Financial Data and Key Metrics Changes - The company reported first quarter earnings of $0.83 per share, an increase from $0.62 per share in the same quarter of the previous year, reflecting strong performance despite adverse temperature impacts on sales [19][20] - The earnings for the first quarter represented more than 25% of the company's earnings guidance midpoint for 2025, reaffirming the guidance range of $3.15 to $3.25 per share [6][21] - The capital expenditure plan for 2025 through 2028 has been updated to reflect a nearly 26% increase from 18 months ago, translating into a forecasted investment CAGR of nearly 11% [11][24] Business Line Data and Key Metrics Changes - The company has secured energy supply agreements (ESAs) totaling 2.1 gigawatts of demand from three major data center developments, representing a greater than 30% increase in peak demand [10][12] - Retail electric sales margins improved compared to the first quarter of the previous year, driven by customer growth and increased usage per meter across all customer classes [20] Market Data and Key Metrics Changes - The company is actively participating in the MISO capacity auction, selling excess capacity to benefit customer bills, positioning itself favorably compared to competitors [80] - The company is experiencing strong interest in economic development opportunities in its service areas, particularly in Iowa and Wisconsin [11][15] Company Strategy and Development Direction - The company is focused on supporting economic development and growth in its states, with a commitment to customer needs and sustainable investor returns [6][8] - The capital plan includes investments in new natural gas resources to complement renewable energy sources, ensuring a balanced energy resource mix [12][17] - The company is taking a proactive approach to manage risks related to potential changes in tax legislation, emphasizing the importance of tax credits for economic growth [16][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 earnings objectives while advancing key strategic priorities, despite challenges in the macroeconomic environment [6][11] - The company is committed to maintaining a strong balance sheet and investment-grade credit ratings while navigating potential legislative changes [24][25] Other Important Information - The updated financing plan anticipates raising approximately $1.4 billion in new common equity through 2028, with flexibility in timing based on market conditions [74][76] - The company has completed nearly all planned safe harbor activities to preserve tax credits for future projects, significantly mitigating tariff exposure [22][25] Q&A Session Summary Question: Timeline for converting mature opportunities to contracts - Management indicated a high level of confidence in converting mature opportunities into contracts, with ongoing discussions and negotiations [35][36] Question: Impact of tax policy changes on rate case provisions - Management clarified that while there is a provision to revisit rate cases if significant legislative changes occur, the focus is on avoiding the need to do so through proactive growth strategies [40][42] Question: Long-term EPS CAGR outlook - Management reaffirmed a long-term EPS CAGR of 5% to 7%, with current plans indicating potential for growth towards the upper end of that range starting in 2027 [48][50] Question: Details on the CapEx increase - The increase in the capital expenditure plan was primarily driven by investments in natural gas generation to meet growing demand from data centers [76][77] Question: MISO capacity auction impact on consumer bills - Management noted that the company is well-positioned to leverage auction results to benefit customer bills, contrasting with competitors who may face challenges [80] Question: Regulatory filings for additional generation resources - Management provided insights into upcoming regulatory filings for new generation resources, emphasizing flexibility in their resource planning [67][69]

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $1.23 for Q1 2025, which is $0.02 higher than Q1 2024 and $0.03 above estimates [8] - Adjusted EPS estimate for Q2 2025 is $0.85 per share, reflecting a significant downside compared to Q2 2024 [10][21] - Weather-related impacts contributed $0.08 to year-over-year performance due to a milder Q1 2024 and a slightly colder Q1 2025 [9] Business Line Data and Key Metrics Changes - Retail electricity sales were down 0.3% year-over-year, primarily due to usage impacts on residential customers, partially offset by customer additions [10] - Data center sales increased by 11% year-over-year, while office buildings and the transportation sector saw increases of 4% each [11] - The company has a large load pipeline of over 50 gigawatts of potential incremental load by the mid-2030s, with 10 gigawatts already committed [11][12] Market Data and Key Metrics Changes - Economic development activity in the Southeast was robust, with over $11 billion in capital investment and more than 4,000 new jobs announced [11] - Unemployment rates and population growth in the service territories are better than national averages, indicating a strong economic position [11] Company Strategy and Development Direction - The company is focused on disciplined execution and maintaining affordability while navigating potential tariff impacts, estimating a 1% to 3% increase in costs [5][6] - Ongoing investments in existing fleet and modernization of facilities are part of the 2025 integrated resource plan [12] - The company aims to maintain strong investment-grade credit ratings while addressing $4 billion in equity needs over five years [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook, emphasizing the resilience of the Southeast economy and customer growth in service territories [4][6] - The company does not expect a material impact from tariffs on its forecast and remains focused on disciplined execution [6] - Management highlighted the importance of regulatory frameworks and customer-centric business models in supporting reliable and affordable energy [7] Other Important Information - The board approved an 8¢ per share increase in the annual common dividend, marking the 24th consecutive annual increase [17] - The company is actively engaging with policymakers regarding tax credits and their benefits to customers [60] Q&A Session Summary Question: Clarification on Q2 EPS guidance - Management explained that the guidance reflects significant weather differentials and timing of transactions within the Georgia transmission system [21][22] Question: Update on Georgia Power load pipeline - The pipeline totals about 52 gigawatts, with 4 gigawatts contracted and 8 gigawatts committed, showing increased near-term interest [27][28] Question: Changes in data center activity following rate structure modifications - Management noted that it is early to assess customer reactions to the new tariff framework, but growth in the pipeline continues [78][81] Question: Feedback on RFPs and technology preferences - Management stated that they cannot disclose specifics about the RFP process but emphasized the all-source nature of the RFPs [84][86] Question: Dividend policy and future increases - Management indicated that dividend growth may remain modest due to significant financing needs, with reevaluation possible if capital opportunities change [111]

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $1.23 for Q1 2025, which is $0.02 higher than Q1 2024 and $0.03 above estimates [9] - Adjusted EPS estimate for Q2 2025 is $0.85, reflecting a significant downside compared to Q2 2024 [10][21] - Weather-related impacts contributed $0.08 to year-over-year performance due to a milder Q1 2024 and a slightly colder Q1 2025 [9] Business Line Data and Key Metrics Changes - Retail electricity sales were down 0.3% year-over-year, primarily due to usage impacts on residential customers, partially offset by customer additions [10] - Data center sales increased by 11% year-over-year, while office buildings and the transportation sector saw increases of 4% each [11] - The company has a large load pipeline of over 50 gigawatts of potential incremental load by the mid-2030s, with 10 gigawatts already committed [11][12] Market Data and Key Metrics Changes - Economic development activity in the Southeast was robust, with over $11 billion in capital investment and more than 4,000 new jobs announced [11] - Unemployment rates and population growth in the service territories are better than national averages, indicating a strong economic position [11] Company Strategy and Development Direction - The company is focused on disciplined execution and maintaining affordability while navigating potential tariff impacts, estimating a 1% to 3% cost increase due to tariffs [6][7] - Ongoing investments in existing fleet and modernization of facilities are part of the 2025 integrated resource plan [12] - The company aims to provide reliable and affordable energy to over 9 million customers, leveraging strong vendor relationships and a diverse supplier portfolio [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook, emphasizing strong customer growth and economic resilience in the Southeast [5][8] - There is ongoing policy uncertainty regarding tariffs, but the company does not expect a material impact on its forecast [7] - The company remains optimistic about future growth opportunities, particularly in the data center sector [26][36] Other Important Information - The board approved an 8¢ per share increase in the annual common dividend, marking the 24th consecutive annual increase [17] - The company has issued $2.2 billion of long-term debt year-to-date, nearly half of the projected financing needs for 2025 [15] Q&A Session Summary Question: Clarification on Q2 EPS guidance - Management explained that the guidance reflects significant weather differentials and timing of transactions within the Georgia transmission system [21][22] Question: Update on Georgia Power load pipeline - The pipeline totals about 52 gigawatts, with 4 gigawatts contracted and 8 gigawatts committed, showing increased interest from customers [27] Question: Feedback on data center activity post-rate structure modifications - Management indicated that it is early to assess customer reactions, but the new framework provides order and certainty for engaging with customers [78] Question: Insights on the Georgia Power rate case - Management confirmed that they are on track to file by early July and emphasized affordability as a primary consideration [49][100] Question: Impact of tariffs on growth opportunities - Management stated that existing projects are well-positioned against tariff impacts, and future projects will be executed with risk mitigations in place [96] Question: Dividend policy considerations - Management noted that maintaining a modest growth in dividends is essential to support financing needs and capital plans [108]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $2.4 billion with a distribution coverage ratio of 1.7 times and retained DCF of $842 million [6][14] - Net income attributable to common unitholders was $1.4 billion or $0.64 per common unit, compared to $0.66 per common unit in Q1 2024 [14] - Distribution declared was $0.0535 per common unit, a 3.9% increase from Q1 2024 [15] - Total debt principal outstanding was approximately $31.9 billion with a weighted average cost of debt of 4.7% [17] Business Line Data and Key Metrics Changes - The company moved 13.2 million barrels of oil equivalent per day and 2 million barrels per day of liquid hydrocarbon exports [6] - PDH facilities experienced downtime; PDH1 was down for 63 days due to unplanned maintenance, but both PDH plants are now operational [6][7] - Total capital investments in Q1 2025 were $1.1 billion, including $964 million for growth capital projects [16] Market Data and Key Metrics Changes - The company noted a strong demand for U.S. hydrocarbons globally, particularly from China and India, despite tariff uncertainties [8][10] - LPG exports have not been significantly disrupted, with 85% to 90% of LPG exports contracted [22][60] Company Strategy and Development Direction - The company plans to bring online two gas processing plants in the Permian and several other projects throughout 2025 [7][16] - The focus remains on increasing capacity to gather, process, transport, and export hydrocarbons, with a significant backlog of wells expected to be connected [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for U.S. energy production and exports, citing supportive policies from the current administration [12] - The company anticipates continued growth in the Permian Basin, with expectations of connecting a similar number of wells in 2025 as in 2024 [39] Other Important Information - The company has returned approximately $58 billion to unitholders since its IPO in 1998 through distributions and buybacks [16] - The expected range of growth capital expenditures for 2025 is $4 billion to $4.5 billion, with sustaining capital expenditures around $525 million [16] Q&A Session Summary Question: Current U.S. LPG rerouting and competitive landscape - Management indicated that trade flows are balancing, with no disruptions in exports, and highlighted their capital-efficient expansion plans [22][23] Question: Incremental EBITDA from upcoming projects - Management confirmed that many projects are expected to be fully contracted upon coming online, leading to a rapid ramp-up in EBITDA [26][32] Question: Impact of recent market price volatility on buybacks - Management discussed their strategy for excess distributable cash flow and indicated a significant increase in cash flow expected in 2026 [53] Question: Outlook for the petchem and refined product segment - Management noted that both PDH plants are running well and expressed optimism for the segment's performance for the remainder of the year [42][44] Question: Global demand and tariff impacts - Management acknowledged a demand slowdown internationally but emphasized that pricing would adjust to clear the market [61] Question: CapEx plans in light of potential demand slowdown - Management stated that current projects are well contracted and unlikely to slow down despite tariff concerns [70] Question: Update on major capital projects - Management confirmed that major capital projects are progressing well and are expected to come online ahead of schedule [81]

Core Insights - SJW Group reported strong financial results for Q1 2025, highlighting the effectiveness of its business strategy and local water operations [2][3][5] Financial Performance - Net income for Q1 2025 was $16.6 million, a 41% increase from $11.7 million in Q1 2024 [3] - Diluted EPS rose to $0.49, a 36% increase compared to $0.36 in the prior year [3][8] - Adjusted net income (non-GAAP) was $16.7 million, up 43% from the previous year, with adjusted diluted EPS at $0.50, a 39% increase [3][4] Revenue and Expenses - Operating revenue for Q1 2025 was $167.6 million, a 12% increase from $149.4 million in Q1 2024, driven by rate increases and higher customer usage [5] - Operating expenses increased by 8% to $131.7 million, primarily due to higher water production expenses and administrative costs [5][9] Capital Expenditures - The company invested $78.2 million in infrastructure during Q1 2025, representing approximately 17% of the planned $473 million capital expenditures for the year [6][8] Rate Activity and Regulatory Updates - New rates for San Jose Water took effect on January 1, 2025, resulting in an authorized revenue increase of $53.1 million over three years [10] - The Connecticut Public Utilities Regulatory Authority approved a $1.6 million revenue increase for Connecticut Water effective April 1, 2025 [14] Dividend Declaration - SJW Group declared a quarterly cash dividend of $0.42 per share, payable on June 2, 2025, with an expected annualized dividend of $1.68 per share for 2025 [23][24] Guidance - The company affirmed its 2025 adjusted diluted EPS guidance of $2.90 to $3.00, anticipating growth in the top half of the range through 2029 [21]

Financial Data and Key Metrics Changes - For 2024, the company achieved adjusted net income of $90.6 million or $2.33 per share, a decrease from $93.9 million or $2.59 per share in 2023, primarily due to regulatory lag until new Oregon gas utility rates were effective [27][97] - Cash provided by operating activities was $200 million, with capital investments totaling $394 million, of which nearly 90% was for the gas utility [30][100] - The company initiated 2025 adjusted earnings guidance in the range of $2.75 to $2.95 per share, reflecting strong contributions from other businesses [31][101] Business Line Data and Key Metrics Changes - The Natural Gas Distribution segment saw a utility margin increase of $26.3 million mainly due to new rates in Oregon, while gas utility O&M decreased by $2.1 million [28][98] - Other businesses' net income increased by $3.6 million, primarily due to a $4.4 million increase in net income from the Water and Waste utility business [29][99] - The water and wastewater customer base grew by 4.6% last year, including organic growth and acquisitions [12][83] Market Data and Key Metrics Changes - The company completed the largest Oregon gas utility rate case in its history, with a revenue requirement increase of $93.3 million and a rate base increase of $334 million to $2.1 billion [16][86] - C Energy, a newly acquired Texas gas utility, has produced strong customer growth of 22% from 2021 to 2024 compounded annually [24][94] - The company expects customer growth projections for C Energy to be backstopped by a backlog of nearly 190,000 connections under contract [104] Company Strategy and Development Direction - The company aims to capture growth from C Energy, expecting double-digit growth for years to come [42][112] - There is a focus on reaching constructive completion of the Oregon general rate case to ensure strong returns on invested capital [42][112] - The company plans to continue evaluating acquisitions and assess rate case filings to recover crucial safety investments while maintaining affordability [43][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and readiness for continued growth, especially with the transition to new leadership [46][115] - The company is monitoring regulatory changes and potential tariffs that could impact costs, but does not anticipate significant effects on customer pricing [56][126] - Management highlighted the importance of natural gas in the energy mix, especially during peak demand periods, and noted voter support for diversified energy solutions [19][90] Other Important Information - The company plans to begin separately disclosing financial results for Northwest Natural Water and C Energy starting with the first quarter of 2025 [40][111] - The capital expenditure guidance for 2025 is expected to be in the range of $450 million to $500 million, with significant investments in gas utilities and C Energy [32][102] Q&A Session Summary Question: Strategic thoughts on data centers and electric load growth in Washington - Management is evaluating opportunities to connect data centers to their systems and is monitoring regulatory changes closely [51][124] Question: Clarification on C Energy's net income growth and rate case filings - The projected CAGR for C Energy includes assumptions about rate case adjustments and capital structure improvements [59][131] - There are no immediate plans for rate case filings as the focus is on integrating the newly acquired company [62][133] Question: Breakdown of capital expenditures by segment - Capital expenditures are projected at approximately $350 million for Northwest Natural gas, $80 million for C Energy, and $60 million for water utilities [66][138]