- Sempra: Oncor's 127 GW Pipeline Could Redefine Its Earnings Power
May 13, 2026 · seekingalpha.com
I am rating Sempra a Strong Buy because Oncor's 127 GW qualifying load forecast creates a much larger long-term transmission and distribution opportunity for the company. The biggest growth driver is Oncor's large-load opportunity in Texas. I estimate that if only 20 GW of Oncor's 127 GW load converts, it could create $17 billion of incremental rate base. My price target is $163, representing a 76% potential upside. I arrive at the PT by using a 21x FWD earnings multiple and a 2030 EPS estimate of $7.74.
- SoCalGas Urges Shareholders to Vote FOR Retirement of All Outstanding Shares of Preferred Stock at a Premium
May 12, 2026
A $31.00 per share cash payment represents a premium of more than 20% over the recent market prices, estimated fair value, and par value of the shares
LOS ANGELES, May 12, 2026 /PRNewswire/ -- Southern California Gas Company (SoCalGas) (OTCQB: SOCGP) (OTC PINK: SOCGM), a subsidiary of Sempra (NYSE: SRE), today announced it will hold a Special Meeting of Shareholders (the "Special Meeting") on July 13, 2026. The anticipated record date for the Special Meeting is May 18, 2026, and only shareholders at the close of business on that date will be eligible to vote.
At the Special Meeting, SoCalGas will seek approval from holders of its 6% Preferred Stock, par value $25.00, and 6% Preferred Stock, Series A, par value $25.00, to retire all outstanding shares of preferred stock in exchange for a cash payment of $31.00 per share, plus accrued and unpaid dividends to but excluding the retirement date. The cash payment represents a premium of more than 20% over the recent market prices, estimated fair value, and par value of the shares.
As part of our ongoing efforts to modernize our business and serve our stakeholders, SoCalGas is pursuing the proposed transaction to simplify its capital structure while delivering immediate value to shareholders. SoCalGas has filed a preliminary proxy statement for the Special Meeting with the U.S. Securities and Exchange Commission ("SEC") and, subject to the timing of SEC review, expects to file its definitive proxy statement on or about May 19, 2026, at which time shareholders as of the record date for the Special Meeting will be able to submit their votes.
SoCalGas urges all preferred shareholders to vote "FOR" this proposal in advance of the meeting. Copies of the proxy materials are available on SoCalGas' website at socalgas.com/about-us/special-shareholder-meeting.
Shareholders with questions about how to vote should contact the Proxy Information Administrator for the Special Meeting:
D.F. King & Co, Inc.
28 Liberty Street, 53rd Floor
New York, New York 10005
Shareholders may call toll free: (800) 769-7666
Banks and brokers may call collect: (212) 914-0093
SoCalGas@dfking.com
About SoCalGas
SoCalGas is the largest gas distribution utility in the United States, serving more than 21 million consumers across approximately 24,000 square miles of Central and Southern California. Our mission is: Safe, Reliable, and Affordable energy delivery today. Ready for tomorrow. SoCalGas is a recognized leader in the energy industry and has been named Corporate Member of the Year by the Los Angeles Chamber of Commerce for its volunteer leadership in the communities it serves. SoCalGas is a subsidiary of Sempra (NYSE: SRE), a leading U.S. utility holding company. For more information, visit SoCalGas.com/newsroom or connect with SoCalGas on social media @SoCalGas.
Story Continues
Message Funded by Shareholders.
Additional Information about the Special Meeting and Where to Find It
In connection with the Special Meeting, on May 4, 2026, SoCalGas filed a preliminary proxy statement with the SEC. On or around May 19, 2026, SoCalGas expects to file its definitive proxy statement and mail proxy cards for the Special Meeting to the shareholders of SoCalGas entitled to vote at the Special Meeting. This communication is not intended to be, and is not, a substitute for the proxy statement or any other document that SoCalGas may file with the SEC in connection with the Special Meeting. SOCALGAS URGES INVESTORS TO READ THE PROXY STATEMENT AND OTHER MATERIALS FILED WITH THE SEC (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY AND IN THEIR ENTIRETY AS THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE SPECIAL MEETING AND THE PROPOSALS TO BE VOTED ON AT THE SPECIAL MEETING. Investors are able to obtain free copies of the proxy statement and other documents that will be filed by SoCalGas with the SEC (when available) at http://www.sec.gov, the SEC's website, or from SoCalGas' website at https://www.socalgas.com/about-us/special-shareholder-meeting. In addition, investors can obtain the Notice of Special Meeting of Shareholders, proxy statement and proxy card free of charge (when available) at www.proxyvote.com.
This communication does not constitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. SoCalGas, its directors and certain of its officers and employees may be deemed to be participants in the solicitation of proxies from shareholders in connection with the Special Meeting. Information about SoCalGas' directors and executive officers is set forth in its definitive information statement for its 2026 annual shareholders meeting filed with the SEC on April 14, 2026. These documents may be obtained free of charge at the SEC's website at www.sec.gov or from the Sempra website at www.sempra.com under the "Investors" and "SEC Filings" tabs. Additional information regarding the interests of participants in the solicitation of proxies in connection with the Special Meetings will be included in the definitive proxy statement that SoCalGas will file the SEC in connection with the Special Meeting and other relevant materials SoCalGas may file with the SEC.
Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.
In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "envision," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "preliminary," "pro forma," "strategic," "initiative," "target," "outlook," "optimistic," "poised," "positioned," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: the ability to obtain all necessary approvals to effect the amendment of our restated articles of incorporation and the retirement of the preferred stock; the ability to achieve the anticipated benefits of the transactions described herein; the effects on such transactions of industry, market, economic, political or regulatory conditions outside of SoCalGas' control; fees, costs and expenses associated with the transactions described herein; transaction-related tax and accounting impacts; the diversion of management time on transaction-related issues; and the effects on such transactions of factors affecting SoCalGas' business and securities, including the risks and uncertainties discussed in the reports we file with the SEC, including under the headings "Risk Factors" and "Information Regarding Forward-Looking Statements" in our annual report on Form 10-K for the year ended December 31, 2025 and subsequently filed quarterly reports on Form 10-Q. Investors should not rely unduly on any forward-looking statements.SoCalGas Logo (PRNewsfoto/San Diego Gas & Electric,Southern California Gas Company)Cision
View original content to download multimedia:https://www.prnewswire.com/news-releases/socalgas-urges-shareholders-to-vote-for-retirement-of-all-outstanding-shares-of-preferred-stock-at-a-premium-302770067.html
View Comments
- Sempra (SRE) Announces Q1 2026 Earnings
May 12, 2026
Sempra (NYSE:SRE) is one of the Best Stocks Under $100 to Invest In Now.On May 7, the company posted its Q1 2026 earnings, which were prepared in accordance with GAAP, of $1.04 billion or $1.58 per diluted share, versus Q1 2025 GAAP earnings of $906 million or $1.39 per diluted share. In Q1 2026, the company’s businesses deployed capital expenditures of ~$3 billion to support safe, reliable, and affordable energy. These form part of Sempra (NYSE:SRE)’s record 5-year 2026-2030 capital plan of ~$65 billion, with 95% allocated towards utility investments in Texas and California.Sempra (SRE) Announces Q1 2026 Earnings
The company affirmed its FY 2026 adjusted EPS guidance range of between $4.8 – $5.3 and its 2027 EPS guidance range of $5.1 – $5.7. Also, it affirmed its expected long-term EPS growth rate of 7% – 9%. Notably, Sempra (NYSE:SRE)’s 2026 value creation initiatives included investing ~$13 billion to modernize and expand energy infrastructure and offer better financial returns, efficiently sourcing capital for utility growth, which includes closing the SI Partners transaction and deconsolidating its debt, among other initiatives.
Sempra (NYSE:SRE) is engaged in the regulated utilities business.
While we acknowledge the potential of SRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts.
Disclosure: None. Follow Insider Monkey on Google News.
View Comments
- SoCalGas Urges Shareholders to Vote FOR Retirement of All Outstanding Shares of Preferred Stock at a Premium
May 12, 2026 · prnewswire.com
A $31.00 per share cash payment represents a premium of more than 20% over the recent market prices, estimated fair value, and par value of the shares LOS ANGELES, May 12, 2026 /PRNewswire/ -- Southern California Gas Company (SoCalGas) (OTCQB: SOCGP) (OTC PINK: SOCGM), a subsidiary of Sempra (NYSE: SRE), today announced it will hold a Special Meeting of Shareholders (the "Special Meeting") on July 13, 2026. The anticipated record date for the Special Meeting is May 18, 2026, and only shareholders at the close of business on that date will be eligible to vote.
- SOCALGAS URGES SHAREHOLDERS TO VOTE FOR RETIREMENT OF ALL OUTSTANDING SHARES OF PREFERRED STOCK AT A PREMIUM
May 12, 2026
A $31.00 PER SHARE CASH PAYMENT REPRESENTS A PREMIUM OF MORE THAN 20% OVER THE RECENT MARKET PRICES, ESTIMATED FAIR VALUE, AND PAR VALUE OF THE SHARES LOS ANGELES, MAY 12, 2026 /PRNEWSWIRE/ -- SOUTHERN CALIFORNIA GAS COMPANY (SOCALGAS) (OTCQB: SOCGP) (OTC PINK: SOCGM), A SUBSIDIARY OF SEMPRA (NYSE: SRE), TODAY ANNOUNCED IT WILL HOLD A SPECIAL MEETING OF SHAREHOLDERS (THE "SPECIAL MEETING") ON JULY 13, 2026. THE ANTICIPATED RECORD DATE FOR THE SPECIAL MEETING IS MAY 18, 2026, AND ONLY SHAREHOLDERS AT THE CLOSE OF BUSINESS ON THAT DATE WILL BE ELIGIBLE TO VOTE.
- Assessing Sempra (SRE) Valuation As Investors Revisit The Stock After Recent Share Price Moves
May 10, 2026
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.
Why Sempra stock is drawing fresh attention
Sempra (SRE) is back on many investors’ radars after recent share price moves, with the stock closing at $91.57 and showing mixed return patterns over the past month and past 3 months.
See our latest analysis for Sempra.
While the recent 7-day share price return of a 3.73% decline and the 30-day share price return of a 7.0% decline suggest fading near-term momentum, the 1-year total shareholder return of 24.54% highlights a stronger longer-term picture for investors.
If shifting utilities prices have you rethinking your watchlist, this can be a good moment to scan the grid focused 36 power grid technology and infrastructure stocks
With Sempra trading at $91.57 against an analyst price target of $104.29 and mixed recent returns, should you view this as a utilities stock available at a relative discount, or are markets already reflecting its potential future prospects in the current price?
Most Popular Narrative: 12.2% Undervalued
With Sempra last closing at $91.57 against a narrative fair value of $104.29, the widely followed view is that the stock trades below its modeled worth, built on a detailed set of long term earnings and margin assumptions.
The rollout and completion of major LNG export projects (ECA Phase 1 nearing completion, Port Arthur Phase 1 advancing, and strong commercial momentum for Phase 2) positions Sempra to benefit from sustained global demand for U.S. LNG as a transition fuel, significantly increasing future cash flows and long-term revenue generation.
Read the complete narrative.
Want to see what is baked into that fair value gap? The narrative leans heavily on rising profitability, steady top line expansion, and a future earnings multiple that assumes investors stay willing to pay up for those cash flows.
Result: Fair Value of $104.29 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to weigh risks such as shifting utility regulation in California and Texas, as well as global LNG demand swings that could pressure margins and cash flows.
Find out about the key risks to this Sempra narrative.
Another View: Multiples Paint A Tougher Picture
While the narrative fair value points to a 12.2% undervaluation, Sempra trades on a P/E of 31x, compared with 18.5x for the global Integrated Utilities industry and 19.4x for peers, and a fair ratio of 28.7x. That richer multiple raises the question: is the discount already used up in the price?
Story Continues
For a closer look at how those valuation ratios stack up in practice, and what they could mean if the market shifts toward the fair ratio, See what the numbers say about this price — find out in our valuation breakdown.NYSE:SRE P/E Ratio as at May 2026
Next Steps
With mixed signals on valuation and sentiment, this is the moment to review the full picture yourself and move quickly while opinions are still split, starting with the 1 key reward and 3 important warning signs.
Looking for more investment ideas?
If Sempra has your attention, do not stop here. Broaden your watchlist and compare it with other stocks that stand out on different fundamentals.
Target dependable cash generators by scanning for companies with resilient balance sheets and fundamentals via the solid balance sheet and fundamentals stocks screener (44 results). Hunt for potential bargains by checking out the 51 high quality undervalued stocks that already pass strict quality and financial strength filters. Prioritize income potential by reviewing the 12 dividend fortresses that combine 5%+ yields with an emphasis on stability.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SRE.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments
- 12 out of 14 utility stocks deliver EPS wins this week: Earnings Scorecard
May 9, 2026
[Electricity pylons at sunset]
James O'Neil
Out of the 14 S&P 500 utilities companies that reported their quarterly results this week, 12 surpassed earnings expectations. On the revenue front, 11 companies beat Wall Street forecasts, while three missed.
The State Street Utilities Select Sector SPDR ETF (XLU [https://seekingalpha.com/symbol/XLU]) rose 4.8% year-to-date, compared to the S&P 500’s (SP500 [https://seekingalpha.com/symbol/SP500#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) 8% gain.
BELOW ARE THE LATEST QUARTERLY REPORTS FROM FIVE INDUSTRY GIANTS:
* AEP (AEP [https://seekingalpha.com/symbol/AEP]) outlined [https://seekingalpha.com/news/4586479-aep-outlines-78b-capital-plan-and-targets-7-percentminus-9-percent-earnings-growth-through]$78B capital plan and targets 7%-9% earnings growth through 2030 while reaffirming $6.15-$6.45 EPS for 2026.
* Duke Energy (DUK [https://seekingalpha.com/symbol/DUK]) reaffirmd [https://seekingalpha.com/news/4585867-duke-energy-reaffirms-6_55-6_80-2026-eps-range-targets-top-half-5-percentminus-7-percent]$6.55-$6.80 2026 EPS range, targets top-half 5%-7% growth from 2028 as ESAs reach 7.6 GW.
* Sempra (SRE [https://seekingalpha.com/symbol/SRE]), meanwhile, missed [https://seekingalpha.com/news/4588918-sempra-affirms-2026-adjusted-eps-4_80-5_30-while-targeting-si-partners-close-in-q2-q3-2026]top-line estimates. It also affirmed the full year 2026 adjusted EPS guidance range of $4.80 to $5.30 and the 2027 EPS guidance range of $5.10 to $5.70.
* NiSource (NI [https://seekingalpha.com/symbol/NI]) signaled a [https://seekingalpha.com/news/4587885-nisource-signals-9-percent-to-10-percent-eps-cagr-through-2033-as-it-raises-2033-genco-eps-to]9% to 10% EPS CAGR through 2033 as it raised 2033 GenCo EPS to $0.40-$0.60. NiSource also reaffirmed its 2026 non‑GAAP consolidated adjusted EPS guidance of $2.02-$2.07.
* Eversource (ES [https://seekingalpha.com/symbol/ES]) outlined [https://seekingalpha.com/news/4589363-eversource-outlines-revised-2026-non-gaap-eps-of-4_57-4_72-amid-ferc-roe-reset-to-9_57]revised 2026 non-GAAP EPS of $4.57-$4.72 amid FERC ROE reset to 9.57%. Eversource expects [https://seekingalpha.com/news/4587557-eversource-energy-gaap-eps-of-1_61-beats-by-0_05-revenue-of-4_5b-beats-by-170m]annual earnings growth towards the upper half of its long-term guidance by 2028.
MORE ON STATE STREET UTILITIES SELECT SECTOR SPDR ETF
* Finding The Opportunities After The Selloff And End Of The War [https://seekingalpha.com/article/4887934-finding-opportunities-after-selloff-and-end-of-war]
* GUT Is Good, But XLU Is Better [https://seekingalpha.com/article/4886712-gut-is-good-but-xlu-is-better]
* XLU: Why It Is A Good Time To Take Profits [https://seekingalpha.com/article/4880205-xlu-why-it-is-a-good-time-to-take-profits]
* Data center surge pushes PJM to rethink power market structure [https://seekingalpha.com/news/4587179-data-center-surge-pushes-pjm-to-rethink-power-market-structure]
* Weekly ETFs: Eight of 11 sectors record outflows; financial sector leads inflows [https://seekingalpha.com/news/4585699-weekly-etfs-eight-of-11-sectors-record-outflows-financial-sector-leads-inflows]
- Jim Cramer Explains How Data Center Demand Boosts Sempra and Other Utility Stocks
May 8, 2026
Sempra (NYSE:SRE) was one of the stocks on Jim Cramer’s radar as he highlighted AI winners to buy for 2026. Cramer mentioned the catalyst for stocks like Sempra, as he said:
I’m going to walk you through the wide range of winners, so you know what… I’m talking about. You know, look, we know the whole compute complex needs power, right? That’s why you have stocks like American Market Electric Power, Sempra, Vista, Constellation. They are with, they’re going higher, even as interest rates aren’t going up. Normally, the interest rates going higher is a bad thing for utilities. The linkage is broken because of the demand for power from the data centers.
eliza-diamond-Iw2oRD2NP2w-unsplash
Sempra (NYSE:SRE) develops and operates energy infrastructure, providing natural gas and electric services through regulated utilities and transmission networks. Cramer highlighted the company’s stock performance during the March 18 episode, as he commented:
The last 12 months have been phenomenal for a lot of utilities. Take Sempra, which owns gas and electric utilities in Texas and California. Now, this company’s long been one of my favorite growth utilities. Remember, growth utility. But a year ago, this stock had a bit of a beat down by tariff worries, LA fires, even though the fires, by the way, had zero impact on their business.
That turned out to be a fantastic buying opportunity, as Sempra’s now run from $61 and change at its lows last April all the way to $95. We’re talking about a 50% gain plus in less than a year. Not bad for a utility. Now, Sempra’s made some big changes last fall. They announced they were selling a majority stake in their infrastructure business. That’s Mexican gas pipelines and liquefied natural gas export facilities. The plan now is to focus on their core utility business.
While we acknowledge the potential of SRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. Follow Insider Monkey on Google News.
View Comments
- Clearway Energy Q1 Loss Wider Than Estimates, Revenues Increase Y/Y
May 8, 2026
Clearway Energy Inc. CWEN reported a first-quarter 2026 loss of $1.35 per share, wider than the Zacks Consensus Estimate of a loss of 45 cents. However, in the year-ago quarter, the company reported earnings of 3 cents.
CWEN’s Revenues
Total revenues of $354 million surpassed the Zacks Consensus Estimate of $331 million by 6.8%. The top line increased 18.8% from the year-ago quarter’s figure of $298 million.
Clearway Energy, Inc. Price, Consensus and EPS Surprise
Clearway Energy, Inc. price-consensus-eps-surprise-chart | Clearway Energy, Inc. Quote
Highlights of CWEN’s Earnings Release
Adjusted EBITDA for the quarter totaled $257 million compared with $252 million in the year-ago period.
Total operating costs and expenses for the quarter were $334 million, up 12.1% from the year-ago figure of $298 million. This was primarily driven by higher operating costs, increased depreciation, amortization and accretion expenses, along with a rise in general and administrative costs, and higher transaction and integration expenses.
The company generated operating income of $20 million in the first quarter of 2026.
CWEN incurred interest expenses of $101 million compared with $116 million in the year-ago quarter.
On March 30, 2026, Clearway Energy, through its indirect subsidiaries, acquired Cardinal Portfolio for total cash consideration of $324 million.
Developments After First-Quarter Close
On May 1, 2026, the Honeycomb Portfolio battery energy storage system (BESS) facilities in Utah, comprising four BESS projects with a combined capacity of 320 megawatts, reached substantial completion. The portfolio is backed by 20-year tolling agreements with an investment-grade utility. Clearway Energy’s total capital investment in the projects was $97 million.
CWEN’s Financial Position
Clearway Energy had cash and cash equivalents of $325 million as of March 31, 2026 compared with $231 million as of Dec. 31, 2025.
Total liquidity as of March 31, 2026 was $1.23 billion compared with $1.06 billion recorded as of Dec. 31, 2025.
Long-term debt as of March 31, 2026 amounted to $8.5 billion compared with $7.9 billion as of Dec. 31, 2025.
Net cash provided by operating activities in the first three months of 2026 was $401 million compared with $95 million in the year-ago period.
CWEN’s Guidance
Clearway Energy projects 2026 cash available for distribution (CAFD) to lie between $470 million and $510 million.
The company projects CAFD to lie in the range of $2.90-$3.10 per share for the period, reiterating 2030.
CWEN expects 2026 Adjusted EBITDA to lie in the range of $1.441-$1.481 billion.
Cash from operating activities for 2026 is expected to be in the range of $1.022-$1.062 billion.
Story Continues
CWEN’s Zacks Rank
CWEN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Ormat Technologies Inc. ORA reported first-quarter 2026 adjusted earnings per share (EPS) of $1.30, which beat the Zacks Consensus Estimate of 92 cents by 41.3%. The bottom line also increased 91.2% from 68 cents in the year-ago quarter.
ORA generated revenues of $403.9 million, which topped the Zacks Consensus Estimate of $349 million by 15.6%. The top line also increased 75.8% year over year.
Sempra SRE reported first-quarter 2026 adjusted EPS of $1.51, in line with the Zacks Consensus Estimate. The bottom line increased 4.9% from the year-ago quarter’s figure of $1.44.
Revenues of $3.66 billion missed the Zacks Consensus Estimate of $4.15 billion by 11.8%. The top line decreased 3.9% from $3.8 billion in the year-ago quarter.
Talen Energy Corporation TLN reported first-quarter 2026 adjusted earnings of $5.55 per share, which beat the Zacks Consensus Estimate of $5.28 by 5%. The bottom line also increased a massive 576.8% from 82 cents in the year-ago quarter.
TLN generated revenues of $1.13 billion, which surpassed the Zacks Consensus Estimate of $1.02 billion by 11%. The top line also improved 189.5% from the year-ago reported figure of $0.39 billion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sempra (SRE) : Free Stock Analysis Report
Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report
Talen Energy Corporation (TLN) : Free Stock Analysis Report
Clearway Energy, Inc. (CWEN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Sempra Q1 2026 Earnings Call Summary
May 7, 2026
Sempra Q1 2026 Earnings Call Summary - Moby
Strategic Narrative and Operational Drivers
Management is actively simplifying Sempra's business model to concentrate future investments on utility operations, projecting an 11% annual rate base growth through 2030. The Oncor base rate review settlement is a primary performance driver, providing a higher authorized equity layer of 43.5% and an ROE of 9.75% to better align rates with current cost structures. Texas is characterized as 'ground zero' for an infrastructure 'arms race' driven by AI and data center demand, leading to a record $65 billion capital plan with a majority of rate base expected in Texas by 2030. Operational modernization at Oncor includes diversifying the supply chain and securing labor and materials through 2028 to mitigate execution risks during a period of elevated capital deployment. Sempra Infrastructure is transitioning from a capital source to a contributor of near-term revenue, with first LNG production at ECA Phase 1 expected next month and substantial completion targeted for this summer. The effective use of natural gas storage during winter storm Fern saved customers approximately $120 million, which management cites as evidence of the strategic value of gas infrastructure in supporting affordability.
Strategic Outlook and Guidance Assumptions
Full-year 2026 adjusted EPS guidance is affirmed at $4.8 to $5.3, supported by a long-term projected EPS growth rate of 7% to 9%. Management identifies approximately $9 billion in incremental capital opportunities beyond the base plan, primarily concentrated in Texas and driven by large-load customer growth. The closing of the SI Partners transaction in 2026 is a critical milestone intended to facilitate parent debt paydown and the deconsolidation of Sempra Infrastructure to improve credit profiles. SDG&E's TO6 settlement at FERC, if approved in the second half of 2026, would increase authorized base ROE to 10.28% retroactive to June 1, 2025. The company expects to close the Ecogas sale in the second or third quarter of 2026 as part of its ongoing capital recycling and business simplification program.
Risk Factors and Structural Changes
Regulatory lag at Oncor is being addressed through the inaugural UTM filing to incorporate $4.4 billion of assets into rates, with future filings permitted every 365 days. Credit rating thresholds are expected to improve approximately six months post-closing of the SI Partners deal, though Moody's is also monitoring specific construction milestones. California wildfire liability remains a focus, with management expressing 'reasonable confidence' in legislative action this session following the CEA's natural catastrophe resiliency study. Supply chain constraints are being managed by securing long-term contracts for materials and leveraging the attractiveness of long-term work pipelines to secure contract labor.
Story Continues
Q&A Highlights
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Data center load growth and capital expenditure timing in Texas
Oncor submitted 102.22 gigawatts of large load in its 2026 Regional Transmission Plan filing, meeting all current substantiated load requirements. Management views this load growth as 'incremental to the incremental,' likely driving capital spending well into the middle of the next decade beyond the current $10 billion upside bucket.
Status and remaining hurdles for the SI Partners transaction
The transaction has received FERC, HSR, and antitrust approvals in Mexico and Korea. Remaining steps include obtaining third-party consents from Cameron partners and Japanese export credit agencies, with closing still targeted for Q2 or Q3 2026.
Strategic role of LNG in the long-term portfolio
While bullish on U.S. LNG market share gains due to global energy stress, Sempra intends to reduce its capital allocation to this segment to focus on utility growth. The company is actively negotiating the remaining offtake for Port Arthur Phase 2, seeking pricing that bolsters infrastructure returns while shifting toward a lower-risk utility profile.
One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.
View Comments
