OGE Energy’s $9.4 Billion Debt Burden: Why It Matters

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OGE ($NYSE:OGE) Energy is one of the largest electric utilities in the United States. As of December 31, 2018, the company had $9.4 billion in total debt outstanding. This amount of debt is significant because it is equal to approximately 40% of the company’s total assets. The company’s debt burden is meaningful because it affects the company’s ability to raise capital, service its debt, and pay dividends.

In addition, the company’s debt burden may also affect its credit rating. The company’s debt burden is a concern because it may limit the company’s ability to invest in new projects and technologies. In addition, the company’s debt burden may also affect its ability to pay dividends to shareholders.

Stock Price

On Thursday, OGE Energy‘s stock opened at $34.8 and closed at $34.4, down by 1.3% from previous closing price. So far, media sentiment on the company’s $9.4 billion debt burden has been mostly negative. One reason why this debt burden matters is that it represents a significant portion of the company’s total assets. Another reason why this debt burden matters is that it will likely lead to higher interest expenses for the company. If the company’s debt burden increases, its interest expenses will likely increase as well.

The final reason why this debt burden matters is that it could make it difficult for the company to access additional financing in the future. If the company needs to raise additional capital, it will likely have to pay higher interest rates to attract investors. This could put even more strain on the company’s finances. Live Quote…

About the Company

VI Analysis

OGE Energy is a utility company that delivers electricity and natural gas to customers in Oklahoma and Arkansas. The company is classified as a ‘rhino’ based on its moderate revenue or earnings growth. Investors interested in this type of company may be looking for stable dividend payments and a company that is able to pay off its debt and fund future operations. OGE Energy has a health score of 4/10, which is considered intermediate. The company is strong in dividend payments and medium in asset growth, profitability, and debt repayment. More…

VI Peers

In the electric and natural gas utility industry in the United States, there are four companies that stand out as the largest competitors. These are OGE Energy Corp, DTE Energy Co, Eversource Energy, and NextEra Energy Inc. These four companies account for a large majority of the market share in the industry and are all major players in the space.

– DTE Energy Co ($NYSE:DTE)

DTE Energy Co is a holding company that engages in the utility operations through its subsidiaries. It provides natural gas and electricity to residential, commercial, and industrial customers in Michigan. The company’s segments include Electric, Gas, Gas Storage and Pipelines, Power and Industrial Projects, and Corporate and Other.

– Eversource Energy ($NYSE:ES)

Eversource Energy is an American utility company that serves electric and natural gas customers in Connecticut, Massachusetts, and New Hampshire. The company has a market cap of 26.86B as of 2022 and a return on equity of 10.13%. Eversource Energy is one of the largest energy delivery companies in New England. The company is committed to providing safe and reliable energy to its customers.

– NextEra Energy Inc ($NYSE:NEE)

NextEra Energy Inc is a clean energy company with a focus on renewable energy. The company has a market cap of 153.59B as of 2022 and a return on equity of 6.09%. NextEra Energy Inc is the largest producer of wind and solar power in the world and is also the largest provider of electricity in the United States. The company’s mission is to create a cleaner, healthier and more prosperous world for all.

Summary

Investing in OGE Energy may be risky, given the company’s large debt burden. However, if the company can successfully reduce its debt, it could be a rewarding investment. Media sentiment towards OGE Energy has been mostly negative, so it may be worth doing your own research before investing.