Sempra(US:SRE)2023-05-04 21:32Financial Data and Key Metrics Changes - For Q1 2023, the company reported GAAP earnings of $969 million, or $3.07 per share, compared to $612 million, or $1.93 per share in Q1 2022. Adjusted earnings were $922 million, or $2.92 per share, slightly down from $924 million, or $2.91 per share in the same period last year [87][88]. Business Line Data and Key Metrics Changes - Oncor's updated 5-year capital plan increased from approximately $15 billion to $19 billion, reflecting strong demand growth and the need for additional capital investments in transmission and distribution [40][73]. - Sempra Infrastructure's new capital plan includes $3.6 billion, which incorporates Sempra's proportionate share of Port Arthur LNG Phase 1 [56][82]. Market Data and Key Metrics Changes - The company anticipates a 9% average annual growth rate in its rate base over the next five years, with over 70% dedicated to electric infrastructure [63]. - Oncor experienced a 41% increase in active and retail transmission interconnection requests compared to the previous year, indicating robust premise growth [76]. Company Strategy and Development Direction - The company announced a new 5-year capital plan of $40 billion, focusing on building leading transmission and distribution infrastructure in attractive North American markets [42][91]. - The strategy includes a three-pronged approach to affordability, emphasizing cost control, sourcing external funding, and advocating for meaningful rate reform [16][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 6% to 8% compounded annual EPS growth rate, supported by a robust capital plan and favorable macroeconomic conditions [43][94]. - The company is focused on creating value for shareholders while supporting customers, with an emphasis on safety, reliability, and sustainability in its operations [94][70]. Other Important Information - The company is actively pursuing net-zero solutions, including carbon capture and hydrogen hub projects, which are expected to play a significant role in its future growth [4][49]. - The company has committed to maintaining low costs for consumers amid rising living costs and inflation, highlighting affordability as a top priority [9][66]. Q&A Session Summary Question: Are Texas legislation outcomes included in the 2023 or 2024 numbers? - Management confirmed that the current plan does not include Texas legislation outcomes but expects constructive outcomes that could benefit the plan [98][100]. Question: What is the growth rate outlook for 2025? - Management indicated that growth in 2025 will largely depend on the outcomes of ongoing rate cases in California and the expected commercial operation date for ECA Phase 1 [122][123]. Question: Can you elaborate on the funding plan for the higher CapEx? - The CFO outlined a multi-faceted funding strategy, including selling non-core assets, project-level debt and equity, and raising capital at operating companies [109][112]. Question: Will there be equity issuance through 2027? - Management stated that while there are no current plans for equity issuance, the situation is dynamic and will be evaluated as needed [134][136].