SRE - Takeaways from HQ Visit + Feedback in Meetings

Research evidence excerpt

SRE - Takeaways from HQ Visit + Feedback in Meetings

ather than a call to action on anything

meant to derail the high growth TX has in front of it. In short, we do not expect any changes Shares Out (M) 653

to the attractive wires growth thesis underpinning SRE's outlook. Separately, our discussion Short Interest Ratio/% Of Float 1.6% unpacked progress on Oncor's $10bn upside capex following the recent update on firming

Dividend/Yield $2.58/2.9% $7bn of DFW area projects. We think there has been an inordinate amount of attention

Return to Target 15.2% around Oncor's capital plan versus data centers and believe the true punch line here is

Enterprise Value ($M) $101,836 TX system expansion for growth more broadly continues in focused fashion. Data centers

Cash & Equivalents ($M) $796 remain a potential opportunity as 'incremental to the incremental' capex (and are certainly

Total Debt ($M) $36,433 worth monitoring on this front).

Preferred Equity ($M) $0 CA: GRC filings are a first step towards the 2030 outlook. Earlier this week, SRE

Minority Interest ($M) $7,235 filed CPUC GRC applications for SDG&E and SoCalGas, covering rates for the 2028-2031

Debt/TTM EBITDA 5.2x period. Recognizing these filings are just the start of a long process, we discussed learnings

Long-Term Debt/Total Cap 40.6% from challenges in the utilities' last orders and how these learnings have informed current

filings. We think process and positioning are the key takeaways, with a focus on fully

incorporating all capital into the applications (rather than separating programs into different 5 Page Document

tracks), cost structure changes and drivers into the filing (particularly insurance/health and

benefits/wages component increases), and ROE optics (potential upside sharing). While we