Efficient Financing & Incremental Investment Opportunities
CAPITAL ALLOCATION FRAMEWORK
CAPITAL ALLOCATION PRIORITIES
1
Focus on safety, reliability and other ESG priorities¹
2
Invest in our U.S. utilities
3 Continue strengthening the balance sheet
4 Return cash to shareholders
5 Invest in infrastructure growth projects incremental to plan
12
1.
2.
345
5.
RESULTS
80% of capital plan at California utilities is driven by safety,
reliability and cleaner fuels investments
90% of our 5-year capital plan is projected to be spent at
U.S. utilities²
Sempra Infrastructure proceeds to fund capital plan and debt
paydown. Targeting 16% FFO-to-Debt | 50% Debt-to-Total
Capitalization | BBB+ credit rating*
3,4
Target dividend payout ratio 50% - 60% and
Board authorization for up to $2B of potential future
share repurchases*
4,5
Target mid-double digit equity returns backed by long-term
contracts with strong credit-worthy counterparties
Disciplined capital allocation reflects our commitment to ESG priorities and supports organic
growth, enhancing earnings visibility, strong balance sheet, and competitive dividends
Environmental, Social and Governance (ESG).
Actual amounts expended will depend on a number of factors and may differ materially from the amounts reflected in our 5-year capital plan for 2021 - 2025. Amount represents our proportionate ownership share and includes $9.2B of capex that will be funded by unconsolidated
entities, including Oncor, Sharyland and our unconsolidated JVs.
FFO-to-Debt, is a non-GAAP financial measure. See Appendix for further details on non-GAAP financial measures.
Targeted results are for 2021-2025.
The amount and timing of dividends payable and the dividend policy are at the sole discretion of the Sempra Board of Directors and, if declared 70
and paid, dividends may be in amounts that are materially less than projected.
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