Dba Sempra · NYSE:SRE
Dba Sempra — Q1 2022 Earnings Presentation
28 slides from Dba Sempra's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Earnings Results
First Quarter 2022 Earnings Results May 5, 2022
Slide 2: Information Regarding Forward-Looking Statements
INFORMATION REGARDING FORWARD- LOOKING STATEMENTS This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks
Slide 3: Table of Contents
TABLE OF CONTENTS • Executive Summary • Growth Platforms • Sustainability Updates • Business Updates • Financial Results • Closing Remarks 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY Executing across three growth platforms in highly attractive markets in North America • Sempra California | Upcoming GRC filings focused on safe, reliable, and cleaner energy • Sempra Texas | Advancing Oncor’s record capital plan to support strong demographic growth1 • Sempra Infra
Slide 5: Growth Platforms
GROWTH PLATFORMS Strategically positioned in highly attractive markets in North America Sempra California Sempra Texas Sempra Infrastructure Focused investments in the following key areas: ✓ Advancing our commitment to safety ✓ Improving reliability and resiliency ✓ Supporting transportation electri
Slide 6: Sustainability Updates
SUSTAINABILITY UPDATES 2021 Corporate Sustainability Report highlights our three integrated growth platforms focusing on environmental, social, and governance factors Helping Enable the Serving our Practicing Responsible Energy Transition Stakeholders Governance • SoCalGas on track for 20% • Safety
Slide 7: Business Updates
BUSINESS UPDATES Growth across three platforms developing modern energy networks • SDG&E completed Cleveland National Forest Fire Hardening + Safety Project • CPUC issued a decision for implementation of a Renewable Gas Standard • SDG&E + SoCalGas filed Cost of Capital applications for 2023 – 2025 i
Slide 8: Q1-2022 Financial Results
Q1-2022 FINANCIAL RESULTS Three months ended March 31, (Dollars and shares in millions, except EPS) 2022 2021 (Unaudited) GAAP Earnings $ 612 $ 874 Impacts Associated with Aliso Canyon Litigation 1 66 - Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives 75 (3) Net Unr
Slide 9: Q1-2022 Adjusted Earnings Drivers
Q1-2022 ADJUSTED EARNINGS DRIVERS Posted strong quarter-over-quarter financial performance, even with the sale of 20% interest in Sempra Infrastructure Partners1,2 $22M ($8M) $924M $25M $900M ($42M) $27M 1 1 Q1-2021 Lower Rate Updates from Higher SI Higher CPUC Other Q1-2022 Earnings From Invested C
Slide 10: Closing Remarks
CLOSING REMARKS Executing across three growth platforms in highly attractive markets in North America • Continuing to advance record 5-year capital plan1 • Delivering strong Q1-2022 results, both operationally and financially FINANCIAL HIGHLIGHTS • Reporting Q1-2022 adjusted EPS of $2.91 compared to
Slide 11: Appendix I
APPENDIX | (&) SEMPRA
Slide 12: Sempra California | Cost of Capital
SEMPRA CALIFORNIA | COST OF CAPITAL 2023 SDG&E + SOCALGAS APPLICATIONS • In Apr-2022, SDG&E + SoCalGas filed 2023 applications to update cost of capital • Upon approval, 2023 Cost of Capital would be effective 2023 – 2025 • Final decision anticipated by year-end 2022 2 Authorized Requested 1 1 SDG&E
Slide 13: Sempra Infrastructure | Growth Pipeline
SEMPRA INFRASTRUCTURE | GROWTH PIPELINE 1 LNG + NET-ZERO Targeted Commentary Status SOLUTIONS2 Timing ECA LNG Phase 13 • Progressing on-time + on-budget First LNG by Construction (~3 Mtpa) • 20-year contracts for 2.5 Mtpa end of 2024 Cameron LNG Phase 2 Train 1 – 3 Debottlenecking • Targeting online
Slide 14: Share Repurchase Update
SHARE REPURCHASE UPDATE Combined with the strength of our dividend program, periodic share repurchases highlight our commitment to return value to shareholders Last 6 Months: $750M of Share Repurchases $500M $300M $200M $250M Jul-Aug 2020 Nov-Dec 2021 Jan-Feb 2022 Apr 2022 Price: Shares: Price: Shar
Slide 15: Appendix II: Business Unit Earnings
APPENDIX II Business Unit Earnings 15
Slide 16: California | SDG&E
CALIFORNIA | SDG&E Q1-2022 earnings are higher than Q1-2021 earnings primarily due to higher CPUC base operating margin, net of operating expenses 16
Slide 17: California | SoCalGas
CALIFORNIA | SOCALGAS Three months ended March 31, (Unaudited, dollars in millions) 2022 2021 SoCalGas GAAP Earnings $ 334 $ 407 Impacts Associated with Aliso Canyon Litigation 1 66 - 2 SoCalGas Adjusted Earnings $ 400 $ 407 Q1-2022 adjusted earnings are lower than Q1-2021 earnings primarily due to
Slide 18: Texas | Sempra Texas Utilities
TEXAS | SEMPRA TEXAS UTILITIES Q1-2022 earnings are higher than Q1-2021 earnings primarily due to higher equity earnings from Oncor driven by: • Increased revenues from rate updates to reflect increases in invested capital, higher customer consumption, and customer growth, partially offset by • Incr
Slide 19: Sempra Infrastructure
SEMPRA INFRASTRUCTURE Q1-2022 adjusted earnings are lower than Q1-2021 adjusted earnings primarily due to: • $47M lower earnings from asset and supply optimization primarily driven by changes in natural gas prices and lower volumes and • $42M higher earnings attributable to NCI consisting of 1) $24M
Slide 20: Parent & Other
PARENT & OTHER Three months ended March 31, (Unaudited, dollars in millions) 2022 2021 Parent & Other GAAP Losses $ (213) $ (82) Deferred Income Tax Expense Associated with the Change in our Indefinite Reinvestment Assertion Related to the Pending Sale of NCI to ADIA 120 - Parent & Other Adjusted Lo
Slide 21: Appendix III: Non-GAAP Financial Measures
APPENDIX III Non-GAAP Financial Measures 21
Slide 22: Adjusted Earnings and Adjusted EPS (Unaudited)
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, NCI) in 2022 and 2021 as follows: In the three months ended March 31, 2022: • $(66)M from impacts associated with Aliso Canyon natural gas sto
Slide 23: Adjusted Earnings and Adjusted EPS (Unaudited)
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Income tax Non- Non- Pretax (benefit) controlling Pretax Income tax controlling amount expense 1 interests Earnings amount benefit1 interests Earnings (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2022
Slide 24: Adjusted Earnings (Losses) by Business Units (Unaudited)
ADJUSTED EARNINGS (LOSSES) BY BUSINESS UNITS (UNAUDITED) 1 Adjusted Earnings (Losses) by Business Units (Unaudited)(1) Three months ended March 31, 2022 Sempra (Dollars in millions) Sempra Texas Sempra Parent & Sempra SDG&E SoCalGas California Utilities Infrastructure Other Consolidated GAAP Earning
Slide 25: 2022 Adjusted EPS Guidance Range (Unaudited)
2022 ADJUSTED EPS GUIDANCE RANGE (UNAUDITED) Sempra 2022 Adjusted EPS Guidance Range of $8.10 to $8.70 excludes items (after the effects of income taxes and, if applicable, NCI) as follows: • $(66)M from impacts associated with Aliso Canyon natural gas storage facility litigation related to five pro
Slide 26: Appendix IV: Glossary
APPENDIX IV Glossary (&) SEMPRA
Slide 27: Glossary
GLOSSARY DEFINED TERMS ADIA Black Silverback ZC 2022 LP (assignee of Black River B 2017 Inc.), a wholly owned affiliate of Abu Dhabi Investment Authority CCM cost of capital adjustment mechanism CCUS Carbon Capture Utilization and Sequestration CFE Comisión Federal de Electricidad (Mexico’s Federal
Slide 28: Glossary Continued
GLOSSARY CONTINUED DEFINED TERMS Mtpa million tonnes per annum MW megawatt NCI noncontrolling interest Non-FTA U.S Department of Energy Non-Free Trade Agreement countries export permit NYK Nippon Yusen Kabushiki Kaisha OSHA Occupational Safety and Health Administration PDA project development agreem