead bookrunners. They will be supported by a team of bookrunners including Mizuho, MUFG, RBC Capital Markets, and Wells Fargo Securities. The approach to selling these shares consists of various methods including transactions on the New York Stock Exchange, over-the-counter market operations, and negotiated agreements, depending on market conditions at the time of sale.

The expected closing date of the offering is around November 24, 2025, strictly adhering to customary conditions that are typical in such financial transactions. To further cement their strategic goals, OGE Energy Corp. also granted the underwriters an option to purchase an additional 1,203,488 shares. Should this option be exercised, OGE may enter into further forward sale agreements or sell shares directly to the underwriters, effectively broadening their investment opportunities.

Financial Implications

The net proceeds from this offering are intended to empower OGE Energy Corp. to reinforce its capital investments and sustain corporate operations. Specifically, the funds will facilitate capital projects including ongoing development at Horseshoe Lake and improvements in the regional transmission lines.

It is essential to note that while the company itself will not initially receive proceeds from the shares sold by forward sellers, it anticipates future net proceeds from the settlement of these forward agreements. This dual approach not only positions OGE to scale but also reflects their knack for strategic financial planning amidst a competitive energy market.

Future Outlook

The landscape of the energy sector is always shifting, influenced by economic fluctuations, regulatory changes, and technological advancements. OGE Energy Corp. maintains a dedication to navigating these challenges, aiming for sustainable growth and enhanced shareholder value. The company has recognized the need for adaptability, especially as it deals with factors such as commodity prices, financing conditions, and potential regulatory challenges.

As the market evolves, OGE's strategic focus on funding pivotal projects and leveraging partnerships with leading financial institutions will remain vital. Stakeholders and investors can look forward to upcoming developments as the offering takes its course, highlighting the company's commitment to maintaining its position as a formidable player in the electric utility space.

In closing, this public offering underscores OGE Energy Corp.’s expansive growth aspirations while keeping shareholder interests at the forefront. As developments unfold, the company will undoubtedly strive to meet its community’s energy needs efficiently and effectively.

Disclaimer

This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where it would be illegal to do so. Detailed information will be available through OGE Energy Corp.'s SEC filings, and interested parties are encouraged to review these documents for comprehensive insights.