Sempra Eliminates Equity Issuances After $7.2B Capital Boost, Sees 7-9% Growth
Sempra has removed the need for new equity issuances after boosting operating cash flows by $5B and securing $2.2B in transaction proceeds. It forecasts 7-9% long-term EPS growth and $9B of upside capital opportunities in 2028-2030 that could lift it to the upper end of its 2030 guidance.
1. Capital Plan Financing
Sempra has eliminated the need for new common equity issuances to fund its base capital plan after boosting operating cash flow by $5B and securing $2.2B in proceeds from infrastructure transactions, enhancing its balance sheet flexibility.
2. Long-Term Growth Guidance
The company reaffirmed its long-term EPS growth target of 7-9% through 2030, supported by capital efficiency initiatives, ongoing modernization efforts in its California operations, and disciplined regulatory strategies ahead of the 2028 GRC.
3. Upside Opportunities
Management highlighted $9B of incremental upside capital opportunities outside the current plan, expected to materialize between 2028 and 2030, which could push Sempra’s earnings to the upper half of its 2030 guidance range.
4. Oncor Texas Expansion
Oncor’s CEO detailed an $11.5B increase to its base plan for transmission projects in Texas, driven by robust demand and infrastructure expansion, underpinning a significant portion of the upside capital potential.