Good day, ladies and gentlemen, and welcome to the First Quarter 2012 OGE Energy Earnings Conference Call. My name is Kisha, I will be your operator for today. At this time, all participants are in listen-only mode. Later we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. I’d now like to hand the conference over to Mr. Todd Tidwell, Director of Investor Relations. Please proceed.

Thank you, Kisha. Good morning, everyone, and welcome to OGE Energy Corp’s first quarter 2012 earnings call. I’m Todd Tidwell, Director of Investor Relations. And with me today, I had Pete Delaney, Chairman, President and CEO of OGE Energy Corp.; Sean Trauschke, Vice President and CFO of OGE Energy Corp.; and Keith Mitchell, President of Enogex. In terms of the call today, we will first hear from Pete, followed by an explanation from Sean of first quarter results and finally as always we will answer your questions. I’d like to remind you that this conference is being webcast and you may follow along on our website at oge.com. In addition, the conference call and accompanying slides will be archived following the call on that same website. Before we begin the presentation, I’d like to direct your attention to the Safe-Harbor statement regarding forward-looking statements. This is an SEC requirement for financial statements, and simply states that we cannot guarantee forward-looking financial results but this is our best estimate to-date. In addition, there is a Regulation G reconciliation for EBITDA in the appendix along with projected capital expenditures. I will now turn the call over to Pete Delaney for his opening comments. Pete?

Thank you, Todd. Good morning, everyone, and welcome to our call. For the first quarter of 2012 we reported earnings of $0.38 per share compared to $0.25. In 2011 with higher margins and earnings at utility end Enogex. The increase of Enogex was driven by the investments associated with volume growth, particularly in the processing business. Processing volumes grew 20% quarter-over-quarter highlighting Enogex expansion liquids rich basins of Western Oklahoma and the Texas Panhandle. Enogex also benefited from insurance proceeds associated with the Cox City plant fire discussed on previous call. On the utility side, primary earnings drivers are investments in the Crossroads wind farm and transmission that benefits both customers and shareholders. While the first quarter results show continued progress in several fronts, the pending Oklahoma rate case is one of those. As you recall, key differences between our request and the interveners are the ROE requested and the recovery of O&M expenses outside the test year. We’re still waiting on the ALJ decision that while not binding on the Oklahoma Commission, does in our opinion influence decision making. We had expected that report would have been issued by this time. We may have underestimated however, the impact of the States cut backs to the Commissions’ budget. Meanwhile, we’re hopeful that within a short period of time an ALJ report will be issued. We will be working to bring this case to a conclusion and we will keep you posted as events unfold. This uncertainty around the rate case continues to overhang the markets view of our future earnings, so today we’re providing 2012 earnings guidance without the impact of the Oklahoma rate case. With the expectations of an order earlier in the quarter, we had previously declined to issue 2012 guidance for the utility. We took prudent action…

Thank you, Pete, and good morning. For the first quarter, we reported net income of $37 million or $0.38 per share as compared to net income of $25 million or $0.25 per share in 2011. The contribution by business unit on a comparative basis is listed on the slide. At OG&E net income for the quarter was $12 million or $0.13 per share as compared to net income of $6 million or $0.06 per share in 2011. Now looking at some of the key drivers. First quarter gross margin came in stronger as we saw an increase of $29 million or 14%, and I’ll discuss those drivers on the next slide. O&M and depreciation were higher for the quarter; the increase was due to additional assets being placed in the service such as Crossroads and smart grid. We do have revenue offsets for both of these. Net other income decreased nearly $3 million due to lower AFUDC equity resulting from the completion of the Crossroads Wind Farm. Interest expense was $5 million higher mainly due to the long-term debt issuance we completed in May of 2011. I would like to remind you that although earnings are up for the quarter compared to last year, the first quarter comprises less than 5% of the utilities earnings for the year. Now turning to first quarter gross margin. The utility performed well despite warmer than normal weather. There were two primary drivers for the increase in gross margin. First, was the recovery of various utility investments as I mentioned previously. This accounted for $24 million of the increased margin. Second, was the recovery of transmission investments primarily from SPP customers which increased gross margin by $9 million, major offset to these gains was the weather which lowered gross margin by $12 million, and…

(Operator Instructions) Your first question comes from the line of Brian Russo with Ladenburg Thalmann. Please proceed. Brian Russo - Ladenburg Thalmann & Co.: Hi. Good morning.

Hi. Good morning, Brian.

Hi, Brian. Brian Russo - Ladenburg Thalmann & Co.:

Brian, this is Sean. The guidance excludes any impact of the rate order. And so, our plan is something that we view the utility that we – that’s sustainable. So, I want to avoid speculating what we would and wouldn’t do, but I think it’s safe to say that the impact of the rate outcome would be additive to the – to our guidance. Brian Russo - Ladenburg Thalmann & Co.: Okay. So, I guess my math is in line.

Yeah. If your math was, you said $30 million is roughly $0.18, yes. Brian Russo - Ladenburg Thalmann & Co.: Yeah. Okay. And you mentioned you cut back on your CapEx at the utility, where are those cutbacks coming from? And why exactly – are you pulling back on that?

Well, this is something we’ve been looking at for quite some time. And we’ve been investing a lot of money, improving the reliability of our system across our footprint. And we recognized that we’re going to have increased environmental expenditures coming down the road, and we’re balancing, we’re trying to minimize the impact on reliability and customer impact with these future environmental expenditures. So this is not in any one particular area, but this is more efficiencies and rationalization of some of the investments we’re making. Brian Russo - Ladenburg Thalmann & Co.: Okay, great. And just switching gears to Enogex, you got about $0.15 range in your guidance assumption even after what appears to be a fairly strong first quarter ’12, is there any bias towards the upside of that range or the mid end of the range?

It’s the first quarter. I think we’re comfortable right where we’re right now, Brian. No bias at this time one way or the other. Brian Russo - Ladenburg Thalmann & Co.: Okay. And the CapEx profile at Enogex, have there been any additional projects identified or is the CapEx similar to what we see – what we saw last quarter?

It’s actually increased by $55 million. And I think in Pete’s remarks, he talked about an additional acreage dedication for that, but the CapEx has increased by $55 million. And maybe Keith can talk a little bit about that dedication.

Sure. There is a lot of activity going on in the rich areas around our system, and we were successful with bidding on one package. There are other packages, but at this point in time, we added in the CapEx for what we were awarded. Brian Russo - Ladenburg Thalmann & Co.: Okay. And remind me – I think you got over a million dedicated acreages, is that accurate?

Over the last year and a half, yes, there has been over a million acres that we’ve had awarded to us in dedications across our system. Brian Russo - Ladenburg Thalmann & Co.: Okay. Is there any – could you break that down by region?

Well, not to get too specific, but it’s definitely Western Oklahoma, Texas, that’s where there has been a lot of development, the Granite Wash areas and the Cana-Woodford areas, is where most of this activity has been occurring. Brian Russo - Ladenburg Thalmann & Co.: Okay. And then lastly, we’ve seen a lot of we’ve seen a lot of activity in the MLP space and just in the midstream sector, particularly in your mid-continent region, you guys have got a lot of dedicated acreage, you got a very good partner in ArcLight, and what’s the long-term strategy for Enogex and is NMLP arrangement something to be considered?

Well, Brian our strategy really hasn’t changed from the outset when we did the partnership. It was – our strategy is to, again as you noted, we’re grateful to be successful and the dedications that we’re undertaking. The Cordillera acquisition, the $200 million acquisition, we view it as important for us to help position in a great area. Of course ArcLight Capital was helpful in that regard, but – and so, we continue with our plans to continue to build that portfolio of acres dedications, which is I pointed out as the basis for the future growth of that company. We’ve expanded the leadership team and we’re doing everything to strengthen that company more and more as a standalone entity. And so as you know, that provides us greater flexibility with which to – with our partner go down different roads in the future, which one is under consideration would be a nice little partnership, and obviously I talked a little bit in my comments about we’re looking for -- to produce long-term sustainable value for our shareholders. And so, we’re – that’s what our goal is and it remains our goal. Brian Russo - Ladenburg Thalmann & Co.: Okay, great. Thank you. One last quick question, are you guys involved in the Mississippian Oil Play at all?

We’ve been involved in – I’d say more of the eastern portion of that. That’s a pretty large area, northwest Oklahoma, northern Oklahoma into the Kansas. But we’ve been talking to some of the producers in the area, and we certainly think we’ll be successful in certain parts of that play. Brian Russo - Ladenburg Thalmann & Co.: Okay, thank you very much.

(Operator Instructions) Your next question comes from the line of Andy Bischof with Morningstar. Please proceed.

Hi, good morning. Just one quick question for you. If you could – once the decision is hand down by the ALJ, if you could kind of revive the regulatory timeframe, which we could expect decision on the rate case decision as you can?

Well, after the ALJ, there is probably – in the earliest, would be after that period of time I think would be three weeks or so period …

Okay.

… about 30 days. There is the two-week period for appeal, but that’s – again, that’s probably the minimum. There is no – on the other side, it could go on longer than that.

Okay. And there is really no indication of when the ALJ decision will come down?

We haven’t been very good at predicting that over the last couple of months. So – but we do believe that, we do have indications that it is in the near-future.

Okay, great. Thank you.

Your next question comes from the line of Greg Reiss with Catapult. Please proceed.

Hi. Good morning. It’s actually David Frank.

Hi, Dave. Good morning.

Hey, good morning. Question for you guys on the PSO’s original Haze Settlement …

Yeah.

… and I was little unclear from your comments earlier on, but I mean, is there road for you to settle for some kind of similar compliance level, that’s more economic to the State or this does not have much application – applicability toward your fleet?

I think it’s the latter, which doesn’t have much applicability to us.

Okay. So there is not really like a cheaper option, if you were to really comply with?

Well, there is cheaper options, and we’ve evaluated exhaustibly a lot of those, and – but unfortunately, we don’t believe that the EPA will entertain any of those cheaper options in terms of the settlement. As we – and again, we don’t have – I think PSO’s agreement and principle, those are the basic terms, but always a lot of details are important to work things out. But again, we – any type of settlement like that for us would again put a lot of economic – big increase in rates on our customers.

Okay. And was I correct to understand that you would expect some kind of decision on this, potentially the summer kind of court ruling?

Now with regional haze, which is a much bigger number potentially we believe that –again our estimate would be that we would get a stay from the Tenth. The stay decision would be made by the Tenth Circuit Court of Appeals in July around and so depending on what that decision is, obviously will have an impact on what we do.

Okay. And if they grant a stay then …

Yeah, they grant a stay, David that starts the – actually the five-year period then would start at the end of the litigation when the case is decided. So, that could – decision could, be in – would probably be in 2013. Various people tell you whether its middle of ’13 or end of ’13, and so your compliance then would be pushed back to 18.

Okay. And if they don’t grant a stay, then you …

Then the …

… should have to make some decision on compliant by the normal time?

Yes. We are already – January 27, so we’re already couple of months into that time. The clock is ticking, and will continue to tick.

Okay. All right, great. Thank you very much.

You’re welcome.

There are no further questions in queue at this time. I’d now like to hand the conference over to Mr. Pete Delaney for any closing remarks.

Thank you, operator. As always, I’d like to acknowledge our Company’s members continued hard work to make this quarter success. And I’d thank you for your continued interest in OGE Energy. Have a great day.

Thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect your lines. Good day.