Sempra (SRE) 3 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to Sempra's Third 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 Third Quarter 2023 Earnings Call. this under slide section. our of on are webcast website our Events live teleconference presentation and available The and Presentations

have Vice and our including of and Chief Mihalik, several Chief with Kevin other President Group We today, Sagara, Officer; us Executive Executive Wall, Sempra Executive management Vice Officer Chief Jeff and Executive Chief team of Justin Chairman Financial Officer; President; President Trevor Senior Martin, President, management Allen Vice Infrastructure; team. Bird, and Chief Executive Nye, Accounting Controller senior our and Oncor; members Officer members Peter Officer; of of

may Before statements materially projected to within remind Securities from like starting, of meaning that results the Private I'd of we'll differ forward-looking the Act Litigation those be discussing Reform everyone Actual XXXX. today. XX-Q statements the SEC. discussed with are The that forward-looking differ results and could in actual any we XX-K cause filed to recent factors our in materially the company's most make

in shown that measures. accompany financial for per to slides measures. presentation our non-GAAP Earnings reconciliation to the a presentation Please certain diluted amounts on basis, this we'll discussing are share refer be and GAAP a call

to XX-Q quarter September for XXXX. We of ended also the review XX, encourage our

mention share per or and of distributed forward-looking stock November in of please future. form reflect and of not the hand the any to quarter that turn the let does note Slide call Please only dividend any With call statements on assume of that to second important to all these forward-looking X, today, this share update to a that to stock the August. over presentation in note that Jeff. XXXX, X, also and the the in that, it's and speak split XXX% me statements obligation company revise common contained X-for-X amounts our the we in like announced I'd

for third the results, Thank us the which strength you our with stage today. our growth. joining pleased company's of quarter all for continued sets We're

Given supply tensions, source around whether natural world gas countries dependable liquefied home they disruption are from dependent ensure essential the that on looking subject chains Increasingly, geopolitical to allies. microchips, to to not or closer to food, uncertainty. current are want goods, they are or and

toward North America as trend we beneficiaries. the deglobalization, this principal With of see one

We investment the new support has believe half also these important prior in approximately growth the where trends by XX% sharply foreign XXXX, comparable Mexico, over period. direct risen year in of first

also has largest Mexico as surpassed partner. trading year, this Just America's China

continued will why we're to continue, about levels company. investment to critical new supporting expansion. these infrastructure be energy As higher economic at of That's energy this premier grid our trends North Sempra, build mission in America's excited really

employees. high-performing that our of our part term the business time focus where and we on for building culture significant As and in effort mission, we long a invest

financial operating And in combination, achieve us this strong results. has and helped

tailwinds $XX that Our on to our Combined our we strong with are from economic of most support Sempra strategy competitive for growth regulation. dispositions to what billion. in business the secular America owners. X-year benefit constructive expected plan capital focuses discipline, believe with returns is North Also, attractive long-term capital and approximately our deliver markets

X You spoken their that the doubling rate for base I've of the ahead Oncor X the next and about will opportunities recall, lie possibility to over before years.

to of speak on see we Overall, opportunities Allen primarily continue regulated in utility here those areas While our billion XX% plan $XX process, be Oncor's quarter expected by Oncor. we're driven call. plan we will anchored call. to in is today, increase increase still by capital to of early X-year growth our our planning multiple to fall with to on expect later fourth update we and our This service when XX% territory. significant today's investments some by And he

of our $X.XX reported our earnings third strength to Turning share ability strong growth. demonstrate today, continue of per producing to the adjusted We of business per quarter. XXXX and earnings we results XXXX and quarter year-to-date the believe $X.XX. Earlier share earnings our adjusted

expecting end guidance be range, year-to-date of range of at above to adjusted success, affirming EPS the X%. EPS and long-term XXXX high EPS or our Given and XXXX to our we're X% growth projected rate our guidance we're

in let and Sempra who Gas companies, XX SDG&E parent recent our CEO transaction President of Electric originally at merged. that leadership speak the retiring as the to Utilities. formed Diego Sempra CEO role its of me well SoCalGas of was after Finally, Renewables, San when California Sagara, predecessor and his service be Group month nearly take companies. as Kevin has Sempra over including of & a about He moment years will positions across Kevin companies next instrumental our held many as XXXX

really to missed. He's greatly be success career had here a amazing made significant and will contributions and our

Texas. turn Now me business let in Allen who the will to through call development Nye, take us over

performance Jeff. then our them our high-quality to growth quarter and finish well, in drivers extremely third to I operational to like Today, performed that financial and improve heat by provide you, working legislation the team highlighting will would conditions. customers the quarter, some Despite for and record like throughout improved this deliver exceptionally difficult I'll thank recent believe at performance. of Oncor. to Oncor the highlight to underlying we I'd strong Thank the service ability speak safely

with of last result our team's the over outage by a efforts, improving reliability continued months. XX X% to As average duration be strong

GDP million it the of Miracle, operating of Turning $X Texas people, in the approximately grew at eighth largest well states. the the Texas nation's fastest-growing average the one to above in year, pure-play the of Oncor X.X% last economy largest Texas which world. over of the GDP utilities annual T&D makes U.S. one is is continuation trillion, X.X%. With XX

is The last X people business service the of more cities in job of many creation top the added diversified is states premise territory. the Oncor our Pro economy. in with across growth of population X% approximately the serves in Our of metroplex and climate than XX Worth than driven documented sectors has metropolitan any expected each area. and well Dallas-Fort most years, X fastest-growing America, other U.S. of annually larger

This growth for the culminating is the demand region, XX past than an just demand XXX peak years XXX in ago. expansion peak, summer, continues XX% the to and our year. records in third certainly transmission higher system. fuel additional XX,XXX X Oncor of lines; ERCOT the In growth which around significant requests, peak or last of has electricity. premises; a increase were XX-gigawatt impacted set also This T&D upgraded miles rebuilt XX% managed connected interconnection built, over active quarter, approximately This

year, the driver major QX budget. increased be last have our a retail since which Specifically, will end interconnection of requests XX% in capital about

Turning of give to several resiliency bills the state to were tools the grid. recently growth passed completed the of that better improved and support the Texas legislative session, utilities

As to for The on second of our develop currently the in call, XXXX this it we finalized discussed PUCT forward-looking we associated system. the expect is Oncor in plan invest to resiliency to a be new year. rulemaking this quarter underway, HB and a opportunity provides of quarter the legislation with fourth

for system targeting the Public the provides file a SRP, XXXX our first Commission, with resiliency Utility are of or time XXXX SRP. plan, for review of HB line to X-month the first We approval and quarter

customers our are legislation, investments needed earnings mitigation benefit that implement future. the T&D to of it for our improving support needed flow remains and modernization while the and provide will optimistic in grid hardening, cash we this to work the much to While risk these

Oncor also to X. just Additionally, SB to remember, each X Thanks trackers file is you'll as XXXX. cost year now able distribution opposed to

DCRF tracker for approval for XX second the its DCRF September, matching first process efficient investments submitted XX interim lines In well time T cost Oncor decades. to of half in XXXX the worked X SB to has accelerated days, made that the year.

WE million DCRF last filing said of improve expect we to to addition earnings second million by quarter, annually. $XX approximately the As Oncor's $XX the

across fourth both quarter by geographically Oncor's capital plan and which actively service as the call. an our capital part reviewing reflect territory Oncor earnings new to type, to expect of Oncor we and demonstrates growth of is update Board, slide. customer next expected Please service X-year announce evaluating of turn diversity with territory, After the impacts legislation. our This the Sempra's plan. to slide continued our higher the propels

this broad premier data by a you gigawatts gas, metroplex load not over of Basin is producing As in North, next but continues to regions projected to professional demand effort. is is Central one arising large the to driven Texas. Dallas-Fort XX.X see, oil industries, The centers energy region in of and roughly services be X.X manufacturing, West and and increase group including gigawatts and the in major world decade. the a Notably, electrification can only Worth from growth the in undergoing the Permian

the to slide. next turn Please

results. business review as to I as Sempra hand well the Sempra detailed Sempra's Trevor to call California While at financial and Infrastructure will updates

Allen. have a improve rare during in and important and that these reminding reliability. the experienced circumstances everyone and the to in our tropical quarter, resilient it's SDG&E say delivering California California, and accomplished validates remained pleased SoCalGas storm, Starting operational. both I to Thanks, am Systems believe We energy worth system under that Southern third continuing work teams safety

SDG&E application to published Over demonstrating reliable row. a service American its also received Sustainability for for Utilities, the in utility, the including is Grid the best technology of a reliability awarded the grid. Consulting and the to award PA rankings XXth several clean was of They the in energy National decades, presented ranking year and #X customers, investment Award. in has and the This past West recently leading excellence American

extreme resources SDG&E weather maintaining grid and energy Winn consideration credit stability the megawatts approval With is supporting and store third quarter, and are for key requested these storage In team. of energy the another energy, the are in for why, assets. entire the That's renewable Caroline power. storage XXX even critical dispatchable combination, excess awards discharge events. great to of SDG&E in the ability utility-owned more to One a the during transition

assets to to safer, This their SDG&E's to megawatts over and XXX we quarter that reliable is call. customers. addition on bring the of would portfolio megawatts to cleaner storage its this XXX approved, second energy of in our discussed commissioned energy If recently in more ability deliver support

Importantly, included in series rates of potential such an which pursuing storage help to to we're establish could part as initiatives meet calculation result credits, affordability million federal to of continued tax in on efforts SDG&E in customers reliability energy of to to drive and as cost goals, passed savings the would innovative beginning as investment company's also in $XXX integrates utility-owned technologies, improve The savings. estimated good January services. the and be XXXX clean savings its the a its

solicitation, XXXX transmission projects new bid in $XXX of we Last recent to our quarter, to competitive assignment for part of million Cal territory. that ISO's materials on approval FERC of as process. SDG&E and plan of the ISO's service updated and submitted the you Cal we Also, expect quite be us

transmission As California, clean you state. state the amounts know, assets and integrating spread are such, energy to costs increasing as of deliver across of these broader benefits the

Recently, increase improve help recognized grid the and the CPUC approved capacity working the storage of help additional to at an storage gas Aliso to capacity The is mitigate the Canyon. gas expected affordability. importance potential The facility price CPUC reliability customer authorized also in volatility.

Newsom lay quarter, the Additionally, government the out which hydrogen market market state. employ to of pathways Governor approach in of hydrogen directed building in for will California's strategy, a development robust an the all formation third

innovative ways economy. to decarbonize be see may California's to hydrogen help the used excited We're that

hydrogen funding for of of side, awarded $X.X in our U.S. California. hub federal Energy Department the the up On clean billion regional to

resiliency. partner SoCalGas could DOE's ensure while for statewide award the striving this proud to partnership safety, demonstrates a valuable The Arches, in the sponsoring application. be support hydrogen private play public and decarbonization role is affordability to in

supporting into system. for and XXX, California law investments further electrification the recently passed of SB energy decarbonization

As will to utilities electrification increase, and on larger continues also proactively grid need state's climate to the part goals, the of meet needs. electric plan become to customer achieve its build grid distribution a will demand strategy to upgrades meaning

between the investments keep GRC Similar regulatory accounts of need new customer as mechanisms to Texas California's SB support existing the updates and balancing pace that expanding California's is economy with cycles to such goals. make critical needs decarbonization and some legislative state's utility utilize help XXX to recognition to of the in Allen described,

process. like I'd GRC a to the provide brief on update

around various final decision advocates utility While including agreements few centered reliability there ultimately the part increasingly business of clean CPUC the small with a forms GRC, remains we advocates, delivery energy. a We are filed applications other constructive interveners and Our and recently approval interveners, settlement safety, as the process. step Cal the the by in this is from of input in believe of

rates with proposed to that retroactive in a of year. quarter expect second to continue We the decision the XXXX beginning of

are in most filed of XX are capital approval. are triggered advice As that XXXX. both January and approximately expected a cost beginning ROEs commission points already the letters, mechanism final which increase to note, of SDG&E you by applications SoCalGas aware These X, pending basis

should commission relative supports this rates, believe California's as constructive to We of framework climate-related given and by risks. believe of framework its advanced and be the part is one mechanism of We cost the is forward-looking handling mechanism components jurisdictions, adjustment adjustment California's environment. capital approved that attractive regulatory event constructive other the quite regulatory ROEs, established for key

Please regulatory With our supporting their California's the utilities to customers positioned to and continued and service system believe framework, to while turn are constructive continue slide. we economic growth next growth overall resiliency. well improving

a we in previously of FERC, And indirect in Arthur received permit noncontrolling milestone LNG project At completed X, X milestones Phase the project's Infrastructure. interest Arthur to Phase in to Turning KKR. key several Port critical Sempra recently, from LNG a the sale quarter. the Port XX% announced We've the a reached development.

of projects of an FERC total momentum consider review our that of offtake which the market around highest build effectively volumes see commercial additional X Phase Phase in to we issued environmental Arthur. the producing that incremental the as application. DOE to able capacity would Mtpa, to with potential double non-FTA coalesce the add X's XX is trains, its associated our liquefaction Marketing Now X the also capable Port is expected has continues have approval, development.

this Hub partners Cameron LNG X and its and that expertise approval value Energy continue showcases Earlier for Phase develop FERC in to LNG to capabilities order. train. integrated In the the Arthur liquefaction bring Infrastructure's development. Sempra Port year its March, project at a Sempra its entirety, Infrastructure fourth Cameron received

Bechtel costs. reduce value now project engineering risks and We begun to working to have with perform construction

of the expect year. this We end continue through the process will

with provide Sempra e-natural a by combining explore natural platform. to hydrogen. We're Infrastructure's excited mission consortium COX is companies it and is collaborating to synthesized high-growth, captured of and a export low-carbon Japanese better development from with world of about which utility for energy through its Corporation Mitsubishi the green gas gas,

a up Together, Coast with of annually view a intend gas on evaluate Sempra liquefied the tons Gulf producing from be terminal. to e-natural project stakeholders that and exported the towards XXX,XXX would Wrapping approximately LNG Cameron the portfolio our synergies the new infrastructure, growth by to projects, Arthur the Hub overall growth as us development. create top-tier construction of capture currently scale Energy Port demonstrated additional of positions opportunities, and and support under

be earlier, and decarbonization, mentioned to America's will by North believe manufacturing of Sempra As well Jeff and we such energy America. positioned markets opportunities. contribute to capitalize remains North security Infrastructure trends continue of to to back energy the driven reshoring on

next slide. the to turn Please

per of or million to XXXX third Turning of our per share. to XXXX $XXX earnings $XXX of million million we This earnings quarter $X.XX million earnings third per $XXX Earlier GAAP results. $X.XX earnings share. $XXX XXXX our basis, morning, per $X.XX quarter financial or or On reported share. this or third $X.XX adjusted This share. quarter were an compares quarter to GAAP XXXX compares third

XXXX variance Please tax margin third to compared at and the electric SDG&E can be by offset income by of SDG&E, the operating California, and period base lower million the of the CPUC earnings authorized in turn following. next benefits and higher last expense, adjusted of and interest $XX higher interest income million At The lower same capital transmission higher SoCalGas. cost of net $XX slide. Sempra at net summarized to quarter regulatory year

tariffs. from primarily $XX due $XX higher offset net million lower to At by consumption, million Sempra Infrastructure, customer on capitalization Parent, interest Sempra net higher and partially million costs, base construction. projects expense increased there weather-driven driven $XX of were of transportation of equity under Texas, Sempra primarily $XX driven higher million interest of by new At tax benefit. income At growth. from higher earnings rates expense, a interest

companies, currently would regulatory XX, fourth segment, be one and resegmentation in would our resegmentation quarter analysis which the determination and made, in of SDG&E intend the XXXX geographic for our period the to XX-K SoCalGas ending a XXXX. X Given between We we in positive we the California. our complete implement December overlays Sempra segments is annual combined into considering are and the assuming reportable

the Please next turn slide. to

with our X the positive are of platforms. across strength growth Sempra's and pleased We are the and quarter third seeing about the results it all conveys business message quality robust we

the the balance Debt years, core to we've longer briefly rate rate, to transition And Before touch is structure. taken a me on base component I X lower over duration our important let of fixed past sheet. capital steps debt. close,

We prudent and the with our maturities. XXXX interest limit in sales using sheet short-term parent repay near-term debt in management and ADIA XXXX by proceeds balance have to noncontrolling KKR been debt from and to

fact, In we points, negligible would the if by to EPS level, XXXX. increase parent basis now at project rates and impact between interest a another XX

refer for Please in additional information. XX the appendix Slide to

and we executing investment on on remain forward, Looking identifying sound capital focused opportunities.

financing optimize of earnings continuing of we'll Throughout open growth are evaluate excellence, and options, our financing We accretive our would like operational to history, financial demonstrated now to your our return we growth. commitment and to to We of and growth our has the equity support today, shareholders. questions. common highlighted to stewardship, up support including line to capital all a the plan take the some Sempra meaningful strong use

from from And will Instructions] [Operator Guggenheim Pourreza come Shar our first Partners. question

right, equity. levers, bit CapEx, that XX% have I with to kind obviously minimize needs the that. come that's XX% able of a guys you've And the been answered question that Trevor kind significant and you external mean, different know of will financing here. just little to I But on

SIP. at recapitalized You've

some capacity. You've of unlocking debt obviously had

just little Or source just a what -- XX% comments guess need curious just around from you XX%? utilize come you to past? on can I bit this elaborate in you've it utilized on equity? Trevor's to of funding of I'm kind can straight the Does the

you question, the some But Shar. Thank levers. Trevor, look, about for why the those spoke you this since in color, look we I prepared all would Yes. And additional please? don't provide to think you remarks,

pretty that's deliver and the continuing Again kind this really investment to what about that's from that's our and coming And have on to reliable the and mentioned Yes. call. of customers. really Shar. utilities we opportunities, -- Sure, really regulated safe kind we're of around excited service

to in more plan, X-year do that the on we increase discuss this. detail capital call. how we So just XX% is over the will understand on the XX% year-end But financing important

So growth. we're of this equity at to Jeff all expected analyze said, have, we ways but we will the that needs, the looking And are always include common of part as efficient will continuing capital and look we as options, finance at to currently as we consideration.

And obviously, around early that it. sort Got plan. the of appreciate I CapEx update

to XX% of that highlighted bit XX% It is wide regulated a is on purely side, good. obviously is You a the which range.

of could and So California update GRC XX% XX% know, would final already CapEx already you I the is guess what Texas what since predate skewed And the California? kind dictate which versus it's order.

So in is XX%? that tailwind? also to XX% captured a is that Or potential the

And we've capital kind Sempra through of process, decisions comprehensive going as years financial our that the had going I and our this is just Shar. through process. on planning you, we'll process Don report planning with some Board meeting relative we in aligned February. Oncor different look to to view -- of been way final What's I and just ago. is later just year Allen here that had it a weeks would make the our They're in X at Dallas. The year kind with we've prior this Trevor their to Thank about Oncor think work Board and

plan direction we've The to seen where is guidance. capital going XX% about to good news XX% is the provide that enough

before. look, So this I about was thinking

that's we're had If $XX to And X-year on you $XX now that roughly significantly back executing one we billion go way go to the to expecting between early close the all quite and up we're and billion, February. capital right time XXXX frame, plan. now, a

we're campaign the we pleased growth by to on investments been can X that is continued. X led to anchored over will utility guide pretty big to Texas. last it's a we've years, So and What be and specifically you

Jeff. ask me, do appreciate Just question. I lastly to have for I

we Port The Just, the I fuel terminal that which phase. storage to contract net these expiring, of ECA in Arthur to understand, expansion the the they you talk about mix. regas so allow and X% would development for guess, the moving is moved construction X pipes to impacts that growth Are pipeline. of are could talk first ECA developments about? XQ from you into rate just X% half are 'XX. just accretive

not I referring the a to about pass moving more both Yes. What's planning briskly, forward make to at would I'll is have the going compared to plan. what's it our the I'll strategy, and the and to, process, Gulf. by we LNG is, point go of saying that to in us the start out in we're you're outside opportunity or dispatch to important Justin. where couple LNG comments, plan which of Pacific this into into peers, our the details directly because, we're as primarily

Arthur question construction Louisiana of your and Cameron I X if and schedule if as facility. well Port would you, the in about producing think be to that Phase Phase for, X would. of moving I is don't might Cameron volumes, are Connector both Phase Phase with helpful Justin, Shar, what directly, and maybe excess in And X safety then storage Port record. things, on Phase Talk a both forward ECA LNG Justin, of X, status you speak do to mind, the development XXX% as you the I Arthur expected X its update is great

excited Jeff. development SI at across we're our the progress Shar, projects. Thanks, seeing Great. about we're

We our think discussions we're adds at to advance potential commercial that X, momentum received Arthur Phase Jeff this major commercial FERC mentioned, As milestone customers. a is with to We're Port the recently seeing. that we continuing approval.

we Phase time, in we're the we're and At engineering value to the construction, working same work Cameron Again, financing. similar advancing regulatory and that And engineering. project are exercise many to X, Bechtel through are at on whom of conduct Port to the interested continuing and our equity. Arthur, And what at we with did also end and of go partners year. expect that

to the construction is goal risk. the design optimize cost The and reduce and project

us decision final As subject to a in to needed investment make position and we previously XXXX, definitive mentioned, arrangements, well these extensions. efforts project commercial financing regulatory should any

PA the you'll pipeline storage call, you on components the the value the Arthur of about look, the Arthur we that Port On and LA really are Port operations of pipeline talked X. that key about, and last talked recall of Arthur facility storage Energy support and Hub. LNG Both the LA Phase Port

supply and Port at call liquid connector, to a begun it phases. importantly, XX.X have to the Phase of supply access Phase and capacity gas LA has Pipeline Arthur gas Bcf. X Louisiana Port a high strategy It's deliver Bcf to Storage I. Arthur Storage Arthur is engineering Port and turn has Port and day salt it slightly future the and for the the facility, X Both sometimes supports Pipeline, storage Arthur Gillis procurement LA over I process. hub the also

anticipate And be Port advance both I. Phase of online importantly, we to Arthur in

space well projects to on we're our we strategy and think to key exciting and an support next that the LNG the that we is bullish LNG in year. progress customers. our make development, brownfields positioned both significant associated on SI the and time are at It's to be projects think takeaway continue our I in progressing the

Shar. you, Thank Justin. you, Thank

will next from Carly from Sachs. come question Davenport Goldman Our

as there. about on that you'd Oncor, drivers just Maybe potential to contributors potential any to I capital new mentioned, to upside, other a point upside CapEx you Are there big factors the start, the that for as being at retail spend? think, key think connections driver you

No.

to think important we case our our most We've well. of got of rate continues rate get general tracking for is in a working payers. California. things successful we're of outcomes here That to sure the execution I to go have track now, that stakeholders with record one well all Carly, good a right making

that of one of related Justin things Arthur and over for opportunities significant X. Port are We've Phase that's obviously got opportunities company. So we're Both following. several just our terms that Phase X in went development Cameron to those

And there of a what have to I both momentum of think Justin color business remarkable And Texas, might is time the projects. be diversified amount And been really little growth a quite about helpful in those bit of almost X the for in and the is of remarkable. the I've on you to drivers, in having is his out quite fair specifically it's growth team type more decades. Texas. spent how some give and

if maybe could so color impacting bit where it's you provide if why the from little Allen, could, is we more coming your plan And a and about of strongly. some growth capital

Yes.

question, bet, for you, the Carly. Thank thanks Jeff. You and

opening remarks well our know As of some this premise very versus quarter my said, last quarter to as release. interconnection in growth XX% this But up Jeff I our same as in up XX%. example, quarter continues Oncor the be or quarter board. Total for And last just are for points transmission versus I year of versus same in last press just very, year. strong growth across mentioned the

of interconnection of are New up of totals XX%. are points XX%. Generation points interconnection points up transmission XX%. interconnection requests Retail for up

XX.X% really strong on very So very, in growth, system growth remarks, well. to And weather West I our premise perform transmission earlier really strong then, to Stanton as West Far continues of up Texas Stanton over transmission a XX.X%. on then up both our Culberson our and growth peak XX and Loop the 'XX strong with over XX.X% for peak. Loop, Texas my alluded Culberson POIs. about really increase -- And zone,

new up economic area. XX%. our development RFI developments The is projects XX%. strong Really in up

on growth as system, but The industry billion growth a consistent our across through Slide been are perspective has X our not the well. X. the as over ever plan CapEx just a growth, when deck. regulatory perspective, we geographic only all is Sempra everywhere that $XX.X since till way strong now X-year diversity So driver really I where what from an we transaction the think, shown of we And for the is our real at from announced announced billion commitment over of $X.X

we CapEx in And our with we We Board. Board continue our trend next plan, our as met that expect our year. for X-year October, to began what work need and we discussing with plan

some announce the expect the quarter will House companies. going Bill. the our Resiliency we Jeff and Bill now right on seeing As XXXX, additional said, to what there'll to other But with also if on it fourth Sempra a significant system, be see to we be expect we continue we're that call opportunities we're increase that related

So and we where with with feel CapEx about now announcing are be we'll meetings we going right our additional later. into these very Board, our plan good

that Lastly, I earlier, say, X is navigate think of seeing know able example it our improvement been are And of than of they growth did this maintaining an just an operational outages really have the customers said year, I been we've really to excellent fewer to in our safe. doing staying And the period fact employees excellence. pleased that of while have I minutes I X%. prior of the job and our that we're exceptional but about also

we to that's in are credit But issues. those them. all where of So kind Jeff,

Allen. you, Thank

Or in you that think was just could Could expectations hear. in to that follow-up you you And embed next ROE? earnings be steps kind there? then the of trigger. point CCM And for remind basis there around then upside XX year, just Great the next us your process? potential improvement as about do the

about Edison question, this Thank move PG&E that way call of last you week. the spoke Carly. capital cost spoke their all to the put on I capital we've what in know outside we've in to situations and this mechanism our the year. the when it And seen the dead earlier it with rise the last is think markets in seen the that over rates we week, and that's for for view, band was place

last change capital letters has methodology on with Carly, accordingly, we California, the resulting cost the advice And Based used our that's month filed rates. to triggered. have in of mechanism the

the commission we will in of day, next You may But reply the our their filing the anticipate filed from that's mechanism have the make our seen yesterday, and support adjustment perspective, at existing place. joint we'll week. end intervenors fully

this of we goes doesn't reaffirm said range taken the that go terms published. today whether if forward, and in we've guidance, we forward. that within it It's before, that it we've XXXX question And

Our next Fleishman from Wolfe. question from come Steve will

Yes.

-- to Texas congrats as Allen Kevin, So the on congrats first, on well. also Rangers

Thank you.

Yes.

California to wanted on comment up segmenting in just So businesses. about the the follow of the

just of is structural type merger this So a considering some for accounting entities? Are of even you the resegmenting purposes?

you're from an now. financial you the perspective, Steve, your think is might think where we sense X terms and provide business and when it's that with can have you Trevor, from color we additional you know, we But this as the think in Trevor under business. about something at across how right of how accounting you about view I evaluation And Steve segments, platforms. manage And make growth perhaps analysis. something

Yes.

on being businesses business consolidated I evaluating for still be kind think, financial said, will That Jeff is as again, Steve, chief the a Qs the really, makers, basis. in how decision as individual be will our the really said, an is statement. this And it filing operating and of combined Ks combined we, the we analysis. accounting

So well. you'll detailed still information that as have to access

Okay. Great. My other answered. questions were

Our Julien . will Bank question Dumoulin-Smith America. from come next of from

got I And you echo the to help sir over Kevin, years. congrats too, again to the

you, Thank Julien.

to the direction efficient questions here. some have a How Best the the of Absolutely. little points MO the here? come here. alternative growth? of pursuing alternatives think utility of about about -- in about as the been prior funding various think of equity, of But record I alternatives sell-downs at you recent of some of mean, same kinds on LNG given in you avenues think luck you do certainly, minority the years back Look, these do for equity. common these just more maybe part bit track to how

We're Sure. utilities. selling not any portions of the down

maybe match answered some color discipline with when you're it's it importantly, of you couple provide front most capital. to important Trevor, you Sempra, this it. Now as of capital. that's at of in on of can how goes And efficiently thinking disciplined our back a kind just is to principles that different being allocator sourcing growth a type first And company, times, this about of see which we've but just

looking kind and have we're any now, I And at from But last this look years capital. would various over I I the most at source at Yes. we've at be looked time ways right the most Again, efficient that at we we're several needs. capital end think will how perspective, look the to that our of think you timely. ways the to thinking think of growth, sources all the the day, of

the on fourth And on luck you we'll anticipate right. the All best of you I hear wish as front. that plan. Indeed, I it. quarter Got

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rate growth that earnings really track see to going You're base over time.

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about things the We are the direction feel going company. for great

I lot we throughout ahead of the we're and a source anytime have how us. discipline in we focused sure capital. terms this Trevor of allocate of driving organization making is on are But you see level We that what growth, how capital growth and of

Got it.

could you Or see improvement returns? on So level? more consistent earned actually,

we Our meetings have the this, wheelhouse businesses returns about of multiple job all management of clearly in the the is, and team. we're of trying X improve That's our time. all growth our discussions right in to

And luck here. of I'll Best Excellent.

right. All

Sounds good.

will And for Campanella from Barclays. our We question question. Nicholas one have from come time last more

I for just wanted to segmentation follow up on the California.

for could close kind what's the SDG&E filing reporting Just from SoCalGas Is your something to and ultimate is there. a that I if just acknowledge of structure realized wanted shareholders from there regulatory benefit it goal? that the the a to were customers simplify just take to on and be standpoint? pursue And are you just temperature paths. Or standpoint? pretty

you business how your your forward Obviously, Sure. a talked one we're has or risk our X it can the is take anytime Board model. with execute, business over simplify business, of And that remember, But our you that I've still my priorities fair make Nick, been valuable. this something can amount, from X evaluating. away simplify about last years, you to

at growth of make going business. for and matter come Sempra And reflects and business. just we're major So of several how operate Sempra it It's we're executive accounting to form all is evaluate It's we guys you to all. how the having a sure we've is about platforms: QX. does simplified is more the down back on this from makes the when decision reorganization. manage really legal this key next makers not that think manage boiled and at Infrastructure. really months us over It's it point not Texas, reflect something primary a to This and X no we evaluating Sempra our business that California sense

Okay. no I pressure on back But lot the I range then to financing of cost growth to moving Great. questions still the But just positives of some X%, you is a come talked in to Or here. reflected expecting And that of what rate? understand just target. could scenario? capital a growth upward Like outcomes of that you is the X% have in the the see maybe rate kind investors of Texas. do just be Obviously, about the you matter do to should you quick.

to to we're of have way we deliver periods or But our appreciate we're of think rate. rate question. I growth oriented been pressure upward few as types issue long No, time, to year-over-year the X% always companies issue. put the planning we've a results. that Over even on sector always And a X% looking a that of able necessarily growth X-year one don't is, those that about in

last In or per of over years, we've at XX-year So than years, grown grown X we've X% a that. higher period our In share CAGR. time, rates it at earnings much X CAGR. at an the a grown the XX last X% we've

of on orientation growth X% right to about long you're traditionally our grown but track. sector deliver the a time comfortable that X% rate, We're has at think X% that I over or is talking I a periods So think EPS very X%. that you're we can

drivers certainly the set growth of of We're talking unique a business in about front today.

cannot a management and So we possible. those team, if always expectations if push see would to as be we, looking exceed

concludes That conference to today's I'd time, Jeff the turn to Martin session. this question-and-answer like At any for additional back remarks. closing

Thank you.

call, to a the time busy who with been know to out thank a of took everyone close today. I the earnings I lot calls. we wanted week Before join it's

a key in record will a the we was recall for you Here's ahead XXXX, the of strong which had year-to-date Number period trending few of a one, year takeaways. with results company. financial quarter results, comparable

high range. end or EPS adjusted at result, As to our the above of a guidance we're our guiding

want Number XX% capital to by Texas, next also person again particularly to This raise higher that deploy each opportunities, also new with our we'll X-year are two, time. seeing EEI we're to our plan spending Thank levels be in portfolio investment I'd of look of a to expecting XX%. and weekend joining. Phoenix forward to in time you you at for attending in of that mention concludes call. much and very

you Thank participation. your for

disconnect. now may You