Dba Sempra · NYSE:SRE
Dba Sempra — Q2 2024 Earnings Presentation
32 slides from Dba Sempra's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Earnings Results
Ideas with energy Second Quarter 2024 Earnings Results August 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 Sempra owns a portfolio of T+D businesses positioned in some of North America’s largest economic 1 markets and is executing on a record 5-year, $48B capital plan • Sempra California: Constructive regulatory framework and advanced wildfire mitigation plan, GRC PD 2 expected in summe
Slide 5: Strategic Positioning
Strategic Positioning With a disciplined growth strategy, Sempra is building modern energy networks that connect customers to safer, more reliable, and cleaner energy ✓ A leading energy infrastructure player in some of North America’s largest economic markets ✓ Simplified T+D business model investin
Slide 6: Business Updates: Strong Operational Performance
| Business Updates Strong Operational Performance • In Q2-2024, Oncor: ▪ Built, re-built, or upgraded 1,050 miles of T+D lines ▪ Increased premise count by 20,000, continue to expect 2% long-term premise growth rate ▪ Achieved a 13% year-over-year increase in active transmission point of interconnec
Slide 7: Sempra Texas | Growth at Oncor
Sempra Texas | Growth at Oncor Large C&I customers and transmission expansion driving 2023 – 2030 anticipated growth 6 Oncor’s Rate Base Growth Drivers Oncor Expects to Serve 40% of 2030 Load • Current $24B capital plan underpins 11% projected DFW Growth rate base CAGR, growing to $39B in 2028 drive
Slide 8: Business Updates: SoCalGas and SDGE Initiatives
| Business Updates SoCalGas Decarbonization Initiatives • ARCHES, of which SoCalGas is a partner, was the first of seven hydrogen hubs throughout the country 1 to officially sign its DOE agreement to secure funding • SB 1440 biomethane procurement contracts filed in July, pending commission review S
Slide 9: Business Updates: Development and Construction Progress
| Business Updates 1 Development Progress 2 • Port Arthur LNG Phase 2 advanced commercial offtake agreements, project-level equity and EPC 1 Construction Progress • ECA LNG Phase 1 progress 85% complete ▪ Steel construction complete and focused on above-ground piping (65% complete) ▪ COD expected sp
Slide 10: Spotlight | Port Arthur Energy Hub
Spotlight | Port Arthur Energy Hub Port Arthur LNG Phase 2 is expected to provide energy security to customers around the world to support their growth and decarbonization needs Phase 2 Development Update1 Marketing Update Phase 1 Phase 2 10.5 Mtpa 0.88 1.00 Active discussions 1.40 with potential •
Slide 11: Q2-2024 Financial Results
Q2-2024 Financial Results Three months ended Six months ended June 30, June 30, (Dollars and shares in millions, except EPS) 2024 2023 2024 2023 GAAP Earnings $ 713 $ 603 $ 1,514 $ 1,572 Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's comprehensiv
Slide 12: Q2-2024 Adjusted Earnings Drivers
Q2-2024 Adjusted Earnings Drivers $26M ($49M) $42M ($48M) $594M ($8M) $10M $567M Higher CPUC base operating Lower income Higher equity Lower equity Higher taxes + Timing of interim margin, net of tax benefits, earnings from earnings + higher O&M + period taxes, operating regulatory awards base rate
Slide 13: Closing Remarks
Closing Remarks Investment Highlights • Commitment to safety + operational excellence and delivering attractive returns • Exposure to growth in some of North America’s largest economic markets • Disciplined capital allocation targeting higher-value and lower-risk T+D infrastructure • Return of capit
Slide 14: Appendix I
Appendix | @® SEMPRA | 14
Slide 15: Sempra Infrastructure | Construction Pipeline
1 Sempra Infrastructure | Construction Pipeline LNG Commentary Status Location ECA LNG Phase 1 • COD expected in spring 2026 Construction Baja California (~3 Mtpa) Port Arthur LNG Phase 1 • Train 1 and Train 2 COD expected in 2027 and 2028, Construction Port Arthur, TX (~13 Mtpa) respectively Energy
Slide 16: Sempra Infrastructure | Growth Pipeline
1 Sempra Infrastructure | Growth Pipeline LNG Commentary Status Location Cameron LNG Phase 2 Train 1 – 3 Debottlenecking • Expected online in stages prior to Cameron LNG Train 4 Development Hackberry, LA (~1 Mtpa) • Conducting engineering and construction activities Train 4 • Progressing with Camero
Slide 17: Sempra Infrastructure | Growth Pipeline
1 Sempra Infrastructure | Growth Pipeline Energy Networks Commentary Status Location CIP Expansion • To deliver gas to Cameron LNG Phase 2 Development Hackberry, LA Port Arthur Pipeline • To deliver gas to Port Arthur LNG Phase 2 Development Port Arthur, TX (Texas Connector) Low Carbon Solutions Com
Slide 18: Appendix II Business Unit Earnings
Appendix II Business Unit Earnings | 18
Slide 19: Sempra California
Sempra California Three months ended Six months ended June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Sempra California GAAP Earnings $ 316 $ 339 $ 898 $ 957 Q2-2024 earnings are lower than Q2-2023 earnings primarily due to: • $37 million lower income tax benefits primarily from flow-thr
Slide 20: Sempra Texas
Sempra Texas Three months ended Six months ended June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Sempra Texas Utilities GAAP Earnings $ 202 $ 160 $ 385 $ 243 Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's comprehensive base rate revie
Slide 21: Sempra Infrastructure
Sempra Infrastructure Three months ended Six months ended June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Sempra Infrastructure GAAP Earnings $ 291 $ 208 $ 422 $ 523 Impact from foreign currency and inflation on monetary positions in Mexico (153) 94 (112) 203 Net unrealized losses (gains
Slide 22: Parent & Other
Parent & Other Three months ended Six months ended June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Parent & Other GAAP Losses $ (96) $ (104) $ (191) $ (151) Impact from foreign currency and inflation on our monetary positions in Mexico 1 (1) 1 (1) Parent & Other Adjusted Losses1 $ (95) $
Slide 23: Appendix III Non-GAAP Financial Measures
Appendix III Non-GAAP Financial Measures | 23
Slide 24: 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 June 30, 2024: ▪ $152 million impact from foreign currency a
Slide 25: 2024 and 2023 Adjusted Earnings and Adjusted EPS
2024 and 2023 Adjusted Earnings and Adjusted EPS 1. Income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We record equity losses from our investment in Oncor Holdings net of income tax. | 25
Slide 26: 2024 and 2023 Adjusted Earnings (Losses) by Business Unit
2024 and 2023 Adjusted Earnings (Losses) by Business Unit 1. Income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We record equity losses from our investment in Oncor Holdings net of income tax. | 26
Slide 27: 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: ▪ $111 million impact from foreign currency and inflation on our monetary positions in Mexico ▪ $(18) million net unrealiz
Slide 28: 2023 and 2018 Adjusted Earnings and Adjusted EPS
2023 and 2018 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 2023 and 2018 as follows: Year ended December 31, 2023: ▪ $(44) million equity losses from investment in
Slide 29: 2023 and 2018 Adjusted Earnings and Adjusted EPS
2023 and 2018 Adjusted Earnings and Adjusted EPS 1. Except for adjustments that are solely income tax, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We record equity losses for our investment in Oncor Holdings net of income tax. We did not record a
Slide 30: Appendix IV Glossary
Appendix IV Glossary | 30
Slide 31: Defined Terms
Defined Terms AI artificial intelligence ARCHES Alliance for Renewable Clean Hydrogen Energy Systems Bcf billion cubic feet Bcf/d billion cubic feet per day Bechtel Bechtel Energy Inc. C&I commercial and industrial Cameron LNG Total, Mitsui, and a joint venture between Mitsubishi and Nippon Yusen Ka
Slide 32: Defined Terms Continued
Defined Terms Continued GRC General Rate Case GRO Gasoducto Rosarito GW gigawatt HOA heads of agreement INEOS INEOS Energy Trading LTD., a subsidiary of INEOS Ltd. IOU investor-owned utility LNG liquefied natural gas Mitsubishi Mitsubishi Corporation Mitsui Mitsui & Co. MOU Memorandum of Understandi