Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| But I think the great news is we've got a record capital plan |
| These projects strengthen our competitive advantage as a strategically located supplier to both Asia and Europe |
| So bringing on the first phase of the Pacific Coast LNG facility is really an exciting opportunity and differentiates Sempra Infrastructure with a dual coast business model that will serve global energy demand |
| We think it's a very attractive, commercially viable project |
| This represents an impressive 20% increase over the previous plan and will ultimately serve as a foundation for our company's growth over the coming years |
| This year's results demonstrate the combined strength of our three growth platforms and sets us up for improved growth in 2024 |
| We remain as enthusiastic as ever about the merits of our LNG projects as well as our ability to appropriately navigate the regulatory landscape to advance each one |
| Against this backdrop, Sempra delivered strong financial performance in 2023 with record adjusted earnings and record adjusted earnings per share |
| At Sempra Texas, $19.5 billion includes our proportionate share of Oncor's planned CapEx, where recent legislative development should help Oncor reduce regulatory lag and improve its ability to help lessen the gap between the authorized and actual rates of return |
| Looking forward, one of the primary benefits of rolling out an expanded capital plan is that it provides unique visibility to the strength of our long-term earnings growth |
| We can't speculate on the ultimate outcome of this policy, but we'd like to reiterate the compelling environmental value proposition that natural gas and LNG provide |
| Long-term, we are confident in the commercial, economic and environmental value of our export facilities and we'll continue to work hard on behalf of our customers and investors to advance these projects |
| We are a growing business while maintaining balance sheet strength, all with the goal of delivering attractive total shareholder returns over the long-term |
| So really, really incredibly strong growth across our system |
| Moving to the utilities, our strong earnings trajectory is underpinned by long-term rate base growth |
| Also at Sempra Infrastructure, we declared positive FID on Port Arthur LNG Phase 1, secured financing and began construction |
| Projects like these demonstrate Sempra Infrastructure's innovative and entrepreneurial culture as we seek opportunities to provide cleaner and more secure energy for customers |
| Our rate base is split approximately evenly between California and Texas, where we benefit from constructive regulatory jurisdictions and strong macroeconomic growth |
| Financially, we executed well relative to 2022's strong results and our ability to maintain momentum through 2023 is another indication of our sustainable business model |
| West Texas, we always talk about West Texas continues to be a very strong story for us with the far West Texas weather zone peak increasing by 16.6% year-over-year |
| Going forward, we strongly believe renewables, natural gas and cleaner molecules will be critical in meeting rising energy demand as we transition to an energy future with lower carbon intensity |
| As an example, United States natural gas production set a record during 2023 for the third consecutive year, fueled by strong domestic demand and record LNG exports, all while still achieving lower carbon emissions over the past several decades as renewables and cleaner burning natural gas replace coal as a fuel source in power generation |
| We've achieved several noteworthy milestones in 2023 declaring positive FID on Port Arthur LNG Phase 1 was a major success and we secured all required project level debt and equity contributions |
| And this gives us added confidence in achieving our projected 6% to 8% long-term EPS growth rate |
| As you can see here, our strategy combined with disciplined capital allocation has allowed us to successfully meet or exceed our EPS guidance range for the last 6 years |
| Improving our corporate strategy has allowed us to build significant scale into our business for the benefit of our customers and shareholders |
| We have a dual coast LNG export strategy, a robust energy network portfolio, and power transmission infrastructure to move more renewable power across the border |
| In short, our disciplined execution has consistently delivered total shareholder returns at levels that are well above our peer group |
| We own high quality T&D growth platforms located in California and Texas and some of North America's most attractive economic markets that also benefit from constructive regulation |
| So very long, very strong growth numerically just in the increase of the numbers, but also what we're seeing is the size of the customers |
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| While historically, our earnings growth rate fell below our rate base growth due to regulatory lag |
| I think as you've noted in your prior research, I've often indicated that I would be disappointed if we don't outperform the high end of that range |
| For the past several years, the United States has experienced significant economic uncertainty due to higher inflation, supply chain disruptions and higher interest rates |
| I'd note that earnings in 2022 and 2023 were impacted by the lack of capital trackers that can't be filed during a rate case |
| We believe a lasting policy of limiting LNG exports would unfortunately hurt the global climate interests, because prospective buyers could be forced to rely on more carbon intensive fuels including coal and fuel oil |
| At Cameron LNG Phase 1, we've now exceeded 700 cargoes since production began in May of 2019 and we couldn't be more pleased with the high quality operations from this critical infrastructure asset |
| The challenge you get into is when you look at the slide that we've provided, it shows other opportunities |
| It's also noteworthy that we've accomplished this across different market cycles that have included a global pandemic, supply chain shortages, high inflation, rising interest rates and geopolitical unrest |
| Our challenge is given where we're at in the regulatory process, that's probably all we're prepared to share in terms of assumptions at this time |
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