10-KPeriod: FY2024

SEMPRA Annual Report, Year Ended Dec 31, 2024

Filed February 25, 2025For Securities:SRESREA

Summary

Sempra Energy (SRE) reported its 2024 annual results, showcasing a robust financial performance driven by its diverse energy infrastructure portfolio across California, Texas, and Mexico. The company's regulated utility operations in California (SDG&E and SoCalGas) demonstrated stability, supported by updated revenue requirements from the CPUC. The Sempra Infrastructure segment continued to advance key development projects, including the ECA LNG Phase 1 and PA LNG Phase 1 projects, contributing positively to segment earnings. Sempra Texas Utilities, primarily through its investment in Oncor, also showed earnings growth. The company maintained a strong liquidity position and actively managed its capital structure, undertaking significant debt and equity issuances to support its capital expenditure plan. Looking ahead, Sempra remains focused on its mission to be North America's premier energy infrastructure company, emphasizing investments in transmission and distribution, and pursuing opportunities in cleaner energy solutions.

Financial Statements
Beta
Revenue$13.19B
Net Income$2.86B
EPS (Basic)$4.44
EPS (Diluted)$4.42
Shares Outstanding (Basic)633.79M
Shares Outstanding (Diluted)637.94M

Key Highlights

  • 1Sempra's earnings attributable to common shares increased by 9% to $1.6 billion for its equity method investments, with Oncor Holdings being a significant contributor.
  • 2The Sempra Infrastructure segment saw a 4% increase in earnings to $911 million, driven by favorable foreign currency and inflation effects, alongside positive impacts from interest income and expense management.
  • 3Sempra California's earnings increased by 6% to $1.8 billion, primarily due to higher income tax benefits and higher authorized cost of capital, partially offset by a significant charge related to the FERC order on the TO5 adder refund provision.
  • 4The company successfully raised capital through common stock offerings and ATM programs, demonstrating continued access to capital markets.
  • 5Significant capital expenditures are planned for 2025, totaling approximately $12.5 billion, primarily directed towards transmission and distribution improvements and Sempra Infrastructure's LNG projects.
  • 6Sempra continues to advance its climate aspirations, aiming for net-zero scope 1 and 2 GHG emissions by 2050, with an interim target of 50% reduction by 2035.
  • 7The company's credit ratings remained at investment grade levels as of December 31, 2024, although S&P revised Sempra's outlook to negative and downgraded SoCalGas' issuer credit rating in January 2025.

Frequently Asked Questions

Sempra reported earnings attributable to common shares of $2,817 million for 2024, a decrease from $3,030 million in 2023. This was influenced by various factors across its segments, including higher income tax benefits in Sempra California and favorable foreign currency impacts in Sempra Infrastructure, offset by certain charges and costs.

The Sempra Infrastructure segment reported earnings of $911 million in 2024, a 4% increase from 2023. This growth was primarily driven by favorable foreign currency and inflation effects, improved interest income and expense management, and gains on interest rate swaps, partially offset by adverse impacts from commodity derivatives and lower revenues in the transportation business.

Sempra plans to make capital expenditures of approximately $12.5 billion in 2025. The majority of this investment will be allocated to Sempra California for transmission and distribution safety and reliability, and to Sempra Infrastructure for the construction of the PA LNG Phase 1 project, ECA LNG Phase 1 project, and natural gas pipelines.

Yes, in December 2024, the CPUC approved a Final Decision in the 2024 General Rate Case for SDG&E and SoCalGas, authorizing updated revenue requirements for 2024 and attrition year adjustments for 2025-2027. Additionally, the CPUC modified the Cost of Capital Mechanism (CCM), adjusting the ROE adjustment mechanism.