{"url_path":"/sec/oge/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A Quantitative and Qualitative Disclosures About Market Risk.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-18","source_url":"https://www.sec.gov/Archives/edgar/data/1021635/0001193125-26-055414-index.html","accession_number":"0001193125-26-055414","cik":"0001021635","ticker":"OGE","issuer_name":"OGE ENERGY CORP.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1021635/0001193125-26-055414-index.html","primary_entity_key":"0001021635","primary_entity_name":"OGE ENERGY CORP."},"word_count":721,"has_tables":true,"body_markdown":"Item 7A. Quantitative and Qualitative Disclosures About Market Risk.\n\n \n\nMarket risks are, in most cases, risks that are actively traded in a marketplace and have been well studied in regards to quantification. Market risks include, but are not limited to, changes in interest rates and commodity prices. The Registrants' exposure to changes in interest rates relates primarily to variable-rate debt, commercial paper and future long-term debt issuances. The Registrants are exposed to commodity prices in their operations to the extent any fuel price changes are not recovered in customer rates.\n\n \n\nRisk Oversight Committee\n\n \n\nThe Registrants manage market risks using a risk committee structure. OGE Energy's Risk Oversight Committee, which consists of the Chief Financial Officer, other corporate officers and members of management, is responsible for the overall development, implementation and enforcement of strategies and policies for all significant risk management activities of the Registrants. In 2025, this committee and the Registrants' management applied a holistic perspective of risk assessment and application of its strategies and policies to manage the Registrants' overall financial performance. The Chief Financial Officer, acting in his role as the principal financial officer and as a member of the Risk Oversight Committee, reports periodically to the Audit Committee of OGE Energy's Board of Directors on the Registrants' risk profile affecting anticipated financial results, including any significant risk issues. The Audit Committee updates the Board of Directors regarding the company's risk management practices and the steps management has taken to monitor and control applicable risks.\n\n \n\nRisk Policies\n\n \n\nManagement utilizes risk policies to control the amount of market risk exposure. These policies are designed to provide the Audit Committee of OGE Energy's Board of Directors and senior executives of the Registrants with confidence that the risks taken on by the Registrants' business activities are in accordance with their expectations for financial returns and that the approved policies and controls related to market risk management are being followed.\n\n \n\nInterest Rate Risk\n\n \n\nThe Registrants' exposure to changes in interest rates primarily relates to variable-rate debt and commercial paper. The Registrants manage their interest rate exposure by monitoring and limiting the effects of market changes in interest rates. The Registrants may utilize interest rate derivatives to alter interest rate exposure in an attempt to reduce the effects of these changes. Interest rate derivatives would be used solely to modify interest rate exposure and not to modify the overall leverage of the debt portfolio, but the Registrants have no intent at this time to utilize interest rate derivatives.\n\n \n\n45\n\n \n\nThe fair value of the Registrants' long-term debt is based on quoted market prices and estimates of current rates available for similar issues with similar maturities or by calculating the net present value of the monthly payments discounted by the Registrants' current borrowing rate. The following table presents the Registrants' long-term debt maturities and the weighted-average interest rates by maturity date.\n\nYear Ended December 31\n(Dollars in millions)\n\n2026\n\n \n\n2027\n\n \n\n2028\n\n \n\n2029\n\n \n\n2030\n\n \n\nThereafter\n\n \n\nTotal\n\n \n\n12/31/25 Fair Value\n\n \n\nOGE Energy (holding company) fixed-rate debt (A):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPrincipal amount\n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n350.0\n\n \n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n350.0\n\n \n\n$\n\n362.5\n\n \n\nWeighted-average interest rate\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n5.45\n\n%\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n5.45\n\n%\n\n \n\n \n\nOGE Energy (holding company) variable-rate debt (A):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPrincipal amount\n\n$\n\n—\n\n \n\n$\n\n60.0\n\n \n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n60.0\n\n \n\n$\n\n60.0\n\n \n\nWeighted-average interest rate\n\n \n\n—\n\n%\n\n \n\n4.89\n\n%\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n4.89\n\n%\n\n \n\n \n\nOG&E fixed-rate debt (A):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPrincipal amount\n\n$\n\n—\n\n \n\n$\n\n125.0\n\n \n\n$\n\n500.0\n\n \n\n$\n\n—\n\n \n\n$\n\n600.0\n\n \n\n$\n\n3,671.5\n\n \n\n$\n\n4,896.5\n\n \n\n$\n\n4,653.8\n\n \n\nWeighted-average interest rate\n\n \n\n—\n\n%\n\n \n\n6.65\n\n%\n\n \n\n4.34\n\n%\n\n \n\n—\n\n%\n\n \n\n3.28\n\n%\n\n \n\n5.08\n\n%\n\n \n\n4.82\n\n%\n\n \n\n \n\nOG&E variable-rate debt (B):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPrincipal amount\n\n$\n\n—\n\n \n\n$\n\n56.0\n\n \n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n47.0\n\n \n\n$\n\n103.0\n\n \n\n$\n\n103.0\n\n \n\nWeighted-average interest rate\n\n \n\n—\n\n%\n\n \n\n2.40\n\n%\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n—\n\n%\n\n \n\n2.40\n\n%\n\n \n\n2.40\n\n%\n\n \n\n \n\n(A)\nPrior to or when these debt obligations mature, the Registrants may refinance all or a portion of such debt at then-existing market interest rates which may be more or less than the interest rates on the maturing debt.\n\n(B)\nA hypothetical change of 100 basis points in the underlying variable interest rate incurred by OG&E would change interest expense by $1.0 million annually.\n\n \n\n46"}