Sempra Reports Second-Quarter 2024 Earnings Results

Rhea-AI Summary

Sempra (NYSE: SRE) reported second-quarter 2024 GAAP earnings of $713 million, or $1.12 per diluted share, compared to $603 million, or $0.95 per diluted share in Q2 2023. Adjusted earnings were $567 million, or $0.89 per diluted share, compared to $594 million, or $0.94 per diluted share in Q2 2023. For the first six months of 2024, GAAP earnings were $1.514 billion, or $2.38 per diluted share, while adjusted earnings were $1.421 billion, or $2.24 per diluted share. Sempra's subsidiary Oncor reached a settlement in principle on a ~$3B System Resiliency Plan. The company updated its full-year 2024 GAAP EPS guidance to $4.74-$5.04 and affirmed its adjusted EPS guidance of $4.60-$4.90. Sempra also affirmed its 2025 EPS guidance of $4.90-$5.25 and long-term EPS growth rate of 6-8%.

Positive

• Sempra's Q2 2024 GAAP earnings increased to $713 million from $603 million in Q2 2023
• Oncor reached a settlement on a ~$3B System Resiliency Plan
• Strong global demand for cleaner energy supports Sempra Infrastructure's development activities
• Port Arthur LNG Phase 1 is under construction with progress on Phase 2 expansion
• Energía Costa Azul LNG Phase 1 is approximately 85% complete

Negative

• Q2 2024 adjusted earnings decreased to $567 million from $594 million in Q2 2023
• First six months 2024 GAAP and adjusted earnings lower compared to the same period in 2023
• Energía Costa Azul LNG Phase 1 experiencing labor and productivity challenges
• Commercial operations for Energía Costa Azul LNG Phase 1 delayed to spring 2026

Insights

Financial Analyst

Sempra's Q2 2024 results show a mixed performance. GAAP earnings increased to $713 million ($1.12 per share) from $603 million in Q2 2023, but adjusted earnings decreased to $567 million ($0.89 per share) from $594 million. The 18.2% YoY increase in GAAP earnings is positive, but the 4.5% decrease in adjusted earnings is concerning.

The company's affirmed guidance for 2024 adjusted EPS of $4.60 to $4.90 and long-term EPS growth of 6% to 8% suggests confidence in future performance. However, investors should monitor the gap between GAAP and adjusted earnings, as it may indicate underlying challenges.

Oncor's $3 billion System Resiliency Plan settlement is a significant development, potentially driving future growth. The strong demand for new infrastructure in Texas is a positive indicator for Sempra's future earnings potential.

Energy Infrastructure Expert

Sempra's infrastructure developments are promising. The Port Arthur LNG project is progressing well, with Phase 1 under construction and Phase 2 gaining momentum. The potential 5 MTPA LNG purchase agreement and 25% equity investment from Aramco for Phase 2 is a significant vote of confidence.

However, the Energía Costa Azul LNG Phase 1 project faces challenges, with completion delayed to 2025 and commercial operations pushed to spring 2026. This delay could impact near-term revenue projections.

The company's focus on renewable energy initiatives, such as SoCalGas's renewable natural gas contracts and involvement in the ARCHES hydrogen hub, positions Sempra well for the ongoing energy transition. These projects could provide long-term growth opportunities as the demand for cleaner energy solutions increases.

Regulatory Affairs Specialist

The regulatory landscape for Sempra appears generally favorable. The settlement in principle for Oncor's $3 billion System Resiliency Plan is a significant win, potentially allowing for substantial capital investments over the next three years. This could drive growth in Sempra's Texas operations.

In California, the ongoing rate case review by the CPUC is crucial. While the retroactive application of rates to January 1st is positive, the final decision's impact remains uncertain. The completion of SDGE's Wildfire and Climate Resilience Center aligns well with regulatory priorities and could strengthen the company's position in future proceedings.

The progress on renewable gas procurement and hydrogen infrastructure in California demonstrates Sempra's alignment with state policy goals, which could lead to favorable regulatory treatment in the future. However, investors should remain cautious until the CPUC's final decision on the rate cases is announced.

Oncor reaches settlement in principle on ~$3B System Resiliency Plan

SAN DIEGO, Aug. 6, 2024 /PRNewswire/ -- Sempra (NYSE: SRE) (BMV: SRE) today reported second-quarter 2024 earnings, prepared in accordance with generally accepted accounting principles (GAAP), of $713 million, or $1.12 per diluted share, compared to second-quarter 2023 GAAP earnings of $603 million, or $0.95 per diluted share. On an adjusted basis, the company's second-quarter 2024 earnings were $567 million, or $0.89 per diluted share, compared to $594 million, or $0.94 per diluted share in second-quarter 2023.

"At Sempra, we are pleased with the strength of our financial performance through the first half of the year," said Jeffrey W. Martin, chairman and CEO of Sempra. "Our company is well-positioned for continued growth across each of our business platforms, which are benefitting from ongoing electrification, economic development, and demand for safe, reliable and cleaner energy."

Sempra's GAAP earnings for the first six months of 2024 were $1.514 billion, or $2.38 per diluted share, compared with GAAP earnings of $1.572 billion, or $2.49 per diluted share, in the first six months of 2023. Adjusted earnings for the first six months of 2024 were $1.421 billion, or $2.24 per diluted share, compared to $1.516 billion, or $2.40 per diluted share, in the first six months of 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 second quarter and first six months of 2024 and 2023.

	(Dollars and shares in millions, except EPS)	Three months ended June 30,				Six months ended June 30,
		2024		2023		2024		2023
	GAAP Earnings	$     713		$     603		$ 1,514		$ 1,572
	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	(152)		93		(111)		202
	Net unrealized losses (gains) on derivatives	6		(102)		18		(319)
	Net unrealized losses on contingent interest rate swap related to initial phase of the Port       Arthur LNG liquefaction project	—		—		—		17
	Adjusted Earnings(1)	$     567		$     594		$ 1,421		$ 1,516
	Diluted Weighted-Average Common Shares Outstanding	636		632		636		632
	GAAP EPS	$   1.12		$   0.95		$   2.38		$   2.49
	Adjusted EPS(1)	$   0.89		$   0.94		$   2.24		$   2.40

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

Sempra California
The focus at the company's California utilities remains on connecting people to safe, reliable and cleaner energy through the expansion and modernization of energy networks.

The California Public Utilities Commission continues to review the rate requests of Sempra California's utilities, which focus on delivering cleaner energy, safely and reliably, in alignment with California's public policy goals. The final decision is expected before year-end 2024 with rates retroactively effective to Jan. 1 of this year.

In July, San Diego Gas & Electric Co. (SDGE) completed a new Wildfire and Climate Resilience Center, a state-of-the-art facility dedicated to enhancing the company's capabilities in wildfire and climate resilience. The center is one of the most technologically advanced of its kind in the industry and underscores SDGE's position as a leader in climate adaptation and resiliency.

Under California's renewable gas procurement standard, known as Senate Bill 1440, the Southern California Gas Co. (SoCalGas) has filed for approval of three renewable natural gas contracts, pending commission review. In July, California celebrated a milestone in its journey to advance a hydrogen economy with the Department of Energy's Office of Clean Energy Demonstrations awarding its first tranche of hydrogen hub funding to the Alliance of Renewable Clean Hydrogen Energy Systems (ARCHES). The plan for the ARCHES hub includes new SoCalGas infrastructure as part of a network of clean, renewable hydrogen production and distribution with the ultimate goal of helping decarbonize hard-to electrify industries like heavy duty trucking, public transportation and port operations.

Sempra Texas
Yesterday, Oncor Electric Delivery Company LLC (Oncor) successfully reached a settlement in principle regarding the System Resiliency Plan (SRP) originally filed in May. The SRP as filed proposed nearly $3 billion of potential capital investments over a three-year period, and, subject to documentation and approval of the settlement by the Public Utility Commission of Texas, Oncor expects to begin implementing the SRP in the fourth quarter of this year with the related capital being incremental to Oncor's existing capital program.

Broad expansion and load growth across the service territory of Oncor continues driving new investment opportunities. In addition to building new energy infrastructure to meet demand related to artificial intelligence and data centers, load growth is also coming from a wide range of industries across the state, including new and expanded commercial and industrial facilities, electrification of oil and gas operations, manufacturing and residential. 

At the end of second-quarter 2024, Oncor had 814 active generation and large commercial and industrial transmission point-of-interconnection requests in queue, representing a 13% increase as compared to the end of second-quarter 2023 and demonstrating the growing demand for new infrastructure in Oncor's service territory. Oncor placed into service 25 load-serving substation projects and 175 circuit miles of new or upgraded high-voltage transmission lines in second-quarter 2024, outpacing the 9 load-serving substations and 24 circuit miles placed into service in first-quarter 2024.

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.

Port Arthur LNG Phase 1 is under construction while the proposed Phase 2 expansion project is making steady progress. In June, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement contemplating the purchase of 5 million tonnes per annum of LNG and a 25% equity investment in Phase 2, highlighting continued strong interest in the competitive positioning of the company's LNG development projects. Moreover, in July, Sempra Infrastructure took another positive step forward in support of Port Arthur LNG Phase 2 by entering into a fixed-price engineering, procurement and construction contract with Bechtel Energy. The referenced contract with Bechtel provides the opportunity for a continuous construction process from Phase 1 to Phase 2, contributing to the operational benefits and attractive economics of the brownfield expansion.

Construction at Energía Costa Azul LNG Phase 1 is approximately 85% complete but in recent months has experienced labor and productivity challenges. Mechanical completion and first LNG are expected to occur in 2025, with timing of commercial operations under the sales and purchase agreements targeted for spring 2026.

Earnings Guidance
Sempra is updating its full-year 2024 GAAP earnings-per-common share (EPS) guidance range to $4.74 to $5.04 reflecting actual results through the second quarter, affirming its full-year 2024 adjusted EPS guidance range of $4.60 to $4.90 and affirming its full-year 2025 EPS guidance range of $4.90 to $5.25. The company is also affirming its projected long-term EPS growth rate of approximately 6% to 8%.

Non-GAAP Financial Measures
Non-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.

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 (NYSE: SRE) 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 and in The Wall Street Journal's Best Managed Companies. More information about Sempra is available at sempra.com and on social media @Sempra.

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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, strategy, goals, vision, mission, opportunities, 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, investigations, inquiries, 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; macroeconomic trends or other factors that could change 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 trade policy and the energy industry in Mexico and (ii) due to the results of elections; 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, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising 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, pipeline system or limitations on the 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts; shares in thousands)
			Three months ended June 30,												Six months ended June 30,
			2024						2023						2024						2023
REVENUES
Utilities:
Natural gas			$	1,494					$	1,660					$	3,603					$	6,072
Electric			1,144						1,054						2,200						2,081
Energy-related businesses			373						621						848						1,742
Total revenues			3,011						3,335						6,651						9,895
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas			(137)						(311)						(691)						(2,994)
Cost of electric fuel and purchased power			(156)						(88)						(245)						(202)
Energy-related businesses cost of sales			(54)						(81)						(163)						(274)
Operation and maintenance			(1,333)						(1,366)						(2,545)						(2,575)
Depreciation and amortization			(603)						(549)						(1,197)						(1,088)
Franchise fees and other taxes			(156)						(148)						(340)						(340)
Other income, net			30						31						129						72
Interest income			17						17						30						41
Interest expense			(311)						(317)						(616)						(683)
Income before income taxes and equity earnings			308						523						1,013						1,852
Income tax benefit (expense)			130						(175)						(42)						(551)
Equity earnings			433						388						781						607
Net income			871						736						1,752						1,908
Earnings attributable to noncontrolling interests			(146)						(121)						(215)						(313)
Preferred dividends			(11)						(11)						(22)						(22)
Preferred dividends of subsidiary			(1)						(1)						(1)						(1)
Earnings attributable to common shares			$	713					$	603					$	1,514					$	1,572
Basic earnings per common share (EPS):
Earnings			$	1.13					$	0.96					$	2.39					$	2.50
Weighted-average common shares outstanding			633,450						630,014						633,135						629,926
Diluted EPS:
Earnings			$	1.12					$	0.95					$	2.38					$	2.49
Weighted-average common shares outstanding			636,279						632,121						635,817						632,185

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 June 30, 2024:

• $152 million impact from foreign currency and inflation on our monetary positions in Mexico
• $(6) million net unrealized losses on commodity derivatives

Three months ended June 30, 2023:

• $(93) million impact from foreign currency and inflation on our monetary positions in Mexico
• $102 million net unrealized gains on commodity derivatives

Six months ended June 30, 2024:

• $111 million impact from foreign currency and inflation on our monetary positions in Mexico
• $(18) million net unrealized losses on commodity derivatives

Six months ended June 30, 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
• $(202) million impact from foreign currency and inflation on our monetary positions in Mexico
• $319 million net unrealized gains on commodity derivatives
• $(17) million net unrealized losses on a contingent interest rate swap related to the initial phase of the Port Arthur LNG liquefaction project (PA LNG Phase 1 project)

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 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(1)			Non-controlling interests			Earnings						Diluted EPS						Pretax amount			Income tax expense (benefit)(1)			Non-controlling interests			Earnings						Diluted EPS
									Three months ended June 30, 2024																					Three months ended June 30, 2023
Sempra GAAP Earnings and GAAP EPS																		$	713					$	1.12														$	603					$	0.95
Excluded items:
			Impact from foreign currency and inflation on      monetary positions in Mexico						$	(37)		$	(186)		$	71		(152)						(0.24)						$	18		$	117		$	(42)		93						0.15
			Net unrealized losses (gains) on commodity      derivatives						12			(2)			(4)			6						0.01						(200)			41			57			(102)						(0.16)
Sempra Adjusted Earnings and Adjusted EPS																		$	567					$	0.89														$	594					$	0.94
Weighted-average common shares outstanding, diluted																								636,279																					632,121
									Six months ended June 30, 2024																					Six months ended June 30, 2023
Sempra GAAP Earnings and GAAP EPS																		$	1,514					$	2.38														$	1,572					$	2.49
Excluded items:
			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						(30)			(133)			52			(111)						(0.17)						43			252			(93)			202						0.32
			Net unrealized losses (gains) on commodity      derivatives						35			(5)			(12)			18						0.03						(628)			126			183			(319)						(0.51)
			Net unrealized losses on contingent interest rate       swap related to PA LNG Phase 1 project						—			—			—			—						—						33			(6)			(10)			17						0.03
Sempra Adjusted Earnings and Adjusted EPS																		$	1,421					$	2.24														$	1,516					$	2.40
Weighted-average common shares outstanding, diluted																								635,817																					632,185

(1)	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.

 

SEMPRA 
Table A (Continued)  

RECONCILIATION OF SEMPRA 2024 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA 2024 GAAP EPS GUIDANCE RANGE

Sempra 2024 Adjusted EPS Guidance Range of $4.60 to $4.90 excludes items (after the effects of income taxes and, if applicable, NCI) as follows:

• $111 million impact from foreign currency and inflation on our monetary positions in Mexico
• $(18) million net unrealized losses on commodity derivatives

Sempra 2024 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 derivatives for the six months ended June 30, 2024, 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. Sempra 2024 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 2024 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 2024 Adjusted EPS Guidance Range to Sempra 2024 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 2024
Sempra GAAP EPS Guidance Range			$	4.74		to			$	5.04
Excluded items:
Impact from foreign currency and inflation on monetary positions in Mexico			(0.17)						(0.17)
Net unrealized losses on commodity derivatives			0.03						0.03
Sempra Adjusted EPS Guidance Range			$	4.60		to			$	4.90
Weighted-average common shares outstanding, diluted (millions)									637

       

SEMPRA
Table B
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
			June 30, 2024						December 31, 2023(1)
ASSETS
Current assets:
Cash and cash equivalents			$	228					$	236
Restricted cash			16						49
Accounts receivable – trade, net			1,552						2,151
Accounts receivable – other, net			441						561
Due from unconsolidated affiliates			7						31
Income taxes receivable			95						94
Inventories			467						482
Prepaid expenses			173						273
Regulatory assets			55						226
Fixed-price contracts and other derivatives			129						122
Greenhouse gas allowances			1,176						1,189
Other current assets			39						56
Total current assets			4,378						5,470
Other assets:
Restricted cash			107						104
Regulatory assets			4,011						3,771
Greenhouse gas allowances			769						301
Nuclear decommissioning trusts			882						872
Dedicated assets in support of certain benefit plans			547						549
Deferred income taxes			134						129
Right-of-use assets – operating leases			711						723
Investment in Oncor Holdings			14,809						14,266
Other investments			2,405						2,244
Goodwill			1,602						1,602
Other intangible assets			305						318
Wildfire fund			272						269
Other long-term assets			1,857						1,603
Total other assets			28,411						26,751
Property, plant and equipment, net			57,684						54,960
Total assets			$	90,473					$	87,181

(1)	Derived from audited financial statements.

 

SEMPRA
Table B (Continued)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
			June 30, 2024						December 31, 2023(1)
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt			$	2,197					$	2,342
Accounts payable – trade			1,753						2,211
Accounts payable – other			257						224
Due to unconsolidated affiliates			3						5
Dividends and interest payable			738						691
Accrued compensation and benefits			378						526
Regulatory liabilities			125						553
Current portion of long-term debt and finance leases			1,711						975
Greenhouse gas obligations			1,176						1,189
Other current liabilities			1,202						1,374
Total current liabilities			9,540						10,090
Long-term debt and finance leases			28,966						27,759
Deferred credits and other liabilities:
Due to unconsolidated affiliates			302						307
Regulatory liabilities			3,959						3,739
Greenhouse gas obligations			334						—
Pension and other postretirement benefit plan    obligations, net of plan assets			405						407
Deferred income taxes			5,486						5,254
Asset retirement obligations			3,689						3,642
Deferred credits and other			2,373						2,329
Total deferred credits and other liabilities			16,548						15,678
Equity:
Sempra shareholders' equity			29,479						28,675
Preferred stock of subsidiary			20						20
Other noncontrolling interests			5,920						4,959
Total equity			35,419						33,654
Total liabilities and equity			$	90,473					$	87,181

(1)	Derived from audited financial statements.

 

SEMPRA
Table C
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
			Six months ended June 30,
			2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	1,752					$	1,908
Adjustments to reconcile net income to net cash provided by operating activities			540						467
Net change in working capital components			(99)						1,474
Distributions from investments			405						402
Changes in other noncurrent assets and liabilities, net			(78)						(514)
Net cash provided by operating activities			2,520						3,737
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment			(3,830)						(4,282)
Expenditures for investments			(387)						(184)
Purchases of nuclear decommissioning and other trust assets			(401)						(322)
Proceeds from sales of nuclear decommissioning and other trust assets			442						356
Other			8						11
Net cash used in investing activities			(4,168)						(4,421)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid			(741)						(734)
Preferred dividends paid			(22)						(22)
Issuances of common stock			18						—
Repurchases of common stock			(40)						(31)
Issuances of debt (maturities greater than 90 days)			3,812						5,614
Payments on debt (maturities greater than 90 days) and finance leases			(1,197)						(3,392)
Decrease in short-term debt, net			(817)						(388)
Advances from unconsolidated affiliates			45						14
Proceeds from sale of noncontrolling interests			—						265
Distributions to noncontrolling interests			(203)						(252)
Contributions from noncontrolling interests			786						543
Settlement of cross-currency swaps			—						(99)
Other			(23)						(61)
Net cash provided by financing activities			1,618						1,457
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(8)						7
(Decrease) increase in cash, cash equivalents and restricted cash			(38)						780
Cash, cash equivalents and restricted cash, January 1			389						462
Cash, cash equivalents and restricted cash, June 30			$	351					$	1,242

   

SEMPRA
Table D
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES AND INVESTMENTS
(Dollars in millions)
			Three months ended June 30,												Six months ended June 30,
			2024						2023						2024						2023
Earnings (Losses) Attributable to Common Shares
Sempra California			$	316					$	339					$	898					$	957
Sempra Texas Utilities			202						160						385						243
Sempra Infrastructure			291						208						422						523
Parent and other			(96)						(104)						(191)						(151)
Total			$	713					$	603					$	1,514					$	1,572
			Three months ended June 30,												Six months ended June 30,
			2024						2023						2024						2023
Capital Expenditures and Investments
Sempra California			$	1,069					$	1,118					$	2,212					$	2,200
Sempra Texas Utilities			192						93						385						178
Sempra Infrastructure			829						1,340						1,619						2,084
Parent and other			1						—						1						4
Total			$	2,091					$	2,551					$	4,217					$	4,466

 

SEMPRA
Table E
OTHER OPERATING STATISTICS
						Three months ended June 30,												Six months ended June 30,
						2024						2023						2024						2023
UTILITIES
Sempra California
Gas sales (Bcf)(1)						78						80						200						225
Transportation (Bcf)(1)						120						124						262						273
Total deliveries (Bcf)(1)						198						204						462						498
Total gas customer meters (thousands)																		7,098						7,056
Electric sales (millions of kWhs)(1)						661						974						1,596						2,570
Community Choice Aggregation and Direct Access (millions of kWhs)						2,892						2,797						6,061						5,529
Total deliveries (millions of kWhs)(1)						3,553						3,771						7,657						8,099
Total electric customer meters (thousands)																		1,525						1,511
Oncor(2)
Total deliveries (millions of kWhs)						40,343						38,056						77,656						72,835
Total electric customer meters (thousands)																		4,008						3,933
Ecogas México, S. de R.L. de C.V.
Natural gas sales (Bcf)						1						1						2						2
Natural gas customer meters (thousands)																		160						154
ENERGY-RELATED BUSINESSES
Sempra Infrastructure
Termoeléctrica de Mexicali (millions of kWhs)						650						348						1,630						917
Wind and solar (millions of kWhs)(1)						888						886						1,607						1,698

(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 June 30, 2024			Sempra California						Sempra Texas Utilities						Sempra Infrastructure						Consolidating Adjustments, Parent & Other									Total
Revenues			$	2,625					$	—					$	409					$	(23)								$	3,011
Cost of sales and other expenses			(1,568)						(2)						(270)						4									(1,836)
Depreciation and amortization			(528)						—						(73)						(2)									(603)
Other income (expense), net			36						—						2						(8)									30
Income (loss) before interest and tax(1)			565						(2)						68						(29)									602
Net interest (expense) income			(204)						—						7						(97)									(294)
Income tax (expense) benefit			(44)						—						133						41									130
Equity earnings			—						204						229						—									433
Earnings attributable to noncontrolling interests			—						—						(146)						—									(146)
Preferred dividends			(1)						—						—						(11)									(12)
Earnings (losses) attributable to common shares			$	316					$	202					$	291					$	(96)								$	713
Three months ended June 30, 2023			Sempra California						Sempra Texas Utilities						Sempra Infrastructure						Consolidating Adjustments, Parent & Other									Total
Revenues			$	2,700					$	—					$	660					$	(25)								$	3,335
Cost of sales and other expenses			(1,735)						(2)						(270)						13									(1,994)
Depreciation and amortization			(476)						—						(70)						(3)									(549)
Other income, net			23						—						3						5									31
Income (loss) before interest and tax(1)			512						(2)						323						(10)									823
Net interest expense			(189)						—						(19)						(92)									(300)
Income tax benefit (expense)			17						—						(201)						9									(175)
Equity earnings			—						162						226						—									388
Earnings attributable to noncontrolling interests			—						—						(121)						—									(121)
Preferred dividends			(1)						—						—						(11)									(12)
Earnings (losses) attributable to common shares			$	339					$	160					$	208					$	(104)								$	603

(1)	Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

SEMPRA
Table F (Continued)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
(Dollars in millions)
Six months ended June 30, 2024			Sempra California						Sempra Texas Utilities						Sempra Infrastructure						Consolidating Adjustments, Parent & Other									Total
Revenues			$	5,766					$	—					$	928					$	(43)								$	6,651
Cost of sales and other expenses			(3,401)						(4)						(580)						1									(3,984)
Depreciation and amortization			(1,049)						—						(145)						(3)									(1,197)
Other income, net			116						—						6						7									129
Income (loss) before interest and tax(1)			1,432						(4)						209						(38)									1,599
Net interest (expense) income			(406)						—						12						(192)									(586)
Income tax (expense) benefit			(127)						—						24						61									(42)
Equity earnings			—						389						392						—									781
Earnings attributable to noncontrolling interests			—						—						(215)						—									(215)
Preferred dividends			(1)						—						—						(22)									(23)
Earnings (losses) attributable to common shares			$	898					$	385					$	422					$	(191)								$	1,514
Six months ended June 30, 2023			Sempra California						Sempra Texas Utilities						Sempra Infrastructure						Consolidating Adjustments, Parent & Other									Total
Revenues			$	8,115					$	—					$	1,856					$	(76)								$	9,895
Cost of sales and other expenses			(5,801)						(3)						(625)						44									(6,385)
Depreciation and amortization			(944)						—						(139)						(5)									(1,088)
Other income, net			43						—						13						16									72
Income (loss) before interest and tax(1)			1,413						(3)						1,105						(21)									2,494
Net interest expense			(371)						—						(99)						(172)									(642)
Income tax (expense) benefit			(84)						—						(531)						64									(551)
Equity earnings			—						246						361						—									607
Earnings attributable to noncontrolling interests			—						—						(313)						—									(313)
Preferred dividends			(1)						—						—						(22)									(23)
Earnings (losses) attributable to common shares			$	957					$	243					$	523					$	(151)								$	1,572

(1)	Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

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SOURCE Sempra

FAQ

What were Sempra's (SRE) Q2 2024 earnings?

Sempra reported Q2 2024 GAAP earnings of $713 million, or $1.12 per diluted share, and adjusted earnings of $567 million, or $0.89 per diluted share.

How does Sempra's (SRE) Q2 2024 performance compare to Q2 2023?

Sempra's Q2 2024 GAAP earnings increased from $603 million in Q2 2023, but adjusted earnings decreased from $594 million in the same period last year.

What is the status of Sempra's (SRE) Oncor System Resiliency Plan?

Oncor reached a settlement in principle on a ~$3B System Resiliency Plan, with implementation expected to begin in Q4 2024, subject to regulatory approval.

What is Sempra's (SRE) updated earnings guidance for 2024?

Sempra updated its full-year 2024 GAAP EPS guidance to $4.74-$5.04 and affirmed its adjusted EPS guidance of $4.60-$4.90.