Dba Sempra · NYSE:SRE
Dba Sempra — Q3 2024 Earnings Presentation
25 slides from Dba Sempra's earnings presentation, Nov 3, 2023
Slide 1: Ideas with energy: Third Quarter 2024 Earnings Results
Ideas with energy Third Quarter 2024 Earnings Results November 6, 2024
Slide 2: About This Presentation
About This Presentation This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may
Slide 3: Table of Contents
Table of Contents ▪ Executive Summary ▪ Business Updates ▪ Financial Results ▪ Closing Remarks | 3
Slide 4: Executive Summary
Executive Summary With a disciplined growth strategy, Sempra is building modern energy networks that connect customers to safer, more reliable, and cleaner energy; recent updates include: ▪ In California, received a proposed decision in our utilities’ 2024 general rate cases and continue to work 1 t
Slide 5: Business Updates | Sempra Texas
Business Updates | Sempra Texas High Growth Potential 1 ▪ EIA’s latest short-term energy outlook for ERCOT forecasts 5% load growth between 2024 and 2025 Strong Operational Performance ▪ In Q3-2024, Oncor: • Built, re-built, or upgraded over 800 miles of T+D lines • Increased premise count by 19,000
Slide 6: Sempra Texas | Permian Basin Reliability Plan
Sempra Texas | Permian Basin Reliability Plan 1 Key Highlights High Growth in Permian Basin ▪ ERCOT forecasts Permian Basin peak load to quadruple to 26.4 GW by 2038 • Significant demand growth from large C&I, technical manufacturing, data centers, and cryptomining ▪ PUCT approved the Permian Basin
Slide 7: Sempra Texas | ERCOT High-Capacity Grid Overlay
Sempra Texas | ERCOT High-Capacity Grid Overlay 1 Key Highlights EHV 765-kV Infrastructure Plan ▪ ERCOT proposes new 765-kV extra-high voltage grid to support increased demand and new generation ▪ Increased transfer capability, lower line losses, higher flexibility of generation resource siting ▪ Ph
Slide 8: Business Updates | Sempra California
Business Updates | Sempra California 1,4 Constructive Regulatory Environment GRC PD Revenue Requirements ($M) ▪ Received PD in the 2024 GRC enhancing safety and SDGE 1 reliability, FD expected by year-end 2023A TY 2024 2025 2026 2027 ▪ 2024 Schedule: Requested $2,533 $3,007 $3,352 $3,684 $3,988 • Oc
Slide 9: Business Updates | Sempra Infrastructure
Business Updates | Sempra Infrastructure Strong Operational Performance High Growth Platform ▪ Cameron LNG Phase 1 has loaded 140 cargos YTD + 842 since COD 1 Continued Construction Progress ▪ ECA LNG Phase 1 progresses construction targeting COD of Spring 2026 • GRO pipeline expansion expected comp
Slide 10: Q3-2024 Financial Results
Q3-2024 Financial Results Three months ended Nine months ended September 30, September 30, (Dollars and shares in millions, except EPS) 2024 2023 2024 2023 GAAP Earnings $ 638 $ 721 $ 2,152 $ 2,293 Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's c
Slide 11: Q3-2024 Adjusted Earnings Drivers
Q3-2024 Adjusted Earnings Drivers $685M $9M ($52M) ($44M) Higher CPUC base operating margin, ($36M) Lower income tax $7M ($3M) net of operating benefits, higher $566M expenses, including Lower equity net interest earnings from higher Lower revenues higher authorized Higher income tax Higher taxes ex
Slide 12: Closing Remarks
Closing Remarks Investment Highlights ▪ Commitment to safety + operational excellence ▪ Exposure to growth in some of North America’s largest economic markets with macro tailwinds ▪ Disciplined capital allocation: 1 • Oncor expected to announce new capital plan, estimated 40% – 50% increase from cur
Slide 13: Appendix I: Business Unit Earnings
Appendix I Business Unit Earnings | 13
Slide 14: Sempra California
Sempra California Three months ended Nine months ended September 30, September 30, (Dollars in millions) 2024 2023 2024 2023 Sempra California GAAP Earnings $ 247 $ 290 $ 1,145 $ 1,247 Q3-2024 earnings are lower than Q3-2023 earnings primarily due to: ▪ $38 million lower income tax benefits primaril
Slide 15: Sempra Texas
Sempra Texas Three months ended Nine months ended September 30, September 30, (Dollars in millions) 2024 2023 2024 2023 Sempra Texas Utilities GAAP Earnings $ 261 $ 305 $ 646 $ 548 Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's comprehensive base
Slide 16: Sempra Infrastructure
Sempra Infrastructure Three months ended Nine months ended September 30, September 30, (Dollars in millions) 2024 2023 2024 2023 Sempra Infrastructure GAAP Earnings $ 230 $ 223 $ 652 $ 746 Impact from foreign currency and inflation on monetary positions in Mexico (67) (36) (179) 167 Net unrealized (
Slide 17: Parent & Other
Parent & Other Three months ended Nine months ended September 30, September 30, (Dollars in millions) 2024 2023 2024 2023 Parent & Other GAAP Losses $ (100) $ (97) $ (291) $ (248) Impact from foreign currency and inflation on our monetary positions in Mexico – – 1 (1) Parent & Other Adjusted Losses1
Slide 18: Appendix II: Non-GAAP Financial Measures
Appendix II Non-GAAP Financial Measures | 18
Slide 19: 2024 and 2023 Adjusted Earnings and Adjusted EPS
2024 and 2023 Adjusted Earnings and Adjusted EPS Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2024 and 2023 as follows: Three months ended September 30, 2024: ▪ $67 million impact from foreign curren
Slide 20: 2024 and 2023 Adjusted Earnings and Adjusted EPS
2024 and 2023 Adjusted Earnings and Adjusted EPS Income tax Non- Income tax Non- Pretax (benefit) controlling Pretax (benefit) controlling amount expense (1) interests Earnings Diluted EPS amount expense (1) interests Earnings Diluted EPS (Dollars in millions, except EPS; shares in thousands) Three
Slide 21: 2024 and 2023 Adjusted Earnings (Losses) by Business Unit
2024 and 2023 Adjusted Earnings (Losses) by Business Unit Three months ended September 30, 2024 (Dollars in millions) 1 Sempra Texas Sempra Total Sempra California Utilities Infrastructure Parent & Other Sempra GAAP Earnings (Losses) $ 247 $ 261 $ 230 $ (100) $ 638 Impact from foreign currency and i
Slide 22: 2024 Adjusted EPS Guidance Range
2024 Adjusted EPS Guidance Range Sempra 2024 Adjusted EPS Guidance Range of $4.60 to $4.90 excludes items (after the effects of income taxes and, if applicable, NCI) as follows: ▪ $178 million impact from foreign currency and inflation on our monetary positions in Mexico ▪ $(13) million net unrealiz
Slide 23: Appendix III: Glossary
Appendix III Glossary @® SEMPRA | 23
Slide 24: Defined Terms
Defined Terms AFUDC allowance for funds used during construction C&I commercial and industrial CAGR compound annual growth rate CapEx capital expenditures COD commercial operations date CPUC California Public Utilities Commission ECA Energía Costa Azul EHV Extra-High Voltage EIA Energy Information A
Slide 25: Defined Terms Continued
Defined Terms Continued SDGE San Diego Gas & Electric Company SoCalGas Southern California Gas Company SRP System Resiliency Plan T+D transmission and distribution TO6 Electric Transmission Owner Formula Rate, new application TY test year YTD year to date | 25