Sempra Energy Reports Second-Quarter 2018 Results
SAN DIEGO, Aug. 6, 2018 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported second-quarter 2018 losses of $561 million, or $2.11 per diluted share, compared with earnings of $259 million, or $1.03 per diluted share, in the second quarter 2017. Sempra Energy's second-quarter 2018 results included a $755 million impairment (after tax and noncontrolling interests) related to the planned sale of certain U.S. midstream assets and a $145 million after-tax impairment related to the planned sale of U.S. wind investments. On an adjusted basis, excluding the aforementioned impairment charges, Sempra Energy's second-quarter 2018 earnings were $361 million, or $1.35 per diluted share, up from $276 million, or $1.10 per diluted share, in last year's second quarter.
"In the second quarter, we achieved solid operating results and, with our recent successful equity offerings, we have strengthened our balance sheet," said Jeffrey W. Martin, CEO of Sempra Energy. "We also have taken significant steps to begin optimizing our portfolio of assets and expand our liquefied natural gas (LNG) business. These initiatives are integral to our long-term strategic plan, which should deliver shareholder value through superior earnings and dividend growth."
Sempra Energy's losses for the first six months of 2018 were $214 million, or $0.82 per diluted share, compared with earnings of $700 million, or $2.77 per diluted share, in the first six months of 2017. Adjusted earnings for the first six months of 2018 were $733 million, or $2.78 per diluted share, compared with $714 million, or $2.83 per diluted share, in the first six months of 2017.
On June 28, following the company's annual strategic review, Sempra Energy announced a portfolio optimization initiative designed to create incremental shareholder value. The company intends to sell several energy infrastructure assets, including its entire portfolio of U.S. wind and U.S. solar assets and investments, as well as certain U.S. midstream storage assets. Proceeds from the sales will be used to support growth opportunities in the company's other businesses and further strengthen Sempra Energy's balance sheet.
On July 13, Sempra Energy successfully completed equity offerings that are expected to raise $1.82 billion, assuming settlement of all forward sale agreements by issuance of common stock. The funds will be used to complete the financing for the acquisition earlier this year of an 80.25-percent stake in Oncor Electric Delivery Co. with approximately 65 percent in equity.
OPERATING HIGHLIGHTS
In the second quarter, Sempra LNG & Midstream advanced development of its Port Arthur LNG and Energía Costa Azul natural gas liquefaction-export projects. On June 26, Port Arthur LNG entered into a preliminary 20-year agreement for the sale of 2 million tonnes per annum (Mtpa) of natural gas to the Polish national oil company, beginning in 2023, subject to reaching a definitive agreement. On June 22 and June 25, respectively, Sempra LNG & Midstream announced the selection of Bechtel as the engineering, procurement, construction and commissioning (EPC) contractor for the Port Arthur liquefaction project under development in Texas and a partnership of TechnipFMC and Kiewit as the EPC contractor for the Energía Costa Azul liquefaction project under development in Mexico.
Last month, Sempra Energy's Mexican operating unit, IEnova, announced it had been awarded a 20-year contract by the Topolobampo Port Administration in Mexico to build and operate an estimated $150 million receipt, storage and send-out liquid fuels marine terminal in the state of Sinaloa. Operations are expected to commence in the fourth quarter 2020. To support the project, IEnova has entered into 10- and 15-year U.S. dollar-denominated contracts for 100 percent of the terminal's capacity. The two contracts are with refining and fuel marketing companies. Both contracts have the potential to be extended to 20 years.
NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures include Sempra Energy's 2018 adjusted earnings and adjusted earnings per share for both the second quarter and first six months of 2018 and 2017. Information regarding these non-GAAP financial measures is in the appendix on Table A of the second-quarter financial tables.
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 7703894.
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, U.S. Department of Energy, California Department of Conservation's 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 U.S. and other countries in which we operate; the timing and success of business development efforts and construction projects, including risks in timely obtaining or maintaining permits and other authorizations, 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 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 the inverse condemnation doctrine 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 and moves to reduce or eliminate reliance on natural gas; 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; our ability to successfully execute our plan to divest certain non-utility assets within the anticipated timeframe, if at all, or that such plan may not yield the anticipated benefits; actions of activist shareholders, which could impact the market price of our common stock, preferred stock and other securities and disrupt our operations as a result of, among other things, requiring significant time and attention by management and our board of directors; capital markets and economic conditions, including the availability of credit and the liquidity of our investments; 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 and our ability to borrow at favorable interest rates; 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); Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory capital requirements, certain reductions in its senior secured credit rating, or the determination by Oncor's independent directors or a minority member director to retain such amounts to meet future requirements; 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 Six months ended
June 30, June 30,
-------- --------
(Dollars in millions,
except per share
amounts) 2018 2017(1) 2018 2017(1)
--------------------- ---- ------ ---- ------
(unaudited)
REVENUES
Utilities $2,190 $2,197 $4,788 $4,895
Energy-related
businesses 374 336 738 669
Total revenues 2,564 2,533 5,526 5,564
EXPENSES AND OTHER INCOME
Utilities:
Cost of electric fuel
and purchased power (557) (553) (1,103) (1,080)
Cost of natural gas (179) (228) (527) (713)
Energy-related businesses:
Cost of natural gas,
electric fuel and
purchased power (69) (62) (138) (129)
Other cost of sales (19) 38 (37) 16
Operation and
maintenance (783) (748) (1,564) (1,467)
Depreciation and
amortization (392) (368) (778) (728)
Franchise fees and
other taxes (104) (101) (221) (211)
Impairment losses (1,300) (71) (1,300) (71)
Other (expense)
income, net (54) 108 99 282
Interest income 21 8 54 14
Interest expense (237) (159) (453) (328)
(Loss) income before
income taxes and
equity (losses)
earnings of
unconsolidated
subsidiaries (1,109) 397 (442) 1,149
Income tax benefit
(expense) 583 (167) 294 (462)
Equity (losses)
earnings (4) 18 (24) 13
Net (loss) income (530) 248 (172) 700
(Earnings) losses
attributable to
noncontrolling
interests (5) 12 12 1
Mandatory convertible
preferred stock
dividends (25) - (53) -
Preferred dividends of
subsidiary (1) (1) (1) (1)
--- --- --- ---
(Losses) earnings
attributable to
common shares $(561) $259 $(214) $700
===== ==== ===== ====
Basic (losses)
earnings per common
share $(2.11) $1.03 $(0.82) $2.79
====== ===== ====== =====
Weighted-average
number of shares
outstanding, basic
(thousands) 265,837 251,447 261,906 251,290
======= ======= ======= =======
Diluted (losses)
earnings per common
share $(2.11) $1.03 $(0.82) $2.77
====== ===== ====== =====
Weighted-average
number of shares
outstanding, diluted
(thousands) 265,837 252,822 261,906 252,609
======= ======= ======= =======
Dividends declared per
share of common stock $0.89 $0.83 $1.79 $1.65
===== ===== ===== =====
(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 (LOSSES) EARNINGS (Unaudited)
Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2018 and 2017 as follows:
Three months ended June 30, 2018:
-- $(755) million impairment of certain non-utility natural gas storage
assets in the southeast U.S. at Sempra LNG & Midstream
-- $(145) million other-than-temporary impairment of certain U.S. wind
equity method investments at Sempra Renewables
-- $(22) million impacts associated with Aliso Canyon litigation at
SoCalGas
Three months ended June 30, 2017:
-- $(47) million impairment of Sempra Mexico's Termoeléctrica de Mexicali
(TdM) assets that were held for sale until June 2018
-- $2 million deferred income tax benefit on the TdM assets that were held
for sale
-- $28 million of recoveries related to 2016 permanent release of pipeline
capacity at Sempra LNG & Midstream
Six months ended June 30, 2018:
-- $(755) million impairment of certain non-utility natural gas storage
assets
-- $(145) million other-than-temporary impairment of certain U.S. wind
equity method investments
-- $(22) million impacts associated with Aliso Canyon litigation
-- $(25) million income tax expense to adjust Tax Cuts and Jobs Act of 2017
(TCJA) provisional amounts
Six months ended June 30, 2017:
-- $(47) million impairment of TdM assets that were held for sale
-- $5 million deferred income tax benefit on the TdM assets that were held
for sale
-- $28 million of recoveries related to 2016 permanent release of pipeline
capacity
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 (Losses) Earnings and GAAP Diluted (Losses) Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.
Pretax Income tax Non- (Losses) Pretax Income tax Non- Earnings
amount (benefit) controlling earnings amount (benefit) controlling
expense(1) interests expense(1)
interests
---------
(Dollars in millions,
except per share
amounts) Three months ended June 30, 2018 Three months ended June 30, 2017
--------------------- -------------------------------- --------------------------------
Sempra Energy GAAP
(Losses) Earnings $(561) $259
Excluded items:
Impairment of non-
utility natural gas
storage assets $1,300 $(499) $(46) 755 $ - $ - $ - -
Impairment of U.S.
wind equity method
investments 200 (55) - 145 - - - -
Impacts associated
with Aliso Canyon
litigation 1 21 - 22 - - - -
Impairment of TdM
assets held for sale - - - - 71 - (24) 47
Deferred income tax
benefit associated
with TdM - - - - - (3) 1 (2)
Recoveries related to
2016 permanent
release of pipeline
capacity - - - - (47) 19 - (28)
---
Sempra Energy
Adjusted Earnings $361 $276
==== ====
Diluted (losses)
earnings per common
share:
Sempra Energy GAAP
(Losses) Earnings $(2.11) (2) $1.03
====== =====
Sempra Energy
Adjusted Earnings $1.35 $1.10
===== =====
Weighted-average
number of shares
outstanding, diluted
(thousands) 267,536 (2) 252,822
--------------------- ------- --- -------
Six months ended June 30, 2018 Six months ended June 30, 2017
------------------------------ ------------------------------
Sempra Energy GAAP
(Losses) Earnings $(214) $700
Excluded items:
Impairment of non-
utility natural gas
storage assets $1,300 $(499) $(46) 755 $ - $ - $ - -
Impairment of U.S.
wind equity method
investments 200 (55) - 145 - - - -
Impacts associated
with Aliso Canyon
litigation 1 21 - 22 - - - -
Impact from the TCJA - 25 - 25 - - - -
Impairment of TdM
assets held for sale - - - - 71 - (24) 47
Deferred income tax
benefit associated
with TdM - - - - - (8) 3 (5)
Recoveries related to
2016 permanent
release of pipeline
capacity - - - - (47) 19 - (28)
Sempra Energy
Adjusted Earnings $733 $714
==== ====
Diluted (losses)
earnings per common
share:
Sempra Energy GAAP
(Losses) Earnings $(0.82) (2) $2.77
====== =====
Sempra Energy
Adjusted Earnings $2.78 $2.83
===== =====
Weighted-average
number of shares
outstanding, diluted
(thousands) 263,584 (2) 252,609
--------------------- ------- --- -------
(1) Except for
adjustments
that are
solely
income tax
and tax
related to
outside
basis
differences,
income taxes
were
primarily
calculated
based on
applicable
statutory
tax rates.
Income taxes
associated
with TdM
were
calculated
based on the
applicable
statutory
tax rate,
including
translation
from
historic to
current
exchange
rates. An
income tax
benefit of
$12 million
associated
with the
2017 TdM
impairment
has been
fully
reserved.
(2) In both the
three months
and six
months ended
June 30,
2018, total
weighted-
average
number of
potentially
dilutive
securities
of 1.7
million were
not included
in the
computation
of GAAP
losses per
common share
since to do
so would
have
decreased
the loss per
share.
SEMPRA ENERGY
Table B
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in
millions) June 30, 2018 December 31, 2017(1)
----------- ------------- --------------------
(unaudited)
Assets
Current assets:
Cash and cash
equivalents $252 $288
Restricted cash 60 62
Accounts
receivable, net 1,441 1,584
Due from
unconsolidated
affiliates 40 37
Income taxes
receivable 96 110
Inventories 288 307
Regulatory assets 337 325
Fixed-price
contracts and
other derivatives 69 66
Greenhouse gas
allowances 339 299
Assets held for
sale 1,877 127
Other 148 136
Total current
assets 4,947 3,341
----- -----
Other assets:
Restricted cash 15 14
Due from
unconsolidated
affiliates 634 598
Regulatory assets 1,644 1,517
Nuclear
decommissioning
trusts 1,022 1,033
Investment in
Oncor Holdings 9,407 -
Other investments 2,576 2,527
Goodwill 2,371 2,397
Other intangible
assets 221 596
Dedicated assets
in support of
certain benefit
plans 443 455
Insurance
receivable for
Aliso Canyon
costs 502 418
Deferred income
taxes 139 170
Greenhouse gas
allowances 228 93
Sundry 842 792
Total other assets 20,044 10,610
Property, plant
and equipment,
net 34,916 36,503
------ ------
Total assets $59,907 $50,454
======= =======
Liabilities and Equity
Current liabilities:
Short-term debt $3,708 $1,540
Accounts payable 1,215 1,523
Due to
unconsolidated
affiliates 10 7
Dividends and
interest payable 491 342
Accrued
compensation and
benefits 317 439
Regulatory
liabilities 282 109
Current portion of
long-term debt 1,108 1,427
Fixed-price
contracts and
other derivatives 73 109
Customer deposits 175 162
Reserve for Aliso
Canyon costs 160 84
Greenhouse gas
obligations 339 299
Liabilities held
for sale 158 49
Other 566 545
--- ---
Total current
liabilities 8,602 6,635
----- -----
Long-term debt 21,278 16,445
------ ------
Deferred credits and other
liabilities:
Customer advances
for construction 148 150
Due to
unconsolidated
affiliates 36 35
Pension and other
postretirement
benefit plan
obligations, net
of plan assets 1,241 1,148
Deferred income
taxes 2,078 2,767
Deferred
investment tax
credits 26 28
Regulatory
liabilities 3,945 3,922
Asset retirement
obligations 2,732 2,732
Fixed-price
contracts and
other derivatives 275 316
Greenhouse gas
obligations 57 -
Deferred credits
and other 1,125 1,136
----- -----
Total deferred
credits and other
liabilities 11,663 12,234
------ ------
Equity:
Sempra Energy
shareholders'
equity 15,826 12,670
Preferred stock of
subsidiary 20 20
Other
noncontrolling
interests 2,518 2,450
----- -----
Total equity 18,364 15,140
------ ------
Total liabilities
and equity $59,907 $50,454
======= =======
(1) Derived from audited
financial statements.
SEMPRA ENERGY
Table C
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended June 30,
-------------------------
(Dollars in millions) 2018 2017(1)
-------------------- ---- ------
(unaudited)
Cash Flows from Operating Activities
Net (loss) income $(172) $700
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization 778 728
Deferred income taxes and investment tax credits (401) 411
Impairment losses 1,300 71
Equity losses (earnings) 24 (13)
Fixed-price contracts and other derivatives (9) (142)
Other 143 (19)
Net change in other working capital components 208 138
Insurance receivable for Aliso Canyon costs (84) 52
Changes in other noncurrent assets and liabilities, net (158) (37)
Net cash provided by operating activities 1,629 1,889
----- -----
Cash Flows from Investing Activities
Expenditures for property, plant and equipment (1,941) (1,802)
Expenditures for investments and acquisitions (9,823) (97)
Distributions from investments 9 18
Purchases of nuclear decommissioning trust assets (487) (823)
Proceeds from sales of nuclear decommissioning trust
assets 487 823
Advances to unconsolidated affiliates (84) (183)
Repayments of advances to unconsolidated affiliates 69 2
Other 30 4
--- ---
Net cash used in investing activities (11,740) (2,058)
------- ------
Cash Flows from Financing Activities
Common dividends paid (416) (368)
Preferred dividends paid (28) -
Preferred dividends paid by subsidiary (1) (1)
Issuances of mandatory convertible preferred stock, net
of $32 in offering costs 1,693 -
Issuances of common stock, net of $38 in offering costs
in 2018 2,090 28
Repurchases of common stock (20) (14)
Issuances of debt (maturities greater than 90 days) 7,407 1,932
Payments on debt (maturities greater than 90 days) (1,878) (1,006)
Increase (decrease) in short-term debt, net 1,266 (493)
Proceeds from sale of noncontrolling interest, net of
$1 in offering costs 85 -
Net distributions to noncontrolling interests (17) (25)
Settlement of cross-currency swaps (33) -
Other (71) (9)
--- ---
Net cash provided by financing activities 10,077 44
------ ---
Effect of exchange rate changes on cash, cash
equivalents and restricted cash (3) 10
--- ---
Decrease in cash, cash equivalents and restricted cash (37) (115)
Cash, cash equivalents and restricted cash, January 1 364 425
--- ---
Cash, cash equivalents and restricted cash, June 30 $327 $310
==== ====
(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 Six months ended
June 30, June 30,
-------- --------
(Dollars in millions) 2018 2017 2018 2017
-------------------- ---- ---- ---- ----
(unaudited)
Earnings (Losses)
Sempra Utilities:
San Diego Gas &
Electric $146 $149 $316 $304
Southern California
Gas 33 58 258 261
Sempra Texas Utility 114 - 129 -
Sempra South American
Utilities 44 45 90 92
Sempra Infrastructure:
Sempra Mexico 97 (9) 117 39
Sempra Renewables (109) 23 (88) 34
Sempra LNG & Midstream (764) 27 (780) 28
Parent and other (122) (34) (256) (58)
---- --- ---- ---
Total $(561) $259 $(214) $700
===== ==== ===== ====
Three months ended Six months ended
June 30, June 30,
-------- --------
(Dollars in millions) 2018 2017 2018 2017
-------------------- ---- ---- ---- ----
(unaudited)
Capital Expenditures, Investments and
Acquisitions
Sempra Utilities:
San Diego Gas &
Electric $376 $345 $851 $763
Southern California
Gas 380 325 783 682
Sempra Texas Utility 117 - 9,278 -
Sempra South American
Utilities 51 34 107 77
Sempra Infrastructure:
Sempra Mexico 81 87 168 227
Sempra Renewables 6 31 37 100
Sempra LNG & Midstream 91 22 137 37
Parent and other 10 4 403 13
--- --- --- ---
Total $1,112 $848 $11,764 $1,899
====== ==== ======= ======
SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS (Unaudited)
Three months ended Six months ended
June 30, June 30,
-------- --------
UTILITIES 2018 2017 2018 2017
--------- ---- ---- ---- ----
SDG&E and SoCalGas
Gas sales (Bcf)(1) 76 71 189 197
Transportation (Bcf)(1) 137 148 284 304
---
Total deliveries (Bcf)(1) 213 219 473 501
---
Total gas customer meters
(thousands) 6,865 6,825
SDG&E
Electric sales (millions of kWhs)(1) 3,394 3,565 7,000 7,329
Direct access (millions of kWhs) 926 786 1,671 1,573
---
Total deliveries (millions of
kWhs)(1) 4,320 4,351 8,671 8,902
-----
Total electric customer meters
(thousands) 1,453 1,438
Oncor(2)
Total deliveries (millions of kWhs) 32,658 - 39,313 -
Total electric customer meters
(thousands) 3,590 -
Ecogas
Natural gas sales (Bcf) - 7 6 15
Natural gas customer meters
(thousands) 121 120
Chilquinta Energía
Electric sales (millions of kWhs) 710 691 1,508 1,502
Tolling (millions of kWhs) 81 24 143 44
---
Total deliveries (millions of kWhs) 791 715 1,651 1,546
---
Electric customer meters (thousands) 714 696
Luz Del Sur
Electric sales (millions of kWhs) 1,716 1,780 3,458 3,674
Tolling (millions of kWhs) 583 461 1,141 906
---
Total deliveries (millions of kWhs) 2,299 2,241 4,599 4,580
-----
Electric customer meters (thousands) 1,116 1,086
ENERGY-RELATED BUSINESSES
-------------------------
Power generated and sold (millions of
kWhs)
Sempra Mexico(3) 1,175 650 2,396 1,705
Sempra Renewables(4) 1,382 1,192 2,574 2,206
(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). Total deliveries for the
six months ended June 30, 2018 only
include volumes from the March 9,
2018 acquisition date.
(3) Includes power generated and sold at
the Termoeléctrica de Mexicali
natural gas-fired power plant 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. On June 25, 2018, our board
of directors approved a plan to sell
all U.S. wind and solar assets and
investments.
SEMPRA ENERGY
Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
Three months ended June 30, 2018
(Dollars in
millions) SDG&E SoCalGas Sempra Sempra Sempra Sempra Sempra Consolidating Total
Texas Utility South American Mexico Renewables LNG & Adjustments, Parent
Utilities Midstream & Other
--- ---
Revenues $1,051 $772 $ - $389 $310 $40 $79 $(77) $2,564
Cost of sales and
other expenses (667) (565) - (301) (123) (23) (91) 59 (1,711)
Depreciation and
amortization (169) (138) - (15) (43) (14) (11) (2) (392)
Impairment losses - - - - - - (1,300) - (1,300)
Other income
(expense), net 25 13 - 2 (95) - - 1 (54)
--- --- --- --- --- --- --- ---
Income (loss) before
interest and tax(1) 240 82 - 75 49 3 (1,323) (19) (893)
Net interest
(expense) income(2) (52) (26) - (3) (14) (3) 6 (150) (242)
Income tax (expense)
benefit (42) (23) - (21) 55 58 506 50 583
Equity earnings
(losses), net - - 114 - 71 (187) 1 (3) (4)
(Earnings) losses
attributable to
noncontrolling
interests - - - (7) (64) 20 46 - (5)
Earnings (losses) $146 $33 $114 $44 $97 $(109) $(764) $(122) $(561)
==== === ==== === === ===== ===== ===== =====
Three months ended June 30, 2017
(Dollars in
millions) SDG&E SoCalGas Sempra Sempra Sempra Sempra Sempra Consolidating Total
Texas Utility South American Mexico Renewables LNG & Adjustments, Parent
Utilities Midstream & Other
--- ---
Revenues $1,058 $770 $ - $381 $273 $26 $122 $(97) $2,533
Cost of sales and
other expenses(3) (655) (564) - (294) (130) (20) (71) 80 (1,654)
Depreciation and
amortization (166) (126) - (13) (37) (10) (11) (5) (368)
Impairment losses - - - - (71) - - - (71)
Other income, net(3) 19 24 - 2 60 1 - 2 108
--- --- --- --- --- --- --- ---
Income (loss) before
interest and
tax(1)(4) 256 104 - 76 95 (3) 40 (20) 548
Net interest
(expense) income(2) (49) (27) - (5) (17) (2) 3 (55) (152)
Income tax (expense)
benefit (54) (19) - (20) (102) 5 (18) 41 (167)
Equity earnings,
net(4) - - - - - 16 2 - 18
(Earnings) losses
attributable to
noncontrolling
interests (4) - - (6) 15 7 - - 12
Earnings (losses) $149 $58 $ - $45 $(9) $23 $27 $(34) $259
==== === === === === === === === ==== ====
(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.
(4) As adjusted for a reclassification to
conform to current year presentation.
SEMPRA ENERGY
Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
Six months ended June 30, 2018
(Dollars in
millions) SDG&E SoCalGas Sempra Sempra Sempra Sempra Sempra Consolidating Total
Texas Utility South American Mexico Renewables LNG & Adjustments, Parent
Utilities Midstream & Other
--- ---
Revenues $2,106 $1,898 $ - $815 $618 $65 $183 $(159) $5,526
Cost of sales and
other expenses (1,308) (1,278) - (638) (252) (44) (193) 123 (3,590)
Depreciation and
amortization (335) (273) - (29) (86) (27) (22) (6) (778)
Impairment losses - - - - - - (1,300) - (1,300)
Other income
(expense), net 53 46 - 3 (2) - - (1) 99
--- --- --- --- --- --- --- ---
Income (loss) before
interest and tax(1) 516 393 - 151 278 (6) (1,332) (43) (43)
Net interest
(expense) income(2) (103) (53) - (7) (29) (6) 11 (266) (453)
Income tax (expense)
benefit (98) (82) - (41) (100) 65 494 56 294
Equity earnings
(losses), net - - 129 1 30 (182) 1 (3) (24)
Losses (earnings)
attributable to
noncontrolling
interests 1 - - (14) (62) 41 46 - 12
Earnings (losses) $316 $258 $129 $90 $117 $(88) $(780) $(256) $(214)
==== ==== ==== === ==== ==== ===== ===== =====
Six months ended June 30, 2017
(Dollars in
millions) SDG&E SoCalGas Sempra Sempra Sempra Sempra Sempra Consolidating Total
Texas Utility South American Mexico Renewables LNG & Adjustments, Parent
Utilities Midstream & Other
--- ---
Revenues $2,115 $2,011 $ - $793 $537 $48 $254 $(194) $5,564
Cost of sales and
other expenses(3) (1,275) (1,367) - (620) (251) (35) (199) 163 (3,584)
Depreciation and
amortization (329) (252) - (26) (73) (19) (21) (8) (728)
Impairment losses - - - - (71) - - - (71)
Other income
(expense), net(3) 41 38 - 5 187 1 1 9 282
--- --- --- --- --- --- --- ---
Income (loss) before
interest and
tax(1)(4) 552 430 - 152 329 (5) 35 (30) 1,463
Net interest
(expense) income(2) (98) (52) - (9) (47) (5) 9 (113) (315)
Income tax (expense)
benefit (144) (117) - (39) (244) 16 (19) 85 (462)
Equity earnings
(losses), net(4) - - - 1 (9) 18 3 - 13
(Earnings) losses
attributable to
noncontrolling
interests (6) - - (13) 10 10 - - 1
Earnings (losses) $304 $261 $ - $92 $39 $34 $28 $(58) $700
==== ==== === === === === === === ==== ====
(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.
(4) As adjusted for a reclassification to
conform to current year presentation.
[SRE-F]
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SOURCE Sempra Energy
