Company Reports

We are maintaining our $79 per share fair value estimate after Sempra Energy announced first quarter operating earnings of $1.34 per share, down from $1.46 in the same year ago period. Management reaffirmed 2024 earnings per share guidance of $4.60 to $4.90 and 2025 earnings guidance of $4.90 to $5.25 per share. Both are in line with our estimate. The company's 6%-8% long-term annual earnings growth guidance range is in line with our 7.5% estimate.

We are reaffirming our fair value estimates and economic moat ratings for US utilities after executives at the Electric Reliability Council of Texas on Tuesday forecast an extraordinary jump in electricity demand in the state during the next five years.

We are maintaining our $79 per share fair value estimate after Sempra Energy announced full-year operating earnings of $4.61 per share, above management's earnings guidance range of $4.30 to $4.60 per share. Management narrowed 2024 earnings per share guidance to $4.60 to $4.90, a slight increase from the prior $4.55 to $4.90 range. Our estimate remains toward the high end of the range. The company's 6%-8% long-term annual earnings growth guidance range is in line with our 7% estimate.

Sempra Energy's investment opportunities at its regulated utilities in California and Texas will remain its primary growth driver.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

We are maintaining our $77 per share fair value estimate after Sempra Energy announced third-quarter operating earnings of $1.08 per share compared with $0.98 in the same year-ago period. Management reaffirmed its 2023 earnings guidance range of $4.30 to $4.60 per share, with expectations to be at the high end of the range. This is consistent with our estimates.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

Sempra Energy's investment opportunities at its regulated utilities in California and Texas will remain the primary growth driver.

Sempra Energy's investment opportunities at its regulated utilities in California and Texas will remain the primary growth driver.

We are maintaining our $149 per share fair value estimate for Sempra Energy after the company reported second-quarter operating earnings of $1.88 per share compared with $1.98 in the same year-ago period. Management reaffirmed its 2023 EPS guidance range of $8.60 to $9.20 and its 2024 EPS guidance of $9.10 to $9.80, both in line with our estimate. The company reaffirmed its long-term earnings growth guidance range of 6% to 8%, in line with our 7% estimate.

We are maintaining our $149 fair value estimate for Sempra Energy after the company reported first-quarter operating earnings per share of $2.92 compared with $2.91 in the year-ago period. Management reaffirmed its 2023 EPS guidance of $8.60-$9.20, consistent with our expectations.

Sempra Energy's investment opportunities at its regulated utilities in California and Texas will remain the primary growth driver.

We are maintaining our $146 per share fair value estimate after Sempra Energy reported full-year 2022 operating earnings of $9.21 compared with $8.43 in 2021.

Sempra Energy's investment opportunities at its regulated utilities in California and Texas will remain the primary growth driver.

We are maintaining our $146 per share fair value estimate for Sempra Energy after it reported third-quarter earnings of $1.97 per share, up from $1.70 in the same year-ago period. Management raised its full-year EPS guidance to $8.70-$9.00 from $8.10-$8.70. We plan to increase our full-year expectation, but the adjustment will not have a material effect on our fair value. Management reaffirmed its 2023 earnings guidance range of $8.60-$9.20. We expect the company to achieve at the high end of the range. The company reaffirmed its long-term earnings guidance range of 6% to 8%. Our narrow moat and stable moat trend ratings remain unchanged.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.

Our initial analysis of the U.S. Inflation Reduction Act that President Joe Biden plans to sign on Aug. 16 has led us to reaffirm or make slight increases to our fair value estimates for U.S. utilities. We are reaffirming our moat and moat trend ratings.

Sempra Energy's investment opportunities at its regulated utilities in California and Texas will remain the primary growth driver. California's regulatory environment has remained constructive for Sempra, as its emphasis on distribution-related safety and reliability infrastructure upgrades aligns well with the state's regulatory priorities.

We are maintaining our $144 per share fair value estimate after Sempra Energy reported second-quarter earnings of $1.98 compared with $1.63 in the same year-ago period. Management reaffirmed both its 2022 EPS guidance range of $8.10 to $8.70 guiding toward the upper half and its 2023 EPS guidance range of $8.60 to $9.20. The company reaffirmed its long-term earnings growth guidance range of 6% to 8%.

We are reaffirming our fair value estimates and moat ratings for our U.S. utility coverage after the U.S. Bureau of Labor Statistics reported 9.1% core inflation on July 14. We continue consider inflation to be the largest threat to utilities' long-term returns and ability to pay robust, growing dividends.