Sempra Energy Reports Strong First-Quarter 2021 Earnings Results

SAN DIEGO, May 5, 2021 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today announced first-quarter 2021 earnings of $874 million, or $2.87 per diluted share, compared to first-quarter 2020 earnings of $760 million, or $2.53 per diluted share. On an adjusted basis, the company's first-quarter 2021 earnings were $900 million, or $2.95 per diluted share, compared to $741 million, or $2.47 per diluted share, in the first quarter of 2020.

"Over the last several years, we have narrowed our market focus, expanded investment in our utilities and worked hard to improve safety and operating results," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "Taken together, these activities also support our financial commitments and, in part, are reflected in the strength of our first quarter results. The company is well positioned to deliver another strong year of financial performance."

The reported financial results reflect certain significant items as described on an after-tax basis in the following table of GAAP (generally accepted accounting principles in the United States of America) earnings, reconciled to adjusted earnings, for the first quarter of 2021 and 2020.

 
             
     

 Three months ended 

 
     

 March 31, 

 
 

(Dollars, except EPS, and shares in millions)

 

2021

 

2020

 
     

(Unaudited)

 
 

GAAP Earnings

 

$        874

 

$        760

 
             
 

Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives(1)

 

(3)

 

(150)

 
             
 

Net Unrealized Losses (Gains) on Commodity Derivatives(1)

 

29

 

(41)

 
             
 

Impacts Associated with Aliso Canyon Litigation

 

-

 

72

 
             
 

Losses from Investment in RBS Sempra Commodities LLP

 

-

 

100

 
             
 

Adjusted Earnings(2)

 

$        900

 

$        741

 
             
             
 

Diluted Weighted-Average Common Shares Outstanding

 

308

 

314

 
 

GAAP EPS(3),(4)

 

$       2.87

 

$       2.53

 
             
 

Diluted Weighted-Average Common Shares Outstanding

 

308

 

314

 
 

Adjusted EPS(2),(3),(4)

 

$       2.95

 

$       2.47

 
             

 

1)

Q1-2020 Adjusted Earnings and Adjusted earnings-per-common-share (EPS) have been updated to exclude this item to conform to current year presentation.

2)

Represents a non-GAAP financial measure. Q1-2020 Adjusted Earnings and Adjusted EPS have been updated to exclude additional items to conform to current year presentation. See Table A for information regarding non-GAAP financial measures and descriptions of adjustments.

3)

To calculate Q1-2021 GAAP EPS and Adjusted EPS, preferred dividends of $10 million are added back to GAAP Earnings and Adjusted Earnings because of the dilutive effect of Series B mandatory convertible preferred stock in the quarter.

4)

To calculate Q1-2020 GAAP EPS and Adjusted EPS, preferred dividends of $36 million are added back to GAAP Earnings and Adjusted Earnings because of the dilutive effect of Series A and Series B mandatory convertible preferred stock in the quarter.

Building Resiliency in California Utilities

Sempra Energy's California utilities, San Diego Gas & Electric Co. (SDG&E) and Southern California Gas Co. (SoCalGas), both recently announced net-zero emissions goals, contributing to Sempra Energy's overall efforts to help shape a more sustainable future. In March 2021, SoCalGas announced its goal to achieve net-zero greenhouse gas (GHG) emissions in its operations and delivery of energy by 2045. With this commitment, SoCalGas becomes the largest gas distribution utility in North America to set a net-zero GHG emissions target across all three scopes.

Building on the sustainability strategy SDG&E released last October and its goal to reach net-zero GHG emissions by 2045, the utility announced it is developing two hydrogen pilot projects, it is nearing completion of an additional battery storage facility and it has begun construction on another, while also launching a vehicle-to-grid pilot program featuring electric school buses, among other efforts.

Additionally, SDG&E and SoCalGas recently received a proposed decision for attrition rates for 2022 and 2023, providing improved visibility into funding in support of safety and reliability programs. SDG&E's attrition rate would be 3.92% for 2022 and 3.7% for 2023, and SoCalGas' attrition rate would be 4.53% for 2022 and 3.97% for 2023.

Continuing Growth at Oncor

In Texas, Oncor Electric Delivery Company LLC (Oncor) continues to play a key role in meeting the growing energy needs of Texas' economy through the execution of its 2021-2025 capital plan. In the first quarter of 2021, Oncor continued to see strong organic growth and connected approximately 19,000 new premises, compared to approximately 18,000 in the first quarter of 2020.

Making Progress on Sempra Infrastructure

Last month, Sempra Energy announced that it has entered into a definitive agreement to sell a non-controlling 20% interest in Sempra Infrastructure to KKR for $3.37 billion in cash, subject to adjustments. The transaction values Sempra Infrastructure at approximately $25.2 billion, including expected asset-related debt at closing of $8.37 billion. Proceeds from the sale will be used to help fund growth in Sempra Energy's U.S. utilities and to further strengthen the company's balance sheet. The sale is expected to be accretive to earnings. The transaction is forecasted to be completed in mid-2021, subject to customary closing conditions, including consents from third parties and regulators.

On April 26, 2021, Sempra Energy launched its exchange offer to acquire all the outstanding shares of Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) not owned by Sempra Energy. As part of the exchange offer, Sempra Energy intends to list its shares of common stock on the Mexican stock exchange (Bolsa Mexicana de Valores, S.A.B de C.V.). The exchange offer is expected to be completed by the end of May.

Additionally, IEnova continues to advance its development projects in Mexico with a focus on improving the country's energy security. In March, IEnova achieved commercial operations on its Border Solar project, a 150-megawatt solar facility in northern Mexico, and completed the acquisition of the remaining 50% equity interest in Energía Sierra Juárez, a cross-border wind generation complex in Baja California, Mexico.

Earnings Guidance

Sempra Energy is updating its full-year 2021 GAAP EPS guidance range to $7.42 to $8.02 and affirming its full-year 2021 adjusted EPS guidance range of $7.50 to $8.10.

Non-GAAP Financial Measures

Non-GAAP financial measures include Sempra Energy's adjusted earnings, adjusted EPS and adjusted EPS guidance range. See Table A for additional information regarding these non-GAAP financial measures.

Internet Broadcast

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log on to the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 6657833.

About Sempra Energy

Sempra Energy's mission is to be North America's premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the largest energy networks in North America serving some of the world's leading economies. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture including safety, workforce development and training, and diversity and inclusion. Sempra Energy is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the "World's Most Admired Companies" for 2021 by Fortune Magazine. For additional information about Sempra Energy, please visit Sempra Energy's website at www.sempra.com and on Twitter @SempraEnergy.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.

In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; actions to reduce or eliminate reliance on natural gas, including any deterioration of or increased uncertainty in the political or regulatory environment for local natural gas distribution companies operating in California, and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance, may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, the storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange, inflation and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.

None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document.

 

SEMPRA ENERGY

Table A

       

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

     

(Dollars in millions, except per share amounts; shares in thousands)

     
 

Three months ended March 31,

 

2021

 

2020

 

(unaudited)

REVENUES

     

Utilities

$

2,845

   

$

2,665

 

Energy-related businesses

414

   

364

 

Total revenues

3,259

   

3,029

 
       

EXPENSES AND OTHER INCOME

     

Utilities:

     

Cost of natural gas

(349)

   

(337)

 

Cost of electric fuel and purchased power

(232)

   

(229)

 

Energy-related businesses cost of sales

(109)

   

(59)

 

Operation and maintenance

(1,001)

   

(851)

 

Aliso Canyon litigation and regulatory matters

   

(100)

 

Depreciation and amortization

(442)

   

(412)

 

Franchise fees and other taxes

(153)

   

(137)

 

Other income (expense), net

35

   

(254)

 

Interest income

19

   

27

 

Interest expense

(259)

   

(280)

 

Income from continuing operations before income taxes and equity earnings

768

   

397

 

Income tax (expense) benefit

(158)

   

207

 

Equity earnings

318

   

263

 

Income from continuing operations, net of income tax

928

   

867

 

Income from discontinued operations, net of income tax

   

80

 

Net income

928

   

947

 

Earnings attributable to noncontrolling interests

(33)

   

(151)

 

Preferred dividends

(21)

   

(36)

 
       

Earnings attributable to common shares

$

874

   

$

760

 
       

Basic earnings per common share (EPS):

     

Earnings

$

2.91

   

$

2.60

 

Weighted-average common shares outstanding

300,905

   

292,790

 
       

Diluted EPS:

     

Earnings

$

2.87

   

$

2.53

 

Weighted-average common shares outstanding

308,458

   

313,925

 

 

SEMPRA ENERGY
Table A (Continued)

RECONCILIATION OF SEMPRA ENERGY ADJUSTED EARNINGS TO SEMPRA ENERGY GAAP EARNINGS (Unaudited)

Sempra Energy Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2021 and 2020 as follows:

Three months ended March 31, 2021:

  • $3 million impact from foreign currency and inflation and associated undesignated derivatives
  • $(29) million net unrealized losses on commodity derivatives

Three months ended March 31, 2020:

  • $150 million impact from foreign currency and inflation and associated undesignated derivatives
  • $41 million net unrealized gains on commodity derivatives
  • $(72) million from impacts associated with Aliso Canyon natural gas storage facility litigation at Southern California Gas Company (SoCalGas)
  • $(100) million equity losses at RBS Sempra Commodities LLP, which represents an estimate of our obligations to settle pending tax matters and related legal costs at our equity method investment at Parent and Other

Sempra Energy Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation effects and associated undesignated derivatives and unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

SEMPRA ENERGY

Table A (Continued)

                       

RECONCILIATION OF ADJUSTED EARNINGS TO GAAP EARNINGS

(Dollars in millions, except per share amounts; shares in thousands)

     

Pretax
amount

Income tax
benefit(1)

Non-
controlling
interests

Earnings

 

Pretax
amount

Income tax
(benefit)
expense(1)

Non-
controlling
interests

Earnings

                       
 

Three months ended March 31, 2021

 

Three months ended March 31, 2020

Sempra Energy GAAP Earnings

     

$

874

         

$

760

 

Excluded items:

                 

 

   Impact from foreign currency and inflation and associated
       
undesignated derivatives

$

30

 

$

(42)

 

$

9

 

(3)

   

$

95

 

$

(353)

 

$

108

 

(150)

 

 

   Net unrealized losses (gains) on commodity derivatives

46

 

(13)

 

(4)

 

29

   

(57)

 

16

 

 

(41)

 

 

   Impacts associated with Aliso Canyon litigation

 

 

 

   

100

 

(28)

 

 

72

 

 

   Losses from investment in RBS Sempra Commodities LLP

 

 

 

   

100

 

 

 

100

 

Sempra Energy Adjusted Earnings(2)

     

$

900

         

$

741

 
                     

Diluted EPS:

                 

 

   Sempra Energy GAAP Earnings

     

$

874

         

$

760

 

 

   Add back dividends for dilutive series A preferred stock

     

         

26

 

 

   Add back dividends for dilutive series B preferred stock

     

10

         

10

 

 

   Sempra Energy GAAP Earnings for GAAP EPS

     

$

884

         

$

796

 

 

   Weighted-average common shares outstanding, diluted

     

308,458

         

313,925

 

 

   Sempra Energy GAAP EPS

     

$

2.87

         

$

2.53

 
                     

 

   Sempra Energy Adjusted Earnings(2)

     

$

900

         

$

741

 

 

   Add back dividends for dilutive series A preferred stock

     

         

26

 

 

   Add back dividends for dilutive series B preferred stock

     

10

         

10

 

 

   Sempra Energy Adjusted Earnings for Adjusted EPS(2)

     

$

910

         

$

777

 

 

   Weighted-average common shares outstanding, diluted

     

308,458

         

313,925

 

 

   Sempra Energy Adjusted EPS(2)

     

$

2.95

         

$

2.47

 
   

(1)

Income taxes were primarily calculated based on applicable statutory tax rates. We did not record an income tax benefit for the equity losses from our investment in RBS Sempra Commodities LLP because, even though a portion of the liabilities may be deductible under United Kingdom tax law, it is not probable that the deduction will reduce United Kingdom taxes.

(2)

Adjusted Earnings, Adjusted Earnings for Adjusted EPS and Adjusted EPS have been updated to reflect impact from foreign currency and inflation and associated undesignated derivatives and net unrealized gains on commodity derivatives for the three months ended March 31, 2020.

SEMPRA ENERGY
Table A (Continued)

RECONCILIATION OF SEMPRA ENERGY 2021 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA ENERGY 2021 GAAP EPS GUIDANCE RANGE (Unaudited)

Sempra Energy 2021 Adjusted EPS Guidance Range of $7.50 to $8.10 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:

  • $3 million impact from foreign currency and inflation and associated undesignated derivatives for the three months ended March 31, 2021
  • $(29) million net unrealized losses on commodity derivatives for the three months ended March 31, 2021

Sempra Energy 2021 Adjusted EPS Guidance is a non-GAAP financial measure. This non-GAAP financial measure excludes the impact from foreign currency and inflation and associated undesignated derivatives and unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Sempra Energy 2021 Adjusted EPS Guidance Range should not be considered an alternative to Sempra Energy 2021 GAAP EPS Guidance Range. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles Sempra Energy 2021 Adjusted EPS Guidance Range to Sempra Energy 2021 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP.

 

RECONCILIATION OF ADJUSTED EPS GUIDANCE RANGE TO GAAP EPS GUIDANCE RANGE

   
   

Full-Year 2021

 

Sempra Energy GAAP EPS Guidance Range(1)

$

7.42

 

to

$

8.02

 
 

Excluded items:

     
 

   Impact from foreign currency and inflation and associated undesignated derivatives

(0.01)

   

(0.01)

 
 

   Net unrealized losses on commodity derivatives

0.09

   

0.09

 
 

Sempra Energy Adjusted EPS Guidance Range

$

7.50

 

to

$

8.10

 
 

Weighted-average common shares outstanding, diluted (millions)(2)

   

308

 
     

(1)

Sempra Energy's prior GAAP EPS Guidance Range for full-year 2021 of $7.50 to $8.10 has been updated to reflect the impact from foreign currency and inflation and undesignated derivatives and net unrealized losses on commodity derivatives for the three months ended March 31, 2021.

(2)

Weighted-average common shares outstanding does not include the dilutive effect of mandatory convertible preferred stock, as they are assumed to be antidilutive for full-year 2021. If such mandatory convertible preferred stock were dilutive for the full year, the 2021 GAAP EPS Guidance Range would differ from the range presented above.

 

SEMPRA ENERGY

Table B

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

     
 

March 31,
2021

 

December 31,

2020(1)

 

(unaudited)

   

ASSETS

     

Current assets:

     

Cash and cash equivalents

$

725

   

$

960

 

Restricted cash

38

   

22

 

Accounts receivable – trade, net

1,595

   

1,578

 

Accounts receivable – other, net

393

   

403

 

Due from unconsolidated affiliates

26

   

20

 

Income taxes receivable

78

   

113

 

Inventories

274

   

308

 

Regulatory assets

183

   

190

 

Greenhouse gas allowances

555

   

553

 

Other current assets

333

   

364

 

Total current assets

4,200

   

4,511

 
       

Other assets:

     

Restricted cash

15

   

3

 

Due from unconsolidated affiliates

674

   

780

 

Regulatory assets

2,010

   

1,822

 

Nuclear decommissioning trusts

1,014

   

1,019

 

Investment in Oncor Holdings

12,553

   

12,440

 

Other investments

1,505

   

1,388

 

Goodwill

1,602

   

1,602

 

Other intangible assets

397

   

202

 

Dedicated assets in support of certain benefit plans

494

   

512

 

Insurance receivable for Aliso Canyon costs

414

   

445

 

Deferred income taxes

132

   

136

 

Greenhouse gas allowances

181

   

101

 

Right-of-use assets – operating leases

528

   

543

 

Wildfire fund

356

   

363

 

Other long-term assets

765

   

753

 

Total other assets

22,640

   

22,109

 

Property, plant and equipment, net

40,981

   

40,003

 

Total assets

$

67,821

   

$

66,623

 
   

(1)

Derived from audited financial statements.

 

SEMPRA ENERGY

Table B (Continued)

       

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

     
 

March 31,
2021

 

December 31,

2020(1)

 

(unaudited)

   

LIABILITIES AND EQUITY

     

Current liabilities:

     

Short-term debt

$

1,817

   

$

885

 

Accounts payable – trade

1,354

   

1,359

 

Accounts payable – other

141

   

154

 

Due to unconsolidated affiliates

42

   

45

 

Dividends and interest payable

595

   

551

 

Accrued compensation and benefits

273

   

446

 

Regulatory liabilities

437

   

140

 

Current portion of long-term debt and finance leases

505

   

1,540

 

Reserve for Aliso Canyon costs

152

   

150

 

Greenhouse gas obligations

555

   

553

 

Other current liabilities

1,004

   

1,016

 

Total current liabilities

6,875

   

6,839

 
       

Long-term debt and finance leases

22,023

   

21,781

 
       

Deferred credits and other liabilities:

     

Due to unconsolidated affiliates

258

   

234

 

Pension and other postretirement benefit plan obligations, net of plan assets

1,069

   

1,059

 

Deferred income taxes

3,114

   

2,871

 

Regulatory liabilities

3,333

   

3,372

 

Reserve for Aliso Canyon costs

285

   

301

 

Asset retirement obligations

3,121

   

3,113

 

Greenhouse gas obligations

41

   

 

Deferred credits and other

2,094

   

2,119

 

Total deferred credits and other liabilities

13,315

   

13,069

 

Equity:

     

Sempra Energy shareholders' equity

23,999

   

23,373

 

Preferred stock of subsidiary

20

   

20

 

Other noncontrolling interests

1,589

   

1,541

 

Total equity

25,608

   

24,934

 

Total liabilities and equity

$

67,821

   

$

66,623

 
   

(1)

Derived from audited financial statements.

 

SEMPRA ENERGY

Table C

       

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

     
 

Three months ended March 31,

 

2021

 

2020

 

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

     

Net income

$

928

   

$

947

 

Less: Income from discontinued operations, net of income tax

   

(80)

 

Income from continuing operations, net of income tax

928

   

867

 

Adjustments to reconcile net income to net cash provided by operating activities

446

   

175

 

Net change in working capital components

84

   

217

 

Distributions from investments

208

   

73

 

Insurance receivable for Aliso Canyon costs

31

   

(172)

 

Changes in other noncurrent assets and liabilities, net

(195)

   

90

 

Net cash provided by continuing operations

1,502

   

1,250

 

Net cash provided by discontinued operations

   

68

 

Net cash provided by operating activities

1,502

   

1,318

 
       

CASH FLOWS FROM INVESTING ACTIVITIES

     

Expenditures for property, plant and equipment

(1,181)

   

(1,010)

 

Expenditures for investments and acquisitions

(115)

   

(86)

 

Proceeds from sale of assets

   

5

 

Purchases of nuclear decommissioning trust assets

(288)

   

(552)

 

Proceeds from sales of nuclear decommissioning trust assets

288

   

552

 

Advances to unconsolidated affiliates

(8)

   

(30)

 

Intercompany activities with discontinued operations, net

   

(3)

 

Other

3

   

8

 

Net cash used in continuing operations

(1,301)

   

(1,116)

 

Net cash used in discontinued operations

   

(65)

 

Net cash used in investing activities

(1,301)

   

(1,181)

 
       

CASH FLOWS FROM FINANCING ACTIVITIES

     

Common dividends paid

(301)

   

(269)

 

Preferred dividends paid

(36)

   

(36)

 

Issuances of common stock

   

11

 

Repurchases of common stock

(37)

   

(57)

 

Issuances of debt (maturities greater than 90 days)

102

   

1,619

 

Payments on debt (maturities greater than 90 days) and finance leases

(1,093)

   

(1,433)

 

Increase in short-term debt, net

932

   

2,127

 

Advances from unconsolidated affiliates

20

   

64

 

Proceeds from sale of noncontrolling interests

7

   

 

Purchases of noncontrolling interests

   

(16)

 

Intercompany activities with discontinued operations, net

   

(2)

 

Other

(1)

   

(5)

 

Net cash (used in) provided by continuing operations

(407)

   

2,003

 

Net cash provided by discontinued operations

   

111

 

Net cash (used in) provided by financing activities

(407)

   

2,114

 
       

Effect of exchange rate changes in continuing operations

(1)

   

(6)

 

Effect of exchange rate changes in discontinued operations

   

(8)

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(1)

   

(14)

 
       

(Decrease) increase in cash, cash equivalents and restricted cash, including discontinued operations

(207)

   

2,237

 

Cash, cash equivalents and restricted cash, including discontinued operations, January 1

985

   

217

 

Cash, cash equivalents and restricted cash, including discontinued operations, March 31

$

778

   

$

2,454

 

 

SEMPRA ENERGY

Table D

 

SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS

(Dollars in millions)

     
 

Three months ended March 31,

 

2021

 

2020

 

(unaudited)

Earnings (Losses) Attributable to Common Shares

     

SDG&E

$

212

   

$

262

 

SoCalGas

407

   

303

 

Sempra Texas Utilities

135

   

105

 

Sempra Mexico

57

   

191

 

Sempra LNG

146

   

75

 

Parent and other

(83)

   

(248)

 

Discontinued operations

   

72

 

Total

$

874

   

$

760

 
       
       
 

Three months ended March 31,

 

2021

 

2020

 

(unaudited)

Capital Expenditures, Investments and Acquisitions

     

SDG&E

$

555

   

$

402

 

SoCalGas

459

   

388

 

Sempra Texas Utilities

50

   

86

 

Sempra Mexico

142

   

170

 

Sempra LNG

89

   

47

 

Parent and other

1

   

3

 

Total

$

1,296

   

$

1,096

 

 

SEMPRA ENERGY

Table E

 

OTHER OPERATING STATISTICS

 

Three months ended March 31,

 

2021

 

2020

 

 

(unaudited)

UTILITIES

     

SDG&E and SoCalGas

     

   Gas sales (Bcf)(1)

127

   

129

 

   Transportation (Bcf)(1)

137

   

148

 

   Total deliveries (Bcf)(1)

264

   

277

 
       

Total gas customer meters (thousands)

6,975

   

6,933

 
       

SDG&E

     

   Electric sales (millions of kWhs)(1)

3,289

   

3,460

 

Direct Access and Community Choice Aggregation (millions of kWhs)

813

   

769

 

   Total deliveries (millions of kWhs)(1)

4,102

   

4,229

 
       

Total electric customer meters (thousands)

1,486

   

1,475

 
       

Oncor(2)

     

Total deliveries (millions of kWhs)

30,677

   

30,420

 

Total electric customer meters (thousands)

3,781

   

3,703

 
       

Ecogas

     

Natural gas sales (Bcf)

1

   

1

 

Natural gas customer meters (thousands)

136

   

135

 
       
       

ENERGY-RELATED BUSINESSES

     

Power generated and sold

     

Sempra Mexico

     

Termoeléctrica de Mexicali (TdM) (millions of kWhs)

845

   

826

 

   Wind and solar (millions of kWhs)(3)

543

   

422

 
   

(1)

Include intercompany sales.

(2)

Includes 100% of the electric deliveries and customer meters of Oncor Electric Delivery Company LLC (Oncor), in which we hold an indirect 80.25% interest through our investment in Oncor Electric Delivery Holdings Company LLC.

(3)

Includes 50% of the total power generated and sold at the Energía Sierra Juárez wind power generation facility through March 19, 2021. As of March 19, 2021, ESJ became a wholly owned, consolidated subsidiary of IEnova.

 

SEMPRA ENERGY

Table F (Unaudited)

                             

STATEMENTS OF OPERATIONS DATA BY SEGMENT

 

(Dollars in millions)

 

Three months ended March 31, 2021

SDG&E

 

SoCalGas

 

Sempra
Texas
Utilities

 

Sempra
Mexico

 

Sempra LNG

 

Consolidating
Adjustments,
Parent & Other

   

Total

                             

Revenues

$

1,337

   

$

1,508

   

$

   

$

367

   

$

196

   

$

(149)

     

$

3,259

 

Cost of sales and other expenses

(801)

   

(834)

   

(2)

   

(195)

   

(139)

   

127

     

(1,844)

 

Depreciation and amortization

(213)

   

(173)

   

   

(51)

   

(3)

   

(2)

     

(442)

 

Other income (expense), net

35

   

39

   

   

(43)

   

   

4

     

35

 

Income (loss) before interest and tax(1)

358

   

540

   

(2)

   

78

   

54

   

(20)

     

1,008

 

Net interest (expense) income

(101)

   

(39)

   

   

(26)

   

6

   

(80)

     

(240)

 

Income tax (expense) benefit

(45)

   

(94)

   

   

(8)

   

(49)

   

38

     

(158)

 

Equity earnings, net

   

   

137

   

47

   

134

   

     

318

 

(Earnings) losses attributable to noncontrolling interests

   

   

   

(34)

   

1

   

     

(33)

 

Preferred dividends

   

   

   

   

   

(21)

     

(21)

 

Earnings (losses) attributable to common shares

$

212

   

$

407

   

$

135

   

$

57

   

$

146

   

$

(83)

     

$

874

 
                             
                             

Three months ended March 31, 2020

SDG&E

 

SoCalGas

 

Sempra
Texas
Utilities

 

Sempra
Mexico

 

Sempra LNG

 

Consolidating
Adjustments,
Parent & Other

   

Total

                             

Revenues

$

1,269

   

$

1,395

   

$

   

$

309

   

$

123

   

$

(67)

     

$

3,029

 

Cost of sales and other expenses

(679)

   

(872)

   

(1)

   

(137)

   

(87)

   

63

     

(1,713)

 

Depreciation and amortization

(201)

   

(159)

   

   

(47)

   

(2)

   

(3)

     

(412)

 

Other income (expense), net

31

   

30

   

   

(283)

   

   

(32)

     

(254)

 

Income (loss) before interest and tax(1)

420

   

394

   

(1)

   

(158)

   

34

   

(39)

     

650

 

Net interest (expense) income

(100)

   

(39)

   

   

(14)

   

6

   

(106)

     

(253)

 

Income tax (expense) benefit

(58)

   

(52)

   

   

307

   

(23)

   

33

     

207

 

Equity earnings (losses), net

   

   

106

   

200

   

57

   

(100)

     

263

 

(Earnings) losses attributable to noncontrolling interests

   

   

   

(144)

   

1

   

     

(143)

 

Preferred dividends

   

   

   

   

   

(36)

     

(36)

 

Earnings (losses) from continuing operations

$

262

   

$

303

   

$

105

   

$

191

   

$

75

   

$

(248)

     

688

 

Earnings from discontinued operations

                         

72

 

Earnings attributable to common shares

                         

$

760

 
                             
   

(1)

Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

SOURCE Sempra Energy

Media Contact: Linda Pazin, Sempra Energy, (877) 340-8875, media@sempra.com; Financial Contact: Lindsay Gartner, Sempra Energy, (877) 736-7727, investor@sempra.com

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