Sempra reported a strong Q2 2026 with adjusted EPS of $1.16, and management focused on the massive growth opportunity in Texas driven by data center demand, outlining the Batch Zero process and its potential for incremental capital beyond current plans. The company reaffirmed its 2026 and 2027 EPS guidance and highlighted progress on strategic divestitures to simplify the business and strengthen the balance sheet. Q2 2026 adjusted EPS was $1.16, up from $0.89 in the prior year, driven by strong performance in Sempra Texas.
Sempra reported a strong Q2 2026 with adjusted EPS of $1.16, and management focused on the massive growth opportunity in Texas driven by data center demand, outlining the Batch Zero process and its potential for incremental capital beyond current plans. The company reaffirmed its 2026 and 2027 EPS guidance and highlighted progress on strategic divestitures to simplify the business and strengthen the balance sheet. Q2 2026 adjusted EPS was $1.16, up from $0.89 in the prior year, driven by strong performance in Sempra Texas.
Management is executing a $65 billion capital plan focused on utility growth, increasingly directed toward Sempra Texas, with a $47.5 billion five-year base plan at Oncor and $10 billion of incremental capital opportunities that are expected to roll forward higher in Q4. The SI…
Texas continues to experience unprecedented growth in electricity demand, with ERCOT reaching a new all-time peak load of 91 GW and 44 GW of large load requests in the Batch Zero process, representing a 140% increase to Oncor's current system peak. Oncor's active transmission…
Texas continues to experience unprecedented growth in electricity demand, with ERCOT reaching a new all-time peak load of 91 GW and 44 GW of large load requests in the Batch Zero process, representing a 140% increase to Oncor's current system peak. Oncor's active transmission…
ERCOT's new Batch Zero process includes 44 GW of large load requests, which is incremental to Oncor's current capital plan and represents a massive growth opportunity.
Texas continues to experience unprecedented growth in electricity demand, with ERCOT reaching a new all-time peak load of 91 GW and 44 GW of large load requests in the Batch Zero process, representing a 140% increase to Oncor's current system peak. Oncor's active transmission interconnection requests are up 15% year-to-date, with strong interest in data centers and other loads.
Management is executing a $65 billion capital plan focused on utility growth, increasingly directed toward Sempra Texas, with a $47.5 billion five-year base plan at Oncor and $10 billion of incremental capital opportunities that are expected to roll forward higher in Q4. The SI Partners sale recycles capital into regulated utilities and deconsolidates about $9 billion of debt.
Management expressed growing confidence in Oncor's execution of its base capital plan and incremental opportunities, while remaining constructive on regulatory processes and long-term growth.
“44 gigawatts of additional demand would represent a 140% increase to Encore's current system peak load of 31 gigawatts...over $2 billion for the 44 gigawatt of batch zero submissions shown here.”
“we discovered damage to equipment connected to the plant's mixed refrigerant compressors and we are working with our EPC contractor and the OEM...we expect the project to reach substantial completion in the fourth quarter of 2026.”
“ERCOT apparently intends to consult with the PUC on next steps and seek approval for a good cause exception related to the badge zero timeline and process at the August 20 PUC open meeting.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | $4.80–$5.30 | $5.05 | MAINTAINED |
| EPS | FY2027 | $5.10–$5.70 | $5.40 | MAINTAINED |
Texas is implementing a new 'batch zero' process to sequence large load interconnections with generation, and the PUCT has approved a comprehensive audit of all data centers before they can interconnect, effectively reordering the process to front-load participation and create a more durable framework. — This reordering could create short-term delays in data center interconnections in Texas but may lead to a more stable long-term regulatory environment for grid investments.
Hey, good afternoon. Hey, how are you? Good. I just wanted to ask if we could be a little bit more clear just on the batch process, just the actual next steps. To my understanding there's a good cause exception request at the TUCT and do you guys think that that gets acknowledged and then we just kind of keep moving along with the prior schedule or are we kind of on pause until we get past November election and any thoughts from Encore if we could see additional legislation in the next session around this too would be helpful. Thanks.
Yeah, you bet. I think the way we're thinking about it is obviously Governor Abbott issued his letter on August 3rd calling for the comprehensive verification and audit. of all the data centers before they can interconnect. The immediate impact is I think exactly the way you described it. ERCOT previously was going to notify TDSPs on August 7th of the loads that could potentially be in batch zero and now ERCOT apparently intends to consult with the PUC on next steps and seek approval for a good cause exception related to the badge zero timeline and process at the August 20 PUC open meeting. So we've really been focused on August 20 as being the next big event where we may learn more about what's going to go on. The only other thing I would say is it's also our perspective that, you know, These projects that were going to make it into badge zero were always subject to a validation process to ensure that they met the criteria of the new rules. And with the comprehensive audit moving to the front end and effectively reordering the prior process, we think it will benefit the process by allowing more participation on the front end and lead potentially to a more durable framework on the back end. That's probably what we know right now.
Oncor's Batch Zero process includes 44 GW of large load requests, representing a 140% increase to current system peak, with $2 billion in collateral already posted for these specific projects, indicating high commitment levels.
The recent ECA LNG Phase 1 commissioning issue is with the mixed refrigerant compressors, and the damage was discovered during planned maintenance after the first cargo was exported, pushing substantial completion to Q4 2026.