Good morning, ladies and gentlemen, and welcome to Q1 2013 OGE Energy’s earnings conference call. My name is Kathy and I will be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of the conference. (Operator Instructions). As a reminder, this call is being recorded for replay purposes. I would like to turn the call over to Todd Tidwell, Director of Investor Relations. Please proceed, sir.

Thank you. Good morning, everyone, and welcome to OGE Energy’s first quarter 2013 earnings call. I’m Todd Tidwell, Director of Investor Relations and with me today, I have 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 would 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 would 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 thank you for your continued interest in the company and joining us this morning. Before discussing the quarter’s results, I want to discuss our mid-stream joint venture with CenterPoint that closed yesterday. We’re very pleased to be able to close in less than 50 days from announcement, somewhat ahead of plan, but we are anxious to move ahead to being to capitalize on the opportunities identified. The integration planning teams have been meeting for several weeks and while the work will continue on, the focus will be expanded to the implementation of the integration and filing the S1 for initial public offering. So you can appreciate, with the transaction closed, much can be accomplished with our combined resources now being able to talk about serving customers and pursuing commercial opportunities in the marketplace. We also understand leadership is critical. Our process to select the CEO and CFO of the joint venture is well underway with external and internal candidates involved in the search. Work is also progressing on filling other key positions. We are sensitive to the balance between conducting a thorough process to get the best candidates in place and moving expeditiously to have leadership in place. In addition, while the partnership’s leadership team is being assembled, Greg Harboard and Keith Mitchell are working closely together as co-leaders of the partnership, each continuing to have authority over former CenterPoint Energy and Enogex’s mid-stream operations respectfully. On our second quarter call, we plan to provide detailed guidance of new partnership. With the closing now behind us, we can work with CenterPoint to pencil out the financials associated with our business plans. As you know, prior to HSR approval, our discussions are limited to integration planning as opposed to determining additional commercial opportunities with…

Thank you, Pete, and good morning. For the first quarter, we reported net income of 23 million, or $0.23 per share as compared to net income of 37 million or $0.38 per share in 2012. The contribution by business unit on a comparative basis is listed on the slide. Although quarter over quarter results were lower, both businesses are on plan for 2013 and we’ll discuss guidance later in the presentation. At OG&E, net income for the quarter was 13 million, or $0.13 per share as compared to net income of 12 million or $0.13 per share in 2012. First quarter gross margin came in stronger as we saw an increase of 11 million or 5%. I’ll discuss gross margin in greater detail on the next slide. But first, I want to discuss some of the other key drivers. We are focused on controlling our O&M costs, which were lower for the quarter and as we’ve mentioned before, we are projecting O&M to be relatively flat compared to 2012 and we’re on that plan. Depreciation and property taxes were higher for the quarter as a result of additional assets being placed in the service throughout 2012 and the first quarter of this year. Net other income declined primarily due to revenues associated with the guarantee flat bill program as a result of more heating degree days compared to normal. Income tax expense was 12 million in the first quarter, an increase of approximately 9 million due to the one-time reserve associated with the Oklahoma investment tax credit we told you about on the last call as well as higher pre-tax net income this quarter. Now turning to the utility, margins were up for the first quarter of 2013. There are three primary drivers for the increase in gross margin. First…

(Operator instructions). Your first question is from the line of Brian Russo from Ladenburg. Please go ahead.

Hi, good morning. When can we expect the S1 to be filed?

Brian, I think the simple answer is as soon as we can. We’re – we want to get that done as soon as possible. I think there’s a handful of things we have to get done before that and you know, as you know, we’re somewhat limited, prior to closing, what we’re allowed to do. Both entities, we’re still competitors so we weren’t really able to begin working together and so the first thing we’re going to be doing now is really kicking off these integration teams. We’ve done some high-level integration work but now they’re going to dig in. We also have to create audited financial statements for this entity. As Pete mentioned about the management teams, we’ll put the management team together and you know, lay out the forecast and we’re going to do this as quickly as possible, but there’s still some work to be done.

Understood. And could you just remind us of your gathering and processing volume growth outlook in ’13 and ’14?

Yes, we – our guidance was 10 to 15% this year. Our – can you hear me, Brian?

Yes.

Okay. Our guidance was 10 to 15% this year and 5 to 10% next year.

Okay, so it looks like you’re tracking at the high end of that?

We’re good with the guidance.

Okay. Are you able to quantify the margin impact from the key pole contract that was converted to fixed fee in the first quarter?

Sure. It was about $8 million of margin.

Okay, great. And is the 300 million of incremental transmission spend, is that included in the projected capital expenditures slide?

It is in our CapEx table in the Q and the K, but it really – we don’t begin investing those dollars until ’16, ’17.

Okay. And correct me if I’m wrong, but it looks like the Enogex CapEx has increased quite meaningfully in ’14 and ’15. Can you just comment on that?

I don’t believe it has, Brian, from what we put out in the K.

Okay. That’s all I have. Thank you.

Okay, thanks, Brian.

Thank you. The next question comes from Sarah Atkins from Wells Fargo. Please go ahead. Sarah Atkins – Wells Fargo: Hey, good morning, everyone.

Hey, good morning, Sarah. Sarah Atkins – Wells Fargo: Can you talk about the cash benefits to OGE of the new structure and kind of potential dividend strategy for OGE as well as the ability to fund Regional Haze CapEx?

Okay, so Sarah, a couple things happened at closing. First off, we were probably, the day before closing, as all of the accounts settled, we did receive kind of a near-term cash benefit as our short-term borrowing was probably, in round numbers, about 730 million. Today, it’s about 600. Going forward, obviously in an MLP structure, you’ll have distributable cash coming out of the business, so Enogex will be – or this new venture, I shouldn’t say Enogex, but this new venture will be a source of cash where historically it’s been a use of cash. So we’ll have a lot more cash flow coming into business. A lot of that will be driven on the forecasts of the new entity as well as we finalized the accounting treatment of that and determined that the entity, whether they’ll be any step-up in basis and things like that. But we do expect there’ll be significant cash flow coming out of the business and if we didn’t go down the path coming out of regional haze, we had to invest in scrubbers or something like that, that certainly would be a source of cash to mitigate or eliminate any equity you need for the utility. And as far as the dividend, I’ll let Pete tackle that one.

Yes, Sarah, from a dividend standpoint, you know, one of our goals associated with this transaction, as Sean talked about, would be for it to be cash flow accretive to OGE Energy relative to our standalone case and we believe that will, in fact, be the case. As you know, we continue to increase, and we have in past years, our dividend growth rate. We have our longer-term goals of, you know 60% of earnings on our dividend payout. But you know, as Sean also said, we now are able to work very closely with – as we are now closed, and get our detailed financial forecasts. We would like to get some more clarity on environmental, but I hope you understand and see that we are, of course, dedicated to deploying our capital, you know, where we get a good return for shareholders or if not, you know give it to shareholders. So we’re going to continue on with that commitment. Sarah Atkins – Wells Fargo: Great, that’s helpful. And then, what’s your transmission? It sounds like you’re looking at opportunities outside of the OG&E footprint. Is this the case and should we expect the formation of a separate TransCo or you know, to pursue these opportunities?

You know, so yes, I talked about outside of footprint, but that’s correct. You know, we’ve – you can tell from our $1.5 billion of transmission projects, we’ve got a lot of experience in the Southwest power pool working with the Southwest power pool and building in this region. And so we have – we’ve been studying our opportunities we may have to – under the competitive rules, which are still being developed to compete for additional projects and we continue to study that and of course, you know, we don’t think all of the valuation of the [inaudible] we’ve been on price, but of course, we’ve got to look at our ability to manage large-scale projects, to do them efficiently, build them to perhaps different standards than we have for our own system, cost of capital is also important in that. And so, as we evaluate – we are talking steps internally for what we thing internal capabilities would be required to compete but again, depending on how the ultimate rules come out, we would finalize the strategy. I think it’s premature for us to say that we’d be creating any separate Transco or entering into any partnerships at this time, but we’re giving it a hard look. Sarah Atkins – Wells Fargo: Great. And then last question, I’m not sure I heard this correctly, did you say that you see a need for additional processing capacity at the end of ’14?

Yes. As we look at our volume growth and continue drilling, we try and look ahead and plan when we might need additional capacity and right now that would look like towards the end of ’14 where we might need to have additional capacity over and above our current build out. Sarah Atkins – Wells Fargo: Okay, and that’s not embedded in the current CapEx forecast?

That’s correct, it’s not. Sarah Atkins – Wells Fargo: Perfect. Thanks so much.

The next question comes from the line of Anthony Crowdell from Jefferies. Please proceed. Anthony Crowdell – Jefferies: Hey, good morning, guys. A couple questions and one you’re probably not going to like. The easy one is, just what’s your trailing 12-month ROE at the utility. The second question was just, and I know you guys, as soon as possible has been the answer on the S1, but is that expected to be like a summer event or it should we think of that as the fall? Just try to put some months around that. And last, it seems – just a follow up on the last question, it seems that the growth in your service territory with a new plan share added, you basically, I don’t want to say consuming but you basically need another processing plant, it looks like, each year. Is that accurate?

So Anthony, I’ll try to take these in order here. On the first one, the trailing 12 months ROE, in Oklahoma, we’re earning close to our allowed return of 10.2. As Pete mentioned, in Arkansas we’re probably earning closer to 6 to 7% there. And obviously, at the FERC transmission on the formula rate, you’re earning your allowed return there of 11.1. The second question, as far as putting a month or some specificity to the S1, we really can’t, Anthony. We’re going to work as quickly as we can because our ultimate goal is to IPO this as soon as we can. I mean, that’s our goal and we’re all very much aligned around that objective. What we have heard from various institutions that, you know, if you were going to try to get an IPO out this year, you really need to file the S1 by September 1st. But that’s not a commitment of when we’re going to be able to do this. We’re going to work as quickly as we can. As far as the processing capacity, I’ll turn that over to Keith.

Yeah, as we mentioned earlier and if you look at what we have been in placing into service, it’s been about a plant a year. You know, we are in some very good basis with good acreage positions with some of the biggest players in the area and some of the most active drillers. But that’s just something we have to continue to look at with these dedications and the rigs that they’re deploying and whether or not that’s going to continue. And you know, it kind of goes – it depends on producers, some – we’ve seen some increases in some areas and some that’s shifted around but right now that is our projection. Anthony Crowdell – Jefferies: Great. And Sean, if I could just follow up, when you file an S1, is there, I guess, a period of time where I guess does the SEC approve it? What happens once you’ve filed that?

You’re exactly right. You file it, you will get comments and you may have a couple turns of that. Anthony Crowdell – Jefferies: And those turns, a government agency could take as long or as short as possible?

True, that is correct. Anthony Crowdell – Jefferies: Got it. Thanks a lot for the help, guys.

Thank you. The next question comes from the line of Brian Russo from Ladenburg. Please go ahead.

Yeah, hi. Thanks for the follow up. I was just curious, the – it looks like you’ve purchased NGLs under your key pole agreements and I was just curious if you could elaborate on that.

Those are – when we have fixed free agreements as well, we will, a lot of times, monetize those NGLs and so we’re actually buying them from the producer and reselling them. That’s kind of our purchase for resale. You know, on the key pole, those are our equity gallons as we recover them. So we obviously would sell those as well.

Okay. Got it. Thank you.

Thank you. Sirs, you have no questions at the moment. (Operator Instructions). Thank you. I would now like to turn the call over to Pete Delaney for closing remarks.