Sempra Reports 2024 Financial and Business Results

Rhea-AI Summary

Sempra (NYSE: SRE) has reported its 2024 financial results with full-year GAAP earnings of $2.82 billion or $4.42 per diluted share, compared to $3.03 billion or $4.79 per diluted share in 2023. On an adjusted basis, 2024 earnings were $2.97 billion or $4.65 per diluted share, up from $2.92 billion or $4.61 per diluted share in 2023.

The company announced a significant increase in its five-year capital plan to $56 billion, representing a 16% increase from its prior plan. Over 90% of projected capital expenditures will focus on regulated utility investments in Texas and California. Sempra is targeting a 2025 final investment decision for Port Arthur LNG Phase 2.

Sempra has adjusted its 2025 EPS guidance to $4.30-$4.70 and issued 2026 EPS guidance of $4.80-$5.30. The company has also increased its long-term EPS growth rate to 7%-9%. Over half of planned capital expenditures are earmarked for Texas, with Oncor's new five-year capital plan of $36 billion representing a 50% increase over last year's plan.

The board of directors declared a quarterly dividend of $0.645 per share, increasing the annualized dividend to $2.58 per share from $2.48 in 2024.

Positive

• Increased five-year capital plan to $56 billion, up 16% from prior plan
• Raised long-term EPS growth rate to 7%-9%
• Adjusted earnings increased to $2.97 billion in 2024 from $2.92 billion in 2023
• Oncor's five-year capital plan increased 50% to $36 billion
• Quarterly dividend increased to $0.645 per share ($2.58 annualized)
• Port Arthur LNG Phase 1 construction remains on time and on budget
• Cameron LNG Phase 1 loaded nearly 200 cargoes in 2024

Negative

• Full-year 2024 GAAP earnings decreased to $2.82 billion from $3.03 billion in 2023
• GAAP earnings per share decreased to $4.42 from $4.79 year-over-year
• Revised 2025 EPS guidance downward due to regulatory matters and higher-cost environment

Insights

Financial Analyst

Sempra's $56B Capital Plan Signals Strategic Reset and Accelerated Growth Trajectory

Sempra's 2024 results reveal a strategic pivot that merits investor attention. While adjusted earnings showed only modest growth to $2.97 billion ($4.65 per share), the company has unveiled a transformative $56 billion five-year capital plan that represents a 16% increase from its previous outlook. This capital deployment strategy is deliberately designed to significantly expand the company's rate base by approximately 10% annually, creating a solid foundation for sustainable earnings growth.

The 2025 EPS guidance reset to $4.30-$4.70 (down from previous expectations) represents a necessary recalibration due to regulatory timing and inflationary pressures. However, this reset establishes a new baseline from which management projects 12% earnings growth to $4.80-$5.30 in 2026. The increased long-term EPS growth rate of 7-9% (up from 6-8%) indicates management's confidence in their ability to efficiently deploy capital and generate returns above their cost of capital.

The strategic shift toward Texas is particularly noteworthy. Oncor's expanded $36 billion five-year capital plan (50% higher than previous plans) is responding to extraordinary demand growth in the ERCOT market. The 250% year-over-year increase in Oncor's interconnection queue to 137 gigawatts demonstrates the magnitude of industrial and commercial expansion in Texas, driven by data centers, manufacturing, and population growth. This represents one of the most significant utility growth opportunities in the country.

Regulatory developments provide important tailwinds. The Public Utility Commission of Texas' approval of Oncor's $3 billion System Resiliency Plan creates a clear path for recovery of these critical investments. Similarly, the California Public Utilities Commission's December rate case decision provides improved visibility through 2027 for Sempra California, though returns will likely remain constrained in that jurisdiction.

The LNG business continues to develop as a complementary growth driver. Port Arthur LNG Phase 2's targeted 2025 FID would further expand Sempra's contracted LNG portfolio, with Saudi Aramco already anchoring the project through a non-binding HOA. This represents a significant potential value creation opportunity beyond the core utility business.

The 4% dividend increase to an annualized $2.58 per share, while modest, signals management's confidence in the company's long-term cash flow generation capabilities despite the near-term guidance reset. With over 90% of capital expenditures focused on regulated utility investments, Sempra is positioning itself as a lower-risk growth utility with increasing exposure to the high-growth Texas market.

Energy Infrastructure Specialist

Unprecedented $56B Infrastructure Buildout Positions Sempra at Epicenter of Texas Energy Boom

Sempra's $56 billion five-year capital plan represents one of the most aggressive infrastructure buildout programs in the utility sector, with the company strategically shifting its center of gravity toward the booming Texas market. The scale of Oncor's $36 billion five-year plan (50% larger than previous projections) is extraordinary even by Texas standards, exceeding the capital plans of peers like American Electric Power and Entergy in the region.

The driving force behind this unprecedented expansion is the extraordinary load growth in ERCOT. The 250% year-over-year increase in Oncor's interconnection queue to 137 gigawatts represents approximately 130% of ERCOT's current total generation capacity. This demand surge stems from multiple vectors: hyperscale data center expansions (requiring 50-100MW each), semiconductor manufacturing following the CHIPS Act, and broader industrial relocations seeking reliable power in a business-friendly regulatory environment. These aren't speculative projects – they represent firm customer commitments requiring substantial transmission infrastructure.

The Texas regulatory model provides a important advantage for these investments. The state's forward-looking regulatory framework allows for timely recovery of transmission investments through twice-yearly TCOS (Transmission Cost of Service) filings, significantly reducing regulatory lag compared to traditional rate case processes. Oncor's planned comprehensive base rate review later this year will be its first since 2017, allowing for recalibration of its overall revenue requirements to reflect this dramatically changed operating environment.

The $3 billion System Resiliency Plan approved by the PUCT represents a critical grid hardening initiative following Winter Storm Uri and other extreme weather events. This includes targeted undergrounding of vulnerable circuits, advanced sectionalizing equipment to isolate outages, and enhanced vegetation management – investments that should improve both reliability metrics and regulatory returns through performance incentives.

California presents a more challenging investment landscape, though the December CPUC decision provides regulatory certainty through 2027. The commission's decision to maintain Aliso Canyon storage operations is particularly significant for system reliability as California balances renewable integration with baseload needs. SDG&E's record 5,032MW peak demand underscores the need for continued investment despite a more constrained regulatory environment.

The LNG portfolio continues advancing against a favorable global market backdrop. Port Arthur Phase 2's targeted 2025 FID comes as global LNG demand is projected to grow 50% by 2035, with European and Asian buyers seeking long-term contracts with reliable suppliers. The Saudi Aramco preliminary agreement represents both an offtake anchor and potential capital partner, potentially reducing Sempra's direct funding requirements.

This strategic reset – shifting capital allocation toward higher-growth, higher-return opportunities in Texas while maintaining regulated utility stability – positions Sempra to deliver on its increased 7-9% long-term EPS growth rate despite the near-term 2025 guidance reset.

• Raises Five-Year Capital Plan to $56B
• Targets 2025 FID for Port Arthur LNG Phase 2
• Adjusts 2025 EPS Guidance to $4.30 to $4.70
• Issues 2026 EPS Guidance of $4.80 to $5.30
• Increases Long-Term EPS Growth Rate to 7% to 9%

SAN DIEGO, Feb. 25, 2025 /PRNewswire/ -- Sempra (NYSE: SRE) today reported full-year 2024 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $2.82 billion or $4.42 per diluted share, compared to full-year 2023 GAAP earnings of $3.03 billion or $4.79 per diluted share. On an adjusted basis, the company's full-year 2024 earnings were $2.97 billion or $4.65 per diluted share, compared to $2.92 billion or $4.61 per diluted share in 2023.  

"With the reset of our guidance in 2025, we are setting a new foundation for a decisive decade of growth," said Jeffrey W. Martin, chairman and CEO of Sempra. "We are also announcing a record five-year capital plan of $56 billion and raising the company's long-term EPS growth rate to 7%-9%. Over half of planned capital expenditures are earmarked for Texas, where significant new investments are needed to expand and modernize the energy grid. This is consistent with Sempra's 2030 aspirations of producing over 50% of its earnings from the State of Texas."

The company also reported fourth-quarter 2024 GAAP earnings of $665 million or $1.04 per diluted share, compared to fourth-quarter 2023 GAAP earnings of $737 million or $1.16 per diluted share. On an adjusted basis, the company's fourth-quarter 2024 earnings were $960 million or $1.50 per diluted share, compared to $719 million or $1.13 per diluted share in fourth-quarter 2023.

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 the fourth quarter and full-year 2024 and 2023.

	(Dollars and shares in millions, except EPS)	Three months ended December 31,				Years ended December 31,
		2024		2023		2024		2023
	GAAP Earnings	$     665		$     737		$  2,817		$  3,030
	Impact from regulatory disallowances	104		—		104		—
	Retroactive impact of 2024 General Rate Case Final Decision for the first nine months of 2024	(22)		—		—		—
	Equity losses from write-off of rate base disallowances resulting from Public Utility      Commission of Texas' final order in Oncor Electric Delivery Company LLC's      comprehensive base rate review	—		—		—		44
	Impact from foreign currency and inflation on monetary positions in Mexico	(84)		69		(262)		235
	Net unrealized losses (gains) on derivatives	13		(47)		26		(366)
	Net unrealized (gains) losses on interest rate swaps related to Port Arthur LNG Phase 1 project	(30)		—		(30)		17
	Impact from foreign tax credit valuation allowance	330		—		330		—
	Earnings from investment in RBS Sempra Commodities LLP	(16)		(40)		(16)		(40)
	Adjusted Earnings(1)	$     960		$     719		$  2,969		$  2,920
	Diluted Weighted-Average Common Shares Outstanding	641		634		638		633
	GAAP EPS	$    1.04		$    1.16		$    4.42		$    4.79
	Adjusted EPS(1)	$    1.50		$    1.13		$    4.65		$    4.61

1) See Table A for information regarding non-GAAP financial measures.

Progress at Sempra's Three Growth Platforms
Sempra's three growth platforms – Sempra California, Sempra Texas and Sempra Infrastructure – deliver energy to nearly 40 million consumers across some of the world's most significant economic markets.

"Last year we made great strides in improving safety, operations and customer service across all three business lines," said Martin. "Building out the scope and scale of our business means continued investments in innovation and technology to drive value to our customers in the form of improved safety, service quality, and affordability."

Sempra Texas 
Led by Oncor Electric Delivery Company LLC (Oncor), Sempra Texas is executing on a significant growth campaign in the country's fastest growing energy market. Oncor's new five-year capital plan of $36 billion represents a 50% increase over last year's five-year plan, driven by a portfolio of diverse investment opportunities across both geography and customer mix. Oncor is contemplating filing a comprehensive base rate review later this year.

In 2024, Oncor invested close to $4.7 billion to support the growing needs of its customers. Over $2 billion of transmission projects were placed into service by Oncor in 2024, including placement of over 75 substation projects and over 45 switching station projects. In 2024, Oncor built, rebuilt or upgraded approximately 4,300 miles of transmission and distribution lines. In 2024, Oncor saw a 27% increase in new transmission interconnection requests as compared to 2023, the majority of which are from large commercial and industrial customers. At the end of 2024, Oncor had a diverse set of large commercial and industrial customers representing 137 gigawatts of potential load active in its interconnection queue, representing an approximate 250% increase from 2023.  

Oncor's first System Resiliency Plan (SRP) was approved by the Public Utility Commission of Texas (PUCT) in November. Under the SRP, Oncor plans to invest nearly $3 billion of capital expenditures and over $500 million in incremental operations and maintenance expenses, with the majority of the spend to occur between the years 2025 through 2027, to help reduce the impact and duration of severe weather outages and address other physical and cybersecurity improvements to the electric grid.

Sempra California
Serving roughly 25 million consumers, Sempra California is a dual-utility platform focused on connecting people to safe, reliable and cleaner energy. In 2024, demand for electricity reached an all-time high of 5,032 megawatts in San Diego Gas & Electric's (SDGE) service territory, highlighting the growing importance of continued investments in the energy grid to deliver new sources of energy to the California market.

In 2024, SDGE opened a new state-of-the-art Wildfire and Climate Resiliency Center dedicated to risk mitigation and enhancing the company's capabilities in wildfire and climate resilience, representing Sempra California's continued focus on extending its position as a leader in community safety through proactive mitigation of wildfire risk.

In December, Sempra California's regulated utilities received a final decision from the California Public Utilities Commission (CPUC) on their general rate cases, which improves visibility to utility investments through 2027. Also in December, the CPUC determined that maintaining natural gas storage levels at Southern California Gas Company's Aliso Canyon storage facility is currently critical for the continued reliability of California's electric grid and natural gas system, as well as consumer affordability.

Sempra Infrastructure
In 2024, Sempra Infrastructure reached commercial operations on both the Gasoducto Rosarito pipeline expansion and Topolobampo Terminal and made progress advancing five significant construction projects while further strengthening its ability to capitalize on growing demand for cleaner and more secure energy in global markets.

Cameron LNG Phase 1 continues to deliver superior production of liquefied natural gas (LNG) and loaded nearly 200 cargoes in 2024. As the company executes the ongoing development and construction of its LNG portfolio, 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.  

The Port Arthur LNG Phase 2 development project is receiving strong commercial interest. Sempra Infrastructure continues to hold substantial, active discussions with world-class companies for participation in the Phase 2 project, which is already anchored by a non-binding HOA for LNG offtake and a proposed equity investment with a subsidiary of Saudi Aramco, as well as a fixed-price engineering, procurement and construction contract with Bechtel Energy. The company is targeting a final investment decision in 2025, pending the execution of definitive commercial agreements, obtaining permits and securing financing, among other factors.

Capital Plan Growth
Sempra is forecasting a company-record five-year 2025-2029 capital plan of approximately $56 billion, which represents a 16% increase from its prior plan, with over 90% of projected capital expenditures focused on regulated utility investments in Texas and California.

"Our team is excited about our new five-year capital plan, which is designed to help meet the energy needs of customers today and tomorrow, while significantly expanding our projected utility rate base by roughly 10% annually," said Karen Sedgwick, executive vice president and chief financial officer of Sempra. "When considering the long-term trends in Sempra's core markets, we are confident there will be significant opportunities to deploy incremental capital through the end of the decade and beyond."

Earnings Guidance
Due to recent and planned regulatory matters and the backdrop of a higher-cost environment, Sempra is revising its full-year 2025 earnings-per-common share (EPS) guidance range to $4.30 to $4.70. Sempra is also issuing full-year 2026 EPS guidance of $4.80 to $5.30. Using 2025 as the foundation for the company's future growth, 2026 guidance represents a 12% year-over-year increase from the midpoint of 2025 guidance. The company is also increasing its projected long-term EPS growth rate to 7% to 9%.

Common and Preferred Dividends 
Sempra's board of directors declared a $0.645 per share quarterly dividend on the company's common stock, which is payable April 15, 2025, to common stock shareholders of record at the close of business on March 20, 2025. The declared quarterly dividend represents an increase of the company's common stock dividend to $2.58 per share, on an annualized basis, from $2.48 per share in 2024.

Additionally, Sempra's board of directors declared a semi-annual dividend of $24.375 per share on the company's 4.875% Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, Series C. The preferred stock dividends will be payable April 15, 2025, to preferred stock shareholders of record at the close of business on April 1, 2025.

Non-GAAP Financial Measures
Non-GAAP financial measures include Sempra's adjusted earnings and adjusted EPS. See Table A for additional information regarding these non-GAAP financial measures.

Internet Broadcast
Sempra 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, sempra.com/investors. The webcast will be available on replay a few hours after its conclusion at sempra.com/investors.

About Sempra
Sempra 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 sempra.com 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 Reguladora 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) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, (iv) obtaining third-party consents and approvals and (v) third parties honoring their contracts and commitments; changes to our capital expenditure plans and their potential impact on rate base or other growth; litigation, arbitration, property disputes and other proceedings, and changes (i) to laws and regulations, including those related to tax and the energy industry in Mexico, (ii) due to the results of elections, and (iii) in trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries; 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, (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, www.sec.gov, and on Sempra's website, www.sempra.com. 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended December 31,				Years ended December 31,
	2024		2023		2024(1)		2023(1)
REVENUES
Utilities:
Natural gas	$        2,343		$        1,935		$        7,141		$        9,495
Electric	1,027		1,003		4,296		4,334
Energy-related businesses	388		553		1,748		2,891
Total revenues	3,758		3,491		13,185		16,720
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas	(342)		(465)		(1,132)		(3,719)
Cost of electric fuel and purchased power	(18)		10		(245)		(375)
Energy-related businesses cost of sales	(83)		(111)		(380)		(548)
Operation and maintenance	(1,465)		(1,500)		(5,336)		(5,458)
Depreciation and amortization	(626)		(576)		(2,437)		(2,227)
Franchise fees and other taxes	(178)		(168)		(693)		(677)
Other (expense) income, net	(58)		56		136		131
Interest income	14		29		61		89
Interest expense	(105)		(314)		(1,049)		(1,309)
Income before income taxes and equity earnings	897		452		2,110		2,627
Income tax (expense) benefit	(282)		9		(219)		(490)
Equity earnings	374		395		1,609		1,481
Net income	989		856		3,500		3,618
Earnings attributable to noncontrolling interests	(313)		(108)		(638)		(543)
Preferred dividends	(11)		(11)		(44)		(44)
Preferred dividends of subsidiary	—		—		(1)		(1)
Earnings attributable to common shares	$           665		$           737		$        2,817		$        3,030
Basic earnings per common share (EPS):
Earnings	$          1.05		$          1.17		$          4.44		$          4.81
Weighted-average common shares outstanding	635,144		631,284		633,795		630,296
Diluted EPS:
Earnings	$          1.04		$          1.16		$          4.42		$          4.79
Weighted-average common shares outstanding	641,395		634,228		637,943		632,733

(1)      Derived from audited financial statements.

 

SEMPRA
Table 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 2024 and 2023 as follows:

Three months ended December 31, 2024:

• $(104) million impact from regulatory disallowances at Sempra California consisting of:

• • $(89) million charge from the Federal Energy Regulatory Commission (FERC) order finding that the Electric Transmission Owner Formula Rate, effective June 1, 2019 (TO5), adder refund provision has been triggered, requiring Sempra California to refund customers the California Independent System Operator (California ISO) adder retroactively from June 1, 2019

• • $(15) million impairment from disallowed capital costs in the 2024 General Rate Case Final Decision (2024 GRC FD)

• $22 million impact from the retroactive application of the 2024 GRC FD for the first nine months of 2024 at Sempra California

• $84 million impact from foreign currency and inflation on our monetary positions in Mexico

• $(13) million net unrealized losses on commodity derivatives

• $30 million net unrealized gains on interest rate swaps related to the initial phase of the Port Arthur LNG liquefaction project (PA LNG Phase 1 project)

• $(330) million income tax expense in 2024 from changes to a valuation allowance against foreign tax credits that were carried forward from the implementation of the Tax Cuts and Jobs Act of 2017 (TCJA)
  
  
• $16 million equity earnings from investment in RBS Sempra Commodities LLP from the substantial dissolution of the partnership

Three months ended December 31, 2023:

• $(69) million impact from foreign currency and inflation on our monetary positions in Mexico

• $47 million net unrealized gains on commodity derivatives
  
  
• $40 million equity earnings from investment in RBS Sempra Commodities LLP based on a legal settlement

Year ended December 31, 2024:

• $(104) million impact from regulatory disallowances at Sempra California consisting of:

• • $(89) million charge from the FERC order finding that the TO5 adder refund provision has been triggered, requiring Sempra California to refund customers the California ISO adder retroactively from June 1, 2019

• • $(15) million impairment from disallowed capital costs in the 2024 GRC FD

• $262 million impact from foreign currency and inflation on our monetary positions in Mexico

• $(26) million net unrealized losses on commodity derivatives

• $30 million net unrealized gains on interest rate swaps related to the PA LNG Phase 1 project

• $(330) million income tax expense in 2024 from changes to a valuation allowance against foreign tax credits that were carried forward from the implementation of the TCJA
  
  
• $16 million equity earnings from investment in RBS Sempra Commodities LLP from the substantial dissolution of the partnership

Year ended December 31, 2023:

• $(44) million equity losses from investment in Oncor Electric Delivery Holdings Company LLC (Oncor Holdings) related to a write-off of rate base disallowances resulting from the Public Utility Commission of Texas' (PUCT) final order in Oncor Electric Delivery Company LLC's (Oncor) comprehensive base rate review

• $(235) million impact from foreign currency and inflation on our monetary positions in Mexico

• $366 million net unrealized gains on commodity derivatives

• $(17) million net unrealized losses on a contingent interest rate swap related to the PA LNG Phase 1 project
  
  
• $40 million equity earnings from investment in RBS Sempra Commodities LLP based on a legal settlement

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.

 

SEMPRA Table A (Continued)
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) expense(1)	Non-controlling  interests	Earnings		Diluted  EPS		Pretax amount	Income tax expense (benefit)(1)	Non-controlling interests	Earnings		Diluted EPS
			Three months ended December 31, 2024							Three months ended December 31, 2023
Sempra GAAP Earnings and GAAP EPS						$        665		$       1.04					$        737		$       1.16
Excluded items:
	Impact from regulatory disallowances		$        140	$        (36)	$          —	104		0.16		$          —	$          —	$          —	—		—
	Retroactive impact of 2024 GRC FD for the first nine months of 2024		(30)	8	—	(22)		(0.03)		—	—	—	—		—
	Impact from foreign currency and inflation on monetary positions in Mexico		2	(125)	39	(84)		(0.13)		22	80	(33)	69		0.10
	Net unrealized losses (gains) on commodity derivatives		27	(5)	(9)	13		0.02		(92)	16	29	(47)		(0.07)
	Net unrealized gains on interest rate swaps related to PA LNG Phase 1 project		(212)	11	171	(30)		(0.05)		—	—	—	—		—
	Impact from foreign tax credit valuation allowance		—	330	—	330		0.52		—	—	—	—		—
	Earnings from investment in RBS Sempra Commodities LLP		(19)	3	—	(16)		(0.03)		(40)	—	—	(40)		(0.06)
Sempra Adjusted Earnings and Adjusted EPS						$        960		$       1.50					$        719		$       1.13
Weighted-average common shares outstanding, diluted								641,395							634,228
			Year ended December 31, 2024							Year ended December 31, 2023
Sempra GAAP Earnings and GAAP EPS						$     2,817		$       4.42					$     3,030		$       4.79
Excluded items:
	Impact from regulatory disallowances		$        140	$        (36)	$          —	104		0.16		$          —	$          —	$          —	—		—
	Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's comprehensive base rate review		—	—	—	—		—		—	—	—	44		0.07
	Impact from foreign currency and inflation on monetary positions in Mexico		(50)	(336)	124	(262)		(0.41)		62	283	(110)	235		0.36
	Net unrealized losses (gains) on commodity derivatives		51	(8)	(17)	26		0.04		(722)	144	212	(366)		(0.58)
	Net unrealized (gains) losses on interest rate swaps related to PA LNG Phase 1 project		(212)	11	171	(30)		(0.05)		33	(6)	(10)	17		0.03
	Impact from foreign tax credit valuation allowance		—	330	—	330		0.52		—	—	—	—		—
	Earnings from investment in RBS Sempra Commodities LLP		(19)	3	—	(16)		(0.03)		(40)	—	—	(40)		(0.06)
Sempra Adjusted Earnings and Adjusted EPS						$     2,969		$       4.65					$     2,920		$       4.61
Weighted-average common shares outstanding, diluted								637,943							632,733

(1)

Except for adjustments that are solely income tax, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We record equity losses from our investment in Oncor Holdings net of income tax. We did not record an income tax expense for the equity earnings from our investment in RBS Sempra Commodities LLP in 2023 because, even though a portion may be deductible under United Kingdom tax law, it is not probable that the deduction will reduce United Kingdom taxes.

 

SEMPRA
Table B
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31,
	2024(1)		2023(1)
ASSETS
Current assets:
Cash and cash equivalents	$            1,565		$               236
Restricted cash	21		49
Accounts receivable – trade, net	1,983		2,151
Accounts receivable – other, net	397		561
Due from unconsolidated affiliates	13		31
Income taxes receivable	90		94
Inventories	559		482
Prepaid expenses	255		273
Regulatory assets	60		226
Fixed-price contracts and other derivatives	91		122
Greenhouse gas allowances	217		1,189
Other current assets	34		56
Total current assets	5,285		5,470
Other assets:
Restricted cash	3		104
Regulatory assets	3,937		3,771
Greenhouse gas allowances	845		301
Nuclear decommissioning trusts	875		872
Dedicated assets in support of certain benefit plans	585		549
Deferred income taxes	172		129
Right-of-use assets – operating leases	1,177		723
Investment in Oncor Holdings	15,400		14,266
Other investments	2,534		2,244
Goodwill	1,602		1,602
Other intangible assets	292		318
Wildfire fund	262		269
Other long-term assets	1,749		1,603
Total other assets	29,433		26,751
Property, plant and equipment, net	61,437		54,960
Total assets	$          96,155		$          87,181

(1)        Derived from audited financial statements.

 

SEMPRA
Table B (Continued)
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31,
	2024(1)		2023(1)
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	$            2,016		$            2,342
Accounts payable – trade	2,238		2,211
Accounts payable – other	208		224
Due to unconsolidated affiliates	—		5
Dividends and interest payable	773		691
Accrued compensation and benefits	558		526
Regulatory liabilities	141		553
Current portion of long-term debt and finance leases	2,274		975
Greenhouse gas obligations	217		1,189
Other current liabilities	1,251		1,374
Total current liabilities	9,676		10,090
Long-term debt and finance leases	31,558		27,759
Deferred credits and other liabilities:
Due to unconsolidated affiliates	352		307
Regulatory liabilities	3,817		3,739
Greenhouse gas obligations	506		—
Pension and other postretirement benefit plan obligations, net of plan assets	168		407
Deferred income taxes	5,845		5,254
Asset retirement obligations	3,737		3,642
Deferred credits and other	2,708		2,329
Total deferred credits and other liabilities	17,133		15,678
Equity:
Sempra shareholders' equity	31,222		28,675
Preferred stock of subsidiary	20		20
Other noncontrolling interests	6,546		4,959
Total equity	37,788		33,654
Total liabilities and equity	$          96,155		$          87,181

(1)        Derived from audited financial statements.

 

SEMPRA
Table C
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Years ended December 31,
	2024(1)		2023(1)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$              3,500		$              3,618
Adjustments to reconcile net income to net cash provided by operating activities	926		853
Net change in working capital components	(462)		1,429
Distributions from investments	1,093		912
Changes in other noncurrent assets and liabilities, net	(150)		(594)
Net cash provided by operating activities	4,907		6,218
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(8,215)		(8,397)
Expenditures for investments	(988)		(382)
Distributions from investments	9		—
Purchases of nuclear decommissioning and other trust assets	(889)		(610)
Proceeds from sales of nuclear decommissioning and other trust assets	942		661
Other	23		12
Net cash used in investing activities	(9,118)		(8,716)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid	(1,499)		(1,483)
Preferred dividends paid	(44)		(44)
Issuances of common stock, net	1,219		145
Repurchases of common stock	(43)		(32)
Issuances of debt (maturities greater than 90 days)	8,674		7,669
Payments on debt (maturities greater than 90 days) and finance leases	(3,339)		(6,294)
(Decrease) increase in short-term debt, net	(557)		552
Advances from unconsolidated affiliates	85		31
Proceeds from sales of noncontrolling interests, net	—		1,219
Distributions to noncontrolling interests	(297)		(730)
Contributions from noncontrolling interests	1,235		1,570
Termination of interest rate and settlement of cross-currency swaps	46		(99)
Other	(56)		(85)
Net cash provided by financing activities	5,424		2,419
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(13)		6
Increase (decrease) in cash, cash equivalents and restricted cash	1,200		(73)
Cash, cash equivalents and restricted cash, January 1	389		462
Cash, cash equivalents and restricted cash, December 31	$              1,589		$                 389

(1)        Derived from audited financial statements.

 

SEMPRA
Table D
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES
(Dollars in millions)
	Three months ended December 31,				Years ended December 31,
	2024		2023		2024(1)		2023(1)
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
Sempra California	$             701		$             500		$         1,846		$         1,747
Sempra Texas Utilities	135		146		781		694
Sempra Infrastructure	259		131		911		877
Segment earnings attributable to common shares	1,095		777		3,538		3,318
Parent and other	(430)		(40)		(721)		(288)
Sempra earnings attributable to common shares	$             665		$             737		$         2,817		$         3,030
CAPITAL EXPENDITURES FOR PROPERTY, PLANT AND EQUIPMENT
Sempra California	$         1,424		$         1,216		$         4,753		$         4,560
Sempra Infrastructure	1,026		1,107		3,459		3,832
Segment totals	2,450		2,323		8,212		8,392
Parent and other	—		—		3		5
Total Sempra	$         2,450		$         2,323		$         8,215		$         8,397
CAPITAL EXPENDITURES FOR INVESTMENTS
Sempra Texas Utilities	$             398		$               97		$             976		$             367
Sempra Infrastructure	2		4		12		15
Total Sempra	$             400		$             101		$             988		$             382

(1)        Derived from audited financial statements.

 

SEMPRA
Table D (Continued)
RECONCILIATION OF SEMPRA'S CAPITAL PLAN TO PROJECTED FUTURE CAPITAL EXPENDITURES
(Dollars in billions)
	Sempra California	Sempra Texas Utilities	Sempra Infrastructure	Total Sempra
	Capital Plan for 2025 – 2029(1)
Projected future capital expenditures for PP&E and investments – GAAP	$           22.4	$             8.1	$           10.9	$           41.4
Capital expenditures to unconsolidated entities(2)	—	(8.1)	—	(8.1)
Capital expenditures at unconsolidated entities(3)	—	29.1	0.1	29.2
Capital expenditures attributable to NCI owners(4)	—	—	(7.0)	(7.0)
Capital Plan	$           22.4	$           29.1	$             4.0	$           55.5
Percentage of projected future capital expenditures for PP&E and investments – GAAP	54 %	20 %	26 %	100 %
Percentage of Capital Plan	40 %	53 %	7 %	100 %
	Capital Plan for 2024 – 2028(1)
Projected future capital expenditures for PP&E and investments – GAAP	$           24.1	$             3.4	$           12.9	$           40.4
Capital expenditures to unconsolidated entities(2)	—	(3.4)	—	(3.4)
Capital expenditures at unconsolidated entities(3)	—	19.5	0.1	19.6
Capital expenditures attributable to NCI owners(4)	—	—	(8.6)	(8.6)
Capital Plan	$           24.1	$           19.5	$             4.4	$           48.0
Percentage of projected future capital expenditures for PP&E and investments – GAAP	60 %	8 %	32 %	100 %
Percentage of Capital Plan	50 %	41 %	9 %	100 %
Projected future capital expenditures for PP&E and investments growth rate – GAAP (2024 – 2028 to 2025 – 2029)				2 %
Capital Plan growth rate (2024 – 2028 to 2025 – 2029)				16 %

(1)	All projects in progress and future projects are subject to a number of risks and uncertainties. Sempra's Capital Plan and expectations regarding potential increases to its capital requirements are based on a number of assumptions, the failure of which to be accurate could materially impact Sempra's actual Capital Plan. Sempra's Capital Plan is considered by management to be an operating measure.
(2)	Represents Sempra's projected future capital contributions to unconsolidated equity method investees.
(3)	Represents Sempra's proportionate ownership interest in projected capital expenditures at unconsolidated equity method investees.
(4)	Represents NCI's proportionate ownership interest in projected capital expenditures at Sempra and at unconsolidated equity method investees.

 

SEMPRA
Table E
OTHER OPERATING STATISTICS
		Three months ended December 31,				Years ended or at December 31,
		2024		2023		2024		2023
UTILITIES
Sempra California
Gas sales (Bcf)(1)		95		89		349		369
Transportation (Bcf)(1)		141		150		560		588
Total deliveries (Bcf)(1)		236		239		909		957
Total gas customer meters (thousands)						7,132		7,078
Electric sales (millions of kWhs)(1)		754		974		3,207		4,619
Community Choice Aggregation and Direct Access (millions of kWhs)		3,461		3,227		13,484		12,228
Total deliveries (millions of kWhs)(1)		4,215		4,201		16,691		16,847
Total electric customer meters (thousands)						1,532		1,517
Oncor(2)
Total deliveries (millions of kWhs)		38,827		35,906		162,691		156,477
Total electric customer meters (thousands)						4,046		3,969
Ecogas México, S. de R.L. de C.V.
Natural gas sales (Bcf)		1		1		4		4
Natural gas customer meters (thousands)						163		157
ENERGY-RELATED BUSINESSES
Sempra Infrastructure
Termoeléctrica de Mexicali (millions of kWhs)		964		1,064		3,675		3,086
Wind and solar (millions of kWhs)(1)		594		610		2,888		3,135

(1)	Includes intercompany sales.
(2)	Includes 100% of the electric deliveries and customer meters of Oncor, in which we hold an indirect 80.25% interest through our investment in Oncor Holdings.

 

SEMPRA
Table F
STATEMENTS OF OPERATIONS DATA BY SEGMENT
(Dollars in millions)
Three months ended December 31, 2024	Sempra California		Sempra Texas  Utilities(1)		Sempra Infrastructure		Segment Totals		Consolidating  Adjustments, Parent & Other		Total
Revenues	$                   3,360				$                      416		$                   3,776		$                      (18)		$                   3,758
Depreciation and amortization	(548)				(76)		(624)		(2)		(626)
Interest income	2				6		8		6		14
Interest expense(2)	(221)				243		22		(127)		(105)
Income tax (expense) benefit	(94)				97		3		(285)		(282)
Equity earnings	—		$                      136		219		355		19		374
Earnings attributable to noncontrolling interests	—		—		(313)		(313)		—		(313)
Other segment items(3)	(1,798)		(1)		(333)		(2,132)		(23)		(2,155)
Earnings (losses) attributable to common shares	$                      701		$                      135		$                      259		$                   1,095		$                    (430)		$                      665
Three months ended December 31, 2023	Sempra California		Sempra Texas  Utilities(1)		Sempra Infrastructure		Segment Totals		Consolidating Adjustments, Parent & Other		Total
Revenues	$                   2,920				$                      586		$                   3,506		$                      (15)		$                   3,491
Depreciation and amortization	(502)				(71)		(573)		(3)		(576)
Interest income	5				18		23		6		29
Interest expense(2)	(205)				(2)		(207)		(107)		(314)
Income tax benefit (expense)	95				(118)		(23)		32		9
Equity earnings	—		$                      148		207		355		40		395
Earnings attributable to noncontrolling interests	—		—		(108)		(108)		—		(108)
Other segment items(3)	(1,813)		(2)		(381)		(2,196)		7		(2,189)
Earnings (losses) attributable to common shares	$                      500		$                      146		$                      131		$                      777		$                      (40)		$                      737

(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, operation and maintenance expense (O&M), franchise fees and other taxes, and other income (expense), net, for Sempra California; O&M, interest expense, and income tax (expense) benefit 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.

 

SEMPRA
Table F (Continued)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
(Dollars in millions)
Year ended December 31, 2024(1)	Sempra California		Sempra Texas  Utilities(2)		Sempra Infrastructure		Segment Totals		Consolidating Adjustments, Parent & Other		Total
Revenues	$                11,382				$                   1,882		$                13,264		$                      (79)		$                13,185
Depreciation and amortization	(2,133)				(297)		(2,430)		(7)		(2,437)
Interest income	14				25		39		22		61
Interest expense(3)	(848)				243		(605)		(444)		(1,049)
Income tax (expense) benefit	(184)				164		(20)		(199)		(219)
Equity earnings	—		$                      788		802		1,590		19		1,609
Earnings attributable to noncontrolling interests	—		—		(638)		(638)		—		(638)
Other segment items(4)	(6,385)		(7)		(1,270)		(7,662)		(33)		(7,695)
Earnings (losses) attributable to common shares	$                   1,846		$                      781		$                      911		$                   3,538		$                    (721)		$                   2,817
Year ended December 31, 2023(1)	Sempra California		Sempra Texas Utilities(2)		Sempra Infrastructure		Segment Totals		Consolidating Adjustments, Parent & Other		Total
Revenues	$                13,761				$                   3,071		$                16,832		$                    (112)		$                16,720
Depreciation and amortization	(1,937)				(281)		(2,218)		(9)		(2,227)
Interest income	24				43		67		22		89
Interest expense(3)	(782)				(129)		(911)		(398)		(1,309)
Income tax benefit (expense)	31				(673)		(642)		152		(490)
Equity earnings	—		$                      701		740		1,441		40		1,481
Earnings attributable to noncontrolling interests	—		—		(543)		(543)		—		(543)
Other segment items(4)	(9,350)		(7)		(1,351)		(10,708)		17		(10,691)
Earnings (losses) attributable to common shares	$                   1,747		$                      694		$                      877		$                   3,318		$                    (288)		$                   3,030

(1)	Derived from audited financial statements.
(2)	Substantially all earnings attributable to common shares are from equity earnings.
(3)	Sempra Infrastructure includes net unrealized gains (losses) from undesignated interest rate swaps related to the PA LNG Phase 1 project.
(4)	Includes cost of natural gas, cost of electric fuel and purchased power, O&M, franchise fees and other taxes, other income (expense), net, and preferred dividends for Sempra California; O&M, interest expense, and income tax (expense) benefit 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.

 

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FAQ

What is Sempra's new five-year capital plan for 2025-2029?

Sempra (SRE) announced a record five-year capital plan of approximately $56 billion for 2025-2029, which represents a 16% increase from its prior plan. Over 90% of projected capital expenditures will focus on regulated utility investments in Texas and California.

How much did Sempra adjust its 2025 EPS guidance?

Sempra (SRE) revised its full-year 2025 earnings-per-common share (EPS) guidance range to $4.30 to $4.70, citing recent and planned regulatory matters and a higher-cost environment.

What is Sempra's dividend increase for 2025?

Sempra (SRE) declared a quarterly dividend of $0.645 per share, which represents an increase of the company's common stock dividend to $2.58 per share on an annualized basis, up from $2.48 per share in 2024.

What percentage of Sempra's planned capital expenditures will go to Texas?

Over half of Sempra's (SRE) planned capital expenditures are earmarked for Texas, where significant new investments are needed to expand and modernize the energy grid. This aligns with Sempra's 2030 aspirations of producing over 50% of its earnings from Texas.

When is Sempra targeting the final investment decision for Port Arthur LNG Phase 2?

Sempra (SRE) is targeting a final investment decision (FID) for Port Arthur LNG Phase 2 in 2025, pending the execution of definitive commercial agreements, obtaining permits, and securing financing.

What were Sempra's full-year 2024 earnings compared to 2023?

Sempra (SRE) reported full-year 2024 GAAP earnings of $2.82 billion or $4.42 per diluted share, compared to $3.03 billion or $4.79 per diluted share in 2023. On an adjusted basis, 2024 earnings were $2.97 billion or $4.65 per diluted share, compared to $2.92 billion or $4.61 per diluted share in 2023.

What is Sempra's new long-term EPS growth rate projection?

Sempra (SRE) increased its projected long-term EPS (earnings per share) growth rate to 7% to 9%, using 2025 as the foundation for the company's future growth.