Sempra Energy (SE4) Q2 2026 Earnings Report

The call was predominantly positive, supported by strong second-quarter and year-to-date earnings growth, reaffirmed guidance, progress on strategic asset sales, substantial utility capital opportunities, and rising Texas electricity demand. The main challenges were ECA LNG equipment damage, uncertainty around ERCOT's batch zero process and 765-kV approvals, unresolved California wildfire legislation, and Moody's negative outlook. Management nevertheless characterized its outlook for Sempra, Oncor, Texas growth, and the balance sheet as improving and constructive.

Sempra affirmed full year 2026 adjusted EPS guidance range of $4.80 to $5.30, 2027 EPS guidance range of $5.10 to $5.70, and projected long-term EPS growth rate of 7% to 9%; it is advancing its record $65 billion capital plan, with a goal for Sempra Texas to comprise over 60% of Sempra's total rate base in 2023, while Oncor is executing a 5 year base capital plan of $47.5 billion with $10 billion of incremental capital opportunities through 2030, expects its roll forward capital plan to go up, and is expected to update its 5-year plan on the fourth-quarter call, with batch related capital not expected to have a lot more definition until later in 2027; the SI Partners transaction is expected to close later in the quarter and deconsolidate close to $9 billion of debt, ECA LNG Phase 1 is expected to reach substantial completion in the fourth quarter of 26 with sales under its long term sale and purchase agreements commencing shortly thereafter, California is growing rate base at about 5% versus utility platform growth at about 11% annually, or closer to 13% with additional upside at Encore, and Sempra expects to have cushion of at least 50 to 150 basis points on average above rating-agency thresholds.