Sempra Energy Announces First-Quarter 2018 Results
Sempra Energy Announces First-Quarter 2018 Results
- Leadership Succession Plan Implemented
- Oncor Transaction Completed
- IEnova Awarded $130 Million Liquids Fuel Marine Terminal Project
SAN DIEGO, May 7, 2018 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported first-quarter 2018 earnings of $347 million, or $1.33 per diluted share, compared with first-quarter 2017 earnings of $441 million, or $1.75 per diluted share.
Sempra Energy's first-quarter 2018 earnings included higher financing costs at the parent company. These financing costs were incurred starting in January, primarily related to the anticipated acquisition of a majority stake in Oncor Electric Delivery Company LLC (Oncor), which was completed in early March. First-quarter 2018 consolidated results also reflected $25 million income-tax expense to adjust 2017 provisional amounts related to the Tax Cuts and Jobs Act of 2017.
"During the quarter, we successfully implemented our leadership succession plan, completed the Oncor transaction and continued execution of our capital program in our utility and infrastructure businesses," said Jeffrey W. Martin, CEO of Sempra Energy. "Our underlying business performance was solid and consistent with our expectations."
OPERATING HIGHLIGHTS
On May 1, Martin became Sempra Energy's CEO, while Joseph A. Householder became Sempra Energy's president and chief operating officer and Trevor I. Mihalik became Sempra Energy's executive vice president and chief financial officer. Debra L. Reed announced in March that she would step down as president and CEO of Sempra Energy May 1 and continue as executive chairman of the company until her retirement on Dec. 1. Previously, Martin was Sempra Energy's executive vice president and chief financial officer, Householder was Sempra Energy's corporate group president of infrastructure businesses and Mihalik was Sempra Energy's senior vice president, controller and chief accounting officer.
On March 9, Sempra Energy completed its $9.45 billion acquisition of an approximate 80-percent indirect ownership interest in Oncor, after receiving final regulatory approvals for the transaction. Sempra Energy expects $320 million to $360 million for its portion of partial-year earnings from Oncor in 2018.
Last month, San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) filed supplemental testimony in their 2019 General Rate Case applications regarding impacts of federal tax reform. As a result of tax reform, SoCalGas is projecting reduced customer bills, while SDG&E expects incremental wildfire mitigation investments to substantially offset any bill reductions.
Sempra Energy's Mexican subsidiary IEnova announced April 12 that the company has been awarded a $130 million project to build and operate a liquid fuels marine terminal near Ensenada, Mexico. In connection with the project, IEnova has signed long-term supply contracts with multinational counterparties, including an affiliate of Chevron, for all of the terminal's capacity. The terminal is expected to commence operations in the second half of 2020.
INTERNET BROADCAST
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. EDT with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 1980202.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2017 revenues of more than $11 billion. Sempra Energy is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' approximately 20,000 employees serve more than 40 million consumers worldwide.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "assumes," "depends," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "target," "pursue," "outlook," "maintain," or similar expressions or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements.
Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the California Public Utilities Commission (CPUC), U.S. Department of Energy, California Division of Oil, Gas, and Geothermal Resources, Federal Energy Regulatory Commission, U.S. Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, Los Angeles County Department of Public Health, Public Utility Commission of Texas, states, cities and counties, and other regulatory and governmental bodies in the United States and other countries in which we operate; the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget, and risks in obtaining the consent and participation of partners and counterparties; the resolution of civil and criminal litigation and regulatory investigations; deviations from regulatory precedent or practice that result in a reallocation of benefits or burdens among shareholders and ratepayers; denial of approvals of proposed settlements or modifications of settlements; and delays in, or disallowance or denial of, regulatory agency authorizations to recover costs in rates from customers (including with respect to amounts associated with the San Onofre Nuclear Generating Station facility and 2007 wildfires) or regulatory agency approval for projects required to enhance safety and reliability, any of which may raise our cost of capital and materially impair our ability to finance our operations; the greater degree and prevalence of wildfires in California in recent years and risk that we may be found liable for damages regardless of fault, such as in cases where inverse condemnation applies, and risk that we may not be able to recover any such costs in rates from customers in California; the availability of electric power, natural gas and liquefied natural gas, and natural gas pipeline and storage capacity, including disruptions caused by failures in the transmission grid, moratoriums or limitations on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; changes in energy markets; volatility in commodity prices; moves to reduce or eliminate reliance on natural gas; and the impact on the value of our investments in natural gas storage and related assets from low natural gas prices, low volatility of natural gas prices and the inability to procure favorable long-term contracts for storage services; risks posed by actions of third parties who control the operations of our investments, and risks that our partners or counterparties will be unable or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, accidents, equipment failures, computer system outages, explosions, terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of greenhouse gases, radioactive materials and harmful emissions, cause wildfires and subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of insurance, to the extent that such insurance is available or not prohibitively expensive; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses and the confidentiality of our proprietary information and the personal information of our customers and employees; capital markets and economic conditions, including the availability of credit and the liquidity of our investments; and fluctuations in inflation, interest and currency exchange rates and our ability to effectively hedge the risk of such fluctuations; the impact of recent federal tax reform and uncertainty as to how it may be applied, and our ability to mitigate adverse impacts; actions by credit rating agencies to downgrade our credit ratings or those of our subsidiaries or to place those ratings on negative outlook; changes in foreign and domestic trade policies and laws, including border tariffs, and revisions to international trade agreements, such as the North American Free Trade Agreement, that make us less competitive or impair our ability to resolve trade disputes; the ability to win competitively bid infrastructure projects against a number of strong and aggressive competitors; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company's (SDG&E) electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates due to the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through SDG&E's electric transmission and distribution system and from possible departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation or other forms of distributed and local power generation, and the potential risk of nonrecovery for stranded assets and contractual obligations; the ability to realize the anticipated benefits from our investment in Oncor Electric Delivery Holdings Company LLC (Oncor Holdings); the ability to obtain additional permanent equity financing for the acquisition of our investment in Oncor Holdings on favorable terms; indebtedness we have incurred to fund the acquisition of our investment in Oncor Holdings, which may make it more difficult for us to repay or refinance our debt or may require us to take other actions that may decrease business flexibility and increase borrowing costs; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to its requirement to meet and maintain its regulatory capital structure, or because any of the three major credit rating agencies rates Oncor's senior secured debt securities below BBB (or the equivalent) or Oncor's independent directors or a minority member director determine it is in the best interest of Oncor to retain such amounts to meet future capital expenditures; and other uncertainties, some of which may be difficult to predict and are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov. Investors should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.
Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor and IEnova are not regulated by the California Public Utilities Commission.
SEMPRA ENERGY
Table A
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
March 31,
---------
(Dollars in
millions,
except per
share amounts) 2018 2017(1)
--------------- ---- ------
(unaudited)
REVENUES
Utilities $2,598 $2,698
Energy-related
businesses 364 333
Total revenues 2,962 3,031
EXPENSES AND OTHER INCOME
Utilities:
Cost of electric
fuel and
purchased power (546) (527)
Cost of natural
gas (348) (485)
Energy-related businesses:
Cost of natural
gas, electric
fuel and
purchased power (69) (67)
Other cost of
sales (18) (22)
Operation and
maintenance (781) (719)
Depreciation and
amortization (386) (360)
Franchise fees
and other taxes (117) (110)
Other income,
net 153 174
Interest income 33 6
Interest expense (216) (169)
Income before
income taxes
and equity
losses of
unconsolidated
subsidiaries 667 752
Income tax
expense (289) (295)
Equity losses (20) (5)
Net income 358 452
Losses
(earnings)
attributable to
noncontrolling
interests 17 (11)
Mandatory
convertible
preferred stock
dividends (28) -
Earnings
attributable to
common shares $347 $441
==== ====
Basic earnings
per common
share $1.34 $1.76
===== =====
Weighted-
average number
of shares
outstanding,
basic
(thousands) 257,932 251,131
======= =======
Diluted earnings
per common
share $1.33 $1.75
===== =====
Weighted-
average number
of shares
outstanding,
diluted
(thousands) 259,490 252,246
======= =======
Dividends
declared per
share of common
stock $0.90 $0.82
===== =====
(1) As adjusted for the retrospective
adoption of ASU 2017-07 and a
reclassification to conform to current
year presentation.
SEMPRA ENERGY
Table A (Continued)
RECONCILIATION OF SEMPRA ENERGY ADJUSTED EARNINGS TO SEMPRA ENERGY GAAP EARNINGS (Unaudited)
Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2018 and 2017 as follows:
Three months ended March 31, 2018:
-- $(25) million income tax expense in 2018 to adjust Tax Cuts and Jobs Act
of 2017 (TCJA) provisional amounts
Three months ended March 31, 2017:
-- $3 million deferred income tax benefit on Termoeléctrica de Mexicali
(TdM) assets held for sale at Sempra Mexico
Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and/or nature of the excluded items, management believes that these non-GAAP financial measures provide a meaningful comparison of the performance of Sempra Energy's business operations from 2018 to 2017 and to future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy GAAP Earnings and GAAP Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.
Income tax Earnings Income tax Noncontrolling Earnings
expense benefit (1) interests
------- ---------- ---------
(Dollars in Three months ended March 31,
millions, except 2018
per share
amounts) Three months ended March 31, 2017
----------------- ----------------------------- ---------------------------------
Sempra Energy GAAP
Earnings $347 $441
Excluded items:
Impact from the
TCJA $25 25 $ - $ - -
Deferred income
tax benefit
associated with
TdM - - (5) 2 (3)
Sempra Energy
Adjusted Earnings $372 $438
==== ====
Diluted earnings
per common share:
Sempra Energy GAAP
Earnings $1.33 $1.75
===== =====
Sempra Energy
Adjusted Earnings $1.43 $1.74
===== =====
Weighted-average
number of shares
outstanding,
diluted
(thousands) 259,490 252,246
----------------- ------- -------
(1) Income taxes
associated
with TdM
were
calculated
based on
the
applicable
statutory
tax rate,
including
translation
from
historic to
current
exchange
rates.
SEMPRA ENERGY
Table B
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in
millions) March 31, 2018 December 31, 2017(1)
----------- -------------- --------------------
(unaudited)
Assets
Current assets:
Cash and cash
equivalents $239 $288
Restricted cash 54 62
Accounts
receivable, net 1,681 1,584
Due from
unconsolidated
affiliates 63 37
Income taxes
receivable 118 110
Inventories 285 307
Regulatory
assets 241 325
Fixed-price
contracts and
other
derivatives 111 66
Greenhouse gas
allowances 301 299
Assets held for
sale 135 127
Other 166 136
Total current
assets 3,394 3,341
----- -----
Other assets:
Restricted cash 14 14
Due from
unconsolidated
affiliates 666 598
Regulatory
assets 1,597 1,517
Nuclear
decommissioning
trusts 1,017 1,033
Investment in
Oncor Holdings 9,176 -
Other
investments 2,590 2,527
Goodwill 2,406 2,397
Other intangible
assets 596 596
Dedicated assets
in support of
certain benefit
plans 421 455
Insurance
receivable for
Aliso Canyon
costs 447 418
Deferred income
taxes 117 170
Greenhouse gas
allowances 154 93
Sundry 865 792
Total other
assets 20,066 10,610
Property, plant
and equipment,
net 37,025 36,503
------ ------
Total assets $60,485 $50,454
======= =======
Liabilities and Equity
Current liabilities:
Short-term debt $3,665 $1,540
Accounts payable 1,205 1,523
Due to
unconsolidated
affiliates 6 7
Dividends and
interest
payable 494 342
Accrued
compensation
and benefits 253 439
Regulatory
liabilities 210 109
Current portion
of long-term
debt 1,871 1,427
Fixed-price
contracts and
other
derivatives 69 109
Customer
deposits 164 162
Reserve for
Aliso Canyon
costs 122 84
Greenhouse gas
obligations 301 299
Liabilities held
for sale 52 49
Other 697 545
--- ---
Total current
liabilities 9,109 6,635
----- -----
Long-term debt 20,863 16,445
------ ------
Deferred credits and other
liabilities:
Customer
advances for
construction 149 150
Due to
unconsolidated
affiliates 35 35
Pension and
other
postretirement
benefit plan
obligations,
net of plan
assets 1,215 1,148
Deferred income
taxes 2,654 2,767
Deferred
investment tax
credits 26 28
Regulatory
liabilities 3,922 3,922
Asset retirement
obligations 2,766 2,732
Fixed-price
contracts and
other
derivatives 275 316
Greenhouse gas
obligations 19 -
Deferred credits
and other 1,147 1,136
----- -----
Total deferred
credits and
other
liabilities 12,208 12,234
------ ------
Equity:
Sempra Energy
shareholders'
equity 15,844 12,670
Preferred stock
of subsidiary 20 20
Other
noncontrolling
interests 2,441 2,450
----- -----
Total equity 18,305 15,140
------ ------
Total
liabilities and
equity $60,485 $50,454
======= =======
(1) Derived from audited financial
statements.
SEMPRA ENERGY
Table C
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31,
----------------------------
(Dollars in millions) 2018 2017(1)
-------------------- ---- ------
(unaudited)
Cash Flows from Operating
Activities
Net income $358 $452
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 386 360
Deferred income taxes and
investment tax credits 229 268
Equity losses 20 5
Fixed-price contracts and other
derivatives (35) (106)
Other 46 (22)
Net change in other working capital
components 84 84
Insurance receivable for Aliso
Canyon costs (29) (15)
Changes in other assets (107) (41)
Changes in other liabilities 14 19
Net cash provided by operating
activities 966 1,004
--- -----
Cash Flows from Investing
Activities
Expenditures for property, plant
and equipment (1,035) (992)
Expenditures for investments and
acquisitions, (9,617) (59)
net of cash and cash equivalents
acquired
Distributions from investments 8 17
Purchases of nuclear
decommissioning trust assets (210) (350)
Proceeds from sales by nuclear
decommissioning trusts 210 357
Advances to unconsolidated
affiliates (83) (5)
Repayments of advances to
unconsolidated affiliates 69 2
Other 26 4
--- ---
Net cash used in investing
activities (10,632) (1,026)
------- ------
Cash Flows from Financing
Activities
Common dividends paid (194) (176)
Issuances of mandatory convertible
preferred stock, net of $32 in
offering costs 1,693 -
Issuances of common stock, net of
$24 in offering costs 1,278 17
Repurchases of common stock (19) (14)
Issuances of debt (maturities
greater than 90 days) 5,988 542
Payments on debt (maturities
greater than 90 days) (193) (313)
Increase (decrease) in short-term
debt, net 1,140 (97)
Settlement of cross-currency swaps (33) -
Other (52) (5)
--- ---
Net cash provided by (used in)
financing activities 9,608 (46)
----- ---
Effect of exchange rate changes on
cash, cash equivalents and
restricted cash 1 10
--- ---
Decrease in cash, cash equivalents
and restricted cash (57) (58)
Cash, cash equivalents and
restricted cash, January 1 364 425
--- ---
Cash, cash equivalents and
restricted cash, March 31 $307 $367
==== ====
(1) As adjusted
for the
retrospective
adoption of
ASU 2016-18.
SEMPRA ENERGY
Table D
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS
Three months ended
March 31,
---------
(Dollars in millions) 2018 2017
-------------------- ---- ----
(unaudited)
Earnings (Losses)
Sempra Utilities:
San Diego Gas & Electric $170 $155
Southern California Gas 225 203
Sempra Texas Utility 15 -
Sempra South American Utilities 46 47
Sempra Infrastructure:
Sempra Mexico 20 48
Sempra Renewables 21 11
Sempra LNG & Midstream (16) 1
Parent and other (134) (24)
---- ---
Total $347 $441
==== ====
Three months ended
March 31,
---------
(Dollars in millions) 2018 2017
-------------------- ---- ----
(unaudited)
Capital Expenditures, Investments and Acquisitions
Sempra Utilities:
San Diego Gas & Electric $475 $418
Southern California Gas 403 357
Sempra South American Utilities 56 43
Sempra Infrastructure:
Sempra Mexico 87 140
Sempra Renewables 31 69
Sempra LNG & Midstream 46 15
Parent and other 9,554 9
----- ---
Total $10,652 $1,051
======= ======
SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS (Unaudited)
Three months ended
March 31,
---------
UTILITIES 2018 2017
--------- ---- ----
SDG&E and SoCalGas
Gas sales (Bcf)(1) 113 126
Transportation (Bcf)(1) 147 156
---
Total deliveries (Bcf)(1) 260 282
---
Total gas customer meters (thousands) 6,854 6,816
SDG&E
Electric sales (millions of kWhs)(1) 3,603 3,764
Direct access (millions of kWhs) 745 787
---
Total deliveries (millions of kWhs)(1) 4,348 4,551
-----
Total electric customer meters
(thousands) 1,449 1,436
Oncor(2)
Total deliveries (millions of kWhs) 6,655 -
Total electric customer meters
(thousands) 3,572 -
Ecogas
Natural gas sales (Bcf) 6 8
Natural gas customer meters (thousands) 121 119
Chilquinta Energía
Electric sales (millions of kWhs) 798 811
Tolling (millions of kWhs) 62 20
Total deliveries (millions of kWhs) 860 831
---
Electric customer meters (thousands) 709 689
Luz Del Sur
Electric sales (millions of kWhs) 1,742 1,894
Tolling (millions of kWhs) 558 445
Total deliveries (millions of kWhs) 2,300 2,339
-----
Electric customer meters (thousands) 1,109 1,080
ENERGY-RELATED BUSINESSES
-------------------------
Power generated and sold (millions of kWhs)
Sempra Mexico(3) 1,221 1,055
Sempra Renewables(4) 1,192 1,014
(1) Includes intercompany sales.
(2) Includes 100 percent of the electric deliveries and customer meters
of Oncor Electric Delivery Company LLC (Oncor), in which we hold
an 80.25-percent interest through our March 2018 acquisition of
our equity method investment in Oncor Electric Delivery Holdings
Company LLC (Oncor Holdings).
(3) Includes power generated and sold at the Termoeléctrica de Mexicali
natural gas-fired power plant, which is currently held for sale,
and the Ventika wind power generation facilities. Also includes 50
percent of total power generated and sold at the Energía Sierra
Juárez wind power generation facility, in which Sempra Energy has a
50-percent ownership interest. Energía Sierra Juárez is not
consolidated within Sempra Energy, and the related investment is
accounted for under the equity method.
(4) Includes 50 percent of total power generated and sold related to
solar and wind projects in which Sempra Energy has a 50-percent
ownership. These subsidiaries are not consolidated within Sempra
Energy, and the related investments are accounted for under the
equity method.
SEMPRA ENERGY
Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
Three months ended March 31, 2018
(Dollars in
millions) SDG&E SoCalGas Sempra Sempra Sempra Sempra Sempra Consolidating Total
Texas South Mexico Renewables LNG & Adjustments,
Utility American Midstream Parent &
Utilities Other
--- ---
Revenues $1,055 $1,126 $ - $426 $308 $25 $104 $(82) $2,962
Cost of sales and
other expenses (641) (713) - (337) (129) (21) (102) 64 (1,879)
Depreciation and
amortization (166) (135) - (14) (43) (13) (11) (4) (386)
Other income
(expense), net 28 33 - 1 93 - - (2) 153
--- --- --- --- --- --- --- ---
Income (loss)
before interest
and tax (1) 276 311 - 76 229 (9) (9) (24) 850
Net interest
(expense) income
(2) (51) (27) - (4) (15) (3) 5 (116) (211)
Income tax
(expense) benefit (56) (59) - (20) (155) 7 (12) 6 (289)
Equity earnings
(losses), net - - 15 1 (41) 5 - - (20)
Losses (earnings)
attributable to
noncontrolling
interests 1 - - (7) 2 21 - - 17
Earnings (losses) $170 $225 $15 $46 $20 $21 $(16) $(134) $347
==== ==== === === === === ==== ===== ====
Three months ended March 31, 2017
(Dollars in
millions) SDG&E SoCalGas Sempra Sempra Sempra Sempra Sempra Consolidating Total
Texas South Mexico Renewables LNG & Adjustments,
Utility American Midstream Parent &
Utilities Other
--- ---
Revenues $1,057 $1,241 $ - $412 $264 $22 $132 $(97) $3,031
Cost of sales and
other expenses(3) (620) (803) - (326) (121) (15) (128) 83 (1,930)
Depreciation and
amortization (163) (126) - (13) (36) (9) (10) (3) (360)
Other income,
net(3) 22 14 - 3 127 - 1 7 174
--- --- --- --- --- --- --- ---
Income (loss)
before interest
and tax (1) 296 326 - 76 234 (2) (5) (10) 915
Net interest
(expense) income
(2) (49) (25) - (4) (30) (3) 6 (58) (163)
Income tax
(expense) benefit (90) (98) - (19) (142) 11 (1) 44 (295)
Equity earnings
(losses), net - - - 1 (9) 2 1 - (5)
(Earnings) losses
attributable to
noncontrolling
interests (2) - - (7) (5) 3 - - (11)
Earnings (losses) $155 $203 $ - $47 $48 $11 $1 $(24) $441
==== ==== === === === === === === ==== ====
(1) Management believes Income (Loss)
Before Interest and Tax is a useful
measurement of our segments'
performance because it can be used
to evaluate the effectiveness of
our operations exclusive of
interest and income tax, neither of
which is directly relevant to the
efficiency of those operations.
(2) Includes interest income, interest
expense and preferred dividends.
(3) As adjusted for the retrospective
adoption of ASU 2017-07.
[SRE-F]
CONTACT: Media Contact: Doug Kline, Sempra Energy, (877) 340-8875, or Financial Contact: Patrick Billings, Sempra Energy, (877) 736-7727, investor@sempra.com
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