Utility OGE Energy falls on $345 mln equity offering

OGE Energy

21/11/2025 12:47

** Shares of electric utility OGE Energy OGE.N down 1.9% before the bell at $43.27 following pricing of $345 mln follow-on

** Oklahoma City, Oklahoma-based co late Thurs announced ~8 mln shares at $43, a 2.6% discount to last sale

** OGE sold ~4 mln shares directly, and entered into 18-month forward sale agreements with joint lead bookrunners Morgan Stanley and JP Morgan for ~4 mln shares

** Co plans to use net offering proceeds to fund capex, including Horseshoe Lake generating units 13 and 14 and Fort Smith to Muskogee Transmission line, and for other general corporate purposes, including debt repayment/refinancing

** OGE had ~201.5 mln shares outstanding prior to offering

** A forward sale structure allows OGE to lock in current stock price and delays new share issuance and collecting proceeds until it needs the funds, thus avoiding immediate dilution

** Through Thurs, OGE shares up 7% YTD

** Avg rating among 12 analysts is "buy" and median PT is $47.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))