Accessibility StatementSkip Navigation SAN DIEGO, Dec. 2, 2025 /PRNewswire/ -- For an unprecedented 20th year in a row, San Diego Gas & Electric (SDG&E) has been awarded the ReliabilityOne Award for Outstanding Reliability Performance in the Western Region by PA Consulting. This milestone achievement underscores the company's long-term commitment to critical investments that enhance grid resilience and reliability for millions of consumers.SDG&E's reliability performance has outpaced that of its western pe ...

Sempra (SRE), based in San Diego, California, operates as an energy infrastructure company. Valued at $61.8 billion by market cap, the company focuses on delivering sustainable energy to consumers, as well as invests in, develops, and operates transmission and distribution infrastructures. Companies worth $10 billion or more are generally described as “large-cap stocks,” and SRE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within ...

Core Insights - Sempra Energy (SRE) is enhancing operational reliability and customer service through strategic investments while expanding its renewable energy portfolio [1][4] Group 1: Growth Catalysts - The company plans to invest $13 billion by 2025, focusing on transmission and distribution upgrades to meet rising electricity demand, particularly from AI data centers [2] - Capital investments are expected to increase by approximately 30% from 2026 to 2029, supporting a projected rate base growth of about 10% annually through 2025-2029 [2] - Sempra Infrastructure is advancing natural gas liquefaction export projects, with significant construction progress on ECA LNG Phase 1 and Port Arthur LNG Phase 1 as of September 2025 [3] Group 2: Renewable Energy Initiatives - Sempra Energy is actively growing its renewable energy portfolio to leverage economic and ESG incentives in the utility-scale renewable energy market [4] - As of December 31, 2024, Sempra Infrastructure had 1,044 megawatts (MW) of fully contracted capacity from operating wind and solar facilities, with an additional 2,318 MW of residential and commercial rooftop solar capacity in SDG&E's service area [4] Group 3: Stock Performance - Over the past six months, Sempra Energy shares have increased by 20.4%, outperforming the industry's growth of 17.1% [7]

Core Points - The U.S. Federal Energy Regulatory Commission (FERC) has granted a five-year extension for the completion of Sempra's Cameron LNG export facility in Louisiana [1] Company Summary - Sempra's Cameron LNG export facility is now allowed additional time to finalize construction, indicating regulatory support for the project [1] Industry Summary - The extension reflects ongoing developments in the U.S. LNG export sector, which is crucial for meeting global energy demands [1]

Summary of Key Points from the Conference Call Industry Overview - The focus remains on electricity demand, AI/power needs, and their impact on equities within the Energy, Utilities, and Mining sectors [1][5] Company Insights EQT (Oil & Gas) - EQT is highlighted as a high-quality equity for exposure to power demand, being a low-cost Appalachian producer with significant inventory depth [2] - The company benefits from extensive midstream infrastructure post-ETRN acquisition, enhancing local project interconnectivity [2] - Positive outlook maintained with a 12-month price target of $66 per share, reflecting an 8.5% target FCF yield on 2026/2027 estimates [2] Kinder Morgan (KMI) (Midstream) - KMI is viewed as a top opportunity due to its role in transporting ~40% of US natural gas and its interconnectivity across key regions [3] - The company is in discussions for $10 billion of pre-FID projects aimed at growing power demand, with a notable discount in stock price compared to peers [6] Sempra Energy (SRE) (Utilities) - SRE is rated as a Buy, with Oncor expected to benefit from data center load growth and a supportive regulatory environment [7] - The stock trades at 17.6x 2026E P/E, with an expected EPS growth rate of 10% through 2029, suggesting a higher multiple is warranted [7] Duke Energy (DUK) (Utilities) - DUK is also rated as a Buy, with a price target of $141, reflecting a 19.5x P/E multiple on estimates [7] - The company plans to increase capex to $95-$105 billion due to rising demand, with a competitive advantage in gas generation [7] MasTec (MTZ) (Energy Services) - MTZ is positioned well for growth due to increased utility capital spending and upcoming T&D projects starting in mid-2026 [8] - The stock trades at ~13x 2026 EV/EBITDA, slightly below the target of 14x, indicating potential for upside [8] Array Technologies (ARRY) (Clean Technology) - ARRY is seen as a compelling investment in the utility-scale solar sector, trading at a P/E of 11.1x compared to peers at 14.2x [10] - The company has improved its growth outlook and is experiencing bookings acceleration, which should lead to margin expansion [10] Market Dynamics - The overall sentiment is constructive regarding growing power demand, which is expected to support gas demand growth and infrastructure development [3] - There is a noted disconnect in valuations, particularly for ARRY, which is trading at a significant discount despite improved growth prospects [10] Risks and Considerations - Key risks for companies include lower commodity prices, execution risks on capital plans, and regulatory uncertainties [60] - Investors are advised to consider the potential for LNG cargo cancellations impacting the US gas market later in the decade [41] Conclusion - The conference call highlighted a positive outlook for several companies within the Energy, Utilities, and Mining sectors, driven by increasing power demand and strategic capital investments. However, investors should remain cautious of potential risks associated with commodity price fluctuations and execution challenges.

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% ...

Core Viewpoint - Sempra's management is increasing focus on Texas, which is expected to drive earnings growth in the medium term according to Goldman Sachs [1] Group 1: Analyst Upgrades and Price Target - Analyst Carly Davenport upgraded Sempra's rating from Neutral to Buy and raised the price target from $88 to $106 [2] - The Texas utility, Oncor, is well-positioned to benefit from growth in data center load and higher business, infrastructure, and population growth in the state [2] Group 2: Regulatory Environment and Capital Investments - Oncor is expected to benefit from a "constructive" regulatory environment [3] - Management plans to increase capital investments in the Texas subsidiary by at least 30%, indicating potential upside [3] Group 3: Earnings Growth Projections - Expected EPS growth for Oncor has been raised to approximately 21% for the period 2025-2029, up from 15% previously, while the consolidated company's EPS growth is now projected to exceed 10%, compared to around 9.5% before [4] - Sempra's shares rose by 0.81% to $92.97 at the time of publication [4]

Company Overview - Sempra (SRE) has a market capitalization of $60.3 billion and is a prominent energy infrastructure company focusing on energy distribution, transmission, and infrastructure development in the U.S. and international markets, aiding the energy transition with electricity and natural gas services [1] Stock Performance - Over the past 52 weeks, SRE shares have underperformed the broader market, rising only 5.9% compared to a 14.5% increase in the S&P 500 Index [2] - Year-to-date, SRE shares are up 6.5%, while the S&P 500 has gained 15.4% [2] - SRE has also lagged behind the Utilities Select Sector SPDR Fund (XLU), which returned 14.9% over the same period [3] Financial Performance - Sempra reported a better-than-expected Q3 2025 adjusted EPS of $1.11, driven by strong performance at its Texas utility Oncor, which is expanding its grid to meet rising power demand [4] - For the fiscal year ending December 2025, analysts expect SRE's adjusted EPS to decline by 2.6% year-over-year to $4.53 [5] - The company's earnings surprise history is mixed, beating consensus estimates in three of the last four quarters [5] Analyst Ratings and Price Targets - Among 19 analysts covering SRE, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings, one "Moderate Buy," and nine Holds [5] - Morgan Stanley analyst David Arcaro raised the price target on Sempra Energy to $99, maintaining an "Overweight" rating, with a mean price target of $96.57, indicating a 3.8% premium to current levels [6] - The highest price target of $115 implies a potential upside of 23.6% from current price levels [6]

Financial Performance - The company reported a significant increase in revenue, reaching $5.2 billion for the quarter, representing a 15% year-over-year growth[12]. - Net income for Q3 2025 was $577 million, a 6.1% increase from $544 million in Q3 2024[22]. - Comprehensive income for Q3 2025 reached $580 million, compared to $461 million in Q3 2024, reflecting a significant improvement[22]. - Net income for the nine months ended September 30, 2025, was $1,588 million, a decrease of 36.7% compared to $2,511 million in 2024[25]. - Total revenues for Sempra reached $3,151 million for the three months ended September 30, 2025, an increase of 13.5% from $2,776 million in the same period of 2024[138]. - Total revenues for the nine months ended September 30, 2025, were $9,953 million, an increase from $9,427 million in the same period of 2024, representing a growth of 5.6%[139]. User Engagement - User data showed a 20% increase in active users, totaling 10 million, indicating strong customer engagement[12]. Future Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 10% to 12%[12]. - New product launches are expected to contribute an additional $300 million in revenue over the next fiscal year[12]. - The company is expanding its market presence in Latin America, targeting a 25% increase in market share by 2025[12]. Strategic Initiatives - A strategic acquisition of a smaller competitor was completed, valued at $1.2 billion, aimed at enhancing technological capabilities[12]. - The company plans to invest $500 million in renewable energy projects over the next three years[12]. - Research and development expenses increased by 18%, totaling $400 million, to support innovation initiatives[12]. Financial Position - Total assets increased to $106.919 billion as of September 30, 2025, up from $96.155 billion at the end of 2024, indicating strong growth[23]. - Current liabilities rose to $19.988 billion in Q3 2025, compared to $9.676 billion in Q4 2024, highlighting increased short-term obligations[24]. - Long-term debt decreased to $28.985 billion in Q3 2025 from $31.558 billion in Q4 2024, showing improved debt management[24]. - Cash and cash equivalents significantly decreased to $5 million from $1.565 billion, indicating a potential liquidity concern[23]. - The balance of total equity at September 30, 2025, was $38,286 million, compared to $35,880 million in 2024, reflecting a 6.7% increase[28]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $3,084 million, up from $2,919 million in 2024, reflecting an increase of 5.7%[32]. - The cost of electric fuel and purchased power for the three months ended September 30, 2025, was $135 million, compared to a decrease of $5 million in the same period of 2024[32]. Dividends and Shareholder Returns - Common dividends paid increased to $1,195 million from $1,121 million, reflecting a 6.6% rise[25]. - The company declared dividends of $1,262 million for common stock in the nine months ended September 30, 2025, compared to $1,177 million in 2024, representing a year-over-year increase of 7.2%[32]. Debt and Financing - Issuances of debt (maturities greater than 90 days) reached $8,892 million, up from $6,437 million, marking a 38.3% increase[25]. - The weighted-average interest rate for Sempra's short-term debt was 4.84% as of September 30, 2025, down from 5.03% at the end of 2024[200]. - Sempra had an aggregate capacity of $10.2 billion under committed lines of credit as of September 30, 2025, supporting liquidity and commercial paper programs[190]. Regulatory and Compliance - The company anticipates continued growth in utility revenues driven by regulatory adjustments and infrastructure investments[147]. - SDG&E submitted a Track 2 request for $1.5 billion in wildfire mitigation costs incurred from 2019 to 2022, with a proposed decision expected by the end of 2025[153]. Asset Management - The company reported a total of $28.465 billion in assets held for sale as of September 30, 2025, indicating potential divestitures[23]. - Total inventories for Sempra increased to $565 million as of September 30, 2025, compared to $559 million as of December 31, 2024[89]. Taxation - The effective income tax rate for Sempra was 165% for the three months ended September 30, 2025, compared to -32% for the same period in 2024[128]. - Sempra's income tax expense for the three months ended September 30, 2025, was $482 million, compared to an income tax benefit of $105 million for the same period in 2024[128].

Financial Data and Key Metrics Changes - The company reported third quarter 2025 adjusted EPS of $1.11, an increase from $0.89 in the prior period [5][17] - Full year 2025 adjusted EPS guidance remains at $4.30-$4.70, with 2026 EPS guidance set at $4.80-$5.30 [6][21] - Third quarter 2025 GAAP earnings were $77 million, or $0.12 per share, compared to $638 million, or $1 per share in the same period last year [17] Business Line Data and Key Metrics Changes - Sempra California saw a $76 million increase in earnings primarily from higher income tax benefits, offset by higher net interest expense [18] - Sempra Texas reported $45 million of higher equity earnings due to increased invested capital and Oncor's system resiliency plan [19] - Sempra Infrastructure experienced a $26 million increase from higher asset optimization, despite lower transportation results [19] Market Data and Key Metrics Changes - Oncor's active load connections increased over 10% from the prior quarter, with a premise count increase of 16,000 [15] - The Texas 765 transmission expansion is projected to require $32 billion-$35 billion for full buildout, with Oncor expected to surpass 50% of this investment [16] Company Strategy and Development Direction - The company is focusing on lower risk and higher value transmission and distribution investments, particularly in Texas [4] - A significant transaction involved selling a 45% stake in Sempra Infrastructure Partners for $10 billion, aimed at improving business growth and capital efficiency [7][8] - The company is prioritizing capital allocation to Texas, anticipating substantial increases in its capital plan [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth of utilities, particularly in Texas, and the importance of maintaining a strong balance sheet [30] - The company is optimistic about achieving strong year-over-year growth and is tracking several regulatory decisions that will impact financial results [18][62] Other Important Information - The enactment of California SB 254 is viewed as a significant de-risking event for California Electric Utilities [10] - The company is actively engaged in settlement discussions regarding Oncor's base rate review, with a hearing scheduled for November 17 [35] Q&A Session Summary Question: Balance sheet capacity for increased CapEx at Oncor - Management indicated that proceeds from the Sempra Infrastructure transaction are expected to eliminate the need for common equity in the 2025-2029 financing plan [26][27] Question: Update on Texas transmission expansion - Management confirmed ongoing settlement discussions and expressed confidence in the strength of their case regarding Oncor's base rate review [34][35] Question: Status of the SIP transaction and tax implications - Management confirmed that a 20% tax leakage estimate remains valid, with ongoing evaluations of the transaction's tax efficiency [42] Question: Load growth potential in Texas - Oncor is confident in doubling its load by 2030, driven by the state's desire to accelerate the transmission plan [53][54] Question: Confidence in achieving ROEs with increased capital spending - Management noted that Oncor's authorized ROE of 9.7% has been under-earning due to regulatory lag, but improvements are expected with the resolution of ongoing matters [95]