Sempra (SRE) 5 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Jeff Martin	Chairman and CEO
Nelly Molina	Vice President of Investor Relations
Trevor Mihalik	Executive Vice President and CFO
Justin Bird	Chief Executive Officer of Sempra LNG
Allen Nye	Chief Executive Officer of Oncor
Kevin Sagara	Group President
Peter Wall	Senior Vice President, Controller and Chief Accounting Officer
Shar Pourreza	Guggenheim Partners
Jeremy Tonet	JPMorgan
Durgesh Chopra	Evercore ISI
Michael Lapides	Goldman Sachs
Sangeeta	KeyBanc Capital Markets
James Thalacker	BMO Capital Markets
Paul Zimbardo	Bank of America

Call transcript

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Operator

Good day and welcome to the Sempra Second Quarter Earnings Call. Today's conference is being recorded. And at this time, I'd like to turn the conference over to Nelly Molina. Please go ahead.

Nelly Molina

Good morning, everyone. Second Earnings our for to welcome Quarter call XXXX Sempra. And and webcast under presentation of live this the this section. website A our teleconference live on is Investors available

Group of us Officer. and of Chairman, Executive Sempra and Executive Chief Controller Financial Officer, President, Vice Nye, have line Officer, Jeff Executive Chief today, Executive Mihalik, LNG, Oncor, and Chief the team, including and Allen Senior with several On Kevin Wall, Officer Officer members Vice President, our Trevor Justin management Martin, Chief Sagara, we Peter of Chief Bird, President, Accounting

forward-looking Before those remind of discussing the I'd projected the that make may recent of that meaning results any in statement actual forward-looking our are Litigation Securities we'll results with factors Reform Act most the starting, be like to Private differ Company's cause XXXX. filed SEC. The to XX-Q today. the from statements could materially within materially XX-K Actual and discussed we everyone in differ

the over any to in hand the in presentation statements me update of assume contained to Slide obligation of any certain for are diluted the measures. not these be accompany of call shown that X, speak Jeff. we'll today as in forward-looking to to basis, recompilation to Please and over earnings only that, and on let or this discussing With does our the presentation slides per I'd statements All financial Xth call to the also a please, measures. this and Company XXXX, of refer presentation that share GAAP like mention a non-GAAP future. revise amounts the forward-looking turn

Jeff Martin

I and attended Investor in enjoyed month start person. getting Nelly. on and those thanking road this June, mention the seeing back team that our I you many want past today past by Thank also and this you, really virtual the Day to that of

a our narrowed and returns, business the and and competitive proposition, growing attractive sustainable Day, strong and investment at All value markets we've our growth, offering model, we in simplified improved Investor discussed consistent Capital of EPS a strategy including As with our visibility discipline. to dividend. Earnings goal attractive

and the at in it's as that steps financial guidance excited continues robust I'm on XXXX increasing now result, today's operating all I'm its Oncor Shifting across both a and to taken XXXX Oncor territory. and platforms. seeing see to And highlighted quarter, the focus Nye businesses. service with model about growth Day, investments we've we're the testament increased year, its adjusted our our so all presentation. progress Additionally, further a affirmative across Trevor earnings in the which growth far pleased our range I'm top-tier strong I this Capital simplify made Allen later capital business of detail Investor the guidance broad EPS And think our to affirming the we've infrastructure reporting support EPS proud is We're describes our results. to and plan, range. our

over to call to and to updates. slide, Trevor financial the where turn I'll both please Now, provide next turn the business

Trevor Mihalik

public to have Plan received we Wildfire safety. Jeff. at CPUC XXXX this the developments commitment approval SDG&E our had Thanks, fire begin, we past advance in building hardening quarter. To operating several Mitigation At July, our long-standing Utilities' on for companies positive Update, and

plan, the its biomethane billion which approximately In to Oncor de-carbonization core to goal of at to increased in projects projected SoCalGas RNG five-year goals. provided to visibility to provide has help the their renewable state support natural two to reach Texas, began over $XX by XX% XXXX additional XXXX has flowing their customers gas period. XXXX Capital

in fastest-growing at we With exchange we Oncor's the XXXX. Quarter, may approval one with interest transaction receive issuing while close to turn strong of Additionally, to interest. At optimistic advancing its bit for offer Oncor We're economic states now plan to shares, for also X, to offer Competition remaining and a Investor market filing and capital Mexican tender IEnova's more KKR. analysis have the case macro ownership been X.X% to non-controlling to of a a end And around interest. launch completed June its the the Day, and of regulatory the for please I details XX.X% the cash Sempra that, sale continues rate the plan the expect completing slide the around to Third the the PUCT And update. deadline next in resulting Infrastructure fundamentals. we extend approval. to subject did operate Commission Sempra Oncor Partners Infrastructure,

morning, Second Oncor's Capital service on in relocations, generation with Oncor expansions, five-year consistent million are Quarter XXXX to last XXXX interconnection capital plan and from its that the a dollar strong plan by outlined period increasing release $XX at and XXXX earnings operations is X to premise tracking primarily requests, that CPUC growth income of robust $X.XX $XXX year-to-date slide. variance businesses or values earnings two is of economic million which XXXX a $X.XX billion, million of exceed of $X.XX the approximately the XXXX Earlier increases compares dollars On years August or of two year-to-date This to tax As This XXXX of the capital hundred in supports are Second and XXXX to forecasting in to Investor billion, dollars, one per net higher XXX%. expense, share. XXXX development not the growth, earnings earnings is GAAP XXXX Quarter hundred tax basis, and million Cameron to to basis, by its adjusted million and slide benefits to Earnings of earnings re-measurement our of territory, This certain and memorandum to XXXX or Quarter share. share. $X.XX Other, a and example of or from electric Adjusted at Second Chilean California billion, LNG flow-through to this June subject compared XXXX four service ninety-eight XXXX billion decision compares $X.XX Second dividends $XX Phase Oncor tax new affected the expense XXXX million dollars April income due the due earnings GAAP GAAP next year, per XXXX $X.XX were was in $XX forecasted our forty-two $XXX were robust ninety-nine the XXXX share. primarily than share. the XXXX million $XX by the dollars result, next two XXXX. per can share. billion, regulatory resiliency. what system, million to share. next an due $XX or of $XXX earnings of related and Capital or the of and turn the million the SDG&E Please Peruvian a XX% one respectively. in dollars year-to-date higher to this taxes $XXX lower be differences will announcing prior at turn results. billion, Quarter liability were per million, of LNG. $X.XX slide. review and billion in $XX values $X or Second of $XX seen This and in or losses good Quarter exceed Parents from to Oncor in XXXX interest compares was Earnings in nearly account, capital incorporated deferred I adjusted reported million, four plan. the plan new to approximately to hundred million, to per equity Day to A hundred full of achieving income income compares XXXX share. This items investments by the year-to-date resulted our benefit at lower $XXX increase On projected million pace $X lower Sempra $X.XX billion earnings GAAP The JV, by Please Please a adjusted nine SoCalGas, following offset in at seen million, of per XXXX a we preferred grid per throughout and its sale Allen from in per XXXX financial items: and same to where turn earnings key Furthermore, more utilities the over adjusted million $XXX to largely commercial lower the plan. one and

year. the prepared are are remainder to And financial We concludes performance and this execute throughout that, focused this with and remarks. pleased continuing the of strong our quarter with on our operational

questions. and Now, we your I will stop, take can

Operator

you. a question. to instructions]. We'll of from just have a allow Thank to go pause Pourreza question they We'll ahead. Please the Guggenheim you. [Operator Shar now first Thank take Partners. for moment signal everyone

Shar Pourreza

Hi, everyone.

Jeff Martin

morning, Good Shar.

Shar Pourreza

for could into guidance. other mean, about is I recovery. you Trevor obviously a visibility and 'XX? maybe Jeff, There -- you to 'XX, moving in Capital, the in move the assumptions cost could or actually changes anything or else talk range? that some coming talk includes little into Capex maybe contemporaneous incremental just pieces the bit reiterated i.e. you the range maybe Can you Texas, more which about you of

Jeff Martin

half that be that for by And adjusted results pull-through fairly we're And think a of that seeing strength growth be of very be an Shar to Right I indicating outcome. extraordinary from of first to three bullish guidance does start is XXXX able to first I increased would some certainly cause there us our EPS platforms. function against $X.XX in front our pleased all the think with it's think half, we I produce the that into of we're will XXXX. that

the there's why not need which here execute Infrastructure, COO. in Don prepared Sempra and a really well. commitment General could opportunities of Allen CFO, I back they Greer, be California transaction and Henry, forecasted more billion in to Nye obviously the their with that that portfolio pleased. with is What In management I are Counsel, XXXX, quality perform it. highlights launched internally increased Jim We would on Texas Clevenger, XXXX about there think to time in off the be We team. they a socks not that and program. CIS the were November of March $X.X and were of program. was pleased board did is today, They knocking for of capital opportunities. had this we capital Oncor. call Matt our that the the great the who regulator, us of a with their We we

any or can occur did probably would limit type of of to is triggering point expect and expect little Capital. at We is guidance More we did likely be to in to more safety. we cents. and important the we SoCalGas operations of there your and Sagara for the next only think that SDG&E Now, the mention, Shar, of conference. assumptions cost prioritizing indicated is to it can did what we year, XXXX, that at his to that you that which confines a Kevin Analyst limited that most to what those strength a And team Sempra, XX include looks trigger about talked we thinks within they now, not at X assumptions in forward raise to roughly SDG&E impact bit business, but which on that our

causes performance, view still But year some we that our taking cost will for $X.XX year. in something guidance to at to just not this mechanism do XXXX, we would at if our well around back be is by We're $X.XX of of the capital for expect XXXX guidance largely there. I against performance we XXXX. in of because the least for think our might of increased into revise to be optimism increased I SDG&E obviously first it's investors, yet, an continue to pull-through summarize So prepared not managed we're its provided great of even out this impact. what of disappointed saying the front half

Shar Pourreza

Port you is MOU Thank s Polish to the if can better Oil? Cameron way of path on as to clean then, clear. are follow-up, have some more -- back Port to pretty off-take there you you that, you characterize you. Arthur Port subscribed between than economics existing set Cameron competitive X just And is Day. Analyst the Arthur. Jeff. And message then, at from mean, Arthur? a is a I to the being And anticipate contracts close potentially the that now get Thank fully Do that Since Train for site? think over and interest make I LNG Perfect, X been on moved

Jeff Martin

Sure.

I'll your now on Let making take come question. me view, delivered talked right little little Phase about to Investor a X how ECA broader and that at take budget. We is is on Day back bit back our on right a time and and a focus step sure

second environment. We continuing have and well. about meet that managing quite And period we in that environment half that's down planning coming of the deadline. proceeding XXXX, the the work into our to COVID there We've and optimistic remain been

the outlined And of that have high Port Secondly, really Justin Arthur; Shar, and superior on you I X, is have questions Train Projects. on to is at mentioned now those it's Mitsubishi, project site. to going be advantageous and been into online Cameron with the meets its of the at think last to that will Port do a And for the project And conversations their Greenfield of reflection Greenfield X increasing closely months Mitsui, And which one be to you long-term have makes key that largely of remarkably recent needs. I trains and think a we've because confidence relationship, And the more a team But to the you for priority at returns, ability regarding that always to being now, and you bringing that debottleneck Projects continues number to same bullish indicating. that, cost well-situated Polish think continue time working top and our able at the X, we're Brownfield we really, like it to Gas Projects a profile. project it's a right the can of which it emissions the ground throughout more & right we where to at the superior much scale, advantage. that is about to are reduce that's really them the economic. a Total, do some Company, consistent, competitive, expect the fall. over steps team. to economics continuing Expansion. [Indiscernible] Oil The to is do in strength phases make view Cameron level, adds taking XX customer X, X We're We more announcement multiple generally more deliver have Arthur, their

in well. good I I going ECA think is certainly that relationship think is stead. X

to be Expansion, continue Cameron Arthur quite a done longer-term more bullish have and Port work We probably to on is there. opportunity, but we be

Shar Pourreza

so Thanks clear. Jeff. Congrats. very That's Perfect. much,

Jeff Martin

Thanks. Thanks, Shar.

Operator

take question We'll Jeremy Tonet of ahead. now next go the from JPMorgan. Please

Jeff Martin

Jeremy. morning, Good

Jeremy Tonet

Hi. here. Thanks Good having for me morning.

start Capital, Analyst limitations And Texas? then think there to just more to talk us or you of might some XQ? given until considerations if in the add raising even versus went to timing Capex bit you down opportunities waiting could able help the through Oncor to all want choice be the that Just at about might a Day into the now off be

Jeff Martin

baseload try Allen, a you take think of and them, one, some I about generation, and to it provide let investments. growth number really there's couple capital number but and points. I'll to adjustments that with pass just T&D Number Jeremy, interconnection the questions color, renewables me a start and talking [Indiscernible] transmission focused strong active some program then more let primarily to we're series of and there Well, me on premise requests, X, highlight X, to are the new growth, the around,

press X.XX the last We've about needs taken does next very provides meeting got really I has in the to this for as needs meet that opportunity fall release opportunity not of the to the expectation into points, transparently to million would -- detail Board growth toward opportunity We'll to think timing here a expectation really $XXX to your Capital our also maybe comment. Allen's Texas. reevaluate back and -- across with little seen bullish our week. morning, if We approval one what more not a with the add approach of that earlier years. the of our the customers talk in the system about only latest you're seeing view and impact they've XXXX. October year's the but about revising planning I billion. some good these cycle governance your your opportunity. board, over longer-term, that the Allen you November. forward the review range out plan put growth terms Board feel covered of of our possible the that quite raised continued of was I I board the bit opportunity know -- one had number more X of In next had questions needs incremental in don't the thought final street. We've go was detail business a around with as to of but view that we providing last the some the We've team a updating But is plan, the Oncor week. in mind, Allen, bringing the to

Allen Nye

Jeremy. Yeah, and thanks, Jeff, thanks,

a me large covered bit With little exactly but now, said. regards it's of a give I you to what think Jeff Jeff it why let to color. degree, just

to our expectations I and resources why? ahead make at year. get the to Day order in we to the sure know Investor next mentioned equipment our need XXXX July You go execute of the that board to in to for the have had we game to a actually increase

we Jeff XX did what was to X.X, said to previously that, as we X.X so from said, we And raised X.X. up

know that this then all, told from some to ahead, going X.X, fact this we that what all we you the talking we've upped given this with is opportunities took to growth are previously And increasing Jeff X.X. to board. which discuss for so 'XX some and XXXX you Thanks seeing also about and we had opportunity about. the 'XX, we're year to of just let and talking had that go We our our opportunity seeing is

are a than about And when Trevor we're time Company above Transmission development, on premise considering Economic up this year, higher in we growth 's the our year Trevor's -- having is, because West what are always point, growth. XX% earlier, discussions basically location-specific been with talking the at so And seeing. potential the the generation we're which project of development lot The quarter above to through ever levels ramifications, in ESG we're builders we retail both thing then is seeing Both of of growth -- people electrification had we're spending is year-over-year. approximately talk last last about pace talked year. we've quarters end-of-year continues is Capex last about and which at. quarters emissions. Texas to quarters. organic Jeff's year. here what Oncor be really largest And it And trend for West last similar and rate The another Texas Requests on story I on were and corresponding points last of interconnection remarks earlier we're this side information think year quarters year economic history. two look the strong. the fields, are latest of

in high. It our megawatts but versus Culberson hit Loop peak XXX an we're system have all-time uptick another transmission XXX So That's last July. on getting we year. some there,

Texas Far the zone in weather West June. in peak Another

X-year And our time, we may X to with our board. be our to Investor told can with documents available. announce provide the at our we're team when we investor available meeting, 'XX it have good with for growth now. billion and -- else, since we October after July. independent that. meetings of 'XX be shareholders, X.X now. about XX, incremental we've talked a then. we'll expectation Call, seeing Capex The all now as adjusted regards on we're that opportunity X-year years well, capital I where in our the XXX looking just of at seeing we're strong, right having. of management and investor something all the we'll Jeff It with X.X those information go And that range so expectations you And years. address right feel very the as XX we meeting those these thought and outer board to page good Jeff's since But do, we'll really with at to have To the Investor Day our what up, point have about leads may is all that now. So expectation and our review years going the we going discussions to calls we to last added to system, to something That plan. think outer we're to I of time over a you the years, talked. the X,XXX, our you plan And October, are, the to our see in get our going we're to our in with right And of is in have XX as about always X.X directors, we we're we're that's are and on And outer number like of we said, previous remains see us our into which which to

We -- our new plans. sometimes, projects from incremental bucket into Capex that have

But we to to be fact any the they system. billion lot. over glad additional Capex our are that right that we've before. a on goes that it X. plan. and in And remain to, bucket in Capex invest expectation but opportunities thanks our around incremental we've questions, our to those answer comes incremental They I'd part discussed Sometimes, reflected significant, notwithstanding from significant raised opportunities have into outside that are that bucket, now, XX

Jeff Martin

of Board fall color, and remember something That's and that just benefit, to that in $X we had roughly in output more on for spend that roughly XXXX, now an mention five of doubling looking like Directors based a outlining back years, plan, almost made transaction like of regulatory on I end terms that we're And the underwrote a that Jeremy, I And your a of at March or Company, billion average very appreciate $X.XX of a so with the they our would over growth $X.X plan I the cost-effective team commitment team Allen we're the we as billion that on belief a billion pleased year way it average. XXXX Allen. most is the management a growth think ratepayers. in great And meet which Capex to could the a have looks of be that the for year. in the his state. and closed

Jeremy Tonet

just Got to very there. thorough helpful. it. if you that's for That if could the answer okay. here, was I Maybe RNG Thank pivot

see for versus then for customer on color maybe, carbon though has demand could RNG see customers electrification? that how want any support that do customers path see you you're trending California has could kind items over negative competing goal attributes, how time. RNG And some one And choosing or Just watching to see do XXXX? the policy provide even you other? the for or you been XX% if regulatory the you Do of

Jeff Martin

leader a trend. climate market a connecting a to solutions our to the Electrification -- if centers. as the meet load just that above to to all going our be certainly renewable opportunity big be a is way, in In in secular goals Allen to that expect long-term to I play we need as Texas, have grid going nation, we're Look, long-term on in We think strategy. described. we

the California, XXXX using natural we not we roughly done country. XX% something no natural renewable else made this across on one of would has gas deliver of in Here commitment all We did system, that the that delivered SoCalGas gas. a

You in release X may press last plants to the biomethane the so. We our have just systems. seen new week connected or

natural it's a a opportunity, basically our renewable to maritime across transportation it's network; or opportunity an So gas priority. opportunity, it's whether whether deliver a

Scott than set know, that to Group team in thought higher as about remain the a is goal. in hell President by business. to course. talk XX And a our gas exogenous goal doing on track X% and have at the came level in out that We an state for the terms of next the California so, at recent of And Commission has his year. maybe other times been has you of methane combusted Drew SoCalGas and the job how in environment transform the there doing this. a hit Kevin detriment could We are developments stakeholders report exciting Sagara I some which PUC view that ordinary the as of RNG. regarding being

Kevin Sagara

on PUC passed legislature levels recommending, level report Utilities. landfills. And staff essentially of Jeremy, Thank divert this for buttering organic think recently carbon really, -- a obligation the you, low the the waste -- for from you creating division that the amount for RPS SB-XXXX. next and saw And We PUC the the we've a to far as And goals. RNG I expect, Yeah, question. a meet staff so then energy fuel in this climate good that yeah, statutory ambitious issued based with California the California very demand an are run for help might state state's had to the great standard RNG through go to

load. to So when about the core equal you XXXX, to out this least to divert -- X.X% procure to of obligation about they're supposed is from landfills, look at from state's XX.X% the XX% up my biomethane wastes of To XXXX, goes to organic load. which that about supposed utilities of to core are procure

a does stack shortly. more would You hasn't asked yet but opportunity. be that are of demand, hopeful That about work creating it good been we active on,

Jeff Martin

that Company. glad asked team priority to a our you are SoCalGas. we question think to because really I continue the why innovate the is Drew That's Scott I and at it And think

to leader We as some in a be made also have in you've to be seen RNG. leader Jeremy, hydrogen. opportunity a We've commitments,

Jeremy Tonet

present could If of given Capital on one here? themselves what's in slip Got the latest have up here, might this that just opportunities in I summer Super last your one helpful. quick the California, it. of that some come thinking adequacy some concerns resource

Jeff Martin

our Yes. to back This a T&D business model. and about is a go Company. We're talk opportunity great base

have privileged things electric away of commitment we've we're operator is likewise, less, that consume our on much growing so those to of of exposed of more or not our Portfolio And of and one California the So very moved because we either long-term issues. commitment spot sweet owner a and Texas being an lot has Mexico. from to building and generation, that decoupled like consumers bond don't renewable, or with whether we exception being that to exposure fossil

where needs opportunities, really where we've a capacity a in we Capital could take demand efficiency, additions. and been their long-duration particular they're a Diego unique to continued always to more generation, think announcement in terms XX% the looking find ahead to resource subject storage new California And of Electric, In place energy San But get highest taken are. new for additions term, take the sure is think the Jeremy, importing of in a new long-duration of demand storage. -- in our opportunity. there times terms to of through from great time, the at the capacity XX.X and the be in got has we're and some challenges, a X the certainly traditionally years of more and state's will it there we state needs I and these of during near what of gigawatts makes Over ways of jurisdictions demand of being about us power it capability is X is And needs Gas supporting developed that opportunity making aggressive state adequacy. what's outside needs other of those about one period long of California's year, steps,

Jeremy Tonet

it. much. there. Thank sense. leave Makes I'll you it Got very

Jeff Martin

the you Appreciate call. joining

Operator

go at take Durgesh Chopra the We'll Evercore next question now from ISI. Please ahead.

Jeff Martin

Good morning.

Durgesh Chopra

Hey, taking question. you morning, Jeff. I good -- Thank for my have a

Jeff Martin

No worries.

Durgesh Chopra

I have clarification then question. a a and follow-up

the XX.X? billion, -- XX.X Oncor 'XX to about that at -- Just know gun, sits it way million to Is as incremental. think billion to 'XX the now, it so I closer XX.X still right you've it Capex is or is it with but at about XXX talked just the

Jeff Martin

think about way That's to the right it.

Durgesh Chopra

it. Got

thinking own that SIP to on for here. balance XXX% just SIP? to then have Mexico the of get X% you you or a a the transaction you Do KKR? tender have like what in -- getting take Okay. just currently like close a with of close the does that Mexico. a the cash needs offer Mexico it to to -- Is so Perfect. procedural delay for And more the to to don't owning -- before box completing I'm the XXX% SIP that you about is get

Jeff Martin

take Yeah, think business I X, private. the different as two platform IEnova is long-term ideas our goal here. it disjunctive to would about Number

public two happen public If As and you've will still the X.X%, or up week investors. which there we over additional set pri cash next tender floated -- up by -- there's a about float is view And delisting indicated, that the with a remaining a that look taking that following clean mechanism. out shares, which we'll to business. process, is toward separate any to to we're is process that

pacing we in And the we're for pacing Competition now the is pacing the of really not regulatory think position around close right that's closing number think will transaction, they closing, and approvals, QX. CPs end the related once of a item item there's terms be is forecasting we for Mexico. Commission closing. finished In which analysis, the to item of a to in is small we their The

Durgesh Chopra

super guys. Thank you, That's it. helpful. Got

Jeff Martin

joining for lot a Thanks us.

Operator

question go take We'll now next Sachs. Goldman from Please Michael Lapides the ahead. at

Michael Lapides

my Hey, guys. Thank taking question. you for

Just curious.

Jeff Martin

Hi, Mike.

Michael Lapides

already X this up it's Commodity How for means trains, ton. any what inputs the cost are lump-sum contracts? the Jeff. about versus around don't per economics new from the LNG American coming of Hi, are sources the of construction North what for means world? and really therefore, LNG have Cameron other that FID or else, a whether somewhere LNG thinking And haven't gone you that ton

Jeff Martin

Right.

look, So, think I asking a great question. you're

cost all being input think businesses to I impacted. are infrastructure

wrapped strategy We You're us. seeing a costs it focus about an have contract. other in commodity would a also but contract you the for We near-term EPC at obviously well. be I would feel X good probably that ECA Phase ECA, as we've multi-pronged tell here. got at

future issue, right At input does for And continued it its back goes who you it this In Michael, But process pressures. seeing sure which this and to people of be is, Greenfield around go development, by number. to through to terms I of observing used that world are you're get of our part make see we industry way pre-feed think costs feed early U.S. take should that massive that LNG most projects, to Projects the whole a most the the cost a Projects. dominant pressure same same in that's But is seeing the share. a bit in higher continue lot Brownfield to little on mind fair subject to And decade. fuel the of in those have the build-out that time pressures the prices will world construction, dichotomy. occur going per-unit that cost to keep to in tend think a put the only stock costs This are other to around all will and projects the expect going still next you're world. LNG higher are

Michael Lapides

you, Hey, Thank one it. Much appreciated. Allen. Got for Jeff.

on to out budget, latest And you with think the case? lag? Capex follow-on what What's rate I curious. being Just regulatory a for means how guess able push do that higher the about the

Allen Nye

to Public bet XX yes. received our by year. Utility We Yeah, rate move filing to answer is on July you of deadline approval Commission case Michael. XX/XX/XXXX the next The

off on So and we're this calendar year, the we're for for clock the XX/XX/XXXX.

additional to regard right? investment; was is lag lag, associated with that question this Second and with

Michael Lapides

could those Capex, that happens as historical-looking trackers as well capture nature does lag? I do of the you of could the what much distribution the regulatory income statement if to -- and about -- -- just trackers, raise forward that that. just for But transmission drive of other Yeah, also know parts versus curious you

Allen Nye

way. the transmission answer everything X-year about months, to this decreases cost decreased XX -- the that approximately. talked X about trackers XX% the plan approximately we side, trackers me now, tracker lag we those of for have on the key tracker Let in lag as the -- interim And eligible. this is plan,

tracker, cost while distribution and the is side XX While the it's distribution efficient the good, on as about is lag not months. quite

we've XX% that I've this investment described. generally So net about of just the that's over talked five, that about a associated periods morning, was time these XX consistent with with billion lag everything two of

Michael Lapides

Got it. Allen. Thank you, Much appreciated.

Allen Nye

Thank you. sir. Yes,

Jeff Martin

volume growth, the which just lag also they I can mention that offset of And would Texas in in for some are following experiencing the audiences the that regulatory model.

Operator

KeyBanc We'll Karp Please now take next question at Sophie the Capital ahead. go Markets. from

Sangeeta

you Sangeeta Thank taking for my It's question. for Hi. Sophie. actually

Jeff Martin

What's question? the

Trevor Mihalik

Sophie. [Indiscernible] for She's

Sangeeta

increase do front-end at Should follow-ups in any the And recent point the then, Capex. Texas as Just upside see build is, of or from on a you in follow-up, Capex any Capex? being Texas inflation that? couple think of legislation your a factor question the the we my the as does into

Jeff Martin

credit the competitive -- that to terms conversations moved of legislature the reasons X the the over because about beyond In and it's try ahead as other pass This So in is the and the of their one those But and are they've in his do proactive But with Allen related how for the of pending being hard for and both soft maybe think Allen, forward. credit Allen, onto to of for to I our of are thinking in about any costs the way meet a question Jim could lap in think XXXX. board how Capex forward been secure and Sophie that they looking years. you first would at builds what part was deserve you, the various planning to needs growth about needs might particularly I the pressures is there to the question. recast meeting And access we're it talk XXXX and words, don't to you continuing think costs the influence these it and the resources had and timing answer and to I'll Greer, the lot about need deserve that, bills. advance. is a to go legislative team, meet inflationary those state. needs some well they materials for equipment lot of But

Allen Nye

the implemented. session. and to number that, Public how thanks, filed over PUC going the on Governor bills the XX to in regular Yes, which is Commission to There's And was passed about basically regards this going to ERCOT. I on of now And set think a going Rulemakings to there's to that have Utility large be that's at then things special with shifted Jeff. over There's there agree legislation the by X has right out here. now been the has in inflation. been the answer presently are degree, legislation, signed to session, and with been what

the include limits session, by Special what the call addressed I'll the that charge way. the -- in be not it legislature. call So in can topics did issues and address is governor this the electric and rather the

bills So charge believe monitoring that with what's being don't anticipate the with the industry, anywhere happening. don't or going we're going legislature electric which to call we but changed, on without relate the these they're we the

there it's for the we But do going more a rulemakings, PUC to We'll of early of Investor to rulemakings is things participants, are some see, then of ERCOT PUC that. and is bills, what's have agencies with the of are those think where now. extent bunch incremental issues, lot this, the are on. really that and industry I out our come during rulemakings. in too Capex there's there between them like the talked on to out right activities focus to anything would a call, Our to just have weatherization some going coordination I of plan They general beginning. to about what costs quite the at a have comes predict, that, few be and the

Uri, we'll related was test the that thing bill that not investor get wait was again, it my potentially we to more storm benefit see winter out to all there Thanks. to ERCOT, projects, other how and we'll answer. another economics know I projects transmission before through That's The but approval at in the think an mentioned potential sure. the have And us to for added but to shakes ERCOT. allow call, has that economic process that

Jeff Martin

And answer questions. that just sure we make you? to Did Sangeeta, I want both for your answered of

Sangeeta

question. add share follow-up, I different can a Yes, a Yes. I if just

regulatory you versus otherwise the that of XXXX Texas of the XXXX Puts looks that would year, know guidance you of the we to the end high your is GRC characterize Takes pushed that and kind calendar the Now low-end? could to end the and through light their lead how

Jeff Martin

would I assumed Well, case numbers provided movement Texas at the of couple some of we made post our the of just Investor our comments. planning comments $X.XX was could more months first the to that I not that in be strength rate was be the make EPS. a financial One with earlier able performance I on to of Adjusted in this the call pleased X Day.

of the really I of some for Sangeeta, I And cost And one mentioned second considerations I into about that we half expect, XXXX. think talked offsetting was earlier. of do this the year. bodes pull-through the well capital

Sangeeta

Right.

Okay. That answers my questions. Thanks so much.

Jeff Martin

Wonderful. for Thank us. joining you

Operator

next Thalacker We'll question now go ahead. from James at Capital Please, the BMO take Markets.

Jeff Martin

be on Good mute. you may morning. James,

James Thalacker

guys. morning, the Good you for call. taking Thank

Jeff Martin

Good morning.

James Thalacker

risk, smaller Texas, a structures might been for And before This have question capital be T&D but the have not reflected horse, the Allen. the this. viewed cart in traditionally, I'm as companies putting a and

hardening? coming any we've the potentially been thinking system the one Over discussion now Has risk, equity and the there a years, with hurricane and new the area impact in. of widespread of way as to we've up the last about maybe beef couple in the PUCT credit layer increased got obviously more of seen anticipation

Jeff Martin

or trying X investments are stranded to exposed a cost exposed unique years last other that just And have of I'll and as generation. we is, consumer which team T&D quick risk a distinguish a over really lot make or we I you, weather-exposed and turn spent relative to what in question. of volume comment, appreciate is it to Allen, one make the I think businesses comment management either to would with that a time benefit

about really of raise we've summer, visibility is is us which consistent financial think you through operated think think All a you unique Texas, last done that the our Uri, exceed referenced. in the strength think pandemic our we guidance to California and you that how model guidance. we gives having as about This happened and the blackouts you performance. and Storm T&D in about here So California, in

deserves your we with is that about ahead really T&D we're point think of to make So the want layer. add the to additional a why some because I higher just value think and that around we in model Texas. very feel pursuing and it talk I and think Allen, equity much very go true it valuation, consistently you free business how the color about

Allen Nye

maybe sure. going something a a rate average. in case. of always layer look lower of Yes, June Jeff. We're putting now, right It's I at now. together about, little equity we've into national I we got agree. parts when Thanks, Things that is country. API the next are Look, than, time we're think probably our with But going even the on CenterPoint other year.

time Some figure can on, will of spend out a lot what we accomplish.

yeah. now, impact Thanks. see certainly all We things but the right we cart our bit of and like have June we by what won't next a the calls, that again a as working said little long, constituents accomplish, our demonstrated we'll until for long go and yeah, that, these the analysis, can support cases. seeing our got we -- of off. was -pull And on I've maybe thoughts year. in Uri, as the And times with rate case horse looking -- many this history,

James Thalacker

Okay. Thanks, Appreciate thoughts. Great. guys. the

Jeff Martin

James. Thanks,

Operator

question Bank We'll instruction] from America. take of go [Operator with Zimbardo now Please, Paul next the ahead.

Paul Zimbardo

time. for Hi. Good the taking morning. Thanks

Jeff Martin

morning. Good

Paul Zimbardo

thoughts talked Capex Oncor repurchases significant previously just for I all How and articulated? sheet the want increase to follow overall potential up targets the think the about. about on balance we you've share should that after you've that

Jeff Martin

I'll start with repurchases. share

summer million. last program to repurchase accelerated work recall, share $XXX about put Paul, where we an we If that did you

weighted that really to creates this owners, program also right billion. I we're think around for long whatever you, average for a was capital minus. best of cost a stewards supported we're way Board do. the about of time the pass $X what that's new going owners. the The plus our And authorization thought or we've of $XXX And is,

actively the we we this current opportunistically. an will we be have from our to in outstanding mentioned. a time-to-time, expect that and as it's something continue opportunistic and review I as as evaluate We something So opportunity past, we in we that have to authorization, use approach. It's

of you In terms sheet, debt in layer. think grown about of balance of ended you've in to how the the year made how some last terms you and comments we Trevor, equity terms FFO

Trevor Mihalik

you Paul, metrics. year we debt, XX% Yes, FFO as ended sure. to the feel that know, plus we around are good right we're on on Thanks, about and X% around or last and where Jeff. the minus tracking still

proceeds our right utilizing Quarter our value. about the balance to debt will says, equity Sempra the in Partners and the talked be now. we that again, XX% about as transaction the Infrastructure sub that at of And we're from layer, also will have the Second also most to we coming end be We at really opportunities continue shareholders. the And Jeff to repurchases, in pleased at other deploy more we to couldn't shareholder opportunities shore the share or effective organic and for sheet, be growth, around looking create way up opportunities that to

Paul Zimbardo

the or and -- seen billion you follow in concerns Are the potentially some Analyst plant? I of just West. question at on detailed to we've adequacy believe 's thinking the clean accelerate the Day. And seeing of about Some within those opportunities was X of investments increase Jeremy great. power you Okay, up resource any

Jeff Martin

XX.X has Infrastructure. at there new the opportunity primarily more storage, SDG&E, the opportunity there utility the opportunities in at business needed And in desperately gigawatt the unregulated the which battery Yeah. for is We couple Sempra resources. focus about referring of long-duration cyber to Obviously energy circled you're efficiency, was. on on is things. a talked Jeremy what 's speaking state. question, about an What investor On state to I was on are around big

leading team, which one power. that and recall of with P&L three Tonya Justin Bird is 's the You'll is clean separate

did So opportunities by the which way, we And preview do the projects. is storage at project, Investor border. have our of gigawatts on a development interesting very the three battery about we Day,

construction. megawatt that X all that recall XX has for redesignated years System a a the dispatch been transmission And as on systems cycle California also ago underutilized the border. a plant transmission place We've that's the that in Independent XXX have combined directly we and storage. You plant may got for We've plant battery opportunity targeted second got was Operator. into thermal

its wind So our be both battery its production. backed goal is from own adequacy to with resources with supported solar to and up Northern dispatch Mexico able and out of resource

great active opportunity to an are it. You we're pursue be a is point. making going That to

Paul Zimbardo

Okay. for Thank the time. again you

Jeff Martin

Thank you very much.

Operator

It appears the at remarks. to Jeff Martin, I'd conference to questions any this there no back for time. you are turn additional or question Mr. like further

Jeff Martin

of a comments couple quick here. Just

some it's of a we you to in vacation looking always runs we're to as busy of the As person the I forward Street know, in the road. people time Wolfe a back Steve the at look year being conference September. particularly Conference head into period, on forward summer but on great and Wall seeing

free feel to well and your some custom we're out Additionally, thank call. conferences and I Goldman to per and this virtual concludes as team hope Asia. do for that us going joining again of rest with would you to everyone as in This additional mention I some our Citi, a reach today's questions. NDRs with summer summer has IR great

Operator

for for you it call. That's Thank participation. today's your

disconnect. You may now

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