Todays Agenda Strategy Sustainable Business Practices U.S. Utility Infrastructure SDG&E Oncor SoCalGas North American Infrastructure Sempra LNG Sempra Mexico Financial Q&A Session 3
2020 Investor Day Strategy Jeff Martin, Chairman and Chief Executive Officer March 24, 2020
Health + Safety Update Health and safety are our number one priority; we are always striving to protect our employees, customers and the communities we serve Activated Executive Crisis Management (ECM) Task Force to Monitoring…
Executive Summary Were on a mission to become North Americas premier energy infrastructure company Focusing squarely on the most attractive markets in North Continuing to build liquidity and balance sheet strength to 1 America 4…
Building North Americas Premier Energy Infrastructure Company Sempra has grown significantly in recent years by focusing its strategy on North America and diversifying its U.S. rate base into the high-growth Texas market 2017 2018 2019…
Attractively Positioned in North Americas Best Markets (1),(2) Sempra Markets Ranked 3rd in Global Economic Activity Sempra Markets 2018 Gross Domestic Product(1) We prioritize North American markets with strong fundamentals…
Sempra Has Developed a Tier-1 Position in Key Markets that are Leading the North American Energy Transition Sempra Markets Lead North American Energy Transition Our investments and operations enable the energy transition, while…
Focused on Lower-Risk, Higher-Value Infrastructure In addition to focusing on the best markets, we are investing in the portion of the energy value chain that should provide the most attractive risk-adjusted returns Energy Value…
High Growth Infrastructure Platforms Sempra has a tier-1 leadership position in North Americas leading markets with unique visibility into long-term growth Infrastructure Platforms Investing 32B largest 5-year capital plan in our…
Sustainable Business Practices Sempras vision, mission and values reflect a strong alignment with ESG goals and our focus on People Priorities Culture Environmental Stewardship Safety and Stakeholders Responsible Governance…
High-Performance Culture We are committed to our high-performance culture that embraces innovation and change with a view toward creating value for all stakeholders People Priorities Culture Attract Campus recruiting programs Safety…
2020 Investor Day Sustainable Business Practices Lisa Alexander, Vice President of Corporate Communications and Sustainability March 24, 2020
Sustainable Business Practices Sempras Position is Strong 3 Environmental Stewardship Representative recognition includes: Americas 100 Most Sustainable Companies in 2020 (Barrons) 2019 Best ESG Companies (Investors Business Daily)…
Sustainable Business Practices Environmental Stewardship Sempra is helping lead the energy transition, including energy access, in every market we operate Californiahelping to decarbonize Californias energy system Texasconnecting…
Sustainable Business Practices Safety is Foundational Sempra utilizes technology, leadership and innovation to enhance safety and advance meaningful stakeholder engagement Representative Programs: SDG&E Fire Safe 3.0 Next generation of…
Sustainable Business Practices Responsible Governance Sempras resilient operations and sustainable value creation starts with responsible governance Diverse, independent board of directors The Boards Environmental, Health, Safety…
Sustainable Business Practices Long-Term Focus Sempras approach to risk management and sustainability will help continue to drive shareholder value Key Takeaways + Future Goals 1 Outperform sector on key ratings + indices A A-…
2020 Investor Day SDG&E Kevin Sagara, Chairman and Chief Executive Officer March 24, 2020
SDG&E Company Overview and Strategic Mission Our mission is to improve lives and communities by building the cleanest, safest and most reliable energy infrastructure company in America Service Territory Highlights Safety, Technology…
SDG&E 2019 Accomplishments SDG&E is one of the nations most effective and efficient investor-owned utilities Governor Gavin Newsom(1) Constructive Operating Environment Advancing SDG&Es Mission AB 1054 Establishes prudency standard…
SDG&E Macro Environment External environment continues to provide SDG&E an opportunity to deploy capital across its service territory Safety + Operational Excellence Decarbonization Customer Choice Safety and operational excellence…
SDG&E Capital Plan Drives Projected Rate Base Growth Over 80% of investments to enhance safety, Largest 5-year capital plan in SDG&Es history reliability and mitigate wildfire risk 2020 2024 Capital Plan (B)(1) Rate Base (B)(3) 8.9…
SDG&E Project Spotlight Fire Safety 2020+ Fire Safe Weather Stations Deployed the most highly concentrated network of weather stations and high definition cameras in the 3.0 country Cameras Installed 100+ high definition cameras…
SDG&E Project Spotlight Fire Safety 2020+ Fire Safe Modeling Tools Created sophisticated weather + fire models based on years of granular data 3.0 Alerts Developed daily alerts for employees, fire agencies and local responders that…
SDG&E Project Spotlight Fire Safety 2020+ Fire Science + Innovation Lab Partner with academia, government and Fire Safe public safety professionals 3.0 Artificial Intelligence Utilize AI-based predictive models to increase accuracy…
SDG&E Project Spotlight Wildfire Mitigation Innovations 100 miles of Infrastructure covered conductor Strategy deployed in HFTD(2) Highest risk Falling conductor 400 miles of Enhanced Private 5G protection inspections +…
SDG&E Sustainability Spotlight Californias aggressive GHG and RPS targets drive future investments in SDG&Es service territory GHG Policy Targets(1) RPS Program(3) GHG Emissions(5) 500 GHG emissions 100% Commercial 5% equal to 1990…
SDG&E Key Takeaways Key Takeaways Support Sempras mission to be North Americas premier 8.9B 9% 1 energy infrastructure company with the goal to deliver Rate Base CAGR(2) clean, safe and reliable energy to 3.7 million consumers…
Appendix
SDG&E 2020 2024 Capital Plan (1) 2020-2024 Descriptions 8.9B Capital Plan (B) Total FERC Base, including: Further modernizing electric transmission lines + substation infrastructure 1.6 Fire hardening to support public safety…
SDG&E Continued Customer Focus Relative to peers, SDG&E has some of the lowest bills in the U.S., driven by a temperate climate and a focus on cost management Average Residential Electric Bill(1) Average Residential Gas Bill(2) 140…
SDG&E Key Operating Metrics + Company Statistics Key Operating Metrics Employee Safety 1.73 (1) Electric Reliability 71.13 min (2) National Community Safety Award (ReliabilityOne ) TM Recent Awards TM 14th straight year…
SDG&E Financial Metrics Financial Metrics 2019 Earnings 767M 2019 Achieved Return on Common Equity 11.7% Moodys: A2 Credit Ratings (senior-secured) Standard & Poors: A Fitch: A (1) (1) Authorized Capital Structure: Capital…
2020 Investor Day Oncor Electric Delivery Allen Nye, Chief Executive Officer March 24, 2020
Oncor Company Overview and Strategic Mission Our mission is to be the premier electric delivery company in the United States Service Territory Highlights Safe, Reliable and Affordable Service 1 Top quartile in lost-time injury…
Oncor 2019 Accomplishments Oncor had several significant accomplishments in 2019 Substantial T+D Investment Invested 2.1B in transmission and distribution capital Successful InfraREIT Acquisition Integrated InfraREIT adding 1,575…
Oncor Macro Environment The Oncor service territory offers one of the most attractive macro environments in North America Strong Demographic Growth Leading System Growth Influx of Renewable Integration Dallas Ft. Worth is the…
Oncor Sustainable Growth A diverse and vibrant service territory (1) DFW Metroplex McKinney Total premise count leaders Multi-family leaders Tyler Single-family leaders Midland Odessa Commercial and industry leaders…
Oncor Capital Plan Drives Projected Rate Base Growth Building a safer, smarter and more reliable electric grid for Texas 2020 2024 Capital Plan (B)(1),(2) Rate Base (B)( 3 ) 2x 2017 11.9 Billion Rate Base 0.8B 7% 4.2B 35% 6.9B…
Oncor Delivering Value, Controlling Costs Key Operating Metrics(1) Top quartile in lost-time injury rates; Days Away Restricted Transferred (DART) trending toward top quartile by YE-2020 Trending toward top quartile reliability by…
Oncor Project Spotlight Distribution System Growth Key community investments that support further economic development in the region DFW Airport Load growth potential 150 MW+ Total project cost: 100M 140M 2019 investment: 8M…
Oncor Project Spotlight Far West Texas Transmission Update Transmission infrastructure to support growing renewables + oil and gas production in West Texas Transmission Update 2019 2021 Over 700M of greenfield transmission projects to…
Oncor Leveraging Technology to Improve Performance Using artificial intelligence to streamline Vegetation Singular tree Management (VM) operations Vegetation Management Optimization Zone Combining advanced analytics A.I with…
Oncor Key Takeaways Key Takeaways Serving some of the highest growth areas in the U.S., 1 2x 8% highlighted by 2% premise growth (2x the national average)(1) National average Rate Base CAGR Largest 5-year capital plan in companys…
Appendix
Oncor 2020 2024 Capital Plan (1) 10.6 11.9B 2020 2024 Descriptions (1) Capex Plan (B) Transmission Expansion 5.9 Transmission Maintenance 1.0 Distribution Expansion 2.1 Distribution Maintenance 2.1 Information…
Oncor Incremental Capital Investments (1) Potential investments incremental to 2020 2024 capital plan(2) Potential Incremental Descriptions Investment (M)(3) Transmission Expansion Greenfield and brownfield projects supporting…
2020 Investor Day SoCalGas Bret Lane, Chairman and Chief Executive Officer Mia DeMontigny, Vice President, Controller and Chief Financial Officer March 24, 2020
SoCalGas Company Overview and Strategic Mission Our vision is to be the cleanest gas utility in North America, delivering affordable and increasingly renewable energy to our customers Service Territory Highlights Technology,…
SoCalGas 2019 Accomplishments A supportive regulatory environment in 2019 further sets SoCalGas up for a year of execution in 2020 2019 General Rate Case Supportive of capital-intensive investments to enhance safety and reliability…
SoCalGas Macro Environment Natural gas will play a key role in supporting the transition and future of energy in California Safety + Operational Excellence Decarbonization Customer Trends Execute leading practices on In California,…
SoCalGas Capital Plan Drives Projected Rate Base Growth Regulatory environment supportive of SoCalGas long-term goal of building the cleanest, safest and most reliable energy infrastructure in North America 2020 2024 Capital Plan…
SoCalGas Sustainability Spotlight 21st Century Energy System (1) Aligning with California policies and energy goals to deliver sustainable, cleaner energy over time 2030 2050 (1) Renewable GHG Emission Distributed Liquified…
SoCalGas Project Spotlight Gas Distribution Safety + Sustainability Further enhancing safety and reducing GHG emissions on gas distribution system through continuous improvement programs Distribution Integrity Management Program…
SoCalGas Key Takeaways Key Takeaways 1 SoCalGas is the largest gas distribution company in the U.S.(5) 9B 12% Manage safety, integrity and reliability through proactive, risk- 5-Year Capital Plan(1) Rate Base CAGR (2) 2 based…
Appendix
SoCalGas Macro Drivers CA Economy Highlights Southern CA residents use gas to heat their home and water; these Southern CA has the largest manufacturing base in the U.S. customers depend on natural gas for its affordability and…
SoCalGas Macro Environment Natural gas emissions account for 25% of CA GHG emissions; SoCalGas is working to reduce emissions in all sectors, even those it does not directly impact, such as Agriculture and Transportation Sources of…
SoCalGas Sustainability Spotlight Green Hydrogen Scalable energy storage solution for low-carbon power grid Green Hydrogen supports the transition to low-carbon energy Rising Curtailment of Renewable Power(3) Energy storage is…
SoCalGas California Gas System GHG Emissions Reduction CPUC Long-Term Gas System Planning OIR(1) Proposed Focused on gas system safety and reliability enhancements OIR Phases Decision Expected Acknowledges that the existing natural…
SoCalGas Key Operating + Financial Metrics Operating Metrics Financial Metrics Largest gas local distribution company (LDC) in the U.S. with 2019 Earnings 641M Overview 22 million consumers(1) 2019 Achieved Transmission: 3,000 miles…
2020 Investor Day Sempra LNG Justin Bird, President Lisa Glatch, Chief Operating Officer March 24, 2020
Sempra LNG Enabling the Energy Transition Our investments and operations are enabling the energy transition while providing long-term, predictable cash flows Attractive North American LNG Platform(1) Highlights 2,400 Tcf 1…
Sempra LNG Macro Environment Sempra LNGs platform is well-positioned to address this growing market Near-Term Headwinds Long-Term Fundamentals Sempra LNG Competitive Advantages Uncertainty in current market Robust LNG demand growth…
Sempra LNG Strong Progress on Phase 1 Projects (1) 21 of 24 Mtpa of Phase 1 projects with long-term offtake arrangements, including Cameron Phase 1(2) Project Updates Generating long-term, predictable earnings Trains 1 + 2 in…
Sempra LNG Disciplined Value Creation Rigorous Project Analysis Commodity Price Risk Mitigated Value Creation Gas Price Portfolio of projects will only be pursued if expected Allocated to the customer as either the procurer of gas…
Sempra LNG Cameron LNG Phase 1: Project Update (1) Finishing Cameron LNG Phase 1, with a focus on execution and continuous improvement Trains 1 and 2 in service; Train 3 COD on track 47 cargoes have been shipped and delivered…
Sempra LNG Cameron LNG Phase 1: Financial Update Ongoing improvement of project economics for partners + Sempra shareholders Projected Cash Distributions to Sempra(1) Long-term earnings visibility M 800 Updated earnings range from…
Sempra LNG ECA and Port Arthur: Near-Term Opportunities (1) ECA and Port Arthur are advantaged project opportunities with attractive geographic locations, significant expansion opportunities, experienced EPC providers and tier-1…
Sempra LNG Value Proposition Key Takeaways A network of LNG liquefaction facilities in the Gulf Coast 1 and West Coast enabling customers to have access to 21 of 24 Mtpa 400M 450M Pacific and Atlantic markets Phase 1 Projects with…
2020 Investor Day IEnova Tania Ortiz Mena, Chief Executive Officer March 24, 2020
IEnova Company Overview and Macro Environment IEnovas Footprint in Mexico Mexican Economy 11th most populated country(1) 14th largest economy (7th largest by 2050)(1),(2) Mexico is the United States top trading partner(3) 90% of…
IEnova Sustainable Business Practices IEnova is a leader in sustainable practices and Sustainable Business Model has a resilient business model Strategic infrastructure projects Enabling access to reliable and affordable energy Asset…
IEnova 2019 Accomplishments Revenues by Customer 2019 Accomplishments Met our financial and operational goals Placed Sur de Texas Tuxpan Marine pipeline into service Pemex Placed IEnovas first three solar projects, Pima, Rumorosa…
IEnova Contributing to Mexicos Development Natural gas: enabling Mexicos access to reliable and affordable energy IEnovas Natural Gas Infrastructure Natural Gas: An Engine for Mexicos Growth Mexico is among the worlds largest consumers…
IEnova Contributing to Mexicos Development Power: supporting Mexicos transition to clean energy IEnovas Renewable Power Generation Infrastructure(1) Renewable Power Generation ESJ I & II Wind Farms Rumorosa Solar Border Solar Mexico…
IEnova Contributing to Mexicos Development Storage: increasing Mexicos energy security IEnovas Refined Products Storage Projects(1) Refined Products Storage Infrastructure Baja Refinados Mexico is among the worlds largest consumers of…
IEnova Delivering Energy With Purpose Key Sustainability Drivers Leader in Corporate Sustainability Diversity and 1st energy company to be listed on the Mexican Stock a inclusion Exchange Sustainability Index Included in the…
IEnova 2020 Capital Plan IEnova has a strong track record of growing its 2020 Capital Plan business since its IPO 12.0 Total Assets and Cumulative Dividends( 1 ) 3.0 (U.S. B) 2020 9.9 10.0 9.2 2.5 Capital Plan 8.6 (U.S. M)(3) 8.0…
IEnova Key Takeaways Key Takeaways Leading Over 1B 1 Mexico is an attractive market as significant investment in energy infrastructure requires public and private participation Private Energy Projected Adjusted Infrastructure…
2020 Investor Day Financial Trevor Mihalik, Executive Vice President and Chief Financial Officer March 24, 2020
Financial Goals + Priorities* Disciplined capital allocation drives utility-focused earnings visibility and growth Strengths and Goals 2020 Priorities Launch 32B 5-year capital program focused on 1 safety, reliability and growth(4)…
Financial Disciplined Capital Allocation Disciplined approach to capital allocation supports a strong balance sheet along with earnings and dividend growth Capital Allocation Priorities Results Allocate capital first to safety and…
Financial Composite Strength of Balance Sheet 2019 FFO-to-Debt(1),(2) Projected HoldCo Debt-to-Total Debt(5) FFO-to-Debt(3) 26% 23% 20% 39% 17% 36% 16% 26% Oncor IEnova (4) SDG&E SoCalGas Cameron LNG (6) A A2 A A+ Aa2 AA- A A3…
Financial Utility-Driven Capital Plan 2020 2024 Base Capital Plan(1) U.S. Utility Capital has Driven 40% Increase in Total 5-Year Capital Plan Sempra Mexico Sempra 2.0B(2) U.S. Utilities Other 32B(1) LNG 2.4B(3) 25B(7) 23B(5),(6)…
Financial Projected Rate Base Growth Rate base expected to be over 51B in 2024, driven by core investments in safety and reliability(1) U.S. Utility Rate Base (B) 51.4 48.7 45.7 42.4 38.3 22.4 21.3 33.6 20.0 18.7 17.2 15.7…
Financial Better Earnings Quality 2021 By focusing on North America and executing a disciplined capital rotation program, EPS Sempra has improved the quality of EPS, while maintaining 2020 adjusted guidance range 7.50 8.10 2020 2020…
Financial Better Earnings Quality By focusing our businesses on the most attractive markets in North America and executing a disciplined capital rotation program, we expect to deliver strong adjusted EPS growth(1) 2018(2) 2021(3)…
Financial High Earnings Visibility Adjusted(1) Adjusted Guidance(1) Guidance Adjusted(1) 2018(2) 2019(3) 2020(4) 2021 2018-2021 (Dollars, except EPS, and shares in millions) Low High Low High CAGR(5) SDG&E 669 767 710 770 760 820…
Financial Sources and Uses 2020 2024 Financial Plan (B) Highlights 50 4.8 Strong, visible cash flows from operations providing 4.7(1) (1) 16.3 significant support for the 5-year financial plan 40 4.8 4.7 16.3(3) 4.8(2) 4.8 Sale…
Financial Liquidity Position (1) Robust liquidity strategy provides maximum flexibility and reduces reliance on capital markets to fund financial plan 13.2B Liquidity Strength 4.7B expected proceeds from South (3) 4.7B…
Financial LNG Infrastructure Analysis Rigorous project and financial analysis to help ensure all investments meet or exceed Sempras required infrastructure returns Value Creation Portfolio of projects will only be pursued if expected…
Financial Compelling Value Proposition (1) Top-tier projected adjusted EPS growth and DPS growth and attractive current valuation(2),(3) 12% EPS Growth(2) 8% DPS Growth(3) 12.8x Projected 2021 P/E(4) (5) Peer Median 14.5x (5)…
Appendix
Financial 2020 2021 Key Plan Assumptions Segment Key Assumptions(1) Key Market Assumptions 2020 2021 (2) Revenue requirement attrition of 6.7% in 2020 and 4.8% for 2021 SoCal Border Forward Gas Curve (/MMBtu) FERC ROE = 10.6%, CPUC…
2020 Rules of Thumb Key Commodity and Current Plan Approximate 2020 Forecasted Impact to Change in Assumption Market Forecasts Assumption Earnings Sensitivity Natural Gas Prices(1) 2.48 1.00 increase / decrease 18M / (18)M in…
Five-Year Capital Plan 2019A(1) 2020E 2021E 2022E-2024E Averages (Dollars in millions) Low High Low High Low High SDG&E 1,550 1,850 2,000 2,150 2,350 1,500 1,600 SoCalGas 1,450 1,850 2,000 1,800 2,000 1,600 1,800 Sempra Texas…
Financial Credit Ratings (1) Business S&P Rating Moodys Rating Fitch Rating Sempra Energy BBB+ Baa1 BBB+ SDG&E A A2 A SoCalGas A+ Aa2 AA- Oncor A+ A2 A IEnova BBB Baa1 BBB+ 195% CA Utilities Cameron LNG JV A A3 A-…
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