Sempra

Strong earnings momentum + affirmed guidance (good) - Q2 2026 GAAP earnings: $796M / $1.21 EPS, vs $461M / $0.71 EPS in Q2 2025. - Adjusted Q2 2026 EPS: $762M / $1.16, vs $583M / $0.89 in Q2 2025. - Full-year 2026 adjusted EPS guidance affirmed: $4.80 to $5.30; 2027 guidance affirmed: $5.10 to $5.70. - Long-term EPS growth outlook reaffirmed: 7%–9%. - Strategy emphasis: continued execution of the record $65B capital plan, with increasing investment directed to Sempra Texas.

Texas (Oncor/Encore) — improving regulatory/financial outlook, but sensitive to load & policy shifts (opportunity + risk) - Encore highlighted strong Texas power demand: ERCOT peak load hit 91 GW (new all-time peak) with continued growth expectations. - Oncor executing $47.5B 5-year base capital plan plus $10B incremental capital opportunities through 2030, with firming progress in early/endorsed opportunities (e.g., $4B North/Central TX transmission upgrades, plus other reliability/resiliency elements). - “Batch zero” process for large-load interconnections: 44 GW eligible on Oncor system (27 GW base load + 17 GW studied load). - Company view: batch-zero-related needs are “upside beyond” Oncor’s stated base/incremental buckets, but the timing and scope depend on ERCOT/PUCT determinations.

Batch zero / data center debate — durable cost-allocation framework is key (surprising nuance) - Management stressed that political pressure for solutions may shift discussions toward generation and “behind-the-meter” rather than transmission—yet they still believe Oncor base plan momentum is intact. - Key policy goal cited: data centers should cover the full cost of interconnection, while ensuring lower residential bills via tariff subsidy/ratepayer protection approach. - Regulatory timeline uncertainty: the batch process has next-step decision points, including a PUCT open meeting on Aug 20 where ERCOT may seek a “good cause exception” to the batch-zero timeline. - Outlook framing: Sempra expects additional capital needs from batch zero to be clarified after the relevant process milestones (company indicated Q4 as the venue to update Oncor roll-forward plans).