Core Insights - Energy infrastructure firm Sempra exceeded third-quarter profit estimates, primarily due to increased investments in its Texas utility operations [1] - The company is also taking steps to streamline operations and improve efficiency in its California units [1] Financial Performance - Sempra's third-quarter profits were driven by significant growth in its Texas utility investments [1] - The financial results indicate a positive trend in profitability, suggesting strong operational performance [1] Operational Developments - The company is focusing on operational streamlining in its California units, which may enhance overall efficiency and reduce costs [1] - These operational improvements are part of a broader strategy to optimize performance across its various business segments [1]

Core Insights - Oncor Electric Delivery Company reported a net income of $380 million for Q3 2025, an increase of $56 million from $324 million in Q3 2024, driven by higher revenues from updated interim rates, regulated revenues from the System Resiliency Plan (SRP), and customer growth [1][2] - For the nine months ended September 30, 2025, Oncor's net income was $820 million, up from $800 million in the same period in 2024, reflecting similar revenue drivers [2] - The company is finalizing a new five-year capital plan for 2026-2030, expected to be at least 30% higher than the previous plan of $36.1 billion [3] Financial Performance - Operating revenues for Q3 2025 were $1.845 billion, compared to $1.660 billion in Q3 2024, marking an increase of $185 million [21] - For the nine months ended September 30, 2025, operating revenues reached $5.047 billion, up from $4.610 billion in the same period in 2024, an increase of $437 million [21] - Distribution base revenues from residential customers increased by 7.1% in Q3 2025 compared to Q3 2024, and by 8.5% for the nine-month period [25] Operational Highlights - Oncor is executing its portion of the Permian Basin Reliability Plan (PBRP) and has secured critical equipment with initial deliveries expected in Q1 2027 [6] - The company filed two new Certificate of Convenience and Necessity (CCN) amendment applications in Q3 2025, building on eleven filings from earlier in the year [6] - As of September 30, 2025, Oncor had over 600 active large commercial and industrial interconnection requests, a 60% increase from the previous year [10] Management Updates - Jim Greer, Executive Vice President and COO, will retire on December 31, 2025, with Ellen Buck appointed as his successor [4][5] - Don Clevenger has been promoted to Executive Vice President and CFO, effective January 1, 2026 [5] Regulatory and Liquidity Updates - Oncor's base rate review is progressing, with a settlement agreement approved that allows for surcharges or refunds of final approved rates if the proceeding is still pending on January 1, 2026 [11] - As of November 4, 2025, Oncor's available liquidity totaled approximately $3.6 billion, sufficient to meet capital expenditures and operational needs for at least the next twelve months [12]

Financial Performance - Sempra reported third-quarter 2025 GAAP earnings of $77 million or $0.12 per diluted share, a significant decrease from $638 million or $1.00 per diluted share in the same quarter of 2024 [1][3] - Adjusted earnings for the third quarter of 2025 were $728 million or $1.11 per diluted share, compared to $566 million or $0.89 per diluted share in 2024 [1][3] - For the first nine months of 2025, GAAP earnings were $1.444 billion or $2.21 per diluted share, down from $2.152 billion or $3.38 per diluted share in the same period of 2024 [1][3] Strategic Initiatives - Sempra announced a strategic transaction to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR, aimed at simplifying the business model and improving financial strength [4] - The sale is expected to close in Q2 – Q3 2026, pending regulatory approvals [4] Capital Investments - Oncor Electric Delivery Company anticipates a more than 30% increase in its capital spending for the 2026-2030 period, building on a $36 billion base capital plan for 2025-2029 [5] - In the third quarter of 2025, Oncor upgraded approximately 660 circuit miles of transmission and distribution lines, reflecting ongoing growth in North Texas [6] Regulatory Developments - Oncor's base rate review is progressing, with a settlement agreement approved for interim rates, allowing for potential surcharges or refunds if the proceeding is still pending by January 1, 2026 [7] - California enacted Senate Bill 254, establishing an up to $18 billion continuation account to enhance the wildfire fund's stability, benefiting investor-owned electric utilities [8] Future Guidance - Sempra updated its full-year 2025 GAAP EPS guidance range to $3.05 to $3.45 and affirmed its adjusted EPS guidance range of $4.30 to $4.70 [10][30]

Sempra (NYSE:SRE) is one of the stocks Jim Cramer recently talked about. Answering a caller’s query during the lightning round, Cramer remarked: “Jeff Martin pulled it off. You know, he missed the quarter real bad, and I was worried. I said, Jeff, you know, I don’t know. I was going to put it in the book. I felt like wow… It came right back. He’s done a great job.” Sempra (NYSE:SRE) develops and operates energy infrastructure, providing natural gas and electric services through regulated utilities and ...

Core Insights - The utility sector is viewed as undervalued compared to its growth opportunities, with strong demand driven by infrastructure needs and economic growth [3][4] - Sempra Energy and Constellation Energy are highlighted as top utility stock picks, with positive growth outlooks and strategic initiatives [2][19] Sempra Energy - Sempra Energy operates in California and Texas, serving approximately 40 million customers with total assets nearing $100 billion [1] - The company has three main divisions: Sempra California, Sempra Texas, and Sempra Infrastructure, focusing on grid resiliency and renewable energy integration [7][9] - Recent strategic actions include the sale of 45% of Sempra Infrastructure Partners to KKR for $10 billion, expected to close mid-next year [10] - For Q2 2025, Sempra reported revenue of $3 billion, flat year-over-year, and a non-GAAP EPS of 89 cents, beating forecasts by 4 cents [11][12] - Analyst Pourreza rates Sempra as Overweight with a price target of $115, indicating a potential upside of 24% [14] Constellation Energy - Constellation Energy is a leader in the US carbon-free power market, with over 32,400 megawatts of capacity, 90% of which is carbon-free [15][16] - The company is expanding through strategic acquisitions, including the $16.4 billion acquisition of Calpine, expected to close by year-end [17] - Constellation reported $6.1 billion in revenue for Q2 2025, an 11.5% increase year-over-year, with earnings of $1.91 per share, exceeding expectations [19] - Analyst Pourreza gives Constellation an Overweight rating with a price target of $478, suggesting a 24% gain potential [21]

Group 1: Sempra - Sempra is recommended as a buy by Jim Cramer, supported by Wells Fargo analyst Shahriar Pourreza who initiated coverage with an Overweight rating and a price target of $115 [1] Group 2: Pfizer - Pfizer announced initial results from the HER2CLIMB-05 clinical trial for a new treatment for metastatic breast cancer (MBC) positive for HER2 [1] - Pfizer shares fell 1.1% to settle at $24.50 [6] Group 3: Dow Inc. - Dow reported a lower-than-expected third-quarter loss, with an adjusted loss of 19 cents per share, beating the projected 29-cent loss [2] - Revenue for Dow fell 8% year over year to $9.97 billion, missing the estimate of $10.23 billion [2] - Dow shares fell 1.4% to close at $25.38 [6] Group 4: Plug Power Inc. - Plug Power's stock fell over 20% after announcing a warrant inducement agreement to raise $370 million, raising concerns about shareholder dilution [3] - Plug Power shares dipped 5.7% to settle at $2.79 [6]

Group 1 - The core viewpoint is that the valuation of the U.S. utility sector is significantly undervalued due to a combination of favorable factors [1] - Analysts from Wells Fargo suggest that the utility sector is fundamentally more structural than cyclical, indicating a shift in investor mindset towards viewing utilities as growth-oriented rather than yield-oriented [1] - The traditional perception of utilities as risk-averse or income-focused investments is no longer applicable, as the sector's defensive characteristics provide market support while allowing for upward flexibility in various themes [1] Group 2 - The bullish outlook on the utility sector is supported by fundamental supply and demand dynamics, which represent a structural change and serve as the growth engine for utilities and independent power producers [1] - Constellation Energy (CEG.US) is highlighted as a top investment recommendation for independent power producers, seen as a prime opportunity to capitalize on large-scale enterprise and resource abundance trends [1] - Sempra (SRE.US) is recommended as a top pick among utility companies, particularly as an ideal buying opportunity before a key adjustment period in February, given its current undervaluation and high growth potential [1]

Core Insights - Sempra Energy is a significant player in the U.S. energy infrastructure sector, focusing on utility growth and strategic asset sales, which are crucial for its long-term success [1] - The company has a market capitalization of approximately $59.8 billion, highlighting its substantial presence in the industry [1] Financial Performance - Morgan Stanley maintained an "Overweight" rating for Sempra Energy, raising the price target from $93 to $99, indicating confidence in the company's future performance [2][6] - The current stock price of Sempra Energy is $91.68, reflecting a slight decrease of 0.66% or $0.61, with fluctuations between $91.62 and $93.24 during the trading day [4] Strategic Moves - Sempra is executing a $10 billion deal to sell a 45% stake in Sempra Infrastructure, which is expected to strengthen its balance sheet and enhance projected earnings per share from 2027 onwards [3][6] - The company's long-term growth is supported by major LNG agreements and utility investments, despite facing regulatory and geopolitical challenges [5][6]

Core Insights - Sempra is a San Diego-based energy infrastructure company with a market cap of $60.5 billion, serving over 40 million consumers in the U.S. and Mexico, focusing on modernizing utility systems and expanding renewable energy initiatives [1] Financial Performance - Sempra is expected to announce its fiscal Q3 2025 earnings on November 5, with analysts predicting an adjusted EPS of $0.90, a 1.1% increase from $0.89 in the same quarter last year [2] - For fiscal 2025, the expected adjusted EPS is $4.53, down 2.6% from $4.65 in fiscal 2024, but projected to grow 12.1% year-over-year to $5.08 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, Sempra shares have gained 8.7%, underperforming the S&P 500 Index's 15.1% return and the Utilities Select Sector SPDR Fund's 11% gain [4] - Following the Q2 results announcement on August 7, Sempra shares rose 1.8% after reporting adjusted earnings of $0.89 per share, exceeding Wall Street's estimate of $0.83, with revenue at $3 billion [5] Analyst Ratings - The consensus view on Sempra stock is cautiously optimistic, with a "Moderate Buy" rating from 17 analysts, including seven recommending a "Strong Buy," one a "Moderate Buy," and nine "Holds" [6]

Core Insights - Oncor Electric Delivery Company LLC plans to release its third quarter 2025 results on November 5, prior to Sempra's third quarter 2025 results conference call [1][2] - The conference call will be hosted by Sempra executives at 12 p.m. ET on November 5, discussing Oncor's operational and financial results [2] - Oncor operates the largest transmission and distribution system in Texas, delivering electricity to over 4 million homes and businesses [3] Company Overview - Oncor is a regulated electricity transmission and distribution business headquartered in Dallas, Texas [3] - The company operates more than 144,000 circuit miles of transmission and distribution lines in Texas [3] - Oncor is owned by Sempra (indirect majority owner) and Texas Transmission Investment LLC (minority owner), with management by a Board of Directors comprised of a majority of disinterested directors [3]