Southern California Gas Stock Earnings Reports

Sempra delivered solid Q1 2026 results and affirmed its full‑year guidance. Key operational and strategic highlights: deployed $3 billion of investment capital in Q1 toward a $13 billion T&D investment target for 2026 and continue executing a record $65 billion capital plan. Oncor received PUCT approval of its base rate settlement (authorized equity 43.5%, ROE 9.75%, cost of debt 4.94%) and was permitted to surcharge billing-rate differences for Jan–Jun 2026; Oncor also filed its inaugural UTM to recover $4.4 billion of T&D assets placed in service, reducing regulatory lag. SDG&E reached an uncontested TO6 settlement with FERC (proposed ROE ~10.28%, subject to approval). Sempra Infrastructure progressed: Cimarron Wind reached COD; ECA LNG introduced feed gas and expects first LNG next month and substantial completion this summer; Port Arthur LNG Phases 1–2 remain on time and on budget. The SI Partners transaction is progressing with key regulatory approvals received and remains on track to close in 2026; proceeds intended to be recycled into the utility businesses and to strengthen the parent balance sheet. Management reiterated strategic simplification toward a utilities‑focused, lower‑risk profile with heavy emphasis on Texas (expecting ~60% of rate base in Texas by decade end) and noted meaningful upside opportunities from ~127 GW of large load in ERCOT and a $10 billion incremental CapEx bucket. They highlighted active supply‑chain and labor measures to de‑risk execution and addressed wildfire‑related legislative engagement in California. Financials: GAAP Q1 earnings $1.37 billion ($1.58/share); adjusted Q1 earnings $991 million ($1.51/share). Sempra reaffirmed 2026 adjusted EPS guidance of $4.80–$5.30 and 2027 guidance of $5.10–$5.70, and a long‑term EPS growth target of 7–9%. Management expects rating agency improvement after close of the SI Partners transaction and subsequent balance‑sheet actions.