OGE Energy Corp. (NYSE: OGE) priced an underwritten public offering of 8,023,256 shares of its common stock at $43.00 per share, creating a $345 million capital raise. The offering was led by Morgan Stanley and JPMorgan, with 4,011,628 shares sold directly to the underwriters and an equal number sold through forward sale agreements. Underwriters also received an option to purchase up to 1,203,488 additional shares at the offering price.
The forward sale agreements provide a discount to the public offering price: the initial forward sale price is $41.71 per share, and settlement of the forward sale is expected no later than 18 months after the offering. The company can choose cash or net share settlement, which may reduce immediate dilution but could result in future share issuance.
Proceeds from the offering will be used to fund key capital projects, including the Horseshoe Lake generating units 13 and 14 and the Ft. Smith to Muskogee transmission line, as well as to repay debt and support other general corporate purposes. These projects are part of OGE’s long‑term strategy to modernize its grid and maintain reliable service for its 910,000‑customer base.
Investors reacted negatively to the announcement, citing dilution and the impact on the company’s capital structure. The forward sale structure is intended to mitigate immediate dilution, but the potential for future share issuance remains a concern.
OGE is a regulated electric utility that has paid dividends for 55 consecutive years, with a current yield of about 3.85%. The company’s market capitalization is roughly $8.89 billion. In the third quarter of 2025, OGE reported earnings of $1.14 per diluted share on revenue of $1.05 billion, exceeding forecasts and reflecting strong performance in its core segments.
CEO Sean Trauschke highlighted the company’s operational strength and commitment to growth, noting that the equity offering reflects confidence in OGE’s long‑term prospects and its ability to fund essential infrastructure investments while maintaining a solid balance sheet.
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