OG&E 2011 Annual Report Download - page 5

OGE Energy Corp. 3
One of a company’s most important
attributes for success is employees
aligned around values and beliefs,
vision and strategy. It’s essential in an
environment where change presents
rich opportunities for those who remain
focused and execute on a well-dened
plan. At OGE, our focus has never been
sharper and our members more com-
mitted to achieving our vision of being
an industry leader.
2011 tested our mettle. Blizzards,
tornados, 63 days of 100-plus degree
temperatures, along with new environ-
mental regulations, regulatory proceed-
ings in Oklahoma and Arkansas, and
depressed natural gas prices at Enogex
challenged our resolve.
Through it all, our members met
each challenge head-on and recorded
one of the most successful years in
our company’s 110-year history.
Award-winning performance
On the financial front, the company
again posted record earnings and
increased its dividend for the sixth
consecutive year. While weather was
a primary earnings driver, we’re continu-
ing our efforts to manage costs and
improve our operations, both of which
contributed to improved performance.
Our solid nancial performance
along with sound capital investments,
energy efciency programs, smart-grid
initiative and customer satisfaction
received high marks from industry
observers at Electric Light and Power
magazine, which named OG&E North
America’s Utility of the Year. Our cus-
tomers also weighed in through the
annual J.D. Power and Associates survey
of utility customer satisfaction. OG&E
won prestigious J.D. Power awards
for both residential and commercial
customer satisfaction. And at Enogex,
we were among the best in class in
safety performance – a milestone of
signicant importance to me in our quest
to operate incident- and injury-free.
Focused on execution
While we’re proud to receive awards,
we remain focused on executing the
day-to-day strategy that sets us apart
from others in our industry.
We continue to make progress
toward our goal of not building new,
incremental fossil-red generation until
2020. Our customers are using smart
meter technology to reduce demand
during peak periods, which is essential
as we shattered peak demand records
on nine separate occasions in 2011.
We’re adding renewable wind energy
to our system, and we’re continuing to
expand our high-voltage transmission
system to improve reliability and open
access to the regional marketplace.
At Enogex, we secured long-term
acreage dedications and completed the
Cordillera midstream acquisition that
positions us for continued growth in
the Granite Wash, one of the region’s
most economic natural gas plays. We
saw record growth in gathering and
processable volumes while maintaining
rst quartile reliability numbers.
Positive outlook
We continually analyze our operating
environment, scanning the road ahead
as we steer through the present. Our
outlook for the natural gas midstream
industry continues to be constructive
despite short-term supply and demand
imbalances. Longer term, there are
opportunities for growth as power
generation utilizes more natural gas,
as market share in transportation grows
and as new gas supplies are found in
areas with little existing infrastructure.
We expect the industry to require tens
of billions of dollars in new infrastructure
investment by 2020.
Our local economy continues to
show improvement, which is reected
in our continued growth in kilowatt hour
sales. We face increasingly stringent
environmental regulatory policies, but
continue to advocate for solutions that
allow us to comply without causing
significant financial impacts for our
customers and shareholders.
Vision to lead
As we look to the future, we’re focused
on achieving our long-term earnings
growth target of 5–7 percent to provide
a premium valuation for our shareholders.
We’re committed to continued dividend
growth to complement our growth in
earnings. Accomplishing our return
objectives requires the right mix of oper-
ating and nancial capabilities working
together within a high-performance
culture focused on delivering value.
Our vision is to be the industry leader
with a passion for helping customers,
developing members and delivering
shareholder value. We’re moving closer
to that vision each day through our keen
focus on what truly sets us apart.
I thank you for your continued support
and look forward to next year, when I can
again say to you: We delivered.
Peter B. Delaney
Chairman, President and Chief Executive Officer
Letter to Shareholders