Slide 1: Third Quarter 2021 Earnings Results
Third Quarter 2021 Earnings Results November 5, 2021
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 • Business Updates • Financial Update • Summary 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY Marking completion of series of integrated transactions forming Sempra Infrastructure • Simplifying business model • Improving competitive scale • Recycling proceeds to strengthen balance sheet + fund incremental utility growth • Highlighting value to owners Announcing higher proje
Slide 5: Business Updates
BUSINESS UPDATES • SDG&E filed off-cycle cost of capital application with CPUC; SDG&E requested a decision in 1H-20221 • SoCalGas announced agreements expected to resolve substantially all SEMPRA material Aliso Canyon civil litigation against SoCalGas and Sempra CALIFORNIA with net, after-tax cash o
Slide 6: Texas | Oncor Spotlight
TEXAS | ONCOR SPOTLIGHT Robust economic expansion in Oncor’s service territory continues to drive strong projected rate base growth 2022 – 2026 Capital Plan1 Rate Base ($B)2 $15.0B $27.6 $25.9 $24.1 $22.3 $5.9B $8.2B $20.6 Distribution Transmission $18.8 $23.8 $22.6 $21.4 $20.1 $18.6 2021E 2022E 202
Slide 7: Sempra Infrastructure Platform
SEMPRA INFRASTRUCTURE PLATFORM LNG + ENERGY CLEAN NET-ZERO SOLUTIONS NETWORKS POWER ✓ Anchored by 12 Mtpa at ✓ A leading natural gas ✓ Owner of over 1,000 MW Cameron LNG Phase 1; transportation + of renewables with cross- developing other distribution network2 border transmission lines strategically
Slide 8: Infrastructure | Project Spotlight
INFRASTRUCTURE | PROJECT SPOTLIGHT 1 PROJECTED PROJECT GOAL STATUS TIMING2 ECA LNG Phase 1 Building low-cost brownfield project Construction First LNG 2H-2024 LNG + NET-ZERO SOLUTIONS Cameron LNG Phase 2 Unlocking brownfield opportunity Development FID end of 2022 3 Sequestering CO2 from Cameron Hac
Slide 9: Q3-2021 Financial Results
Q3-2021 FINANCIAL RESULTS Three months ended Nine months ended September 30, September 30, (Dollars, except EPS, and shares in millions) 2021 2020 2021 2020 (Unaudited) GAAP (Losses) Earnings $ (648) $ 351 $ 650 $ 3,350 Impacts Associated with Aliso Canyon Litigation and Regulatory Matters 1,132 22
Slide 10: Q3-2021 Adjusted Earnings Drivers
Q3-2021 ADJUSTED EARNINGS DRIVERS $29M ($15M) 1 3 $545M $29M 2 $35M $35M 1 $432M Q3-2020 Higher CPUC Base Lower 2020 SDG&E Other Q3-2021 IEnova Operating Parent Energy Ownership Margin Losses Efficiency Refund 1. Represents a non-GAAP financial measure. GAAP Earnings (Losses) for Q3-2020 and Q3-2021
Slide 11: Summary
SUMMARY Marking completion of series of integrated transactions forming Sempra Infrastructure Announcing higher projected 2022 – 2026 capital plan at Oncor of $15.0B1 Reporting Q3-2021 adjusted EPS of $1.70 and YTD-2021 adjusted EPS of $6.272 Continuing to guide to the upper end of FY-2021 adjusted
Slide 12: Appendix
APPENDIX 12
Slide 13: SDG&E | Cost of Capital Filing
SDG&E | COST OF CAPITAL FILING APPLICATION OVERVIEW • SDG&E off-cycle cost of capital CURRENT 1 REQUEST 2 application EQUITY 52% 54% LAYER ▪ Update to cost of capital effective January 1, 2022 RETURN ON 10.2% 10.55% EQUITY ▪ Result of the ongoing effects of the COVID-19 pandemic COST OF 4.59% 3.84%
Slide 14: Appendix: Business Unit Earnings
APPENDIX Business Unit Earnings 14
Slide 15: California | SDG&E
CALIFORNIA | SDG&E Q3-2021 earnings are higher than Q3-2020 primarily due to: • $29M charge related to the Energy Efficiency Program in Q3-2020 and • $27M higher CPUC base operating margin, net of operating expenses, partially offset by • $18M higher income tax expense resulting primarily from flow-
Slide 16: California | SoCalGas
CALIFORNIA | SOCALGAS Q3-2021 adjusted earnings are higher than Q3-2020 adjusted losses due to $8M higher CPUC base operating margin, net of operating expenses, AFUDC equity and other items 1. Adjusted Earnings (Losses) represents a non-GAAP financial measure. See Appendix for information regarding
Slide 17: Texas | Sempra Texas Utilities
TEXAS | SEMPRA TEXAS UTILITIES Q3-2021 earnings are lower than Q3-2020 primarily due to lower equity earnings driven by: • Increased operating costs and expenses attributable to invested capital and • Lower revenues from an Energy Efficiency Program performance bonus recognized in 2020, but pending
Slide 18: Infrastructure | Sempra Mexico
INFRASTRUCTURE | SEMPRA MEXICO 1 Q3-2021 adjusted earnings are higher than Q3-2020 primarily due to: • $35M higher earnings from the increase in ownership of IEnova as a result of exchange and tender offers in 2021, • $14M primarily due to the start of commercial operations of the Veracruz terminal
Slide 19: Infrastructure | Sempra LNG
INFRASTRUCTURE | SEMPRA LNG Q3-2021 adjusted earnings are in-line with Q3-2020 primarily due to: • $15M higher equity earnings from Cameron LNG JV primarily due to the three-train liquefaction project achieving full commercial operations in August 2020, partially offset by • $11M lower net interest
Slide 20: Parent & Other
PARENT & OTHER Q3-2021 adjusted losses are lower than Q3-2020 losses primarily due to: • $37M lower preferred dividends primarily as a result of $36M lower dividends due to the mandatory conversion of all series A and B preferred stock in January 2021 and July 2021, respectively, and • $15M lower ne
Slide 21: Appendix: Non-GAAP Financial Measures
APPENDIX 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, noncontrolling interests) in 2021 and 2020 as follows: In the three months ended September 30, 2021: • $(1,132)M from impacts associated with
Slide 23: Adjusted Earnings and Adjusted EPS (Unaudited)
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) (Dollars in millions, except per share amounts; shares in thousands) Pretax amount Income tax (benefit) expense1 Non- controlling interests Three months ended September 30, 2021 Earnings Pretax amount Income tax (benefit) expense1 Non- controlling inter
Slide 24: Adjusted Earnings (Losses) by Business Units (Unaudited)
ADJUSTED EARNINGS (LOSSES) BY BUSINESS UNITS (UNAUDITED) 1 Three months ended September 30, 2021 Sempra (Dollars in millions) Texas Sempra Parent & Discontinued Sempra SDG&E SoCalGas Utilities Mexico Sempra LNG Other Operations Consolidated GAAP Earnings (Losses) $ 205 $ (1,126) $ 206 $ 164 $ 1 $ (9
Slide 25: 2021 Adjusted EPS Guidance Range (Unaudited)
2021 ADJUSTED EPS GUIDANCE RANGE (UNAUDITED) Sempra 2021 Adjusted EPS Guidance Range of $7.75 to $8.35 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows: • $(1,132)M from impacts associated with Aliso Canyon natural gas storage facility litiga
Slide 26: 2021 Adjusted EPS Guidance Range (Unaudited)
2021 ADJUSTED EPS GUIDANCE RANGE (UNAUDITED) Full-Year 2021 1 Sempra GAAP EPS Guidance Range $ 3.01 to $ 3.61 Excluded items: Impacts associated with Aliso Canyon litigation 3.59 3.59 2 Impact from foreign currency and inflation and associated undesignated derivatives 0.13 0.13 Net unrealized losses