Sempra Energy Announces First-Quarter 2018 Results

- Leadership Succession Plan Implemented

- Oncor Transaction Completed

- IEnova Awarded $130 Million Liquids Fuel Marine Terminal Project

SAN DIEGO, May 7, 2018 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported first-quarter 2018 earnings of $347 million, or $1.33 per diluted share, compared with first-quarter 2017 earnings of $441 million, or $1.75 per diluted share.

Sempra Energy's first-quarter 2018 earnings included higher financing costs at the parent company. These financing costs were incurred starting in January, primarily related to the anticipated acquisition of a majority stake in Oncor Electric Delivery Company LLC (Oncor), which was completed in early March. First-quarter 2018 consolidated results also reflected $25 million income-tax expense to adjust 2017 provisional amounts related to the Tax Cuts and Jobs Act of 2017.

"During the quarter, we successfully implemented our leadership succession plan, completed the Oncor transaction and continued execution of our capital program in our utility and infrastructure businesses," said Jeffrey W. Martin, CEO of Sempra Energy. "Our underlying business performance was solid and consistent with our expectations."

OPERATING HIGHLIGHTS

On May 1, Martin became Sempra Energy's CEO, while Joseph A. Householder became Sempra Energy's president and chief operating officer and Trevor I. Mihalik became Sempra Energy's executive vice president and chief financial officer. Debra L. Reed announced in March that she would step down as president and CEO of Sempra Energy May 1 and continue as executive chairman of the company until her retirement on Dec. 1. Previously, Martin was Sempra Energy's executive vice president and chief financial officer, Householder was Sempra Energy's corporate group president of infrastructure businesses and Mihalik was Sempra Energy's senior vice president, controller and chief accounting officer.

On March 9, Sempra Energy completed its $9.45 billion acquisition of an approximate 80-percent indirect ownership interest in Oncor, after receiving final regulatory approvals for the transaction. Sempra Energy expects $320 million to $360 million for its portion of partial-year earnings from Oncor in 2018.

Last month, San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) filed supplemental testimony in their 2019 General Rate Case applications regarding impacts of federal tax reform. As a result of tax reform, SoCalGas is projecting reduced customer bills, while SDG&E expects incremental wildfire mitigation investments to substantially offset any bill reductions.

Sempra Energy's Mexican subsidiary IEnova announced April 12 that the company has been awarded a $130 million project to build and operate a liquid fuels marine terminal near Ensenada, Mexico. In connection with the project, IEnova has signed long-term supply contracts with multinational counterparties, including an affiliate of Chevron, for all of the terminal's capacity. The terminal is expected to commence operations in the second half of 2020.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. EDT with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 1980202.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2017 revenues of more than $11 billion. Sempra Energy is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' approximately 20,000 employees serve more than 40 million consumers worldwide.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "assumes," "depends," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "target," "pursue," "outlook," "maintain," or similar expressions or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements.

Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the California Public Utilities Commission (CPUC), U.S. Department of Energy, California Division of Oil, Gas, and Geothermal Resources, Federal Energy Regulatory Commission, U.S. Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, Los Angeles County Department of Public Health, Public Utility Commission of Texas, states, cities and counties, and other regulatory and governmental bodies in the United States and other countries in which we operate; the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget, and risks in obtaining the consent and participation of partners and counterparties; the resolution of civil and criminal litigation and regulatory investigations; deviations from regulatory precedent or practice that result in a reallocation of benefits or burdens among shareholders and ratepayers; denial of approvals of proposed settlements or modifications of settlements; and delays in, or disallowance or denial of, regulatory agency authorizations to recover costs in rates from customers (including with respect to amounts associated with the San Onofre Nuclear Generating Station facility and 2007 wildfires) or regulatory agency approval for projects required to enhance safety and reliability, any of which may raise our cost of capital and materially impair our ability to finance our operations; the greater degree and prevalence of wildfires in California in recent years and risk that we may be found liable for damages regardless of fault, such as in cases where inverse condemnation applies, and risk that we may not be able to recover any such costs in rates from customers in California; the availability of electric power, natural gas and liquefied natural gas, and natural gas pipeline and storage capacity, including disruptions caused by failures in the transmission grid, moratoriums or limitations on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; changes in energy markets; volatility in commodity prices; moves to reduce or eliminate reliance on natural gas; and the impact on the value of our investments in natural gas storage and related assets from low natural gas prices, low volatility of natural gas prices and the inability to procure favorable long-term contracts for storage services; risks posed by actions of third parties who control the operations of our investments, and risks that our partners or counterparties will be unable or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, accidents, equipment failures, computer system outages, explosions, terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of greenhouse gases, radioactive materials and harmful emissions, cause wildfires and subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of insurance, to the extent that such insurance is available or not prohibitively expensive; cybersecurity threats to the energy grid, 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; capital markets and economic conditions, including the availability of credit and the liquidity of our investments; and fluctuations in inflation, interest and currency exchange rates and our ability to effectively hedge the risk of such fluctuations; the impact of recent federal tax reform and uncertainty as to how it may be applied, and our ability to mitigate adverse impacts; actions by credit rating agencies to downgrade our credit ratings or those of our subsidiaries or to place those ratings on negative outlook; changes in foreign and domestic trade policies and laws, including border tariffs, and revisions to international trade agreements, such as the North American Free Trade Agreement, that make us less competitive or impair our ability to resolve trade disputes; the ability to win competitively bid infrastructure projects against a number of strong and aggressive competitors; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company's (SDG&E) electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates due to the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through SDG&E's electric transmission and distribution system and from possible departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation or other forms of distributed and local power generation, and the potential risk of nonrecovery for stranded assets and contractual obligations; the ability to realize the anticipated benefits from our investment in Oncor Electric Delivery Holdings Company LLC (Oncor Holdings); the ability to obtain additional permanent equity financing for the acquisition of our investment in Oncor Holdings on favorable terms; indebtedness we have incurred to fund the acquisition of our investment in Oncor Holdings, which may make it more difficult for us to repay or refinance our debt or may require us to take other actions that may decrease business flexibility and increase borrowing costs; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to its requirement to meet and maintain its regulatory capital structure, or because any of the three major credit rating agencies rates Oncor's senior secured debt securities below BBB (or the equivalent) or Oncor's independent directors or a minority member director determine it is in the best interest of Oncor to retain such amounts to meet future capital expenditures; 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. Investors should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor and IEnova are not regulated by the California Public Utilities Commission.

SEMPRA ENERGY

Table A

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 
 

Three months ended
March 31,

(Dollars in millions, except per share amounts)

2018

 

2017(1)

 

(unaudited)

REVENUES

         

Utilities

$

2,598

   

$

2,698

 

Energy-related businesses

364

   

333

 

Total revenues

2,962

   

3,031

 
           

EXPENSES AND OTHER INCOME

         

Utilities:

         

Cost of electric fuel and purchased power

(546)

   

(527)

 

Cost of natural gas

(348)

   

(485)

 

Energy-related businesses:

         

Cost of natural gas, electric fuel and purchased power

(69)

   

(67)

 

Other cost of sales

(18)

   

(22)

 

Operation and maintenance

(781)

   

(719)

 

Depreciation and amortization

(386)

   

(360)

 

Franchise fees and other taxes

(117)

   

(110)

 

Other income, net

153

   

174

 

Interest income

33

   

6

 

Interest expense

(216)

   

(169)

 

Income before income taxes and equity losses of unconsolidated subsidiaries

667

   

752

 

Income tax expense

(289)

   

(295)

 

Equity losses

(20)

   

(5)

 

Net income

358

   

452

 

Losses (earnings) attributable to noncontrolling interests

17

   

(11)

 

Mandatory convertible preferred stock dividends

(28)

   

 

Earnings attributable to common shares

$

347

   

$

441

 
           

Basic earnings per common share

$

1.34

   

$

1.76

 

Weighted-average number of shares outstanding, basic (thousands)

257,932

   

251,131

 
           

Diluted earnings per common share

$

1.33

   

$

1.75

 

Weighted-average number of shares outstanding, diluted (thousands)

259,490

   

252,246

 
           

Dividends declared per share of common stock

$

0.90

   

$

0.82

 
 

(1) 

As adjusted for the retrospective adoption of ASU 2017-07 and a reclassification to conform to current year presentation.

SEMPRA ENERGY
Table A (Continued)

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

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2018 and 2017 as follows:

Three months ended March 31, 2018:

  • $(25) million income tax expense in 2018 to adjust Tax Cuts and Jobs Act of 2017 (TCJA) provisional amounts

Three months ended March 31, 2017:

  • $3 million deferred income tax benefit on Termoeléctrica de Mexicali (TdM) assets held for sale at Sempra Mexico

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and/or nature of the excluded items, management believes that these non-GAAP financial measures provide a meaningful comparison of the performance of Sempra Energy's business operations from 2018 to 2017 and to 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 Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.    

 

Income tax
expense

Earnings

 

Income tax
benefit (1)

Noncontrolling
interests

Earnings

(Dollars in millions, except per share amounts)

Three months ended March 31, 2018

 

Three months ended March 31, 2017

Sempra Energy GAAP Earnings

 

$

347

       

$

441

 

Excluded items:

           

Impact from the TCJA

$

25

 

25

   

$

 

$

 

 

Deferred income tax benefit associated with TdM

 

   

(5)

 

2

 

(3)

 

Sempra Energy Adjusted Earnings

 

$

372

       

$

438

 
             

Diluted earnings per common share:

           

Sempra Energy GAAP Earnings

 

$

1.33

       

$

1.75

 

Sempra Energy Adjusted Earnings

 

$

1.43

       

$

1.74

 

Weighted-average number of shares outstanding, diluted (thousands)

 

259,490

       

252,246

 
   

(1) 

Income taxes associated with TdM were calculated based on the applicable statutory tax rate, including translation from historic to current exchange rates.

 

SEMPRA ENERGY

Table B

             

CONDENSED CONSOLIDATED BALANCE SHEETS

       

(Dollars in millions)

March 31, 2018

 

December 31, 2017(1)

 

(unaudited)

   

Assets

     

Current assets:

     

Cash and cash equivalents

$

239

   

$

288

 

Restricted cash

54

   

62

 

Accounts receivable, net

1,681

   

1,584

 

Due from unconsolidated affiliates

63

   

37

 

Income taxes receivable

118

   

110

 

Inventories

285

   

307

 

Regulatory assets

241

   

325

 

Fixed-price contracts and other derivatives

111

   

66

 

Greenhouse gas allowances

301

   

299

 

Assets held for sale

135

   

127

 

Other

166

   

136

 

Total current assets

3,394

   

3,341

 
       

Other assets:

     

Restricted cash

14

   

14

 

Due from unconsolidated affiliates

666

   

598

 

Regulatory assets

1,597

   

1,517

 

Nuclear decommissioning trusts

1,017

   

1,033

 

Investment in Oncor Holdings

9,176

   

 

Other investments

2,590

   

2,527

 

Goodwill

2,406

   

2,397

 

Other intangible assets

596

   

596

 

Dedicated assets in support of certain benefit plans

421

   

455

 

Insurance receivable for Aliso Canyon costs

447

   

418

 

Deferred income taxes

117

   

170

 

Greenhouse gas allowances

154

   

93

 

Sundry

865

   

792

 

Total other assets

20,066

   

10,610

 

Property, plant and equipment, net

37,025

   

36,503

 

Total assets

$

60,485

   

$

50,454

 
       

Liabilities and Equity

     

Current liabilities:

     

Short-term debt

$

3,665

   

$

1,540

 

Accounts payable

1,205

   

1,523

 

Due to unconsolidated affiliates

6

   

7

 

Dividends and interest payable

494

   

342

 

Accrued compensation and benefits

253

   

439

 

Regulatory liabilities

210

   

109

 

Current portion of long-term debt

1,871

   

1,427

 

Fixed-price contracts and other derivatives

69

   

109

 

Customer deposits

164

   

162

 

Reserve for Aliso Canyon costs

122

   

84

 

Greenhouse gas obligations

301

   

299

 

Liabilities held for sale

52

   

49

 

Other

697

   

545

 

Total current liabilities

9,109

   

6,635

 

Long-term debt

20,863

   

16,445

 
       

Deferred credits and other liabilities:

     

Customer advances for construction

149

   

150

 

Due to unconsolidated affiliates

35

   

35

 

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

1,215

   

1,148

 

Deferred income taxes

2,654

   

2,767

 

Deferred investment tax credits

26

   

28

 

Regulatory liabilities

3,922

   

3,922

 

Asset retirement obligations

2,766

   

2,732

 

Fixed-price contracts and other derivatives

275

   

316

 

Greenhouse gas obligations

19

   

 

Deferred credits and other

1,147

   

1,136

 

Total deferred credits and other liabilities

12,208

   

12,234

 

Equity:

     

Sempra Energy shareholders' equity

15,844

   

12,670

 

Preferred stock of subsidiary

20

   

20

 

Other noncontrolling interests

2,441

   

2,450

 

Total equity

18,305

   

15,140

 

Total liabilities and equity

$

60,485

   

$

50,454

 
   

(1)

Derived from audited financial statements.

 

SEMPRA ENERGY

Table C

             

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

             
       

Three months ended March 31,

(Dollars in millions)

 

2018

 

2017(1)

   

(unaudited)

Cash Flows from Operating Activities

       

Net income

 

$

358

   

$

452

 

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

       

  Depreciation and amortization

 

386

   

360

 

  Deferred income taxes and investment tax credits

 

229

   

268

 

  Equity losses

 

20

   

5

 

  Fixed-price contracts and other derivatives

 

(35)

   

(106)

 

  Other

 

46

   

(22)

 

Net change in other working capital components

 

84

   

84

 

Insurance receivable for Aliso Canyon costs

 

(29)

   

(15)

 

Changes in other assets

 

(107)

   

(41)

 

Changes in other liabilities

 

14

   

19

 

  Net cash provided by operating activities

 

966

   

1,004

 
         

Cash Flows from Investing Activities

       

Expenditures for property, plant and equipment

 

(1,035)

   

(992)

 

Expenditures for investments and acquisitions,
   net of cash and cash equivalents acquired

 

(9,617)

   

(59)

 

Distributions from investments

 

8

   

17

 

Purchases of nuclear decommissioning trust assets

 

(210)

   

(350)

 

Proceeds from sales by nuclear decommissioning trusts

 

210

   

357

 

Advances to unconsolidated affiliates

 

(83)

   

(5)

 

Repayments of advances to unconsolidated affiliates

 

69

   

2

 

Other

 

26

   

4

 

  Net cash used in investing activities

 

(10,632)

   

(1,026)

 
         

Cash Flows from Financing Activities

       

Common dividends paid

 

(194)

   

(176)

 

Issuances of mandatory convertible preferred stock, net of $32 in offering costs

 

1,693

   

 

Issuances of common stock, net of $24 in offering costs

 

1,278

   

17

 

Repurchases of common stock

 

(19)

   

(14)

 

Issuances of debt (maturities greater than 90 days)

 

5,988

   

542

 

Payments on debt (maturities greater than 90 days)

 

(193)

   

(313)

 

Increase (decrease) in short-term debt, net

 

1,140

   

(97)

 

Settlement of cross-currency swaps

 

(33)

   

 

Other

 

(52)

   

(5)

 

  Net cash provided by (used in) financing activities

 

9,608

   

(46)

 
         

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

 

1

   

10

 
         

Decrease in cash, cash equivalents and restricted cash

 

(57)

   

(58)

 

Cash, cash equivalents and restricted cash, January 1

 

364

   

425

 

Cash, cash equivalents and restricted cash, March 31

 

$

307

   

$

367

 
   

(1) 

As adjusted for the retrospective adoption of ASU 2016-18.

 

SEMPRA ENERGY

Table D

       

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

       
 

Three months ended
March 31,

(Dollars in millions)

2018

 

2017

 

(unaudited)

Earnings (Losses)

     

Sempra Utilities:

     

  San Diego Gas & Electric

$

170

   

$

155

 

  Southern California Gas

225

   

203

 

  Sempra Texas Utility

15

   

 

  Sempra South American Utilities

46

   

47

 

Sempra Infrastructure:

     

  Sempra Mexico

20

   

48

 

  Sempra Renewables

21

   

11

 

  Sempra LNG & Midstream

(16)

   

1

 

Parent and other

(134)

   

(24)

 

  Total

$

347

   

$

441

 
       
       
 

Three months ended
March 31,

(Dollars in millions)

2018

 

2017

 

(unaudited)

Capital Expenditures, Investments and Acquisitions

     

Sempra Utilities:

     

  San Diego Gas & Electric

$

475

   

$

418

 

  Southern California Gas

403

   

357

 

  Sempra South American Utilities

56

   

43

 

Sempra Infrastructure:

     

  Sempra Mexico

87

   

140

 

  Sempra Renewables

31

   

69

 

  Sempra LNG & Midstream

46

   

15

 

Parent and other

9,554

   

9

 

  Total

$

10,652

   

$

1,051

 

 

SEMPRA ENERGY

Table E

 

OTHER OPERATING STATISTICS (Unaudited)

 
 

Three months ended
March 31,

UTILITIES

2018

 

2017

       

SDG&E and SoCalGas

     
 

Gas sales (Bcf)(1)

113

   

126

 
 

Transportation (Bcf)(1)

147

   

156

 
 

Total deliveries (Bcf)(1)

260

   

282

 
       
 

Total gas customer meters (thousands)

6,854

   

6,816

 
               

SDG&E

     
 

Electric sales (millions of kWhs)(1)

3,603

   

3,764

 
 

Direct access (millions of kWhs)

745

   

787

 
 

Total deliveries (millions of kWhs)(1)

4,348

   

4,551

 
       
 

Total electric customer meters (thousands)

1,449

   

1,436

 
       

Oncor(2)

     
 

Total deliveries (millions of kWhs)

6,655

   

 
 

Total electric customer meters (thousands)

3,572

   

 
       

Ecogas

     
 

Natural gas sales (Bcf)

6

   

8

 
 

Natural gas customer meters (thousands)

121

   

119

 
       

Chilquinta Energía

     
 

Electric sales (millions of kWhs)

798

   

811

 
 

Tolling (millions of kWhs)

62

   

20

 
 

Total deliveries (millions of kWhs)

860

   

831

 
         
 

Electric customer meters (thousands)

709

   

689

 
       

Luz Del Sur

     
 

Electric sales (millions of kWhs)

1,742

   

1,894

 
 

Tolling (millions of kWhs)

558

   

445

 
 

Total deliveries (millions of kWhs)

2,300

   

2,339

 
         
 

Electric customer meters (thousands)

1,109

   

1,080

 
       
       

ENERGY-RELATED BUSINESSES

     
       

Power generated and sold (millions of kWhs)

     

Sempra Mexico(3)

1,221

   

1,055

 

Sempra Renewables(4)

1,192

   

1,014

 
   

(1) 

Includes intercompany sales.

(2) 

Includes 100 percent of the electric deliveries and customer meters of Oncor Electric Delivery Company LLC (Oncor), in which we hold an 80.25-percent interest through our March 2018 acquisition of our equity method investment in Oncor Electric Delivery Holdings Company LLC (Oncor Holdings).

(3) 

Includes power generated and sold at the Termoeléctrica de Mexicali natural gas-fired power plant, which is currently held for sale, and the Ventika wind power generation facilities. Also includes 50 percent of total power generated and sold at the Energía Sierra Juárez wind power generation facility, in which Sempra Energy has a 50-percent ownership interest. Energía Sierra Juárez is not consolidated within Sempra Energy, and the related investment is accounted for under the equity method.

(4)  

Includes 50 percent of total power generated and sold related to solar and wind projects in which Sempra Energy has a 50-percent ownership. These subsidiaries are not consolidated within Sempra Energy, and the related investments are accounted for under the equity method.

 

SEMPRA ENERGY

Table F (Unaudited)

STATEMENTS OF OPERATIONS DATA BY SEGMENT

                                     

Three months ended March 31, 2018

(Dollars in millions)

SDG&E

 

SoCalGas

 

Sempra
Texas
Utility

 

Sempra
South
American
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
LNG &
Midstream

 

Consolidating
Adjustments,
Parent &
Other

   

Total

                                     

Revenues

$

1,055

   

$

1,126

   

$

   

$

426

   

$

308

   

$

25

   

$

104

   

$

(82)

     

$

2,962

 

Cost of sales and other expenses

(641)

   

(713)

   

   

(337)

   

(129)

   

(21)

   

(102)

   

64

     

(1,879)

 

Depreciation and amortization

(166)

   

(135)

   

   

(14)

   

(43)

   

(13)

   

(11)

   

(4)

     

(386)

 

Other income (expense), net

28

   

33

   

   

1

   

93

   

   

   

(2)

     

153

 

Income (loss) before interest and tax (1)

276

   

311

   

   

76

   

229

   

(9)

   

(9)

   

(24)

     

850

 

Net interest (expense) income (2)

(51)

   

(27)

   

   

(4)

   

(15)

   

(3)

   

5

   

(116)

     

(211)

 

Income tax (expense) benefit

(56)

   

(59)

   

   

(20)

   

(155)

   

7

   

(12)

   

6

     

(289)

 

Equity earnings (losses), net

   

   

15

   

1

   

(41)

   

5

   

   

     

(20)

 

Losses (earnings) attributable to noncontrolling interests

1

   

   

   

(7)

   

2

   

21

   

   

     

17

 

Earnings (losses)

$

170

   

$

225

   

$

15

   

$

46

   

$

20

   

$

21

   

$

(16)

   

$

(134)

     

$

347

 
                                     

Three months ended March 31, 2017

(Dollars in millions)

SDG&E

 

SoCalGas

 

Sempra
Texas
Utility

 

Sempra
South
American
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
LNG &
Midstream

 

Consolidating
Adjustments,
Parent &
Other

   

Total

                                     

Revenues

$

1,057

   

$

1,241

   

$

   

$

412

   

$

264

   

$

22

   

$

132

   

$

(97)

     

$

3,031

 

Cost of sales and other expenses(3)

(620)

   

(803)

   

   

(326)

   

(121)

   

(15)

   

(128)

   

83

     

(1,930)

 

Depreciation and amortization

(163)

   

(126)

   

   

(13)

   

(36)

   

(9)

   

(10)

   

(3)

     

(360)

 

Other income, net(3)

22

   

14

   

   

3

   

127

   

   

1

   

7

     

174

 

Income (loss) before interest and tax (1)

296

   

326

   

   

76

   

234

   

(2)

   

(5)

   

(10)

     

915

 

Net interest (expense) income (2)

(49)

   

(25)

   

   

(4)

   

(30)

   

(3)

   

6

   

(58)

     

(163)

 

Income tax (expense) benefit

(90)

   

(98)

   

   

(19)

   

(142)

   

11

   

(1)

   

44

     

(295)

 

Equity earnings (losses), net

   

   

   

1

   

(9)

   

2

   

1

   

     

(5)

 

(Earnings) losses attributable to noncontrolling interests

(2)

   

   

   

(7)

   

(5)

   

3

   

   

     

(11)

 

Earnings (losses)

$

155

   

$

203

   

$

   

$

47

   

$

48

   

$

11

   

$

1

   

$

(24)

     

$

441

 
   

(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.

(2) 

Includes interest income, interest expense and preferred dividends.

(3) 

As adjusted for the retrospective adoption of ASU 2017-07.

[SRE-F]

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SOURCE Sempra Energy

Media Contact: Doug Kline, Sempra Energy, (877) 340-8875, or Financial Contact: Patrick Billings, Sempra Energy, (877) 736-7727, investor@sempra.com

Category

Sempra Energy , Financial News , Sempra Renewables