OGE Rides on Expanding Renewable Portfolio & Infrastructure Spending

OGE Energy Corp. OGE continues to benefit from its strategic investments, which are focused on infrastructure upgradation. The company benefits from its focus on carbon-reduction initiatives and its robust renewable generation portfolio, positioning it for stronger long-term performance.

However, this Zacks Rank #3 (Hold) company faces risks related to supply-chain disruption.

Factors Acting in Favor of OGE

To earn profitable incentives from such hefty fundings for utility-scale clean energy projects, OGE Energy has been investing steadily to expand its renewable generation assets. As of Dec. 31, 2024, the company owned the 120 megawatts (MW) Centennial, 101 MW OU Spirit and 228 MW Crossroads wind farms. It also owns and operates six solar sites across the state of Oklahoma and one in Arkansas, which comes with a cumulative generation capacity of 32.2 MW.  

Moreover, the company offers the Renewable Energy Credit purchase program, the Green Power Wind Rider and the Utility Solar Program, which are rate options that make renewable energy resources available as a voluntary option to all OG&E Oklahoma retail customers. OG&E aims to continue to deploy more renewable energy sources that do not emit greenhouse gases. Such initiatives should further boost OGE Energy’s renewable energy portfolio.

The company is pursuing an aggressive investment strategy to upgrade its infrastructure and provide seamless services to its customers. The company plans to spend $6.50 billion through 2029. The figure rose 4% from its prior five-year capital expenditure plan of $6.25 billion. With these capital investments, OGE aims to maintain and improve the safety, resiliency and reliability of its distribution and transmission grid and generation fleet.

Challenges Faced by OGE

In recent times, factors like raw material inflation, logistical challenges and certain component shortages have resulted in supply-chain disruption within the utility market. These have also resulted in supply-chain disruption, and may continue to cause delays in construction activities and equipment deliveries related to OGE Energy’s capital projects.

Moreover, rising electricity production costs due to increased fuel prices, inflation and shortage of components also pose a risk for electricity manufacturers like OGE Energy. The company’s fuel, purchased power and transmission expenses surged 11% year over year in the third quarter of 2025.

OGE’s Share Price Performance

In the past month, shares of the company have risen 1.5% against the industry’s 2.9% decline.

Stocks to Consider

Some better-ranked stocks from the same industry are Ameren AEE, NiSource NI and Avista AVA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ameren’s long-term (three to five years) earnings growth rate is 8.52%. The Zacks Consensus Estimate for AEE’s 2026 earnings per share (EPS) implies an improvement of 7.2% year over year.

NI’s long-term earnings growth rate is 7.93%. The Zacks Consensus Estimate for NI’s 2026 EPS implies an improvement of 8.2% year over year.

AVA’s long-term earnings growth rate is 7.06%. The Zacks Consensus Estimate for AVA’s 2026 EPS implies an improvement of 9.3% year over year.

 

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This article originally published on Zacks Investment Research (zacks.com).

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