SRE - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to Sempra's First Quarter 2024 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn it over to Glen Donovan. Please go ahead.

Glen Donovan

Good morning, and welcome to Sempra's First Quarter 2024 Earnings Call. this under slide section. our of on are webcast website our Events live teleconference presentation and available The and Presentations

have President, Vice and our including of Nye, Peter and Chief Sedgwick, and several with team. Trevor President Group Executive Executive We Officer our today, Vice Mihalik, President, Officer; us Allen California; Executive Executive Vice management Vice Wall, Jeff and Infrastructure; Executive Oncor; Chief of President of team Chief and Chairman Financial Officer; Officer; President Karen Chief Martin, members Bird, Accounting Officer Justin Sempra Executive members Chief and Controller Senior of other management senior Sempra

Private results any forward-looking Before from differ remind discussing factors materially that starting, in statements be may those like cause Act projected make we to we'll everyone that to actual of XXXX. Litigation could differ in call Securities our discussed Reform of on materially a Actual within SEC. in be The shown today. to that I'd to the statement forward-looking the meaning XX-K are the the measures. Please filed share presentation financial measures. basis, reconciliation this our presentation XX-Q are and non-GAAP per recent common discussing accompany Earnings we'll diluted with for refer amounts the a company's most certain GAAP slides and results

Slide speak XXXX. presentation March We this to also forward-looking encourage statements and that, you Jeff. of update these quarter contained company call it's me XX-Q any I'd to X, revise also or any please XXXX, X, in in not XX, like to for to hand let ended future. review forward-looking our to assume the today, that important statements the the the that May and mention only over With does turn to note of obligation

Jeffery Martin

financial to strong sets thank the for you financial up us well XXXX. great It's our to pleased report and today. provide first us Glen, to year joining for and We're results. all quarter a you, Thank start performance

constraints, addition view to market continuing financial benefit manufacturing of the U.S. with our creation. We strong production performance, infrastructure energy job a industry to continues very to from economy be We're and with supporting at strength grow chain trends. seeing is supply that easing discussed the super pace, In steady the demand, cycle fundamentals growth our constructive. the continued experiencing energy backdrop previously current and well for believe are and strategy of to positioned a gains, of portfolio Sempra's macroeconomic

data our largest economy backdrop improving also energy cases, forefront all-time advantages: the that's in strong growth XX long-term the estimates U.S. California, In X.X% from reshoring transition, in state. Against competitive and affordability, in the bases electrification several are driving the rate also note, by to serving Texas and million one through demand addition X.X% intelligence support Sempra XXXX. infrastructure and country's offers Of the new we're fundamentals, of and we're is U.S. the with digital to decarbonization transportation, consumption its to safety, largest to at recently over of record investments centers And demand higher new XX raising decade the than particularly reliability. XXX manufacturing gigawatts demand and Growth electric by the in in gigawatts. of forecasted industry total the First, end with the ERCOT artificial of in the from tripling of while make expecting electrification consumers of that peak remarkable general

and in electricity a later the for recently and more and this wave to expansion, by midst speak that's global of which in to C&I resiliency at residential industrial, resilience jobs part, critical, will the security annum the even Infrastructure, economic grid. and presentation. And to grid energy diverse in Oncor's of demand seeing Allen growth, finally, today's we're is Texas, electricity demand tonnes safety million why increase per modernize creating investments over in the important. and and in demand greater requiring to XXXX. Turning significant filed expand becomes second of Sempra supporting system are timely LNG detail of both is XXX we're support expected plan developments With

the built-in reached excited for FID growth Our to attractive from expected opportunities dual-coast of while operating of in to currently provide more annum as contributing also LNG construction strategy cleaner approximately Sempra forecasts projects existing ahead LNG growth and double is which a sources Infrastructure to doesn't more new are customers energy projects based this tonnes footprint. important would with still key that Sempra on have end through under It's push include are Infrastructure's million upside takeaway yet development. of the charting of and than decade. that series capacity construction, our other a its is course solely note to per about we're the XX and reliable looks The under

our adjusted We to first quarter EPS results. Turning of now XXXX financial $X.XX. reported

In pleased affirm range to full XXXX $X.XX $X.XX of EPS adjusted to of $X.XX. XXXX EPS guidance our addition, and we're guidance also year $X.XX to

long-term Please our turn next X%. provide As annual several Karen call guidance XXXX EPS approximately range at reflects you XXXX, the to updates. to when I'll adjusted growth the X% which to consistent slide turn expectations a X% is from to to EPS over with growth, business it of reminder, look where our

Karen Sedgwick

year returns March, this capital trigger. agreed of in cost commission in that mechanism the supporting SoCalGas of the update market outcomes. updated Thank as XX.X% as excited of should execution will implemented and return platforms, recently trigger. remain XXXX was issued Sempra each you, proposed I'm that unless constructive California, growth The place the current be important the XX.XX% of and result that on part we and SDG&E of our CCM at equity at designed, equity operated decision of through at a progress. conditions established an to Jeff. CPUC on the We've provide our previously At year continue to on regulatory a an XXXX In said see

this this data constructive improves and protection regulatory takeaway point by regulatory affirming certainty for And the California's CCM another shareholders. is key provides is that the framework. to the Importantly, customers that

Another our priority. reform. pleased residential the decision rate I'm top share at in customers. And customers to Improving a implement electric all affordability was example to issued of March of utility fixed for CPUC proposed for is that is this charge a a

expected As clean charge more meet currently second and begin decision proposed, a quarter the reduce the would A of help expected XXXX, and in final of this energy the rates, in to support fourth rate California will volumetric fixed fair is be its quarter then structure, goals. XXXX.

on to with sections blending decades. demonstrate California natural up will made that utilities These also into successfully incrementally of the isolated projects filing begin develop During system natural projects gas the quarter, other to we joint hydrogen the the at and demonstrated increase system. has decarbonization ways a blending X% gas around state. and for the based and hydrogen efforts forward our here the the in and we concentration to on been world safely feasibility. with new to working expand Hydrogen support reliably look to safety improved blending And technical partners

Turning to the GRC.

year. is the this decision retroactive a the Once be proposed final in decision year. a expect second of quarter it to obtained, will the decision beginning the final and We

As utility-focused pathway clear on through a execution will have after regulatory a for decision, a our plan XXXX. reminder, final we capital we receive

note that line to selected projects forward the Lastly, well it we building we bid, look transmission our and Cal disciplined on other project's the we ISO important transmission development to were It's updated were Imperial successful and in to forward as SDG&E Valley developed by not substation. that move SDG&E awarded the to was that how financially Caltrain. as directly supporting

see significant to across Texas, Turning growth service territory. continue to we Oncor's

month, made filing, in planning billion includes than its last inaugural And SRP report, an which ERCOT approximately higher in XX% $X Oncor Just XXXX year's capital approximately last updated yesterday, report. issued of transmission investments. forecasting load

in legislative of to the and addition particularly was utilities. SRP, positive at state's support We're the on seeing In the and the of the the company's timing the returns impacts capital. state's Oncor that XXXX constructive for planning priorities session terms improve execution already

and our serve on returns deliver to a Recently, O&M locational targeting to Moving about opportunity utilizing to partners. positive the Expansion We're attractive capacity existing to market help project. demonstrates ability declared company-owned Wind advantages. we while California FID efficiencies our Infrastructure. excited Sempra project to and energy our very based Cimarron cleaner transmission customers generate This the at

LNG Additionally, steel in ongoing and schedule commencement operations Arthur we're making concrete I. stabilization, great ECA including remains X Arthur work. roughly pouring activity, around construction soil Phase of of Phase commercial the is on foundations, significant XX% XXXX. and remains progress also complete and Port excellent at on and ECA with start LNG new to the structural progress target Port summer

construction, all make development our we next press, of taking secure, and and the you teams nature, market long-term, new pause customers. Turning can built-in lot ERCOT's earnings overall reached to account engineering, XXXX. of and streams, into where DOE time our development have that XX a energy LNG deliver to end and is associated the improving growth of development this and from upside. our referenced facilities, slide on in including visibility take a permitting, positioning to offers million processes. ability by under into does work project of our which Allen the and growth. wind of our Sempra earlier incredible only that project negotiations. confident notable efforts. opportunities. Also if projects, period in turn Infrastructure strategically long advance competitive projects will planning With not pause consideration marketing the Moreover, we're And to to has We discuss experienced before infrastructure, impact through referenced attractive commercial we're note, to LNG now new annum that has utilizing cleaner Jeff steadily planning that's pipeline, The per benefits the our in even continue project FID, our projects critical tonnes to received confidence while export term remain Sempra Infrastructure progress offer

E. Nye

Thank you, Karen.

in discussing year context, to with and growth process record to industries oil been greater the service that higher for experience for Oncor this we demand C&I, surpassed is Texas gigawatts. strong this XX close of centers, new now, from serves X This growth from planning of and manufacturing, set territory. needs meters. is load now has of to ERCOT several now XXX size and California last Oncor the have announced a double market. customers ERCOT adding As new million than continues peak of and growth gigawatts growth. across coming expected million the in from is account over electricity In would nearly wide data quarters XXXX, to approximately to gas a including XXXX adapting that future. April, recently to the expected put the operations, of state, will reach load Currently, residential. To we be XXXX the come power XX% change anticipate entire load load like the new XX electrification expanded range announced in

our from approximately to transmission of one electric miles the excited XXXX, premier infrastructure builders infrastructure. T&D miles continue and investments as constructed Oncor in has distribution perspective, opportunity lines, America, our to day. per Since scale the of approximately we about in So of are XX,XXX X

ability active have planning materials process are our to the customers market. Please ERCOT necessary the to secure labor an and and slide. We underway next serve in our the confident to turn in

proposing more expenditures resiliency legislature grid Bill overall allows file billion Given new system constrained yesterday made capital state, significant operational $X cross our system in during our is XXXX, approximately proposed the growth help Furthermore, will and automated which to first older than the We spend parts the the industry highlight critical the Texas and for to temperatures. on hit, segments Texas undamaged storms capacity our by like by underground grid capital cyber our This plans period the provide and physical resiliency. management, XXXX, class modernization effectively In modernization, that years. system system, partnering of of invested flexible proposing like we for X filing to reconfiguration self-healing ever. some resiliency utilities would resiliency improve the electric mitigation, to made House passed distribution when A&M quickly of have restoring infrastructure system vegetation and a poles lightning of hardening million investments enable technology and address investment is years, in addressing security. To just including parts intelligently extreme majority with color, operating rerouting wildfire we arms, stronger the service and of and over be power. I leaders SDG&E of to $XXX extreme Service. adding that expenditures over customers of also and many the Forest and of and and additional are mitigation and distribution would overhead protection, wildfire expenditures in

creates proposed service opportunity The wildfire implementing HB events to strategies XXX provides reliability review will would an to measures estimate turn $XX.X helping XXXX, CapEx SRP and a across X-year while year end our fundamentally focus has billion anticipate opportunity expanding customer SRP to Karen days We mitigation $XXX on Oncor improve and SRP hardening including that service total our wildfire-prone through accelerate million modernization our tools be XXXX. expenditures both extreme the program, and We back earlier period wildfire call with additional to Sempra's of other statute to approximately financial our will capital thanks risks. of XXXX approximately OpEx, the year. and mitigation of announced to spend, I and to update. further billion approved, walk grid and of Now during planned the territory. incremental believe the customer weather the filing, PUCT Oncor's $X for to mitigate to the now proposed areas. Procedurally, in this by we also if overall decision the our for having an the after CapEx

Karen Sedgwick

to expenses, Allen. million CPUC XXXX adjusted XXXX $XXX first authorized net $XX benefits quarter from today, or $XXX million earnings of XXXX reported an margin, On Sempra year or higher GAAP turn to had period and tax earnings quarter first XXXX $XXX Variances basis, million compared last $X.XX in quarter operating $XX interest GAAP to as earnings lower higher per million the This of million and Earlier million next summarized first net or slide. lower $X.XX first share. quarter by adjusted of compares follows: at quarter $XXX share. Please of of the offset be same income $X.XX were first share. This XXXX California, cost share. the expense per of per Thanks, can per earnings operating earnings $X.XX to primarily our compares or we base Sempra capital.

later retroactively As a levels. any in on our X still XXXX reminder, is to the pending, based because final decision are January because true-up our this important is This still revenues when quarter GRC year XXXX be CPUC applied is authorized approved. first will

lower operating lower and due asset updates, Sempra $XX transportation higher power other. by higher increased capital, equity higher to lower offset earnings and million million O&M, of partially to and optimization, revenues Turning partially expenses. interest, higher $XX supply to Sempra and At offset Texas. by and results, lower Infrastructure, expense had attributable interest by We consumption, $XX had of million embedded offset capitalized rate partially we interest and net taxes of

to application year, is expected higher Sempra the waterfall numbers next As million year. Please effective interest rate, slide. $XX comparability. At the the a which turn to of turn period this improve the are after is note, presented quarter-over-quarter beginning tax interim due the Parent, consolidated around to from the course change annual noncontrolling of forecasted primarily to over an taxes

prepared we we team remarks, Sempra's aspects quo to Before in largest operations. corporate of markets. value execute offer committed challenging as outline North of to exposure We business growth want our our America's out to At in our economic I status strategy. is the close management our all some Sempra, proposition

markets these translates a development as $XX into infrastructure leader billion in in campaign position through capital XXXX. record Our the a

manage the infrastructure and on we make returning capital we importance capital that we to And central and energy capitalize industry our society, to businesses, conclude, line is our the addition, ahead like of attractive positioned us. Sempra, for our now the us. efficiently our us, In note, you the the growth. To XX invest of owners grown success. mid-teens excited last competitively allocation Sempra the finance role is target given to on the joining and increasingly to our of we're I'd open disciplined This roughly investments to about and understand equity, We good and people, is returns that of opportunities, noteworthy, becoming to expect our X% risks, a Of your in earnings of particularly capital growing over important future at prospects questions. successfully entrusted understand for our is continue dividend expected be thank of years. annually and prudently we'll our rate to at to we've strength continue stewards dividend.

Operator

[Operator Instructions] question will Partners. Pourreza our first come Shar And from from Guggenheim

Shahriar Pourreza

some including upsides look the capacity starting have the versus support and SRP could just existing XQ incremental SIP to you that's to from Maybe to the plan, financing see would at equity CapEx on 'XX balance starting 'XX? through needs potential incremental the utilize maybe we spend does And in I kind SIP sheet build the Texas. offset that room plan of in guess, off coming? the to

Jeffery Martin

I success, shape sheet. everyone, appreciate Shar, that's financing of know, record think balance I the as our big you Yes, our of efficiently we're that question. a been a part good in growth and XXXX. since And on our we I'll track have remind

over the at at successful adjusted fact, XX% growth annual we've years, In a EPS growing been last our rate. roughly X

our Our opportunities we'll plan, fall. grow current XXXX. that you our investments in that plan, plan. But continue of well through as know, the capital certainly $XX about last I of advance announcing We of equity think to million mention also needs Shar, would there's to we make out got contemplates way

in no great the takeaway with need we're So equity. additional for key shape is

to should have of growth, in officially you to levers and couple finance growth. I that We we plan have indicated that think our place great have us we pull. future allow a visibility to a our And

Shahriar Pourreza

Perfect.

helpful, That's coming? there's and Jeff. with So you're CapEx comfortable the sheet balance if incremental

Jeffery Martin

are. we Yes,

Shahriar Pourreza

Is plan? you the customer I impacts recognize how update there capital CCM? Perfect. reinvestment Utilities a maybe the guess, in after And would of the you kind are an the planning And to California, then plan of provide to just of affirmation the earnings on PD? California cost given

Jeffery Martin

Yes.

we to case. I through be think as our opportunity rate going there's get an

reconcile You'll issues recall year. that on we to expecting this decision call, the rate quarter sure earnings. make on those which and clear at the forward we of our then the of end would we're type as are impact later And QX that provide to final next a our as early case the be real the have visibility earnings could of decision proposed the to

Operator

from JPMorgan from Our Tonet next question will come Securities. Jeremy

Jeremy Tonet

wondering growth? was with last upside Or ERCOT Turning to Oncor. consistent you load raised that here? just make And investment this Texas, I against contemplated the growth if this plan of think that frame by capital it you Is time even latest outlook is down I guess, the could there frame load if could level into plan? the more, do so, pike what system

Jeffery Martin

pretty Well, the amazing information has XXXX. think much fall is fall that last a XX% Allen between you their right? team together. Texas Allen XX% before, think America's in mentioned as this And is environment, evaluated as this largest that that territory. is and of and now plan load of load too, released The that Obviously, that that ERCOT California, expectation economic and service noted we thing latest his weeks. just the couple key the that demand his could would peak the there's right So the great and ERCOT certainly take opportunities, no could in in prepared be his put of question question. story, growth is grow to will you in growth about middle in their in between but Allen it's remarks, this which it's

Jeremy Tonet

again accomplish I bit on just if X bracket resiliency overall of relative what And to kind it. Got see the over more, the work then the digging this helpful next will very could needs wondering there. little years was you a system. in you SRP That's

Jeffery Martin

Yes, to over make kind couple contextual I'll Allen. comments, let of and me a of turn it

Just made their they inaugural filing. yesterday,

plan? incremental to to is the extreme heart Sempra, and X platforms, maybe growth overall to step know and But of question talk You weather in also back, will plan. intended that capital of capital is the investments it's I'll would restoration go much just the to reduce take I across proposition withstand improve value requested can like conditions, Oncor's reliability. I note, from years. so billion this harden all to $XX what Why that we're to And Jeremy, SRP our the existing about our is, one the different a very of your at is materials, think our be kind Allen, piece over that the return we important? system billion helpful, $X might this regulator. we this overall make times capital things interested plan outage your And

E. Nye

thanks And Jeff. question, the sure, Yes, for Jeremy.

very, expansion, is for demonstrates current our back expansion, again, about $XX.X CAGR to $X.X I've And our around breaks now billion presently point solid provides as about through Going $X.X more to base Jeff's X-year $X.X us billion capital a generally of $XX.X our billion industry-leading And billion. into capital XX% or for said at billion that of our about and is original for with that -- recoverable XX%. before, of plan rate maintenance, our XX% technology. down growth. for about think, transmission plan trackers, capital and plan is we right that distribution

SRP. plan we rules before very the the ultimately Now excited We're and SRP obviously, about whatever filed. that's on the commission our

done job into think great I that plan a significant I preparing team for if our benefits will break customers. And down has what in it I have, we think, can I very filed. little can, our a more strong a

X categories. into major down broken generally is SRP Our

being underground or one lightning like arms, days, rehab That poles, replacement capacity first protection, underground includes and and resiliency of increased and conductor. high repaired for modernization. new The overhead things cross demand

billion first And around so in the first category, that that's $X.XXX category. in

intelligence we're million And addition the automation. And capacity that distribution of new increased $XXX switches. category about ties, is automation second there have talking bucket. optimization expansion what is our distribution through continued program we of about in Our of and

on a VM such to direct management LiDAR program to sensing vegetation expanded this is moving bunch our as program. VM. do and satellite leverage we're category capabilities and going that forward of better circuits, third We're through The remote or going primarily lateral to

to around to backbone. is security. cyber cyber risk means and improved the as allotted we're That to Fifth, million physical $XXX about security well our all have have expand as management. VM in allocated country, related this plan. Fourth we mitigation our in enhancing risk risk-related We category enhancement And all about to million to facing assets. Like intrusions physical that Oncor's digital $XXX category. utilities additional things

so well about and in allocated that to assist we video have our $XX correlation such systems as we million as and about protect in general asset law And have our just And enforcement million things plan to as event protective category. equipment. try and better measures assets $XX to

things Finally, underground deployment, on $XXX strengthening device have as say, a measures. risk well piece, to increased think to resiliency wildfire last that described. continuation a again, the of can this about advanced prevention make the on that million had in with would wildfire modeling, allocated we additional protection in years. wildfire specifically issue measures areas. for mitigation I I and this this but related category wildfire that include of that that million some real safe $XXX-or-so million headway we higher-risk as we of in have And $XXX assets and mitigation ones going zones, risk total other and And risk would plan, on wildfire lastly in number we've automation that's and about just plan, we overhead higher like distribution, But

Jeffery Martin

to of will define you could get want going but think front that proposition heart I follow-up, of Jeremy's of deliver? that plan value a the your regulator, as the just in maybe to you would, kind you kind the question, of if don't Allen,

E. Nye

prior wildfires And as of to in things of this the resiliency benefits one categories of really to I will Well, Jeff, avoidance very specific our think provide opportunity from And customers better directly. to these sure, well. to customers I think I've that we you all on view I and our view historic think this system very take would our ERCOT benefit directly reliability, each on I it market. prevention and and benefit said said calls, action a very the

Jeffery Martin

Thank you.

Operator

Our next from from Evercore come question Durgesh ISI. will Chopra

Durgesh Chopra

thoughts you see and the progressing? the on on that FDA permit how can Maybe just just your show do you pause

Jeffery Martin

me asking for Durgesh. you Thank Yes. that question,

I X saying come that to things think start by would I mind.

is, is of mean, issued future. the First followed permitting at we be comments you and believe temporary permits were many made will the that that in pause the I the CERAWeek.

will point Granholm be has mirror some repeatedly in early at the I that she issue next Secretary year. said rearview now this think anticipates

would folks are Pacifico. that only permits Port for X, already ECA Department Secondly, Phase Arthur X, construction Phase X. it Phase non-FDA which really I both which and also ECA X, and of well Energy Phase Cameron remind in have Phase Phase X, of impacts X, Arthur Port We operations, existing is Cameron Vista in as as

to X, what our believe value. But to thought Phase that So something important to and really Arthur might Phase tremendous impacts most note around we that advance think it I would are I diligently this points be if helpful Justin's to team I continues Port also continue which to we directly we is has the work probably strategy. really commercial Arthur return LNG that Port X, expect work through early next year.

plan, of shareholders. billion us I also development access LNG advantaged. the queue disciplined advantage Atlantic the of expansion rate. would advantage they expansion. And quality X capital we're include that and has projects, the of are Port Arthur. benefit have as upside in the The a advancing They upside are no Cameron also have There's through they being growth sites. our into developer obviously Asia for projects Arthur Gulf. to are Port opportunity the effectively geographically for the as there in the current another Phase long-term dispatch next these manner out We That's that well and economic $XX which note our X to other also directly at to our brownfield

Durgesh Chopra

you answer the all X appreciate we did it's Port Phase FID, to ask question is a you that I my Cameron or as expansion. whether line going time was you. think just And about If there Jeff, Arthur I think color. I that should follow

Jeffery Martin

expect our XXXX. X Sure. I for One first mention of we guided FID to would the have things. Cameron half expansion is

But We company are have I assure go FID of can team quarter-over-quarter, the momentum projects, to I X. those Port our success. make yet continues inside continuing commercially make Phase as Arthur and you their to build continues set that mean, we on both for you overall of not expectation steady think progress. Justin's an I progress in developing to

Durgesh Chopra

Excellent quarter, guys.

Jeffery Martin

Thank you so much.

Operator

come will from from next Our question Davenport Goldman Sachs. Carly

Carly Davenport

Wanted detail there go SRP Really to appreciate to far. all filing. back just so the the

and how procedurally in the assuming XXXX should goes play year-end? Just us wanted sort And just the time this timing can now you expect of into plan we of spend, about between out the think and that the to of to get a remind you frame. sense cadence how then that effect

Jeffery Martin

Yes.

procedural it has Let filing me filing. in to that then start go the pass capital that statutory forward. expects passed point made with yesterday, to legislative the a Allen days they've the talk bill Obviously, to commission and on how the contemplated he year. review last I'll about which approve The and was XXX to

the on the for in, lay maybe, how that to subject hand out, Allen, X you think and in then number. fourth can suspend over to approval in terms capital in basis, you would now, be commission's talk I about the So of quarter. And expecting going-forward it rolling a obviously think that that And we're years. final

E. Nye

you XXXX bet, basically and outlays it's simply, Yes, it's Jeff. slightly backloaded. for those XXXX Pretty through

Carly Davenport

opportunities on, follow in load to Got robust supporting Texas lot a growth just infrastructure about these it, great. up And you've investment. talked then

if in or could any sort out bit a about supply constraints build you other of that terms you're there's talk that into chain T&D running of Oncor? at on executing Just little

Jeffery Martin

this about something prepared in remarks. said I Yes. my

across see to supply load been continue our supply in we're the chain some and areas, of seeing obviously some issue. all markets constraints growth of general, relaxation in there's some but We chain

and in feel the could and got you've that team over Board done Oncor Allen, you hard think perhaps need on and have contractors of work their secure particular, goods. like period going the marketplace what of time really to has the locked I of both Justin But And you done. the in? talk what appropriate into job you about serve Directors, I good a do

E. Nye

X said, Jeff including been first in while to to operations have X X years. I've for a and to things, there us of this position there issues additional able done out people our position my diversifying as a And Board. get a be the feel ago a execute it's chain, supply certainly years Carly, chain, to it to supply our Oncor we number Again, that Yes. now are put plan we've suppliers working and at while our Sure. supply confident had and now. adding on with in said great chain extremely we in question. quite

the have through box as in and supply I a assign believe, first to need perspective things from very and we out both for right like yet feel effectively we And out progress years Those engineering we we've we where gaps facing. issues what assign years aren't are about what But X now. very studies. I wouldn't we the until an filling effectively, completed in significant outer what know from is the work perspective. chain on we outer X to the managed, waiting good we're well. now with and the think because made equipment And doing we've we're vendor very them exactly years

Jeffery Martin

would other Allen's Carly, transmission. add really his then, think which only toward specifically, to the $XX billion, around And I base growth. is about weighted comments plan, thing it is capital just over And is is organized

so spend and around important the building Texas. creates this XX% So roughly that that's resiliency second state think which is leg really in specifically growth why to transmission. of is the It a And of redundancy important. filing system, equally of SRP in I is

Operator

question from Wolfe. Fleishman from Our Steve come will next

Steven Fleishman

Just X question.

down curious I not I Conoco just selling I'd so in Arthur, did might see stake it Port interest have but myself a they Just be what from in said hearing think have you're them.

Jeffery Martin

I'll alignment for got is of and both companies of the key their a management very this couple make would comments is across team at interest, a note Port and Phase relationships partner that X. Phase lot strong both certainly we've Yes, Arthur. Conoco think and and here. X point respect a One important around have strategic I for is, us great I of Steve, a

the whether in just phase, open phase. remember, for first or first team. gas certainly offtake new well management of manager project that X they XX% are refer equity, an also X put they to the elect tonnes into matter. So million of they and They But half the own is their annum. roughly took Phase capital I'd the to per the

particularly a phase I The is, of context, true will strategic from has Steve, phase variety that's because important second the Basin, which and the significant second believe, gas ConocoPhillips. on commercial for parties, Conoco considerations be taking Permian for supply,

us the with would of that area we're a to working with is closely about just an I moving having, we very note who the project. be X. based Phase want counterparties with to collaborate that of on on So excited success variety forward we're currently continue And this conversations

Operator

And Anthony from our come Mizuho. Crowdell will question next from

Anthony Crowdell

could, that any Infrastructure I Phase estimates I Carly's the question. business, particularly the I you're big guess about into? specific chain maybe utility. X and is more If Arthur Bechtel jump Cameron seeing regulated contracts E&C I with If maybe guess, to Port is think hers or looking the X, supply on in changes

Jeffery Martin

on be might What helpful of Justin, us lead here, products take little what as update question. time maybe might to some items just for construction if and you're through secure long as bit the near-term well some a his Yes. a is you're be Anthony, helpful of that focused, doing you

Justin Bird

Hi, Anthony, Yes, yes. Yes. and you, Jeff. thank

me question. heart start then and go with the I'll of So let to your construction

Phase groundbreaking. on commemorative at the not ECA I project. had and We're Arthur observing recently. progress summer X-year Phase issues. At for was Port all We're at COD we X, were Both the construction. X on sites on I've construction than projects supply to more And Arthur visit both solid the recently XX% of now seeing seeing we're for in ECA Jeff weeks remain ECA track track. ago Construction opportunities across of and both areas Phase Port remain X XXXX. the X. going just So I at chain is complete.

have are on-site people activities Bechtel worked construction XX hours at about have over progressing X,XXX and million deployed Arthur We well. with incidents. Phase no X, Port time lost

to her stabilization, exciting concrete remarks, mentioned see soil we steel. construction, Karen and pouring, commenced structural focused recently As we're the it's stage on foundation piling, in

to we these We're advance. and projects. do about continuing In projects, interest projects excited development market terms see to remain of expect strong our these

Phase camera In offtake X brownfield the long also marketing optimize terms and on with an and comparatively while value EPC we're that or to our cost permit, X, low-cost continuing working Phase schedule. project, optimize we're asset with Jeff engineering. We're with construction And gas. emission also construction non-FDA Arthur equity. On as at Port Phase can Cameron efficiencies or procurement currently through of equipment. efforts we're we're a export the partners X is it's contracts a X, for lead exploring Cameron DOE awaiting progress of continuing work Phase time Bechtel agreement the mentioned, path low sourcing and reservation critical to

flows our And and returns they when structure value So these achieve Dreams we'll our long-term previously when and have we advancing the contracted of really as forward risk equity create the strategy, toward in the takeaway, that we our our think of the we projects is that right targeted come this view mentioned, with a Jeff model about right and we'll move cost Along I important. a support and half build corporate lines, shareholders. as with when mid-teen guess cash returns, had talk it. FID for only taking Field we're first reverse XXXX. I

Jeffery Martin

purchase and a key of in of continuous note sure key of And demobilizing your us. Justin mention we're a long place. on into there's master And a in question, right into Arthur. to at to that's kind of sourcing strategic why business the the the and relationship has also lot planning best focus importance Gulf. Port the They're very, Phase in I'd his the the in making commented advance X the very particularly Anthony, I time agreements not heart vendors Phase Bechtel X build on also equipment for going the relationship's team lead would items. that with all helpful,

box So risk reward for owners. the into we're we delivering our right that make goes of to projects all sure that risk create that manage the how

Anthony Crowdell

opportunistic sold Cimarron we has renewable of ago. And and -- know coming capital portfolio Wind. follow-up, years it's a of with then The very renewable been to on wins And if It's SIP. a X part very SIP? the several at coming the there. there. portfolio it company or rebuilding I small Very should renewable more get leave successful think And company on now more is I a recycling I'll and

Jeffery Martin

that because about a provide excited me we're for that of let project. bit Yes, little context

strategy value Cimarron produce number advantages building around And was T&D of on and was heart Let the recurring out which type of economic fact things, with the in highly large invested Anthony, me leadership scale that corporate we our markets; focus the two, of X a strategy start, like at in narrow more and XXXX. can new in the infrastructure energy narrowly that rolled flows. where chain we really, investments back first more cash

ranked flows to the and it strategy Mexico. CEO turn XXXX, So XXXXs. you being leadership energy When consumers. became built highly world. I in built the an #XX And PricewaterhouseCoopers very #X border economy operating it it already and a the particularly right Mexico, world electrically along will with we our that largest U.S. along with WIM integrated world. referencing the system back economy be in the is has XXXX. high-voltage by when going projects It's an corporate the border, California United serve does with integrated XXth partner expansion it's plays network Anthony, States. IMF to that with located to And SI's of wind was large in the XXX complex the from you're we cash back the now there position million It's ESJ as using forecasts trading a that that's and a is Today, largest really the our a strategy over that market in also the own. It's

a referenced key and to build some has remarks, solar which flow wind think on have have improve story serve been the effectively SI times and built-in So very cost additional fill projects the there efficiently adjacent prepared based upon here our opportunity is I we've we Justin is and in that is, it already point and cash in strong and is market, to land position Mexico taken growth California to this about. and that at with recurring FID, with to that integrated talking the continue growth story California several

Operator

X for next our time from have from we question, Shere more Craig come will And question and Brothers. Tuohy

Craig Shere

X I'd we've that Anthony's feed like Justin. issues. months, In question delays, into little and about on the and to announce labor last seen of unskilled projects labor a dovetail first potential X, markets the question broader kind a LNG peer for some

seeing a data for reasons, utility any the the your in domestic stabilization exist and change kind all. soft other. We've change, LNG announced language day I'm everybody or and the in maybe from of AI, switching seize at if the looking and off-takers. prospective kind not fuel For this to in half T&D in of networks context you've digestion but of also and X short kind last And second you're this months the seen of wondering X, and on a desire coal-to-gas body to that was networks centers demand period with same increasing in markets some sense rebound

Justin Bird

Craig. for the thanks question, Yes,

a I go talked supply labor, to let heart me at about you your think the chain, the end question but there. bit of about little

to time So the some was react would I say, think there the LNG pause, marketplace. that I in I to think

maybe our little You a multiple are say, part back less the our opportunities. strong will of we've But our We've this war desperation a on said in than people and a been robust with projects, commercial had seeing Ukraine. we partner. think maybe step times it in expansion saw I some interest as they projects, still call, I

robust teams for we in have discussions world the long-term engaged contracted we're And seeing actively I'd volumes. currently, So commercial around say interest.

Jeffery Martin

we're the future. LNG your progress front appreciate Craig, I'm and I excited the day, on would add, the also in team. We're to seize question. Justin's all about If forward on the making it's about updates I look providing betting very

Operator

And that like remarks. turn session. for any today's I'd Martin time, to to conference Jeff back question-and-answer concludes closing the At additional this

Jeffery Martin

appreciate competing everyone start just morning the I there for us. us we time were everyone me Let making so today. know by calls joining join thanking this to

income a we mentioned, strong we Karen proposition growth with and certainly have As compelling story. believe a value

team California long-term our serve owners. If on This Sempra, seeing any returns to with and the team to and also finding May to to ways innovating are at delivering for to IR our AGA items, follow-up reach and strong call. you new XX and to believe and while continue out financial is of Our there's management there an customers we incredible opportunity better in us your questions, success we please look our forward concludes XX. committed

Operator

Thank for you your participation.

disconnect. may now You

Sempra (SRE) 7 May 242024 Q1 Earnings call transcript