Sempra(US:SRE)2022-11-03 20:34Financial Data and Key Metrics Changes - For Q3 2022, Sempra reported adjusted earnings per share (EPS) of $1.97, up from $1.70 in Q3 2021, and year-to-date adjusted EPS of $6.87 compared to $6.27 in the same period last year [16][48] - The company raised its full year 2022 adjusted EPS guidance range to $8.70 to $9 per share, affirming its existing full year 2023 EPS guidance range [16][61] - GAAP earnings for Q3 2022 were $485 million or $1.53 per share, compared to a loss of $648 million or $2.03 per share in Q3 2021 [46] Business Line Data and Key Metrics Changes - Sempra California saw a $79 million increase in earnings due to income tax benefits and CPUC base operating margin [50] - Sempra Texas Utilities reported a $50 million increase in equity earnings, driven by higher consumption and customer growth [50] - Sempra Infrastructure experienced a $74 million decrease in earnings attributed to higher noncontrolling interest [50] Market Data and Key Metrics Changes - Oncor added 14,000 new premises in Q3 2022, maintaining a long-term premise growth expectation of approximately 2%, significantly above the national average [30][90] - Oncor also added 65 new transmission interconnection requests, indicating strong demand for renewable energy in its service territory [31] Company Strategy and Development Direction - Sempra aims to build one of the largest and most resilient energy networks in North America, focusing on modernizing energy grids and developing large-scale export facilities for natural gas [10][12] - The company is strategically positioned to benefit from the Inflation Reduction Act, which incentivizes investments in clean energy [17][18] - Sempra is advancing projects like Port Arthur LNG Phase 1 and exploring opportunities in carbon capture and hydrogen blending [21][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing global energy crisis and the need for a modern energy network to support cleaner energy and economic growth [10][12] - The company expressed optimism about its growth platforms and reaffirmed its guidance for 2023, citing strong operational performance across all segments [61][68] Other Important Information - Sempra recorded a $101 million after-tax charge in Q3 2022 related to the Aliso Canyon natural gas storage facility leak settlement [29] - The company is working on financing strategies for Port Arthur LNG, including raising capital through debt and equity [34][80] Q&A Session Summary Question: Update on Port Arthur LNG Phase 1 and potential Phase 2 - Management confirmed strong interest in Phase 2 and highlighted the strategic advantages of the Port Arthur site, including its capacity for expansion [55][56] Question: Guidance assumptions for 2023 - Management reaffirmed 2023 guidance, emphasizing the strength of growth platforms and the impact of ongoing projects [59][61] Question: Impact of housing market on infrastructure needs - Oncor's management noted continued long-term growth projections despite short-term dips in residential construction due to supply chain issues [90] Question: Update on Angeles Link project - Management indicated positive feedback from stakeholders and filed for a memo account to capture costs related to the project [74] Question: Financing flexibility for Port Arthur - Management discussed efforts to limit external equity at the Sempra level while raising capital through project-level equity and debt [78][80]