Sempra's Q1 2025: Discrepancies in Texas Growth, Earnings Outlook, and Capital Investments

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Operational Results and Financial Performance:
- Sempra's first quarter 2025 GAAP earnings were $906 million, up from $801 million in Q1 2024.
- On an adjusted basis, first quarter 2025 earnings were $942 million, compared to $854 million in Q1 2024.
- This growth was driven by higher CPUC base operating margins and income tax benefits, offset by higher net interest expense.

Texas Infrastructure Development:
- Sempra's Texas utilities, including Oncor, are experiencing significant growth with 19,000 new premise requests in Q1, up from the previous year.
- ERCOT has proposed a regional transmission plan with investments totaling between $32 billion and $35 billion.
- Oncor is well-positioned to construct a significant portion of these planned investments due to its existing endpoint ownership.

Regulatory and Cost of Capital:
- SDG&E and SoCalGas filed new cost of capital applications, seeking a 54% common equity layer and a 11% return on equity.
- These filings aim to update their rates of return to align with current market conditions, with decisions expected by the end of the year.

Earnings Guidance and Growth Plan:
- Sempra affirms its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70, with 2026 EPS guidance set at $4.80 to $5.30.
- The company expects to achieve a long-term EPS CAGR of 7% to 9% for the 2025 to 2029 planning period, indicating confidence in future growth.