Sempra press release

ONCOR REPORTS THIRD QUARTER 2026 RESULTS

2026-11-05

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

PR Newswire

DALLAS, Nov. 5, 2026/PRNewswire/ -- Oncor Electric Delivery Company LLC ("Oncor") today reported net income of $572 million for the three months ended September 30, 2026, compared to net income of $380 million in the three months ended September 30, 2025. The increase in net income of $192 million was driven by overall higher revenues primarily attributable to higher revenues due to new base rates that went into effect on June 1, 2026, an increase in other regulated revenues recognized related to the Unified Tracker Mechanism ("UTM") and the System Resiliency Plan ("SRP"), higher customer consumption, primarily attributable to warmer weather, revenues recognized in connection with the surcharge filed pursuant to Oncor's comprehensive base rate review, and customer growth. Financial and operational results are provided in Tables A, B, C, D, and E below.

"Texas' continued economic growth depends on having the electric infrastructure in place to reliably serve its communities and businesses," said Oncor CEO Allen Nye. "I want to thank the Oncor team for their continued commitment to safely and reliably serving our customers and for the important work underway to help strengthen the grid for Texas' future. We look forward to working with lawmakers, regulators, landowners, and other stakeholders across Texas to advance the infrastructure needed to meet the state's growing energy needs."

Oncor also reported net income of $1,212 million for the nine months ended September 30, 2026, compared to net income of $820 million in the nine months ended September 30, 2025. The increase in net income of $392 million was driven by overall higher revenues primarily attributable to an increase in other regulated revenues recognized related to the UTM and the SRP, higher revenues due to updated rates, revenues recognized in connection with the surcharge filed pursuant to Oncor's comprehensive base rate review, higher customer consumption, primarily attributable to warmer weather, and customer growth.

Operational Highlights Through the first nine months of 2026, Oncor deployed approximately $6.3 billion of capital and remains on plan to execute approximately $9.0 billion of capital investment in 2026, the largest annual capital plan in company history. In the third quarter of 2026, Oncor built, rebuilt, or upgraded more than 700 circuit miles of transmission and distribution lines and increased its premise count by approximately 14,400, reflecting ongoing population and business growth in Texas. Active transmission point-of-interconnection ("POI") requests increased 10% year over year. As of September 30, 2026, Oncor held approximately $6.0 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 September 30, 2026, Oncor had 504 active generation POI requests in queue, composed of approximately 45% storage, 40% solar, 8% wind, and 7% gas. In addition, Oncor's active transmission LC&I interconnection queue included 795 requests at the end of the third quarter of 2026. Those requests included approximately 293 gigawatts from data centers and approximately 19 gigawatts of load from various other industrial sectors including 4 gigawatts of crypto-mining facilities, demonstrating broad-based industrial growth within Oncor's service territory.

On July 22, 2026, the Electric Reliability Council of Texas, Inc. ("ERCOT") set a new all-time peak demand record of 91.1 gigawatts ("GW"). Also, Oncor reached a new record peak of 33.3 GW on its system on August 24, 2026, an increase from Oncor's prior system peak of 31.4 GW set in 2025, reflecting continued load growth across its footprint.

During the quarter, Oncor's transmission investment totaled $1.3 billion to meet reliability requirements, expand transmission system capacity, and provide POIs for large transmission retail customers and third-party merchant generation sources. As part of that investment, Oncor advanced multiple projects that continue to support West Texas oil and gas electrification. In addition, Oncor made progress connecting new customers across its service territory, including projects supporting regional economic growth in the Dallas-Fort Worth ("DFW") metropolitan area. Work continues on a project to support 18 megawatts of expected new demand load related to terminal expansions at DFW Airport, helping to accommodate continued growth in one of the region's most important transportation hubs. Construction is also underway to provide two-way feed service to hospitals within the Fort Worth Medical Innovation District.

Oncor expects growth and economic expansion to continue across its service territory. Oncor currently projects its 2027 through 2031 base capital plan to increase by approximately 20%, driven by continued growth, customer demand, and infrastructure investments necessary to reliably serve the ERCOT market. Oncor expects to finalize and announce its final 2027 through 2031 capital plan in the first quarter of 2027.

Regulatory Update During the third quarter, Oncor continued to achieve significant regulatory milestones associated with the transmission infrastructure necessary to support the continued growth and reliability of the ERCOT market. Oncor has filed 16 new Certificate of Convenience and Necessity ("CCN") applications for needed transmission projects this year, eight of which have already been approved. An additional five CCNs filed in previous years have received approvals this year. Of the 16 applications filed this year, four were for 138 kV transmission lines, nine were for 345 kV transmission lines, and three were for 765 kV transmission lines.

On August 28, 2026, the Public Utility Commission of Texas ("PUCT") approved Oncor's CCN applications for the Drill Hole Switch to Longshore Switch and Longshore Switch to Dinosaur Switch 765 kV transmission projects, which together comprise Import Path 1 of the Permian Basin Reliability Plan ("PBRP"). As these projects advance, Oncor will continue to engage constructively with landowners and communities throughout the routing adjustment, land acquisition, and construction phases. The PUCT order approving the CCN applications is subject to motions for rehearing, which have been filed by various parties, and appeals. Oncor is currently awaiting a decision for the Big Hill to Sand Lake and Big Hill to Bell County East 765 kV transmission projects comprising Import Path 2 of the PBRP, which are to be constructed by Oncor and another utility.

Oncor has also received conditional classification from ERCOT of customer loads submitted as part of ERCOT's Batch Zero process; approximately 24 GW of large load has been classified as base load including 10 GW of already energized load, and 21 GW has been classified as studied load where Oncor is the transmission service provider. The classification is conditional pending the results of an ERCOT audit of customer qualifications and community impacts, which is expected in December 2026. Oncor holds approximately $2.0 billion of large load customer collateral related to the Batch Zero projects, which is part of the approximately $6.0 billion of customer collateral mentioned above. Batch Zero remains an ongoing study and final load classifications are subject to change. A final transmission plan reflecting the results of Batch Zero is not expected until fall of 2027. As a result, Batch Zero projects remain outside of Oncor's current base capital plan.

During the third quarter, the PUCT Staff recommended approval of Oncor's Wildfire Mitigation Plan pursuant to the framework established by House Bill 145. The plan builds upon Oncor's existing wildfire mitigation efforts and establishes operational protocols for use across Oncor's system when wildfire risks are present, including inspections, vegetation management, de-energization and restoration procedures, and community outreach and public awareness plans. Oncor expects a final decision by the PUCT on its plan in the fourth quarter.

Liquidity Update As of November 4, 2026, Oncor's available liquidity totaled approximately $3.7 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 third 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 September 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 September 30, | | Nine Months Ended September 30, | | | | | | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | (U.S. dollars in millions) | | | | | | | | | | | | Operating revenues | | $ | 2,296 | | $ | 1,845 | | $ | 6,082 | | $ | 5,047 | | Operating expenses: | | | | | | | | | | | | | | Wholesale transmission service | | | 388 | | | 374 | | | 1,159 | | | 1,094 | | Operation and maintenance | | | 464 | | | 385 | | | 1,322 | | | 1,123 | | Depreciation and amortization | | | 356 | | | 300 | | | 1,036 | | | 877 | | Provision in lieu of income taxes | | | 132 | | | 80 | | | 271 | | | 174 | | Taxes other than amounts related to income taxes | | | 162 | | | 154 | | | 476 | | | 443 | | Total operating expenses | | | 1,502 | | | 1,293 | | | 4,264 | | | 3,711 | | Operating income | | | 794 | | | 552 | | | 1,818 | | | 1,336 | | Other (income) and deductions – net | | | (47) | | | (29) | | | (127) | | | (61) | | Non-operating provision (benefit) in lieu of income taxes | | | 8 | | | - | | | 9 | | | (1) | | Interest expense and related charges | | | 261 | | | 201 | | | 724 | | | 578 | | Net income | | $ | 572 | | $ | 380 | | $ | 1,212 | | $ | 820 |

| Oncor Electric Delivery Company LLC | | | | | | | | Table B – Condensed Statements of Consolidated Cash Flows (Unaudited) | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | | | | | | | 2026 | | 2025 | | | | | | (U.S. dollars in millions) | | | | | | Cash flows – operating activities: | | | | | | | | Net income | | $ | 1,212 | | $ | 820 | | Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | Depreciation and amortization, including regulatory amortization | | | 1,209 | | | 1,002 | | Provision in lieu of deferred income taxes – net | | | 251 | | | 166 | | Changes in operating assets and liabilities: | | | | | | | | Accounts receivable – net | | | (474) | | | (200) | | Materials and supplies inventories | | | (372) | | | (143) | | Accounts payable – trade | | | 33 | | | 5 | | Regulatory assets – recoverable SRP | | | (175) | | | (111) | | Regulatory assets – recoverable UTM | | | (339) | | | (55) | | Regulatory assets – self-insurance reserve costs incurred | | | (70) | | | (165) | | Regulatory under/over recoveries – net | | | 152 | | | 110 | | Customer deposits | | | 693 | | | 53 | | Pension and OPEB Plans | | | (41) | | | (144) | | Accrued interest | | | 103 | | | 120 | | Other – assets | | | (72) | | | (127) | | Other – liabilities | | | 129 | | | 80 | | Cash provided by operating activities | | | 2,239 | | | 1,411 | | Cash flows – financing activities: | | | | | | | | Issuances of senior secured notes | | | 3,930 | | | 3,466 | | 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 | | | (1,400) | | | - | | Borrowings under AR Facility | | | 525 | | | 510 | | Repayments under AR Facility | | | (850) | | | (510) | | Repayments under $500M Credit Facility (Note 5) | | | (480) | | | - | | Payment for senior secured notes extinguishment | | | - | | | (441) | | Net change in short-term borrowings | | | - | | | (594) | | Capital contributions from members | | | 2,611 | | | 1,857 | | Distributions to members | | | (857) | | | (573) | | Debt discount, premium, financing and reacquisition costs – net | | | (50) | | | (42) | | Cash provided by financing activities | | | 4,652 | | | 3,323 | | Cash flows – investing activities: | | | | | | | | Capital expenditures | | | (6,276) | | | (4,547) | | Sales and use tax audit settlement refund | | | 17 | | | - | | Other – net | | | 64 | | | 32 | | Cash used in investing activities | | | (6,195) | | | (4,515) | | Net change in cash, cash equivalents and restricted cash | | | 696 | | | 219 | | Cash, cash equivalents and restricted cash – beginning balance | | | 719 | | | 262 | | Cash, cash equivalents and restricted cash – ending balance | | $ | 1,415 | | $ | 481 |

| Oncor Electric Delivery Company LLC | | | | | | | | Table C – Condensed Consolidated Balance Sheets (Unaudited) | | | | | | | | | | | | | | | | | | At September 30, | | At December 31, | | | | | | 2026 | | 2025 | | | | | | (U.S. dollars in millions) | | | | | | ASSETS | | | | | | | | Current assets: | | | | | | | | Cash and cash equivalents | | $ | 77 | | $ | 87 | | Restricted cash, current | | | 1,077 | | | 11 | | Accounts receivable – net | | | 1,530 | | | 1,048 | | Amounts receivable from members related to income taxes | | | 5 | | | 48 | | Materials and supplies inventories – at average cost | | | 1,063 | | | 690 | | Prepayments and other current assets | | | 152 | | | 140 | | Total current assets | | | 3,904 | | | 2,024 | | Restricted cash, noncurrent | | | 261 | | | 621 | | Investments and other property | | | 219 | | | 203 | | Property, plant and equipment – net | | | 43,185 | | | 37,834 | | Goodwill | | | 4,740 | | | 4,740 | | Regulatory assets | | | 2,425 | | | 2,049 | | Right-of-use operating lease assets | | | 306 | | | 265 | | Other noncurrent assets | | | 253 | | | 59 | | Total assets | | $ | 55,293 | | $ | 47,795 | | | | | | | | | | LIABILITIES AND MEMBERSHIP INTERESTS | | | | | | | | Current liabilities: | | | | | | | | Accounts payable – trade | | $ | 1,482 | | $ | 1,332 | | Amounts payable to members related to income taxes | | | 26 | | | 31 | | Accrued taxes other than amounts related to income | | | 288 | | | 296 | | Accrued interest | | | 319 | | | 216 | | Operating lease and other current liabilities | | | 1,477 | | | 409 | | Total current liabilities | | | 3,592 | | | 2,284 | | Long-term debt, noncurrent | | | 21,854 | | | 19,043 | | Liability in lieu of deferred income taxes | | | 3,223 | | | 2,841 | | Regulatory liabilities | | | 3,138 | | | 3,034 | | Employee benefit plan obligations | | | 1,263 | | | 1,275 | | Operating lease obligations | | | 271 | | | 239 | | Other noncurrent obligations | | | 389 | | | 711 | | Total liabilities | | | 33,730 | | | 29,427 | | Commitments and contingencies | | | | | | | | Membership interests: | | | | | | | | Capital account – number of units outstanding at September 30, 2026 and December 31, 2025 – 635,000,000 | | | 21,562 | | | 18,596 | | Accumulated other comprehensive income (loss) | | | 1 | | | (228) | | Total membership interests | | | 21,563 | | | 18,368 | | Total liabilities and membership interests | | $ | 55,293 | | $ | 47,795 |

| Oncor Electric Delivery Company LLC | | | | | | | | Table D – Operating Statistics | | | | | | | | Mixed Measures | | | | | | | | | | | | | | | | | | Twelve Months Ended September 30, | | % | | | | | | 2026 | | 2025 | | Change | | Reliability statistics (a): | | | | | | | | System Average Interruption Duration Index (SAIDI) (non-storm) | | 82.9 | | 82.2 | | 0.9 | | System Average Interruption Frequency Index (SAIFI) (non-storm) | | 1.2 | | 1.2 | | 0.0 | | Customer Average Interruption Duration Index (CAIDI) (non-storm) | | 66.9 | | 70.8 | | (5.5) | | | | | | | | | | Electricity points of delivery (end of period and in thousands): | | | | | | | | Electricity distribution points of delivery (based on number of active meters) | | 4,155 | | 4,100 | | 1.3 |

| | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Increase | | Nine Months Ended September 30, | | Increase | | | | | | | | 2026 | | 2025 | | (Decrease) | | 2026 | | 2025 | | (Decrease) | | Residential system weighted weather data (b): | | | | | | | | | | | | | | Cooling degree days | | 1,558 | | 1,112 | | 446 | | 2,247 | | 1,710 | | 537 | | Heating degree days | | - | | - | | - | | 360 | | 589 | | (229) | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | % | | Nine Months Ended September 30, | | % | | | | | | | | 2026 | | 2025 | | Change | | 2026 | | 2025 | | Change | | Operating statistics: | | | | | | | | | | | | | | Electric energy volumes (gigawatt-hours) | | | | | | | | | | | | | | Residential | | 17,977 | | 15,034 | | 19.6 | | 39,604 | | 37,567 | | 5.4 | | Commercial, industrial, small business and other | | 37,229 | | 35,727 | | 4.2 | | 100,386 | | 94,426 | | 6.3 | | Total electric energy volumes | | 55,206 | | 50,761 | | 8.8 | | 139,990 | | 131,993 | | 6.1 |

| | | | (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, Oncor's 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 Oncor's 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 September 30, | | $ | | Nine Months Ended September 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) | | $ | 694 | | $ | 508 | | $ | 186 | | $ | 1,554 | | $ | 1,270 | | $ | 284 | | LC&I (a)(c) | | | 442 | | | 375 | | | 67 | | | 1,237 | | | 1,042 | | | 195 | | Other (a)(d) | | | 43 | | | 34 | | | 9 | | | 119 | | | 96 | | | 23 | | Total distribution base revenues (e) | | | 1,179 | | | 917 | | | 262 | | | 2,910 | | | 2,408 | | | 502 | | Transmission base revenues (TCOS revenues) | | | | | | | | | | | | | | | | | | | | Third-party wholesale customers (a) | | | 298 | | | 279 | | | 19 | | | 888 | | | 812 | | | 76 | | REPs serving Oncor distribution customers, through TCRF | | | 169 | | | 155 | | | 14 | | | 480 | | | 450 | | | 30 | | Total TCOS revenues | | | 467 | | | 434 | | | 33 | | | 1,368 | | | 1,262 | | | 106 | | Other miscellaneous revenues | | | 23 | | | 24 | | | (1) | | | 73 | | | 72 | | | 1 | | Total revenues from contracts with customers | | | 1,669 | | | 1,375 | | | 294 | | | 4,351 | | | 3,742 | | | 609 | | Other regulated revenues | | | | | | | | | | | | | | | | | | | | SRP revenues (f) | | | 69 | | | 41 | | | 28 | | | 176 | | | 111 | | | 65 | | UTM revenues (g) | | | 139 | | | 36 | | | 103 | | | 339 | | | 55 | | | 284 | | Total other regulated revenues | | | 208 | | | 77 | | | 131 | | | 515 | | | 166 | | | 349 | | Total revenues contributing to earnings | | | 1,877 | | | 1,452 | | | 425 | | | 4,866 | | | 3,908 | | | 958 | | | | | | | | | | | | | | | | | | | | | | Revenues collected for pass-through expenses: | | | | | | | | | | | | | | | | | | | | TCRF – third-party wholesale transmission service | | | 388 | | | 374 | | | 14 | | | 1,159 | | | 1,094 | | | 65 | | EECRF and other revenues | | | 31 | | | 19 | | | 12 | | | 57 | | | 45 | | | 12 | | Total revenues collected for pass-through expenses | | | 419 | | | 393 | | | 26 | | | 1,216 | | | 1,139 | | | 77 | | Total operating revenues | | $ | 2,296 | | $ | 1,845 | | $ | 451 | | $ | 6,082 | | $ | 5,047 | | $ | 1,035 |