HOUSTON, July 18, 2024 /PRNewswire/ -- Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today announced that Port Arthur LNG Phase 2 and Bechtel Energy (Bechtel) have signed a fixed-price engineering, procurement and construction (EPC) contract for the Port Arthur LNG Phase 2 project under development in Port Arthur, Texas. "We are thrilled to achieve this milestone with Bechtel for the Port Arthur LNG Phase 2 development project and are confident that our continued collaboration with t ...

Core Insights - Sempra Energy (SRE) is a major regulated electric and gas utility serving nearly 40 million consumers across North America, with operations segmented into Sempra California, Sempra Texas Utilities, and Sempra Infrastructure [1][7] Financial Performance - SRE's adjusted diluted EPS for Q1 2024 was $1.34, down 8.2% year-over-year, but exceeded analyst expectations by $0.05 [4][11] - Total revenue for Q1 2024 fell by 44.5% year-over-year to $3.6 billion, significantly below analyst consensus by $1.9 billion [11] - Natural gas revenue dropped by 57.6% year-over-year to $2.1 billion, primarily due to lower natural gas costs [12][11] - Electric revenue increased by 2.8% year-over-year to nearly $1.1 billion, attributed to income tax credits and higher transmission revenue [23] Growth Outlook - The company affirmed its FY 2024 adjusted EPS guidance range of $4.60 to $4.90, indicating a 3% growth rate over 2023 [13][14] - SRE's long-term adjusted diluted EPS growth rate is projected at 6% to 8% [19][25] - The company plans to invest $48 billion in capital over the next five years to support its growth targets [25] Valuation - SRE's current P/E ratio is 15.9, below its 10-year average of 18.7, suggesting the stock may be undervalued [6] - A fair value estimate for SRE is approximately $84 per share, indicating a 9% discount from the current share price of $76 [6][19] Dividend Information - SRE has a forward dividend yield of 3.2%, below the sector median of 4%, but maintains a secure payout ratio of 51.1% for 2024 [17] - The company has a 10-year compound annual dividend growth rate of 6.6%, which is above the sector median [17] Strategic Developments - Sempra California is expecting a proposed decision for General Rate Case (GRC) in Q2, with a final decision anticipated by year-end [13] - Sempra Texas has filed a $3 billion System Resiliency Plan, with a decision expected from the Public Utilities Commission of Texas (PUCT) by year-end [25]

Core Insights - The planned expansion of Port Arthur LNG aims to enhance the distribution of U.S. natural gas globally, improving energy security and providing a lower-carbon alternative to coal for electricity production [2][3] - Sempra is recognized as a leader in sustainable business practices and operational excellence, serving nearly 40 million consumers across significant markets [3] - The Port Arthur LNG facility has the potential to expand to eight trains, positioning it as a major LNG export facility and addressing the demand for lower-carbon fuels [7][13] Company Overview - Sempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers, with a strong emphasis on electrification and energy resilience [3] - The company is included in the Dow Jones Sustainability Index North America and recognized in The Wall Street Journal's Best Managed Companies [3] - Sempra Infrastructure is advancing infrastructure projects within the Port Arthur Energy Hub, including the proposed Titan Carbon Sequestration project [7] Strategic Developments - Aramco is positioning itself as a strategic partner in the Port Arthur LNG Phase 2 project, aiming to grow its gas portfolio to meet the global demand for lower-carbon energy sources [7] - The Port Arthur LNG Phase 1 project is currently under construction, consisting of two trains and associated facilities, while Phase 2 will add up to two additional trains capable of producing up to 13 million tons per annum (Mtpa) [13]

Core Viewpoint - The Sempra Foundation is committed to enhancing community resilience against severe weather events by supporting disaster relief efforts, specifically through a $50,000 contribution to the American Red Cross for those affected by wildfires in New Mexico [1][4]. Group 1: Sempra Foundation's Mission and Contributions - The Sempra Foundation aims to improve community resilience in the face of increasing severe weather events and is proud to support the Red Cross in delivering critical supplies to affected communities in New Mexico [1]. - The Foundation is pledging up to $50,000 to assist in the distribution of essential resources to those impacted by fast-moving fires [1][4]. - Founded in 2007, the Sempra Foundation focuses on investing energy and resources into efforts that significantly benefit people during critical times, encouraging employee engagement in charitable activities [3]. Group 2: Red Cross and Relief Efforts - The Red Cross and its partners have established numerous shelters providing meals, health services, and relief supplies to affected individuals [2]. - Individuals interested in supporting relief efforts are encouraged to visit the Red Cross website [2]. Group 3: Community Impact - The Sempra Foundation expresses empathy for families and businesses affected by the wildfires in New Mexico, highlighting the region's cultural and natural significance [5].

Core Perspective - Sempra emphasizes the importance of diverse perspectives in its boardroom to support its mission of becoming North America's premier energy infrastructure company, highlighting the appointment of Jennifer M. Kirk as a significant addition to the board [1]. Company Overview - Sempra is a leading North American energy infrastructure company that delivers energy to nearly 40 million consumers and owns one of the largest energy networks in the continent, focusing on enhancing energy resilience in major markets such as California, Texas, and Mexico [4]. - The company is recognized for its sustainable business practices and operational excellence, as evidenced by its inclusion in the Dow Jones Sustainability Index North America and The Wall Street Journal's Best Managed Companies [4]. Board Composition - With the appointment of Jennifer M. Kirk, Sempra's board will consist of 10 directors, three of whom have been newly elected in the past five years, reflecting the company's commitment to board refreshment and diversity [5]. - Kirk will serve on the audit committee and the safety, sustainability, and technology committee, bringing her extensive experience in finance and accounting to the board [5][6]. Executive Background - Jennifer M. Kirk, prior to her appointment at Sempra, was the global controller and chief accounting officer at Medtronic and has over 20 years of experience in the energy industry, including significant roles at Occidental Petroleum Corporation [3][6].

At the close of 2023, 38% of SoCalGas' over-the-road fleet was powered by low- and zero-emissions energy sources. SoCalGas' current over-the-road fleet vehicles include 700 RNG Ford F-250 service pickup trucks and 50 Toyota Mirai hydrogen fuel cell electric vehicles (HFCEV). "I applaud SoCalGas on its efforts to accelerate the transition of its truck fleet to zero-emissions," said Wayne Nastri, South Coast Air Quality Management District executive officer. "These trucks reduce smog-forming emissions making ...

Core Points - Southern California Gas Co. (SoCalGas) is actively participating in the fight against food insecurity by mobilizing 100 volunteers to sort over 1.8 million pounds of food donations collected through the "Stamp Out Hunger" Food Drive [1][2] - The company is also making a $25,000 donation to Labor Community Services (LCS), which is expected to assist approximately 1,000 families facing food insecurity for up to five days [1][2] - SoCalGas has a long-standing partnership with LCS, having supported their initiatives since 2007, and in 2023, the company helped sort 74,000 pounds of food for distribution to food banks [3] Community Engagement - The "Stamp Out Hunger" Food Drive is a collaborative effort involving 45 post offices and 51 community partners, aimed at ensuring local food banks have sufficient stock during spring and summer months [2] - SoCalGas emphasizes the importance of community solidarity in addressing hunger, as highlighted by various leaders in the labor movement [2] - The company’s involvement reflects its commitment to social responsibility and community support, aligning with its broader sustainability strategy [5] Financial Contributions - In 2023, SoCalGas contributed $19.2 million in charitable giving, with $15.4 million directed towards social impact initiatives [5] - The planned investment of $50 million over five years into underserved communities is part of SoCalGas' ASPIRE 2045 sustainability strategy, which aims to enhance diversity and work towards a carbon-neutral future [5] Company Overview - SoCalGas is the largest gas distribution utility in the United States, serving approximately 21 million consumers across 24,000 square miles in Central and Southern California [8] - The company is focused on delivering affordable and reliable gas service while supporting California's clean energy transition [8] - SoCalGas aims to achieve net-zero greenhouse gas emissions by 2045 and plans to replace 20% of its traditional natural gas supply with renewable natural gas by 2030 [9]

Core Viewpoint - Sempra's recent earnings report indicates a decline in both earnings and revenues, raising concerns about future performance as estimates trend downward [2][3][6]. Financial Performance - Sempra reported Q1 2024 adjusted EPS of $1.34, missing the Zacks Consensus Estimate of $1.35 by 0.7% and down 8.2% from $1.46 in Q1 2023 [2]. - Total revenues for the quarter were $3.64 billion, a significant decline of 44.5% from $6.66 billion in the same quarter last year, and missed the consensus estimate of $6.17 billion by 41% [3]. Segmental Update - Sempra California reported earnings of $582 million, down from $618 million year-over-year [4]. - Sempra Texas Utility saw an increase in earnings from $83 million to $183 million compared to the previous year [4]. - Sempra Infrastructure's earnings decreased to $131 million from $315 million year-over-year [4]. - The Parent and Other segment reported a loss of $95 million, wider than the loss of $47 million in the prior year [4]. Financial Update - As of March 31, 2024, Sempra's cash and cash equivalents increased to $606 million from $236 million at the end of 2023 [5]. - Long-term debt and finance leases rose to $29.52 billion from $27.76 billion over the same period [5]. - Cash flow from operating activities decreased from $1.98 billion in Q1 2023 to $1.85 billion in Q1 2024 [5]. Guidance - Sempra reiterated its 2024 earnings projection of $4.60-$4.90 per share, with the Zacks Consensus Estimate at $4.82 per share [6]. - The company also reaffirmed its 2025 earnings guidance of $4.90-$5.25 per share and expects a long-term EPS growth rate of 6-8% [6]. Market Outlook - Estimates for Sempra have been trending downward, indicating a potential decline in stock performance [8]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [8]. Industry Comparison - Sempra operates within the Zacks Utility - Gas Distribution industry, where National Fuel Gas (NFG) has seen a slight gain of 0.8% over the past month [9]. - National Fuel Gas reported revenues of $629.94 million, reflecting a year-over-year decline of 12.2%, with an EPS of $1.79 compared to $1.54 a year ago [9].

Core Viewpoint - Sempra Energy is positioned to benefit from systematic investments aimed at enhancing operational reliability and meeting rising demand, while also expanding its LNG operations to become a leading exporter in the U.S. [1] Group 1: Investment Plans - The company has a capital investment plan of $40.4 billion for 2024-2028, focusing on infrastructure improvements to serve customers more efficiently, with allocations of $21.4 billion for Sempra California, $12.9 billion for Sempra Infrastructure, and $3.4 billion for Sempra Texas Utilities [2] - In 2024, Sempra plans to invest $9.20 billion, primarily for the PA LNG Phase 1 project, ECA LNG Phase 1 project, natural gas pipelines, and upgrades to transmission and distribution at regulated public utilities, expecting a 9% annual rate base growth from 2024 to 2028 [3] Group 2: Market Position and Demand - There is a high global demand for natural gas as a clean alternative to coal, and Sempra Energy is strategically positioned in North America to capitalize on the rising demand for LNG [4] - Utility providers, including Sempra Energy, are increasing renewable energy in their portfolios to qualify for financial and ESG incentives as industries shift towards clean energy [5] Group 3: Financial Metrics and Risks - Sempra Energy's trailing 12-month EV/Sales ratio is 5.54, which is higher than the industry average of 3.98 and above its one-year range median of 4.59, raising concerns among investors [6] - The company's infrastructure is vulnerable to adverse weather, natural disasters, and accidents, which could lead to power outages, project disruptions, and increased costs affecting earnings and revenues [7] Group 4: Comparative Stocks - Other stocks in the sector with better rankings include Atmos Energy Corp. (ATO), DTE Energy (DTE), and MDU Resources Group (MDU), all currently holding a Zacks Rank 2 (Buy) [8][9]

Group 1 - Southern California Gas Company (SoCalGas) has declared quarterly dividends of $0.375 per share for its preferred stock and Series A preferred stock, payable on July 15, 2024, to shareholders of record on June 10, 2024 [1] - SoCalGas is the largest gas distribution utility in the United States, serving approximately 21 million consumers across 24,000 square miles in Central and Southern California [2] - The company aims to support California's clean energy transition by delivering affordable and reliable gas service while integrating renewable resources [2][3] Group 2 - SoCalGas has set a goal to achieve net-zero greenhouse gas emissions by 2045 and to replace 20% of its traditional natural gas supply with renewable natural gas (RNG) by 2030 [3] - The company is investing in its gas delivery infrastructure while striving to keep customer bills affordable [3] - SoCalGas is a subsidiary of Sempra, an energy infrastructure company based in San Diego [3]