Sempra Energy (NYSE:SRE) Q2 2020 Earnings Conference Call - Final Transcript

Jul 23, 2020 • 11:00 am ET

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Sempra Energy (NYSE:SRE) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Sempra Energy Second Quarter Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Faisel Khan. Please go ahead.

Executive
Faisel H. Khan

Good morning. And welcome to Sempra Energy's second quarter 2020 earnings call. A live webcast of this teleconference and slide presentation is available on our website under the Investor section. Several members of our management team are on the line with us today, including Jeff Martin, Chairman and Chief Executive Officer; Trevor Mihalik, Executive Vice President and Chief Financial Officer; Justin Bird, Chief Executive Officer of Sempra LNG; Allen Nye, Chief Executive Officer of Oncor; Kevin Sagara, Group President; and Peter Wall, Senior Vice President, Controller and Chief Accounting Officer.

Before starting, I would like to remind everyone that we will be discussing forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed 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 filed with the SEC.

All the earnings per share amounts in our presentation are shown on a diluted basis and we will be discussing certain non-GAAP financial measures. Please refer to the presentation slides that accompany this call for reconciliation to GAAP measures. I would also like to mention that the forward-looking statements contained in this presentation speak only as of today, August 5, 2020 and 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 4 and let me hand the call over to Jeff.

Executive
Jeffrey W. Martin

Thank you Faisel. And thank you all for joining us today. Two years ago, we laid out a strategic plan to divest non-core assets and reposition our business in the most attractive growth markets right here in North America. The plan also calls for concentrating our investments in a more narrow segment of the energy value chain, with the goal of improving our financial results. I'm proud to report that our strategy is working.

You will recall that our financial results in 2019 significantly exceeded our original guidance. And this year, we're pleased to have increased our 2020 EPS guidance range, completed our capital rotation program generating total gross proceeds of $8.3 billion, continued executing our utility centered capital program while deferring about $500 million of infrastructure capital, and at the end of last week, we reached substantial completion at Cameron Train 3 with commercial operations and full cash flows from all three trains expected in the coming days.

Given the quality and strength of our earnings and particularly the visibility we now have for our future growth, we believe recent share price performance doesn't reflect the value of our company nor its growth prospects. Because of this, we've made the decision to buy back $500 million of our stock and received approval from our Board for new authority