Sempra Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Sempra reported strong strategic and financial progress in Q1 2023, highlighting growth across utilities and LNG infrastructure, updated capital spending plans, and reaffirmed EPS guidance.
  • Management emphasized long-term growth visibility, supported by regulatory outcomes, major project milestones, and expanding capital plans across all business units.

Financial Performance

  • GAAP earnings: $969 million (vs. $612 million in Q1 2022), driven by gains across business segments.
  • GAAP EPS: $3.07 (vs. $1.93 in Q1 2022).
  • Adjusted earnings: $922 million (vs. $924 million in Q1 2022).
  • Adjusted EPS: $2.92 (vs. $2.91 in Q1 2022), essentially flat year-over-year.
  • Key variances included higher interest expense, mixed operating margins at California utilities, lower equity earnings from Texas (due to higher depreciation and O&M), and varied contributions at Sempra Infrastructure.

Guidance & Growth Outlook

  • 2023 adjusted EPS guidance affirmed at $8.60 to $9.20.
  • 2024 EPS guidance initiated at $9.10 to $9.80.
  • Long-term EPS growth rate of 6% to 8% annually reaffirmed, with CEO indicating confidence in exceeding the high end through the decade.

Major Business Developments

Capital Plan Expansion
  • Sempra announced a new five-year capital plan of $40 billion, up from the prior $35 billion.

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Operator: 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. Glen Donovan: Good morning, everyone. Welcome to Sempra's First Quarter 2023 Earnings Call. A live webcast of this teleconference and slide presentation are available on our website under the Investors section. Here in San Diego, we have several members of our management team with us today, including: Jeff Martin, Chairman and Chief Executive Officer; Trevor Mihalik, Executive Vice President and Chief Financial Officer; Kevin Sagara, Executive Vice President and Group President; Justin Bird, 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 meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in any forward-looking statement we make today. The factors that could cause our actual results to differ materially are discussed in the company's most recent 10-K and 10-Q filed with the SEC. Earnings per share amounts in our presentation are shown on a diluted basis. And we'll be discussing certain non-GAAP financial measures. Please refer to the presentation

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