Group 1 - Sempra has been recognized by TIME Magazine as one of the World's Best Companies for 2024, highlighting its performance based on employee satisfaction, revenue growth, and sustainability transparency [1] - The recognition adds to Sempra's accolades for corporate excellence, including listings in The Wall Street Journal's "Best-Managed Companies," Fortune's "World's Most Admired Companies," and Newsweek's "Most Responsible Companies" [1] - Sempra's CEO emphasized the company's mission to build a leading energy infrastructure company in North America, focusing on leadership, workforce development, and customer service [1] Group 2 - Sempra is a leading North American energy infrastructure company serving nearly 40 million consumers and is recognized for its sustainable business practices [3] - The company operates one of the largest energy networks in North America, enhancing energy resilience in key markets such as California, Texas, and Mexico [3] - Sempra's commitment to safety and operational excellence is reflected in its inclusion in the Dow Jones Sustainability Index North America and the FTSE4Good Index Series [3]

Core Insights - Southern California Gas Company (SoCalGas) is promoting energy-saving tips to help customers manage energy use as cooler weather approaches, emphasizing the importance of energy efficiency for both cost savings and sustainability [1] Energy-Savings Tips for Customers - Managing heating systems by adjusting thermostats by five to eight degrees when away can significantly reduce energy expenses [2] - Optimizing appliance usage, such as ensuring dryers run efficiently and upgrading to energy-efficient models, can lead to savings of up to 20% [2][3] - Installing energy-saving fixtures like low-flow showerheads can reduce water usage and, consequently, natural gas consumption [2] - Testing for duct air leakage and sealing leaks can prevent 10%-30% higher heating and cooling costs [2] - Regularly replacing furnace filters during the heating season is recommended for optimal performance [2] Appliance Upgrade Incentives - SoCalGas is offering a limited-time rebate of 50% more for residential and multifamily customers purchasing eligible energy-efficient appliances until November 30, 2024 [4] - Energy-efficient appliances can save customers approximately $370 in energy costs over their lifetime [3] Customer Support Programs - SoCalGas provides tools like the My Energy Profile survey for personalized energy analysis and tips [4] - Customers can opt-in for text notifications regarding significant increases in natural gas prices [4] - The Energy Savings Assistance Program offers no-cost home improvements for income-qualified households [4] - The CARE program provides a 20% discount on natural gas bills for qualifying low-income households [4] Website Enhancements - SoCalGas has launched a redesigned website to improve navigation and access to information on billing and energy savings programs [5] Company Overview - SoCalGas is the largest gas distribution utility in the U.S., serving approximately 21 million consumers across 24,000 square miles in California [7] - The company aims to build a clean and innovative energy infrastructure, supporting California's clean energy transition [7] - SoCalGas has been recognized as a leader in the industry, being named one of Reuters' Top 100 Innovators in the Global Energy Transition [7]

Group 1 - Sempra's board of directors declared a quarterly dividend of $0.62 per share on common stock, payable on January 15, 2025, to shareholders of record as of December 5, 2024 [1] - Sempra is a leading North American energy infrastructure company serving nearly 40 million consumers [2] - The company owns one of the largest energy networks in North America, focusing on electrification and energy resilience in key markets such as California, Texas, and Mexico [2] Group 2 - Sempra is recognized for its sustainable business practices and operational excellence, evidenced by its inclusion in the Dow Jones Sustainability Index North America and The Wall Street Journal's Best Managed Companies [2] - The company emphasizes a high-performance culture centered on safety and operational excellence [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | --- | --- | |---------------------|------------------------------------------|--------------------------------------------------------------------------------- ...

Core Insights - Sempra Energy reported third-quarter 2024 adjusted earnings per share (EPS) of 89 cents, missing the Zacks Consensus Estimate of $1.06 by 16% and declining 17.6% from $1.08 in the prior-year quarter [1] - Total revenues for Sempra were $2.78 billion, a decline of 16.7% from $3.33 billion in the year-ago quarter, and missed the Zacks Consensus Estimate of $3.83 billion by 27.5% [2] Financial Performance - Sempra's GAAP earnings were $1.00 per share compared to $1.14 in the third quarter of 2023 [1] - Cash and cash equivalents as of September 30, 2024, totaled $560 million, up from $236 million as of December 31, 2023 [4] - Long-term debt and finance leases increased to $30.96 billion as of September 30, 2024, from $27.76 billion as of December 31, 2023 [4] - Cash flow from operating activities decreased from $5.13 billion in the first nine months of 2023 to $3.54 billion in the first nine months of 2024 [4] Segment Performance - Sempra California reported quarterly earnings of $247 million, down from $290 million in the year-ago quarter [3] - Sempra Texas Utility earnings declined from $305 million in the prior-year quarter to $261 million [3] - Sempra Infrastructure recorded earnings of $230 million, slightly up from $223 million in the year-ago quarter [3] - The Parent and Other segment reported a loss of $100 million, wider than the prior-year loss of $97 million [3] Guidance - Sempra reiterated its 2024 earnings projection in the range of $4.60-$4.90 per share, with the Zacks Consensus Estimate at $4.77 per share [5] - The company expects 2025 earnings to be in the range of $4.90-$5.25 per share, with the consensus estimate at $5.13 per share [5] - Sempra continues to anticipate a long-term EPS growth rate of 6-8% [5]

Financial Performance - Sempra reported third-quarter 2024 GAAP earnings of $638 million, or $1.00 per diluted share, a decrease from $721 million, or $1.14 per diluted share in Q3 2023[2] - Adjusted earnings for Q3 2024 were $566 million, or $0.89 per diluted share, compared to $685 million, or $1.08 per diluted share in Q3 2023[5] - For the first nine months of 2024, GAAP earnings were $2.152 billion, or $3.38 per diluted share, down from $2.293 billion, or $3.63 per diluted share in the same period of 2023[3] - Adjusted earnings for the first nine months of 2024 were $1.987 billion, or $3.12 per diluted share, compared to $2.201 billion, or $3.48 per diluted share in the first nine months of 2023[5] - Total revenues for Q3 2024 were $2,776 million, a decrease of 16.7% compared to $3,334 million in Q3 2023[28] - Net income for Q3 2024 was $759 million, down from $854 million in Q3 2023, representing a decline of 11.1%[28] - Adjusted EPS for Q3 2024 was $1.00, compared to $1.14 in Q3 2023, reflecting a decrease of 12.3%[31] - For the nine months ended September 30, 2024, total revenues were $9,427 million, down 28.5% from $13,229 million in the same period of 2023[28] Guidance and Future Outlook - Sempra updated its full-year 2024 GAAP EPS guidance range to $4.86 to $5.16 and affirmed its adjusted EPS guidance range of $4.60 to $4.90[16] - Sempra's 2024 Adjusted EPS Guidance Range is projected to be between $4.60 and $4.90, excluding significant items related to foreign currency and commodity derivatives[33] - Sempra has initiated a $3 billion at-the-market equity offering program to support general corporate purposes and future financing needs[17] Operational Highlights - Oncor Electric Delivery Company LLC expects a 2% long-term premise growth and reported a 38% year-over-year increase in new transmission point of interconnection requests[11] - Oncor anticipates a meaningful 40-50% increase to its previously announced five-year capital plan of $24 billion[12] - Construction at Energía Costa Azul LNG Phase 1 is expected to commence commercial operation in spring 2026, with the Gasoducto Rosarito Expansion Pipeline expected to reach commercial operations in Q4 2024[14] Asset and Liability Management - Total current assets decreased from $5,470 million as of December 31, 2023, to $5,099 million as of September 30, 2024[35] - Total assets increased from $87,181 million as of December 31, 2023, to $93,748 million as of September 30, 2024[37] - Total liabilities increased from $53,527 million as of December 31, 2023, to $57,868 million as of September 30, 2024[37] - Total equity increased from $33,654 million as of December 31, 2023, to $35,880 million as of September 30, 2024[37] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $3,542 million, down from $5,129 million for the same period in 2023[38] - Net cash used in investing activities was $6,296 million for the nine months ended September 30, 2024, compared to $6,304 million for the same period in 2023[38] - Common dividends paid were $1,121 million for the nine months ended September 30, 2024, compared to $1,109 million for the same period in 2023[38] Sales and Customer Metrics - Sempra California reported earnings of $247 million for the three months ended September 30, 2024, compared to $290 million for the same period in 2023[39] - Capital expenditures for Sempra California were $1,117 million for the three months ended September 30, 2024, compared to $1,144 million for the same period in 2023[40] - Sempra California gas sales decreased to 54 Bcf in Q3 2024 from 55 Bcf in Q3 2023, a decline of approximately 1.8%[41] - Total electric sales in Sempra California dropped to 857 million kWh in Q3 2024, down 20.3% from 1,075 million kWh in Q3 2023[41] - Community Choice Aggregation and Direct Access electric sales increased to 3,962 million kWh in Q3 2024, up 14.1% from 3,472 million kWh in Q3 2023[41] - Total deliveries of electric power from Oncor decreased to 46,208 million kWh in Q3 2024, a decline of 3.2% from 47,736 million kWh in Q3 2023[41] - Total electric customer meters for Sempra California increased to 1,529 thousand in Q3 2024, up from 1,515 thousand in Q3 2023, representing a growth of 0.9%[41] - Total gas customer meters for Sempra California increased to 7,107 thousand in Q3 2024, compared to 7,047 thousand in Q3 2023, reflecting a growth of 0.9%[41] - Total electric customer meters for Oncor increased to 4,027 thousand in Q3 2024, up from 3,953 thousand in Q3 2023, indicating a growth of 1.9%[41] Commodity and Currency Impact - The company reported a $178 million impact from foreign currency and inflation on monetary positions in Mexico for the nine months ended September 30, 2024[33] - The company experienced a net unrealized loss of $(13) million on commodity derivatives for the nine months ended September 30, 2024[33] - The cost of natural gas for Q3 2024 was $(99) million, a significant decrease from $(260) million in Q3 2023[28] - Wind and solar energy production decreased to 687 million kWh in Q3 2024, down 17% from 827 million kWh in Q3 2023[41] - Natural gas sales for Ecogas México remained stable at 1 Bcf in both Q3 2024 and Q3 2023[41]

Core Insights - Sempra reported quarterly earnings of $0.89 per share, missing the Zacks Consensus Estimate of $1.06 per share, and showing a decline from $1.08 per share a year ago, resulting in an earnings surprise of -16.04% [1] - The company posted revenues of $2.78 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 27.53%, and down from $3.33 billion year-over-year [2] - Sempra shares have increased by approximately 10.1% since the beginning of the year, underperforming compared to the S&P 500's gain of 21.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.45 on revenues of $4.13 billion, and for the current fiscal year, it is $4.77 on revenues of $15.57 billion [7] Industry Context - The Utility - Gas Distribution industry, to which Sempra belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Core Insights - Oncor Electric Delivery Company reported a net income of $324 million for the three months ended September 30, 2024, a decrease of $56 million compared to $380 million for the same period in 2023, primarily due to higher interest and depreciation expenses, despite increased revenues from updated interim rates and customer growth [1][2] - For the nine months ended September 30, 2024, Oncor's net income was $800 million, up from $683 million in the same period in 2023, driven by higher revenues from updated rates and customer growth [2] Financial Performance - Operating revenues for the three months ended September 30, 2024, were $1.66 billion, an increase of $68 million from $1.59 billion in the same period in 2023 [18] - Total operating expenses for the three months ended September 30, 2024, were $1.18 billion, compared to $1.09 billion in the same period in 2023, reflecting increased costs in wholesale transmission service and operation and maintenance [11][18] - The company experienced a 1.8% increase in distribution base revenues for the three months ended September 30, 2024, compared to the same period in 2023, with a weather-normalized increase of 13.3% [18][19] Regulatory Developments - Oncor filed an unopposed settlement agreement for its system resiliency plan, which includes approximately $2.9 billion in capital expenditures and $520 million in operation and maintenance expenses to enhance system resiliency [3] - The Permian Basin Reliability Plan, approved by the PUCT, outlines over $13 billion in capital investment for transmission projects, with Oncor expecting to receive a significant portion of these projects [4] Operational Highlights - In the three months ended September 30, 2024, Oncor constructed or upgraded over 800 miles of distribution and transmission lines and connected 19,000 new premises to the ERCOT grid [5] - The company entered 121 new transmission point of interconnection requests, a 38% increase from the same period in 2023, with a total of 884 active requests as of September 30, 2024 [6] Future Outlook - Oncor anticipates announcing a new five-year capital expenditure plan for 2025 through 2029 in early 2025, projecting a 40-50% increase over its previously announced 2024-2028 capital plan of $24.2 billion [8] - As of November 5, 2024, Oncor's available liquidity totaled $1.9 billion, consisting of cash and borrowing capacity [9]

Core Insights - Sempra reported third-quarter 2024 GAAP earnings of $638 million, or $1.00 per diluted share, a decrease from $721 million, or $1.14 per diluted share in the same quarter of 2023 [1][2] - Adjusted earnings for the third quarter of 2024 were $566 million, or $0.89 per diluted share, compared to $685 million, or $1.08 per diluted share in the third quarter of 2023 [1][2] - For the first nine months of 2024, GAAP earnings were $2.152 billion, or $3.38 per diluted share, down from $2.293 billion, or $3.63 per diluted share in the same period of 2023 [1][2] Financial Performance - The company’s adjusted earnings for the first nine months of 2024 were $1.987 billion, or $3.12 per diluted share, compared to $2.201 billion, or $3.48 per diluted share in the first nine months of 2023 [1][2] - Significant items affecting earnings included a $67 million impact from foreign currency and inflation on monetary positions in Mexico for the third quarter of 2024 [2][12] - Sempra's GAAP EPS guidance for full-year 2024 is updated to a range of $4.86 to $5.16, while the adjusted EPS guidance remains at $4.60 to $4.90 [6][16] Operational Highlights - Sempra California's utilities are focused on improving safety and reliability while stabilizing energy bills, with a proposed decision from the CPUC expected by year-end [3] - The San Diego region set a new record for peak electricity demand of over 5 gigawatts in September 2024, surpassing the previous record by nearly 150 megawatts [3] - Oncor Electric Delivery Company in Texas is under review for a $3 billion System Resiliency Plan, aimed at reducing risk and supporting economic expansion [4] Infrastructure Developments - Sempra Infrastructure is advancing projects in the U.S. Gulf and northern Mexico, with LNG exports playing a crucial role in energy security for U.S. allies [5] - Construction at Energía Costa Azul LNG Phase 1 is on track for commercial operation in spring 2026, while the Gasoducto Rosarito Expansion Pipeline is expected to reach commercial operations in Q4 2024 [5] - Oncor anticipates a 40-50% increase in its previously announced five-year capital plan of $24 billion, reflecting a strengthening business outlook [4] Market Position - Sempra is recognized as a leader in sustainable business practices and operational excellence, being included in the Dow Jones Sustainability Index North America [8] - The company serves nearly 40 million consumers across significant economic markets, including California, Texas, and Mexico [8]

Core Points - Sempra has been recognized as a Trendsetter for the ninth consecutive year for its civic transparency, achieving a perfect score of 100% on the CPA-Zicklin Index [1][3] - The CPA-Zicklin Index evaluates political disclosure and accountability policies for election-related spending among S&P 500 and Russell 1000 companies [2] - Sempra's commitment to ethical behavior and responsible stakeholder engagement is highlighted as foundational to its corporate strategy and long-term success [3] Company Recognition - Sempra received a raw score of 70 out of 70, resulting in an overall score of 100%, while the average score for S&P 500 companies was 59.9% [3] - Only seven companies in the S&P 500 achieved a perfect score, with those scoring 90% or higher classified as "Trendsetters" [3] - Sempra is among the first public companies designated as Model Code Companies, aligning with the CPA-Zicklin Model Code of Conduct for Corporate Political Spending [5] Additional Accolades - In addition to the CPA-Zicklin Index recognition, Sempra has been included in the FTSE4Good Index Series, CNBC and JUST Capital's "JUST 100," and the Dow Jones Sustainability Index North America [6] - The company is recognized for its sustainable business practices and high-performance culture focused on safety and operational excellence [7]