Sempra Q1 FY2025 earnings call

• Jeff Martin mentioned the company reported first quarter 2025 adjusted EPS of $1.44, comparing favorably to prior period. Affirmed full year 2025 adjusted EPS guidance range $4.30 to $4.70 and 2026 EPS guidance $4.80 to $5.30. Plan to invest roughly $13 billion this year in energy infrastructure, with over $10 billion targeted for U.S. utilities. - Karen Sedgwick discussed Texas regulatory updates, including Oncor assessing impact of ERCOT developments and preparing to file comprehensive base rate review. In California, SDG&E and SoCalGas filed cost of capital applications. Updates on Sempra Infrastructure asset sales, LNG operations (Cimarron LNG phase one loaded 55 cargos and achieved 98% plant reliability), and progress on major construction projects like Cimarron Wind LNG and Port Arthur LNG.

Sempra California had $88 million from higher CPUC based operating margin, net of operating expenses and lower authorized cost of capital. Sempra California also had $54 million of higher income tax benefits, partially offset by higher net interest expense and other. Sempra Texas had $37 million of lower equity earnings, primarily from higher interest and operating expenses, partially offset by higher revenues from invested capital and higher consumption attributable to weather and customer growth. Sempra infrastructure had a $2 million decrease driven by lower asset optimization, partially offset by lower O&M and higher interest income.

• Affirmed full year 2025 adjusted EPS guidance range $4.30 to $4.70 and 2026 EPS guidance $4.80 to $5.30. - Projected long-term EPS CAGR of 7% to 9% for 2025 through 2029, expecting to be at the high end or above that range. - Plan to invest roughly $13 billion this year in energy infrastructure, with over $10 billion targeted for U.S. utilities.

• Potential regulatory changes affecting T&D investments in Texas and California. - Macroeconomic uncertainties potentially impacting project development, such as on Port Arthur LNG Phase 2. - Tariff impacts on cross-border energy transactions, although currently not anticipating significant impacts.

Q: How are the timelines for the SIP process, including KKR and ADIA's involvement?

A: Jeff Martin clarified the sequential process where KKR provides written offer, then Sempra has 30 days to respond, followed by ADIA's 10 days and Sempra's 30 days to respond, with an update expected on the second quarter call.

Q: What is the potential impact of macro uncertainty on Port Arthur LNG Phase 2 project development?

A: Justin Bird stated they are continuing to target FID in 2025, committed to managing cost risks and maintaining discipline to achieve targeted returns, with priorities focused on growing regulated utilities.

Q: How does the Unified Tracker bill in Texas impact Oncor's capital plan?

A: Allen Nye said House Bill 5247 (UTM bill) could moderate impacts of regulatory lag and improve credit quality, providing a streamlined mechanism, with broad support and still needing Senate approval and gubernatorial sign-off.