Sempra (NYSE: SRE) (BMV: SRE) today reported third-quarter 2024 earnings, prepared in accordance with generally accepted accounting principles (GAAP), of $638 million, or $1.00 per diluted share, compared to third-quarter 2023 GAAP earnings of $721 million, or $1.14 per diluted share. On an adjusted basis, the company's third-quarter 2024 earnings were $566 million, or $0.89 per diluted share, compared to $685 million, or $1.08 per diluted share in third-quarter 2023.
"We are pleased with our operational and financial results for the third quarter," said Jeffrey W. Martin, chairman and CEO of Sempra. "We remain focused on executing our business plan, improving safety and operations, and delivering more affordable services to our customers."
Sempra's GAAP earnings for the first nine months of 2024 were $2.152 billion, or $3.38 per diluted share, compared with GAAP earnings of $2.293 billion, or $3.63 per diluted share, in the first nine months of 2023. Adjusted earnings for the first nine months of 2024 were $1.987 billion, or $3.12 per diluted share, compared to $2.201 billion, or $3.48 per diluted share, in the first nine months of 2023. The results for the first nine months of this year do not reflect the impact of the Sempra California general rate case decision that is pending at the California Public Utilities Commission (CPUC).
The reported financial results reflect certain significant items as described on an after-tax basis in the following table of GAAP earnings, reconciled to adjusted earnings, for the third quarter and first nine months of 2024 and 2023.
Sempra California
Last month, the CPUC issued a proposed decision on the general rate cases for Sempra California's utilities, which center on improving safety and reliability in alignment with California's clean energy goals while stabilizing energy bills. A final decision is expected by the end of the year with revenues retroactively applied to Jan. 1 of this year.
Delivering energy to Sempra California's 25 million consumers safely and reliably while keeping bills as low as possible continued to be the focus in the third quarter. The San Diego region registered a new record in peak electricity demand of over 5 gigawatts in September, surpassing the previous record set in 2014 by nearly 150 megawatts. Investments in energy storage and infrastructure modernization benefited customers this summer with minimal energy interruptions despite high-heat conditions.
Sempra Texas
The State of Texas benefits from relatively low electricity costs and a supportive regulatory environment for investment. In combination, this is fueling economic expansion across the state and significantly higher projections for electric demand growth.
Currently, Oncor Electric Delivery Company LLC's (Oncor) System Resiliency Plan (SRP), which includes nearly $3 billion of capital expenditures designed to reduce risk and over $500 million in incremental operations and maintenance expenses, is under review with the Public Utility Commission of Texas (PUCT) and is expected to be finalized this year. This fall, the PUCT approved the Permian Basin Reliability Plan proposed by the Electric Reliability Council of Texas. This plan identified substantial capital investments in transmission projects required to address electric demand growth forecasted over the next decade in the Permian Basin, much of which falls within or near Oncor's existing transmission footprint. The investment initiatives outlined in Oncor's SRP and any projects assigned to Oncor in the Permian Basin Reliability Plan would be incremental to Oncor's existing capital plan.
Oncor continues to expect 2% long-term premise growth, and the company reported a 38% year-over-year increase in new transmission point of interconnection requests, which are in the queue to support the region's expected economic expansion. In third-quarter 2024, Oncor built, rebuilt or upgraded over 800 miles of transmission and distribution lines and placed eight substations into service.
Against this backdrop, the business outlook for Oncor continues to strengthen, as the company expects significantly higher levels of capital investment in grid expansion, modernization and reliability. Oncor currently anticipates a meaningful 40-50% increase to its previously announced five-year capital plan of $24 billion and will provide an update on the next earnings call in February 2025.
Sempra Infrastructure
Globally, energy security and decarbonization trends continue to support the business outlook for Sempra Infrastructure, which is making progress developing projects in the U.S. Gulf and northern Mexico. Most notably, U.S. liquefied natural gas (LNG) exports remain an important component of the energy security for U.S. allies, as well as an opportunity to diversify their energy mix away from coal for electricity production. Sempra Infrastructure's dual-coast LNG strategy differentiates the company and bolsters its position as an energy infrastructure leader.
Construction at Energía Costa Azul (ECA) LNG Phase 1 has progressed, and commercial operation is expected to commence in spring 2026. Additionally, the Gasoducto Rosarito Expansion Pipeline that will support gas supply to ECA LNG is expected to reach commercial operations in fourth-quarter 2024. Port Arthur LNG Phase 1 construction remains on time and on budget. Additionally, construction has commenced on the 72-mile Port Arthur Pipeline Louisiana Connector to support gas supply to Port Arthur LNG Phase 1.
The company continues to advance development of its expansion projects in response to the ongoing global demand for cleaner fuels to support the decarbonization of the power sector and improved energy security.
Earnings Guidance and Financial Update
Sempra is updating its full-year 2024 GAAP earnings-per-common share (EPS) guidance range to $4.86 to $5.16 reflecting actual results through the third quarter and affirming its full-year 2024 adjusted EPS guidance range of $4.60 to $4.90. The company is also affirming its full-year 2025 EPS guidance range of $4.90 to $5.25.
In addition, the company has put in place a $3 billion at-the-market (ATM) equity offering program to support general corporate purposes including its future financing needs and is also affirming its projected long-term EPS growth rate of approximately 6% to 8%.
