Dba Sempra · NYSE:SRE
Dba Sempra — Q2 2023 Earnings Presentation
30 slides from Dba Sempra's earnings presentation, Aug 3, 2023
Slide 1: Second Quarter 2023 Earnings Results
Second Quarter 2023 Earnings Results August 3, 2023
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 • Strategic Focus • Business Updates • Financial Results • Closing Remarks | 3
Slide 4: Executive Summary
Executive Summary Celebrating 25 Years of Success Financial Updates1 • Announcing 2-for-1 stock split – distribution date August 21, 2023 • Reporting Q2-2023 adjusted EPS of $1.88 and YTD-2023 adjusted EPS of $4.802 • Affirming FY-2023 adjusted EPS guidance range of $8.60 – $9.202 • Affirming FY-202
Slide 5: Strategic Focus on Transmission + Distribution
Strategic Focus on Transmission + Distribution Strategically positioned in large economic markets with strong growth and premium regulatory environments to deliver high quality earnings Three Growth Platforms 2023 to 2027 Capital Plan At Sempra, we are on a mission to build a higher growth and lower
Slide 6: Sempra California Business Update
Sempra California Business Update SDGE • Increased electrification – Port of San Diego is electrifying operations, zero emission vehicles increased by 35% to 112,000 over the last year in San Diego • Commissioned 171 MW of utility-owned energy storage to support grid resiliency • CAISO transmission
Slide 7: Sempra Texas Business Update
Sempra Texas Business Update Operational + Regulatory Status Robust Macroeconomic Trends • Second quarter of 2023, Oncor: ▪ Connected 21,000 additional premises ▪ Received 92 new transmission interconnection requests ▪ Built / hardened ~690 miles of T+D lines • ERCOT saw increased demand resulting i
Slide 8: Texas Legislative Summary
Texas Legislative Summary Positive legislative reforms should improve ability to reliably serve customers while reducing regulatory lag and supporting increased investments Bill Description SB 1015 Allows for second distribution tracker filing, including in the year when a rate (Distribution tracker
Slide 9: Sempra Infrastructure Business Update
1 Sempra Infrastructure Business Update Regulatory • Los Ramones Norte Pipeline: New tariffs due to constructive rate resolution Construction • ECA LNG Phase 1: More than 7.7 million hours without a recordable LTI • GRO Expansion: More than 800,000 hours without a recordable LTI • Port Arthur LNG Ph
Slide 10: Port Arthur Energy Hub
Port Arthur Energy Hub 1 Sempra Infrastructure expects its broad platform to create portfolio synergies and enhance the total value of Port Arthur 2 LNG + Net-Zero Solutions Commentary Status 3 Port Arthur LNG Phase 1 • Targeted Train 1 COD 2027, Train 2 COD 2028 Construction (~13 Mtpa) Port Arthur
Slide 11: Q2-2023 Financial Results
Q2-2023 Financial Results Three months ended Six months ended June 30, June 30, (Dollars and shares in millions, except EPS) 2023 2022 2023 2022 (Unaudited) GAAP Earnings $ 603 $ 559 $ 1,572 $ 1,171 Impact associated with Aliso Canyon litigation – 32 – 98 Equity losses from a write-off of rate base
Slide 12: Q2-2023 Adjusted Earnings Drivers
Q2-2023 Adjusted Earnings Drivers $32M $14M ($26M) ($40M) $33M ($45M) $626M Net Lower Equity $594M Higher Regulatory Earnings from CPUC Base Interest Higher Higher Lower Higher Operating Income + Earnings Transportation Tax Benefit + Expenses + Margin + Higher Tax Attributable to Tariffs Offset by H
Slide 13: Closing Remarks
Closing Remarks Over the past 25 years, we have transformed our business from a regional utility located in Southern California to one of the leading infrastructure companies in North America. We are excited about the opportunities in front of us as we continue to execute on our record five-year cap
Slide 14: Appendix I
Appendix | @® SEMPRA | 14
Slide 15: Sempra Infrastructure Growth Pipeline
Sempra Infrastructure Growth Pipeline 1 2 LNG + Net-Zero Solutions Commentary Status 3 ECA LNG Phase 1 • COD expected summer 2025 Construction (~3 Mtpa) 3 Port Arthur LNG Phase 1 • Targeted Train 1 COD 2027, Train 2 COD 2028 Construction (~13 Mtpa) Cameron LNG Phase 2 Train 1 – 3 Debottlenecking • T
Slide 16: Sempra Infrastructure Growth Pipeline Continued
Sempra Infrastructure Growth Pipeline Continued 1 Energy Networks Commentary Status 3 • Construction completed, pending regulatory requirements Topolobampo Terminal Commissioning • COD targeted Q4-2023 3 • Expanding gas pipeline delivery to ECA LNG Phase 1 + Baja GRO Expansion Construction • COD tar
Slide 17: Appendix II Business Unit Earnings
Appendix II Business Unit Earnings | 17
Slide 18: Sempra California | SDGE
Sempra California | SDGE Three months ended Six months ended June 30, June 30, (Unaudited, dollars in millions) 2023 2022 2023 2022 SDGE GAAP Earnings $ 184 $ 176 $ 442 $ 410 Q2-2023 earnings are higher than Q2-2022 earnings primarily due to: • $11 million higher CPUC base operating margin, net of o
Slide 19: Sempra California | SoCalGas
Sempra California | SoCalGas Three months ended Six months ended June 30, June 30, (Unaudited, dollars in millions) 2023 2022 2023 2022 SoCalGas GAAP Earnings $ 155 $ 87 $ 515 $ 421 Impact associated with Aliso Canyon litigation – 32 – 98 SoCalGas Adjusted Earnings1 $ 155 $ 119 $ 515 $ 519 Q2-2023 e
Slide 20: Sempra Texas Utilities
Sempra Texas Utilities Three months ended Six months ended June 30, June 30, (Unaudited, dollars in millions) 2023 2022 2023 2022 Sempra Texas Utilities GAAP Earnings $ 160 $ 186 $ 243 $ 348 Equity losses from a write-off of rate base disallowances resulting from the PUCT's final order in Oncor's co
Slide 21: Sempra Infrastructure
Sempra Infrastructure Three months ended Six months ended June 30, June 30, (Unaudited, dollars in millions) 2023 2022 2023 2022 Sempra Infrastructure GAAP Earnings $ 208 $ 183 $ 523 $ 278 Impact from foreign currency and inflation on our monetary positions in Mexico 94 14 203 89 Net unrealized (gai
Slide 22: Parent & Other
Parent & Other Three months ended Six months ended June June 30, 30, (Unaudited, dollars in millions) 2023 2022 2023 2022 Parent & Other GAAP Losses $ (104) $ (73) $ (151) $ (286) Impact from foreign currency and inflation on our monetary positions in Mexico (1) 2 (1) 2 Deferred income tax expense a
Slide 23: Appendix III Non-GAAP Financial Measures
Appendix III Non-GAAP Financial Measures | 23
Slide 24: 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 (NCI)) in 2023 and 2022 as follows: Three months ended June 30, 2023: ▪ $(93) million impact from foreign currency an
Slide 25: Adjusted Earnings and Adjusted EPS (Unaudited)
Adjusted Earnings and Adjusted EPS (Unaudited) Income tax Non- Income tax Non- Pretax expense controlling Pretax (benefit) controlling amount (benefit)1 interests Earnings amount expense1 interests Earnings (Dollars in millions, except EPS amounts; shares in thousands) Three months ended June 30, 20
Slide 26: Adjusted Earnings (Losses) by Business Units (Unaudited)
Adjusted Earnings (Losses) by Business Units 1 (Unaudited) Three months ended June 30, 2023 (Dollars in millions) Sempra Sempra Texas Sempra Parent & Total SDGE SoCalGas California Utilities Infrastructure Other Sempra GAAP Earnings (Losses) $ 184 $ 155 $ 339 $ 160 $ 208 $ (104) $ 603 Impact from fo
Slide 27: 2023 Adjusted EPS Guidance Range (Unaudited)
2023 Adjusted EPS Guidance Range (Unaudited) Sempra 2023 Adjusted EPS Guidance Range of $8.60 to $9.20 excludes items (after the effects of income taxes and, if applicable, NCI) as follows: ▪ $(44) million equity losses from investment in Oncor Holdings related to a write-off of rate base disallowan
Slide 28: Appendix IV Glossary
Appendix IV Glossary | 28
Slide 29: Defined Terms
Defined Terms ADIA Black Silverback ZC 2022 LP (assignee of Black River B 2017 Inc.), a wholly owned affiliate of Abu Dhabi Investment Authority Bcf/d billion cubic feet per day C&I commercial and industrial CAISO California Independent System Operator Cameron LNG Total, Mitsui, and a joint venture
Slide 30: Defined Terms Continued
Defined Terms Continued HOA heads of agreement INEOS INEOS Energy Trading LTD., a subsidiary of INEOS Ltd. KKR Kohlberg Kravis Roberts & Co. L.P. kV kilovolt LNG liquefied natural gas LTI lost-time injury Mitsubishi Mitsubishi Corporation Mitsui Mitsui & Co. MOU Memorandum of Understanding Mtpa mill