Q4 2024 Sempra Earnings Call Transcript
Key Points
- Sempra (SRE) announced a new record capital plan of $56 billion for 2025 to 2029, representing a 16% increase over the prior plan.
- The company delivered a total return of 21% in 2024 and a solid total return over the last three years of 45%, which compares favorably to the utility sector.
- Sempra (SRE) is raising its projected long-term EPS growth rate to 7% to 9%, with expectations to exceed this range in the 2025 to 2029 period.
- Oncor, a subsidiary of Sempra (SRE), is experiencing significant growth, with a new five-year capital plan totaling $36 billion, an increase of 50% over the previous plan.
- Sempra (SRE) announced an increase in the company's annualized dividend for the 15th consecutive year to $2.58 per share.
- Sempra (SRE) revised its 2025 EPS guidance range to $4.30 to $4.70, which falls below prior expectations.
- The company is facing regulatory challenges, including a 42 basis point decrease in return on equity determined by the CPUC and the removal of a 50 basis point CAISO adder by FERC.
- Higher interest expenses are anticipated due to increased capital investments and changes in interest rates.
- The delay in ECA LNG Phase 1 COD until spring of 2026 and recent changes to natural gas price assumptions are impacting Sempra Infrastructure's guidance.
- Sempra (SRE) is experiencing regulatory lag in Texas, impacting Oncor's earned ROEs, which are currently between 8% and 9%.
Good day and welcome to Sempra's fourth quarter earnings call. Today's conference is being recorded. At this time, I'd like to turn it over to Glen Donovan. Please go ahead.
Good morning and welcome to Sempra's fourth quarter 2024 earnings call. A live webcast of this teleconference and slide presentation are available on our website under our events and presentation section. We have several members of our management team with us today, including Jeff Martin, Chairman and Chief Executive Officer; Karen Sedgwick, Executive Vice President and Chief Financial Officer; Justin Bird, Executive Vice President and Chief Executive Officer of Sempra Infrastructure; Allen Nye, Chief Executive Officer of Oncor; Don Clevenger, Chief Financial Officer of Oncor; Caroline Winn, Chief Executive Officer of SDG&E; Peter Wall, Senior Vice President, Controller and Chief Accounting Officer; and other members of our senior management team.
Before starting, I'd like to remind everyone that we'll be discussing forward-looking statements
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