SRE - Earnings call transcript Q4 2024

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Operator

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

SDG&E; have Vice and our including of and Sempra Chief Financial Sedgwick, Peter Executive of Officer several Infrastructure; Senior and with Justin President Executive Chief of We today, Bird, Officer Chief Executive Officer; us of of Chief Clevenger, Executive Chief Officer; Oncor; Executive Nye, Controller management Allen Officer our Vice Jeff President, and Executive Chief Don team of Chairman Wall, Vice Financial Accounting team. Officer; and Winn, Caroline President Oncor; senior Chief management Karen members Martin, members other Officer

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

XX, you encourage our We also ended for to review XXXX. year XX-K the December

important future. any forward-looking any update that company these statements revise statements I'd and today, this XX, presentation note also in of in speak the contained it's of forward-looking assume February or obligation the like not mention only XXXX, does to that to to

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

Jeffery Martin

and road why took last for lay months for our to thank our get hear a new on a presenters and all a clear deliver over a results, as year input, report as and from group year, the content of today's we've we of to us and to community make call map growth. to our how reach several out Glen, the broader directly organized we materials that's time you, get Thank to part, With This research decisive full possible. decade of suggestions adjusted informative today's lot today. QX our as to financial joining added and you we've out company to In your executives. so investors ideas more to you presentation the list

I'll provide Karen remarks. on plans. details then new surrounding their And recent some agenda, respective make accomplishments start to of reviewing by XXXX the corporate each developments initiatives where our of their rejoin operational of and as with QX closing will businesses to Then the discuss in results segments, end, full year terms in three and financial move a our our our Afterwards, our at our In strategy. leaders capital business I'll an we'll overview X-year plan. you presentation well as and follow will and the capital

$X.XX, just through walk to Karen results. key financial range. midpoint is EPS behind below the Turning adjusted our drivers XXXX call, will in Later of delivered those We today's the our guidance of results. which

rate our assumptions to the final adjusted to We've rates, a updated in relating as as include guidance. series decision for O&M and XXXX to cases of These commodity Turning interest prices California changes. financial forecast well costs. account our

rate its assumption next do with our base Oncor XXXX has filing Another key guidance review. to in

is you strong know, As Texas economic and population enjoying growth.

state by XXXX new in the And that X.X of XXXX. XXXX, estimates point, most million the Some have residents, population largest July further project from over Texas the in Texas July any States to to added the to nation. United

state the expected well. to end New economy as nearly demand of to electricity as continues is to to the the double. And move the decade, expands business

this new opportunity need later there Oncor file demand. growth With the into financial significant go which is the comprehensive infrastructure, backdrop, this rate make file will critical the in necessary in than team elects creates to a if plan, but detail, more which we until company's That's base assumed looks our a for base it preparing to Oncor its as is to we support year state. review in this position expected to energy waiting rate review, XXXX. a why for have rather strengthen capital investments to investments believe Allen increase will

revising we're account, guidance to into EPS range XXXX factors to these $X.XX all our full year Taking $X.XX.

falls Our our right confident prior form set as the new business foundation our that revised for decisions the for we're That the below I'm making growth. will expectations future company. for guidance XXXX XXXX said, a

XXXX addition, to guidance. expect we which In $X.XX, strong This roughly growth because rate to we're important year from EPS future range XXXX updated represents our is our years. pull from of XXXX XX% announcing guidance $X.XX of the midpoint full into through a growth

remarkable addition projected earnings rate our supports EPS the In long-term referenced Texas, we're from in growth growth, to to X% Sempra year-over-year which growth to seeing X%. expected our raising

time Going we updated our capital forward, long-term estimated on growth we'll the update year-end announced calls our February same plans. in that at rate our

approved $X.XX for with a announce keeping to Sempra's we're also pleased competitive our that year company's provide XXth the to per the commitment Directors of share. Board with annualized consecutive in total increasing investors to Finally, return, dividend

across adjusted earnings In business of slide delivering made to results with accomplishments. also our where $XX XXXX of solid on turn by walk X-year while progress we recent I'll financial important Please through our next our lines, billion. roughly $X billion plan the three nearly capital XXXX, capital deploying

rate of of we the with billion. base ended other accomplishments, terms year utility In $XX

capital capital seeing are California, XXXX his plan of of to investing remarkable dedicated team plan strategy It's a over new a constructive Allen also taken regulated with in our driven is by half regulation. over announcing increase XXXX, customer important XX% the for we're to note core opportunities that to new our new record which billion $XX and growth. of at together capital of utilities with with represents plan prior the And Oncor, where XX%

the and SoCalGas received their with in you'll service. Oncor's public nearly investments plan, rate billion SDG&E reliability Texas, advance PUCT nature that Oncor's constructive new XXXX which good affordable of general $X stakeholders approved Meanwhile, on safety, critical in support system California, to and resiliency recall collaboratively customer a jurisdiction to policy. decision that and highlighting final work the ability key In cases,

accordance near-term Allen that growth begun in Oncor number has of with a will already significant the and opportunities discussing making momentarily. are investments there SRP, be

important execution what his will Infrastructure, well Allen fall billion Phase $XX important the at was LNG investments terms incremental addition, XXXX more providing notably to visibility to very are and projects, including ECA to within and XXXX Arthur an Port other we capital And year XXXX infrastructure in as new that a of to plan Sempra XXXX X advance large-scale plan be LNG his investments most investments XXXX finally, continue construction across estimated as to new clearly time that Phase In are frame. for added series expected of X. as outline to

the investments capital X% the next here. A last over couple grown decade. Utility slide. to turn at steadily have takeaways of Please approximately

the believe all demand. ramping reshoring supports computing, country a In centers, continue over to relative artificial we believe here. basis, the utilities build growing billion certainly of in in sector why notable early alone, markets create right up new quickly we're energy energy new for in XXXX With across of our infrastructure corporate why to XX% are in lot anticipated investment demand. On value that the $XXX expansion energy investment our we're shown coming record well year-over-year positioned intelligence However, increase coming cloud right the with and COVID, cycle seeing industry trend the in plan X-year favorably out super with is the part, and in that's a uptick capital sector. That's levels innings of of to a investment years. compares we data in economic of a the of to Sempra strategy

to the Please next turn slide.

investments regulation. businesses strategy we good large in making building with in Sempra's can advantages where earn centers Here, scale economic markets returns quality favorable core disciplined while on

helps investment, our contracted long-term energy our high-quality commodity, the it and and also cash the growth the from concentrating of flows us in the improves in of utilities environmental on have to regulated reducing to Sempra, sight turn produce with future investment-grade impact our in goal transmission line Please By of At risk. narrowed next we counterparties infrastructure credit slide. platform. investing chain recurring value and participation also assets while distribution with

particularly capital do Please growth business growth that, annual $XX strategy to long-term expanding, a for of our compound into X% estimates customers clear, XX% and record billion of the our new EPS be the expectations to we're our targets to significant shareholders. that benefit of plan the turn raising launching next To is too, To rate in our scale designed base to build slide. Note That's X%. Texas. of state growth future that why we're are corporate

you the business update where walk Allen slide to through will Oncor. a turn Please at next

E. Nye

approximately year a our record base you, $X.X and billion, XX%. new accomplishments. Thank several successful at grew a Oncor, by Jeff. had by key We rate We approximately headlined deployed

see We continue and to soon. Texas believe it the down slowing do not in miracle anytime

review mentioned, PUCT we the As this contemplating rate year. base comprehensive a with Jeff filing are

changed historic on approved As interest higher with rate you XXXX to rates insurance review and may certainly was recall, our test premiums Market based last inflationary year. few. have a base name in pressure conditions XXXX and a

To worst XXXX circle, after May history, by that built, new we performance. the and and T&D delivered. for about excellent I'll our next Response also our premise growth weather to demonstrating is count our in lines, was volumes power as Oncor X,XXX speak main extreme the had electricity company In soon response, as X% miles Oncor full approximately storm safely for increased in by are active transmission year, Oncor with Award operational come long-term growth rebuilt further EEI recognized to restoring possible. XX,XXX, takeaway an set second interconnection our XXXX, requests of seeing. commitment records the the Oncor's Emergency upgraded witnessed and Moving events storm or

the to turn next Please slide.

of As points increase primarily simultaneously to both in replenish of to interest an the which throughout Oncor's This our grew the investment leading territory. The interconnection large continues system connect is opportunities. XXXX. to because future and indicator highlighted emerge which metric interconnection service industries XX% active from C&I important new looking customers requests serves year, located of a diverse we've span helps requests, it multiple strong as existing customers, across queue represent of in

of customers, C&I us of Oncor large collateral of already a since is risk As and held in and I'd XXXX, protects load gigawatts, the incurred about under abandoned. signed transmission interconnection between split also of billion $X from ratepayers total an note of approximately even increase equaled possession collateral approximately industrial XX, that from XXX is and XXXX. commercial subsequently XXX% amount project to December seeking This XXx like for agreements, a the being increase generation XXXX. that costs over

increases one this and are intentions process, planning their probability of the figure agreements developing with serious indicates Executed ways of into of customers our high capital we projects. are the evaluate load these

confidence our taken Last for interconnection XX system. XXXX. have transmission Additionally, provided XX XX concrete agreements, To a today's high the we customers that signed confidence from is through interconnection high our increased alone. transmission peak through That towards with of our our load projection peak seeking XXXX combined projection we provide whole amount, by increase C&I agreement, approximately C&I projection number on an gigawatts who ERCOT loads already This the load customers put of have year, for a gigawatts. year, XX with based gigawatts. we gigawatts steps XXXX context, system who interconnection into customers could to potentially to have

an we're over C&I X-year are through XX% the Please capital X-year announced last we to business across XXXX residential the to in customers support turn interconnection while both customers billion, totaling increase $XX February. Oncor's plan investments the slide. to range, another expected region the and highly a exhibit state. next remaining premise of the announcing a from Today, growth growing annual destination XXXX for our growth number plan over large desired of record diverse X% to requests territory receive service continues strong as

territory vast. is Oncor's

continuing significant We're that and residential Texas growth I-XX West historical strong exceeds Metroplex, the York. our is in square one of any along corridor. the size state in is distribution service the across the national concentrated growth new as in of Our large to spread out the the but miles, territory area, average over New well XX,XXX not And DFW see growth space. roughly C&I premises as whole

of Delaware billion the billion Integration Examining billion $X kV projects Basin common Basin the our SRP, other from interconnection for the local $X generation for the the projects for for components the for and $X Permian and the plan and transmission Load $XX needs. of items: for plan, increases new customers brownfield $X arise $X following plan, C&I Plan. for billion large distribution agreements, capital capital billion Reliability XXX West billion and upgrades Texas with infrastructure executed nearly

of the benefits prospect needs ratepayers. capital plan cost by shared the growing is more XX% tend projects these allocated as substantial of that with excited than Texas be projects towards that of our the support presented transmission and We're state today energy to will with all

diversity of and the DCRF of at throughout will plan, Our also robust continue our and the XX% territory. comprise service pace growth demonstrating distribution recover investments, through breadth another capital a which we the

we've is recovered a critical that because electric billion, favorably our more safer, previously, state investments development across SRP, smarter, enable investments. which for accounts capital than to the These The of and help continued they also Texas. resilient more other highlighted $X are support grid

Notably, for transmission spend we major expected CapEx plan regulatory have approvals. only which all includes for obtained Oncor's $XX billion projects

in for further For billion no Reliability the $X Permian projects require included Basin that been Plan, approximately example, has approvals. brownfield

data seeking have those level, to executed centers, with customers like which regard us. agreement plan with interconnection includes transmission only the projects an at Additionally, for customers our

to turn the Please slide. next

course from yet requiring such projects could of meaningful Oncor that additional amount the among and transmission local and Plan kV to projects Reliability of import our result, not base data potential billion regulatory with XXXX include us, path outside reliability Expansion the are projects has SRP projects projects line our signed of that XXXX $XX Strategic POIs XXXX the a other have centers over sight As plan. updates These as an agreements to XXX of of Plan, things. approvals, ERCOT's Basin to arising Plan, Basin clear in that the to XXXX, Permian STEP, Transmission Permian or additional in

anticipate made and Basin are import phase. plan back targeted for voltage Permian quarter level reliability evaluating the the this pathways as path year that the second part We Regarding further import and plan, PUCT of the the determination of be to occur on the and in the still will and optimal the ERCOT dates anticipate of provide beyond, potential X-year clarity current transmission we With need in-service timing extending our these additional of of investments next XXXX into the end investment. in decade. to

support We one-off are to is excited grid to needed a understand resiliency, and have not begun we this investments event.

are XXX a As ERCOT to a very provide and cyber with modern situational superior current last the that has similar, solution number the statewide to ERCOT XXXX SRP EHV out continue kV but the around and month, physical hardening, EHV laid anticipate filing traditional super a solution solution grid an in a indicated our investments released important measures such, development system. EHV our kV of cost highway. we security would vision In to benefits. and update for awareness likely step the between of an of ERCOT's be XXX additional

We expect half the Under from this in needed more guidance the either amount of Oncor the of significant expects transmission. first to PUCT build solution, a year.

from we today miracle plan. to current billion $XX believe continues soon. If anytime these XXXX. X-year the in requiring continue stopping out, doesn't billion Many words, we further investment When In next be estimate $XX other to projects decade. our well look am continue, of we past XXXX the into Texas trends system the to discussing current appear I growth growth our

potentially on to how plan of higher current I'll to spending, prepared capital this and we've speak prepare levels for we support As growth. our execute

slide. Please turn to next the

For secure years now, future deliberate Oncor our help has growth been potential. taking to steps

bring we supplier efficiently Over sets pool modern while grow our our to base deploying the abilities skill so new they to to and past our materials help available inventory also X years, can and talent we've technologies needed. our when workforce are that knowledge, headcount our in prudence increased increasing significantly expanded stock where are exercising and ensure business. and We've

As we a focus continued which also we resources, enhance our safety excellence. achieving improved our testament to is are operational metrics, on

and Please hand the I'll Karen. call slide, over to next the turn to

Karen Sedgwick

an I'll want we time by provide Sempra on to and to as how Thank the on Allen. since exposure update XXXX limits plan. risk, update well. received X-year a an providing start of accomplishments on you, Then outreach I that wildfire from California's community capital the state lot to reserve investment investor

with utilities. a at number developments accomplishments, of Starting XXXX California material we our saw

rate received we in foremost, and a cases. final decision general our First

to final focus provide and decision, executing customers with energy. able reliable efforts approved the the we're to plan safe our and continuing now With on

California's standard prevention employee that noteworthy be speaking accomplishment in is safety West certification. the offered prestigious that mention nation's once practices, is state quite of as occupational And the XXth first rent the also of. recognized regulatory safety It reliability the the reserved awarded requirements. again engagement utility year, consecutive was by is the we're to safety, safety with of and demonstrate injury SDG&E for SDG&E exceed electric designation health, best for VPP became for and exemplary measures another organizations also award Cal/OSHA proud This safety highest recognition and customer to the largest that division

which see rates. customer to And projecting report downward in energy growth should affordability XXXX the favorable putting have by to California Energy from annual growing electricity consumption Commission XXXX, on statewide Operationally, we continue X.X% impacts a demand. recently, issued through pressure

eligible not requested appeal this for reasonable adder. submitted XX with rehearing. believes FERC including California SDG&E finding a has a and December, is basis already a In adder. FERC, decision filing In the an its there issued TOX basis is SDG&E ISO to October, point that SDG&E order ISO

the decision CPUC natural of to or the gas Canyon the of a XX% overall authorizing Aliso site's operate final billion SoCalGas, issued cubic feet representing at the state's XX.X capacity, storage approximately facility subject XX% operations continues California CPUC storage be future this energy to play grid. we action will to and confirms a in contributing believe natural Ongoing affordable capacity. to gas review, the valuable but role stable At

gas Please plan bolster of continuing new XXXX. energy our management investing in the compressor modernization We're over stations through building meter through also safety lines our include turn transmission wildfire initiatives. FERC smart replacement mitigation, programs. Major and slide. to totals to Honor areas and $XX safety Moreno capital investment next under Rancho the and of Sempra storage California's authority, the billion and integrity pipeline

As the into we safety, decade, further services service. demand energy development support we improve see state. be the deliver Moreover, our look to innovation and we economic next opportunities reliability customer and to through modernization focused how will and efforts additional investments grid affordable throughout growing needed on

wildfire areas. international identified in across position Please mature a as scored the recently advanced hardening SDG&E track a based Moreover, investments most our investments, have in risk our further Operationally, wildfire track throughout next turn mitigation risk making California mitigation program Sempra to has the weather-sensitive wildfire record been effectively the the energy. that year. modeling leader these as instrumental safe utilities. reliable and market all technologies delivering of in system risk on also slide. innovative SDG&E's mitigating and which advanced most

stability million. million utilities. investor-owned the financial When share would XXXX, fund company's science, With initially thought contributed established an SDG&E $XXX was $XX questions and be a established under contributed just data in state we XXXX roughly AB about perspective. programs mitigation then, In has here annually. commonly it and the under our to the in wildfire of formed, to Since support field I state, SDG&E fund the leadership helpful position wildfire

$XX today, billion represent of total roughly X% SDG&E's contributions the As fund. of

due size California and the has three lower its profile predominates to materially desert-like to robust of of SDG&E SDG&E's small territory, of relatively service reflect lower risk of part considerations: SDG&E topography that this wildfire mitigate contributions level the level the risk. prior investments made Southern

a encountered region. support cases, that local cost successfully during mitigation strengthen XX wildfire events to SDG&E better that communities. the company was not as worse data in system standing is safely. Also, that as event Los SDG&E and managed and new The continues newly out developed investments some it's science Angeles years. any experienced company came and monitoring and important This well still. substantially proactively significance the the its similar SDG&E note flag utility programs with played weather over in wildfire for technology Remember, SDG&E safely, through protection recent where too, capabilities in than red of the for hasn't what conditions its had to

on Justin Please slide, the where update turn to will an Infrastructure. Sempra next provide

Justin Bird

the Geopolitical are the the dual-basin making the active continue LNG and when Phase Sempra we'll infrastructure Port and the deliver to the our running, X, and and and construction development proposition platform, Arthur markets. Phase Port our events Port Arthur substantial basins Phase and opportunity. market X X. dispatch and strengthen gas ECA LNG Permian highlight into strategy of value up Karen. on And through energy we're both to terminals of making We're and X LNG progress natural our Thanks, Arthur LNG Haynesville most LNG Atlantic and the of ability of ECA Pacific Phase the from have into LNG

I CEO, an can for the time Sempra as Infrastructure. you this exciting tell is And

and distributable results cash end flow in financial to delivered at strong of continue XXXX high our range generate we owners. to First, the our

X Second, on XXXX. Phase to spring LNG we and time in construction to of expect and continues ECA be on budget the on progress,

supply also reached our on natural COD We supporting ECA gas into GRO LNG. pipeline

X budget. Arthur on our Phase and time LNG pipeline Bechtel Port remain with Third, on our contractor as EPC on associated construction and

equity XX% the already with per LNG advanced development million an have development. Arthur Port Phase is a Aramco of of X annum HOA offtake tonnes interest. We Lastly, and that X includes in

EPC FID capacity With a for announce over X. the in pleased interest mind, targeting for have of MTPA to and well Phase with rest the Bechtel, fixed X have we we're we're We XXXX. agreement price in this of

the is Cameron, continue team to fourth of now production, year operational Please development turn optimize to continues full focus we on the At its operations in and Infrastructure, which the to in disciplined a Sempra next with reliability excellence. and At rate plant XXXX. XX% construction slide. reaching its safety,

loaded in has and XXX cargoes XXXX. Cameron May XXX XXXX, since production cargoes During began now reached

At piping, major Port tank equipment trains, workers marine dredging have X, building and framework are out Phase berth Arthur construction, LNG and setting. aboveground steel site, for the commenced the we on X,XXX have underground

to Train commercial X for XXXX, operations XXXX Train continue target in and X We and respectively.

LNG insulation, ECA work and reached pre-commissioning including we're project X, on XX% At Phase electrical completion, procurement and engineering, the construction now Current excited instrumentation that pipe and progress. testing is has focused activities.

Please turn to the next slide.

Turning to Sempra estimate $X Infrastructure's through We updated capital billion plan. spending XXXX.

transmission and great owners remaining, our As that infrastructure. layer capacity. convention, life And Sempra's million pipeline Sempra focused a reached construction window years excess projects ability tons proportionate our Overall, in to projects XX projects contract only our confidence a of capital of delivering represent as as include have way of take reminder, our higher electric LNG we to investments advantage per flows us Infrastructure's in future. In supporting cash per to the continue such Cimarrón share well meantime, to our recurring our assets the projected as which narrowly capacity value FID. clear, assets with renewable the of with have to in plan return annum gives foreseeable XX of average on in a be is shorter

benefit completed scale from construction will Phase of development the and benefit slide. Arthur expansion common into continuous of X. advantages X. be lower SI expected to turn In to X Furthermore, The brownfield combination, will LNG Phase next this of our franchise. increases value translates the Phase in we from is lower facilities that the a Please leadership. Phase under Bechtel's The cost expansion and believe Port risk X

approximately they'd also participate equity. we offtake, where half XX% mentioned, Aramco announced the an As HOA project for I in with the of of

earnings are over remaining meet to stakeholders Additionally, our customers' per to ability well recent including of Many and are we in have for offtake eager in their for confident X needs. they succeed, project annum of as mentioned our the ConocoPhillips, this million call. tons interest our

announce the for demand, project receive discussions our recent decision commercial agreements, Given definitive the year, of continued excited financing, final momentum we're and commercial permits non-FTA we're a among pending expectation other of additional obtaining the development this investment targeting to permit, factors. later DOE to and securing execution

to next turn slide. the Please

The LNG expansion Over which total is XX million on up exports the significantly scale will could, these per the over time, our increasingly represent ultimate believe business. our through increasing annum stakes scope dual-basin robust which and strategy long of the depend timing will tons projects market focused LNG ownership XXXX. our of while and remain on demand, run, strategy, in to we in

to believe LNG and last Sempra's provide the going activity through we tons has that annum over up Based to franchise forecasts XX we our compelling grown And per context, For another forward, X% XXX growth on demand demand shareholders. annum these value to years. million recent estimate capital infrastructure by grow continues XXXX. global industry, the could per markets in LNG infrastructure

slide through to Karen where Now financial update. the the turn walk please Sempra will next

Karen Sedgwick

$X.XX our year per adjusted or reported $X.XX This On share. $X.XXX billion billion GAAP share. XXXX to billion $X.XX earnings $X.XX full previous or billion basis, XXXX XXXX or $X.XX earnings per Thanks, XXXX share. were This GAAP $X.XX per to earnings $X.XX fourth This of quarter compares quarter per earnings million Justin. GAAP Earlier were $X.XX earnings fourth quarter year were compares of per XXXX or share. share. This quarter adjusted earnings or or today, fourth or $X.XXX basis, or GAAP of $X.XX our million $XXX an adjusted compares XXXX $XXX On Full earnings earnings XXXX of million of $XXX an $X.XXX full per compares year Sempra fourth $XXX share. XXXX to million per share. per to share.

margin, $XXX had full higher we the year summarized XXXX adjusted AFUDC higher turn offset slide. the higher margin million including flow-through higher partially repair and net by from equity interest same electric higher million CPUC-based Please to California, as benefits, at higher in tax follows: expense. operating earnings Sempra from can transmission and year gas period $XX compared primarily to tax from the items, benefits income be primarily next last Variances

At to Turning tariffs to equity operating capital consumption, higher of invested in partially partially primarily is higher the income cumulative million net due lower weather. optimization earnings, Texas. of primarily by of interest and net primarily from new net higher million to offset supply impact decrease to mild we tax Sempra At lower higher XXXX, and from benefits. higher interest transportation lower the into effect and business, going We capitalized benefits. and customer expense volumes lower expenses expense due for $XXX lower asset primarily $XX and million renewables million $XX earnings, had interest including tax and growth, due lower Parent, $XX offset and Sempra Sempra income Infrastructure, had higher interest the by

slide. the to turn Please next

Now the remain billion over utilities. years. the of tracker continues the over of largely to growth impact Sempra of our T&D diminish on our planned with investments now by allocated regulatory XX% of that, prior simply recoverable focused Driven XX% year investment lag. is X through investment to new at over top efficient XX% In overwhelmingly our our increase improve growth record the Texas, Texas, capital And represents remarkable. turn construct to $XX regulatory mechanisms, regulated which with being the our next let's will plan. Capital plan an infrastructure on

energy. Sempra At final SoCalGas California, mission daily the executing focused are decision, of delivering safe GRC and with the and SDG&E reliable on

commodity dollar-denominated that on projects. risk-adjusted counterparty great infrastructure returns and Sempra long-term Infrastructure by a attractive achieve mitigate As contracts business opportunity to underpinned long-duration risk. our a infrastructure is And provides platform reminder, energy our U.S.

supports to long-term you the earnings each discussed With consistent there's for new a pipeline we've opportunities three our can which deploy power of platforms. of see tailwinds increased capital, today,

about excitement a process as is lot financing disciplined committed we our growth efficiently our as Although to a growth remain of capital and opportunities, allocation there possible.

to the Please turn next slide.

the capital is from by to of growth XX% annual rate over key that One total compounded to takeaways our which plan of billion to base we're expand a $XX billion $XX projecting amounts rate. XXXX XXXX,

next cover slide to to the Please turn financing plan. our

a have morning, focus on Texas. very the plan throughout capital highlighted we've As with investment key focused opportunities a we primary large on

issuances, majority cash equity operations, capital our investments to investments. capital of investable flows the from shareholders. and recurring for Our with practice, sources past funds thoughtful calls for of a provide planned and and cash capital mix uses returns debt Consistent

late $X.X at common end of billion You last settled that approximately sold in that will of recall XXXX, the we stock year.

November and The $XXX back and under for credit established program is also in program our the of sold ATM with support million last ratings billion plan in the of the approximately fourth equity front today quarter. end issuances the $X in provide strong to year equity share We the repurchases on intended in presented end. our plan

than requires which faster later, grown As Jeff the in level higher sector, the of earnings business. a our will share reinvestment we've historically

both our and have dividend a strategy balance We to in remained sheet. consistent our commitment maintaining strong

our areas things. investors a Please a more these slide, regulated Sempra structure sales of to sell-downs come Partners, we for Infrastructure from to opportunities other variety manner on which project venture the in into strategy. as our fulsome equity, to further a demonstrated the have we're to from as more the fund recycling, opportunities the traditional going arrangements, Infrastructure evaluate In of could as Sempra financing within plan business most capital execute the view view efficient response improving robust such provide detail is in turn significant time. we'll look among to capital of in addition asset past, to our toward requests joint future, this In remain focused is important anticipate financing we or continuing shareholders the most What's provides possible. value with we our over at mix prior and on for slide. On slide plans, Sempra's next view, capital

committed raises. and now our year Finally, strategy XXth return of consecutive our our are remain to of we in also dividend shareholder total part as dividend growing

up the slide. XXXX our turn XXXX my let To Please wrap remarks, to next guidance. me discuss and

As $X.XX Jeff $X.XX. noted XXXX EPS earlier, range to revising guidance we're our to

which is while contemplates for range rate base impacts this filings case revised Oncor their a review Our tracker submitting ongoing. year, the

the in is important decision due to point with right an at the results that is is financial not fully there While since Oncor to year a business financial believe in this It's lag. cycle. it's of the growth associated earnings term reflected we unprecedented Oncor regulatory intermediate also note the higher an important impact inflection near-term headwind growth filing,

larger Texas will Sempra's a increased of time realize and continue and important over know be we to However, this benefits of mix. contributor that growth earnings

XX California basis to review, to At points FERC adder ISO Oncor negatively are GRC return we're transmission-related considerations in final there filing well impacting Beyond basis equity point XXXX base on the impacted decision, CCM other XX our decrease of rate implementation determined the its the impacts guidance. Sempra's ROE. as Sempra by order the adverse the related CPUC the removing as of California, by a

prices. XXXX are Infrastructure. to Sempra Phase lower transportation natural in of optimization be delay variables partially of assumptions to until the for COD into by guidance recent gas LNG X The spring the Moving ECA This capacity. will offset main factoring the two and changes

and higher rate weighting mix expense capital towards security XXXX investments the as at and hybrid capital of structure we've Finally, Parent issuances. more a higher interest Other, higher assumed result in

Please turn slide. the next to

of Oncor's as and and including XXXX, range operations to from under reflecting ECA to billion from reach financing This benefits based programs. impacts to over the Wind of XXX EPS more outstanding, in we results increased commercial Looking start minor a announcing projected shares SRP. we're are earnings $X.XX sales equity projected on Cimarrón X midpoint $X.X LNG to expected our investments, million Phase see $X.XX

With long performance with raising reiterate, we're in growth term. To extremely EPS financial growth rate and to to projected the XXXX, our visibility in about improved particularly excited solid medium presented and we new to today, we remain X% the X%. plan future, long-term capital delivered our strong

closing Jeff Please finish next will where his remarks. the with turn to slide,

Jeffery Martin

Karen. Thank you,

summarize from call. to the takeaways Next, today's I'd like key briefly

growing why and Over long earnings consistently EPS others public have X sector the roughly successful I've That's growth growth. U.S. last faster believed GDP of loosely in our than decades, companies in to been GDP. that correlated XX% is

earnings per you in those grown and at utility earnings. share the has share the those Sempra same U.S. year Looking in successful utility see the has faster X-, this And periods, range this sector growing of GDP earnings X% last to GDP been play its over X%. same sector's adjusted over per XX- the In than U.S. adjusted periods, and time both can contrast, time time out on average X%. over XX-plus has at horizons. slide, grown

and one, too sector that the utility number of X% we're growth in growth Note have also, of to and short companies capital of of our capital while and accomplish culture high a one and announced two, derisking also over efficient corporate term. a few of sourcing X%, advancing level the number able forecast long this and disciplined business to been both, delivered by emphasizing long-term the strategy, EPS clear a of who simplifying allocation the We've that same performance. importance

financial continue view and have of growth, bullish we're markets we to be future the a in To strong with over the term. long right the right Sempra's clear, believe posting we strategy results

total In Please next the to turn slide. of we XX%. return XXXX, delivered a

on slide, compares solid return of sector. shown has favorably utility this also XX%, which As a total years the Sempra the last over X to delivered

to two the slide. key Please next turn here. There takeaways are

exposure there investments business specifically U.S. and higher to within earnings Sempra's utilities. a targeting we're changing is regulated mix First, composition, where

our X-year a by Texas plan. of of half billion portfolio Sempra account in our driven $XX to is record Second, capital over opportunities investment for Texas, projected platform remarkable

the and today that of to concrete plan earnings that total of Oncor's the significant the $XX billion X/X strategy the Texas I Please next end growth strength market. Earlier, the investments That our reviewed firmly decade. around the includes plan, sight recent setting to an of from taking Allen Texas Given return. aspirational outside new the by clear our set Sempra's goal steps of fall turn we line slide. are of to of outlined producing

been That's strong that can our a from compete total favorably over successful to you slide, and this On that the returns Sempra market why, posting the broader horizon. sector in see well, has comes flow investing utility in longer good compounding blueprint in creation the economic value over key returns running them positions time. wisely allocating building periods businesses, excess long and long-term of for leadership markets, perspective, cash time from

I'll At line open point, a this to and take questions. moment the up pause, we'll your to take

Glen Donovan

you Thank call. for joining today's

I few assumptions and a models and this causing the Q&A, we to up passed new frustration. opening remarks. lot to changes impacts also are financial make supplemental of out morning Before I want lot information the in a your know of a

So let start me by apologizing. off

a We have most lowered due months. XXXX series in of our the key changes planning of in last issues, couple our guidance assumptions to notably in

front have the from back the however, on late the California planning investments we growth came to recovery of below of the plan. December Sempra opportunities, the half making GRC do end in the our assumptions, we're the plan support First, particularly in, get in We revenues. GRC-based outside stronger from as California

and have early later by spring. earnings finally, for base That Oncor adder reset FERC one, is decision from XX, FERC in on the forecast rate we this Second, CAISO and to return on year. made expected we be go And assets that December team the review to on based Oncor important our puts in back the it's decision pressure their right an its on the this structure, transmission downward this a California. think decision for removed cost our will for

Now turning to guidance.

repeat earnings power the rate, growth We have opportunity chose long to not because fundamentally have X% like to X% a but actuals. X% to our have off the could the over We rate XXXX of a business that. of expectation raised this term. to X% continue to I'd growth maintained we of we

at period earnings over time. X%, appropriately guidance. We have But higher difference produce this expect range environment, our growth this calls. discussed a that long-term of forecast growth we've we view and represents sustained believe Sempra, is we in long-term our growth previous In on to X% the raised of growth to

plan. now to X-year current our Turning

Texas, in period. is X% part We per mix doubling significantly and our valued at from over increase we with planned more a roughly as the base grow expect earnings to of earnings higher, share expect Oncor's the or the which market earnings to rate overall contribution

plan financial tell financial prepared flows. finance growth growth. long-term cost have That's producing at we through underway is our cash to way company operating above well me Improved our let structure Karen improve talked out, returns. various as today. in Number returns improve will our close talked I why to and initiatives and our our we've one, Before the why we're remarks, results her you most in what about important confident about

XXXX important two, is team his is incremental be within as capital that add another XXXX. to here, between to the and capital to outlined, their Allen It's billion $XX period Number expects clear expected plan plan. that

X this forward not to project move plan, certainly expect later Third, Port but Arthur is Phase year. in included that the we

recall very the a reached they only final in projects Infrastructure plan Sempra practice putting investment a of You'll have after we have conservative decision. at

utility as our related are there regulatory finally, planned and as improvements four, segments, other well And opportunities structure ROEs to in authorized other capital applicable number to the construct.

X% produce and our In the share the in is growth for it to key to expect through guidance Texas. but conclusion, per come takeaway we Conservatively, produce from higher XXXX, future. will expect earnings or lowered have XXXX, stronger we we disproportionately Sempra

open stop call, operator and take glad I'll we'd be so the can your point at the questions. this to

Operator

remarks. This prepared the concludes

now open our Pourreza line Guggenheim questions. will Instructions] from question first And your Shar the take [Operator from We will to Partners. come

Shahriar Pourreza

reconcile rebase. there. 'XX X want just just starting pieces on So There's the to maybe off I

the interest the... And base assumed 'XX versus higher California? reverse First, rate just downward that base years? on in at growth is investment revision with does the Or rate question, to cost SIP, I that gas then in filing? lower the what plan sensitivity Texas, was in remains there. plan for future third, similarly the it's is and 'XX moved And mean the it's potential then loaded embedding natural a but partially

Jeffery Martin

there's set. the and our Oncor question yes, The in guidance revised not decision answer. the looking third bring review. prior base are the think expectation right Look, we've below that yes, for earlier particularly question disclosed to making That have the rate falls no I business, your to we answers Shar, said, a for being we're

the go our XXXX helpful be if through to might can Karen, guidance. thought Slide XX, to if bit return want through be key to see helpful detail, is to more you I might a drivers Karen to What walk it little

Karen Sedgwick

Jeff. Thanks, Sure.

week, I So the our each platform. finished we plan finalized a Board last think items in there's with just -- business and key few X-year

rather plan at that one XXXX. until Jeff base assumes rate comprehensive file talked Oncor the our Sempra this does review that about than first So Texas, waiting

filings reflect and impacts expense higher this their the revenue during insurance things, also other but the seeing. interest requirements to it O&M, the they're tracker that provides proceeding, the update Among costs opportunity to their course of

growth With makes right the it's this strength. for growth. to while think more And future do we periodic the thing in is the financial cases sense file Texas, think to for company's a ensure rate XXXX, it we to unprecedented negative Texas

Turning California. to

financial it's our In in forecast important include on our decision were CPUC authorized assumptions final the in to Also, the have included We lowered return came prior note adjusted GRC, plan. that below the that That's which previous the XX to the forecast to CAISO pressure downward basis about. in by addition XXXX. for points for adder put the combination, that spoke Jeff XX-point three equity on these FERC basis on Sempra our items point California.

at in schedule LNG SI of announced a expected to operations year, for And we spring XXXX. course, then, change at of commercial last the ECA

assumptions interest in expense seeing the capital growth parent, higher forecast. we're year's at finally, as prior from in changes over interest rates related And updated as well to plan our

our Given growth. it important our for us base guidance to XXXX new all for these and reset a impacts, create expected was

Jeffery Martin

down the period. Yes. Thank gas third across obviously, gone has plan And your assumption to you, our natural Karen. question, Shar, price

Shahriar Pourreza

come for you the now Port incremental it. view, SAP just Arthur Texas forward on the more lower current the trajectory? to you to Got [ going base, then lastly, on 'XX. material the asking plan? imply the and are guess current incremental FID with And longer around is X% Can trajectory, into beyond an that especially it. I highlighting does items coming breach term what where I'm and that the Jeff, the into And the new not X% in ] Got in to plan, side shifting, Arthur off these track. range X% you're in Port service the upside the X

Jeffery Martin

across the long higher thank plan X%. always at clarified over our at tend we you remarks in I expect the just remember, In to plan or Shar, made we that CAGR to forecast talked guide to about, exceed this plan be fully to Yes, I EPS But X% X% to earlier period. fully as for the It a expect XXXX in that so we we've periods XXXX that. on call, that time happens supplemental period, as that of question.

Operator

Our Campanella next question Barclays. will come from Nick from

Nicholas Campanella

back -- you I more a rate you I in and cut that base But And in X% and your a So XX% CAGR EPS touch lag to get end wanted to in you finance capital XXXX. understand you just I counterintuitive. just expectations said look the But range can there's roughly have rate to the until math 'XX. something on can X% this have I plan, back to that even you plan, were Texas. X% there. raising seems increase within of it back that the you're X%, of high lot CAGR to a about get base for you you're with somewhat really the there. could When of X% know the wrong imply X% the off using doesn't or original in --

But shareholders to capital invest much take is this just kind it prudent pain much of this to amount for upfront why that capital? of and for

Jeffery Martin

question. the you, for Thank Yes. Nick,

we You X% gives you maintained on is couple into growth of growth to could long X%. hit clarify and above about points at environment for X% some that the have thinking all about in is to that we think EPS long-term that changed XXXX sustained range. fundamentally how rate we EPS guided levels a a there we've actuals, have What's term X% off we're higher we growth the sense did of the for this for future. utilities opportunity And

not we're X% will plan we the In about, to talking produce that X%.

X% share point, and do And higher financial of in the team it a impacted. XXXX opportunity why to we've earnings we per to to X% and again. back end management earnings for our We've company XXXX period. And the range But a to produce guiding We long grind view that's front and than fundamental or been XXXX have that done expectations term, has there's higher. as to XXXX higher we're historically. do got the to above through come no there's your in expect to lot our of the a to produce work question that exceed results

bullish, our upsides why give And if me. plan to billion to me that's I'm view let and planned of I a think are. an you important This you'll to X Oncor one, so example Number the a very And of investment, go allow one about plan. shown be This is our has it's XX. Oncor. of back expectations Nick. of on what $XX conservative covers only areas Slide clear base generally is

an capital SRP. capital inside are investments that requests investments all C&I interconnection already approved hand Number two, existing First, where subject are to regulatory approvals to in or needed agreement. satisfy other transmission and large

you can planning to management going And see billion, Nick important. XXXX capital it that XXXX, on investments totaling the waterfall to if that's run to to And about that really But expects Within layer, you. $XX that's reflected again, horizon that XX. their and you of ballpark earned make just through XXXX, same $XXX of earnings additional Oncor from that upside million XXXX, for talking of that we're Slide and to capital. their equity existing ROE million $XXX coming I'm

So incremental years seven roll-forward system by Nick, to those one, allow the about expected team. to talk are some that There for are of of them. Number the me updates resiliency what Oncor management calendar are and opportunities 'XX 'XX. plan

You'll study, approvals reliability -- Permian arising reliability Permian where SRP investments XXXX roughly. that similarly, Transmission the awaiting Basin Basin two, approval import are they the finishes load by plan the today today. regulatory regulatory local study. Number projects required Delaware transmission pending. are Basin integration pathways within also in in plan recall And from the

three more. are There

doubled are strategic expected $XX has When and transmission does rate to projects base finally, transmission of the New XXXX. billion $XX to planning additional investments expected. expansion in interconnection again and who over within $XX sign of it billion the by we distribution that new to majority XXXX, number billion, six, today other in for and now was to have or expected that expect billion the double customers maintenance plan acquired billion. that are upgrades. $XX Oncor not additional $XX we ERCOT's than and identified more are And agreements; period; transmission the

the that's When electrical opportunities you I base outlined, through helpful. hope invest to in network together Oncor plan XXXX. capital with approximately I additional take $XX the billion expects

Nicholas Campanella

then going lot consider Can Thanks you for there's plan. of would talked just sources and about in equity like back remarks, that the to needs. Karen, to the information. a then plan, you block? the stock And guess front in clarify, and in if does moving uses, I of the prepared equities of be the heard that equity a Is equity buying -- in term? seems of repurchasing it the right And where is part footnote two you same you're the stand And kind balance the here? of in you just why strategy issuing X-year the sheet and near I the kind

Jeffery Martin

Karen, add But you XX, Nick, comment to I Nick. refer to Yes. address can to if I'll want that. you would my And anything Slide comment. you

what of years. similar substantially couple basis we've are last needs equity Our outlined the over on to a net

efficient always is I'd I focus flow. of source would most financing cash on operating the -- is the three our things

generated a will can have priority a to lower cost financing so our number place the We of part core flows. plan. That and our be returns and we maximize initiatives different in cash internally of improve

as we'll And want well Second, it. hybrids to equity to XX% as to issue new that treatment. debt your speak specifically point, to I new look get

financing, financing program program established additional at plan an recall we that use equity We to provide Sempra of sales to other and ATM asset Infrastructure. You'll last including quarter, flexibility. sources

down and process form an selling our of the Street expected asset months underway I SI quarters. that's at the to assets, and focused look as evaluation in update well on structure the the can the That referenced. in coming capital We've as sales got something in on Mexican further we'll that come

the above Each be level, plan. used $X $X that's reflected to fund issue Slide of net billion and we on billion capital to sources asset Assuming these equity, XX. will billion to officially at or expect sales our in $X

Operator

next our Steve come Research. from question Fleishman from will And Wolfe

Steven Fleishman

at to some give guess, the debt of and could view? show And where agencies you a is affects if you of I just the 'XX? FFO rating us had to So how just that the, their plan new and sense 'XX chance

Jeffery Martin

Sure.

with the is something of coordinate rating obviously is and things closely them our we we'll always be uses capital in later expected we This sources Steve, our spring. this the One meeting agencies. with plan do, and

update, can you perhaps Karen, at on current we're Steve, just terms But discussions. where in of

Karen Sedgwick

Sure.

agencies. I the So debt metrics for their for are will below FFO main 'XX, to we for say

at our closer equity that for saw about And in those and to plan. sources us with in constant are that, get they're had our discussions We them financial debt. that uses, there. course, looking to that's metrics to you in FFO we is why And some of

Jeffery Martin

I at thing XXXX of the been that offering The December. end add, crystallized forwards would on the -- we is Steve, we in other that's had recently helpful

$X also equity billion in off fourth hybrids last quarter. ATM We the of obviously, year some got was about also And adding helpful.

Steven Fleishman

are debt Okay. to the FFO disclose you But going to the what was or in plan?

Jeffery Martin

And at that? add XX% target anything we Karen to Glen, else obviously Well, S&P. or you

Justin Bird

meet is plan exceed those metrics. Yes. and to Obviously, our

now. the you And the through what rating discussions us that we're be Jeff that going there. right took are the gets having those agencies with So is equity to

Jeffery Martin

for I we'll meet Steve, the plan metrics our that we're So, XXXX. think comfortable in

Steven Fleishman

Okay.

Okay. are toward any us even give rate be like on you the those the just And get wrong what do do they're earned the cut X%, but earning? I but returns flavor like still But can kind on in earned rough you and allowed ROEs when? in there. of -- you And to could like X% Texas, looks like how up just then have you 'XX, by time relief

Jeffery Martin

Thank the you for Yes. question.

year. we've earned impacts correctly. regulatory and our lag two ROE. for got we Steve, different have because filed we both For at it noting transmission a that authorized X.X% ROE We've trackers, you're -- that our each business you that got distribution audience, recall

earned second have Steve, that they remember, year. The thing impacts backwards ROE, test a

they're So right thing their important X-year now, actually that across in they of some XXXX be X% X%. between will X%. is they're and structure. the operating most above The cycle, plan, off point generally cost planning At

the to roll-forward and to do Plus up 'XX are structure. things and relative our importantly, 'XX current SRP, layers ROEs happening, as of are is probably helpful. expect and couple our SRP for we the right? things true cost A SRP both and just equity to

periodic cases. important should periodic historically But their out they've gone It's rate I so that they're very assume through as things come not is One more gone is the they've now what's of much on in cases important, back they through and going that a for for in rate Steve, build growth, think basis. they delivery capability. we

X% toward So the end X%, we're planning comfortable that across they cycle. have But or period. and a run that that of the bit much above higher earned below generally, little they'll the planning X% closer in to to ROEs

Steven Fleishman

from Last plans. highlighted up Okay. now to a reset X% kind question, morning. growth this prior X% big then this to is said you've just, of And you this obviously, the the X%

what, could going Just to differently you do say or sure you're when better? we Jeff, folks to talk X% make to this like hit you

Jeffery Martin

you giving question opportunity is. me the the Yes. I things. to A have couple of appreciate

to Steve. got to we've you're part good plan. capital a a what challenged is sure We've allocating got strategy, of make right think the the And growth. of lot financing got opportunities. We've you're highest do I

we our at And we're growth with plan earn through think the Directors, allocating on what is think segment. Steve, and highest sure the gear disproportionately just finalized week, our to us we our capital we Sempra that Board will of last plan value capital, Texas and Oncor you're I the financial our making seeing just businesses street. went around

One case in the regulatory of of supposed deliver most of is end the was decided better California And you recall, a regulatory series to important to can we December continue at Steve, rate We outcomes be had that of outcomes. things do XXXX. XXXX.

into entropy financial plan. a So our put more that lot

rate need we very outcomes. one, I offer where we year. for we is you. back pushes with financial feel our allocate I'd to need is best Number their right discipline the regulatory continue about finish pressure thing business we better this delivering to on sure lot in number returns a the case, capital Number in though And the downward think to a two planning need Oncor things for which of to So taking term. even earlier And process year longer produce can two, good that I results. to it make we're three, the

So own we you expectations 'XX different for a little management personally bit of there issue. we lowered can 'XX. that. terms I that and chance XXX% how just produce a what in a is in is frame of a have That's that view our

earnings was and today this in expectations tell should than should exceed you key and it point come I the You again business to that higher and year in us claw expect want the is see a to do is power we of XXXX. to fight XXXX, back ago. But

the on produce in in XXXX what reset longer-term plan, environment but not really can focus we can a the to what gone you power our earnings has We So more and XXXX. of higher the that's see of assumption related business. growth we up, to need investors more the not no have The we side of visibility have the is to us to. in numbers make are exact all there's you asymmetry time do, Steve, with our sure knowledge. of numbers And and planning spend sell planning front

same find part have I transparency question power the earnings the you in have think long-term the more that your business. let's answer So so confidence of that we do the to to ways is, of

Operator

Arcaro question will Morgan from from Our next Stanley. David come

David Arcaro

maybe bit catch you question. X% crossover you level? plan a a last in X% that the when of point continuation guess that there kind I up of growth to to a the of expect Is where meet back prior EPS to

Jeffery Martin

providing crossover the guidance to as occurs. Look, the I'm not sure where that we're

I deliver. think the what to of trying can revised share view is really that earnings rate the long-term per we've we're we growth express

the X-year per in to of plan, share even the fifth we've that's year beat our last above inside rate well today really of got plan, we period, year number year's While fifth And I important. growth. an talking about is of that earnings right? expect planning mean that our

of was -- the strength feel grow the great we to we're the business. the about thing And we're our long is the for don't business do guidance, make to that what the in right ability it do the sure to convictions So but about guiding XXXX the business term. trying

Our to 'XX 'XX sure that job sure well make we in everyone's and now, we execute David, earn is confidence. make to

David Arcaro

be touch impact I California then here. -- of legislative And backdrops, profile Texas legislation on your around to we've be or you legislation appreciate maybe to on based able any touch could active in and financial would got session? the comments Understood. potential to Texas come the there. both you on this active Yes. utilities thoughts changes the Would in -- that able I guess,

the state? wildfire any protection some maybe California, look for then on funding backdrop wildfire in the legislative And efforts in and the there more changes longer-term to to

Jeffery Martin

a there. into visibility what give about because can helpful a And session also might from coming in reflective But of is that. impacts bit the be how of talk that's quality little I Texas questions think years me is the variety let the you I ago. legislative of we think that of X Sure. There's growth where Allen had

where a you're about do influences you little in two things. growth bit seeing following initiatives up Austin. provide Maybe you're that color show initiatives Allen, regulatory of how system. legislative And regulatory of -- and on the But the could some

E. Nye

lot try maybe and color we've some And I unlike unprecedented, Jeff. prepared break but seen. it's growth a my really talked in it I Yes, to context. I'll remarks, down you. about know categories some ever into anything some sure, and Thank provide

said really around for interconnection, active a and story I First, where for Broken continues two in we We of about transmission X% premise from and transmission of 'XX 'XX 'XX. annual. to Generation is premise POIs new in before, increase XX,XXX to record up for 'XX where categories total points It's it as LC&I, up into the 'XX. be was generation December our a The here. queue. 'XX. about the connected year-over-year in growth, over set continues X% X% in down is above The be new XX%. by total

That's LC&I. about XX over centers and increase XXX be about XX% 'XX non-data XXX December to LC&I in rather, pieces And above is of of on where 'XX. center, LC&I they presently represents we ways This were gigawatts where load. about real December gigawatts data were about where the broken down XXX total is two queue, story were two a up continues traditional 'XX. the then in of into that gigawatts more of potential about numbers XXX%

post sign are indicators submitted we they of XXXX, With materializing. had high this confidence in regard key ERCOT a collateral, we customers to to and potential of of would we actually agreement load LC&I LC&I that which that believe potential likelihood load, the clear list eventually an the

So we high in XX confidence potential XX submitted gigawatts rather. In increased that XXXX, gigawatts XXXX, high load. of load confident to of we

new and with involving So a look system number XX you of projection potential customers we about already that approximately load gigawatts. that signed agreements represents when to whom of XX our presently of that at have confidence collateral, high you the load add peaks XX on gigawatts 'XX

more our peak we're by So potentially XXX% or looking about increasing XXXX. at load by

Now growth ultimately oil LC&I to not include an Permian that number it important alone. does residential small project. component to is connect gas connect that growth does and that will factor does customers growth, not include growth, is That or to fact the commercial and include -- that rather,

with capital our have plan looking in about you're XX X-year only of when about LC&I billion $XX gigawatts gigawatts So load billion plan the at that $XX now, that right of data. X.X we being

year I'll prior set saying zone billion the peak. the $XX of just West about part percent be that you look to incremental that peak above was expect remains new XX-plus weather our strong. very base much when point, bucket, that Far 'XX, in fully was Texas at by conclude plan. we Jeff's to So of ultimately West a The Texas that

regards the the peak. And in loops 'XX peak that new then the XX% transmission X.X% Stanton with 'XX serve Culberson above and was to about peak peak in area, the our about that above was 'XX two

strong the our driving Jeff So overall, increased described. over just is growth incredibly really that numbers all system, cap which

Jeffery Martin

regulatory initiatives you're tracking. about Talk

E. Nye

Legislation?

Jeffery Martin

Yes.

E. Nye

Yes.

go committee still bills a So ways Texas with session. still long legislative we're on to we filed. the hearings early And being and in have

reflect customers, backlog during just related growth. up an actual which cost this various issues, load particularly that be of reflected of to particular, increase allocation Some shore think we're state's following structures to of sheets for would things financial period in utility the it much balance such related to interested strong would utilities SP X, as example, and the I and in large step are and in the because issues really are important of ideas HB as XXXX, this discussed, high we cap in recent filings the proposals

to at limits more tracking set weather least And all and of could of more facing, been potentially of a bills utilities maybe in there's and that various come. some the then liabilities we're couple events that regard given we're that ideas filed challenging on

other So now. right we're going to but There's concepts some continue well, key of those watching. as areas are of kind the

I think of customers the bottom public continue good Texas both our line is will we implement to confident policies and that the very remain that state our support shareholders.

Jeffery Martin

about Thank also David, a in legislation little we're about I'll talk you, how And bit Allen. California. thinking

AB backstop place have As in XXXX. today you we know, a financial under

the issue people utility risk. a just I And well a to It's issue the not I'm customers. broader legislative outcome this that California. a focused toward risk. utilities providing to but well, as state X view wildfire efficiently, remember, really cost confident forecast This the is reduces with stability served societal allowing session, this on that capital also think to prepared of are I'm Over a marketplace last the the years issue. raise not right to reducing the which is in as

it it the in scenario very page at rolling billion, And how XX% currently. also on Slide scenario. that that's SDG&E would outlines is summary can the XX, XX, that I and X-year bottom you works liability using see that $X.X note a cap that and mechanism worst-case second provide about on average a wildfire at we David, rate of XX the the of base

not red has and system in year, some was SDG&E worse mechanism, managed SDG&E a SDG&E wildfire significant encountered flag successfully the safely. experienced this than utility cases, calls conditions Beyond had wildfire years. in recently, XX And the in substantially region similar, L.A. its

a an businesses thing for of across our most management there's So XXXX. We think we do our great run X and AB team as backdrop is about feel of can platforms the we business opportunity the But protect communities. all our legislation. safely important

Operator

Ross Bank from will question America. of from next Our come Fowler

Ross Fowler

for couple one of go to kind questions maybe XX for of second. you, a So a just Karen, back Slide

August, exact here, delayed Just little I the X know the bit. moving and kind California aren't understand FD trying the but maybe Phase LNG the magnitude the GRC ] 'XX out of pieces fall year. pieces of moving magnitude of in and a was in the ECA to of last spring was I the believe, [ to

So trying at that most midpoint of third the was based in gotten the 'XX Texas was of guidance changes, that the the Or quarter basis midpoint sort we've what on points, 'XX then things to what on that XX kind of out of quarter some just to pushing you factors contemplated everything. third moved is in on call your the low on Or I'm Or end? the call the sort of magnitude and figure then? since to is EEI? kind prior these of on

Jeffery Martin

events, were Sure. recent of important then the December the talked rate thank two on we Ross, and base three at question. Oncor. the recent the case the of about end for Obviously, decision very you most which

referring Karen, to? you back don't some why issues and XXXX of the review go you're that

Karen Sedgwick

through Sure. mentioned our recently. good know, finalized plan And you fall. And a the just we were as question we because, on it's it again, I working all

and of not. did some data some we the So had points we

see. us the things -- the a December, taking see proposed So pressure And that is January, case, funds those to that long having final. so as case. proposed our for we That's on what not into to was of impact end we case, put additional unfortunately, to starting typically balance received it's We decision that it and that pieces causing and more final having thought implemented get the because better we that rate financial did had having going then And rate it's see through the would California sheet the with continue outside at the rate of we funding. not in our case between as we plan. hold get We we rate which again, the here.

the that resolved Again, in worse. that our half think an latter that of impact get to gets continued but certainly was plan, we

other of cost The was pieces two the knew about we California, capital. the big in piece

December as unexpected. was of that the could CAISO the the bigger about think was there. the at added two, probably hit I So that calculate of FERC the again you And adder was $XX obviously. was million What end

So about that's closer, additional. I think, $XX to million

So those that things also impacted two are California.

here we for the higher is if really Texas, O&M a the cost, seeing In lot looked the this case, Oncor We just rate in hit think growth, the it's in really rise plan. this capital talked it insurance do. brand about XX%, costs, We at right this is to overall the to really to new. going decision thing

I get know the the in this hard. disappointing. it's decision right know I future. is think earnings So to We it's

in growth. And the fund in this which interest load increased growth, was all mentioned, than parent as us then the higher having or that's even November at we to anticipated I we as December, Texas again

became things of these X just items quarter third December there's in of last and weeks. we newly of then in So aware things really late knew there the a the some in mixture and that

to Jeff, do want you add there? anything

Jeffery Martin

think I that's good. No,

Ross Fowler

And future then XX%, interesting that, years. And said said should the that to to to XX% midpoint, about rate interestingly pull something call XX%, just, about through at XX%. because you growth you Jeff, it's then growing midpoint on the

think off X% I now about is the I on trying think the if to that So X% or about base here. X%, I base just I'm X% the to through? saying 'XX above X% pulling Should you're X% growth right think Or to I above How should the 'XX? think? think that about should about because

Jeffery Martin

think with other analysts reasons we one for produce. the did view long-term it this we can challenge, you rate. we sustained EPS as many was brought and have not think we've XXXX And had where think it do we we think I we of growth, a back. And back long-term that that of I of years, I is brought conversations the in on growth what was is a many, one Ross, expectation

that spending Oncor is really the XXXX we're provide industry. on in visibility, and that And the capital in to X you our XXXX to years. about to of think upswing an based time today of try across saw that frame. we So over XX anticipating growth the as some

a over have raised long we we can term. So of the business the how expectation grow

each XXXX And the when be XXXX to intra think right? you the that, we're that our of year growth that plan, will going planning the plan. they years inside is add issues we in and And that or expect you're to referring certainly Now to. what you're end come earnings to the of articulating, take above And in analysts the high we back like the happens $X.XX most which at issue this be just that. don't or is be $X.XX one

parts expect We like above of years lower periods of to to at be now and you're well you've to plan, have various have in you where X% got growth XXXX. going the there X% growth

given had about what period think of inflection by produce time, view you our over longer a like management team points the it. And we're frustrated if rate of focused to So we kind just have going you has increased, can frustrated going long improve try investors over to is the you talking try in we through intra map of But to XXXX. periods road I've The today. to and by are fundamentally, exactly Many business it. our our projections. be we're of time of things years of a to on see what do planning growth the increase you're about, our

Ross Fowler

of that when the into projects to is be period. growth And the some LNG that fair, lumpiness come variance, of Jeff,

Jeffery Martin

And I but series the three out Karen, this recent with have end in caused put us a plenty about. there a significant talked maintain That we it of comfortable issue That's events, room of these I exactly range, raised that mean, was as to We do of the XXXX things reassess XXXX. we was could Karen ECA of low an guidance for but that, kind moving of that to XXXX. Phase by you correct. think, was as a big issue. example, us felt X

an is for point us, XXXX inflection Ross.

our have on better We've in of do that expectations. management to producing What to a record back exceed get is you're to we track that, issues. of near We're the exceed the X%. and on going think term, a got X% doing team to the right relative commitment a results job to to I expectations that. there's

Operator

And question Davenport from from Sachs. Carly come will our next Goldman

Carly Davenport

ones two just filings. Maybe quick upcoming on regulatory for me

to First, the in California, put capital just talk of you there given a about expect little look you there? what to forth you of just lately, pieces bit some as moving can cost

And California of plan you in around about what's returns? anything share kind can the embedded

Jeffery Martin

of Yes. that. company, saying just to the by California our That to in capital returns last cost in start I filing and upcoming we XX we saw were there the is some would that for changes backwardation as the in months mechanism. forward doing authorized look

plan is today. planning similar what think have we the to I assumption something very our in

given to think market the the opportunity also We an our returns state. it's in environment, improve

Carly Davenport

I helpful. as frequent you going more filings apologies I look mentioned That's potential missed of then cadence the this, And if just filing, had case there a rate forward. Oncor towards think Great. but you

any to Just of requirement? relative what kind look you think color on that X-year the could like

Jeffery Martin

Yes.

cases You'll it was to EFH of That Oncor actually purchase of in recall XXXX. rate And XXXX in our the the until base the prosecute the 'XX. case set of their XXXX. year back They remember, wasn't in two that case that middle rate interest. of November finalized with ago, went of May in

think growth really O&M, think We their think is in insurance So together rate May a time. and off this about that's you got that I of been business the on through, of terms lag, been a headcount, right ROEs. pressure in Carly of increased the cost in earned costs. run case they've regulatory with XXXX rate XXXX the And with putting

in and pressure that want put in something comfortable guidance, our But do footing legislative that It's think see be to a depend to is will to about don't put positive better the the when a XXXX. expectation XXXX. this on of We thing them defensive enough assume those to it earn in for expectation we very to higher ROEs. but does downward the right material on It our you'll are we're middle session, on rates that have earned effective. much

Operator

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

Anthony Crowdell

though of that Steve's I new for guess, One regulatory following still filings, questions. rates that think this the given in reset challenging next it's don't is December is, of would a two cadence a 'XX. filing past If confidence I looks the it maybe even the like have it's plan, kind maybe came enough about thing, think happen repeat XX% that that there's 'XX we stressed I growing, Texas caused filing in similar Just question do you earlier. of company. a quick have another in plan What the California this -- that is of

Jeffery Martin

couple FERC things which next use is good will positive and what return come the A we into file I is FERC rate of of our in also rate think pending year, the California news test California forward is Yes. when new through a decision case, be. a XXXX, back fact. about We've the got

that's we prosecute But for may their FERC. we at obviously, the to cost mentioned rate opportunity at you returns slightly capital mechanism for filings Clearly, their XX.XX% as equity FERC case higher settle that an but Oncor XX.XX%. remember, got this, there's mention a regulatory or without opportunity a recent improve on is well adder, opportunity positive. case think I to a think taking Now is of this CenterPoint bump an year Oncor. layer. There's positive. that an the I Obviously, to Carly there the filed place too, And it. will there's

have are now FERC, good upside the the we've So could not aspects conservative of and another there outlined where earned in is business raising which structure in in the that we ROEs, capital got with But relatively compact, set positive one, to you're look, all are our which Texas opportunities assumptions. to the regulatory I both and around up I've issues think opportunities plan. be other and plan. California prove

Anthony Crowdell

one then quick And follow-up. Great. just

just X.XX I the factor. think if of and multiply to power of investors Ross' company year's miss question, some it with by number they take the you earnings some talked may last about

Just thoughts of giving annual hearing X feel the years. not and than further thoughts more just as plan is you guidance see just you resilient,

give north you transparency be us to not plan, 'XX, us of good really annual even thoughts years. giving doing us give given an Any of more seen of 'XX. We've the feel may earnings give guidance You that power some that the about it X the companies their Street linear?

Jeffery Martin

Yes.

certainly make for time. historically misunderstanding been You Because and to has company, our time linear think been it point. this from I a great not has a

we people happier, last a guidance. would I gave year wish years If we out given earnings you go back the way. by earnings a for I because decade, guidance and be fifth year fifth this a middle to I'd the part gave call lot X and think X, of

that. done We haven't

a say think was understand But and I that with indicated above period, going number then started Anthony, we planning range. of try the quite can in and period. we deliver that to We deliver at range X but and raised would confident in beat we're doing XXXX, to level guidance those beyond think confidence long-term the what X, as about EPS we're some that those. we our And today, or I that planning that that years can we've given we I've

So you good point. a raised

have illustrate be what think make transparent think there's area. make key more and to some we how in work sure I I it that of we done not that to knowledge our Wall Street. it the issue asymmetry between plan or got is to And we've in

increase to So that we're about ideas certainly other transparency. open-minded

Operator

Paul from Fremont Thalmann. next from will our And come Ladenburg question

Paul Fremont

I is guess Carly's really my a to question. first question follow-up

terms of there's you cost the assuming In assumption in this that ROE capital capital, cost of of of that year? no significant are comes the change out

Jeffery Martin

for got Yes. capital say we've both businesses. existing of that I would an cost

I think exceed I substantially the opportunity an to plan think that, but the in today, think expectations. plan there's we similar to it's

Paul Fremont

If legislature that rather following billion? the alternative sort topping up question there the is also fund then fund, $XX out an than on see there And Arcaro's on of of coming the of California was replenishment to up you no the David Great. back legislation.

Jeffery Martin

lot in I state are obviously, outcome. people can't And The and Yes. the this has And basically and of a what mechanism minds great the say This a has on do I of the can't this. is been down really well. who worked a the I investors can lot state. of that's question. people up is forecast in today place

an So I lot bonds, would ] in-perpetuity CWR a make that about, there's [ of today ideas extending fund. which know example, for the

the well that's would That's one above been floated it go of ideas around. $XX So billion.

There's for discussions large fund. separate Another utilities. utility from been their state, or been own is to specifically utilities other participation floated idea municipal allowing greater segregated wildfire have each the around that's allowing in the

From societal people California, by Wildfires impacted. of our standpoint, of back this one, utilities, couple to are right? started remember a it got issue you lots is goes things. to in a rarely Number are

Governor's I solved. consultant a think back focus there's the with Guggenheim that sure on Guggenheim a I office. a making lot XXXX. of XXXX know, as was this AB consultant also gets is back for example, for in in

the issue. right the are on think I joined look, people So

currently run always we ensure makes have. would better good we fund our strengthens be current Anything But at be we the number to a will cap, you're do of some as what helpful. either that's a little mechanism a replacement think that very, we Sacramento low strengthen had in safe we'll sure making form the than our we very about, obviously to contributions the and day-to-day from lot focus, support or one, That or of sense. standpoint, business. legislation and And to the like the issues feel we were a table be can concerns we not ones fund relatively because addressing and state liability if there's even such imprudent, the fund

Paul Fremont

of implied sort might it Is in with place. that session something to thoughts? the that might your utility And this consistent then take years legislative another legislature for this that timing new happen put X California not

Jeffery Martin

a I've lot to that it of Look, working I'm right I'm say now. said are not outcome. an of a on to prepared couple forecast people times it prepared now.

I think our from helpful. of the be AB rather good current sooner I answer would So body framework XXXX. an later feel about than legislative

in confidence California positive. any is appropriate activity earn Street's that an Wall you So return strengthens a can that

also allows have ratepayers what? lower guess our It to And cost.

we very, the important terms making in be layers, taking have equity very risk away business, from we and issue appropriate how access returns the So exposed capital, to of allows less the that's appropriate and the this ratepayers of sure it to cost.

Paul Fremont

eaten because there? when timing Or or at And eaten completely that by guidance Oncor case? 'XX up up at losses the your is looks you mostly loss is of look the then parent. the sort I Can it the of of what's -- like at happening additional benefit Oncor numbers, rate or

Jeffery Martin

mind Would you repeating question Yes. again? that

Paul Fremont

Sure. more offset is It the improvement 'XX the by in Sempra looks if as at at losses parent. additional Texas than

Jeffery Martin

structure, how say that we're a would parent right? has not together. those it the with to financing mechanisms, things cost Obviously, lot I of doing into I there's equity. would business, we're do associate whether two we're the using using go financing different traditional Well, hybrids, we're whether

going what to trying all I three plan. think across from earnings business greater the is we're to provide we're segments do power X-year

to is And to we're I Karen's and financing most it job I to Treasurer we're going possible. the make do assure try efficient think numbers, XXXX in If as beat that. can sure way those can job the Glen's you we

Operator

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

Jeffery Martin

business. call. say as us know us. today well. about that would I people appreciate there's could fact competing a We join pleased there appreciate been thinking are our of the were just No, terms the joining on of how in people some that lot changes I that calls everyone I we're

mention attending that I our investor in conferences multiple week. team New is executive next want to York

that's please custom, Per follow-up and you you our your with we real team, hope again, senior are reach a our out any this see of to meet if call. concludes to many items, and IR think opportunity with Thank there and our questions. team to there. I Oncor

Operator

Thank you for your participation.

a You may Everyone, have disconnect. wonderful day. now

Sempra (SRE) 25 Feb 252024 Q4 Earnings call transcript