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- **Texas Growth Acceleration**: Oncor's capital plan increases 30% to $55-$60B, driven by 765kV transmission expansion and 39GW load growth pipeline.
- **$10B Infrastructure Sale**: Sempra Infrastructure sale to KKR improves credit metrics, provides $0.20 EPS accretion from 2027 and eliminates 2025-2029 equity needs.
- **Q3 Financial Strength**: Adjusted EPS $1.11 (25% YoY growth), affirming 2025 guidance and 2026 outlook of $4.80-$5.30.
- **Texas Execution Confidence**: 95% Cimarron Wind completion, Port Arthur LNG Phase 1 on schedule, and $2.7B collateral for interconnection agreements demonstrate operational rigor.
- **Wildfire Risk Mitigation**: California SB 254 reduces exposure, with Sempra's contribution capped at 4.3% of wildfire costs.

**【CEO Summary Section】**
- **Strategic Focus on Texas**: CEO Jeffery Martin emphasized Texas as the top growth market, with Oncor's capital plan expected to increase by over 30% to $55-$60 billion by 2030, driven by transmission expansion and customer load growth.
- **Sempra Infrastructure Sale**: Announced sale of 45% stake in Sempra Infrastructure Partners for $10 billion, expected to close mid-2026. Transaction will improve regulated earnings mix, deconsolidate debt, and provide $0.20 EPS accretion from 2027.
- **2025 Financial Performance**: Reported Q3 adjusted EPS of $1.11, affirming full-year guidance of $4.30-$4.70 and 2026 guidance of $4.80-$5.30. Long-term EPS growth rate remains unchanged.
- **Texas Capital Allocation**: Plans to allocate >50% of capital to Texas utilities, supported by strong balance sheet and proceeds from infrastructure sale.

**【CFO Financial Commentary】**
- **Q3 Financial Results**: GAAP net income $77M ($0.12/share), adjusted EPS $1.11 (up 25% YoY). Sempra Texas contributed $45M from higher equity earnings, Sempra California $76M from tax benefits.
- **Regulatory Updates**: California SB 254 reduces wildfire risk exposure, with Sempra's share of contributions at 4.3% ($13M/year). Oncor base rate review progressing, interim rates approved retroactive to Jan 2026.
- **Project Milestones**: Port Arthur LNG Phase 1 on track for 2027 COD, Phase 2 FID achieved. Cimarron Wind 95% complete, targeting H1 2026 COD.

**【Q&A Highlights】**
- **Balance Sheet Management**: Proceeds from infrastructure sale will eliminate 2025-2029 equity needs, maintain >$1.5 billion liquidity. No equity issuance expected through 2027.
- **Texas Load Growth**: Oncor has 210GW data center pipeline, 19GW interim FEAs signed with $6.5M collateral. 2023-2030 load growth forecast doubled to 39GW, driven by Permian Basin transmission expansion.
- **California Regulatory Strategy**: Focused on wildfire risk-sharing models, with $2.7B collateral held for interconnection agreements. California utilities maintain strong credit metrics (FFO/debt 23%).

Sempra (SRE) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SRE

SRE fundamentals

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