Sempra(US:SRE)2022-05-06 01:12Financial Data and Key Metrics Changes - The company reported first quarter 2022 adjusted earnings per share (EPS) of $2.91, affirming its full year adjusted EPS guidance range for 2022 and 2023 [14][48] - First quarter 2022 GAAP earnings were $612 million or $1.93 per share, compared to $874 million or $2.87 per share in the same period of 2021 [36] - Adjusted earnings for the first quarter of 2022 were $924 million or $2.91 per share, compared to $900 million or $2.95 per share in the first quarter of 2021 [36][38] Business Line Data and Key Metrics Changes - Sempra Infrastructure experienced a $42 million decrease in earnings due to higher noncontrolling interest, while Sempra Texas Utilities saw a $27 million increase in equity earnings driven by higher revenues from rate updates and customer growth [37][38] - SDG&E reported a $22 million increase in CPUC base operating margin, net of operating expenses [38] Market Data and Key Metrics Changes - Oncor's service territory saw a 78% increase in new interconnection requests compared to the first quarter of 2021, indicating strong demographic growth [28] - Oncor's Board approved an increase in its 2022 capital plan from $2.8 billion to $3 billion, reflecting robust economic growth in Texas [29] Company Strategy and Development Direction - The company is focused on executing its T&D investment strategy across its core markets, with a record $36 billion, 5-year capital plan aimed at expanding and modernizing North America's energy systems [10][12] - Sempra Infrastructure is developing a platform to export LNG directly from the Gulf and Pacific Coasts to Europe and Asia, positioning itself as a key player in the energy transition [11][30] - The company emphasizes sustainability and has issued its annual Corporate Sustainability Report, highlighting its commitment to safety, climate resilience, and affordability [17][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's ability to execute its strategy and deliver strong financial results [10][12] - The ongoing conflict in Ukraine has underscored the need for secure access to reliable sources of cleaner energy, which Sempra Infrastructure aims to address [11][12] Other Important Information - The company completed $250 million in share repurchases in April 2022, returning a total of $750 million to shareholders over the past six months [13][47] - Sempra Infrastructure is advancing its LNG projects, including Cameron LNG Phase II, with significant milestones achieved in commercial and permitting processes [30][32] Q&A Session All Questions and Answers Question: Can you elaborate on the Cameron 4 timing updates? - Management indicated that recent activities have increased confidence in the project's ability to move forward, with an estimated timeline for EPC work completion in summer 2023, leading to a final investment decision (FID) shortly thereafter [49][50] Question: What is the project development pipeline looking like? - Management highlighted that Sempra is one of the few developers capable of delivering up to 30 million tons per annum of new LNG capacity, with strong demand anticipated in both European and Asian markets [52][56] Question: How should financing for these projects be structured? - Management discussed various financing options, including project debt and partner capital, emphasizing a diversified capital structure to support growth [67][72] Question: Can you provide insights on the MOU with Total regarding renewable opportunities? - The MOU covers potential participation in renewable projects in Mexico and offshore wind opportunities in California, reflecting a strategic alliance aimed at expanding Sempra's renewable portfolio [78][81] Question: What are the realistic timelines for Cameron's debottlenecking and full expansion? - Management expects the debottlenecking process to continue through late summer and fall, with a typical construction period of 4 to 5 years for the full expansion once FID is taken [88][90]