1) Strategy & Leadership
- Sempra is focused on investing approximately $13 billion in transmission and distribution (T&D) energy infrastructure in 2026, having deployed $3 billion in Q1.
- The company aims to simplify its business model, concentrating future investments on utilities, with projected rate base growth of 11% annually through 2030.
- Sempra is advancing its capital recycling program, with the Ecogas sale expected to close in Q2 or Q3 2026.
- The company is also prioritizing community safety and operational excellence, as demonstrated by its effective use of natural gas storage during winter storms.

2) Financial & Segment Results
- Q1 2026 GAAP earnings were $1.37 billion or $1.58 per share, compared to $906 million or $1.39 per share in Q1 2025.
- Adjusted earnings for Q1 2026 were $991 million or $1.51 per share, up from $942 million or $1.44 per share YoY.
- Oncor's base rate review is expected to positively impact earnings primarily in Q2, with an authorized equity layer of 43.5% and a return on equity of 9.75%.
- Sempra Infrastructure reported a $34 million increase in earnings due to lower depreciation.

3) Operational & Product Plans
- Sempra Infrastructure declared commercial operation date (COD) at Cimarron Wind and is progressing on ECA LNG Phase 1, expecting first LNG production next month.
- The Port Arthur LNG Phase 1 and Phase 2 construction projects are on track and within budget.
- Oncor is actively working on diversifying its supply chain and reducing execution risk, while also planning for significant capital investments driven by increased demand in Texas.

4) Guidance & Outlook / Investor Angle
- Sempra reaffirmed its full-year 2026 adjusted EPS guidance of $4.8 to $5.3 and 2027 EPS guidance of $5.1 to $5.7.
- The company anticipates long-term EPS growth of 7% to 9%, one of the highest in the utility sector.
- Sempra is well-positioned to capitalize on approximately $9 billion in incremental capital opportunities, primarily in Texas, beyond its base plan.
- The company is focused on improving its credit profile and expects rating agencies to adjust their thresholds post-close of the Sempra Infrastructure transaction.

5) Problems / Headwinds
- The positive financial impact from Oncor's base rate review will not be fully recognized until Q2.
- Labor constraints and supply chain challenges remain a concern, although Sempra has increased contract labor significantly to mitigate these issues.
- The company is monitoring legislative developments regarding wildfire liability laws in California, which could impact operational costs and risk management.

Bottom line: Sempra's strong Q1 results and strategic focus on infrastructure investment, particularly in Texas, position it well for future growth and improved financial performance, despite some regulatory and operational challenges.