Sempra Infrastructure

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Sempra Completes Sale of Non-Controlling Interest in Sempra Infrastructure Partners

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  • Closing sale of 10% non-controlling equity interest in Sempra Infrastructure Partners to subsidiary of Abu Dhabi Investment Authority for $1.73 billion
  • Generating additional capital to fund record $36 billion capital plan

SAN DIEGO, June 1, 2022 /PRNewswire/ -- Sempra (NYSE: SRE) (BMV: SRE) today announced that it has completed the sale of a 10% non-controlling interest in Sempra Infrastructure Partners (Sempra Infrastructure) for $1.73 billion in cash to a subsidiary of Abu Dhabi Investment Authority (ADIA). The transaction, previously announced in December 2021, implies an enterprise value for Sempra Infrastructure of $25.9 billion, including its proportionate ownership share of net debt of approximately $8.6 billion.

With the closing of the referenced transaction, Sempra now owns a 70% controlling stake in Sempra Infrastructure, and KKR and ADIA own a 20% and 10% non-controlling interest, respectively.

"The completion of this transaction marks an exciting milestone for Sempra Infrastructure as we work to advance energy security and provide lower-carbon and net-zero energy solutions to customers in North America and around the world," said Jeffrey W. Martin, chairman and chief executive officer of Sempra. "Also, with growing recognition of America's role in supporting the stability of energy markets in Europe and Asia, this transaction sends a clear signal about the value and expected growth prospects of our infrastructure platform."

Sempra Infrastructure is currently developing multiple world-class projects in North America, including liquefied natural gas (LNG) export projects that are uniquely positioned to serve customers in both the Pacific and Atlantic markets, as well as new opportunities in renewable energy, carbon capture and sequestration, hydrogen and ammonia. Leveraging the strength of an investment-grade balance sheet, the company is focused on making critical new investments that expand energy networks in the U.S. and Mexico to support improved energy and climate security.

Khadem AlRemeithi, executive director of the Infrastructure Department at ADIA, said, "Sempra Infrastructure is playing an important role in modernizing energy networks and facilitating the energy transition. Since announcing our investment, our strategic partnership with Sempra and KKR has continued to strengthen, and we look forward to supporting Sempra Infrastructure as it expands its leading position in the energy transition."

The completed transaction provides for ADIA to have certain customary minority rights with respect to Sempra Infrastructure commensurate with the size of its investment.

About Sempra

Sempra's mission is to be North America's premier energy infrastructure company. The Sempra family of companies have 20,000 talented employees who deliver energy with purpose to nearly 40 million consumers. With more than $72 billion in total assets at the end of 2021, the San Diego-based company is the owner of one of the largest energy networks in North America helping some of the world's leading economies move to cleaner sources of energy. The company is helping to advance the global energy transition through electrification and decarbonization in the markets it serves, including California, Texas, Mexico and the LNG export market. Sempra is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture focused on safety, workforce development and training, and diversity and inclusion. Sempra 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 2022 by Fortune Magazine. For additional information about Sempra, please visit Sempra's website at sempra.com and on Twitter @Sempra.

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," "intends," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "opportunity," "target," "outlook," "maintain," "continue," "goal," "aim," "commit," 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 all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, in rates from customers or a combination thereof; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the California Public Utilities Commission (CPUC), Comisión Reguladora de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, 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 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 or approval of partners or other third parties, including governmental entities and regulatory bodies; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, arbitrations, and property disputes, including those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; changes to laws, including changes to certain of Mexico's laws and rules that impact energy supplier permitting, energy contract rates, the electricity industry generally and the ability to import, export, transport and store hydrocarbons; cybersecurity threats, including by state and state-sponsored actors, to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business, all of which have become more pronounced due to recent geopolitical events and other uncertainties, such as the war in Ukraine; failure of foreign governments and state-owned entities to honor their contracts and commitments; 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 debt service obligations; the impact of energy and climate policies, legislation, rulemaking and disclosures, as well as related goals set and actions taken by companies in our industry, including actions to reduce or eliminate reliance on natural gas generally and any deterioration of or increased uncertainty in the political or regulatory environment for California natural gas distribution companies and the risk of nonrecovery for stranded assets; the pace of the development and adoption of new technologies in the energy sector, including those designed to support governmental and private party energy and climate goals, and our ability to timely and economically incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or 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 or limitations on the withdrawal of natural gas from storage facilities; the impact of the COVID-19 pandemic, including potential vaccination mandates, on capital projects, regulatory approvals and the execution of our operations; 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 Community Choice Aggregation and Direct Access, 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, including inflationary pressures in the U.S., and our ability to effectively hedge these risks and with respect to inflation and interest rates, the impact on SDG&E's and SoCalGas' cost of capital and the affordability of customer rates; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those that have been imposed and that may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, impact our ability to do business with certain current or potential counterparties, 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 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 Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

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

SOURCE Sempra

Sempra Infrastructure Signs Participation Agreement with TotalEnergies, Mitsui, Mitsubishi for Carbon Sequestration Project in Louisiana

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  • Cameron LNG expected to serve as anchor customer
  • Application for injection well to store up to 2 Mtpa of CO2 filed last year

HOUSTON, May 23, 2022 /PRNewswire/ -- Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today announced it has signed a participation agreement with TotalEnergies, Mitsui & Co., Ltd. and Mitsubishi Corporation for the development of the proposed Hackberry Carbon Sequestration (HCS) project in Southwest Louisiana.

The participation agreement contemplates that the combined Cameron LNG Phase 1 and proposed Phase 2 export projects would potentially serve as the anchor source for the capture and sequestration of carbon dioxide (CO2) by the HCS project. It also provides the basis for the parties to enter into a joint venture with Sempra Infrastructure for the HCS project.

"We are excited to advance the development of the Hackberry Carbon Sequestration project, the first of Sempra Infrastructure's net zero solutions projects, to help Cameron LNG produce cleaner liquefied natural gas (LNG) for its customers," said Justin Bird, CEO of Sempra Infrastructure. "This project is expected to be among the first North American carbon capture facilities designed to receive and store CO2 from multiple sources, and our goal is for this facility to set the gold standard for safe and permanent CO2 storage."

Last year, the Hackberry Carbon Sequestration project filed an application for a Class VI Injection well permit from the U.S. Environmental Protection Agency for permanent storage of up to 2 million tonnes per annum of CO2.   

"We are excited to welcome new investment from Sempra Infrastructure and its partners in support of our state's emissions reduction plans," said Louisiana Governor John Bel Edwards. "As Louisiana pursues a goal of net-zero emissions by 2050, projects like the proposed Hackberry Carbon Sequestration facility that feature carbon capture and sequestration allow our state to sustain industry without sacrificing our long-term carbon-reduction goals. In fact, these types of projects position companies in Louisiana to grow and thrive as the world transitions to a low carbon future and to also leverage the geology, workforce, and infrastructure that positions Louisiana to be a hub and world leader in this arena."

Sempra Infrastructure continues to build a strong business portfolio and is working on a number of initiatives focused on sustainability and the global energy transition to advance its goal to lower the greenhouse gas emission intensity at its LNG facilities while working to provide decarbonization solutions to its customers in North America and in global energy markets.

The development of the Hackberry Carbon Sequestration project is subject to a number of risks and uncertainties, including signing additional project-related agreements, securing all necessary permits, and reaching a final investment decision.

About Sempra Infrastructure

Sempra Infrastructure delivers energy for a better world. Through the combined strength of its assets in North America, the company is dedicated to enabling the energy transition and beyond. With a continued focus on sustainability, innovation, world-class safety, championing people, resilient operations and social responsibility, its more than 2,000 employees develop, build and operate clean power, energy networks and LNG and net-zero solutions, that are expected to play a crucial role in the energy systems of the future. For more information about Sempra Infrastructure, please visit www.SempraInfrastructure.com and Twitter.

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," "intends," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "opportunity," "target," "outlook," "maintain," "continue," "goal," "aim," "commit," 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: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the U.S. Department of Energy, Comisión Reguladora de Energía, U.S. Federal Energy Regulatory Commission 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 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 or approval of partners or other third parties, including governmental entities and regulatory bodies; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, arbitrations, and property disputes; changes to laws, including changes to certain of Mexico's laws and rules that impact energy supplier permitting, energy contract rates, the electricity industry generally and the ability to import, export, transport and store hydrocarbons; cybersecurity threats, including by state and state-sponsored actors, to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business, all of which have become more pronounced due to recent geopolitical events and other uncertainties, such as the war in Ukraine; failure of foreign governments and state-owned entities to honor their contracts and commitments; 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 debt service obligations; the impact of energy and climate policies, legislation, rulemaking and disclosures, as well as related goals set and actions taken but companies in our industry, including actions to reduce or eliminate reliance on natural gas generally and the risk of nonrecovery for stranded assets; the pace of the development and adoption of new technologies in the energy sector, including those designed to support governmental and private party energy and climate goals, and our ability to timely and economically incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or 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 impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas; the impact of the COVID-19 pandemic, including potential vaccination mandates, on capital projects, regulatory approvals and the execution of our operations; volatility in foreign currency exchange, inflation and interest rates and commodity prices, including inflationary pressures in the U.S., and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those that have been imposed and that may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, impact our ability to do business with certain current or potential counterparties, 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 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 Sempra's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra Infrastructure is not the same company as San Diego Gas & Electric or Southern California Gas Company, and neither Sempra Infrastructure nor any of its subsidiaries are regulated by the California Public Utilities Commission.

Sempra Infrastructure (PRNewsfoto/Sempra Infrastructure)

 

 

SOURCE Sempra North American Infrastructure

Sempra Announces Agreement To Sell 10% Interest In Sempra Infrastructure Partners

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SAN DIEGO, Dec. 21, 2021 /PRNewswire/ -- Sempra (NYSE: SRE) (BMV: SRE) announced today it has entered into a definitive agreement to sell a non-controlling 10% interest in Sempra Infrastructure Partners (Sempra Infrastructure) to a subsidiary of the Abu Dhabi Investment Authority (ADIA) for $1.785 billion in cash, subject to customary closing adjustments.

This transaction implies an enterprise value for Sempra Infrastructure of $26.5 billion, including asset-related debt of approximately $8.6 billion.

In October, Sempra completed the sale of a 20% non-controlling interest in Sempra Infrastructure to a wholly owned affiliate of KKR. Upon closing of the transaction announced today, Sempra will own a 70% controlling stake in Sempra Infrastructure.

"We are excited to add ADIA to the partnership at Sempra Infrastructure. As an investor with a global footprint, we expect ADIA will help our team build out a growth platform with an increasingly global capability," said Jeffrey W. Martin, chairman and CEO of Sempra. "The timing of the transaction is attractive because it allows us to efficiently rotate capital into a growing set of investment opportunities at our utilities and return capital to our owners in the form of share repurchases. This transaction allows us to do both, while also supporting our balance sheet."

Sempra Infrastructure was created earlier this year through the consolidation of two world-class infrastructure companies – Sempra LNG and Infraestructura Energética Nova, S.A.B de C.V. (IEnova). The combined business consists of three growth platforms – clean power, energy networks, and LNG and net-zero solutions – with a view towards capturing new opportunities that support the global energy transition.

"At ADIA, we see tremendous opportunity in the ongoing transformation of global energy markets. In North America, few businesses are as well positioned as Sempra Infrastructure to build the new energy systems for the 21st century. We look forward to building on the partnership with Sempra and KKR to advance the business prospects of Sempra Infrastructure," said Khadem AlRemeithi, executive director of the Real Estate & Infrastructure Department at ADIA.

The transaction is expected to be completed in the summer of 2022, subject to customary closing conditions and consents from regulators. Under the terms of the agreement, ADIA will have certain customary minority rights with respect to Sempra Infrastructure, commensurate with the size of the investment.

Proceeds from the sale will be used to help fund incremental capital expenditures at Sempra's utilities and repurchase $500 million of the company's stock, of which $300 million was completed in the fourth quarter of this year, while also supporting the company's balance sheet. The transaction is expected to be accretive to earnings as the proceeds are deployed.

White & Case LLP and Sullivan & Cromwell LLP are serving as legal advisors to Sempra on this transaction. Milbank LLP and Gonzalez Calvillo S.C. are serving as legal advisors to ADIA.

Earnings Guidance
With the referenced transaction expected to close next year, Sempra is affirming its full-year 2022 EPS guidance range of $8.10 to $8.70.

About Sempra
Sempra's mission is to be North America's premier energy infrastructure company. The Sempra family of companies has 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 the markets it serves, including California, Texas, Mexico and the LNG export market. Sempra is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture with a focus on safety, workforce development and training, and diversity and inclusion. Sempra 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, please visit Sempra's website at www.sempra.com and on Twitter @Sempra.

About ADIA
Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.

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," "goal," "aim," "commit," 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 California Public Utilities Commission (CPUC), Comisión Reguladora de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, 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 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 or approval of partners or other third parties, including governmental entities; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; changes to laws, including proposed changes to the Mexican constitution that could materially limit access to the electric generation market and changes to Mexico's trade rules that could materially limit our ability to import and export hydrocarbons; failure of foreign governments and state-owned entities to honor their contracts and commitments and property disputes; 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; the impact of energy and climate goals, policies, legislation and rulemaking, including actions to reduce or eliminate reliance on natural gas generally and any deterioration of or increased uncertainty in the political or regulatory environment for California natural gas distribution companies; the pace of the development and adoption of new technologies in the energy sector, including those designed to support governmental and private party energy and climate goals, and our ability to timely and economically incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or 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 or limitations on the withdrawal of natural gas from storage facilities; the impact of the COVID-19 pandemic, including potential vaccination mandates, on capital projects, regulatory approvals and the execution of our operations; cybersecurity threats to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business; 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 and with respect to interest rates, the impact on SDG&E's and SoCalGas' cost of capital; 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 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 Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

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

 

SOURCE Sempra

SEMPRA INFRASTRUCTURE RECOGNIZED WITH AWARD OF EXCELLENCE IN LNG BY S&P GLOBAL PLATTS

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SAN DIEGO, Dec. 10, 2021 /PRNewswire/ -- Sempra Infrastructure today announced the company was presented with the Excellence in LNG Award at the S&P Global Platts Global Energy Awards ceremony in New York. Sempra Infrastructure was selected in recognition of its operational excellence, exemplary corporate innovation, leadership and company performance in the liquefied natural gas (LNG) category.

"We are honored to receive this recognition. We are proud of the exemplary performance our team has shown, particularly during these challenging times and unprecedented circumstances for the energy industry," said Justin Bird, chief executive officer of Sempra Infrastructure. "Our commitment to safety and excellence remains strong as we continue to work on facilitating the energy transition by being a leader in the responsible development of lower-carbon energy infrastructure along the LNG value chain in North America."

The category of Excellence in LNG is open to all players in the LNG value chain, including producers, buyers, portfolio players, traders, financial companies, shippers, and technology innovators.

Sempra Infrastructure has been developing LNG infrastructure for more than 15 years and has managed and operated more than 18 million tonnes per annum (Mtpa) of LNG regasification capacity with an exemplary safety track record.

Last year, Cameron LNG, a Sempra Infrastructure joint venture, achieved a safety record of more than 89 million hours without a lost-time incident during construction and transition to operations of the three-train liquefaction facility. To date, Cameron LNG has exported more than 300 cargos of LNG to approximately 30 countries worldwide, helping our allies meet their need for lower-carbon energy.

Additionally, Sempra Infrastructure's liquefaction project in Mexico, ECA LNG Phase 1, was the only project in the world to achieve a final investment decision in 2020. ECA LNG Phase 1 construction activities are under way and to date, it has achieved 1 million hours worked without a recordable safety incident.

The S&P Global Platts Global Energy Awards 2021 winners, chosen from more than 300 nominated companies and four dozen countries, were selected from each corresponding group of finalists by the Global Energy Awards' independent panel of judges.

About Sempra Infrastructure
At Sempra Infrastructure, we deliver energy for a better world. Through the combined strength of our assets in North America, we are dedicated to enabling the energy transition and beyond. With a continued focus on sustainability, innovation, world-class safety, championing people, resilient operations and social responsibility, our more than 2,000 employees develop, build and operate clean power, energy networks and LNG and net-zero solutions, that are expected to play a crucial role in the energy systems of the future. For more information about Sempra Infrastructure, please visit www.SempraInfrastructure.com.

About S&P Global Platts
At S&P Global Platts, we provide the insights; you make better informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing, and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture, and shipping.

S&P Global Platts is a division of S&P Global, which provides essential intelligence for companies, governments, and individuals to make decisions with confidence. For more information, visit http://spglobal.com/platts.

Sempra Infrastructure (PRNewsfoto/Sempra Infrastructure)

 

SOURCE Sempra Infrastructure

Sempra Infrastructure Announces Key Executive Appointments

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SAN DIEGO, Nov. 3, 2021 /PRNewswire/ -- Sempra Infrastructure announced today key executive leadership appointments following the consolidation of Sempra LNG and Infraestructura Energética Nova S.A.P.I. de C.V. (IEnova) with a view towards creating a larger platform to capture new opportunities that support the clean energy transition and invest in the energy systems of the future.

Justin Bird, currently chief executive officer (CEO) for Sempra LNG, has been named CEO of Sempra Infrastructure. In his role, Bird will lead the North American energy company as it works to create scale, unlock portfolio synergies, drive growth and help facilitate the global energy transition through three growth platforms: clean power, energy networks, and LNG and net-zero solutions.

"Sempra Infrastructure is well positioned to continue the development of large-scale energy infrastructure, and we plan to build on that momentum as we innovate and explore opportunities in new technologies while supporting the energy needs of our customers in the U.S., Mexico and around the world," said Bird. "We are excited to have assembled a highly talented and proven leadership team with demonstrated ability of developing and executing world-class infrastructure projects."

Dan Brouillette, former U.S. Secretary of Energy, has joined the executive team as president of Sempra Infrastructure. Brouillette brings an extensive leadership background in the public and private sector, having served in key leadership roles at USAA, Ford Motor Company, and federal and state governmental agencies.  

Tania Ortiz Mena, currently CEO of IEnova, has been named group president, clean power and energy networks. In her role, Ortiz Mena will lead the company's activities related to clean power generation,  as well as natural gas transportation and distribution, and fuel storage facilities in North America.

Reporting to Ortiz Mena will be Carlos Barajas, senior vice president and chief business officer for clean power, and Carlos Mauer, senior vice president and chief business officer for energy networks.

Lisa Glatch, currently president and chief operating officer of Sempra LNG, has been named president, LNG and net-zero solutions, where she will lead the company's business activities related to LNG infrastructure, hydrogen, carbon sequestration and next-generation energy technologies.

Also reporting to Bird will be Carolyn Benton Aiman, senior vice president and chief legal officer; Randall Clark, senior vice president and chief human resources officer; and Faisel Khan, senior vice president and chief financial officer. Each previously held similar roles at Sempra LNG.  

"We are confident that our executive leadership will continue operating and developing the next generation of infrastructure with an unwavering focus on safety," added Bird.

Last month, Sempra completed the sale of a non-controlling, 20% interest in Sempra Infrastructure to KKR. Sempra Infrastructure investments include more than 1,500 megawatts of clean power, more than 4,500 miles of natural gas transportation and distribution pipelines, 12 million tonnes per annum of natural gas liquefaction in operations, plus a leading growth platform for energy infrastructure in North America. Sempra Infrastructure develops, builds, operates and invests in critical infrastructure to meet the world's energy and climate needs.

About Sempra Infrastructure
At Sempra Infrastructure, we deliver energy for a better world. Through the combined strength of our assets in North America, we are dedicated to enabling the energy transition and beyond. With a continued focus on sustainability, innovation, world-class safety, championing people, resilient operations and social responsibility, our more than 2,000 employees develop, build and operate clean power, energy networks and LNG and net-zero solutions, that are expected to play a crucial role in the energy systems of the future. For more information about Sempra Infrastructure, please visit www.SempraInfrastructure.com.

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," "goal," "aim," "commit," 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: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the Comisión Federal de Electricidad, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission 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 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; 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; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or 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 impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas; the impact of the COVID-19 pandemic on capital projects, regulatory approvals and the execution of our operations; cybersecurity threats to the storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business; 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 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 Sempra's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra Infrastructure is not the same company as San Diego Gas & Electric or Southern California Gas Company, and neither Sempra Infrastructure nor any of its subsidiaries are regulated by the California Public Utilities Commission.

Sempra Infrastructure

 

SOURCE Sempra Infrastructure

Sempra and Sempra LNG Pledge $100,000 to Hurricane Ida Relief Efforts

Body

SAN DIEGO, Sept. 3, 2021 /PRNewswire/ -- Sempra (NYSE: SRE) (BMV: SRE) and Sempra LNG today announced a contribution of $100,000 to the Second Harvest Food Bank of Greater New Orleans and Acadiana, to support immediate relief efforts related to Hurricane Ida.   

"Our thoughts are with the communities and families impacted by the devastation from Hurricane Ida," said Justin Bird, CEO of Sempra LNG.  "We are committed to helping Louisiana recover and rebuild from this storm and are thankful for the first responders, volunteers and organizations like Second Harvest who repeatedly rise to the challenge to help those in need."

"We are grateful for this generous gift from Sempra and Sempra LNG to support Second Harvest's disaster response efforts across South Louisiana in the aftermath of Hurricane Ida," said Natalie Jayroe, president and CEO of Second Harvest. This gift will make a big difference for so many communities across South Louisiana, from Terrebonne, Lafourche and Plaquemines Parishes, to the River Parishes, New Orleans and Jefferson Parish, the Northshore, and St. Mary, Iberia and Vermillion Parishes."

A subsidiary of Sempra, Sempra LNG owns 50.2% of the Cameron LNG export facility, located in Hackberry, Louisiana, in addition to other operational facilities in Cameron, Calcasieu and Beauregard Parishes. Sempra and Sempra LNG have been an active part of the Louisiana community for nearly two decades.

Over the last two years, Sempra, Sempra LNG and Sempra Foundation have committed nearly $1 million to nonprofit organizations providing services in Louisiana in response to natural disasters and the COVID-19 pandemic.

About Sempra LNG
Sempra LNG's mission is being North America's premier LNG infrastructure company by providing sustainable, safe and reliable access to U.S. natural gas for global markets. Sempra LNG owns interests in Cameron LNG, a 12 Mtpa export facility operating in Hackberry, Louisiana and Energía Costa Azul (ECA) LNG, a 3 Mtpa export facility under construction in Baja California, Mexico.  Sempra LNG is developing additional LNG export facilities on the Gulf and Pacific Coasts of North America including Port Arthur LNG in Texas, expansions of Cameron LNG and ECA LNG, as well as supporting pipelines and storage projects. Through disciplined and innovative processes, Sempra LNG is facilitating the global energy transition by leading the responsible development of lower-carbon energy infrastructure investments along the LNG value chain. For more information about Sempra LNG, please visit www.SempraLNG.com.

About Sempra
Sempra's mission is to be North America's premier energy infrastructure company. The Sempra 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 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 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, please visit Sempra's website at www.sempra.com and on Twitter @Sempra.

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: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the U.S. Department of Energy 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; 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 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 impact our ability to obtain satisfactory levels of affordable insurance; cybersecurity threats to 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; 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 Sempra Energy's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not the same company as San Diego Gas & Electric or Southern California Gas Company, and Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not regulated by the California Public Utilities Commission.

Sempra LNG Logo (PRNewsfoto/Sempra Energy)

SOURCE Sempra LNG

Sempra Reports Second-Quarter 2021 Earnings Results

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SAN DIEGO, Aug. 5, 2021 /PRNewswire/ -- Sempra (NYSE: SRE) (BMV: SRE) today announced second-quarter 2021 earnings of $424 million, or $1.37 per diluted share, compared to second-quarter 2020 earnings of $2.239 billion, or $7.61 per diluted share. On an adjusted basis, the company's second-quarter 2021 earnings were $504 million, or $1.63 per diluted share, compared to $501 million, or $1.71 per diluted share, in the second quarter of 2020.

"Our simplified business model and narrowed strategic focus to growing markets continue to provide strong support for our financial and operational results," said Trevor Mihalik, executive vice president and chief financial officer of Sempra. "We are pleased with our solid year-to-date financial results."

Sempra's earnings for the first six months of 2021 were $1.298 billion, or $4.24 per diluted share, compared with earnings of $2.999 billion, or $9.91 per diluted share, in the first six months of 2020. Adjusted earnings for the first six months of 2021 were $1.404 billion, or $4.58 per diluted share, compared to $1.242 billion, or $4.20 per diluted share, in the first six months of 2020.

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 second quarter and first six months of 2021 and 2020.








 Three months ended 


 Six months ended 



 June 30, 


 June 30, 

(Dollars, except EPS, and shares in millions)


2021


2020


2021


2020



(Unaudited)

GAAP Earnings


$        424


$     2,239


$     1,298


$     2,999










Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives1

72


21


69


(129)










Net Unrealized Losses (Gains) on Commodity Derivatives1


58


(5)


87


(46)










Impacts Associated with Aliso Canyon Litigation


-


-


-


72










Gain on Sale of South American Businesses


-


(1,754)


-


(1,754)










(Earnings) Losses from Investment in RBS Sempra Commodities LLP


(50)


-


(50)


100










Adjusted Earnings2


$        504


$        501


$     1,404


$     1,242



















Diluted Weighted-Average Common Shares Outstanding


309


294


306


308

GAAP EPS3


$       1.37


$       7.61


$       4.24


$       9.91










Diluted Weighted-Average Common Shares Outstanding4


309


294


311


308

Adjusted EPS2,3,5


$       1.63


$       1.71


$       4.58


$       4.20





1)

Q2-2020 and YTD-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. See Table A for information regarding non-GAAP financial measures and descriptions of adjustments.

3)

To calculate YTD-2020 GAAP EPS and Adjusted EPS, preferred dividends of $52 million are added back to GAAP Earnings because of the dilutive effect of Series A mandatory convertible preferred stock.        

4)

YTD-2020 diluted weighted-average common shares outstanding has been updated for the exclusion of additional items to conform to current year presentation. 

5)

To calculate YTD-2021 Adjusted EPS, preferred dividends of $19 million are added back to Adjusted Earnings because of the dilutive effect of Series B mandatory convertible preferred stock.

Prioritizing Safety and Sustainability at Sempra California

In July, San Diego Gas & Electric Co. (SDG&E) received approval from the California Public Utilities Commission (CPUC) for its 2021 Wildfire Mitigation Plan Update, building upon the utility's long-standing commitment to advancing fire hardening and public safety.

Additionally, Southern California Gas Co. (SoCalGas) began renewable natural gas (RNG) flows at two additional biomethane projects in support of its goal to deliver 20% RNG to its core customers by 2030.

Continuing Growth at Sempra Texas

In Texas, Oncor Electric Delivery Company LLC (Oncor) has announced its projected five-year capital plan for 2022-2026 of $14 billion, a $1.8 billion increase compared to the 2021-2025 capital plan. The increase is driven by the need for investments to support strong premise growth, growth in generation interconnection requests and grid resiliency. Prospects for new relocations, expansions and electric service to Oncor's system are expected to exceed 2020 values by 70% and 2019 values by 170%. So far this year, Oncor has connected approximately 43,000 new premises – greater than the total connections seen at this same time last year, highlighting the underlying strength of economic and demographic growth in the region.

Advancing Sempra Infrastructure

In May, Sempra announced the completion of its exchange offer to acquire the outstanding shares of Infraestructura Energética Nova, S.A.B de C.V. (IEnova) not owned by Sempra, resulting in 96.4% ownership. Sempra intends to launch a cash tender offer to acquire the remaining 3.6% interest.

Sempra also continues to advance the sale of a non-controlling, 20% interest in Sempra Infrastructure to KKR for $3.37 billion in cash, subject to adjustments. The sale is expected to close around the end of the third quarter of 2021. Sempra Infrastructure is expected to generate increased shareholder value by consolidating Sempra's infrastructure businesses under one common growth platform with a value proposition focused on investment opportunities in clean power, liquefied natural gas (LNG) and net-zero solutions, and energy networks.

Additionally, in July, IEnova began commercial operations at its Mexico City storage terminal.

Earnings Guidance

Sempra is updating its full-year 2021 GAAP EPS guidance range to $7.41 to $8.01 and affirming its full-year 2021 adjusted EPS guidance range of $7.75 to $8.35. Sempra is also affirming its full-year 2022 EPS guidance range of $8.10 to $8.70.

Non-GAAP Financial Measures

Non-GAAP financial measures include Sempra'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 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 1398783.

About Sempra

Sempra's mission is to be North America's premier energy infrastructure company. The Sempra 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 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 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, please visit Sempra'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," "goal," "aim," "commit," 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, U.S. Federal Energy Regulatory Commission, 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 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; 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; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or 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 or limitations on the withdrawal of natural gas from storage facilities; the impact of the COVID-19 pandemic on capital projects, regulatory approvals, and the execution of our operations; cybersecurity threats to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business; 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 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 Sempra'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
June 30,


Six months ended
June 30,


2021


2020


2021


2020


(unaudited)

REVENUES








Utilities

$

2,434



$

2,233



$

5,279



$

4,898


Energy-related businesses

307



293



721



657


Total revenues

2,741



2,526



6,000



5,555










EXPENSES AND OTHER INCOME








Utilities:








Cost of natural gas

(261)



(131)



(610)



(468)


Cost of electric fuel and purchased power

(284)



(260)



(516)



(489)


Energy-related businesses cost of sales

(119)



(51)



(228)



(110)


Operation and maintenance

(1,024)



(898)



(2,025)



(1,749)


Aliso Canyon litigation and regulatory matters







(100)


Depreciation and amortization

(463)



(412)



(905)



(824)


Franchise fees and other taxes

(138)



(121)



(291)



(258)


Other income (expense), net

72



62



107



(192)


Interest income

15



22



34



49


Interest expense

(258)



(274)



(517)



(554)


Income from continuing operations before income taxes and equity earnings

281



463



1,049



860


Income tax (expense) benefit

(139)



(168)



(297)



39


Equity earnings

313



233



631



496


Income from continuing operations, net of income tax

455



528



1,383



1,395


Income from discontinued operations, net of income tax



1,777





1,857


Net income

455



2,305



1,383



3,252


Earnings attributable to noncontrolling interests

(10)



(28)



(43)



(179)


Preferred dividends

(20)



(37)



(41)



(73)


Preferred dividends of subsidiary

(1)



(1)



(1)



(1)


Earnings attributable to common shares

$

424



$

2,239



$

1,298



$

2,999










Basic earnings per common share (EPS):








Earnings

$

1.38



$

7.64



$

4.27



$

10.24


Weighted-average common shares outstanding

307,800



293,060



304,372



292,925










Diluted EPS:








Earnings

$

1.37



$

7.61



$

4.24



$

9.91


Weighted-average common shares outstanding

308,607



294,155



306,284



307,962


SEMPRA ENERGY
Table A (Continued)

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

Sempra 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 June 30, 2021:

  • $(72) million impact from foreign currency and inflation and associated undesignated derivatives
  • $(58) million net unrealized losses on commodity derivatives
  • $50 million equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other

Three months ended June 30, 2020:

  • $(21) million impact from foreign currency and inflation and associated undesignated derivatives
  • $5 million net unrealized gains on commodity derivatives
  • $1,754 million gain on the sale of our South American businesses

Six months ended June 30, 2021:

  • $(69) million impact from foreign currency and inflation and associated undesignated derivatives
  • $(87) million net unrealized losses on commodity derivatives
  • $50 million equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other

Six months ended June 30, 2020:

  • $129 million impact from foreign currency and inflation and associated undesignated derivatives
  • $46 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 from investment in RBS Sempra Commodities LLP, which represents an estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other
  • $1,754 million gain on the sale of our South American businesses

Sempra 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'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 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 expense (benefit)(1)

Non-controlling interests

Earnings


Pretax amount

Income tax expense (benefit)(1)

Non-controlling interests

Earnings


Three months ended June 30, 2021


Three months ended June 30, 2020

Sempra GAAP Earnings




$

424






$

2,239


Excluded items:











Impact from foreign currency and inflation and associated

undesignated derivatives

$

2


$

83


$

(13)


72



$

(1)


$

31


$

(9)


21



Net unrealized losses (gains) on commodity derivatives

79


(22)


1


58



(6)


1



(5)



Gain on sale of South American businesses






(2,915)


1,161



(1,754)



Earnings from investment in RBS Sempra Commodities LLP

(50)




(50)







Sempra Adjusted Earnings(2)




$

504






$

501













Diluted EPS:











Sempra GAAP Earnings




$

424






$

2,239































Weighted-average common shares outstanding, diluted




308,607






294,155



Sempra GAAP EPS




$

1.37






$

7.61















Sempra Adjusted Earnings(2)




$

504






$

501



Weighted-average common shares outstanding, diluted




308,607






294,155



Sempra Adjusted EPS(2)




$

1.63






$

1.71















Six months ended June 30, 2021


Six months ended June 30, 2020

Sempra GAAP Earnings




$

1,298






$

2,999


Excluded items:











Impact from foreign currency and inflation and associated

undesignated derivatives

$

32


$

41


$

(4)


69



$

94


$

(322)


$

99


(129)



Net unrealized losses (gains) on commodity derivatives

125


(35)


(3)


87



(63)


17



(46)



Impacts associated with Aliso Canyon litigation






100


(28)



72



Gain on sale of South American businesses






(2,915)


1,161



(1,754)



(Earnings) losses from investment in RBS Sempra Commodities LLP

(50)




(50)



100




100


Sempra Adjusted Earnings(2)




$

1,404






$

1,242













Diluted EPS:











Sempra GAAP Earnings




$

1,298






$

2,999



Add back dividends for dilutive series A preferred stock









52

















Sempra GAAP Earnings for GAAP EPS




$

1,298






$

3,051



Weighted-average common shares outstanding, diluted – GAAP




306,284






307,962



Sempra GAAP EPS




$

4.24






$

9.91















Sempra Adjusted Earnings(2)




$

1,404






$

1,242



Add back dividends for dilutive series A preferred stock









52



Add back dividends for dilutive series B preferred stock




19








Sempra Adjusted Earnings for Adjusted EPS(2)




$

1,423






$

1,294



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




310,541






307,962



Sempra Adjusted EPS(2)




$

4.58






$

4.20




(1)

Income taxes were primarily calculated based on applicable statutory tax rates. We did not record an income tax expense for the equity earnings or 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 losses (gains) on commodity derivatives for the three months and six months ended June 30, 2020.

(3)

In the six months ended June 30, 2021, because the assumed conversion of the series B preferred stock is dilutive for Adjusted Earnings, 4,257 series B preferred stock shares are added back to the denominator used to calculate Adjusted EPS.

SEMPRA ENERGY
Table A (Continued)

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

Sempra 2021 Adjusted EPS Guidance Range of $7.75 to $8.35 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:

  • $(69) million impact from foreign currency and inflation and associated undesignated derivatives for the six months ended June 30, 2021(1)
  • $(87) million net unrealized losses on commodity derivatives for the six months ended June 30, 2021
  • $50 million equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other

Sempra 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's business operations to prior and future periods. Sempra 2021 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 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 2021 Adjusted EPS Guidance Range to Sempra 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 GAAP EPS Guidance Range(2)

$

7.41


to

$

8.01


Excluded items:




Impact from foreign currency and inflation and associated undesignated derivatives(1)

0.22



0.22


Net unrealized losses on commodity derivatives

0.28



0.28


Earnings from investment in RBS Sempra Commodities LLP

(0.16)



(0.16)


Sempra Adjusted EPS Guidance Range

$

7.75


to

$

8.35


Weighted-average common shares outstanding, diluted (millions)(3)(4)



315




(1)

Amounts include impacts recorded in equity earnings from our unconsolidated equity method investments.

(2)

 Sempra's prior GAAP EPS Guidance Range for full-year 2021 has been updated to reflect the impact from foreign currency and inflation and associated undesignated derivatives, net unrealized losses on commodity derivatives and equity earnings from investment in RBS Sempra Commodities LLP for the six months ended June 30, 2021.

(3)

Weighted-average common shares outstanding reflects the conversion of the series A preferred stock that converted on January 15, 2021 and series B preferred stock that converted on July 15, 2021.

(4)

Includes the impact of the Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) exchange offer.

 













SEMPRA ENERGY

Table B





CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)





June 30,
2021


December 31,

2020(1)


(unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$

335



$

960


Restricted cash

33



22


Accounts receivable – trade, net

1,441



1,578


Accounts receivable – other, net

413



403


Due from unconsolidated affiliates

11



20


Income taxes receivable

74



113


Inventories

339



308


Regulatory assets

251



190


Greenhouse gas allowances

555



553


Other current assets

308



364


Total current assets

3,760



4,511






Other assets:




Restricted cash

3



3


Due from unconsolidated affiliates

702



780


Regulatory assets

2,216



1,822


Nuclear decommissioning trusts

1,024



1,019


Investment in Oncor Holdings

12,655



12,440


Other investments

1,393



1,388


Goodwill

1,602



1,602


Other intangible assets

382



202


Dedicated assets in support of certain benefit plans

523



512


Insurance receivable for Aliso Canyon costs

414



445


Deferred income taxes

167



136


Greenhouse gas allowances

259



101


Right-of-use assets – operating leases

513



543


Wildfire fund

349



363


Other long-term assets

730



753


Total other assets

22,932



22,109


Property, plant and equipment, net

41,916



40,003


Total assets

$

68,608



$

66,623



(1)     Derived from audited financial statements.

 













SEMPRA ENERGY

Table B (Continued)





CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)





June 30,
2021


December 31,

2020(1)


(unaudited)



LIABILITIES AND EQUITY




Current liabilities:




Short-term debt

$

2,266



$

885


Accounts payable – trade

1,291



1,359


Accounts payable – other

168



154


Due to unconsolidated affiliates

42



45


Dividends and interest payable

588



551


Accrued compensation and benefits

365



446


Regulatory liabilities

426



140


Current portion of long-term debt and finance leases

507



1,540


Reserve for Aliso Canyon costs

153



150


Greenhouse gas obligations

555



553


Other current liabilities

951



1,016


Total current liabilities

7,312



6,839






Long-term debt and finance leases

22,090



21,781






Deferred credits and other liabilities:




Due to unconsolidated affiliates

262



234


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

1,037



1,059


Deferred income taxes

3,325



2,871


Regulatory liabilities

3,352



3,372


Reserve for Aliso Canyon costs

269



301


Asset retirement obligations

3,150



3,113


Greenhouse gas obligations

104




Deferred credits and other

2,015



2,119


Total deferred credits and other liabilities

13,514



13,069


Equity:




Sempra Energy shareholders' equity

25,451



23,373


Preferred stock of subsidiary

20



20


Other noncontrolling interests

221



1,541


Total equity

25,692



24,934


Total liabilities and equity

$

68,608



$

66,623



(1)     Derived from audited financial statements.

 













SEMPRA ENERGY

Table C





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)





Six months ended June 30,


2021


2020


(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES




Net income

$

1,383



$

3,252


Less: Income from discontinued operations, net of income tax



(1,857)


Income from continuing operations, net of income tax

1,383



1,395


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

747



429


Net change in working capital components

(63)



375


Distributions from investments

532



220


Insurance receivable for Aliso Canyon costs

31



(166)


Changes in other noncurrent assets and liabilities, net

(375)



(185)


Net cash provided by continuing operations

2,255



2,068


Net cash used in discontinued operations



(1,041)


Net cash provided by operating activities

2,255



1,027






CASH FLOWS FROM INVESTING ACTIVITIES




Expenditures for property, plant and equipment

(2,424)



(2,198)


Expenditures for investments and acquisitions

(165)



(140)


Proceeds from sale of assets



5


Purchases of nuclear decommissioning trust assets

(542)



(797)


Proceeds from sales of nuclear decommissioning trust assets

542



797


Advances to unconsolidated affiliates

(8)



(25)


Other

9



17


Net cash used in continuing operations

(2,588)



(2,341)


Net cash provided by discontinued operations



5,195


Net cash (used in) provided by investing activities

(2,588)



2,854






CASH FLOWS FROM FINANCING ACTIVITIES




Common dividends paid

(634)



(567)


Preferred dividends paid

(68)



(71)


Issuances of preferred stock



891


Issuances of common stock

5



13


Repurchases of common stock

(38)



(64)


Issuances of debt (maturities greater than 90 days)

285



4,059


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

(1,432)



(1,970)


Increase (decrease) in short-term debt, net

1,584



(1,871)


Advances from unconsolidated affiliates

20



64


Proceeds from sale of noncontrolling interests

7




Purchases of noncontrolling interests

(10)



(27)


Other

(1)



(16)


Net cash (used in) provided by continuing operations

(282)



441


Net cash provided by discontinued operations



401


Net cash (used in) provided by financing activities

(282)



842






Effect of exchange rate changes in continuing operations

1



(7)


Effect of exchange rate changes in discontinued operations



(3)


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

1



(10)






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

(614)



4,713


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

985



217


Cash, cash equivalents and restricted cash, including discontinued operations, June 30

$

371



$

4,930


 

























SEMPRA ENERGY

Table D






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

(Dollars in millions)





Three months ended June 30,


Six months ended June 30,


2021


2020


2021


2020


(unaudited)

Earnings (Losses) Attributable to Common Shares





SDG&E

$

186



$

193



$

398



$

455


SoCalGas

94



146



501



449


Sempra Texas Utilities

138



144



273



249


Sempra Mexico

4



61



61



252


Sempra LNG

47



61



193



136


Parent and other

(45)



(141)



(128)



(389)


Discontinued operations



1,775





1,847


Total

$

424



$

2,239



$

1,298



$

2,999



















Three months ended June 30,


Six months ended June 30,


2021


2020


2021


2020


(unaudited)

Capital Expenditures, Investments and Acquisitions





SDG&E

$

517



$

448



$

1,072



$

850


SoCalGas

477



497



936



885


Sempra Texas Utilities

50



53



100



139


Sempra Mexico

89



151



231



321


Sempra LNG

160



90



249



137


Parent and other



3



1



6


Total

$

1,293



$

1,242



$

2,589



$

2,338


 




























SEMPRA ENERGY

Table E






OTHER OPERATING STATISTICS











Three months ended June 30,


Six months ended June 30,


2021


2020


2021


2020



(unaudited)

UTILITIES








SDG&E and SoCalGas








Gas sales (Bcf)(1)

72



71



199



200


Transportation (Bcf)(1)

145



129



282



277


Total deliveries (Bcf)(1)

217



200



481



477










Total gas customer meters (thousands)





6,983



6,943











SDG&E








Electric sales (millions of kWhs)(1)

2,834



3,124



6,123



6,584


Direct Access and Community Choice Aggregation (millions of kWhs)

974



847



1,787



1,616


Total deliveries (millions of kWhs)(1)

3,808



3,971



7,910



8,200










Total electric customer meters (thousands)





1,487



1,478










Oncor(2)








Total deliveries (millions of kWhs)

32,889



31,038



63,566



61,458


Total electric customer meters (thousands)





3,804



3,723










Ecogas








Natural gas sales (Bcf)

1



1



2



2


Natural gas customer meters (thousands)





140



136


















ENERGY-RELATED BUSINESSES








Power generated and sold








Sempra Mexico








Termoeléctrica de Mexicali (TdM) (millions of kWhs)

826



457



1,671



1,283


Wind and solar (millions of kWhs)(3)

769



381



1,312



803



























(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 June 30, 2021

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, Parent & Other


Total















Revenues

$

1,318



$

1,124



$



$

404



$

52



$

(157)



$

2,741


Cost of sales and other expenses

(800)



(799)



(1)



(215)



(159)



148



(1,826)


Depreciation and amortization

(220)



(180)





(57)



(2)



(4)



(463)


Other income (expense), net

22



(2)





33





19



72


Income (loss) before interest and tax(1)

320



143



(1)



165



(109)



6



524


Net interest (expense) income

(101)



(40)





(29)



5



(78)



(243)


Income tax (expense) benefit

(33)



(8)





(113)



19



(4)



(139)


Equity earnings (losses), net





139



(9)



133



50



313


(Earnings) losses attributable to noncontrolling interests







(10)



(1)



1



(10)


Preferred dividends



(1)









(20)



(21)


Earnings (losses) attributable to common shares

$

186



$

94



$

138



$

4



$

47



$

(45)



$

424






























Three months ended June 30, 2020

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, Parent & Other


Total















Revenues

$

1,235



$

1,010



$



$

275



$

69



$

(63)



$

2,526


Cost of sales and other expenses

(690)



(611)



1



(111)



(74)



24



(1,461)


Depreciation and amortization

(197)



(162)





(47)



(3)



(3)



(412)


Other income (expense), net

18



(2)





36





10



62


Income (loss) before interest and tax(1)

366



235



1



153



(8)



(32)



715


Net interest (expense) income

(103)



(39)





(17)



3



(96)



(252)


Income tax (expense) benefit

(70)



(49)





(54)



(18)



23



(168)


Equity earnings, net





143



6



84





233


(Earnings) losses attributable to noncontrolling interests







(27)





1



(26)


Preferred dividends



(1)









(37)



(38)


Earnings (losses) from continuing operations

$

193



$

146



$

144



$

61



$

61



$

(141)



464


Earnings from discontinued operations(2)













1,775


Earnings attributable to common shares













$

2,239




















(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 $1,754 million gain on the sale of our South American businesses in the second quarter of 2020.

 

SEMPRA ENERGY

Table F (Unaudited)
















STATEMENTS OF OPERATIONS DATA BY SEGMENT

(Dollars in millions)

Six months ended June 30, 2021

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, Parent & Other


Total















Revenues

$

2,655



$

2,632



$



$

771



$

248



$

(306)



$

6,000


Cost of sales and other expenses

(1,601)



(1,633)



(3)



(410)



(298)



275



(3,670)


Depreciation and amortization

(433)



(353)





(108)



(5)



(6)



(905)


Other income (expense), net

57



37





(10)





23



107


Income (loss) before interest and tax(1)

678



683



(3)



243



(55)



(14)



1,532


Net interest (expense) income

(202)



(79)





(55)



11



(158)



(483)


Income tax (expense) benefit

(78)



(102)





(121)



(30)



34



(297)


Equity earnings, net





276



38



267



50



631


(Earnings) losses attributable to noncontrolling interests







(44)





1



(43)


Preferred dividends



(1)









(41)



(42)


Earnings (losses) attributable to common shares

$

398



$

501



$

273



$

61



$

193



$

(128)



$

1,298












































Six months ended June 30, 2020

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, Parent & Other


Total















Revenues

$

2,504



$

2,405



$



$

584



$

192



$

(130)



$

5,555


Cost of sales and other expenses

(1,369)



(1,483)





(248)



(161)



87



(3,174)


Depreciation and amortization

(398)



(321)





(94)



(5)



(6)



(824)


Other income (expense), net

49



28





(247)





(22)



(192)


Income (loss) before interest and tax(1)

786



629





(5)



26



(71)



1,365


Net interest (expense) income

(203)



(78)





(31)



9



(202)



(505)


Income tax (expense) benefit

(128)



(101)





253



(41)



56



39


Equity earnings (losses), net





249



206



141



(100)



496


(Earnings) losses attributable to noncontrolling interests







(171)



1



1



(169)


Preferred dividends



(1)









(73)



(74)


Earnings (losses) from continuing operations

$

455



$

449



$

249



$

252



$

136



$

(389)



1,152


Earnings from discontinued operations(2)













1,847


Earnings attributable to common shares













$

2,999

















(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 $1,754 million gain on the sale of our South American businesses in the second quarter of 2020.

 

 

SOURCE Sempra

Sempra LNG And PGNiG Sign MOU For LNG Capacity From North American LNG Portfolio

Body

SAN DIEGO, July 27, 2021 /PRNewswire/ -- Sempra LNG today announced that it has entered into a memorandum of understanding (MOU) with the Polish Oil & Gas Company (PGNiG) for the potential purchase of approximately 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from Sempra LNG's portfolio of projects in North America. As part of the MOU, Sempra LNG and PGNiG are also working toward a framework for the reporting, mitigation and reduction of greenhouse gas (GHG) emissions throughout the LNG value chain. 

"We look forward to continuing to work with PGNiG to help meet their energy objectives from our strategically positioned LNG facilities and development projects on the Gulf and Pacific Coasts of North America," said Justin Bird, chief executive officer of Sempra LNG. "As we look to extend our LNG business to include net-zero solutions, working with companies like PGNiG to advance best practices in GHG mitigation can build on the global environmental benefits of substituting higher-emission fuels with lower-carbon LNG while also continuing to drive down emissions in the U.S. natural gas value chain."  

"We highly value our relationship with Sempra LNG and we are keen to continue it. The MOU allows for shifting the volumes originally contracted at Port Arthur LNG to other facilities from Sempra's projects portfolio," said Paweł Majewski, chief executive officer of PGNiG SA. "We are also determined to curb the carbon footprint of fuels offered by PGNiG and are convinced that our cooperation with LNG producers like Sempra LNG will contribute to reach this goal most effectively."

The MOU is non-binding and was completed in connection with the termination of the parties' sale and purchase agreement (SPA) signed in 2018 that provided for 2 Mtpa of LNG supply to be delivered from the Port Arthur LNG project.

Sempra LNG owns a 50.2% interest in Cameron LNG, a 12-Mtpa export facility operating in Hackberry, Louisiana (Phase 1), and is working with Cameron LNG on a proposed expansion of the facility through one additional liquefaction train with an offtake capacity of over 6 Mtpa.

Sempra LNG, IEnova and TotalEnergies are building the 3-Mtpa ECA LNG project in Baja California, Mexico. Phase 1 of the project is under construction and first production of LNG is expected by the end of 2024. A potential expansion project is in the early stages of development.

Sempra LNG is also developing additional LNG facilities and carbon sequestration infrastructure along the LNG value chain on the Gulf and Pacific Coasts of North America. 

About Sempra LNG
Sempra LNG's mission is being North America's premier LNG infrastructure company by providing sustainable, safe and reliable access to U.S. natural gas for global markets. Sempra LNG owns interests in Cameron LNG, a 12 Mtpa export facility operating in Hackberry, Louisiana and Energía Costa Azul (ECA) LNG, a 3 Mtpa export facility under construction in Baja California, Mexico.  Sempra LNG is developing additional LNG export facilities on the Gulf and Pacific Coasts of North America including Port Arthur LNG in Texas, Vista Pacífico LNG in Mexico, expansions of Cameron LNG and ECA LNG, as well as supporting pipelines, storage and carbon sequestration projects. Through disciplined and innovative processes, Sempra LNG is facilitating the global energy transition by leading the responsible development of lower-carbon energy infrastructure investments along the LNG value chain. For more information about Sempra LNG, please visit www.SempraLNG.com.

About PGNiG
Polish Oil and Gas Company (PGNiG) is the leader of the Polish natural gas market. Listed on the Warsaw Stock Exchange the company's core business includes exploration and production of natural gas and crude oil. Its key branches and subsidiaries import, store, sell and distribute gaseous and liquid fuels. They also generate heat and electricity. PGNiG holds stake in about 30 companies including entities that provide professional geophysical, drilling and maintenance services. PGNiG holds exploration and production licenses on the Norwegian Continental Shelf, in Pakistan and United Arab Emirates. The exploration and production activity in Norway is carried out by PGNiG Upstream Norway. While Munich-based PGNiG Supply & Trading is engaged in gas trading in Western Europe, also operating the LNG trading office in London. In 2020, PGNiG launched a research program aimed at developing alternative fuels and ultimately including them in the sales offer. The PGNiG Group wants to become involved in the use of biomethane as well as the production, storage and distribution of hydrogen. PGNiG wants to expand its competences in the area of generating electricity from renewable energy sources based on photovoltaic and wind farms.

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: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the U.S. Department of Energy 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; 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 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 impact our ability to obtain satisfactory levels of affordable insurance; cybersecurity threats to 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; 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 Sempra Energy's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not the same company as San Diego Gas & Electric or Southern California Gas Company, and Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not regulated by the California Public Utilities Commission.

Sempra LNG Logo (PRNewsfoto/Sempra Energy)

 

SOURCE Sempra LNG

bp To Deliver Its First Carbon Offset LNG Cargo To Sempra's Energía Costa Azul Receiving Terminal In Mexico

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SAN DIEGO, July 15, 2021 /PRNewswire/ -- bpGM, Sempra LNG and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), today announced that they have entered into a contract for the delivery and receipt of the companies' first carbon offset liquefied natural gas (LNG) cargo. The cargo is expected to be delivered to the Energía Costa Azul (ECA) terminal in Mexico on July 16, 2021, and it will be sourced from bp's global LNG portfolio.

Global demand for natural gas and LNG is expected to continue to grow. IEnova and Sempra LNG each intend to continue supporting this growth by diversifying their offerings, including developing bundled carbon offset LNG products to help meet customers' demand.

Justin Bird, CEO of Sempra LNG said: "We are excited to advance our goal to lower GHG emission intensity at our LNG facilities. Sempra LNG continues to build a strong business portfolio focused on sustainability and the global energy transition."

Carbon dioxide (CO2) and methane (CH4) emissions associated with the LNG cargo, from wellhead to discharge terminal, will be estimated using bp's GHG quantification methodology for LNG. The methodology has been developed following relevant international standards and may be updated from time to time.

These estimated emissions will be offset by retiring a corresponding amount of carbon credits, sourced from a Mexican afforestation project from bp's vetted portfolio of offsets on behalf of Sempra LNG. 

Carol Howle, EVP of trading & shipping at bp said: "Natural gas has a key role to play in getting the world to net zero. This new offer further demonstrates our determination to remain one of the world's leading and most innovative LNG suppliers. The development and continuous improvement of a clear and reliable methodology for quantifying the carbon intensity of our LNG supply chain is an important step in helping our customers deliver their sustainability goals and supports our ambition to help the world get to net zero."

Sharon Weintraub, SVP, gas and power trading international at bp said: "Delivering carbon offset LNG is an important part of meeting growing global energy demand. For bp, this is part of continuing to meet growing customer demands for new energy solutions that will amplify value for our business. For customers, this means access to exciting initiatives that can help them in pursuing their sustainability strategies by quantifying the carbon intensity associated with the LNG supply from bp's diverse portfolio of LNG sources and then offsetting those emissions."

More widely, bp has set out specific GHG reductions and other aims for 2030 in support of its ambition to be a net zero company by 2050 or sooner and to help the world get to net zero. bp does not intend to rely on carbon credits to meet its 2030 aims. 

Tania Ortiz, CEO of IEnova added: "We are pleased to work with Sempra LNG to help deliver the much-needed natural gas to customers in Mexico in a sustainable manner. We are always looking for new ways we can create value not only through the safe and responsible operation of our facilities, but also by contributing toward the energy transition."

Sempra LNG and IEnova are currently constructing liquefaction facilities that will be located adjacent to ECA.  Although this carbon off-set LNG cargo is from bp's global LNG portfolio, ECA will continue to serve the needs of its existing customers, including from the receipt of multiple LNG cargoes each year pursuant to a long-term sales and purchase agreement between bp and its partners in Tangguh LNG and Sempra LNG.

Sempra LNG has established a goal to operate its existing LNG infrastructure at a GHG emissions intensity 20% less than its 2020 baseline and expects to establish additional goals by 2025, as the company continues to grow and bring more projects online.

About Sempra LNG
Sempra LNG's mission is being North America's premier LNG infrastructure company by providing sustainable, safe and reliable access to U.S. natural gas for global markets. Sempra LNG owns interests in Cameron LNG, a 12 Mtpa export facility operating in Hackberry, Louisiana and Energía Costa Azul (ECA) LNG, a 3 Mtpa export facility under construction in Baja California, Mexico.  Sempra LNG is developing additional LNG export facilities on the Gulf and Pacific Coasts of North America including Port Arthur LNG in Texas, expansions of Cameron LNG and ECA LNG, as well as supporting pipelines and storage projects. Through disciplined and innovative processes, Sempra LNG is facilitating the global energy transition by leading the responsible development of lower-carbon energy infrastructure investments along the LNG value chain. For more information about Sempra LNG, please visit www.SempraLNG.com.

About bp
bp's purpose is to reimagine energy for people and our planet. It has set out an ambition to be a net zero company by 2050, or sooner and help the world get to net zero, and a strategy for delivering on that ambition. bpGM is a wholly owned subsidiary of bp p.l.c. Its main business activities include the trading of gas, power, LNG, emissions and other energy products in the UK and overseas. For more information about bp, please visit www.bp.com

About IEnova
IEnova develops, builds and operates energy infrastructure in Mexico. As of the end of 2020, the company has more than 1,400 employees and approximately $10.5 billion in total assets, making it one of the largest private energy companies in the country.

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: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the U.S. Department of Energy 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; 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 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 impact our ability to obtain satisfactory levels of affordable insurance; cybersecurity threats to 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; 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 Sempra Energy's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not the same company as San Diego Gas & Electric or Southern California Gas Company, and Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not regulated by the California Public Utilities Commission.

Sempra LNG Logo (PRNewsfoto/Sempra Energy)

 

SOURCE Sempra LNG

Sempra Provides Strategic Update And Financial Outlook At Virtual Investor Day

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SAN DIEGO, June 29, 2021 /PRNewswire/ -- Today, Sempra's (NYSE: SRE) (BMV: SRE) senior management team is providing an update on the company's strategy, operations and financial outlook at its 2021 Virtual Investor Day.

"Over the next decade, we see the economies of North America becoming increasingly integrated," said Jeffrey W. Martin, chairman and CEO of Sempra. "As a company, we are well positioned to build the critical energy infrastructure that will be needed to support new growth, while accelerating North America's transition to cleaner forms of energy. Our competitive advantage lies in our enterprise-wide commitment to innovation, sustainability and leadership."

Sempra's three business platforms – Sempra California, Sempra Texas and Sempra Infrastructure – are strategically positioned in some of the largest economies in North America with a critical role in the energy future. The company's strategic priorities are centered on executing a $32 billion capital plan, strengthening the balance sheet and returning value to shareholders. Sempra's robust capital plan focuses on its utilities and provides strong visibility to future earnings growth.

Earnings Guidance
"In the last several years, we have realigned our portfolio with the objective of simplifying the business while improving our financial results – and it is paying dividends," said Trevor Mihalik, executive vice president and chief financial officer for Sempra. "Today, the strength of Sempra's balance sheet and a leading earnings growth profile bolster our mission to be North America's premier energy infrastructure company."

Sempra is increasing its full-year 2021 GAAP EPS guidance range to $7.67 to $8.27 and increasing its full-year 2021 adjusted EPS guidance range to $7.75 to $8.35. Sempra is also announcing its full-year 2022 EPS guidance range of $8.10 to $8.70.

Sempra California
Sempra's California platform, San Diego Gas & Electric Co. (SDG&E) and Southern California Gas Co. (SoCalGas), are helping to decarbonize the state's energy system, while working to provide safe, reliable and cleaner energy to approximately 26 million consumers. Recent operating highlights include:

  • Received a decision at SDG&E and SoCalGas in their Petition for Modification of the 2019 General Rate Case (GRC) establishing attrition rates for 2022 and 2023. This decision supports the constructive outcomes of the GRC, which was based on the Risk Assessment Mitigation Phase process and the continued delivery of safe and reliable service to customers.
  • Announced goals at SDG&E and SoCalGas to achieve net-zero GHG emissions by 2045 across emission scopes 1, 2 and 3.

Sempra Texas
Sempra's Texas platform includes Oncor Electric Delivery Co. LLC (Oncor) and Sharyland Utilities whose businesses continue to modernize and extend their transmission and distribution networks to connect customers to cleaner sources of electricity. Supported by increasing population growth in the Dallas-Fort Worth area, Oncor has continued to grow its customer base anchored by a strong commitment to safety, reliability and operational excellence. Oncor's recent operating highlights include:

  • Added approximately 77,000 additional premises in 2020, the best organic growth for the company since 2007 and two times the national average.
  • Achieved one of the highest safety records in the utility's history.
  • Delivered top quartile reliability in 2020, ahead of its 2022 goal.

Sempra Infrastructure
Sempra Infrastructure is well-positioned to advance growth opportunities by continuing to develop, build, and operate the energy systems of the future. The new business platform is expected to create increased shareholder value and provide an improved platform for innovation and potential new investments in renewables, hydrogen, green ammonia, energy storage and carbon sequestration.

Through a series of transactions announced last year, Sempra formed Sempra Infrastructure, a strategic growth platform with an implied enterprise value of approximately $25.2 billion, including expected asset-related debt of $8.37 billion. In April, Sempra announced that it had 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 sale is expected to close in the coming weeks. Additionally, in May, Sempra announced the completion of its exchange offer to acquire the outstanding shares of IEnova (Infraestructura Energética Nova, S.A.B de C.V.) not owned by Sempra. Sempra's ownership interest in IEnova increased to 96.4%, exceeding its initial target of 95% ownership of IEnova through the exchange offer.

Sempra Infrastructure continues to advance its liquefied natural gas (LNG) projects under development and in operation, with a view toward improving energy diversification in foreign markets and supporting the global energy transition.

Additionally, in Mexico, the company is currently operating and constructing approximately 1,000 megawatts of renewables projects with a development pipeline of nearly 3 gigawatts of cross-border solar, wind and battery projects.

Utilizing Technology and Innovation to Drive Energy Transition
The Sempra family of companies are focusing on the importance of innovation, technology and leadership to better serve customers, improve operational safety and efficiency, and support the modernization of energy systems. Notable examples over the past year include:

  • SDG&E continued its top-tier wildfire mitigation efforts with a focus on innovation and weather science. The utility has invested more than $3 billion building a more wildfire resistant system, including implementing a robust weather network, using drone and satellite imaging for asset and vegetation management, and fire hardening its infrastructure assets.
  • SoCalGas' H2 Hydrogen Home is the first project of its kind in the U.S. demonstrating how carbon-free gas made from renewable electricity can be used in pure form (or as a blend) to fuel the clean energy systems of the future. The project was recently named one of Fast Company's "World-Changing Ideas" in the North America category, which honors innovations for the good of society and the planet.
  • Oncor inspects approximately 3,700 miles of electrical infrastructure each year with aerial technology capturing digital imagery to create 3D models of the transmission system to identify public safety concerns, component issues, property encroachments, and vegetation management issues.

Sempra Brand Updated to Reflect Infrastructure-Focused Strategy

Sempra has refreshed its brand to create better alignment with the company's North American infrastructure strategy, including removing "Energy" from its wordmark. Modernizing the brand also supports the company's vision to deliver energy with purpose, ideal of service to others and long-standing commitment to environmental stewardship.

Sempra's new brand name will be effective with the New York Stock Exchange on July 2, 2021. The legal name of the company will continue to be Sempra Energy, doing business as Sempra. The company's common stock will continue trading under the ticker symbol "SRE."

Non-GAAP Financial Measure
This press release includes Sempra's 2021 adjusted EPS guidance range, which is a non-GAAP financial measure. See the appendix for additional information regarding this non-GAAP financial measure.

About Sempra
Sempra's mission is to be North America's premier energy infrastructure company. The Sempra 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 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 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, please visit Sempra's website at http://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 Sempra Energy'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.

APPENDIX

RECONCILIATION OF SEMPRA 2021 ADJUSTED EPS GUIDANCE RANGE (Unaudited)

Sempra 2021 updated Adjusted EPS Guidance Range of $7.75 to $8.35 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(1) 
  • $(29) million net unrealized losses on commodity derivatives for the three months ended March 31, 2021

Sempra 2021 Adjusted EPS Guidance Range is a non-GAAP financial measure (GAAP represents generally accepted accounting principles in the United States of America). 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's business operations to prior and future periods. Sempra 2021 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 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 2021 Adjusted EPS Guidance Range to Sempra 2021 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP.


Full-Year 2021


Full-Year 2022

Sempra GAAP EPS Guidance Range1

$          7.67

 to 

$           8.27


$           8.10

 to 

$           8.70

Excluded items:








     Impact from foreign currency and inflation and associated undesignated derivatives2

(0.01)


(0.01)


-


-

     Net unrealized losses on commodity derivatives

0.09


0.09


-


-

Sempra Adjusted EPS Guidance Range3

$          7.75

 to 

$           8.35


$           8.10

 to 

$           8.70

Weighted-average common shares outstanding, diluted (millions)4,5



315




323

1.   On June 29, 2021, Sempra raised full-year 2021 GAAP EPS Guidance Range from $7.42 to $8.02, to $7.67 to $8.27. The range reflects 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 and an increase in weighted-average common shares outstanding from recent IEnova exchange offer.
2.   Amounts include impacts recorded in equity earnings from our unconsolidated equity method investments.   
3.   On June 29, 2021, Sempra raised full-year 2021 Adjusted EPS Guidance Range from $7.50 to $8.10, to $7.75 to $8.35.   
4.   Weighted-average common shares outstanding reflects the conversion of the mandatory convertible series A preferred stock which converted on January 15, 2021, and series B preferred stock which will automatically convert on the mandatory conversion stock date of July 15, 2021. Share conversion rate assumed to be midpoint of conversion rates between the initial and threshold appreciation prices.
5.   Includes impact of IEnova exchange offer.


1. Amounts include impacts recorded in equity earnings from our unconsolidated equity method investments.

 

 

SOURCE Sempra Energy