Sempra Energy Reports First-Quarter 2020 Earnings Results

- Providing Safe and Essential Services Through COVID-19 Pandemic

- Delivering on Strategic Focus, Business Resiliency and Operating Discipline to Drive Strong Results and Outlook

- Maintaining Strong Liquidity Position

SAN DIEGO, May 4, 2020 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported first-quarter 2020 earnings of $760 million, or $2.53 per diluted share, compared to first-quarter 2019 earnings of $441 million, or $1.59 per diluted share. On an adjusted basis, the company's first-quarter 2020 earnings were $932 million, or $3.08 per diluted share, compared to $534 million, or $1.92 per diluted share, in the first quarter of 2019.

"In the midst of a global pandemic, we are reminded that our employees face health risks in their daily lives and unique challenges in performing their jobs. That is why our first priority has been, and continues to be, the safety of our employees, customers and communities," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "We remain focused on advancing our strategic priorities and committed to delivering safe and reliable energy to over 35 million consumers, including the many hospitals and primary care facilities across our communities."

"Our strong financial results this quarter reflect the focused execution of our strategic plan," added Martin. "We plan to continue to strengthen our balance sheet and maintain solid liquidity across our companies, while pursuing our disciplined growth plan."

The reported financial results reflect certain significant items, as described on an after-tax basis in the following table of GAAP earnings reconciled to adjusted earnings for the first quarter of 2020 and 2019.

             
     

 Three months ended 

 
     

 March 31, 

 
 

(Dollars, except EPS, and shares, in millions)

 

2020

 

2019

 
     

(Unaudited)

 
 

GAAP Earnings

 

$              760

 

$              441

 
             
 

Impacts Associated with Aliso Canyon Litigation

 

72

 

-

 
             
 

Losses from Investment in RBS Sempra Commodities LLP

 

100

 

-

 
             
 

Tax Impacts from Expected Sale of South American Businesses

 

-

 

93

 
             
 

Adjusted Earnings(1)

 

$              932

 

$              534

 
             
             
 

GAAP Diluted Weighted-Average Common Shares Outstanding

 

314

 

277

 
 

GAAP Earnings Per Diluted Common Share(2)

 

$             2.53

 

$             1.59

 
             
 

Adjusted Diluted Weighted-Average Common Shares Outstanding(1),(3)

 

314

 

291

 
 

Adjusted Earnings Per Diluted Common Share(1),(2),(3)

 

$             3.08

 

$             1.92

 
             

 

 

   

1)

Represents a non-GAAP financial measure. See Table A for information regarding non-GAAP financial measures.

2)

To calculate Q1-2020 GAAP earnings per common share (EPS) and Adjusted EPS, preferred stock dividends of $36 million
are added back to GAAP Earnings and Adjusted Earnings because of the dilutive effect of the company's Series A and Series
B mandatory convertible preferred stock in the quarter.

3)

To calculate Q1-2019 Adjusted EPS, preferred stock dividends of $26 million are added back to Adjusted Earnings and approximately
14 million shares are included in Adjusted Diluted Weighted-Average Common Shares Outstanding because of the dilutive effect of the
company's Series A mandatory convertible preferred stock in the quarter.

 

 

 

Responding to COVID-19
As part of its commitment to deliver energy with purpose, Sempra Energy is dedicated to the safety and well-being of its employees, customers, partners and communities. The company has activated an enterprise-wide Task Force designed to respond to the impacts of the global pandemic and identify and mitigate risks across the Sempra Energy family of companies. Sempra Energy's operating companies are providing critical energy services to hospitals, healthcare facilities, first responders and others on the frontline of the crisis.

The Sempra Energy family of companies has donated approximately $8 million to COVID-19 relief efforts in areas where they operate, including California, Texas, Louisiana, Mexico and South America. This includes a $1.75 million Nonprofit Hardship Fund created by the Sempra Energy Foundation to help small to medium-sized nonprofits serve critical needs related to COVID-19.

Strengthening Balance Sheet and Liquidity Position with Peru Sale
Last month, Sempra Energy announced the completion of the sale of its Peruvian businesses, including its 83.6% interest in Luz del Sur S.A.A., to an affiliate of China Yangtze Power International (Hongkong) Co., Limited, generating approximately $3.6 billion in total cash proceeds, subject to post-closing adjustments. Sempra Energy continues to advance the sale of its Chilean assets, including its 100% interest in Chilquinta Energía S.A., to China State Grid International Development Limited for $2.23 billion in total cash proceeds, subject to adjustments and satisfaction of closing conditions.

The completion of these transactions will conclude Sempra Energy's planned sale of its South American businesses. Proceeds from the sales will be used to further strengthen the company's balance sheet and help fund the company's record capital plan.

Providing Essential Services at U.S. Utility Infrastructure Businesses
Sempra Energy's U.S. utility infrastructure businesses continue to deliver safe and reliable service to their customers. In March 2020, the Federal Energy Regulatory Commission approved the cost of capital settlement terms that SDG&E and all settling parties reached in October 2019. The settlement agreement provides for a return on equity (ROE) of 10.6%, consisting of a base ROE of 10.1% plus an additional 50 basis points for participation in the California Independent System Operator service area. Additionally, SDG&E and SoCalGas filed a joint petition for modification in April 2020 to revise their 2019 General Rate Case (GRC) to add two additional attrition years, resulting in a transitional five-year GRC period from 2019 to 2023.

Oncor Electric Delivery Company LLC (Oncor) continues to execute on its five-year capital plan of approximately $11.9 billion. Approximately 90% of projects in Oncor's transmission budget through 2021 do not need further approvals before commencing construction. These projects are designed to support growth, as well as strengthen and expand the grid in Oncor's service territory.

Advancing Energy Infrastructure Projects
Sempra Energy recently announced that Cameron LNG has reached the final commissioning stage for Phase 1 of the liquefaction-export project in Hackberry, Louisiana, as the third of three liquefaction trains for Phase 1 has achieved mechanical completion, introduced feed gas and initiated the start-up process. This achievement keeps the project on track to produce liquefied natural gas (LNG) from the third and final train in the second quarter of 2020 and begin commercial operations in the third quarter of 2020. Cameron LNG achieved commercial operations of Train 1 and Train 2 under its tolling agreements in August 2019 and February 2020, respectively.

Sempra Energy's share of full-year run-rate earnings from the Phase 1 project is anticipated to be between $400 million and $450 million annually starting in 2021 when all three trains are in commercial operations under Cameron LNG's tolling agreements. Sempra Energy indirectly owns 50.2% of Cameron LNG. Cameron LNG is jointly owned by affiliates of Sempra LNG, TOTAL S.A., Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha.

In March, Port Arthur LNG, LLC and Bechtel Oil, Gas, and Chemicals, Inc. signed a fixed-price EPC contract for the Port Arthur LNG liquefaction project under development in Jefferson County, Texas. Given current market dynamics, a final investment decision is now expected for the project in 2021.

Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) continues to develop infrastructure projects that provide consumers in Mexico access to cleaner, more reliable energy. IEnova is actively monitoring the current situation but as a result of the current pandemic, it is reasonable to expect that some of the construction capital will be deferred from 2020 to 2021.

Earnings Guidance
Sempra Energy's updated full-year 2020 GAAP EPS guidance range is $11.88 to $13.02. The updated range reflects a revision to the estimated gain on the sale of the company's South American businesses and litigation-related charges at SoCalGas and the company's prior investment in RBS Sempra Commodities LLP. Today, the company is reaffirming its full-year 2020 adjusted EPS guidance range of $6.70 to $7.50, and is reaffirming its full-year 2021 EPS guidance range of $7.50 to $8.10.

 

 

 

Non-GAAP Financial Measures
Non-GAAP financial measures include Sempra Energy's adjusted earnings and adjusted EPS for the first quarters of 2020 and 2019, adjusted diluted weighted-average common shares outstanding for the first quarter of 2019, and full-year 2020 adjusted EPS guidance. 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 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 8909332.

 

 

 

About Sempra Energy
Sempra Energy's mission is to be North America's premier energy infrastructure company. With more than $60 billion in total assets in 2019, the San Diego-based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' more than 18,000 employees deliver energy with purpose to over 35 million consumers worldwide. The company is focused on the most attractive markets in North America, including California, Texas, Mexico and the LNG export market. Sempra Energy has been consistently recognized for its leadership in diversity and inclusion, and sustainability, and is a member of the S&P 500 Utilities Index and the Dow Jones Utility Index. The company was also named one of the "World's Most Admired Companies" for 2020 by Fortune Magazine.

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. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees of performance. Future results may differ materially from those expressed in the 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," "target," "pursue," "outlook," "maintain," or similar expressions, or when we discuss our guidance, strategy, goals, vision, mission, opportunities, projections or intentions.

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: California wildfires and the risk that we may be found liable for damages regardless of fault and the risk that we may not be able to recover any such costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances of permits and other authorizations, renewal of franchises, and other actions by the Comisión Federal de Electricidad, California Public Utilities Commission, U.S. Department of Energy, Public Utility Commission of Texas, regulatory and governmental bodies and jurisdictions in the U.S. and other countries in which we operate; 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 and completing construction projects on schedule and budget, (ii) obtaining the consent of partners, (iii) counterparties' financial or other ability to fulfill contractual commitments, (iv) the ability to complete contemplated acquisitions and/or divestitures, and (v) the ability to realize anticipated benefits from any of these efforts once completed; the impact of the COVID-19 pandemic on our (i) ability to commence and complete capital and other projects and obtain regulatory approvals, (ii) supply chain and current and prospective counterparties, contractors, customers, employees and partners, (iii) liquidity, resulting from bill payment challenges experienced by our customers, decreased stability and accessibility of the capital markets and other factors, and (iv) ability to sustain operations and satisfy compliance requirements due to social distancing measures or if employee absenteeism were to increase significantly; the resolution of civil and criminal litigation, regulatory investigations and proceedings, and arbitrations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow at favorable interest rates; moves to reduce or eliminate reliance on natural gas and the impact of the extreme volatility and unprecedented decline of oil prices on our businesses and development projects; weather, natural disasters, accidents, equipment failures, 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 (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 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 or injection of natural gas from or into storage facilities, and equipment failures; 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; expropriation of assets, the failure of foreign governments and state-owned entities to honor the terms of 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 power generation and from departing retail load resulting from customers transferring to Direct Access, Community Choice Aggregation or other forms of distributed power generation 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, interest and inflation rates and commodity prices and our ability to effectively hedge the risk of such volatility; changes in trade policies, laws and regulations, including tariffs and revisions to or replacement of international trade agreements, such as the North American Free Trade Agreement, that may increase our costs or impair our ability to resolve trade disputes; the impact of changes to federal and state tax laws and our ability to mitigate adverse impacts; 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 South American Utilities, 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 Southern California Gas Company, and Sempra South American Utilities, Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, 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; shares in thousands)

2020

 

2019

 

(unaudited)

REVENUES

     

Utilities

$

2,665

   

$

2,515

 

Energy-related businesses

364

   

383

 

Total revenues

3,029

   

2,898

 
       

EXPENSES AND OTHER INCOME

     

Utilities:

     

Cost of natural gas

(337)

   

(531)

 

Cost of electric fuel and purchased power

(229)

   

(256)

 

Energy-related businesses cost of sales

(59)

   

(108)

 

Operation and maintenance

(951)

   

(832)

 

Depreciation and amortization

(412)

   

(383)

 

Franchise fees and other taxes

(137)

   

(130)

 

Other (expense) income, net

(254)

   

82

 

Interest income

27

   

21

 

Interest expense

(280)

   

(260)

 

Income from continuing operations before income taxes and equity earnings

397

   

501

 

Income tax benefit (expense)

207

   

(42)

 

Equity earnings

263

   

101

 

Income from continuing operations, net of income tax

867

   

560

 

Income (loss) from discontinued operations, net of income tax

80

   

(42)

 

Net income

947

   

518

 

Earnings attributable to noncontrolling interests

(151)

   

(41)

 

Mandatory convertible preferred stock dividends

(36)

   

(36)

 

Earnings attributable to common shares

$

760

   

$

441

 
       

Basic earnings per common share (EPS):

     

Earnings

$

2.60

   

$

1.60

 

Weighted-average common shares outstanding

292,790

   

274,674

 
       

Diluted EPS:

     

Earnings

$

2.53

   

$

1.59

 

Weighted-average common shares outstanding

313,925

   

277,228

 

SEMPRA ENERGY
Table A (Continued)

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

Sempra Energy Adjusted Earnings and Adjusted Diluted Earnings Per Common Share (Adjusted EPS) exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2020 and 2019 as follows:

Three months ended March 31, 2020:

  • $(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

Three months ended March 31, 2019:
Associated with holding the South American businesses for sale:

  • $(103) million income tax expense from outside basis differences in our South American businesses primarily related to the change in our indefinite reinvestment assertion from our decision in January 2019 to hold those businesses for sale
  • $10 million income tax benefit to reduce a valuation allowance against certain net operating loss (NOL) carryforwards as a result of our decision to sell our South American businesses

Sempra Energy Adjusted Earnings, Weighted-Average Common Shares Outstanding – Adjusted and Adjusted EPS 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 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, Weighted-Average Common Shares Outstanding – GAAP and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

Pretax amount

Income tax
(benefit) expense(1)

Earnings

 

Income tax
expense
(benefit)(1)

Earnings

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

Three months ended March 31, 2020

 

Three months ended March 31, 2019

Sempra Energy GAAP Earnings

   

$

760

     

$

441

 

Excluded items:

           

    Impacts associated with Aliso Canyon litigation

$

100

 

$

(28)

 

72

   

$

 

 

    Losses from investment in RBS Sempra Commodities LLP

100

 

 

100

   

 

 

    Associated with holding the South American businesses for sale:

           

Change in indefinite reinvestment assertion of basis differences in discontinued operations

 

 

   

103

 

103

 

Reduction in tax valuation allowance against certain NOL carryforwards

 

 

   

(10)

 

(10)

 

Sempra Energy Adjusted Earnings

   

$

932

     

$

534

 
             

Diluted EPS:

           

    Sempra Energy GAAP Earnings for GAAP EPS(2)

   

$

796

     

$

441

 

    Weighted-average common shares outstanding, diluted – GAAP

   

313,925

     

277,228

 

    Sempra Energy GAAP EPS

   

$

2.53

     

$

1.59

 
             

Sempra Energy Adjusted Earnings for Adjusted EPS(2)(3)

   

$

968

     

$

560

 

Weighted-average common shares outstanding, diluted – Adjusted(3)

   

313,925

     

291,179

 

Sempra Energy Adjusted EPS

   

$

3.08

     

$

1.92

 
             
                 

(1)

Except for adjustments that are solely income tax and tax related to outside basis differences, 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)

In the three months ended March 31, 2020, due to the dilutive effect of the mandatory convertible preferred stock, the numerator used to calculate GAAP EPS and Adjusted EPS includes an add-back of $36 million of mandatory convertible preferred stock dividends declared in that quarter.

   

(3)

In the three months ended March 31, 2019, the assumed conversion of the series A preferred stock and the series B preferred stock are antidilutive for GAAP Earnings, however, the series A preferred stock is dilutive for the higher Adjusted Earnings. As such, the series A preferred stock dividends of $26 million have been added back to the numerator and the dilutive effect of the series A preferred stock shares of 13,951 has been added to the denominator when calculating Adjusted EPS.

SEMPRA ENERGY
Table A (Continued)

RECONCILIATION OF SEMPRA ENERGY 2020 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA ENERGY 2020 GAAP EPS GUIDANCE RANGE (Unaudited)

Sempra Energy 2020 Adjusted EPS Guidance Range of $6.70 to $7.50 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:

  • $(72) million from impacts associated with Aliso Canyon natural gas storage facility litigation at 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
  • approximately $1.7 billion to $1.8 billion estimated after-tax gain on the sale of our South American businesses, net of approximately $1.2 billion of income tax expense, which was calculated primarily based on applicable statutory tax rates

Sempra Energy 2020 Adjusted EPS Guidance is a non-GAAP financial measure. Because of the significance and/or nature of the excluded items, management believes that this non-GAAP financial measure provides a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Sempra Energy 2020 Adjusted EPS Guidance should not be considered an alternative to Sempra Energy 2020 GAAP EPS Guidance. 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 2020 Adjusted EPS Guidance Range to Sempra Energy 2020 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP.

                       

Full-Year 2020

Sempra Energy GAAP EPS Guidance Range

                     

$

11.88

 

to

$

13.02

 

Excluded items:

                           
 

Impacts associated with Aliso Canyon litigation

                     

0.24

   

0.24

 
 

Losses from investment in RBS Sempra Commodities LLP

                     

0.34

   

0.34

 
 

Estimated gain on sale of South American businesses

                     

(5.76)

     

(6.10)

 

Sempra Energy Adjusted EPS Guidance Range

                     

$

6.70

 

to

$

7.50

 

Weighted-average common shares outstanding, diluted (millions)

                         

295

 

 

SEMPRA ENERGY

Table B

       

CONDENSED CONSOLIDATED BALANCE SHEETS

       

(Dollars in millions)

March 31,
2020

 

December 31,

2019(1)

 

(unaudited)

   

ASSETS

     

Current assets:

     

Cash and cash equivalents

$

2,247

   

$

108

 

Restricted cash

23

   

31

 

Accounts receivable – trade, net

1,222

   

1,261

 

Accounts receivable – other, net

369

   

455

 

Due from unconsolidated affiliates

64

   

32

 

Income taxes receivable

120

   

112

 

Inventories

217

   

277

 

Regulatory assets

210

   

222

 

Greenhouse gas allowances

79

   

72

 

Assets held for sale in discontinued operations

566

   

445

 

Other current assets

307

   

324

 

Total current assets

5,424

   

3,339

 
       

Other assets:

     

Restricted cash

3

   

3

 

Due from unconsolidated affiliates

592

   

742

 

Regulatory assets

1,837

   

1,930

 

Nuclear decommissioning trusts

987

   

1,082

 

Investment in Oncor Holdings

11,619

   

11,519

 

Other investments

2,215

   

2,103

 

Goodwill

1,602

   

1,602

 

Other intangible assets

211

   

213

 

Dedicated assets in support of certain benefit plans

413

   

488

 

Insurance receivable for Aliso Canyon costs

511

   

339

 

Deferred income taxes

265

   

155

 

Greenhouse gas allowances

515

   

470

 

Right-of-use assets – operating leases

592

   

591

 

Wildfire fund

385

   

392

 

Assets held for sale in discontinued operations

3,364

   

3,513

 

Other long-term assets

691

   

732

 

Total other assets

25,802

   

25,874

 

Property, plant and equipment, net

37,067

   

36,452

 

Total assets

$

68,293

   

$

65,665

 
 

(1) Derived from audited financial statements.

 

SEMPRA ENERGY

Table B (Continued)

       

CONDENSED CONSOLIDATED BALANCE SHEETS

       

(Dollars in millions)

March 31,
2020

 

December 31,

2019(1)

 

(unaudited)

   

LIABILITIES AND EQUITY

     

Current liabilities:

     

Short-term debt

$

5,742

   

$

3,505

 

Accounts payable – trade

1,038

   

1,234

 

Accounts payable – other

163

   

179

 

Due to unconsolidated affiliates

8

   

5

 

Dividends and interest payable

548

   

515

 

Accrued compensation and benefits

264

   

476

 

Regulatory liabilities

444

   

319

 

Current portion of long-term debt and finance leases

2,079

   

1,526

 

Reserve for Aliso Canyon costs

284

   

9

 

Greenhouse gas obligations

79

   

72

 

Liabilities held for sale in discontinued operations

538

   

444

 

Other current liabilities

990

   

866

 

Total current liabilities

12,177

   

9,150

 
       

Long-term debt and finance leases

20,198

   

20,785

 
       

Deferred credits and other liabilities:

     

Due to unconsolidated affiliates

263

   

195

 

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

1,085

   

1,067

 

Deferred income taxes

2,466

   

2,577

 

Deferred investment tax credits

21

   

21

 

Regulatory liabilities

3,533

   

3,741

 

Asset retirement obligations

2,945

   

2,923

 

Greenhouse gas obligations

348

   

301

 

Liabilities held for sale in discontinued operations

1,006

   

1,052

 

Deferred credits and other

2,136

   

2,048

 

Total deferred credits and other liabilities

13,803

   

13,925

 

Equity:

     

Sempra Energy shareholders' equity

20,117

   

19,929

 

Preferred stock of subsidiary

20

   

20

 

Other noncontrolling interests

1,978

   

1,856

 

Total equity

22,115

   

21,805

 

Total liabilities and equity

$

68,293

   

$

65,665

 
 

(1) Derived from audited financial statements.

 

SEMPRA ENERGY

Table C

       

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

       
 

Three months ended March 31,

(Dollars in millions)

2020

 

2019

 

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

     

  Net income

$

947

   

$

518

 

  Less: (Income) loss from discontinued operations, net of income tax

(80)

   

42

 

  Income from continuing operations, net of income tax

867

   

560

 

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

175

   

313

 

  Intercompany activities with discontinued operations, net

   

31

 

  Net change in other working capital components

217

   

169

 

  Insurance receivable for Aliso Canyon costs

(172)

   

(16)

 

  Changes in other noncurrent assets and liabilities, net

163

   

(199)

 

  Net cash provided by continuing operations

1,250

   

858

 

  Net cash provided by discontinued operations

68

   

93

 

  Net cash provided by operating activities

1,318

   

951

 
       

CASH FLOWS FROM INVESTING ACTIVITIES

     

  Expenditures for property, plant and equipment

(1,010)

   

(783)

 

  Expenditures for investments and acquisitions

(86)

   

(94)

 

  Proceeds from sale of assets

5

   

327

 

  Purchases of nuclear decommissioning trust assets

(552)

   

(225)

 

  Proceeds from sales of nuclear decommissioning trust assets

552

   

225

 

  Advances to unconsolidated affiliates

(30)

   

 

  Repayments of advances to unconsolidated affiliates

   

3

 

  Intercompany activities with discontinued operations, net

(3)

   

 

  Other

8

   

7

 

  Net cash used in continuing operations

(1,116)

   

(540)

 

  Net cash used in discontinued operations

(65)

   

(70)

 

  Net cash used in investing activities

(1,181)

   

(610)

 
       

CASH FLOWS FROM FINANCING ACTIVITIES

     

  Common dividends paid

(269)

   

(232)

 

  Preferred dividends paid

(36)

   

(36)

 

  Issuances of common stock

11

   

11

 

  Repurchases of common stock

(57)

   

(14)

 

  Issuances of debt (maturities greater than 90 days)

1,619

   

304

 

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

(1,433)

   

(837)

 

  Increase in short-term debt, net

2,127

   

497

 

  Advances from unconsolidated affiliates

64

   

 

  Purchases of noncontrolling interests

(16)

   

(26)

 

  Intercompany activities with discontinued operations, net

(2)

   

(2)

 

  Other

(5)

   

(1)

 

  Net cash provided by (used in) continuing operations

2,003

   

(336)

 

  Net cash provided by (used in) discontinued operations

111

   

(45)

 

  Net cash provided by (used in) financing activities

2,114

   

(381)

 
       

Effect of exchange rate changes in continuing operations

(6)

   

 

Effect of exchange rate changes in discontinued operations

(8)

   

1

 

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

(14)

   

1

 
       

Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations

2,237

   

(39)

 

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

217

   

246

 

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

$

2,454

   

$

207

 

 

SEMPRA ENERGY

Table D

       

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

 
       
 

Three months ended March 31,

(Dollars in millions) 

2020

 

2019

 

(unaudited)

Earnings (Losses) Attributable to Common Shares 

     

SDG&E  

$

262

   

$

176

 

SoCalGas  

303

   

264

 

Sempra Texas Utilities  

105

   

94

 

Sempra Mexico  

191

   

57

 

Sempra Renewables  

   

13

 

Sempra LNG  

75

   

5

 

Parent and other 

(248)

   

(117)

 

Discontinued operations  

72

   

(51)

 

Total  

$

760

   

$

441

 
       
       
 

Three months ended March 31,

(Dollars in millions) 

2020

 

2019

 

(unaudited)

Capital Expenditures, Investments and Acquisitions  

     

SDG&E  

$

402

   

$

356

 

SoCalGas  

388

   

324

 

Sempra Texas Utilities  

86

   

56

 

Sempra Mexico  

170

   

85

 

Sempra LNG  

47

   

56

 

Parent and other  

3

   

 

Total  

$

1,096

   

$

877

 

 

SEMPRA ENERGY

Table E

       

OTHER OPERATING STATISTICS (Unaudited)

     
       
 

Three months ended March 31,

 

2020

 

2019

UTILITIES

     

SDG&E and SoCalGas

     
 

Gas sales (Bcf)(1)

129

   

139

 
 

Transportation (Bcf)(1)

148

   

144

 
 

Total deliveries (Bcf)(1)

277

   

283

 
       
 

Total gas customer meters (thousands)

6,933

   

6,894

 
         

SDG&E

     
 

Electric sales (millions of kWhs)(1)

3,460

   

3,582

 
 

Direct Access and Community Choice Aggregation (millions of kWhs)

769

   

840

 
 

Total deliveries (millions of kWhs)(1)

4,229

   

4,422

 
       
 

Total electric customer meters (thousands)

1,475

   

1,460

 
       

Oncor(2)

     
 

Total deliveries (millions of kWhs)

30,420

   

30,112

 
 

Total electric customer meters (thousands)

3,703

   

3,639

 
       

Ecogas

     
 

Natural gas sales (Bcf)

1

   

1

 
 

Natural gas customer meters (thousands)

135

   

124

 
       
       

ENERGY-RELATED BUSINESSES

     

Power generated and sold

     

  Sempra Mexico

     
 

Termoeléctrica de Mexicali (TdM) (millions of kWhs)

826

   

1,137

 
 

Wind and solar (millions of kWhs)(3)

422

   

245

 
         

(1)

Includes 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 80.45% interest at March 31, 2020 and an indirect 80.25% interest at March 31, 2019.

   

(3)

Includes 50% of the total power generated and sold at the Energía Sierra Juárez wind power generation facility, in which Sempra Energy has a 50% ownership interest. Energía Sierra Juárez is not consolidated within Sempra Energy, and the related investment is accounted for under the equity method.

 

SEMPRA ENERGY

Table F (Unaudited)

 

STATEMENTS OF OPERATIONS DATA BY SEGMENT

                                 

Three months ended March 31, 2020

(Dollars in millions)

SDG&E

 

SoCalGas

 

Sempra
Texas
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

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

 
                                 

Three months ended March 31, 2019

                 

(Dollars in millions)

SDG&E

 

SoCalGas

 

Sempra
Texas
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
LNG

 

Consolidating
Adjustments,
Parent & Other

   

Total

                                 

Revenues

$

1,145

   

$

1,361

   

$

   

$

383

   

$

7

   

$

141

   

$

(139)

     

$

2,898

 

Cost of sales and other expenses

(697)

   

(913)

   

   

(192)

   

(11)

   

(142)

   

98

     

(1,857)

 

Depreciation and amortization

(186)

   

(147)

   

   

(44)

   

   

(2)

   

(4)

     

(383)

 

Other income, net

22

   

16

   

   

19

   

   

   

25

     

82

 

Income (loss) before interest and tax(1)

284

   

317

   

   

166

   

(4)

   

(3)

   

(20)

     

740

 

Net interest (expense) income

(102)

   

(34)

   

   

(11)

   

7

   

10

   

(109)

     

(239)

 

Income tax (expense) benefit

(5)

   

(19)

   

   

(72)

   

10

   

(4)

   

48

     

(42)

 

Equity earnings, net

   

   

94

   

2

   

3

   

2

   

     

101

 

Earnings attributable to noncontrolling interests

(1)

   

   

   

(28)

   

(3)

   

   

     

(32)

 

Preferred dividends

   

   

   

   

   

   

(36)

     

(36)

 

Earnings (losses) from continuing operations

$

176

   

$

264

   

$

94

   

$

57

   

$

13

   

$

5

   

$

(117)

     

492

 

Losses from discontinued operations

                             

(51)

 

Earnings attributable to common shares

                             

$

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.

 

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SOURCE Sempra Energy

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

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