Sempra press release

ONCOR REPORTS SECOND QUARTER 2026 RESULTS

2026-08-06

NYSE - New York Stock Exchange · Natural Gas · United States · Corporate Finance

PR Newswire

DALLAS, Aug. 6, 2026/PRNewswire/ -- Oncor Electric Delivery Company LLC ("Oncor") today reported net income of $428 million for the three months ended June 30, 2026, compared to net income of $259 million in the three months ended June 30, 2025. The increase in net income of $169 million was driven by overall higher revenues primarily attributable to revenues recognized in connection with the surcharge filed pursuant to our comprehensive base rate review, an increase in other regulated revenues recognized related to the Unified Tracker Mechanism ("UTM") and the System Resiliency Plan ("SRP"), higher revenues due to new base rates that went into effect on June 1, 2026, updated interim rates to reflect increases in invested capital, and customer growth. Financial and operational results are provided in Tables A, B, C, D, and E below.

"Economic growth cannot occur without responsible infrastructure investment, and nowhere is that more evident than in Texas today," said Oncor CEO Allen Nye. "State leaders have recently asked whether all stakeholders' concerns and the reliability of the grid are being properly considered during this period of unprecedented growth. We share the concerns of ensuring a well-balanced process that meets the needs of both reliability and Texas stakeholders. We look forward to building the infrastructure the state needs to benefit all Texans. Also, as ERCOT set new peak demand records this summer, I want to thank our employees and contractors for all their work in the summer heat to maintain the reliability of the grid and serve our customers."

Oncor also reported net income of $640 million for the six months ended June 30, 2026, compared to net income of $440 million in the six months ended June 30, 2025. The increase in net income of $200 million was driven by overall higher revenues primarily attributable to an increase in other regulated revenues recognized related to the UTM and the SRP, revenues recognized in connection with the surcharge filed pursuant to our comprehensive base rate review, higher revenues due to new base rates that went into effect on June 1, 2026, updated interim rates to reflect increases in invested capital, and customer growth.

Operational Highlights In the second quarter of 2026, Oncor built, rebuilt, or upgraded more than 900 circuit miles of transmission and distribution lines and increased its premise count by approximately 16,200, reflecting ongoing population and business growth in Texas. Active transmission point-of-interconnection ("POI") requests increased 15% year over year. As of August 1, 2026, Oncor held approximately $5.9 billion in customer collateral for active generation and Large Commercial and Industrial ("LC&I") transmission POI requests. This collateral is intended to reduce the risk of rate payers bearing costs for projects that are cancelled after Oncor has expended funds toward building the infrastructure.

As of June 30, 2026, Oncor had 552 active generation POI requests in queue, composed of approximately 46% storage, 39% solar, 8% wind, and 7% gas. In addition, Oncor's active transmission LC&I interconnection queue included 737 requests at the end of the second quarter of 2026. Those requests included approximately 282 gigawatts from data centers and over 16 gigawatts of load from various other industrial sectors, demonstrating broad-based industrial growth within Oncor's service territory.

During the second quarter of 2026, Oncor continued to execute on projects designed to meet increasing system reliability needs and sustained customer growth. Among other projects, in June, Oncor placed in service its portion of a new 165-mile double-circuit 345 kV transmission line known as the Delaware Basin Stage 2 Project, the first in a series of upgrades needed to resolve urgent electricity import constraints into far west Texas.

In June, the Electric Reliability Council of Texas, Inc. ("ERCOT") endorsed several new transmission projects serving the southern Dallas–Fort Worth area and the I-35 corridor. Together with a series of other high voltage upgrades in the southern Dallas-Fort Worth area endorsed by ERCOT in April, these projects are expected to improve customer-serving capacity across Central and North Texas while providing improved reliability benefits to all customers. All together, these projects are expected to require investment of over $7 billion with expected construction windows between 2026 and 2034. Oncor has responsibility to construct the vast majority of these projects, subject to regulatory approvals where needed.

To address accelerating demand, the ERCOT board of directors and the Public Utility Commission of Texas ("PUCT") approved a system-wide approach to sequence large-load interconnection requests, the first stage of which is known as the Batch Zero process. While the timeline for Batch Zero remains to be determined, approximately 44 gigawatts of large-load requests are expected to be eligible as base or studied load to be connected to Oncor's transmission system, consisting of approximately 27 gigawatts of base load and approximately 17 gigawatts of studied load. The approximately 44 gigawatts also include approximately 8 gigawatts of existing interconnected large load that is ramping up to its authorized capacity. The projects reflect significant customer commitment through financial security, site control, and other ERCOT qualification requirements, reinforcing the substantial demand for infrastructure investment across Oncor's service territory. Oncor holds approximately $2 billion of large load customer collateral related to the Batch Zero projects, which is part of the approximately $5.9 billion of customer collateral mentioned above.

Regulatory Update On August 1, 2026, Oncorimplemented a temporary surcharge in accordance with its recently completed comprehensive base rate review to recover the difference between Oncor'srates in effect from January 1, 2026 to June 1, 2026, and the new rates approved by the PUCTin the base rate review, which became effective on June 1, 2026. The surcharge reflects approximately $212 million of deferred revenues to be recovered in rates through the end of the year, $181 million of which were recognized during the second quarter of 2026 in accordance with generally accepted accounting principles. The surcharge will result in an average monthly increase of approximately $3.63 over current rates for a residential customer using 1,000 kWh of electricity per month.

Liquidity Update As of August 5, 2026, Oncor's available liquidity totaled approximately $3.6 billion, consisting of cash on hand and available borrowing capacity under its credit facilities, commercial paper program, and accounts receivable facility. Oncor anticipates these resources, combined with projected cash flows from operations and future financing activities, will be sufficient to meet capital expenditures, maturities of long-term debt, and other operational needs for at least the next twelve months.

Sempra Internet Broadcast Today Sempra (NYSE: SRE) will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET, which will include discussion of second quarter 2026 results and other information relating to Oncor. Oncor executives will also participate in the broadcast. Access to the broadcast is available by logging onto the Investors section of Sempra's website, sempra.com/investors. Prior to the conference call, an accompanying slide presentation will be posted on sempra.com/investors. For those unable to participate during the live webcast, a replay will be available a few hours after its conclusion at sempra.com/investors.

Quarterly Report on Form 10-Q Oncor's Quarterly Report on Form 10-Q for the period ended June 30, 2026 will be filed with the U.S. Securities and Exchange Commission after Sempra's conference call and once filed, will be available on Oncor's website, oncor.com.

About Oncor Headquartered in Dallas, Oncor is a regulated electricity transmission and distribution business that uses superior asset management skills to provide reliable electricity delivery to consumers. Oncor (together with its subsidiaries) operates the largest transmission and distribution system in Texas, delivering electricity to more than 4.1 million homes and businesses and operating more than 145,000 circuit miles of transmission and distribution lines in Texas. While Oncor is owned by two investors (indirect majority owner, Sempra, and minority owner, Texas Transmission Investment LLC), Oncor is managed by its Board of Directors, which is comprised of a majority of disinterested directors.

| Oncor Electric Delivery Company LLC

Table A – Condensed Statements of Consolidated Income (Unaudited) | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | | | | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | (U.S. dollars in millions) | | | | | | | | | | | | Operating revenues | | $ | 2,062 | | $ | 1,654 | | $ | 3,786 | | $ | 3,202 | | Operating expenses: | | | | | | | | | | | | | | Wholesale transmission service | | | 390 | | | 367 | | | 771 | | | 720 | | Operation and maintenance | | | 455 | | | 368 | | | 858 | | | 738 | | Depreciation and amortization | | | 352 | | | 290 | | | 680 | | | 577 | | Provision in lieu of income taxes | | | 93 | | | 55 | | | 139 | | | 94 | | Taxes other than amounts related to income taxes | | | 154 | | | 142 | | | 314 | | | 289 | | Total operating expenses | | | 1,444 | | | 1,222 | | | 2,762 | | | 2,418 | | Operating income | | | 618 | | | 432 | | | 1,024 | | | 784 | | Other (income) and deductions – net | | | (47) | | | (19) | | | (80) | | | (32) | | Non-operating provision (benefit) in lieu of income taxes | | | 1 | | | - | | | 1 | | | (1) | | Interest expense and related charges | | | 236 | | | 192 | | | 463 | | | 377 | | Net income | | $ | 428 | | $ | 259 | | $ | 640 | | $ | 440 |

| Oncor Electric Delivery Company LLC

Table B – Condensed Statements of Consolidated Cash Flows (Unaudited) | | | | | | | | | | Six Months Ended June 30, | | | | | | | | 2026 | | 2025 | | | | | | (U.S. dollars in millions) | | | | | | Cash flows – operating activities: | | | | | | | | Net income | | $ | 640 | | $ | 440 | | Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | Depreciation and amortization, including regulatory amortization | | | 793 | | | 659 | | Provision in lieu of deferred income taxes – net | | | 122 | | | 77 | | Changes in operating assets and liabilities: | | | | | | | | Accounts receivable | | | (201) | | | (48) | | Surcharge receivable | | | (197) | | | - | | Inventories | | | (191) | | | (79) | | Accounts payable – trade | | | 112 | | | 24 | | Regulatory assets – recoverable SRP | | | (105) | | | (70) | | Regulatory assets – recoverable UTM | | | (171) | | | (19) | | Regulatory assets – self-insurance reserve costs incurred | | | (86) | | | (146) | | Regulatory under/over recoveries – net | | | 18 | | | 6 | | Customer deposits | | | 118 | | | 33 | | Pension and OPEB Plans | | | (31) | | | (132) | | Accrued interest | | | - | | | 24 | | Other – assets | | | (103) | | | (102) | | Other – liabilities | | | (66) | | | (73) | | Cash provided by operating activities | | | 652 | | | 594 | | Cash flows – financing activities: | | | | | | | | Issuances of senior secured notes | | | 2,130 | | | 3,105 | | Repayments of senior secured notes | | | (238) | | | (350) | | Issuances of junior subordinated unsecured notes | | | 986 | | | - | | Borrowings under term loan credit agreement | | | 475 | | | - | | Repayments under term loan credit agreement | | | (775) | | | - | | Borrowings under AR Facility | | | 150 | | | 510 | | Repayments under AR Facility | | | (475) | | | (510) | | Payment for senior secured notes extinguishment | | | - | | | (441) | | Net change in short-term borrowings | | | - | | | (594) | | Capital contributions from members | | | 1,851 | | | 1,210 | | Distributions to members | | | (572) | | | (354) | | Debt discount, premium, financing and reacquisition costs – net | | | (29) | | | (38) | | Cash provided by financing activities | | | 3,503 | | | 2,538 | | Cash flows – investing activities: | | | | | | | | Capital expenditures | | | (4,150) | | | (2,821) | | Sales and use tax audit settlement refund | | | 17 | | | - | | Other – net | | | 42 | | | 22 | | Cash used in investing activities | | | (4,091) | | | (2,799) | | Net change in cash, cash equivalents and restricted cash | | | 64 | | | 333 | | Cash, cash equivalents and restricted cash – beginning balance | | | 719 | | | 262 | | Cash, cash equivalents and restricted cash – ending balance | | $ | 783 | | $ | 595 |

| Oncor Electric Delivery Company LLC

Table C – Condensed Consolidated Balance Sheets (Unaudited) | | | | | | | | | | At June 30, | | At December 31, | | | | | | 2026 | | 2025 | | | | | | (U.S. dollars in millions) | | | | | | ASSETS | | | | | | | | Current assets: | | | | | | | | Cash and cash equivalents | | $ | 24 | | $ | 87 | | Restricted cash, current | | | 8 | | | 11 | | Accounts receivable – net | | | 1,463 | | | 1,048 | | Amounts receivable from members related to income taxes | | | 5 | | | 48 | | Materials and supplies inventories – at average cost | | | 882 | | | 690 | | Prepayments and other current assets | | | 188 | | | 140 | | Total current assets | | | 2,570 | | | 2,024 | | Restricted cash, noncurrent | | | 751 | | | 621 | | Investments and other property | | | 219 | | | 203 | | Property, plant and equipment – net | | | 41,240 | | | 37,834 | | Goodwill | | | 4,740 | | | 4,740 | | Regulatory assets | | | 2,293 | | | 2,049 | | Right-of-use operating lease assets | | | 298 | | | 265 | | Other noncurrent assets | | | 64 | | | 59 | | Total assets | | $ | 52,175 | | $ | 47,795 | | | | | | | | | | LIABILITIES AND MEMBERSHIP INTERESTS | | | | | | | | Current liabilities: | | | | | | | | Accounts payable – trade | | $ | 1,429 | | $ | 1,332 | | Amounts payable to members related to income taxes | | | 19 | | | 31 | | Accrued taxes other than amounts related to income | | | 198 | | | 296 | | Accrued interest | | | 216 | | | 216 | | Long-term debt, current | | | 5 | | | - | | Operating lease and other current liabilities | | | 375 | | | 409 | | Total current liabilities | | | 2,242 | | | 2,284 | | Long-term debt, noncurrent | | | 21,188 | | | 19,043 | | Liability in lieu of deferred income taxes | | | 3,020 | | | 2,841 | | Regulatory liabilities | | | 3,006 | | | 3,034 | | Employee benefit plan obligations | | | 1,246 | | | 1,275 | | Operating lease obligations | | | 266 | | | 239 | | Other noncurrent obligations | | | 877 | | | 711 | | Total liabilities | | | 31,845 | | | 29,427 | | Commitments and contingencies | | | | | | | | Membership interests: | | | | | | | | Capital account – number of units outstanding at June 30, 2026 and December 31, 2025 – 635,000,000 | | | 20,515 | | | 18,596 | | Accumulated other comprehensive loss | | | (185) | | | (228) | | Total membership interests | | | 20,330 | | | 18,368 | | Total liabilities and membership interests | | $ | 52,175 | | $ | 47,795 |

| Oncor Electric Delivery Company LLC

Table D – Operating Statistics

Mixed Measures | | | | | | | | | | Twelve Months Ended June 30, | | % | | | | | | 2026 | | 2025 | | Change | | Reliability statistics (a): | | | | | | | | System Average Interruption Duration Index (SAIDI) (non-storm) | | 81.0 | | 79.4 | | 2.0 | | System Average Interruption Frequency Index (SAIFI) (non-storm) | | 1.2 | | 1.1 | | 9.1 | | Customer Average Interruption Duration Index (CAIDI) (non-storm) | | 68.0 | | 70.9 | | (4.1) | | | | | | | | | | Electricity points of delivery (end of period and in thousands): | | | | | | | | Electricity distribution points of delivery (based on number of active meters) | | 4,141 | | 4,084 | | 1.4 |

| | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Increase | | Six Months Ended June 30, | | Increase | | | | | | | | 2026 | | 2025 | | (Decrease) | | 2026 | | 2025 | | (Decrease) | | Residential system weighted weather data (b): | | | | | | | | | | | | | | Cooling degree days | | 617 | | 570 | | 47 | | 690 | | 598 | | 92 | | Heating degree days | | 5 | | 17 | | (12) | | 360 | | 589 | | (229) | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | % | | Six Months Ended June 30, | | % | | | | | | | | 2026 | | 2025 | | Change | | 2026 | | 2025 | | Change | | Operating statistics: | | | | | | | | | | | | | | Electric energy volumes (gigawatt-hours) | | | | | | | | | | | | | | Residential | | 11,541 | | 11,280 | | 2.3 | | 21,627 | | 22,533 | | (4.0) | | Commercial, industrial, small business and other | | 33,054 | | 30,946 | | 6.8 | | 63,157 | | 58,699 | | 7.6 | | Total electric energy volumes | | 44,595 | | 42,226 | | 5.6 | | 84,784 | | 81,232 | | 4.4 |

| | | | (a) | SAIDI is the average number of minutes electric service is interrupted per consumer in a twelve-month period. SAIFI is the average number of electric service interruptions per consumer in a twelve-month period. CAIDI is the average duration in minutes per electric service interruption in a twelve-month period. In each case, our non-storm reliability performance reflects electric service interruptions of one minute or more per customer. Each of these results excludes outages during significant storm events. | | (b) | Degree days are measures of how warm or cold it is throughout our service territory. A degree day compares the average of the hourly outdoor temperatures during each day to a 65° Fahrenheit standard temperature. The more extreme the outside temperature, the higher the number of degree days. A high number of degree days generally results in higher levels of energy use for space cooling or heating. |

| Oncor Electric Delivery Company LLC

Table E – Operating Revenues | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | $ | | Six Months Ended June 30, | | $ | | | | | | | | | | | | | | 2026 | | 2025 | | Change | | 2026 | | 2025 | | Change | | | | | | | | | | (U.S. dollars in millions) | | | | | | | | | | | | | | | | | | Operating revenues | | | | | | | | | | | | | | | | | | | | Revenues contributing to earnings: | | | | | | | | | | | | | | | | | | | | Revenues from contracts with customers | | | | | | | | | | | | | | | | | | | | Distribution base revenues | | | | | | | | | | | | | | | | | | | | Residential (a)(b) | | $ | 507 | | $ | 387 | | $ | 120 | | $ | 860 | | $ | 762 | | $ | 98 | | LC&I (a)(c) | | | 451 | | | 335 | | | 116 | | | 795 | | | 667 | | | 128 | | Other (a)(d) | | | 45 | | | 32 | | | 13 | | | 76 | | | 62 | | | 14 | | Total distribution base revenues (e) | | | 1,003 | | | 754 | | | 249 | | | 1,731 | | | 1,491 | | | 240 | | Transmission base revenues (TCOS revenues) | | | | | | | | | | | | | | | | | | | | Third-party wholesale customers (a) | | | 310 | | | 280 | | | 30 | | | 590 | | | 533 | | | 57 | | REPs serving Oncor distribution customers, through TCRF | | | 157 | | | 155 | | | 2 | | | 311 | | | 295 | | | 16 | | Total TCOS revenues | | | 467 | | | 435 | | | 32 | | | 901 | | | 828 | | | 73 | | Other miscellaneous revenues | | | 28 | | | 25 | | | 3 | | | 50 | | | 48 | | | 2 | | Total revenues from contracts with customers | | | 1,498 | | | 1,214 | | | 284 | | | 2,682 | | | 2,367 | | | 315 | | Other regulated revenues | | | | | | | | | | | | | | | | | | | | SRP revenues (f) | | | 56 | | | 43 | | | 13 | | | 107 | | | 70 | | | 37 | | UTM revenues (g) | | | 102 | | | 19 | | | 83 | | | 200 | | | 19 | | | 181 | | Total other regulated revenues | | | 158 | | | 62 | | | 96 | | | 307 | | | 89 | | | 218 | | Total revenues contributing to earnings | | | 1,656 | | | 1,276 | | | 380 | | | 2,989 | | | 2,456 | | | 533 | | | | | | | | | | | | | | | | | | | | | | Revenues collected for pass-through expenses: | | | | | | | | | | | | | | | | | | | | TCRF – third-party wholesale transmission service | | | 390 | | | 367 | | | 23 | | | 771 | | | 720 | | | 51 | | EECRF and other revenues | | | 16 | | | 11 | | | 5 | | | 26 | | | 26 | | | - | | Total revenues collected for pass-through expenses | | | 406 | | | 378 | | | 28 | | | 797 | | | 746 | | | 51 | | Total operating revenues | | $ | 2,062 | | $ | 1,654 | | $ | 408 | | $ | 3,786 | | $ | 3,202 | | $ | 584 |