Slide 1: Ideas with energy: First Quarter 2024 Earnings Results
Ideas with energy First Quarter 2024 Earnings Results May 7, 2024
Slide 2: Information Regarding Forward-looking Statements
Information Regarding Forward-looking Statements 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 guaran
Slide 3: Table of Contents
Table of Contents • Executive Summary • Business Updates • Financial Results • Closing Remarks | 3
Slide 4: Executive Summary
Executive Summary Robust macro tailwinds and well-defined corporate strategy are driving long-term durable growth and earnings visibility • Sempra California: Proposed decision for GRC expected in Q2 with final decision expected before year-end1 • Sempra Texas: Oncor filed inaugural System Resilienc
Slide 5: Business Updates
Business Updates • CPUC proposed decision affirms CCM framework and implementation • CPUC issued residential electric fixed-charge, rate-design proposal; final decision expected in Q2-2024 • Filed CPUC application for hydrogen blending demonstration projects 1 • Oncor filed SRP for ~$3B of CapEx, su
Slide 6: Sempra Texas | Update to ERCOT Load Forecast
Sempra Texas | Update to ERCOT Load Forecast Key Highlights Growth in Peak Load1 • Texas is experiencing historic electric demand growth 2030 Estimate • ERCOT presentation shows load increasing to Permian Load 152 GW in 2030, nearly double the current 24 GW 1,2 record of 85 GW • Significant load gro
Slide 7: Sempra Texas | Oncor Proposed SRP
1 Sempra Texas | Oncor Proposed SRP 2 Key Highlights High Impact Investments • $2.9B of CapEx and $520M of O&M expense $1.8B - Overhead and Underground Resiliency and Modernization • Plan expected to reduce restoration costs, reduce outage times, increase system reliability $510M - Continued Optimiz
Slide 8: Q1-2024 Financial Results
Q1-2024 Financial Results Three months ended March 31, (Dollars and shares in millions, except EPS) 2024 2023 GAAP Earnings $ 801 $ 969 Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's comprehensive base rate review – 44 Impact from foreign currenc
Slide 9: Q1-2024 Adjusted Earnings Drivers
Q1-2024 Adjusted Earnings Drivers $56M ($13M) $922M ($24M) ($27M) ($12M) Lower ($48M) transportation Higher net revenues + Lower interest expense, Lower CPUC Higher equity higher O&M, asset supply $854M lower income tax base operating earnings from partially offset optimization, benefits + other mar
Slide 10: Closing Remarks
Closing Remarks Value Proposition • 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 high-value and low-risk T+D infrastructure • Return of capital in th
Slide 11: Appendix I
Appendix | @ SEMPRA | 11
Slide 12: Sempra Infrastructure | ESJ Complex Serving CA
1 Sempra Infrastructure | ESJ Complex Serving CA Geographic Overview 2 Cimarrón Project Overview Nameplate Capacity • 320 MW Transmission Line Expected CapEx • $550M Energization • Late 2025 Grid Connection • CAISO • Fixed-price agreement in place Turbine Provider with Vestas for 64 wind turbines Po
Slide 13: Sempra Infrastructure | Construction Pipeline
1 Sempra Infrastructure | Construction Pipeline LNG Commentary Status Location ECA LNG Phase 1 • COD expected in summer 2025 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 14: 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 15: 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 16: Appendix II: Business Unit Earnings
Appendix II Business Unit Earnings | 16
Slide 17: Sempra California
Sempra California Three months ended March 31, (Dollars in millions) 2024 2023 Sempra California GAAP Earnings $ 582 $ 618 Q1-2024 earnings are lower than Q1-2023 earnings primarily due to: • $15 million higher net interest expense, • $14 million lower income tax benefits primarily from flow-through
Slide 18: Sempra Texas
Sempra Texas Three months ended March 31, (Dollars in millions) 2024 2023 Sempra Texas Utilities GAAP Earnings $ 183 $ 83 Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's comprehensive base rate review – 44 Sempra Texas Utilities Adjusted Earnings1
Slide 19: Sempra Infrastructure
Sempra Infrastructure Three months ended March 31, (Dollars in millions) 2024 2023 Sempra Infrastructure GAAP Earnings $ 131 $ 315 Impact from foreign currency and inflation on monetary positions in Mexico 41 109 Net unrealized losses (gains) on commodity derivatives 12 (217) Net unrealized losses o
Slide 20: Parent & Other
Parent & Other Three months ended March 31, (Dollars in millions) 2024 2023 Parent & Other GAAP Losses $ (95) $ (47) Q1-2024 losses are higher than Q1-2023 losses primarily due to: • $42 million from $12 million income tax expense in 2024 compared to $30 million income tax benefit in 2023 from the i
Slide 21: Appendix III: Non-GAAP Financial Measures
Appendix III Non-GAAP Financial Measures | 21
Slide 22: Adjusted Earnings and Adjusted EPS
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 March 31, 2024: ▪ $(41) million impact from foreign currency and inflation
Slide 23: Adjusted Earnings and Adjusted EPS
Adjusted Earnings and Adjusted EPS Income tax Non- Income tax Non- Pretax expense controlling Pretax expense controlling amount (benefit)1 interests Earnings amount (benefit)1 interests Earnings (Dollars in millions, except EPS; shares in thousands) Three months ended March 31, 2024 Three months end
Slide 24: Adjusted Earnings (Losses) by Business Unit
Adjusted Earnings (Losses) by Business Unit Three months ended March 31, 2024 (Dollars in millions) 1 Sempra Texas Sempra Total Sempra California Utilities Infrastructure Parent & Other Sempra GAAP Earnings (Losses) $ 582 $ 183 $ 131 $ (95) $ 801 Impact from foreign currency and inflation on monetar
Slide 25: 2023 Adjusted EPS Guidance Range
2023 Adjusted EPS Guidance Range Sempra 2023 Adjusted EPS Guidance Range of $4.30 to $4.60 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 disallowances resultin
Slide 26: 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: ▪ $(41) million impact from foreign currency and inflation on our monetary positions in Mexico ▪ $(12) million net unreali
Slide 27: Appendix IV: Glossary
Appendix IV Glossary | 27
Slide 28: Defined Terms
Defined Terms AFUDC allowance for funds used during construction 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 between Mitsubishi and Nippon Yusen Kabushiki Kaisha, Japan LNG Investment Membe
Slide 29: Defined Terms Continued
Defined Terms Continued MOU Memorandum of Understanding Mtpa million tonnes per annum MW megawatt NCI noncontrolling interest O&M operation and maintenance expense Oncor Oncor Electric Delivery Company LLC Oncor Holdings Oncor Electric Delivery Holdings Company LLC PA LNG Port Arthur LNG PPA power p