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Sempra Energy Reports First-Quarter Earnings for 2025

Sempra Energy (NYSE: SRE) delivered an impressive earnings report for the first quarter of 2025, demonstrating a significant growth trajectory in its financial performance. The company reported earnings of $906 million, or $1.39 per diluted share, up from $801 million or $1.26 per diluted share during the same quarter in 2024. Notably, when adjusted for certain financial aspects, the earnings reached $942 million, translating to $1.44 per diluted share, compared to $854 million or $1.34 per diluted share in 2024.

Strong Financial Results

Jeffrey W. Martin, the chairman and CEO of Sempra, expressed satisfaction with the quarter's results, attributing the success to focused strategies aimed at optimizing financial performance while advancing the company's initiatives. The solid results reflect Sempra's commitment to delivering safer and more reliable energy to nearly 40 million customers.

The earnings report highlighted a few significant items that affected the financials. The reported results accounted for $8 million loss related to foreign currency and inflation adjustments in Mexico, and $35 million of net unrealized losses on derivatives, among other factors. These adjustments are typical within the utility sector, emphasizing the complexities of operating in inflationary environments and international markets.

Expansion in Texas and California

Sempra's Texas division, Oncor Electric Delivery Company LLC, is actively pursuing a substantial $36.1 billion five-year capital plan to address the energy demands of the fast-growing Texan market. This initiative is crucial as the Electric Reliability Council of Texas (ERCOT) recorded a staggering peak demand of 80.5 gigawatts during February. Oncor is aggressively advancing various critical transmission and distribution projects to bolster reliability and support population growth.

The first quarter saw Oncor service an additional 19,000 premises and enhance nearly 800 miles of power lines, indicating robust infrastructure growth. This aligns with its preparations for an imminent base rate proceeding, anticipated to be filed in the second quarter of 2025.

In California, Sempra continues to work on modernizing energy networks through its dual-utility platform, San Diego Gas and Electric Company (SDGE) and Southern California Gas Company (SoCalGas). The companies filed for updates to their respective cost of capital as part of a strategic vision aimed at sustaining their infrastructure amid rising demands.

Investment in Cleaner Energy

Sempra Infrastructure is also making advancements in response to increasing global demands for cleaner energy solutions. The first quarter saw significant progress in its construction projects, including the Energía Costa Azul LNG Phase 1 project, set to begin commercial operations in spring 2026. The ongoing development of the Port Arthur LNG Phase 1 also remains on track regarding both budget and timeline, reflecting Sempra's commitment to low-carbon energy initiatives.

Financial Guidance and Value Creation Initiatives

In light of its quarterly performance, Sempra has updated its GAAP earnings per share (EPS) guidance range for 2025 to between $4.25 and $4.65. The company reaffirmed its adjusted EPS guidance range of $4.30 to $4.70, reflecting strong fundamentals that contribute to a sustained higher earnings trajectory. Additionally, Sempra aims to achieve a long-term EPS compound annual growth rate of 7% to 9% through 2029.

As a reflection of its commitment to enhancing shareholder value, Sempra outlined five key value creation initiatives designed to simplify its business model and improve financial performance. These resolutions are pivotal as the company seeks to navigate inherent risks while achieving consistent, scalable growth in its operations.

Sempra's operational focus and ongoing commitment to sustainable practices highlight its role as a leader in the North American energy infrastructure sector. The integration of cleaner energy sources is not just a strategic goal; it also aligns with environmental commitments aimed at mitigating climate impacts. As Sempra continues to evolve, its strategies will undoubtedly play a vital role in shaping the future of energy across various markets.

Conclusion

Overall, Sempra's robust first-quarter results, strategic initiatives for sustainable energy, and comprehensive capital plans position the company for continued success in the rapidly evolving energy landscape. With a clear focus on reliability and growth, Sempra exemplifies a modern energy company committed to delivering exceptional value to its customers and stakeholders alike.