SRE - Earnings call transcript Q2 2024

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Operator

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

Glen Donovan

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

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

per we'll Earnings non-GAAP measures. discussing in share accompany that measures. shown presentation for presentation reconciliation this financial the refer slides be Please to certain basis, diluted call common on a GAAP are a amounts and our to

the revise only to company also forward-looking you to that does speak statements August mention today, of any like XX, forward-looking obligation our or the presentation to I'd in XX-Q review XXXX. for in XX, We to not also encourage it's note of statements important these June the update quarter XXXX, future. ended contained that and assume any this

over X, to me and turn hand the please to call let that, Slide Jeff. With

Jeffery Martin

for thank joining and you Glen, you, Thank today. us all

a performance. safety the out financial and lot be operational excellence, projected confidence long-term strength while actually on X%. well pleased and we of importantly, a year, sets of the As X% to focus of up about. also more first EPS the And with to half supporting rate half our the excited This us year, continue we're the there's second growth in our in our we of think close we

we reliability achieve goals. and we of At energy. improve important grid decarbonization to cleaner investments critical delivery That's the safety, continue its California, continue safety, role play modernize state of and to helping the why in better Sempra make a forms to support the

anticipate is of We also to look our final a state's decision XXXX. of in The general utilities to forward GRC expected this plan with decision advance later improve meet visibility the and cases and our execution our year. the help better goals, the to the end rate reliability the before advancing here through a summer state proposed of community outcome public expected and policy safety

growth, Oncor's wide across which see Annual trend is premise driving all continues to the Oncor is Texas, will coming territory. electricity for average. of and including and manufacturing, the also walk impacting how technology almost from range remarkable growth around to is demand one need capital continues a Sempra service At industries, new it's and digital Alan infrastructure. through Texas the X%, national double grid investments, example,

billion pending backdrop, capital of on capital XXXX. incremental $XX to investing recall from to executing X-year plan that by through currently regulatory that resiliency of with record is XXXX system Against a billion you roughly improve a up Oncor $X filing

in key territory, higher process growth expect capital Oncor to in will be this to fall. our future levels service a in continue consideration the remarkable we planning financial and this of the spending With see

see and and progress continue Finally, Sempra development to we enhance key energy focused support Infrastructure several that the investments transition remains across infrastructure initiatives. critical on security, advancing energy

$X.XX. of of EPS for our results morning, adjusted this financial $X.XX the we adjusted Earlier EPS reported to and quarter. Moving year-to-date

my year. not As year-end a the to California had first half with X. these the retroactively rates to GRC expect of From the great we a we've applied of before January results reflect decision, reminder, do perspective, which final a impact start

we're EPS our guidance adjusted guidance full result, our XXXX to XXXX next EPS both and affirming a range turn the year range. As slide. Please

our As strategy we advantage execution. key as view a are energy a in an assert elements our markets, opportunity reminder, corporate to competitive X there and of to plan

our America in positioned benefits portfolio the increasing for exposure to economic attractive energy natural America. separate United of tailwinds demand for the investments improved markets First, example, and some with around our export associated infrastructure from for and strong of of while North States. infrastructure North the demand most security new give global we to utilities liquefied from Texas, industry California reshoring the gas in great

Second, volatility. improve price while we By risk reducing strategy part to this investment provides for in focused namely flows exposure a recurring and improved of an so, investments. quality aim the and to the narrow We value chain, distribution we earnings owners. transmission nature risk-reward of energy our our cash more believe profile doing and our and

priority all our our to aggressively the end to of has At stewards finally, returns day, company capital risk-adjusted owners. capital And compete allowed help delivering X best, ensure us being to platforms we good overall returns. we're growth continue is attractive, a across and inside delivering of the top the

annual been in we've EPS adjusted delivering since XX% compound rate XXXX. successful example, growth an a As

Please over that to turn the next story I'll to Allen Texas. in call slide. continues to the walk through the turn growth to unfold Next, improving

E. Nye

XXX our In Oncor growth count I'd year-over-year. quarter you, all miles our lines, X,XXX increased by premise service transmission POI which and rebuilt approximately that like requests, the Texas built, in the alone, XX% T&D has at across a start Q XX,XXX Jeff. Thank approximately second by in new or increased interconnection of state of pace saying our rapid we and active requests approximately territory. to ] received continues by upgraded especially the [

plan X-year It's that also was the announced continue important to approximately to of capital year on note earlier make that this $XX billion. we progress

in that not of expenditures part this capital the SRP May of does SRP. mentioned, may the We include first as approved our system be year. Jeff PUCT filed our plan or resiliency with As this

of SRP environment. operating Texas, threats physical measure and across and resiliency weather, and our our and we're The each That's extreme high focused reliability, our more heat events cyber wide why as events. in activities weather nation the seeing that service seeing resiliency security is a threats. whole, number response. severe including an for increase be extreme of territory, detailed intensity ice, programs have shown to address the with even intense of security winds frequency extremely must Turning of storms, like X and identifies range we us on wildfires, to the including risk the measures,

have or, weather system our opportunity hardening parts to eliminating which Today, or to distribution this Along significantly some in prevent lengthy facilities portions to with our our other automation to load a events, on grid our include self-healing newer technology, outages the of automatically undamaged grid of initiatives distribution the system. during proposed reducing legacy and call measure. redistribute our expand system We customers. for us this of allows flexible cases, extreme outages, of our to many our substantial

been hundreds of our our SRP helped could other technology. older some severe examples we the in this proposes with portions the day-long storms experienced have PUCT our also retrofitting outages technology to provided areas, system recently avoid customers from of May. how this of We what Among

our other proposed have including vegetation we of year, remote target approximately sensing programs million further Additionally, and technologies to management per by vegetation. better expanding use $XX new fast-growing

also These management Forest than expected on to wildfire Texas These our more are build Electric, at wildfire expansion specifically efforts. Gas our and globally both accelerate of help with as that in measures mitigation. matter SRP vegetation risk, with to to our continue double This counterparts will comprehensively significant investments, efforts Diego & wildfire distribution and will work San mitigation with the is our together collaborations address response. recognized subject A&M experience the experts Service whom target

of and action It's SRP and May not extreme measuring our months only improve resiliency touched is events. in taking the passed want thank area, in soon who employees, June, our and the worked our our to XX-day impacted also Over customers XX to around Metroplex, a personnel possible. as off-system high service winds the clock storms for as straight-line a with preparation and noteworthy weather down as as DFW Temple-Collin the we're Oncor contractors miles storm Texas I'd through region. per XX,XXX to the period tornadoes East hour that the filing safely additional restoring

Gulf a our resilient it's which we industry that recovery exceeding Texas. to Coast you must assistance shown have assure also operator safe the are improve to expectations Beryl. from Oncor, team. and the These prevention, can seeing for I And that priority our electricity. so a the we're of response growth grid, are even and delivery we in sent our assist given reliable and helping dedicated and XXX customers' we for our and plans in communication for ensure to continue workers Recently, storms amount critical a of more safe to being top reliable the is At that meeting mutual Hurricane

XXXX. from at of power are Please capital high-demand to interconnection the capital growth annual Oncor's Under in from requests grow these current to turn plan, to XX% slide. anticipated additional the C&I base next large expansion the rate average rate our through XXXX drivers customers bring primary to needed is plan. transmission the of customers our and an

the yards and investments various of multiyear help new ordered with meet support procuring steps base, of and diversify significant agreements, to to inventory into scale the these in important have critical laydown begun To capital timely supplier taken we've rollout equipment necessary investments, our warehousing enter investments. in our advance

our opportunities growth in see significant for also territory. future We service

current this gigawatts nearly earlier August record XXXX. XX.X to load projects announced double the XXXX be XXX year, As in gigawatts, in of peak set ERCOT

growth, load projections served load Oncor. ERCOT's approximately in current future on continued electrification that with XXXX. response a the internal the billion PUCT Permian to in efforts and to investments in the passed $XX address In new ERCOT Included July projections, our ERCOT XXXX be plan are Bill XX% to load growth we to session share billion Based the in Basin. filed identifies of of transmission this legislative of our that by $XX expect by late House XXX

the the of region, we a our operations to portion are plan. projects significant that scope the the in in build expect of ultimately approved Permian Given

higher update of continue we call in noted, reviewed earnings capital SRP on there review capital future and likelihood and by As filing our to a the provide the the is is by for and to expect and future, our after complete expenditures Board. analysis finalized our spending Oncore's forecast QX PUCT is Jeff an

on focus excited efforts our our to remain in safety that set everyone provide in Texas on while system. are by affordable maintaining a relentless customers, I about sharp service our will the opportunity really would reliable, the conclude to saying all we electric of works who and

Please walk Karen the next business update. where California's turn to slide will through Sempra

Karen Sedgwick

benefits in adjustment Allen. mechanism you, California of the a safety and that fund largest capital opportunities strategically cost utilities. Sempra of investment rate is an wildfire the economy from resiliency to backstops decarbonize supports the forward-looking regulation of that state's the and constructive improve Thank established financial and grid, positioned and cases, the the U.S. strength

California's California's participating sign funding. SoCalGas, tonnes At to DOE decarbonization helping secure to are of hydrogen hub. a will need which year in play sectors. state's per will form SoCal and proposed California became ARCHES' hubs, Angeles to million nation's Link Angeles, first with meet These lower heavy-duty has XX a support Recently, hub help SoCalGas one the Los emissions statewide a goals. pivotal ARCHES partner, transportation of and XXXX regional climate its we're several is expected key its hydrogen That's Gas role the in goals. in forecasts hard-to-electrify country's other manufacturing why of the the hydrogen molecules component initiatives to largest cleaner that

be Community our to to Turning SDG&E. continues safety priority. #X

climate decades, X made strengthen fire-threat significant mitigation and by resiliency of our last wildfire training to districts. steps wildfire Tier further predictive SDG&E's making the in investments lines our X significant and the center. in We've hardened we've Over taken upgrades and resources tools, high to XXX% transmission proactively

chance a you is come related plays central of and part ensure prepared the climate-resilient the to This technologically helping cameras, conductor to its of visit features innovative impressive. facility, of recently mitigating out and America, if all facility solutions, a invite data facility to risks and most anywhere while kind facility high-resolution the to it's is Substantial drone operating effort role the detection. I enhanced of I environment. SDG&E This grid. in a for line the of its larger include in SDG&E a is fault public one state's goals building advanced had energy actively policy to meet and state-of-the-art you see AI-enabled can.

moving Utilities. fifth June, termination notice mechanism, and filing. SDG&E or rate our to of In owner preparing Now a TOX, regulatory updates delivered TOX of its formula California its of transmission to FERC is

in to conditions. and date expect making a SDG&E anticipate we reflecting an competitive filing, case effective our the make We fourth with our updating submission in formulaic market constructive In a quarter today's for rate XXXX. ROE,

California the on GRC. Lastly,

expect year-end. decision summer by a We and final to decision propose this later

As a final retroactive to Please this the reminder, slide. be the will turn of the decision to beginning year. next

cleaner per reach capitalizing strategy global XX% nearly Mackenzie than Infrastructure's by year grow and Sempra long-term million on for more is secure Wood will on estimates growing XXXX. energy. focused LNG and that XXX the tonnes demand more demand

XX% needs. LNG roughly complete. At Our is significant X, development are strides pipeline those help meet we Phase ECA making to

has productivity months. in However, experienced and issues retention recent contractor our labor

As of XXXX. the delayed result, commercial will our date spring operations until a be

to opportunities, and FID our result We capital including with changes financial the we'll potential contractor form additional forward in stronger to inflation are original the based a over capital, SPAs. and which the are costs the curves. forecast price in time optimization commissioning factors, delay see the demand that XXXX. for of we advance carrying of protection lower of is at LNG project, on expenditures estimated revenues, combination maintain consistent This our returns, the Despite engaged term strong the we the took with actively project of increased and still within long expect integrated in

cost and engineering. for work Port LNG, value partners Arthur authorization steady And Cameron we're the to construction We on to received through our progress of Phase FERC the expected efficiency activities. with to which budget X, I. enhance overall we on we making schedule. At construction, remain recently Moving to XX/X continue Phase is efficiency improve

project a Finally, expect we've begun XXXX. XXX-megawatt commercial reach Cimarrón operations of wind, and the half construction in on to first

restoring to work both Mexico regulators legislators, energy Our industrial and their in ability to economic supporting and drive continues demonstrates increasing forward experience we look our well expansion. as with to needs

contract Earlier next partnership Port Last Port month, interest at also X Please at Arthur some about with very fixed EPC the an update provides per of in the to level project this the developments our Arthur X. capacity turn recent HOA with we Aramco contract annum opportunity to for We're executed offtake XX% for million progress a LNG excited of executed summer, slide a and an Phase with on an X. Phase we also equity. firm world-class price benefiting Bechtel. This construction. continue while from continuous tonnes

In the Hub. Energy Phase overall part generate expect of as to returns the facilities with on that being investment robust we common constructed are Arthur combination Port X,

permit received are the the with all stakeholders with to approval. We non-FTA which this permits, working has material advance exception all project, of export is DOE pending that

the anticipate do DOE line. pause not we our impact However, development time will

that have all at our plan. capital As projects other existing a not represent and upside to Port reached X Arthur Phase reminder, FID

morning, share. On This an second second where of XXXX next of $XXX share. or through $XXX or The reported financial Earlier Sempra's quarter compares I'll or turn $X.XX second our $XXX is quarter to earnings that $X.XX million to XXXX to million GAAP per with basis, this takeaway of $X.XX XXXX were financials. per million second compares adjusted quarter share. per pleased $XXX earnings Sempra walk or million our the we're XXXX earnings This earnings results. quarter key per $X.XX Please share. GAAP slide

the of of strong our For performance. financial deliver positioned forecasts above year to financial the first well months another we're year, are trending X and

expense. earnings $XX Sempra next of be follows. the base and last primarily net from operating capital. compared operating period the to slide. interest income more higher second quarter of as including had was $XX margin, to regulatory net than summarized higher in million, we benefits, expenses, cost the XXXX primarily awards can At offset same CPUC authorized by California, year turn This adjusted tax lower higher Variances lower Please from million

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

$XX partially earnings to updates, higher had of Sempra consumption, to We capital offset expenses. by increased Texas. equity million interest rate Turning and operating and attributable invested higher

At Sempra the primarily from $XX and partially in tariffs net in Infrastructure, net equity an effective by lower offset interest business, expense. of offset is in we cumulative tax due of of period higher impact year including annual the net At prior million the Sempra and million $X higher had taxes of application interim partially higher and $XX the new million earnings consolidated O&M expense. to lower revenues, tax by lower revenues expense, Mexico income change interest lower forecasted the parent, transportation rate,

To Please slide. success remarks, corporate turn up reiterate our drive couple that strategy. of to overall wrap want next help of our key to the the prepared the a points I

look of and to strong North forward levels look safer, and our our and As results. a and time infrastructure energy capital an as the offers leader our of America, more support for position beyond. our new deliver this invest reliable delivery investors as is higher decade largest visibility to and continuing we energy critical company, needs end financial evolve through growth grow To commitment future of to our we safety to to exciting conclude, America's and operational economic to resilient the and in markets, energy. operational North excellence of in unwavering some And

joining your you to the like open I'd and us, now Thank questions. for for line

Operator

Instructions] [Operator remarks. This you. the prepared Thank concludes

Guggenheim question our first Pourreza will Shar And come from Partners. from

Shahriar Pourreza

Excellent.

some delays, timing at from guidance perspective. you as of next offsets about up also obviously, how of I into the project of guess sort you we Or is know mitigate looking assume Jeff, perception there's year? timing reiterated somewhat are conservative. ECA the be COD But later you on you'll delay? I a forward just, we kind I a firming drag? 'XX Can the But today. guide should the roll So 'XX level guidance thinking know that

think do just pieces? So the how we moving about

Jeffery Martin

work you, talking the schedule saying question. move disappointed I change and the guidance. start XXXX expect the we start at is That we ECA practice. by would about of I'll asking has we're contractors, on that the projects our as on in Shar, standard by schedule to time built to at and I'll for Thank budget. When our been with Sempra. that change be in our

And standard in will that I'm been get confident it has not this but Justin met, corrected. and his case, that team

of the we've of We those both Here's published original our forecast, the portfolio line updated in financial guidance in as continue commitments, what's Sempra 'XX reconfirming targets. We've that this to morning. you we ECA believe EPS your returns remains to heart form important and infrastructure. and equity target as to we've across been And mid-teen the with confident going ranges ranges question. know, at XXXX, made owners our in for those

have note to like of hard over business. exceed the I'd XXXX, Karen would regarding a to continue people's if performance talk reduce to and also to costs makes could, turn of we'll Karen. bit about we this grow both little plenty sense, to opportunities you our work that I and to it where expectations

Karen Sedgwick

Sure.

our to diverse a guidance. mentioned, have meet levers with portfolio many As Jeff we

our at the SI [ efficiencies we're as ensure So with includes our to in ], the in asset steps ECA, available driving financial business. on this capacity, several addition we optimization, taking deliver such commitment. change operational utilizing some pipeline scheduled to

platforms. We significant our growth continue across utility to see

at call on opportunities Texas we're us that focused productivity. across and then updates increasing For efficiencies period. And example, Sempra enterprise, always across Allen's benefit planning business expect today's our next and to creating the year we incremental on to points

fourth So our we'll continue refreshing plan process and our to this and this later look fall updates forward call. on provide quarter

Shahriar Pourreza

let's just of proceedings. of been for say, sort is up update outcome just sufficient 'XX, part the on into a or And thinking CPC about firm on of like for you do you I up then GRC? the wait are of GRC of bit Perfect. things kind if the how to 'XX year I outcome. the slower you the acting a the And the final we 'XX? PD? various enough in kind delayed, vote Okay. a mean, timely cadence recently has order an that brought of need to kind financial with guess, do PD Or even think in latter 'XX? So how is about on

Jeffery Martin

is, last Yes, very Commission I'll you couple California over this docket, a the XX of on months. busy a particularly Utility has give Public the had thoughts obviously,

that very Gas both So kind would rate I the our think, strong we of Shar, of and make together, What Electric understand filing what couple has this I case delayed on is SoCalGas. San points of into is timing been a Diego & put GRC year. a we for

And are some of and reached we final receiving strongly we with in each with rate the the safety the filings the reminder also recall state's those reason and on a have energy. of for note of roughly decision you'll And subset of fall, X/X expected key to would confidence those of level I are a end decision interveners. of around summer we that year. last later cases before specifically both community is a a this forward clean proposed look as reliability businesses settlement which with safety, priorities, the line

audience So case I our effective our listening rate will very the saying still think January we X I with then track to working to of by good stakeholders and remind very of get record that we retroactively rates we XXXX. strong a I outcomes. would to high have conclude that regulators And larger out year. point, confidence voted our the would be have And to this

be to plan. call our forward potential our our in we'll guidance, we're our QX capital to able to capital QX terms on strong give we'll And think that a our in call. on comfortable plan including update be able changes more I give of hopefully, visibility

Shahriar Pourreza

the Okay. That's perfect. additional color. Appreciate actually Jeff.

Operator

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

Durgesh Chopra

the on discussion. up ECA picking Just

obviously. estimates around $X.X I and construction you costs think were delays, billion some initial mentioned the of

billion, how tracking number Just could any the overall $X.X of that project does share sort you versus if cost there? color

Jeffery Martin

in provide might around color some capital. schedule our helpful, maybe ECA the listening a on changes I'll little returns the And more if provide we ] for at [ Sure. it Justin bit be audience. just

mentioned, result as is schedule be change, $XXX we're a expecting share expect referenced we The targeted earlier, of integrated levered million. but Sempra's to Durgesh, the capital in increase project. the I've Karen the maintain that first to returns overall thing about for estimated our this in net still the mid-teens for

And as you optimize position. know, to continuing transportation our that certainly includes

it You'll recall, the continue too, schedule, us manage that with to in transportation to change provides that opportunities position.

United been got demand XX of market what constrained over a XX% years. where those recall last the the that seen western the to California, transportation, in of States, including New in we've has the increase Texas that us in are increasingly Baja, connect For part natural hearing serve to about you gas producing by And and positions Mexico. us who our both allowed regions, we've

us Durgesh, the returns. we our at One have certain been in that's our SPAs also other us expected thing helping that's benefited helpful in project, protections original and meet is inflation

color returns. takeaway So continue meet to in in good expectations speak change Yes, financial on targeted new the and Deliberate spring schedule. and manage also I'll I the go position that of let in and with Justin XXXX perspective the project. is consistent from think additional our in the my to a some we're of to the key

Justin Bird

ECA. Jeff, will with let am expectations spring also at reach say, first, given change and efforts, our in I disappointed at two, XXXX; I our me that: ECA. the meet schedule like of will confident Durgesh, the return I'm one, operations will ongoing commercial say,

XX% still been are. bit roughly of of in site has some cable and The Steel delivered. pulled XX% of has given that XX% The work cycle, strong is showcase just you to term. of piping to a our created to our of on view give has resources equipment peak and contractor retain full contractors an completed, in spring has has the and XX% roughly that XX the our returns received constraints work complete. in ability schedule, been with Baja, to labor picture, project color critical our issue labor complete. miles constructively loss a is labor during in main deliver construction over been this to me where as nearly the this craft partners equipment Let the change been project secure we safely with necessary a of unable opportunity the the little quality in XXXX I We meet and long the was of schedule. Big on swing, and

Durgesh Chopra

That clear. is very

Just the you sort Good your thinking to the we've Just backlash? plan. Texas. any over settlement or to thoughts given to to about hurricane? is system if here. a gears the shifting that other any settlement wondering, Whether potential from stakeholders risks see have there of just just Just in PUC there? resiliency in response I'm it's what seen media in

Jeffery Martin

just would settlement. agreement, is one, comments of couple here. make timing I I It's of an Yes. all-party in very, good. principle, this Number a which the think very

importance have storm response. company, our we're weather our of to I about we've but the jurisdictions resiliency. At just other think it's extreme Texas highlighting over a events. see XXX-year think these to industry, Oncore's we not history continued And types in as and recent pleased we're in with by think California continuing generally, and of I condition, got invest dealing Durgesh,

you in Oncor their through weather restoring May, and followed system. job went severe back very If of did great a some they

and a operational built forward-looking that on, allows that those response with marry is after system. this up year think continuing the commitment dollars has of SRP will us to the as start in harden I Oncor it's settlement excellence this to and been good principle, in opportunity as to to the a reputation So is, QX news storm crafted for program. get flow us to And

at right outcome So for it's I time Oncor. customers of the the think right the

Operator

will from come question Jefferies. Julien next Dumoulin-Smith Our from

Julien Dumoulin-Smith

how otherwise, you in continue if around with board, last light great SRP right? let little needs I and sort perhaps was I the any had or here -- mobile expanding that to the and/or session To ask with elaborate that on to make from legislative happened gen what's think contemplated SRP, guys this the ahead. you bit, can the So are come plans about ever evolving. here, on Texas. Obviously, legislative evolving an to ] expansion of move do in landscape SRP, right, So end, Any it year? the expectations comments [ of the progress this Beryl me in next across including here could about how session. a

Jeffery Martin

Let me do a things. couple of

the say, talk my I'll And views right in back my the story roughly up it start about utility career, But for been next I like have years, Texas. me front see steps in Allen to in I've XXXX. some an XX never on evolving growth pass going procedural. around seen we I'll SRP. business to and with Let start Julien, to

time, we capital March in an had a So back We to in were was know, made of opportunity served owner was way great a investment, investing there deploy as thought customers. XX% that that an XXXX. in better at you what bankrupt. that We been

evolve, bullish the I story will it on in a today a So And more certainly I've in management out has any and that you growth played been continues I to tell think opportunity point at we team are very than and investing I'm well. Texas. story, capital and

SRP about talk the Let's real quickly.

$X You that back case May recall outlined capital it of filed team billion the in nearly investments. that Oncor

executing the that's in record on now, right $XX recall that, campaign billion. which they're you'll And right that incremental comes around to

a I constructively, settlement on As move has of note do that the coming commission's updated you want don't reaching But run settlement in front to the to to caution we details we the and settlement, positive final as call, in Oncor understand, don't very weeks. would speak successful in an here the Julien, been we're settlement the of we to nor want pleased and the view all-party have settlement, feel it. we a about to want a preliminary to hope that principle review. we

of talked bit step little it and next maybe [ time for a the great ] procedural help And in payers if Texas. a kind you continue Allen, be it's think rate I would steps. for helpful to ability our forward about Julien to

E. Nye

regards of that announcing Yes, excited this parties, really we're sure. preliminary plus Julien, the some the next thank in really, getting us and Jeff. provide benefits our process PUC of want But Thanks, PUC in this customers. outcome of willingness agreement we filed I now our drafting to And is staff going we really meaningful definitive the morning. to with settlement the settlement, particular, work do judge with the principle with we're on a the SRP about the Jeff as our for to steps, think in settlement to said, to that we've that testimony. to announced supporting informed the

more We're it. going And to file that be by about talk can we August that details will the at and XX. public, time,

assume of PUC the and be Administrative step as case Next And to the consideration said, the reasonably from get back Hearings anything. I soon front would or Office of scheduled to possible. never Jeff commission to and have to get remanded for as in PUC try State that like as

begin we'll But assuming to be the and get a year XXXX. in that we this position late think expenditures investments SRP-related we in in making approval,

to development challenges very and believe us of both in think filing. positive over a our settlement our state us that that for allow this has the faced that given we the of original importantly, months, we we will all few And this customers. last accomplish identified some the benefits think is I our really

Jeffery Martin

in then thing think aggressively the of might forward Arthur the $XX state Friday, largest the invest continue be of I at Louisiana I the in and The billion is And in putting we my Louisiana to put this part I'll Abbott. Phase and to would investor meeting spending we've billion meeting purpose with Oncor. to to today, Julien, to addition Phase I only work is, week, on business looking Port question of Sempra's We're Arthur strong in of similar the Port of the commitment $XX into state X. at Texas. a reiterate for with project back part And I'll scale of circled the we're of later to Governor other be add, be your Governor

Texas about resilient I tell is you my would investment policy State around view, wheelhouse. year, of and right the Oncore's you that the infrastructure. for legislative that's session As And in next reliability favors think in public new personal Julien,

and with achieve legislative our think to or regulatory outcomes two, customers I and to continue So that that, support the Texas. we'll expect over in constructive last And directly to committed Julien, year stakeholders continue we're partnering Texas. seen to you've outcomes in North

Julien Dumoulin-Smith

Excellent. And here. quickly, SIP ECA on the just front. developments you Obviously, saw the

] then respect as for to on-budget the articulated execution here like I think construction think any here to or continuous conversation. that prospects your with confirm to And mantra [ Just cost. PA on-time, about you have concerns subsequently Phase previously X, doesn't reads and that here, that you've PA for

Jeffery Martin

there. questions X actually There's Yes.

I to your I think Port about the be And then let Port to really on me through Arthur think Arthur would helpful talk X. speak Phase excitement Justin, it to read first.

quickly, in market. fully impacted. this. we really your It's pool, Phase to best labor think a Julien, different answer wrapped craft Port EPC you LNG Arthur know business, is contract is a contractor EPC the Bechtel. it's the short not is which a So what It's different question is X the with

think not What where But the in I we Julien X. that about. good to through craft don't Phase things you California. Port was market helpful I walking Phase We if one on be that's in Arthur very Baja, we're feel about unique it I. ECA think concerned at So as mind to Justin, the would encountered you're of

Justin Bird

number announcements of her as exciting Julien, remarks, prepared Absolutely. had a in mentioned we've recently. Karen

Bechtel we to them Phase As we're efficiencies is roll from uninterrupted agreement price doing construction you with cost by work, Phase move and and while to this a targeting incremental excited project having X Bechtel. X. referenced, EPC executed fixed forward pre-FID

project Arthur Port similar likelihood progressing is well U.S. discussions might value of a commercial and there annum very out Secondly, offtake. equity the the the we Aramco LNG. with secure LNG is HOA of our HOA-type add XX% that of call. I per global under FTA positive perspective, million reasonable FID announced awaiting which, export, and now we more This the broadly, in low-cost the do expect of and for be third From position and of progress X and again, have volume -- And to non-FTA provide and already FERC hope quarter timing. not the our we're agreements we've will a execution decision in Saudi demand a for continued the remainder on are tonnes that demonstrates we months. an to our coming of permitting I permit impact permit export our received

-- And not plan as it FID, opportunities. Port can't be Sempra's X. our we're excited not not reminder, Port seeing is in represents positive reached and new growth about Julien, is since included significant more convention, X a Arthur with at Phase a has planning we what Arthur

Operator

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

Carly Davenport

I wanted couple to just on of a Texas. points on ask

the was Wanted in updates to So on think the help CapEx ERCOT transmission spend billion on think that about proposed we share on $XX large frame? Permian. to the I could ask a of that how appreciate help Could that referenced the us $XX there. billion by outlook of of as you growth you about execute that Oncor time

Jeffery Martin

Carly. you, Thank

then that would to be go and back. answer it helpful, Allen, question directly I think

on about overall to the broader I opportunity. growth talk Permian think in got some maybe then plan state. you've the first, additional the and But tackle color

E. Nye

and Jeff, Yes, Carly. you bet. Thanks, thanks,

to about tell the on rounds discussed And September. believe, talking the talk I'm really The Stanton plan in the goal building then would published of when about in only look -- There more maybe scope our next the system, questions. I of plan PUC's in of Loop on our is a issued, out potentially months, presently and be finalized Culberson is So is couple Friday. workshop. anticipate you we what's you the get the what happening I operations, The Permian our at Austin. Texas our maybe questions. be until I was The thing due, and issued Loop. being I and is right something answer plan growth when is of can that West now plant about often there'll overall

on on in participant points where any utilized XXXX be of substations out. that we scope heavy the analysis, operations of $XX that own anticipate coming the could under $XX depending those a we Given would out that a it process areas, in be of really plan would amount billion, billion that to we this our comes that end or

That's kind same XX,XXX our the probably specifics growth this down But about back, and categories in I the annually about about average. of I and second the you the overall? is this to quarter, Jeff, some generally is there of categories do very X best want Permian our continues I'm into break premise it earnings talk going know mentioned, try out every on national we've Just growth Jeff today. new on about time. I can release. report to on talked already And strong has seeing in quarter, going X% that still already twice and

and year. the interconnection, That quarter had second always category down then XX%, into last here, megawatts individually. -- and XXX new. time, up generation little that I new XX now, total, our load X% for up -- we which of of the requests about a LC&I. large quarter. those of transmission X.X%. requests Total XX That's are that over We as requests break Generation up or same about points I'm sorry, us, update XXX got last And The is and over XX%. retail that's mentioned for up LC&I I've the is XX% customers right is

approximately potential centers, That or but which rest of data from XX customers. XX load, from of is about of group would gigawatts XX% fairly type come it diverse represents of the the presently gigawatts potential

'XX we 'XX far weather X already Peak this is So over so Strong our there, incredibly transmission Culberson strong is POI, XX.X% I and the the over year. serve, peak. a is earlier. continues this the Delaware X.X% Stanton, growth peak large mentioned West over Texas, growth Basins. Far Culberson the customer 'XX from zone. X.X% transmission or up perspective. peak the up Texas West LC&I and Permian on loops that loops, year. Stanton up

approximately XXX we're remarks, of category, load you the a new fourth seeing XXXX, think the demand And gigawatts facing XXXX. system. by consider when gigawatts on they our mentioned significant up coming then opening indicating my The in but ERCOT I they're and what from through HB the XXXX predicted XXXX, study, peak of that we're the out forecast opportunities that I

the we And how service Permian are Basin our I our where facilities work, projects build XX% a expect of billion come that whatever that of around anticipate, started analysis, as XXXX, that load billion be $XX said, with, by study then I've in based and to said given that out would believe on of that And analysis could before, to we as portion we should we territory. $XX plan. our significant

already Jeff's in how QX. update CapEx. with comes that, probably going indicated we're that all obviously, an So to approach giving

But next our is that our plan, to come principal over so announced is growth in would our trackers. CapEx, I've said approximately these think August billion before, which at $X you part we've much of today, to just XX% need and XX% serve which X, look is or the approximately. SRP, also as order details significant large $XX.X the investment mentioned. to all again, I and we load if before through That's for which do That's before of customers in in billion, the settle XX that in approximately the I recoverable

mostly of plan. of that to need load is what revised spend meet XXX the ERCOT any to Permian That would we And gigawatts we before would what before forecast is XXXX. by out get

like call. But Board So provide invest what seeing to system, meet about our think our We and system. opportunities we're we'll to on excited very, on we're and work continue the looking needs. do trying to shareholders to we QX and analyze update throughout those we that are that. tremendous We're going very always our with forward there's our to

Jeffery Martin

And point is really industry, rate almost because associated that of And unheard it transmission. capital investment. on XX% other this is important out Allen that increases program secondly, serving is our you, of with And puts I that's downward infrastructure roughly which plan the XX% pressure Thank Carly, capital and in roughly mentioned, to is growth. Allen. that related of called

are where Texas. So just all place thing TAC, across in we consumers. where like transmission costs same in have California, The takes the socialized state

lot that's of plan. It's it's serving to of directly the increase. without really a robust consumers. is, pressure serving expected capital And good news a needs the to Texas it's growth the on and plan So continue affordability

Carly Davenport

follow-up. one timing you That's how about rate guess great. in for for thinking going in Maybe are sticking Texas just another case. back I for

things recent cases you on Texas updates, lot on. going in as think A of insurance. Just CapEx pieces about rate moving

your just get thoughts updated I'd to love So there.

Jeffery Martin

Yes, news anything good basis is rate wants which a we a increases This to on selective increase insurance are cost pieces. for case. some across common there towers, to moving or see to a we've one-off in The to these either think something And this one of is wildfire add related Allen state. if for some the the issue evaluate. continue got is example, come I'll them I file opportunity back of in is for

I anything, think made please, Alan's ahead. please team you'd add go Allen, to if like But hasn't decision a definitive on that.

E. Nye

are through a this we decision. required on Board. to with things XXXX. make back just summer the pressures you process have going until right continue But we of until -- us. now, if put annually change, And like mentioned briefly, are of to the we our with topics the come Jeff, in not not we'll don't back XXXX. We'll summer But might to that come our in Board we required Bet, evaluate things

Operator

Jeff is time to I call today. that Martin the we questions And like all the for have over closing would now to for turn remarks.

Jeffery Martin

and think Number investment call. for today's Texas. opportunity Yes, I'd know seeing audience by it's understand could, we're like to from listening several in recapping that to increased I conclude, for our important if highlights I one,

sector also think the some story think Texas. leading bullish of I to we want the it's good I on I growth growth of very be opportunities there. a in our our drivers did in to continue state, Allen and job outlining

our in aligned public strongly of opportunity California general continue with we're Scott that I continuing trending and the here three, we're number about are we Caroline two, year. with and to strong performance in make internal very of the this Trevor's because And financial our Number state. we're first earlier, the mandates with front policy investments, us think, the we Winn, the mentioned forecast. for half of but Drury pleased quite to Karen of cases feel ahead rate leadership positive have with planning the

we our reconfirming be are follow-ups financial growth an XXXX continues and to out if and combination, as have as X% have long-term this both call X%. to guidance In IR time ranges our great of for our team. XXXX any rate our And exciting today, in you commitments reach confidence to please or It from for company. well our questions

who forward new of and weeks. And come UBS reach to invite those and that in we Resiliency few to are note seeing schedule at out and of the time Citi I to we you next look interested, would for conferences you also you facility. also the visit Wildfire Climate many upcoming SDG&E's

strong time safety it operational our sense I way to This . be a concludes well think you'll find commitment at to of excellence. and very a spent our company's call. come and

Operator

you participation. for your Thank

may disconnect. now You

Sempra (SRE) 6 Aug 242024 Q2 Earnings call transcript