Sempra(US:SRE)2022-02-25 23:24Financial Data and Key Metrics Changes - In 2021, the company delivered adjusted earnings per share (EPS) of $8.43, exceeding the guidance range of $7.75 to $8.35 per share [7][8] - Full-year 2021 GAAP earnings were $1.254 billion or $4.01 per share, compared to $3.764 billion or $12.88 per share in 2020 [25][26] - The company announced an increased annualized dividend of $4.58 per share [8] Business Line Data and Key Metrics Changes - The company invested over $7 billion in energy infrastructure in 2021, marking a record amount [7][10] - Sempra's growth platforms generated approximately $2.6 billion in adjusted earnings for the full year 2021 [13] - The capital plan for the next five years is projected at $36 billion, with nearly 94% dedicated to utility investments [28] Market Data and Key Metrics Changes - The company serves nearly 40 million consumers across its integrated growth platforms [12] - Oncor connected approximately 70,000 additional premises in 2021, reflecting strong organic growth in Texas [22] - In California, SDG&E completed its inaugural issuance of $750 million in green bonds [17] Company Strategy and Development Direction - The company aims to prioritize markets with strong fundamentals and constructive regulation while simplifying its business model [9][37] - The strategic focus includes building scale, financial strength, and a high-performing culture to improve financial results [9][37] - The company is advancing opportunities in renewables, hydrogen, ammonia, LNG, and carbon capture infrastructure [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the projected long-term EPS growth rate of 6% to 8% [8][34] - The company highlighted the importance of regulatory constructs and inflation protections built into its assets [15] - Management noted that the majority of assets have inflation protections, reducing exposure to traditional energy risks [15] Other Important Information - The company has a five-year capital plan of $36 billion, the largest in its history, with a focus on safety and reliability [28] - The company expects to grow its rate base from $41 billion in 2021 to $62 billion by 2026 [29] - The company is committed to a payout ratio of approximately 50% to 60% for dividends [32] Q&A Session Summary Question: Can you elaborate on the drivers of SIP and the cadence of growth? - Management indicated that 94% of the capital program is dedicated to utilities, with conservative projections for Sempra Infrastructure [43][44] Question: What is included in the $11 billion return of capital figure? - The figure includes dividends, share repurchases, and distributions to equity partners at Sempra Infrastructure [54] Question: What is the status of the Cameron LNG expansion? - The company is targeting FID in the first half of 2023, with full online operations expected by 2027 [75][76] Question: How is the regulated versus non-regulated earnings mix evolving? - Management expressed confidence in growing the U.S. utility rate base significantly over the next five years [66][68] Question: What are the components of the parent costs reduction between 2022 and 2023? - Specific details on the components were not provided, but management emphasized ongoing cost management efforts [103]