On August 6, 2024, Sempra (SRE, Financial) released its 8-K filing for the second quarter of 2024. Sempra Energy, a leading North American energy infrastructure company, serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. SoCalGas and San Diego Gas & Electric distribute gas to more than 20 million customers, while Oncor serves more than 10 million Texas customers. Sempra Infrastructure partners, of which Sempra holds a controlling ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.
Performance Overview
Sempra (SRE, Financial) reported second-quarter 2024 earnings of $713 million, or $1.12 per diluted share, surpassing the analyst estimate of $1.04 per share. This marks a significant increase from the $603 million, or $0.95 per diluted share, reported in the same quarter of 2023. However, on an adjusted basis, the company’s earnings were $567 million, or $0.89 per diluted share, falling short of the $0.94 per share reported in Q2 2023.
Revenue and Financial Metrics
Despite the strong earnings, Sempra's total revenues for Q2 2024 were $3.011 billion, which is below the analyst estimate of $3.689 billion and a decrease from the $3.335 billion reported in Q2 2023. The decline in revenue was primarily driven by lower natural gas and energy-related business revenues.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| GAAP Earnings | $713 million | $603 million |
| Adjusted Earnings | $567 million | $594 million |
| GAAP EPS | $1.12 | $0.95 |
| Adjusted EPS | $0.89 | $0.94 |
| Total Revenues | $3.011 billion | $3.335 billion |
Key Financial Achievements
Sempra's GAAP earnings for the first six months of 2024 were $1.514 billion, or $2.38 per diluted share, compared to $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.
Operational Highlights
In California, Sempra's utilities continue to focus on expanding and modernizing energy networks. San Diego Gas & Electric Co. (SDGE) completed a new Wildfire and Climate Resilience Center, enhancing its capabilities in climate adaptation and resiliency. Additionally, Southern California Gas Co. (SoCalGas) filed for approval of three renewable natural gas contracts under California's renewable gas procurement standard.
In Texas, Oncor Electric Delivery Company LLC reached a settlement in principle on a $3 billion System Resiliency Plan, which is expected to begin implementation in Q4 2024. Oncor continues to see broad expansion and load growth, driving new investment opportunities.
Challenges and Future Outlook
Sempra Infrastructure faced labor and productivity challenges at its EnergÃa Costa Azul LNG Phase 1 project, delaying mechanical completion and first LNG to 2025. Despite these challenges, the company remains optimistic about its long-term growth prospects, updating its full-year 2024 GAAP EPS guidance range to $4.74 to $5.04 and affirming its adjusted EPS guidance range of $4.60 to $4.90.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Sempra for further details.
