Natural gas distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States. The utilities under the Zacks Utility Gas Distribution industry control miles of underground pipeline network to provide natural gas services to customers. The rising demand for clean-burning natural gas will create more opportunities for natural gas distribution companies.Sempra Energy (SRE) , with its widespread transmission and distribution lines, int ...

Company Overview - Sempra is an energy services company based in San Diego, California, involved in the sale, distribution, storage, and transportation of electricity and natural gas, with a market cap of $51.8 billion [1] - The company operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure [1] Market Position - Sempra is classified as a large-cap stock, benefiting from a dominant utility presence in California and Texas, a growing global LNG and infrastructure portfolio, and high growth potential at Oncor due to electrification and data center demand [2] Stock Performance - Sempra's stock has declined 17.1% from its 52-week high of $95.77 on November 25, 2024, and has plummeted 3.3% over the past three months, underperforming the Utilities Select Sector SPDR Fund (XLU), which returned 1.8% in the same period [3][4] - Over the longer term, Sempra's stock has dropped 9.5% in 2025 and 3.3% over the past 52 weeks, while XLU has risen 9.2% year-to-date and 8.8% over the past year [4] Financial Performance - On August 7, Sempra reported Q2 results with an adjusted EPS of $0.89, exceeding Wall Street's expectations of $0.83, while revenue was $3 billion, showing a slight year-over-year decline [5] - The company is making progress in its strategic shift towards a more utility-centric model, including regulatory gains in Texas and major construction projects in its infrastructure portfolio [5] - Sempra expects full-year adjusted EPS to be in the range of $4.30 to $4.70 [5] Analyst Ratings - Among the 17 analysts covering Sempra stock, the consensus rating is a "Moderate Buy," with a mean price target of $83.88, indicating a 5.6% premium to current price levels [6]

Core Points - Sempra Infrastructure and EQT Corporation have signed a 20-year sales and purchase agreement for the supply of 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Port Arthur LNG Phase 2 project [1][2] - The agreement is aimed at enhancing U.S. energy exports and supporting global energy security while promoting lower-carbon solutions [2] - The Port Arthur LNG Phase 2 project is expected to have a total liquefaction capacity of approximately 26 Mtpa, doubling the capacity from Phase 1 [5] Company Developments - Sempra Infrastructure has secured all major permits for the Port Arthur LNG Phase 2 project, including project approval from the Federal Energy Regulatory Commission and export authorization from the U.S. Department of Energy [3] - Bechtel has been selected for the engineering, procurement, and construction of the Port Arthur LNG Phase 2 facility, with a final investment decision targeted for 2025 [4] - The project has already attracted interest from other buyers, including a 20-year SPA with JERA Co., Inc. for 1.5 Mtpa and an expanded alliance with ConocoPhillips for 4 Mtpa [2] Industry Context - The Port Arthur LNG Phase 2 project is strategically positioned to meet global energy demand and is part of a broader effort to fortify America's role as a leading energy exporter [2] - The project aligns with the U.S. government's goals of enhancing energy security and supporting local economic development through natural gas projects [2]

Core Viewpoint - Sempra Infrastructure and ConocoPhillips have signed a 20-year sale and purchase agreement for 4 million tonnes per annum (Mtpa) of LNG from the Port Arthur LNG Phase 2 project, highlighting the growing role of U.S. LNG in global energy security [1][2]. Group 1: Project Details - The Port Arthur LNG Phase 2 project will include two liquefaction trains with a production capacity of approximately 13 Mtpa, increasing the total capacity of the facility to about 26 Mtpa [3]. - ConocoPhillips previously secured 5 Mtpa of offtake capacity for 20 years from the Phase 1 project, where it holds a 30% equity stake [2]. - In July 2025, Sempra Infrastructure entered into another 20-year SPA with JERA Co. Inc. for 1.5 Mtpa of LNG offtake from the Phase 2 project [4]. Group 2: Regulatory and Development Progress - The project has received all major permits, including approval from the Federal Energy Regulatory Commission in September 2023 and export authorization from the U.S. Department of Energy in May 2025 [5]. - Bechtel has been selected for the engineering, procurement, and construction of the Port Arthur LNG Phase 2 facility [6]. Group 3: Strategic Importance - The partnership between Sempra and ConocoPhillips aims to connect U.S. natural gas producers with growing international markets, contributing to economic growth and job creation domestically [2]. - Sempra's ongoing initiatives for 2025 focus on unlocking value in the LNG sector, positioning the company for future growth and long-term shareholder value [8].

Company Overview - Sempra (SRE) is based in San Diego and operates in the Utilities sector, with a year-to-date share price change of -6.66% [3] - The company currently pays a dividend of $0.64 per share, resulting in a dividend yield of 3.15%, which is lower than the Utility - Gas Distribution industry's yield of 3.56% and significantly higher than the S&P 500's yield of 1.48% [3] Dividend Performance - Sempra's annualized dividend of $2.58 has increased by 4% from the previous year, with a historical average annual increase of 4.28% over the last five years [4] - The company's current payout ratio is 55%, indicating that it distributes 55% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for Sempra's earnings in 2025 is projected at $4.68 per share, reflecting a year-over-year growth rate of 0.65% [5] - The company is expected to experience earnings expansion in the current fiscal year [5] Investment Appeal - Sempra is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [6]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=10&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Sempra, SDG&E, and SoCalGas for Q2 2025, detailing their financial performance and position [Sempra Financial Statements](index=10&type=section&id=Sempra%20Financial%20Statements) Sempra's YTD 2025 revenues increased to **$6.80 billion**, but net income decreased to **$1.44 billion**, with total assets growing to **$99.9 billion** Sempra Condensed Consolidated Statements of Operations Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $3,000M | $3,011M | $6,802M | $6,651M | | **Net Income** | $519M | $871M | $1,438M | $1,752M | | **Earnings Attributable to Common Shares** | $461M | $713M | $1,367M | $1,514M | | **Diluted EPS** | $0.71 | $1.12 | $2.09 | $2.38 | Sempra Condensed Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $4,169M | $5,285M | | **Property, Plant and Equipment, Net** | $64,802M | $61,437M | | **Total Assets** | $99,907M | $96,155M | | **Long-Term Debt and Finance Leases** | $34,936M | $31,558M | | **Total Sempra Shareholders' Equity** | $31,697M | $31,222M | | **Total Liabilities and Equity** | $99,907M | $96,155M | Sempra Condensed Consolidated Statements of Cash Flows Highlights (YTD, in millions) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $2,266M | $2,520M | | **Net Cash Used in Investing Activities** | ($5,563M) | ($4,168M) | | **Net Cash Provided by Financing Activities** | $1,891M | $1,618M | | **Decrease in Cash, Cash Equivalents and Restricted Cash** | ($1,406M) | ($38M) | [San Diego Gas & Electric Company (SDG&E) Financial Statements](index=18&type=section&id=San%20Diego%20Gas%20%26%20Electric%20Company%20%28SDG%26E%29%20Financial%20Statements) SDG&E's YTD 2025 operating revenues slightly decreased to **$2.68 billion**, while net income increased to **$456 million**, with total assets reaching **$31.9 billion** SDG&E Condensed Statements of Operations Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $1,262M | $1,355M | $2,682M | $2,734M | | **Operating Income** | $288M | $325M | $678M | $682M | | **Net Income** | $175M | $186M | $456M | $409M | SDG&E Condensed Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $31,854M | $30,773M | | **Property, Plant and Equipment, Net** | $25,841M | $25,111M | | **Long-Term Debt and Finance Leases** | $10,093M | $10,018M | | **Total Shareholder's Equity** | $11,020M | $10,564M | [Southern California Gas Company (SoCalGas) Financial Statements](index=24&type=section&id=Southern%20California%20Gas%20Company%20%28SoCalGas%29%20Financial%20Statements) SoCalGas's YTD 2025 operating revenues increased to **$3.29 billion**, net income rose to **$528 million**, and total assets grew to **$26.1 billion** SoCalGas Condensed Statements of Operations Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $1,268M | $1,309M | $3,288M | $3,114M | | **Operating Income** | $181M | $204M | $708M | $634M | | **Net Income** | $85M | $131M | $528M | $490M | SoCalGas Condensed Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $26,065M | $25,358M | | **Property, Plant and Equipment, Net** | $21,414M | $20,754M | | **Long-Term Debt and Finance Leases** | $7,622M | $7,031M | | **Total Shareholders' Equity** | $8,691M | $8,161M | [Notes to Condensed Consolidated Financial Statements](index=30&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, covering consolidation, VIEs, credit losses, regulatory matters, debt, derivatives, and segment information [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=88&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Sempra's and its subsidiaries' financial condition and operational results, analyzing performance drivers, segment results, capital resources, liquidity, and critical accounting estimates [Overview](index=88&type=section&id=Overview) This overview details Sempra's operational and financial results, analyzed across its three reportable segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure - Sempra operates through three reportable segments: Sempra California (SDG&E and SoCalGas), Sempra Texas Utilities (investment in Oncor), and Sempra Infrastructure[291](index=291&type=chunk)[292](index=292&type=chunk)[298](index=298&type=chunk) [Results of Operations by Registrant](index=89&type=section&id=Results%20of%20Operations%20by%20Registrant) Sempra's Q2 2025 consolidated earnings decreased to **$461 million**, primarily due to foreign currency impacts at Sempra Infrastructure, while YTD earnings were **$1.37 billion** Sempra Earnings Attributable to Common Shares by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Sempra California** | $259 | $316 | $983 | $898 | | **Sempra Texas Utilities** | $208 | $202 | $354 | $385 | | **Sempra Infrastructure** | $72 | $291 | $218 | $422 | | **Parent and other** | ($78) | ($96) | ($188) | ($191) | | **Total Sempra** | **$461** | **$713** | **$1,367** | **$1,514** | - Sempra California's YTD earnings increased by **$85 million (9%)** due to higher CPUC base operating margin and income tax benefits, partially offset by higher interest expense and a disallowed regulatory recovery[302](index=302&type=chunk) - Sempra Texas Utilities' YTD earnings decreased by **$31 million (8%)** primarily due to lower equity earnings from Oncor Holdings, driven by higher interest, depreciation, and O&M expenses[303](index=303&type=chunk) - Sempra Infrastructure's YTD earnings decreased by **$204 million (48%)**, mainly due to a **$202 million** unfavorable impact from foreign currency and inflation in Mexico and a **$26 million** tax expense for holding Ecogas for sale[304](index=304&type=chunk) [Capital Resources and Liquidity](index=107&type=section&id=Capital%20Resources%20and%20Liquidity) Sempra maintains strong liquidity with **$7.6 billion** in available credit, made **$5.6 billion** in YTD capital expenditures, and is advancing major LNG projects Available Funds at June 30, 2025 (in millions) | Registrant | Unrestricted Cash & Equivalents | Available Unused Credit | | :--- | :--- | :--- | | **Sempra** | $155 | $7,628 | | **SDG&E** | $28 | $1,500 | | **SoCalGas** | $0 | $989 | - Sempra established a **$3.0 billion** ATM program in November 2024, with approximately **$2.6 billion** remaining available for sale as of June 30, 2025[377](index=377&type=chunk)[383](index=383&type=chunk) Capital Expenditures and Investments YTD (in millions) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Sempra California** | $2,315 | $2,212 | | **Sempra Texas Utilities** | $971 | $385 | | **Sempra Infrastructure** | $2,323 | $1,619 | | **Total Sempra** | **$5,612** | **$4,217** | - Sempra Infrastructure is advancing several major LNG projects, including the construction of ECA LNG Phase 1 (expected completion in 2026) and PA LNG Phase 1 (expected completion in 2027-2028), and the development of Cameron LNG Phase 2 and PA LNG Phase 2[431](index=431&type=chunk)[444](index=444&type=chunk)[452](index=452&type=chunk) [Critical Accounting Estimates](index=122&type=section&id=Critical%20Accounting%20Estimates) The company's critical accounting estimates, detailed in the Annual Report on Form 10-K, remain materially unchanged - The company's critical accounting estimates are detailed in the Annual Report and remain consistent[490](index=490&type=chunk) [New Accounting Standards](index=122&type=section&id=New%20Accounting%20Standards) Recent accounting pronouncements and their potential impact on financial reporting are discussed in Note 2 of the financial statements - Details on new accounting standards are provided in Note 2 of the Notes to Condensed Consolidated Financial Statements[491](index=491&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=123&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity prices, interest rates, and foreign currency, with a **10%** commodity price change impacting derivatives by **$16 million** and all segments experiencing inflationary pressures - A hypothetical **10%** change in commodity prices would result in a **$16 million** change in the fair value of Sempra Infrastructure's commodity derivatives as of June 30, 2025[493](index=493&type=chunk) - A **10%** change in interest rates on variable-rate debt would impact annual earnings by approximately **$4 million** for long-term debt and **$7 million** for short-term debt[495](index=495&type=chunk) - All segments are experiencing inflationary pressures on costs such as labor, materials, and supplies, with recovery at regulated utilities subject to regulatory lag and Sempra Infrastructure potentially not fully recovering costs through contractual adjustments[497](index=497&type=chunk)[498](index=498&type=chunk) [Item 4. Controls and Procedures](index=124&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for Sempra, SDG&E, and SoCalGas were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The principal executive and financial officers of Sempra, SDG&E, and SoCalGas concluded that their respective disclosure controls and procedures were effective as of June 30, 2025[500](index=500&type=chunk) - No material changes were made to the internal control over financial reporting for any of the registrants during the most recent fiscal quarter[501](index=501&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=125&type=section&id=Item%201.%20Legal%20Proceedings) No new material legal proceedings are reported beyond those detailed in Note 12 of the financial statements and other relevant sections - Material legal proceedings are discussed in Note 12 of the Notes to Condensed Consolidated Financial Statements[502](index=502&type=chunk) [Item 1A. Risk Factors](index=125&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from changing global market conditions, including tariffs and trade actions, which could increase costs, delay projects, and reduce profitability - The company faces significant risks from changing global market conditions, including the imposition of tariffs by the U.S. on imported materials like steel and aluminum, and on goods from China[504](index=504&type=chunk)[505](index=505&type=chunk) - These tariffs are expected to increase costs for construction, pipeline transportation, and electricity procurement, potentially causing delays, cost overruns, or reduced profitability for development projects and impacting rate recovery at regulated utilities[505](index=505&type=chunk) - Retaliatory actions by other countries, such as tariffs on U.S. LNG, could negatively impact demand for the company's LNG exports and adversely affect its LNG projects[507](index=507&type=chunk) [Item 5. Other Information](index=126&type=section&id=Item%205.%20Other%20Information) No material undisclosed events or Rule 10b5-1 trading arrangement adoptions or terminations by directors or officers occurred during the last fiscal quarter - No Sempra, SDG&E, or SoCalGas director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the last fiscal quarter[509](index=509&type=chunk) [Item 6. Exhibits](index=127&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including corporate governance documents, material contracts, and officer certifications - The Exhibit Index lists all required filings, including corporate governance documents, material contracts, and officer certifications pursuant to SEC rules[510](index=510&type=chunk)[511](index=511&type=chunk)[512](index=512&type=chunk)

Financial Data and Key Metrics Changes - The company reported second quarter 2025 adjusted EPS of $0.89, consistent with the prior period's results [7][27] - Full year 2025 adjusted EPS guidance remains affirmed at $4.3 to $4.7, with 2026 EPS guidance at $4.8 to $5.3 [8] - Second quarter 2025 GAAP earnings were $461 million or $0.71 per share, compared to $713 million or $1.12 per share in the same quarter of 2024 [26] Business Line Data and Key Metrics Changes - Sempra California saw a $5 million increase primarily from higher regulatory awards and electric transmission margin, offset by lower CPUC base operating margin [28] - Sempra Texas reported $6 million of higher equity earnings due to increased invested capital and customer growth, despite higher operating and interest expenses [29] - Sempra Infrastructure experienced a $26 million increase in revenues from contract modifications and higher power volumes [29] Market Data and Key Metrics Changes - The company is focusing on regulatory compacts in Texas, with the passage of House Bill 5247 expected to improve earned return on equity by 50 to 100 basis points over time [18] - The legislative environment in Texas is supportive of infrastructure expansion, enhancing growth opportunities for Sempra's Texas operations [17] Company Strategy and Development Direction - The company is transitioning towards a more utility-focused business model, with a capital plan targeting $13 billion in investments for 2025, primarily in U.S. utilities [8][12] - The Fit for 2025 campaign aims to improve customer affordability by reducing internal costs and enhancing productivity [13] - The company is advancing capital recycling initiatives and expects higher contributions from regulated utilities, improving overall credit and business risk profile [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals, citing steady execution on value creation initiatives [7] - The macroeconomic backdrop for LNG is strengthening, with growing demand in Europe and Asia expected to support Sempra's LNG assets [84][86] - The company anticipates significant growth opportunities in Texas, driven by legislative support and increasing demand for energy [17][44] Other Important Information - Sempra Infrastructure is making progress on major construction projects, including ECA LNG Phase 1 and Port Arthur LNG Phase 1, with expected revenue generation starting in 2026 [22][24] - The company has successfully hardened 100% of its transmission system in high fire threat areas, demonstrating commitment to operational excellence and safety [14] Q&A Session Summary Question: Can you provide details on the KKR LOI regarding the Sempra Infrastructure Partner sale process? - Management indicated that the LOI with KKR contemplates an equity sale in the 15% to 30% range, with flexibility based on valuation [34][36] Question: What is the timing of the capital plan update related to incremental capital at Encore in Texas? - Management expects to confirm the capital plan at the board meeting in October, with updates likely in 2026 following the base rate review [40][41] Question: How does the company view the LNG market and contracting opportunities for Port Arthur? - Management maintains a bullish outlook on LNG, driven by energy security needs in Europe and growing demand in Asia [84][86] Question: What is the expected impact of the Unified Tracker Mechanism (UTM) on earned ROE? - Management anticipates a positive impact on earned ROE of about 50 to 100 basis points, with the first UTM filing expected in the first half of next year [102][104]

Financial Data and Key Metrics Changes - The company reported second quarter 2025 adjusted EPS of $0.89, consistent with the prior period's results [6][27] - Full year 2025 adjusted EPS guidance remains affirmed at $4.3 to $4.7, with 2026 EPS guidance of $4.8 to $5.3 [6] - Second quarter 2025 GAAP earnings were $461 million or $0.71 per share, compared to $713 million or $1.12 per share in the same quarter of 2024 [26] Business Line Data and Key Metrics Changes - Sempra California saw a $5 million increase primarily from higher regulatory awards and electric transmission margin, offset by lower CPUC base operating margin [28] - Sempra Texas reported $6 million of higher equity earnings due to increased invested capital and customer growth, despite higher operating and interest expenses [29] - Sempra Infrastructure experienced a $26 million increase in revenues, mainly from a contract modification and higher power volumes [29] Market Data and Key Metrics Changes - The company is focusing on regulatory compacts in Texas, with the recently passed House Bill 5247 expected to improve earned return on equity by 50 to 100 basis points over time [16][30] - The legislative environment in Texas is supportive of infrastructure expansion, which is critical for the company's growth strategy [15] Company Strategy and Development Direction - The company is transitioning towards a more utility-focused business model, with a capital plan targeting $13 billion in investments for 2025, primarily in U.S. Utilities [6][11] - The Fit for 2025 campaign aims to improve customer affordability by reducing internal costs and enhancing productivity [12] - The company is advancing its capital recycling initiatives and expects higher contributions from regulated utilities, improving overall credit and business risk profile [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid financial performance for the year, with ongoing progress on value creation initiatives [27][30] - The company anticipates a notable increase in earnings contributions from regulated utilities, particularly in Texas, which is expected to enhance overall value [11][30] - Management highlighted the importance of legislative developments in Texas for future growth and profitability [16][30] Other Important Information - The company has made significant investments in operational excellence and safety measures, including wildfire mitigation efforts [13] - Sempra Infrastructure is advancing multiple construction projects, including ECA LNG Phase 1 and Port Arthur LNG Phase 1, which are expected to drive cash flow growth [21][23] Q&A Session Summary Question: Inquiry about KKR LOI and stake sales - Management indicated that the LOI with KKR contemplates an equity sale in the 15% to 30% range, with flexibility based on valuation [34][36] Question: Update on capital plan and execution confidence - Management confirmed that the incremental capital opportunities at Encore are outside the current base plan, with confidence in executing the capital plan due to supportive legislative developments [38][40] Question: LNG market and contracting opportunities - Management expressed a bullish view on LNG demand driven by energy security in Europe and growing needs in Asia, positioning Gulf Coast assets favorably [85][88] Question: Timing of UTM filings and ROE improvement - Management expects the first UTM filing in the first half of next year, anticipating a low-end impact on ROE this year, with potential for higher contributions in subsequent years [102][104]

Core Insights - Sempra Energy reported second-quarter 2025 adjusted earnings per share (EPS) of 89 cents, exceeding the Zacks Consensus Estimate of 83 cents by 7.2% and matching the prior year's figure [1][7] - The company's total revenues for the quarter were $3 billion, a decrease of 0.4% from $3.01 billion in the same quarter last year, and fell short of the Zacks Consensus Estimate of $3.15 billion by 4.8% [2] Revenue Breakdown - Sempra California segment earnings were $259 million, down from $316 million in the prior-year quarter [3] - Sempra Texas Utility segment earnings increased to $208 million from $202 million year-over-year [3] - Sempra Infrastructure reported earnings of $72 million, significantly lower than $291 million in the same quarter last year [3] - The Parent and Other segment reported a loss of $78 million, an improvement from a loss of $96 million in the prior-year period [3] Financial Position - As of June 30, 2025, Sempra Energy's cash and cash equivalents were $0.16 billion, a decrease from $1.57 billion as of December 31, 2024 [4] - Long-term debt and finance leases increased to $34.94 billion from $31.56 billion as of December 31, 2024 [4] - Cash flow from operating activities decreased from $2.52 billion at the end of Q2 2024 to $2.27 billion at the end of Q2 2025 [4] Future Guidance - The company reaffirmed its 2025 adjusted EPS guidance in the range of $4.30-$4.70, with the Zacks Consensus Estimate at $4.68 per share [5] - For 2026, Sempra Energy expects earnings to be in the range of $4.80-$5.30 per share, with the Zacks Consensus Estimate at $5.17 per share [5] - The company anticipates long-term EPS growth to be at the high end or above the previously projected range of 7-9% through 2029 [6][7]

Financial Performance - Reported Q2-2025 adjusted EPS of $0.89 and YTD-2025 adjusted EPS of $2.34[12] - Affirmed FY-2025 adjusted EPS guidance range of $4.30 - $4.70[12] - Affirmed FY-2026 EPS guidance range of $4.80 - $5.30[12] - Affirmed guidance at high-end or above projected EPS CAGR of 7% - 9% for 2025 through 2029[12] - Oncor invested $3 billion of CapEx, supporting premise count increase of 20,000[16] Strategic Initiatives - Invested over $5 billion of CapEx in 1H-2025[11] - Executed an effort to save $300 million by phasing out certain non-economic regulatory programs in California[11] - Initiated Ecogas sale process[11] - Extended ROFO process with existing limited partners and signed non-binding letter of intent with KKR[11] Operational Excellence and Infrastructure Development - Hardened 100% of SDGE's transmission system located in Tier 3 HFTD, with 100% of all HFTD transmission expected in 2028[11] - Safely completed 1,000th LNG cargo from Cameron LNG Phase 1 since start of operations[11] - SDGE awarded estimated $600 million of projects in finalized CAISO 2024 – 2025 Transmission Plan[16]