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3 days ago
- Business
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Sempra Infrastructure and JERA Sign Heads of Agreement for U.S. LNG Supply
HOUSTON, June 11, 2025 /PRNewswire/ -- Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE), today announced it has executed a non-binding heads of agreement (HOA) with JERA Co. Inc (JERA) for a 20-year sale and purchase agreement for liquefied natural gas (LNG) offtake of 1.5 million tonnes per annum (Mtpa) on a free on board basis from the Port Arthur LNG Phase 2 development project in Jefferson County, Texas. "We are pleased to collaborate with JERA, Japan's largest power generation company and one of the world's largest LNG buyers, as they continue to work with the United States to diversify their sources to help strengthen the resilience and dependability of their energy supply," said Justin Bird, chief executive officer of Sempra Infrastructure. "With this announcement, we continue to make steady progress towards reaching a final investment decision for the project, which is expected to extend the reach of U.S. natural gas to global energy markets." The proposed Port Arthur LNG Phase 2 development project is competitively positioned and is under active marketing. Future phases are also in the early development stage. The project has received all its key permits and is expected to include two liquefaction trains capable of producing approximately 13 Mtpa of LNG, which could increase the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 Mtpa for Phase 1, which is under construction, to up to approximately 26 Mtpa. The project received authorization from the U.S. Department of Energy in May to export U.S. LNG to countries that do not have a free-trade agreement with the U.S. The project also received authorization from the Federal Energy Regulatory Commission in September 2023. In June 2024, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement contemplating both a long-term LNG offtake agreement and an equity investment in the Port Arthur LNG Phase 2 project. In July 2024, Sempra Infrastructure announced that Bechtel had been selected for a fixed-price engineering, procurement and construction contract for the project. The Port Arthur LNG Phase 1 project is currently under construction and expected to achieve commercial operation in 2027 and 2028 for trains 1 and 2, respectively. The development of the Port Arthur LNG Phase 2 project remains subject to a number of risks and uncertainties, including completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing and reaching a final investment decision, among other factors. About Sempra Infrastructure Sempra Infrastructure, headquartered in Houston, is focused on delivering energy for a better world by developing, building, operating and investing in modern energy infrastructure, such as LNG, energy networks and low-carbon solutions that are expected to play a crucial role in the energy systems of the future. Through the combined strength of its assets in North America, Sempra Infrastructure is connecting customers to safe and reliable energy and advancing energy security. Sempra Infrastructure is a subsidiary of Sempra (NYSE: SRE), a leading North American energy infrastructure company. For more information, visit or connect with Sempra Infrastructure on social media @SempraInfra. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise. In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "envision," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "preliminary," "initiative," "target," "outlook," "optimistic," "poised," "positioned," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, audits, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, and other actions, including the failure to honor contracts and commitments, by the (i) U.S. Department of Energy, Comisión Nacional de Energía, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) negotiating pricing and other terms in definitive contracts, (iii) completing construction projects or other transactions on schedule and budget, (iv) realizing anticipated benefits from any of these efforts if completed, (v) obtaining regulatory and other approvals and (vi) third parties honoring their contracts and commitments; changes to our capital expenditure plans and their potential impact on growth; changes, due to evolving economic, political and other factors, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries, and (ii) laws and regulations, including those related to tax and the energy industry in the U.S. and Mexico; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact on our ability to pass through higher costs to customers due to volatility in inflation, interest and foreign currency exchange rates and commodity prices and the imposition of tariffs; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas, including disruptions caused by failures in the pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control. These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, and on Sempra's website, Investors should not rely unduly on any forward-looking statements. Sempra Infrastructure and Sempra Infrastructure Partners are not the same company as San Diego Gas & Electric Company or Southern California Gas Company, and none of Sempra Infrastructure, Sempra Infrastructure Partners nor any of its subsidiaries is regulated by the California Public Utilities Commission. View original content to download multimedia: SOURCE Sempra Infrastructure Inicia sesión para acceder a tu cartera de valores
Yahoo
08-05-2025
- Business
- Yahoo
Sempra Reports First-Quarter 2025 Results
SAN DIEGO, May 8, 2025 /PRNewswire/ -- Sempra (NYSE: SRE) today reported first-quarter 2025 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $906 million or $1.39 per diluted share, compared to first-quarter 2024 GAAP earnings of $801 million or $1.26 per diluted share. On an adjusted basis, first-quarter 2025 earnings were $942 million or $1.44 per diluted share, compared to $854 million or $1.34 per diluted share in 2024. "We are pleased to report a solid quarter for Sempra, which is the direct result of continued focus on delivering strong financial performance while making steady progress on our strategic initiatives," said Jeffrey W. Martin, chairman and CEO of Sempra. "We remain committed to our disciplined growth strategy, which centers on delivering safer and more reliable energy to the nearly 40 million consumers we serve." The reported financial results reflect certain significant items as described on an after-tax basis in the following table of GAAP earnings, reconciled to adjusted earnings, for first-quarter 2025 and 2024.(Dollars and shares in millions, except EPS) Three months ended March 31,20252024 GAAP Earnings $ 906$ 801 Impact from foreign currency and inflation on monetary positions in Mexico (8)41 Net unrealized losses on derivatives 3512 Net unrealized losses on interest rate swaps related to Port Arthur LNG Phase 1 project 9— Adjusted Earnings(1) $ 942$ 854 Diluted Weighted-Average Common Shares Outstanding 653635 GAAP EPS $ 1.39$ 1.26 Adjusted EPS(1) $ 1.44$ 1.341) See Table A for information regarding non-GAAP financial measures. Sempra TexasOncor Electric Delivery Company LLC (Oncor) is executing on its $36.1 billion five-year capital plan in the country's fastest growing energy market. The state of Texas continues to demonstrate significant growth in electricity demand with the Electric Reliability Council of Texas (ERCOT) setting a new all-time winter peak demand of 80.5 gigawatts (GW) in the month of February. In response to growing electricity demand, Oncor continues to advance critical transmission and distribution infrastructure projects. These investments also support population growth in Texas and increased reliability for the ERCOT market. At the end of the first quarter of 2025, Oncor had approximately 1,100 active transmission point of interconnection requests in queue, split almost evenly between generation and large commercial and industrial customers. This represents a 35% increase in active requests as compared to the end of first-quarter 2024. Additionally, Oncor increased its premises served by almost 19,000 in the first quarter and built, rebuilt or upgraded nearly 800 miles of transmission and distribution power lines in the first quarter of 2025. Oncor continues to prepare for a comprehensive base rate proceeding utilizing a test year of calendar year 2024, with filing currently targeted for the second quarter of 2025. In October 2024, the Public Utility Commission of Texas ("PUCT") approved the local projects and import paths of the Permian Basin Reliability Plan ("PBRP"). In April 2025, the PUCT decided that the import paths would be built using 765-kV. ERCOT updated its estimated cost for the entirety of the PBRP to approximately $15 billion. Also in January 2025, ERCOT filed a regional transmission expansion plan with the PUCT, which included two options to serve the load projection of 150 gigawatts by 2030. ERCOT estimated that the cost of either plan would be approximately $20 billion. Taken together, the PBRP and the remaining portion of the Regional Transmission Plan would cost approximately $35 billion. Oncor expects to build a significant portion. Sempra CaliforniaServing roughly 25 million consumers, Sempra California is a dual-utility platform focused on connecting people to safe, reliable and cleaner energy. In March 2025, San Diego Gas & Electric Company (SDGE) and Southern California Gas Company (SoCalGas) filed their applications to update their respective costs of capital with the California Public Utilities Commission (CPUC) for the period of 2026 to 2028, subject to the cost of capital adjustment mechanism after 2026. A final decision from the CPUC is expected by the end of the year. Throughout the quarter, SDGE and SoCalGas advanced strategic programs to modernize their energy networks to meet growing demand, while also advancing community safety and system reliability. In March, the CPUC approved the expansion of SDGE's Westside Canal Battery Energy Storage facility in California's Imperial Valley. This expansion project will co-locate an additional 100 megawatts (MW) of energy storage capacity at the existing 131 MW facility and is projected to be fully operational this summer. Also in March, the CPUC approved SoCalGas' first renewable natural gas (RNG) procurement contract under Senate Bill 1440, which sets RNG procurement targets for the state's natural gas utilities. The contract represents an important milestone for the RNG industry and for California's methane emissions reduction goals. Sempra Infrastructure Strong global demand for cleaner and more secure energy continues to support Sempra Infrastructure's development activities across its liquefied natural gas (LNG), energy networks and low-carbon solutions business lines. During the first quarter, Sempra Infrastructure continued to make progress advancing five significant construction projects including infrastructure projects in the U.S. Gulf coast and northern Mexico. Energía Costa Azul LNG Phase 1 continues to target the start-up of commercial operations in spring of 2026, and construction at Port Arthur LNG Phase 1 remains on time and on budget. Earnings GuidanceSempra is updating its full-year 2025 GAAP earnings-per-common-share (EPS) guidance range to $4.25 – $4.65, reflecting actual results through the first quarter, affirming its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70, and affirming its full-year 2026 EPS guidance range of $4.80 to $5.30. The company has also guided to the high-end or above its projected long-term EPS compound annual growth rate of 7% to 9% for 2025 through 2029. Non-GAAP Financial MeasuresNon-GAAP financial measures include Sempra's adjusted earnings, adjusted EPS and adjusted EPS guidance range. See Table A for additional information regarding these non-GAAP financial measures. Value Creation InitiativesIn addition to today's quarterly results, the company also reiterated its five value creation initiatives in 2025, designed to continue simplifying Sempra's business model, mitigating risk and improving financial performance. "These value creation initiatives aim to increase long-term value for shareholders, employees, customers and other stakeholders," said Martin. "In the first quarter, we made steady progress against our plan of execution. As we extend this work across 2025, we expect to advance the company's ability to deliver improved earnings growth and drive enhanced benefits for consumers and communities across our service territories." Consistent with these value creation initiatives, the company announced Sempra Infrastructure is targeting the sales of Ecogas México, S. de R.L. de C.V., the owner of three utility franchises providing natural gas distribution services in Mexico, as well as a minority stake in Sempra Infrastructure Partners (SI Partners). SI Partners' minority owners, affiliates of Kohlberg Kravis Roberts & Co. L.P. and Abu Dhabi Investment Authority, have certain rights of first offer for the sale of a minority interest in SI Partners. More details on the progress of these items will be shared in the second quarter earnings call. Together, these sales transactions are expected to be completed over the next 12-18 months and to be accretive to the company's earnings-per-share forecast, while also enhancing credit. These transactions also remain subject to reaching agreement on acceptable pricing and other terms, securing required regulatory and other approvals, finalizing definitive contracts, and other factors and considerations. Internet BroadcastSempra will broadcast a live discussion of its earnings results over the internet today at 12 p.m. ET with the company's senior management. Access is available by logging onto the Investors section of the company's website, The webcast will be available on replay a few hours after its conclusion at About SempraSempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world's most significant economic markets, including California, Texas, Mexico and global energy markets. The company is recognized as a leader in sustainable business practices and for its high-performance culture focused on safety and operational excellence, as demonstrated by Sempra's inclusion in the Dow Jones Sustainability Index North America. More information about Sempra is available at and on social media @Sempra. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise. In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "envision," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "preliminary," "initiative," "target," "outlook," "optimistic," "poised," "positioned," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, rates from customers or a combination thereof; decisions, denials of cost recovery, audits, investigations, inquiries, ordered studies, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), Comisión Nacional de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service, Public Utility Commission of Texas and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) negotiating pricing and other terms in definitive contracts, (iii) completing construction projects or other transactions on schedule and budget, (iv) realizing anticipated benefits from any of these efforts if completed, (v) obtaining regulatory and other approvals and (vi) third parties honoring their contracts and commitments; changes to our capital expenditure plans and their potential impact on rate base or other growth; changes, due to evolving economic, political and other factors, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries, and (ii) laws and regulations, including those related to tax and the energy industry in the U.S. and Mexico; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact on affordability of San Diego Gas & Electric Company's (SDG&E) and Southern California Gas Company's (SoCalGas) customer rates and their cost of capital and on SDG&E's, SoCalGas' and Sempra Infrastructure's ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices and the imposition of tariffs, (ii) with respect to SDG&E's and SoCalGas' businesses, the cost of meeting the demand for lower carbon and reliable energy in California, and (iii) with respect to Sempra Infrastructure's business, volatility in foreign currency exchange rates; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power, natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid or pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; Oncor Electric Delivery Company LLC's (Oncor) ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; and other uncertainties, some of which are difficult to predict and beyond our control. These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, and on Sempra's website, Investors should not rely unduly on any forward-looking statements. Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC. None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document. SEMPRA Table A CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31,20252024 REVENUESUtilities:Natural gas $ 2,362$ 2,109 Electric 1,0591,056 Energy-related businesses 381475 Total revenues 3,8023,640 EXPENSES AND OTHER INCOMEUtilities:Cost of natural gas (493)(554) Cost of electric fuel and purchased power (52)(89) Energy-related businesses cost of sales (119)(109) Operation and maintenance (1,343)(1,212) Depreciation and amortization (640)(594) Franchise fees and other taxes (196)(184) Other income, net 9199 Interest income 3413 Interest expense (433)(305) Income before income taxes and equity earnings 651705 Income tax expense (57)(172) Equity earnings 325348 Net income 919881 Earnings attributable to noncontrolling interests (2)(69) Preferred dividends (11)(11) Earnings attributable to common shares $ 906$ 801 Basic earnings per common share (EPS):Earnings $ 1.39$ 1.27 Weighted-average common shares outstanding 651,992632,821 Diluted EPS:Earnings $ 1.39$ 1.26 Weighted-average common shares outstanding 653,018635,354 SEMPRATable A (Continued) RECONCILIATION OF SEMPRA ADJUSTED EARNINGS TO SEMPRA GAAP EARNINGS Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2025 and 2024 as follows: Three months ended March 31, 2025: $8 million impact from foreign currency and inflation on our monetary positions in Mexico $(35) million net unrealized losses on commodity derivatives $(9) million net unrealized losses on interest rate swaps related to the initial phase of the Port Arthur LNG liquefaction project (PA LNG Phase 1 project) Three months ended March 31, 2024: $(41) million impact from foreign currency and inflation on our monetary positions in Mexico $(12) million net unrealized losses on commodity derivatives Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation on our monetary positions in Mexico and net unrealized gains and losses on commodity and interest rate derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP. RECONCILIATION OF ADJUSTED EARNINGS TO GAAP EARNINGS AND ADJUSTED EPS TO GAAP EPS (Dollars in millions, except per share amounts; shares in thousands)Pretax amount Income tax benefit(1) Non-controlling interests EarningsDiluted EPSPretax amount Income tax expense (benefit)(1) Non-controlling interests Earnings Diluted EPSThree months ended March 31, 2025Three months ended March 31, 2024 Sempra GAAP Earnings and GAAP EPS$ 906$ 1.39 $ 801$ 1.26 Excluded items: Impact from foreign currency and inflation on monetary positions in Mexico $ (2) $ (10) $ 4 (8)(0.01)$ 7 $ 53 $ (19) 410.06Net unrealized losses on commodity derivatives 69 (15) (19) 350.0523 (3) (8) 120.02Net unrealized losses on interest rate swaps related to PA LNG Phase 1 project 65 (4) (52) 90.01— — — —— Sempra Adjusted Earnings and Adjusted EPS$ 942$ 1.44 $ 854$ 1.34Weighted-average common shares outstanding, diluted653,018 635,354 (1) Income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. SEMPRATable A (Continued) RECONCILIATION OF SEMPRA 2025 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA 2025 GAAP EPS GUIDANCE RANGE Sempra 2025 Adjusted EPS Guidance Range of $4.30 to $4.70 excludes items (after the effects of income taxes and, if applicable, NCI) as follows: $8 million impact from foreign currency and inflation on our monetary positions in Mexico $(35) million net unrealized losses on commodity derivatives $(9) million net unrealized losses on interest rate swaps related to the PA LNG Phase 1 project Sempra 2025 Adjusted EPS Guidance is a non-GAAP financial measure. This non-GAAP financial measure excludes significant items that are generally not related to our ongoing business activities and/or infrequent in nature. This non-GAAP financial measure also excludes the impact from foreign currency and inflation on our monetary positions in Mexico and net unrealized gains and losses on commodity and interest rate derivatives for the three months ended March 31, 2025, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. This non-GAAP financial measure does not contemplate the anticipated impacts of the proposed sale of Ecogas México, S. de R.L. de C.V. and the proposed sale of a minority interest in Sempra Infrastructure Partners, which combined, are expected to be accretive. Sempra 2025 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 2025 GAAP EPS Guidance Range. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles Sempra 2025 Adjusted EPS Guidance Range to Sempra 2025 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP. RECONCILIATION OF ADJUSTED EPS GUIDANCE RANGE TO GAAP EPS GUIDANCE RANGE Full-Year 2025 Sempra GAAP EPS Guidance Range $ 4.25 to $ 4.65 Excluded items:Impact from foreign currency and inflation on monetary positions in Mexico (0.01)(0.01) Net unrealized losses on commodity derivatives 0.050.05 Net unrealized losses on interest rate swaps related to PA LNG Phase 1 project 0.010.01 Sempra Adjusted EPS Guidance Range $ 4.30 to $ 4.70 Weighted-average common shares outstanding, diluted (millions) 654 SEMPRA Table B CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31,December 31,20252024(1) ASSETSCurrent assets:Cash and cash equivalents $ 1,739$ 1,565 Restricted cash 2021 Accounts receivable – trade, net 2,1071,983 Accounts receivable – other, net 432397 Due from unconsolidated affiliates 1513 Income taxes receivable 6690 Inventories 568559 Prepaid expenses 227255 Regulatory assets 8660 Fixed-price contracts and other derivatives 13691 Greenhouse gas allowances 218217 Other current assets 5134 Total current assets 5,6655,285 Other assets:Restricted cash 33 Regulatory assets 4,2723,937 Greenhouse gas allowances 1,053845 Nuclear decommissioning trusts 865875 Dedicated assets in support of certain benefit plans 566585 Deferred income taxes 194172 Right-of-use assets – operating leases 1,1771,177 Investment in Oncor Holdings 15,87115,400 Other investments 2,5012,534 Goodwill 1,6021,602 Other intangible assets 286292 Wildfire fund 258262 Other long-term assets 1,6561,749 Total other assets 30,30429,433 Property, plant and equipment, net 63,04161,437 Total assets $ 99,010$ 96,155 (1) Derived from audited financial statements. SEMPRA Table B (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31,December 31,20252024(1) LIABILITIES AND EQUITYCurrent liabilities:Short-term debt $ 2,113$ 2,016 Accounts payable – trade 1,9762,238 Accounts payable – other 179208 Dividends and interest payable 909773 Accrued compensation and benefits 398558 Regulatory liabilities 490141 Current portion of long-term debt and finance leases 2,3312,274 Greenhouse gas obligations 218217 Other current liabilities 1,3201,251 Total current liabilities 9,9349,676 Long-term debt and finance leases 33,28631,558 Deferred credits and other liabilities:Due to unconsolidated affiliates 355352 Regulatory liabilities 3,8473,817 Greenhouse gas obligations 755506 Pension and other postretirement benefit plan obligations, net of plan assets 188168 Deferred income taxes 5,9885,845 Asset retirement obligations 3,7513,737 Deferred credits and other 2,7042,708 Total deferred credits and other liabilities 17,58817,133 Equity:Sempra shareholders' equity 31,64331,222 Preferred stock of subsidiary 2020 Other noncontrolling interests 6,5396,546 Total equity 38,20237,788 Total liabilities and equity $ 99,010$ 96,155 (1) Derived from audited financial statements. SEMPRA Table C CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in millions) Three months ended March 31,20252024 CASH FLOWS FROM OPERATING ACTIVITIESNet income $ 919$ 881 Adjustments to reconcile net income to net cash provided by operating activities 402469 Net change in working capital components (35)319 Distributions from investments 291232 Changes in other noncurrent assets and liabilities, net (95)(50) Net cash provided by operating activities 1,4821,851 CASH FLOWS FROM INVESTING ACTIVITIESExpenditures for property, plant and equipment (2,336)(1,933) Expenditures for investments (486)(193) Purchases of nuclear decommissioning and other trust assets (292)(197) Proceeds from sales of nuclear decommissioning and other trust assets 329217 Other —(1) Net cash used in investing activities (2,785)(2,107) CASH FLOWS FROM FINANCING ACTIVITIESCommon dividends paid (380)(362) Issuances of common stock 1010 Repurchases of common stock (57)(40) Issuances of debt (maturities greater than 90 days) 2,9412,044 Payments on debt (maturities greater than 90 days) and finance leases (994)(846) Decrease in short-term debt, net (70)(498) Advances from unconsolidated affiliates 4445 Distributions to noncontrolling interests (38)(111) Contributions from noncontrolling interests 34474 Other (14)(16) Net cash provided by financing activities 1,476700 Effect of exchange rate changes on cash, cash equivalents and restricted cash —1 Increase in cash, cash equivalents and restricted cash 173445 Cash, cash equivalents and restricted cash, January 1 1,589389 Cash, cash equivalents and restricted cash, March 31 $ 1,762$ 834 SEMPRA Table D SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES (Dollars in millions)Three months ended March 31,20252024 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARESSempra California $ 724$ 582 Sempra Texas Utilities 146183 Sempra Infrastructure 146131 Segment earnings attributable to common shares 1,016896 Parent and other (110)(95) Sempra earnings attributable to common shares $ 906$ 801 CAPITAL EXPENDITURES FOR PROPERTY, PLANT AND EQUIPMENTSempra California $ 1,094$ 1,143 Sempra Infrastructure 1,241790 Segment totals 2,3351,933 Parent and other 1— Total Sempra $ 2,336$ 1,933 CAPITAL EXPENDITURES FOR INVESTMENTSSempra Texas Utilities $ 486$ 193 Total Sempra $ 486$ 193 SEMPRA Table E OTHER OPERATING STATISTICS Three months ended March 31,20252024UTILITIESSempra CaliforniaGas sales (Bcf)(1) 116122 Transportation (Bcf)(1) 131142 Total deliveries (Bcf)(1) 247264 Total gas customer meters (thousands) 7,1227,089Electric sales (millions of kWhs)(1) 715935 Community Choice Aggregation and Direct Access (millions of kWhs) 3,4323,169 Total deliveries (millions of kWhs)(1) 4,1474,104 Total electric customer meters (thousands) 1,5351,522 Oncor Electric Delivery Company LLC (Oncor)(2)Total deliveries (millions of kWhs) 39,00637,313 Total electric customer meters (thousands) 4,0653,988 Ecogas México, S. de R.L. de gas sales (Bcf) 11 Natural gas customer meters (thousands) 165159 ENERGY-RELATED BUSINESSESSempra InfrastructureTermoeléctrica de Mexicali (millions of kWhs) 702980 Wind and solar (millions of kWhs)(1) 746719 (1) Includes intercompany sales. (2) Includes 100% of the electric deliveries and customer meters of Oncor, in which we hold an 80.25% interest through our investment in Oncor Electric Delivery Holdings Company LLC. SEMPRA Table F STATEMENTS OF OPERATIONS DATA BY SEGMENT (Dollars in millions)Sempra CaliforniaSempra Texas Utilities(1)Sempra InfrastructureConsolidating Adjustments, Parent & OtherTotalThree months ended March 31, 2025 Revenues $ 3,401$ 426$ (25)$ 3,802 Depreciation and amortization (562)(76)(2)(640) Interest income 2191334 Interest expense(2) (225)(77)(131)(433) Income tax (expense) benefit (52)(22)17(57) Equity earnings —$ 148177—325 Earnings attributable to noncontrolling interests ——(2)—(2) Other segment items(3) (1,840)(2)(299)18(2,123) Earnings (losses) attributable to common shares $ 724$ 146$ 146$ (110)$ 906Three months ended March 31, 2024 Revenues $ 3,141$ 519$ (20)$ 3,640 Depreciation and amortization (521)(72)(1)(594) Interest income 35513 Interest expense (205)—(100)(305) Income tax (expense) benefit (83)(109)20(172) Equity earnings —$ 185163—348 Earnings attributable to noncontrolling interests ——(69)—(69) Other segment items(3) (1,753)(2)(306)1(2,060) Earnings (losses) attributable to common shares $ 582$ 183$ 131$ (95)$ 801 (1) Substantially all earnings attributable to common shares are from equity earnings. (2) Sempra Infrastructure includes net unrealized gains (losses) from undesignated interest rate swaps related to the PA LNG Phase 1 project. (3) Includes cost of natural gas, cost of electric fuel and purchased power, O&M, franchise fees and other taxes, and other income (expense), net, for Sempra California; O&M for Sempra Texas Utilities related to activities at the holding company; and cost of natural gas, energy-related businesses cost of sales, O&M, franchise fees and other taxes, and other income (expense), net, for Sempra Infrastructure. View original content to download multimedia: SOURCE Sempra
Malaysian Reserve
08-05-2025
- Business
- Malaysian Reserve
Sempra Reports First-Quarter 2025 Results
SAN DIEGO, May 8, 2025 /PRNewswire/ — Sempra (NYSE: SRE) today reported first-quarter 2025 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $906 million or $1.39 per diluted share, compared to first-quarter 2024 GAAP earnings of $801 million or $1.26 per diluted share. On an adjusted basis, first-quarter 2025 earnings were $942 million or $1.44 per diluted share, compared to $854 million or $1.34 per diluted share in 2024. 'We are pleased to report a solid quarter for Sempra, which is the direct result of continued focus on delivering strong financial performance while making steady progress on our strategic initiatives,' said Jeffrey W. Martin, chairman and CEO of Sempra. 'We remain committed to our disciplined growth strategy, which centers on delivering safer and more reliable energy to the nearly 40 million consumers we serve.' The reported financial results reflect certain significant items as described on an after-tax basis in the following table of GAAP earnings, reconciled to adjusted earnings, for first-quarter 2025 and 2024. (Dollars and shares in millions, except EPS) Three months ended March 31, 2025 2024 GAAP Earnings $ 906 $ 801 Impact from foreign currency and inflation on monetary positions in Mexico (8) 41 Net unrealized losses on derivatives 35 12 Net unrealized losses on interest rate swaps related to Port Arthur LNG Phase 1 project 9 — Adjusted Earnings(1) $ 942 $ 854 Diluted Weighted-Average Common Shares Outstanding 653 635 GAAP EPS $ 1.39 $ 1.26 Adjusted EPS(1) $ 1.44 $ 1.34 1) See Table A for information regarding non-GAAP financial measures. Sempra TexasOncor Electric Delivery Company LLC (Oncor) is executing on its $36.1 billion five-year capital plan in the country's fastest growing energy market. The state of Texas continues to demonstrate significant growth in electricity demand with the Electric Reliability Council of Texas (ERCOT) setting a new all-time winter peak demand of 80.5 gigawatts (GW) in the month of February. In response to growing electricity demand, Oncor continues to advance critical transmission and distribution infrastructure projects. These investments also support population growth in Texas and increased reliability for the ERCOT market. At the end of the first quarter of 2025, Oncor had approximately 1,100 active transmission point of interconnection requests in queue, split almost evenly between generation and large commercial and industrial customers. This represents a 35% increase in active requests as compared to the end of first-quarter 2024. Additionally, Oncor increased its premises served by almost 19,000 in the first quarter and built, rebuilt or upgraded nearly 800 miles of transmission and distribution power lines in the first quarter of 2025. Oncor continues to prepare for a comprehensive base rate proceeding utilizing a test year of calendar year 2024, with filing currently targeted for the second quarter of 2025. In October 2024, the Public Utility Commission of Texas ('PUCT') approved the local projects and import paths of the Permian Basin Reliability Plan ('PBRP'). In April 2025, the PUCT decided that the import paths would be built using 765-kV. ERCOT updated its estimated cost for the entirety of the PBRP to approximately $15 billion. Also in January 2025, ERCOT filed a regional transmission expansion plan with the PUCT, which included two options to serve the load projection of 150 gigawatts by 2030. ERCOT estimated that the cost of either plan would be approximately $20 billion. Taken together, the PBRP and the remaining portion of the Regional Transmission Plan would cost approximately $35 billion. Oncor expects to build a significant portion. Sempra CaliforniaServing roughly 25 million consumers, Sempra California is a dual-utility platform focused on connecting people to safe, reliable and cleaner energy. In March 2025, San Diego Gas & Electric Company (SDGE) and Southern California Gas Company (SoCalGas) filed their applications to update their respective costs of capital with the California Public Utilities Commission (CPUC) for the period of 2026 to 2028, subject to the cost of capital adjustment mechanism after 2026. A final decision from the CPUC is expected by the end of the year. Throughout the quarter, SDGE and SoCalGas advanced strategic programs to modernize their energy networks to meet growing demand, while also advancing community safety and system reliability. In March, the CPUC approved the expansion of SDGE's Westside Canal Battery Energy Storage facility in California's Imperial Valley. This expansion project will co-locate an additional 100 megawatts (MW) of energy storage capacity at the existing 131 MW facility and is projected to be fully operational this summer. Also in March, the CPUC approved SoCalGas' first renewable natural gas (RNG) procurement contract under Senate Bill 1440, which sets RNG procurement targets for the state's natural gas utilities. The contract represents an important milestone for the RNG industry and for California's methane emissions reduction goals. Sempra Infrastructure Strong global demand for cleaner and more secure energy continues to support Sempra Infrastructure's development activities across its liquefied natural gas (LNG), energy networks and low-carbon solutions business lines. During the first quarter, Sempra Infrastructure continued to make progress advancing five significant construction projects including infrastructure projects in the U.S. Gulf coast and northern Mexico. Energía Costa Azul LNG Phase 1 continues to target the start-up of commercial operations in spring of 2026, and construction at Port Arthur LNG Phase 1 remains on time and on budget. Earnings GuidanceSempra is updating its full-year 2025 GAAP earnings-per-common-share (EPS) guidance range to $4.25 – $4.65, reflecting actual results through the first quarter, affirming its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70, and affirming its full-year 2026 EPS guidance range of $4.80 to $5.30. The company has also guided to the high-end or above its projected long-term EPS compound annual growth rate of 7% to 9% for 2025 through 2029. Non-GAAP Financial MeasuresNon-GAAP financial measures include Sempra's adjusted earnings, adjusted EPS and adjusted EPS guidance range. See Table A for additional information regarding these non-GAAP financial measures. Value Creation InitiativesIn addition to today's quarterly results, the company also reiterated its five value creation initiatives in 2025, designed to continue simplifying Sempra's business model, mitigating risk and improving financial performance. 'These value creation initiatives aim to increase long-term value for shareholders, employees, customers and other stakeholders,' said Martin. 'In the first quarter, we made steady progress against our plan of execution. As we extend this work across 2025, we expect to advance the company's ability to deliver improved earnings growth and drive enhanced benefits for consumers and communities across our service territories.' Consistent with these value creation initiatives, the company announced Sempra Infrastructure is targeting the sales of Ecogas México, S. de R.L. de C.V., the owner of three utility franchises providing natural gas distribution services in Mexico, as well as a minority stake in Sempra Infrastructure Partners (SI Partners). SI Partners' minority owners, affiliates of Kohlberg Kravis Roberts & Co. L.P. and Abu Dhabi Investment Authority, have certain rights of first offer for the sale of a minority interest in SI Partners. More details on the progress of these items will be shared in the second quarter earnings call. Together, these sales transactions are expected to be completed over the next 12-18 months and to be accretive to the company's earnings-per-share forecast, while also enhancing credit. These transactions also remain subject to reaching agreement on acceptable pricing and other terms, securing required regulatory and other approvals, finalizing definitive contracts, and other factors and considerations. Internet BroadcastSempra will broadcast a live discussion of its earnings results over the internet today at 12 p.m. ET with the company's senior management. Access is available by logging onto the Investors section of the company's website, The webcast will be available on replay a few hours after its conclusion at About SempraSempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world's most significant economic markets, including California, Texas, Mexico and global energy markets. The company is recognized as a leader in sustainable business practices and for its high-performance culture focused on safety and operational excellence, as demonstrated by Sempra's inclusion in the Dow Jones Sustainability Index North America. More information about Sempra is available at and on social media @Sempra. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise. In this press release, forward-looking statements can be identified by words such as 'believe,' 'expect,' 'intend,' 'anticipate,' 'contemplate,' 'plan,' 'estimate,' 'project,' 'forecast,' 'envision,' 'should,' 'could,' 'would,' 'will,' 'confident,' 'may,' 'can,' 'potential,' 'possible,' 'proposed,' 'in process,' 'construct,' 'develop,' 'opportunity,' 'preliminary,' 'initiative,' 'target,' 'outlook,' 'optimistic,' 'poised,' 'positioned,' 'maintain,' 'continue,' 'progress,' 'advance,' 'goal,' 'aim,' 'commit,' or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, rates from customers or a combination thereof; decisions, denials of cost recovery, audits, investigations, inquiries, ordered studies, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), Comisión Nacional de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service, Public Utility Commission of Texas and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) negotiating pricing and other terms in definitive contracts, (iii) completing construction projects or other transactions on schedule and budget, (iv) realizing anticipated benefits from any of these efforts if completed, (v) obtaining regulatory and other approvals and (vi) third parties honoring their contracts and commitments; changes to our capital expenditure plans and their potential impact on rate base or other growth; changes, due to evolving economic, political and other factors, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries, and (ii) laws and regulations, including those related to tax and the energy industry in the U.S. and Mexico; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact on affordability of San Diego Gas & Electric Company's (SDG&E) and Southern California Gas Company's (SoCalGas) customer rates and their cost of capital and on SDG&E's, SoCalGas' and Sempra Infrastructure's ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices and the imposition of tariffs, (ii) with respect to SDG&E's and SoCalGas' businesses, the cost of meeting the demand for lower carbon and reliable energy in California, and (iii) with respect to Sempra Infrastructure's business, volatility in foreign currency exchange rates; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power, natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid or pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; Oncor Electric Delivery Company LLC's (Oncor) ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; and other uncertainties, some of which are difficult to predict and beyond our control. These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, and on Sempra's website, Investors should not rely unduly on any forward-looking statements. Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC. None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document. SEMPRA Table A CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2025 2024 REVENUES Utilities: Natural gas $ 2,362 $ 2,109 Electric 1,059 1,056 Energy-related businesses 381 475 Total revenues 3,802 3,640 EXPENSES AND OTHER INCOME Utilities: Cost of natural gas (493) (554) Cost of electric fuel and purchased power (52) (89) Energy-related businesses cost of sales (119) (109) Operation and maintenance (1,343) (1,212) Depreciation and amortization (640) (594) Franchise fees and other taxes (196) (184) Other income, net 91 99 Interest income 34 13 Interest expense (433) (305) Income before income taxes and equity earnings 651 705 Income tax expense (57) (172) Equity earnings 325 348 Net income 919 881 Earnings attributable to noncontrolling interests (2) (69) Preferred dividends (11) (11) Earnings attributable to common shares $ 906 $ 801 Basic earnings per common share (EPS): Earnings $ 1.39 $ 1.27 Weighted-average common shares outstanding 651,992 632,821 Diluted EPS: Earnings $ 1.39 $ 1.26 Weighted-average common shares outstanding 653,018 635,354 SEMPRATable A (Continued) RECONCILIATION OF SEMPRA ADJUSTED EARNINGS TO SEMPRA GAAP EARNINGS Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2025 and 2024 as follows: Three months ended March 31, 2025: $8 million impact from foreign currency and inflation on our monetary positions in Mexico $(35) million net unrealized losses on commodity derivatives $(9) million net unrealized losses on interest rate swaps related to the initial phase of the Port Arthur LNG liquefaction project (PA LNG Phase 1 project) Three months ended March 31, 2024: $(41) million impact from foreign currency and inflation on our monetary positions in Mexico $(12) million net unrealized losses on commodity derivatives Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation on our monetary positions in Mexico and net unrealized gains and losses on commodity and interest rate derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP. RECONCILIATION OF ADJUSTED EARNINGS TO GAAP EARNINGS AND ADJUSTED EPS TO GAAP EPS (Dollars in millions, except per share amounts; shares in thousands) Pretax amount Income tax benefit(1) Non-controlling interests Earnings Diluted EPS Pretax amount Income tax expense (benefit)(1) Non-controlling interests Earnings Diluted EPS Three months ended March 31, 2025 Three months ended March 31, 2024 Sempra GAAP Earnings and GAAP EPS $ 906 $ 1.39 $ 801 $ 1.26 Excluded items: Impact from foreign currency and inflation on monetary positions in Mexico $ (2) $ (10) $ 4 (8) (0.01) $ 7 $ 53 $ (19) 41 0.06 Net unrealized losses on commodity derivatives 69 (15) (19) 35 0.05 23 (3) (8) 12 0.02 Net unrealized losses on interest rate swaps related to PA LNG Phase 1 project 65 (4) (52) 9 0.01 — — — — — Sempra Adjusted Earnings and Adjusted EPS $ 942 $ 1.44 $ 854 $ 1.34 Weighted-average common shares outstanding, diluted 653,018 635,354 (1) Income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. SEMPRATable A (Continued) RECONCILIATION OF SEMPRA 2025 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA 2025 GAAP EPS GUIDANCE RANGE Sempra 2025 Adjusted EPS Guidance Range of $4.30 to $4.70 excludes items (after the effects of income taxes and, if applicable, NCI) as follows: $8 million impact from foreign currency and inflation on our monetary positions in Mexico $(35) million net unrealized losses on commodity derivatives $(9) million net unrealized losses on interest rate swaps related to the PA LNG Phase 1 project Sempra 2025 Adjusted EPS Guidance is a non-GAAP financial measure. This non-GAAP financial measure excludes significant items that are generally not related to our ongoing business activities and/or infrequent in nature. This non-GAAP financial measure also excludes the impact from foreign currency and inflation on our monetary positions in Mexico and net unrealized gains and losses on commodity and interest rate derivatives for the three months ended March 31, 2025, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. This non-GAAP financial measure does not contemplate the anticipated impacts of the proposed sale of Ecogas México, S. de R.L. de C.V. and the proposed sale of a minority interest in Sempra Infrastructure Partners, which combined, are expected to be accretive. Sempra 2025 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 2025 GAAP EPS Guidance Range. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles Sempra 2025 Adjusted EPS Guidance Range to Sempra 2025 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP. RECONCILIATION OF ADJUSTED EPS GUIDANCE RANGE TO GAAP EPS GUIDANCE RANGE Full-Year 2025 Sempra GAAP EPS Guidance Range $ 4.25 to $ 4.65 Excluded items: Impact from foreign currency and inflation on monetary positions in Mexico (0.01) (0.01) Net unrealized losses on commodity derivatives 0.05 0.05 Net unrealized losses on interest rate swaps related to PA LNG Phase 1 project 0.01 0.01 Sempra Adjusted EPS Guidance Range $ 4.30 to $ 4.70 Weighted-average common shares outstanding, diluted (millions) 654 SEMPRA Table B CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, December 31, 2025 2024(1) ASSETS Current assets: Cash and cash equivalents $ 1,739 $ 1,565 Restricted cash 20 21 Accounts receivable – trade, net 2,107 1,983 Accounts receivable – other, net 432 397 Due from unconsolidated affiliates 15 13 Income taxes receivable 66 90 Inventories 568 559 Prepaid expenses 227 255 Regulatory assets 86 60 Fixed-price contracts and other derivatives 136 91 Greenhouse gas allowances 218 217 Other current assets 51 34 Total current assets 5,665 5,285 Other assets: Restricted cash 3 3 Regulatory assets 4,272 3,937 Greenhouse gas allowances 1,053 845 Nuclear decommissioning trusts 865 875 Dedicated assets in support of certain benefit plans 566 585 Deferred income taxes 194 172 Right-of-use assets – operating leases 1,177 1,177 Investment in Oncor Holdings 15,871 15,400 Other investments 2,501 2,534 Goodwill 1,602 1,602 Other intangible assets 286 292 Wildfire fund 258 262 Other long-term assets 1,656 1,749 Total other assets 30,304 29,433 Property, plant and equipment, net 63,041 61,437 Total assets $ 99,010 $ 96,155 (1) Derived from audited financial statements. SEMPRA Table B (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, December 31, 2025 2024(1) LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 2,113 $ 2,016 Accounts payable – trade 1,976 2,238 Accounts payable – other 179 208 Dividends and interest payable 909 773 Accrued compensation and benefits 398 558 Regulatory liabilities 490 141 Current portion of long-term debt and finance leases 2,331 2,274 Greenhouse gas obligations 218 217 Other current liabilities 1,320 1,251 Total current liabilities 9,934 9,676 Long-term debt and finance leases 33,286 31,558 Deferred credits and other liabilities: Due to unconsolidated affiliates 355 352 Regulatory liabilities 3,847 3,817 Greenhouse gas obligations 755 506 Pension and other postretirement benefit plan obligations, net of plan assets 188 168 Deferred income taxes 5,988 5,845 Asset retirement obligations 3,751 3,737 Deferred credits and other 2,704 2,708 Total deferred credits and other liabilities 17,588 17,133 Equity: Sempra shareholders' equity 31,643 31,222 Preferred stock of subsidiary 20 20 Other noncontrolling interests 6,539 6,546 Total equity 38,202 37,788 Total liabilities and equity $ 99,010 $ 96,155 (1) Derived from audited financial statements. SEMPRA Table C CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in millions) Three months ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 919 $ 881 Adjustments to reconcile net income to net cash provided by operating activities 402 469 Net change in working capital components (35) 319 Distributions from investments 291 232 Changes in other noncurrent assets and liabilities, net (95) (50) Net cash provided by operating activities 1,482 1,851 CASH FLOWS FROM INVESTING ACTIVITIES Expenditures for property, plant and equipment (2,336) (1,933) Expenditures for investments (486) (193) Purchases of nuclear decommissioning and other trust assets (292) (197) Proceeds from sales of nuclear decommissioning and other trust assets 329 217 Other — (1) Net cash used in investing activities (2,785) (2,107) CASH FLOWS FROM FINANCING ACTIVITIES Common dividends paid (380) (362) Issuances of common stock 10 10 Repurchases of common stock (57) (40) Issuances of debt (maturities greater than 90 days) 2,941 2,044 Payments on debt (maturities greater than 90 days) and finance leases (994) (846) Decrease in short-term debt, net (70) (498) Advances from unconsolidated affiliates 44 45 Distributions to noncontrolling interests (38) (111) Contributions from noncontrolling interests 34 474 Other (14) (16) Net cash provided by financing activities 1,476 700 Effect of exchange rate changes on cash, cash equivalents and restricted cash — 1 Increase in cash, cash equivalents and restricted cash 173 445 Cash, cash equivalents and restricted cash, January 1 1,589 389 Cash, cash equivalents and restricted cash, March 31 $ 1,762 $ 834 SEMPRA Table D SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES (Dollars in millions) Three months ended March 31, 2025 2024 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES Sempra California $ 724 $ 582 Sempra Texas Utilities 146 183 Sempra Infrastructure 146 131 Segment earnings attributable to common shares 1,016 896 Parent and other (110) (95) Sempra earnings attributable to common shares $ 906 $ 801 CAPITAL EXPENDITURES FOR PROPERTY, PLANT AND EQUIPMENT Sempra California $ 1,094 $ 1,143 Sempra Infrastructure 1,241 790 Segment totals 2,335 1,933 Parent and other 1 — Total Sempra $ 2,336 $ 1,933 CAPITAL EXPENDITURES FOR INVESTMENTS Sempra Texas Utilities $ 486 $ 193 Total Sempra $ 486 $ 193 SEMPRA Table E OTHER OPERATING STATISTICS Three months ended March 31, 2025 2024 UTILITIES Sempra California Gas sales (Bcf)(1) 116 122 Transportation (Bcf)(1) 131 142 Total deliveries (Bcf)(1) 247 264 Total gas customer meters (thousands) 7,122 7,089 Electric sales (millions of kWhs)(1) 715 935 Community Choice Aggregation and Direct Access (millions of kWhs) 3,432 3,169 Total deliveries (millions of kWhs)(1) 4,147 4,104 Total electric customer meters (thousands) 1,535 1,522 Oncor Electric Delivery Company LLC (Oncor)(2) Total deliveries (millions of kWhs) 39,006 37,313 Total electric customer meters (thousands) 4,065 3,988 Ecogas México, S. de R.L. de C.V. Natural gas sales (Bcf) 1 1 Natural gas customer meters (thousands) 165 159 ENERGY-RELATED BUSINESSES Sempra Infrastructure Termoeléctrica de Mexicali (millions of kWhs) 702 980 Wind and solar (millions of kWhs)(1) 746 719 (1) Includes intercompany sales. (2) Includes 100% of the electric deliveries and customer meters of Oncor, in which we hold an 80.25% interest through our investment in Oncor Electric Delivery Holdings Company LLC. SEMPRA Table F STATEMENTS OF OPERATIONS DATA BY SEGMENT (Dollars in millions) Sempra California Sempra Texas Utilities(1) Sempra Infrastructure Consolidating Adjustments, Parent & Other Total Three months ended March 31, 2025 Revenues $ 3,401 $ 426 $ (25) $ 3,802 Depreciation and amortization (562) (76) (2) (640) Interest income 2 19 13 34 Interest expense(2) (225) (77) (131) (433) Income tax (expense) benefit (52) (22) 17 (57) Equity earnings — $ 148 177 — 325 Earnings attributable to noncontrolling interests — — (2) — (2) Other segment items(3) (1,840) (2) (299) 18 (2,123) Earnings (losses) attributable to common shares $ 724 $ 146 $ 146 $ (110) $ 906 Three months ended March 31, 2024 Revenues $ 3,141 $ 519 $ (20) $ 3,640 Depreciation and amortization (521) (72) (1) (594) Interest income 3 5 5 13 Interest expense (205) — (100) (305) Income tax (expense) benefit (83) (109) 20 (172) Equity earnings — $ 185 163 — 348 Earnings attributable to noncontrolling interests — — (69) — (69) Other segment items(3) (1,753) (2) (306) 1 (2,060) Earnings (losses) attributable to common shares $ 582 $ 183 $ 131 $ (95) $ 801 (1) Substantially all earnings attributable to common shares are from equity earnings. (2) Sempra Infrastructure includes net unrealized gains (losses) from undesignated interest rate swaps related to the PA LNG Phase 1 project. (3) Includes cost of natural gas, cost of electric fuel and purchased power, O&M, franchise fees and other taxes, and other income (expense), net, for Sempra California; O&M for Sempra Texas Utilities related to activities at the holding company; and cost of natural gas, energy-related businesses cost of sales, O&M, franchise fees and other taxes, and other income (expense), net, for Sempra Infrastructure.
