Sempra(SRE)2025-02-25 21:57Financial Performance - Sempra reported a significant increase in revenue, reaching 1.2 billion, which is a 10% increase compared to the previous year[22]. - Sempra anticipates a continued upward trend, projecting a revenue increase of 12% for the next fiscal year, targeting 3 billion in new technology and infrastructure projects aimed at enhancing energy efficiency and reliability over the next three years[22]. - Sempra's capital expenditure for the upcoming year is projected at 500 million in annual revenue by 2026[22]. - The company has set a goal to reduce greenhouse gas emissions by 30% by 2030, aligning with regulatory expectations and market trends[22]. - Sempra aims for net-zero scope 1 and 2 GHG emissions by 2050, with an interim target of 50% reduction by 2035 relative to a 2019 baseline[181]. Strategic Acquisitions and Business Strategy - The company is actively pursuing strategic acquisitions, with a target of completing at least two significant transactions in the next 18 months[22]. - Sempra's business strategy aims to deliver safe, reliable, and increasingly clean energy while enhancing shareholder value[37]. Operational Risks and Challenges - The company faces risks from severe weather, cybersecurity threats, and regulatory changes that could impact its operations and financial performance[34]. - Severe weather, natural disasters, and physical attacks pose significant risks to the company's facilities and infrastructure, potentially leading to operational disruptions[217]. - The execution of the company's five-year capital expenditures plan is subject to risks such as financing costs, regulatory approvals, and market conditions[202]. Subsidiaries and Customer Base - SDG&E serves approximately 3.6 million electric customers and 3.3 million natural gas customers across a service territory of about 4,100 square miles[41]. - SoCalGas delivers natural gas to approximately 21.1 million customers across a service territory of about 24,000 square miles[57]. - As of December 31, 2024, SoCalGas had a total of 6,213,641 customer meters, with 5,940,904 being residential[65]. Infrastructure and Capacity - As of December 31, 2024, SDG&E's electric resources include 1,204 MW from owned natural gas facilities and 4,916 MW total capacity from various power purchase agreements[46]. - SoCalGas' natural gas facilities include 3,037 miles of transmission and storage pipelines and 52,567 miles of distribution pipelines as of December 31, 2024[58]. - Sempra Infrastructure holds a 35.1% interest in the Cameron LNG JV, which has a combined nameplate capacity of 13.9 Mtpa of LNG and an export capacity of 12 Mtpa, equating to approximately 1.7 Bcf of natural gas per day[96]. Regulatory Environment - The CPUC allows SDG&E and SoCalGas to recover 90% of hazardous waste cleanup costs and 70% of related insurance-litigation expenses under the Hazardous Waste Collaborative mechanism[173]. - California's RPS Program mandates that SDG&E procure at least 50% of its annual retail electricity from renewable sources by 2026, increasing to 95% by 2040[177]. Employee and Corporate Governance - As of December 31, 2024, Sempra has 16,773 employees, with 6,335 covered under collective bargaining agreements[190]. - The company emphasizes a strong safety culture, with annual executive compensation linked to safety metrics[187]. - Activist shareholders may influence the company's board and management, potentially leading to instability and adverse effects on business opportunities[199].