DBA Sempra

Good day and welcome to SEMPRA's first quarter earnings call. Today's conference is being recorded. At this time, I'd like to turn it over to Glenn Donovan. Please go ahead.

Good morning and welcome to SEMPRA's first quarter 2025 earnings call. A live webcast of this teleconference and slide presentation are available on our website under our events and presentations section. We have several members of our management team with us today, including Jeff Martin, Chairman and Chief Executive Officer. Karen Sedrick, Executive Vice President and Chief Financial Officer. Justin Byrd, Executive Vice President and Chief Executive Officer of Sempra Infrastructure. Alan Nye, Chief Executive Officer of Encore. Don Clevenger, Chief Financial Officer of Encore. Carolyn Wynn, Chief Executive Officer of SDG&E. Peter Wall, Senior Vice President, Controller and Chief Accounting Officer. and other members of our senior management team. Before starting, I'd like to remind everyone that we'll be discussing forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in any forward-looking statement we make today. The factors that could cause our actual results to differ materially are discussed in the company's most recent 10-K and 10-Q file with the SEC. Earnings per common share amounts in our presentation are shown on a diluted basis and we'll be discussing certain non-GAAP financial measures. Please refer to the presentation slides that accompany this call for a reconciliation to GAAP measures. We also encourage you to review our 10Q for the quarter ended March 31st, 2025. I'd also like to mention that forward-looking statements contained in this presentation speak only of today, May 8th, 2025, And it's important to note that the company does not assume any obligation to update or revise any of these forward-looking statements in the future. With that, please turn to slide three and let me hand the call over to Jeff.

Thank you all for joining us today. Earlier this morning, we reported first quarter 2025 adjusted EPS of $1.44, which compares favorably to the prior period's results of $1.34. In addition, we're pleased to affirm our full year 2025 adjusted EPS guidance range of $4.30 to $4.70, and we're also affirming our 2026 EPS guidance of $4.80 to $5.30. You'll also recall that we've issued a projected long-term EPS CAGR of 7% to 9% for 2025 through 2029 and have guided to the high end or above that range. As we've discussed, this projection is a compound annual growth rate for the five-year planning period and does not imply linear growth year to year. Now let's turn to our plan of execution for the remainder of the year. Today, our first quarter results reflect a positive step toward the execution of five value creation initiatives. First, we plan to invest roughly $13 billion this year in energy infrastructure with over $10 billion targeted for our U.S. utilities. Just as important, we have initiatives underway that are intended to improve the regulatory compact in both Texas and California. Second, we continue to review opportunities to realign our portfolio to support the growth and expansion of our Texas and California utilities, while also maintaining a strong balance sheet. As a result, we announced our intention to sell a minority interest in Semper Infrastructure Partners. Given the robust demand today for energy infrastructure assets, We expect to complete a transaction that highlights the continued growth in the value of that business. Third, we're continuing our strategy of selling non-core assets and recycling capital to finance our future growth. That's why we recently announced our plans to divest Ecogas, a regulated natural gas distribution utility in northern Mexico. In combination, these actions are designed to advance our company's broader effort to simplify the business and reduce reliance on future issuances of common equity to fund the company's five-year capital plan. With the close of these transactions and the anticipated growth of our utilities, we expect our regulated businesses will account for a much larger percentage of SEMPRA's earnings on an annualized basis. It's also important to note that we expect these combined transactions to be accretive to the company's earnings per share forecast and credit enhancing. We also continue to execute on our Fit for 2025 campaign that we launched in the summer of 2024. The goal of this initiative is to reduce the company's cost structure to align with our future business needs. These efforts are also focused on new technology adoption, including the use of artificial intelligence to improve productivity and customer service. Taken together, these efforts are expected to help support improvements in the affordability of our services and our financial performance. And finally, we'll continue our foundational work of delivering safe and reliable energy for our customers through operational excellence. We're an established leader today in wildfire science and mitigation, and we'll look to build on those competitive advantages here in California, as well as at Encore. The key takeaway is we have an exceptional opportunity to grow and competitively differentiate our company through the end of the decade. To deliver on that opportunity, we understand the importance of executing well in the near term. Our first quarter financial results are an important first step, and as a management team, we have a plan of execution in place for the balance of 2025 that we believe will make our company stronger and more valuable. With that, please turn to slide four, where Karen will walk through business and financial updates.