Q1 2024 Sempra Earnings Call Transcript
Key Points
- Sempra (SRE) reported a strong start to the year with first quarter financial results setting a positive tone for 2024.
- The company reaffirmed its full-year 2024 adjusted EPS guidance range of $4.60 to $4.90 and provided a 2025 EPS guidance of $4.90 to $5.25, reflecting a consistent long-term EPS growth expectation of 6% to 8%.
- Sempra (SRE) is benefiting from robust macroeconomic fundamentals supporting U.S. energy demand, particularly in Texas where ERCOT raised its forecasted peak demand significantly.
- Significant progress in LNG developments at Sempra Infrastructure, with approximately 16 million tonnes per annum of new export capacity under construction, doubling the existing LNG operating footprint.
- Positive regulatory outcomes in California, including support for updated return on equity and implementation of a fixed charge for residential electric customers to improve affordability and support clean energy goals.
- Higher net interest expense and lower income tax benefits impacted earnings at Sempra California.
- The company faces ongoing challenges with supply chain constraints, although some relaxation has been noted.
- Sempra Infrastructure reported lower transportation revenues and higher O&M costs, partially offset by higher power results.
- The pause on the FTA permit affects the progress of Port Arthur Phase 2, although it is expected to be temporary.
- Despite strong demand growth projections, there are concerns about the availability of labor and materials to meet the infrastructure build-out needs in Texas.
Good day, and welcome to Sempra's First Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn it over to Glen Donovan. Please go ahead.
Good morning, and welcome to Sempra's First Quarter 2024 Earnings Call. The live webcast of this teleconference and slide presentation are available on our website under our Events and Presentations section.
We have several members of our management team with us today, including Jeff Martin, Chairman and Chief Executive Officer; Karen Sedgwick, Executive Vice President and Chief Financial Officer; Trevor Mihalik, Executive Vice President and Group President, Sempra California; Justin Bird, Executive Vice President and Chief Executive Officer of Sempra Infrastructure; Allen Nye, Chief Executive Officer of Oncor; Peter Wall, Senior Vice President, Controller and Chief Accounting Officer; and other members of our senior management team.
Before starting, I'd like to remind everyone that we'll be discussing forward-looking statements within the
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