Core Viewpoint - Sempra is taking strategic actions to simplify its portfolio and recycle capital to support growth in its Texas and California utilities, including the sale of certain energy infrastructure assets in Mexico and a minority stake in Sempra Infrastructure Partners [1][2]. Asset Sales - Sempra Infrastructure plans to sell Ecogas México, which operates three utility franchises and has over 5,000 kilometers of distribution pipelines serving more than 600,000 consumers in Mexico [3]. - The sale of Ecogas is part of a strategy to divest non-core assets and focus on the U.S. utilities [14]. Minority Stake Sale - The company is initiating a process to sell a minority interest in Sempra Infrastructure, which has a strong position in liquefied natural gas (LNG) assets [4]. - Previous sales of non-controlling interests in Sempra Infrastructure were valued at approximately $16.9 billion in 2021 and $17.9 billion in 2022 [4]. LNG Growth Opportunities - Sempra Infrastructure is expanding its LNG franchise, with projects like Energía Costa Azul LNG Phase 1 expected to commence operations in spring 2026, and Port Arthur LNG Phase 1 on track for 2027 and 2028 [5][6]. - The company is in discussions for Phase 2 of Port Arthur LNG, which has strong commercial interest and aims for a final investment decision in 2025 [6][7]. Value Creation Initiatives - The announced sales are part of five value creation initiatives for 2025, aimed at increasing long-term value for shareholders and stakeholders [8]. - These transactions are expected to be accretive to earnings-per-share forecasts and enhance the company's credit profile [9].

Financial Data and Key Metrics Changes - The fourth quarter adjusted EPS from continuing operations was $2.11, reflecting a decrease from the previous year [27][28] - Adjusted operating income decreased by 15% to $628 million, with an adjusted operating margin decline of 230 basis points [28][29] - Net sales from continuing operations increased by 0.7% to $5 billion, while consolidated net sales were $8.3 billion, at the high end of the outlook range [17][28] Business Line Data and Key Metrics Changes - Dollar Tree's comp sales increased by 2%, with traffic up 0.7% and ticket up 1.3% [12][13] - Consumables comp increased by 4.2%, while discretionary comp was 0.4%, marking its first positive reading since Q4 of the previous year [13] - The expanded multi-price assortment contributed positively, with three-point-zero stores seeing a 220 basis point comp lift compared to other formats [14][15] Market Data and Key Metrics Changes - Middle-income customers, making up about half of the customer base, are increasingly seeking value, while higher-income customers are also turning to Dollar Tree for cost-effective options [11][12] - The company noted a shift in consumer behavior towards value-seeking alternatives across all income groups [11][12] Company Strategy and Development Direction - The sale of Family Dollar for over $1 billion is aimed at allowing Dollar Tree to focus on its core business and enhance long-term value creation [7][8] - The company plans to expand its multi-price offerings and improve operational efficiency to drive sustainable growth [10][11] - The strategic separation is expected to enable better management and focus on each brand's distinct needs [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate tariff impacts and maintain value for customers [18][19] - The outlook for fiscal year 2025 anticipates sales growth between $18.5 billion and $19.1 billion, with comparable store sales growth of 3% to 5% [36][41] - The company expects to mitigate tariff impacts through various strategies, including supplier negotiations and sourcing flexibility [19][20] Other Important Information - The company ended the year with $1.3 billion in cash and cash equivalents, with no borrowings under its revolving credit facility [31][32] - Capital expenditures for 2025 are expected to be between $1.2 billion and $1.3 billion, including approximately 400 new Dollar Tree store openings [41] Q&A Session Summary Question: Tariff mitigation strategies and new price points - Management confirmed that they have successfully mitigated 90% of the first round of tariffs and are actively working on strategies for the second round [48][49] Question: Financial impact of tariffs and sourcing portfolio - Management clarified that the first round of tariffs is included in the 2025 forecast, while the second round remains uncertain [54][55] Question: Business philosophy and margin management - Management emphasized a focus on strong margins while continuing to invest in the business for long-term growth [62][63] Question: Trends among different income groups - Management noted that all income cohorts are increasingly finding value at Dollar Tree, with a particular emphasis on middle-income shoppers [74][75] Question: Product priorities and comp growth - Management highlighted the importance of seasonal and discretionary products, aiming to balance the assortment to meet customer needs [78][79] Question: Performance of three-point-zero format stores - Management reported positive performance from three-point-zero stores, with ongoing improvements expected as the program matures [83][84]