Financial Performance - Reported Q2-2025 adjusted EPS of $0.89 and YTD-2025 adjusted EPS of $2.34[12] - Affirmed FY-2025 adjusted EPS guidance range of $4.30 - $4.70[12] - Affirmed FY-2026 EPS guidance range of $4.80 - $5.30[12] - Affirmed guidance at high-end or above projected EPS CAGR of 7% - 9% for 2025 through 2029[12] - Oncor invested $3 billion of CapEx, supporting premise count increase of 20,000[16] Strategic Initiatives - Invested over $5 billion of CapEx in 1H-2025[11] - Executed an effort to save $300 million by phasing out certain non-economic regulatory programs in California[11] - Initiated Ecogas sale process[11] - Extended ROFO process with existing limited partners and signed non-binding letter of intent with KKR[11] Operational Excellence and Infrastructure Development - Hardened 100% of SDGE's transmission system located in Tier 3 HFTD, with 100% of all HFTD transmission expected in 2028[11] - Safely completed 1,000th LNG cargo from Cameron LNG Phase 1 since start of operations[11] - SDGE awarded estimated $600 million of projects in finalized CAISO 2024 – 2025 Transmission Plan[16]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Sempra reported Q2 2025 GAAP earnings of $461 million, affirmed 2025 adjusted EPS, and advanced capital recycling [Second-Quarter 2025 Financial Highlights](index=1&type=section&id=Second-Quarter%202025%20Financial%20Highlights) Sempra's Q2 2025 financial performance showed decreased GAAP earnings but increased adjusted earnings year-over-year | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | GAAP Earnings | $461 million | $713 million | -$252 million | | GAAP Diluted EPS | $0.71 | $1.12 | -$0.41 | | Adjusted Earnings | $583 million | $567 million | +$16 million | | Adjusted Diluted EPS | $0.89 | $0.89 | No Change | - Jeffrey W. Martin, chairman and CEO of Sempra, expressed satisfaction with the solid quarter and continued focus on disciplined execution of value creation initiatives for 2025, aiming for a more utility-centric business model[4](index=4&type=chunk) [Update on Value Creation Initiatives](index=2&type=section&id=Update%20on%20Value%20Creation%20Initiatives) Sempra progressed on capital recycling, including planned equity sales in Sempra Infrastructure and Ecogas México - Sempra made steady progress on its five value creation initiatives for 2025, particularly its ongoing capital recycling program[7](index=7&type=chunk) - The company extended the right of first offer process and signed a non-binding letter of intent with KKR for the planned sale of equity at Sempra Infrastructure[7](index=7&type=chunk) - The sales process for Ecogas México, S. de R.L. de C.V. continues to advance with strong interest from strategic and financial buyers[7](index=7&type=chunk) - Both transactions (Sempra Infrastructure equity and Ecogas México sale) are expected to close in the second or third quarter of 2026[7](index=7&type=chunk) [Earnings Guidance](index=3&type=section&id=Earnings%20Guidance) Sempra updated 2025 GAAP EPS guidance while affirming adjusted EPS and long-term growth projections | Guidance Metric | Range | Status | | :-------------- | :---- | :----- | | Full-year 2025 GAAP EPS | $4.05 to $4.45 | Updated (reflecting Q2 results) | | Full-year 2025 Adjusted EPS | $4.30 to $4.70 | Affirmed | | Full-year 2026 EPS | $4.80 to $5.30 | Affirmed | | Long-term EPS CAGR (2025-2029) | 7% to 9% | Affirmed (to high-end or above) | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section details Sempra's condensed consolidated statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw stable total revenues but a significant decrease in net income and diluted EPS year-over-year | Metric (Millions USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Total Revenues | $3,000 | $3,011 | $6,802 | $6,651 | | Income before income taxes and equity earnings | $298 | $308 | $949 | $1,013 | | Net income | $519 | $871 | $1,438 | $1,752 | | Earnings attributable to common shares | $461 | $713 | $1,367 | $1,514 | | Diluted EPS | $0.71 | $1.12 | $2.09 | $2.38 | - Total revenues remained stable year-over-year for Q2, while YTD revenues increased[26](index=26&type=chunk) - Net income and earnings attributable to common shares decreased significantly in Q2 2025 compared to Q2 2024[26](index=26&type=chunk) [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased by **$3.75 billion**, driven by property, plant, and equipment, alongside rising long-term debt | Metric (Millions USD) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total Current Assets | $4,169 | $5,285 | -$1,116 | | Total Other Assets | $30,936 | $29,433 | +$1,503 | | Property, plant and equipment, net | $64,802 | $61,437 | +$3,365 | | Total Assets | $99,907 | $96,155 | +$3,752 | | Total Current Liabilities | $8,607 | $9,676 | -$1,069 | | Long-term debt and finance leases | $34,936 | $31,558 | +$3,378 | | Total Liabilities and Equity | $99,907 | $96,155 | +$3,752 | | Sempra shareholders' equity | $31,697 | $31,222 | +$475 | - Total assets increased by **$3.75 billion** from December 31, 2024, primarily driven by an increase in property, plant and equipment, net, and other assets[37](index=37&type=chunk) - Long-term debt and finance leases increased by **$3.38 billion**, while total current liabilities decreased by **$1.07 billion**[39](index=39&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased, while investing activities saw a substantial increase in cash used year-over-year | Metric (Millions USD) | YTD 2025 | YTD 2024 | Change | | :-------------------- | :------- | :------- | :----- | | Net cash provided by operating activities | $2,266 | $2,520 | -$254 | | Net cash used in investing activities | $(5,563) | $(4,168) | -$1,395 | | Net cash provided by financing activities | $1,891 | $1,618 | +$273 | | Decrease in cash, cash equivalents and restricted cash | $(1,406) | $(38) | -$1,368 | - Net cash provided by operating activities decreased by **$254 million** year-over-year for the six months ended June 30[41](index=41&type=chunk) - Investing activities saw a significant increase in cash used, primarily due to higher expenditures for property, plant and equipment (**$4.64 billion** in YTD 2025 vs. **$3.83 billion** in YTD 2024) and investments (**$972 million** vs. **$387 million**)[41](index=41&type=chunk) [Segment Performance and Operations](index=2&type=section&id=Segment%20Performance%20and%20Operations) Sempra's segments, Sempra Texas, California, and Infrastructure, reported varied Q2 2025 performance and strategic advancements [Sempra California](index=3&type=section&id=Sempra%20California) Sempra California focused on grid modernization, strategic capital investments, and cost-saving initiatives for customers - Sempra California is a dual-utility platform focused on connecting roughly **25 million** consumers to safe, reliable and affordable energy[11](index=11&type=chunk) - San Diego Gas & Electric Company (SDG&E) was awarded an estimated **$600 million** of projects in the California Independent System Operator's 2024-2025 Transmission Plan[11](index=11&type=chunk) - SDG&E and Southern California Gas Company (SoCalGas) invested over **$1.2 billion** of capital during the quarter to advance strategic programs and modernize energy networks[12](index=12&type=chunk) - SDG&E is executing initiatives to lower costs and improve productivity, including an effort to save customers nearly **$300 million** between 2026 and 2031 by phasing out certain non-economic regulatory programs[12](index=12&type=chunk) | Metric (Millions USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Earnings attributable to common shares | $259 | $316 | $983 | $898 | | Capital Expenditures for Property, Plant and Equipment | $1,221 | $1,069 | $2,315 | $2,212 | [Sempra Texas Utilities (Oncor)](index=2&type=section&id=Sempra%20Texas%20Utilities%20(Oncor)) Oncor benefited from new legislation, increased interconnection requests, and filed for a comprehensive base rate review - The state of Texas passed new legislation, including the Unified Tracker Mechanism (House Bill 5247), expected to reduce regulatory lag and improve earned returns on equity for qualifying utilities like Oncor[8](index=8&type=chunk) - Oncor Electric Delivery Company LLC (Oncor) had over **1,120** active transmission point of interconnection requests in queue, representing a nearly **40% increase** compared to Q2 2024[9](index=9&type=chunk) - Oncor increased its premises served by almost **20,000** in Q2 and built, rebuilt or upgraded nearly **600 circuit miles** of transmission and distribution power lines[9](index=9&type=chunk) - Oncor filed a request for a comprehensive base rate review with the Public Utility Commission of Texas, with a final order expected in Q1 2026[10](index=10&type=chunk) | Metric (Millions USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Earnings attributable to common shares | $208 | $202 | $354 | $385 | | Capital Expenditures for Investments | $485 | $192 | $971 | $385 | [Sempra Infrastructure](index=3&type=section&id=Sempra%20Infrastructure) Sempra Infrastructure advanced major construction projects, secured LNG export authorization, and signed a 20-year LNG supply agreement - Sempra Infrastructure continued to make progress on five significant construction projects, including infrastructure projects on both the Pacific and Gulf Coasts of North America[13](index=13&type=chunk) - The Port Arthur LNG Phase 2 development project received its non-FTA export authorization from the U.S. Department of Energy, allowing export of up to approximately **13.5 Mtpa** of U.S.-produced LNG[14](index=14&type=chunk) - Sempra Infrastructure executed a 20-year sale and purchase agreement with JERA Co. Inc. for the supply of **1.5 Mtpa** of LNG offtake from Phase 2[14](index=14&type=chunk) - Sempra continues to target making a financial investment decision on Port Arthur LNG Phase 2 in 2025[14](index=14&type=chunk) | Metric (Millions USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Earnings attributable to common shares | $72 | $291 | $218 | $422 | | Capital Expenditures for Property, Plant and Equipment | $1,081 | $827 | $2,322 | $1,617 | [Other Operating Statistics](index=14&type=section&id=Other%20Operating%20Statistics) This section provides key operational metrics for Sempra California, Oncor, Ecogas, and Termoeléctrica de Mexicali | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :------ | :------ | :------- | :------- | | Sempra California Gas sales (Bcf) | 75 | 78 | 191 | 200 | | Sempra California Total gas customer meters (thousands) | N/A | N/A | 7,135 | 7,098 | | Sempra California Electric sales (millions of kWhs) | 610 | 661 | 1,325 | 1,596 | | Sempra California Total electric customer meters (thousands) | N/A | N/A | 1,540 | 1,525 | | Oncor Total deliveries (millions of kWhs) | 42,226 | 40,343 | 81,232 | 77,656 | | Oncor Total electric customer meters (thousands) | N/A | N/A | 4,084 | 4,008 | | Ecogas Natural gas customer meters (thousands) | N/A | N/A | 166 | 160 | | Sempra Infrastructure Termoeléctrica de Mexicali (millions of kWhs) | 776 | 650 | 1,478 | 1,630 | - Oncor's total electric deliveries increased by **4.67%** in Q2 2025 YoY and **4.61%** YTD 2025 YoY, reflecting strong economic growth in Texas[45](index=45&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Sempra uses non-GAAP measures like adjusted earnings and EPS to clarify ongoing performance by excluding infrequent or volatile items [Reconciliation of Adjusted Earnings to GAAP Earnings](index=7&type=section&id=Reconciliation%20of%20Adjusted%20Earnings%20to%20GAAP%20Earnings) This section reconciles adjusted earnings to GAAP earnings by detailing specific excluded items and their financial impact - Adjusted earnings and EPS exclude items generally not related to ongoing business activities and/or infrequent in nature, such as regulatory disallowances, foreign currency and inflation impacts in Mexico, and net unrealized gains/losses on commodity and interest rate derivatives[28](index=28&type=chunk) | Excluded Item (Millions USD) | Q2 2025 Impact | YTD 2025 Impact | | :--------------------------- | :------------- | :-------------- | | Regulatory disallowances | $25 | $25 | | Foreign currency and inflation (Mexico) | $97 | $89 | | Net unrealized (gains) losses on commodity derivatives | $(25) | $10 | | Net unrealized (gains) losses on interest rate swaps (PA LNG Phase 1) | $(1) | $8 | | Tax items related to assets held for sale | $26 | $26 | [Reconciliation of Adjusted EPS Guidance to GAAP EPS Guidance](index=9&type=section&id=Reconciliation%20of%20Adjusted%20EPS%20Guidance%20to%20GAAP%20EPS%20Guidance) Sempra's 2025 adjusted EPS guidance excludes specific items to provide a consistent view of core business operations - Sempra's 2025 Adjusted EPS Guidance Range of **$4.30 to $4.70** excludes specific items, similar to historical adjusted earnings, to provide a meaningful comparison of business operations[33](index=33&type=chunk) - This guidance does not contemplate the anticipated impacts of the proposed sale of Ecogas and the proposed sale of an equity interest in Sempra Infrastructure Partners, which combined, are expected to be accretive[33](index=33&type=chunk) | Excluded Item (EPS Impact) | Full-Year 2025 | | :------------------------- | :------------- | | Impact from regulatory disallowances | $0.04 | | Impact from foreign currency and inflation on monetary positions in Mexico | $0.14 | | Net unrealized losses on commodity derivatives | $0.02 | | Net unrealized losses on interest rate swaps related to PA LNG Phase 1 project | $0.01 | | Tax items related to assets held for sale | $0.04 | [Additional Information](index=4&type=section&id=Additional%20Information) This section provides general information about Sempra and important disclaimers regarding forward-looking statements and associated risks [About Sempra](index=4&type=section&id=About%20Sempra) Sempra is a leading North American energy infrastructure company serving nearly **40 million** consumers across key markets - Sempra is a leading North American energy infrastructure company focused on delivering energy to nearly **40 million** consumers[18](index=18&type=chunk) - The company owns one of the largest energy networks on the continent, electrifying and improving energy resilience in significant economic markets including California, Texas, Mexico, and global energy markets[18](index=18&type=chunk) - Sempra is recognized as a leader in sustainable business practices and for its high-performance culture, demonstrated by its inclusion in the Dow Jones Sustainability Index North America[18](index=18&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines the inherent risks and uncertainties associated with Sempra's forward-looking statements and future results - The press release contains forward-looking statements based on assumptions about the future, involving risks and uncertainties, and are not guarantees[19](index=19&type=chunk) - Factors that could cause actual results to differ materially include California wildfires, regulatory actions, success of business development efforts, changes to capital expenditure plans, changes in trade and foreign policy, litigation, cybersecurity threats, capital resource availability, and climate policies[21](index=21&type=chunk) - Investors should not rely unduly on any forward-looking statements, and further risks are discussed in Sempra's reports filed with the U.S. Securities and Exchange Commission (SEC)[23](index=23&type=chunk)

Financial Performance - Oncor reported a net income of $259 million for Q2 2025, an increase from $251 million in Q2 2024, driven by higher revenues from updated interim rates and customer growth [1][2] - For the first half of 2025, net income was $440 million, down from $476 million in the same period of 2024, primarily due to increased interest and depreciation expenses [2][3] Operational Highlights - Oncor is executing a record $7.1 billion annual capital expenditure plan for 2025, focusing on system resiliency and wildfire risk mitigation [3] - The company upgraded approximately 590 circuit miles of transmission and distribution lines in Q2 2025, reflecting ongoing growth in Texas [5] Legislative and Regulatory Developments - Texas House Bill 5247 allows Oncor to record costs related to capital investments and apply for interim rate adjustments, which is expected to benefit both the company and its customers [8][9] - Oncor filed a comprehensive base rate review request with the Public Utility Commission of Texas (PUCT) to adjust electric delivery rates, with a decision expected in Q1 2026 [11] Capital Expenditure and Future Plans - Oncor anticipates that its capital expenditures for the 2025-2029 period could exceed $12 billion, with an updated five-year capital plan to be presented in October 2025 [6][7] - The company is actively involved in the Electric Reliability Council of Texas (ERCOT) Strategic Transmission Expansion Plan, with joint filings outlining approximately $10 billion in projects [4] Liquidity and Credit Position - As of August 6, 2025, Oncor's available liquidity was approximately $3.9 billion, sufficient to meet capital expenditures and operational needs for at least the next twelve months [12] - S&P Global Ratings downgraded Oncor's issuer credit rating from "A" to "A-", citing elevated wildfire risks, but revised the outlook to stable [13] Customer and Market Growth - Oncor's active large commercial and industrial interconnection queue increased by approximately 38% year-over-year, indicating strong industrial growth within its service territory [5] - Total electric energy volumes increased by 4.7% in Q2 2025 compared to Q2 2024, driven by higher consumption in commercial and industrial sectors [23]

Financial Performance - Sempra reported second-quarter 2025 GAAP earnings of $461 million or $0.71 per diluted share, a decrease from $713 million or $1.12 per diluted share in the same quarter of 2024 [1][3] - Adjusted earnings for the second quarter of 2025 were $583 million or $0.89 per diluted share, compared to $567 million or $0.89 per diluted share in 2024 [1][3] - For the first half of 2025, GAAP earnings totaled $1.367 billion, down from $1.514 billion in the first half of 2024 [3][21] Value Creation Initiatives - Sempra is focused on five value creation initiatives for 2025, including capital recycling programs [2][4] - The company has signed a non-binding letter of intent with KKR for the planned sale of equity at Sempra Infrastructure and is advancing the sale process for Ecogas México, expected to close in 2026 [4] Legislative and Regulatory Developments - Texas passed new legislation, House Bill 5247, to help utilities manage regulatory lag and improve returns on equity during high investment periods [5] - Oncor Electric Delivery Company has begun utilizing an alternative tracker mechanism to enhance electric reliability and has seen a nearly 40% increase in active transmission requests compared to the previous year [6][7] Infrastructure and Capital Expenditures - Sempra California is investing over $1.2 billion to modernize energy networks and meet growing demand [9] - Sempra Infrastructure is progressing on five significant construction projects, including the Port Arthur LNG Phase 2 project, which received export authorization for 13.5 million tonnes per annum [10][11] Earnings Guidance - The company updated its full-year 2025 GAAP EPS guidance range to $4.05 to $4.45 and affirmed its adjusted EPS guidance range of $4.30 to $4.70 [12][27]

Key Takeaways Sempra Energy (SRE) is scheduled to release its second-quarter 2025 results on Aug. 7, before market open. The company delivered an earnings surprise of 19.01% in the last reported quarter. However, SRE has a negative four-quarter average earnings surprise of 2.07%. Let's discuss the factors that are likely to be reflected in the upcoming quarterly results. What Our Model Predicts for SRE Factors at Play Ahead of SRE's Q2 Results The majority of SRE's service territories experienced warmer-tha ...

Core Viewpoint - The Zacks Utilities sector is expected to see a 0.7% increase in earnings for Q2 2025, driven by higher revenues of 7.5%, supported by new rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - MDU Resources Group is anticipated to benefit from customer growth in electric and natural gas sectors, with an Earnings ESP of +20% and a Zacks Rank 2, despite a projected earnings decrease of 59.4% year-over-year [7][8] - ONE Gas is expected to report earnings of $1.75 per share, reflecting a 37.8% increase from the previous year, supported by new rates and infrastructure investments, with an Earnings ESP of +3.22% and a Zacks Rank 2 [9][10] - Sempra Energy's earnings are projected at 83 cents per share, a decrease of 6.7% from the prior year, benefiting from renewable energy investments and data center demand, with an Earnings ESP of +0.60% and a Zacks Rank 2 [11] - Spire is expected to show an improvement in fiscal third-quarter earnings, with a projected loss of 9 cents per share, indicating a 35.7% improvement year-over-year, supported by advanced meter installations and customer growth, with an Earnings ESP of +14.81% and a Zacks Rank 3 [12][13] Group 2: Factors Influencing Performance - Utility providers are benefiting from higher electricity rates, acquisitions, cost reductions, and energy-efficiency programs, which enhance their overall performance [3] - The installation of smart meters is improving operational efficiency and customer engagement, leading to reduced costs and increased revenue [4] - The growing demand from data centers, particularly those supporting artificial intelligence, is significantly increasing electricity consumption, positively impacting utility revenues [5] - Economic improvements in service territories are creating fresh demand for utility services, further boosting revenues [4][5][6]

Company Overview - Sempra (SRE) is anticipated to report a year-over-year decline in earnings, with expected earnings of $0.83 per share, reflecting a decrease of 6.7% compared to the previous year [3][12] - The company's revenues are projected to be $3.15 billion, which represents an increase of 4.7% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on August 7, and the actual results will significantly influence the stock price, depending on whether they meet or exceed expectations [2][12] - The consensus EPS estimate has been revised 8.84% higher in the last 30 days, indicating a more optimistic outlook from analysts [4] Earnings Surprise Prediction - Sempra has an Earnings ESP (Expected Surprise Prediction) of +0.60%, suggesting a likelihood of beating the consensus EPS estimate [12] - The company currently holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, indicates a strong potential for an earnings beat [10][12] Historical Performance - In the last reported quarter, Sempra exceeded the expected earnings of $1.21 per share by delivering $1.44, resulting in a surprise of +19.01% [13] - Over the past four quarters, Sempra has only beaten consensus EPS estimates once [14] Industry Context - In the Zacks Utility - Gas Distribution industry, Atmos Energy (ATO) is expected to report earnings of $1.17 per share, reflecting a year-over-year increase of 8.3% [18] - Atmos Energy's revenue is projected to be $940.91 million, up 34.1% from the previous year [18] - Despite a recent downward revision of 3.4% in the consensus EPS estimate for Atmos, it has a Zacks Rank of 3 (Hold) and an Earnings ESP of 0%, making predictions about its performance less conclusive [19]

Core Insights - Sempra Infrastructure and JERA Co., Inc. have signed a 20-year sale and purchase agreement for the supply of 1.5 million tonnes per annum of liquefied natural gas from the Port Arthur LNG Phase 2 project in Texas [1][2] - This agreement signifies a commitment to energy security and a lower carbon future through stable LNG supply [2][3] - The Port Arthur LNG Phase 2 project aims to double the liquefaction capacity of the facility from approximately 13 Mtpa to up to 26 Mtpa [4] Company Developments - Sempra Infrastructure is focused on advancing the Port Arthur LNG Phase 2 project towards a final investment decision, enhancing the U.S. role as a preferred LNG supplier [3] - The project has received all key permits and is actively being marketed and developed, with construction expected to begin soon [4][5] - The Port Arthur LNG Phase 1 project is currently under construction and is expected to achieve commercial operation in 2027 and 2028 for its two trains [6] Strategic Relationships - The agreement with JERA establishes a long-term relationship, ensuring reliable access to U.S. natural gas for Japan and the broader Asian market [3] - JERA's commitment to securing a dependable LNG supply aligns with its growth strategy and enhances its LNG portfolio [3][8] - JERA is Japan's largest power generation company and a significant player in the global LNG market, producing one-third of Japan's electricity [8]

Company Overview - Sempra (SRE) is headquartered in San Diego and operates in the Utilities sector, specifically in Gas Distribution [3] - The company's stock has experienced a price change of -7.49% year-to-date [3] Dividend Information - Sempra currently pays a dividend of $0.64 per share, resulting in a dividend yield of 3.18% [3] - The Utility - Gas Distribution industry's average yield is 3.32%, while the S&P 500's yield is 1.48% [3] - The annualized dividend of Sempra is $2.58, which is a 4% increase from the previous year [4] - Over the last five years, Sempra has increased its dividend five times, averaging an annual increase of 4.28% [4] - The current payout ratio for Sempra is 55%, indicating that 55% of its trailing 12-month EPS is paid out as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Sempra's earnings in 2025 is $4.68 per share, reflecting a year-over-year growth rate of 0.65% [5] Investment Considerations - Sempra is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [6] - The company is positioned well for income investors, especially in the context of rising interest rates [6]

Core Insights - Southern California Gas Co. (SoCalGas) reported that its energy efficiency programs saved customers over $95 million on utility bills in the previous year, with energy savings equivalent to the annual natural gas needs of nearly 125,000 homes [1][2] - The company avoided more than 260,000 metric tons of CO2 emissions, comparable to removing over 56,000 cars from the road for a year [1] - SoCalGas expanded financing options through its Marketplace and GoGreen programs, supporting nearly $67 million in facility and appliance improvements for homes and small businesses [2] Energy Efficiency Programs - SoCalGas administers over 70 customer-facing energy efficiency programs, providing incentives and services to various customer segments including residential, commercial, industrial, agricultural, and public customers [3] - The company engaged more than 2 million customers in 2024 through direct installations, property assessments, and outreach, while educational programs reached over 30,000 students [3] Water Conservation Efforts - SoCalGas' energy efficiency programs also contribute to water conservation, with high-efficiency water devices installed saving over one billion gallons of water in 2024, and an expected total of 11 billion gallons over their lifetime [2] Recognition and Awards - In April 2024, SoCalGas received the ENERGY STAR Partner of the Year Award for the second consecutive year, being the only utility in California to be recognized [4] - The company also received the Organizational Leadership Award from The Climate Registry for its support of California's energy goals [4] Company Overview - SoCalGas is the largest gas distribution utility in the United States, serving over 21 million consumers across approximately 24,000 square miles of Central and Southern California [6] - The company is a subsidiary of Sempra (NYSE: SRE), a leading North American energy infrastructure company [6]