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press release

Aug. 5, 2020, 6:55 a.m. EDT

Sempra Energy Reports Second-Quarter 2020 Earnings Results

- Delivering Strong Financial Results with Increased Second-Quarter GAAP and Adjusted Earnings- Executing on Record Capital Plans at U.S. Utility Businesses- Moving to Full Run-Rate Earnings and Cash Flows in the Coming Days at Cameron LNG with Phase 1 Construction Now Complete

SAN DIEGO, Aug. 5, 2020 /PRNewswire/ --  Sempra Energy   /zigman2/quotes/206074517/composite SRE -1.43% today reported second-quarter 2020 earnings of $2.239 billion, or $7.61 per diluted share, compared to second-quarter 2019 earnings of $354 million, or $1.26 per diluted share. On an adjusted basis, the company's second-quarter 2020 earnings were $485 million, or $1.65 per diluted share, compared to $309 million, or $1.10 per diluted share, in the second quarter of 2019.

"Our year-to-date financial results set us up well to post strong results for the full year in 2020 and are a credit to the dedication and teamwork of our employees who have continued to deliver for our stakeholders amid the pandemic and a challenging economic backdrop," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "Over the last several years, the disciplined execution of our North American strategy has made our company stronger. This can be seen in the quality and strength of our earnings, as well as the visibility we now have to our future growth."

Sempra Energy's earnings for the first six months of 2020 were $2.999 billion, or $9.91 per diluted share, compared with earnings of $795 million, or $2.85 per diluted share, in the first six months of 2019. Adjusted earnings for the first six months of 2020 were $1.417 billion, or $4.76 per diluted share, compared to $843 million, or $3.03 per diluted share, in the first six months of 2019.

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





























 Three months ended 
 Six months ended 




 June 30, 
 June 30, 


(Dollars, except EPS, and shares, in millions)
2020
2019
2020
2019




(Unaudited)


GAAP Earnings
$        2,239
$            354
$        2,999
$            795














Gain on Sale of South American Businesses
(1,754)
-
(1,754)
-














Losses from Investment in RBS Sempra Commodities LLP
-
-
100
-














Impacts Associated with Aliso Canyon Litigation
-
-
72
-














Tax Impacts from Expected Sale of South American Businesses
-
-
-
93














Gain on Sale of U.S. Wind Assets
-
(45)
-
(45)














Adjusted Earnings(1)
$            485
$            309
$        1,417
$            843


























GAAP Diluted Weighted-Average Common Shares Outstanding
294
280
308
278


GAAP Earnings Per Diluted Common Share(2)
$          7.61
$          1.26
$          9.91
$          2.85














Adjusted Diluted Weighted-Average Common Shares Outstanding(1)
294
280
313
278


Adjusted Earnings Per Diluted Common Share(1),(3)
$          1.65
$          1.10
$          4.76
$          3.03












1) Represents a non-GAAP financial measure. See Table A for information regarding non-GAAP financial measures.
2) To calculate YTD-2020 GAAP EPS, preferred dividends of $52 million are added back to GAAP Earnings because of the dilutive effect of Series A mandatory convertible preferred stock.
3) To calculate YTD-2020 Adjusted EPS, preferred dividends of $71 million are added back to Adjusted Earnings because of the dilutive effect of Series A and Series B mandatory convertible preferred stock.

Executing on a Disciplined Strategy Sempra Energy completed the sales of its South American businesses in June, marking the conclusion of its broad, two-year capital rotation plan. The company's investments are now focused on transmission and distribution energy infrastructure in the most attractive markets in North America, including California, Texas, Mexico and North America's liquefied natural gas (LNG) export market.

In total, including the sales of the company's South American businesses and its U.S. renewables businesses and non-utility natural gas storage assets, the company has generated approximately $8.3 billion in total gross proceeds from these divestitures. The recent sale of the company's Chilean businesses remains subject to post-closing adjustments. Proceeds from these transactions are being used to further bolster the company's strong liquidity position, strengthen the balance sheet, support the execution of its robust capital plan and return value to shareholders. 

As part of Sempra Energy's goal of returning additional value to shareholders, the company recently completed a $500 million share buyback program. It also received authorization from its Board of Directors to repurchase an additional $2 billion of shares at future dates. Sempra Energy's capital allocation strategy has enabled the company to return approximately $13 billion to common shareholders since 2000 through cash dividends and common share repurchases.

Advancing Record Capital Plans at U.S. Utilities Sempra Energy, including its ownership share in amounts funded by unconsolidated entities, is projected to invest a record $32 billion in capital over its 2020-2024, five-year plan with a focus on improving the safety and reliability of its transmission and distribution utility businesses in California and Texas.

Both San Diego Gas & Electric Co. (SDG&E) and Southern California Gas Co. (SoCalGas) continue to successfully execute on their infrastructure investments. More than 80% of their investments are allocated to enhance safety and reliability, including wildfire mitigation programs at SDG&E.

Since 2007, SDG&E has invested over $2 billion to help mitigate wildfire risk in and around its service territory. The utility continues to employ the latest technologies under its Fire Safe 3.0 program – such as artificial intelligence-based predictive models and high-speed weather data – to help advance the safety of its communities. SoCalGas is also investing in collaborative research and development related to hydrogen and power-to-gas technology. SoCalGas has already deployed a demonstration of power-to-gas technology at the National Renewable Energy Laboratory where green hydrogen produced from electrolysis powered by solar panels is converted to pipeline quality methane for storage and later use.

In Texas, Oncor Electric Delivery Company LLC (Oncor) is executing on its capital plan. Approximately 90% of the projects in Oncor's transmission budget through 2021 can commence construction without any further approvals. Oncor has connected approximately 20,000 new premises in the second quarter. Oncor is also on pace to surpass the number of new requests for transmission interconnections it received in 2019, which is predominantly driven by an increase in utility scale solar generation activity. Despite the impacts of COVID-19, Oncor believes it will continue to have a steady increase in interconnection requests for the remainder of 2020.

Continuing Progress on Energy Infrastructure Projects

Phase 1 of the Cameron LNG export facility is expected to reach full commercial operations in the coming days, marking the start of full run-rate earnings and cash flows. The facility is expected to generate nearly $12 billion of after-debt-service cash flow for Sempra Energy during the 20-year contract period. Train 3 at the Cameron LNG facility reached substantial completion on July 31.

Sempra Energy continues to work closely with the highest levels of the Mexican government on obtaining a 20-year export permit for Phase 1 of the proposed Energía Costa Azul (ECA) LNG liquefaction-export infrastructure project under development in Baja California, Mexico. Phase 1 of the proposed project, developed by Sempra LNG and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), is planned to be a single-train LNG export facility with an initial offtake capacity of approximately 2.5 million tonnes per annum. The project would enable the production of LNG in Baja California, with a view toward diversifying the region's energy supplies, lowering the price of energy and supporting strategic exports to growing Asian markets.

Driving Sustainable Value Sempra Energy is focused on creating sustainable value for shareholders, employees, customers and communities. In May, Sempra Energy published its 12th corporate sustainability report, highlighting the company's strategies to achieve resilient operations and continue a leadership position in sustainable business practices. The full report is available on the Sustainability page of the company's website.

Sempra Energy continues to prioritize the safety and well-being of its employees, customers, partners and communities through the COVID-19 pandemic. The company has been engaging with public health authorities to implement health and safety guidelines for the protection of its customers and employees who are providing essential energy services to hospitals, healthcare facilities, first responders and others on the frontline of the COVID-19 pandemic. Face coverings, physical distancing, increased sanitization, temperature checks and other measures have been implemented for employees who are currently reporting to their work locations, and those same safety protocols will be in place when other employees return to the office.

Earnings Guidance Sempra Energy is updating its full-year 2020 GAAP earnings-per-common-share (EPS) guidance range to $12.59 to $13.19 from $12.38 to $13.32, primarily reflecting completion of the sale of its South American businesses. The company is also reaffirming its full-year 2020 adjusted EPS guidance range that was increased to $7.20 to $7.80 on June 30, 2020.

Additionally, the company is reaffirming its full-year 2021 EPS guidance range of $7.50 to $8.10, driven primarily by strong execution at its U.S. utility businesses.

Non-GAAP Financial Measures Non-GAAP financial measures include Sempra Energy's adjusted earnings and adjusted EPS for the second quarters and first six months of 2020 and 2019, and full-year 2020 adjusted EPS guidance. See Table A for additional information regarding these non-GAAP financial measures.

Internet Broadcast Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET with senior management of the company. Access is available by logging onto the website at www.sempra.com . For those unable to log 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 3865285.

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

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees of performance. Future results may differ materially from those expressed in the forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.

In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "target," "pursue," "outlook," "maintain," or similar expressions, or when we discuss our guidance, strategy, goals, vision, mission, opportunities, projections or intentions.

Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires and the risk that we may be found liable for damages regardless of fault and the risk that we may not be able to recover any such costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances of permits and other authorizations, renewal of franchises, and other actions by (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, cities, counties and other jurisdictions in the U.S., Mexico and other countries in which we operate or 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 and completing construction projects on schedule and budget, (ii) obtaining the consent of partners, (iii) counterparties' financial or other ability to fulfill contractual commitments, (iv) the ability to complete contemplated acquisitions, and (v) the ability to realize anticipated benefits from any of these efforts once completed; the impact of the COVID-19 pandemic on our (i) ability to commence and complete capital and other projects and obtain regulatory approvals, (ii) supply chain and current and prospective counterparties, contractors, customers, employees and partners, (iii) liquidity, resulting from bill payment challenges experienced by our customers, including in connection with a CPUC-ordered suspension of service disconnections, decreased stability and accessibility of the capital markets and other factors, and (iv) ability to sustain operations and satisfy compliance requirements due to social distancing measures or if employee absenteeism were to increase significantly; the resolution of civil and criminal litigation, regulatory 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 at favorable interest rates; moves to reduce or eliminate reliance on natural gas and the impact of the extreme volatility and unprecedented decline of oil prices on our businesses and development projects; weather, natural disasters, accidents, equipment failures, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, the failure of foreign governments and state-owned entities to honor the terms of contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access, Community Choice Aggregation or other forms of distributed or local power generation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange, interest and inflation rates and commodity prices and our ability to effectively hedge the risk of such volatility; changes in trade policies, laws and regulations, including tariffs and revisions to or replacement of international trade agreements, such as the newly effective United States-Mexico-Canada Agreement, that may increase our costs or impair our ability to resolve trade disputes; the impact of changes to U.S. federal and state and foreign tax laws and our ability to mitigate adverse impacts; and other uncertainties, some of which may be difficult to predict and are beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

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

SEMPRA ENERGYTable A


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
























Three months endedJune 30,
Six months ended June 30
(Dollars in millions, except per share amounts; shares in thousands) 2020
2019
2020
2019

(unaudited)
REVENUES







Utilities $ 2,233

$ 1,895

$ 4,898

$ 4,410

Energy-related businesses 293

335

657

718

Total revenues 2,526

2,230

5,555

5,128










EXPENSES AND OTHER INCOME







Utilities:







Cost of natural gas (131)

(136)

(468)

(667)

Cost of electric fuel and purchased power (260)

(263)

(489)

(519)

Energy-related businesses cost of sales (51)

(63)

(110)

(171)

Operation and maintenance (898)

(838)

(1,849)

(1,670)

Depreciation and amortization (412)

(389)

(824)

(772)

Franchise fees and other taxes (121)

(112)

(258)

(242)

Gain on sale of assets

66



66

Other income (expense), net 62

28

(192)

110

Interest income 22

21

49

42

Interest expense (274)

(258)

(554)

(518)

Income from continuing operations before income taxes and equity earnings 463

286

860

787

Income tax (expense) benefit (168)

(47)

39

(89)

Equity earnings 233

118

496

219

Income from continuing operations, net of income tax 528

357

1,395

917

Income from discontinued operations, net of income tax 1,777

78

1,857

36

Net income 2,305

435

3,252

953

Earnings attributable to noncontrolling interests (28)

(45)

(179)

(86)

Preferred dividends (37)

(35)

(73)

(71)

Preferred dividends of subsidiary (1)

(1)

(1)

(1)

Earnings attributable to common shares $ 2,239

$ 354

$ 2,999

$ 795










Basic earnings per common share (EPS):







Earnings $ 7.64

$ 1.29

$ 10.24

$ 2.89

Weighted-average common shares outstanding 293,060

274,987

292,925

274,831










Diluted EPS:







Earnings $ 7.61

$ 1.26

$ 9.91

$ 2.85

Weighted-average common shares outstanding 294,155

279,619

307,962

278,424










SEMPRA ENERGY Table A (Continued)

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

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

Three months ended June 30, 2020:

  • $1,754 million gain on the sale of our South American businesses

Three months ended June 30, 2019:

  • $45 million gain on the sale of certain Sempra Renewables assets

Six months ended June 30, 2020:

  • (72) million from impacts associated with Aliso Canyon natural gas storage facility litigation at Southern California Gas Company (SoCalGas)

  • $(100) million equity losses at RBS Sempra Commodities LLP, which represent an estimate of our obligations to settle pending tax 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

Six months ended June 30, 2019:

  • $45 million gain on the sale of certain Sempra Renewables assets

Associated with holding the South American businesses for sale:

  • $(103) million income tax expense from outside basis differences in our South American businesses primarily related to the change in our indefinite reinvestment assertion from our decision in January 2019 to hold those businesses for sale

  • $10 million income tax benefit to reduce a valuation allowance against certain net operating loss (NOL) carryforwards as a result of our decision to sell our South American businesses

Sempra Energy Adjusted Earnings, Weighted-Average Common Shares Outstanding – Adjusted and Adjusted EPS are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and/or nature of the excluded items, management believes that these non-GAAP financial measures provide a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy GAAP Earnings, Weighted-Average Common Shares Outstanding – GAAP and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

SEMPRA ENERGY



Pretax amount Income tax expense(benefit)(1)
Earnings
Pretax amount Income tax expense(benefit)(1)


Earnings
(Dollars in millions, except per share amounts; shares in thousands)
Three months ended June 30, 2020

Three months ended June 30, 2019
Sempra Energy GAAP Earnings




$ 2,239




$ 354

Excluded items:






























 Gain on sale of South American businesses

$ (2,915)
$ 1,161

(1,754)

$
$



 Gain on sale of certain Sempra Renewables assets






(61)
16

(45)

Sempra Energy Adjusted Earnings




$ 485




$ 309

















Diluted EPS:






























 Weighted-average common shares outstanding, diluted




294,155




279,619

 Sempra Energy GAAP EPS




$ 7.61




$ 1.26


























































Sempra Energy Adjusted EPS




$ 1.65




$ 1.10























Six months ended June 30, 2020
Sempra Energy GAAP Earnings




$ 2,999




$ 795

Excluded items:











 Impacts associated with Aliso Canyon litigation

$ 100
$ (28)

72

$
$



 Losses from investment in RBS Sempra Commodities LLP

100


100






 Gain on sale of South American businesses

(2,915)
1,161

(1,754)






 Gain on sale of certain Sempra Renewables assets






(61)
16

(45)

 Associated with holding the South American businesses for sale:











Change in indefinite reinvestment assertion of basis differences in







103

103

Reduction in tax valuation allowance against certain NOL







(10)

(10)

Sempra Energy Adjusted Earnings




$ 1,417




$ 843

















Diluted EPS:











 Sempra Energy GAAP Earnings




$ 2,999




$ 795

 Add back dividends for dilutive series A preferred stock




52






 Sempra Energy GAAP Earnings for GAAP EPS




$ 3,051




$ 795

 Weighted-average common shares outstanding, diluted – GAAP




307,962




278,424

 Sempra Energy GAAP EPS




$ 9.91




$ 2.85




















 Sempra Energy Adjusted Earnings




$ 1,417




$ 843

 Add back dividends for dilutive series A and series B preferred stock




71






Sempra Energy Adjusted Earnings for Adjusted EPS




$ 1,488




$ 843

Weighted-average common shares outstanding, diluted – Adjusted(2)




312,575




278,424

Sempra Energy Adjusted EPS




$ 4.76




$ 3.03



(1) Except for adjustments that are solely income tax and tax related to outside basis differences, income taxes were primarily calculated based on applicable statutory tax rates. We did not record an income tax benefit for the equity losses from
(2) In the six months ended June 30, 2020, the denominator used to calculate Adjusted EPS includes an add-back of an additional 4,613 shares for the dilutive effect of the series B mandatory convertible preferred stock.

SEMPRA ENERGY Table A (Continued)

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

Sempra Energy 2020 Adjusted EPS Guidance Range of $7.20 to $7.80 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:

  • $(72) million from impacts associated with Aliso Canyon natural gas storage facility litigation at SoCalGas

  • $(100) million equity losses at RBS Sempra Commodities LLP, which represents an estimate of our obligations to settle pending tax matters and related legal costs at our equity method investment at Parent and Other

  • $1,754 million gain on the sale of our South American businesses, plus estimated post-closing adjustments with respect to the sale of our Chilean businesses

Sempra Energy 2020 Adjusted EPS Guidance is a non-GAAP financial measure. Because of the significance and/or nature of the excluded items, management believes that this non-GAAP financial measure provides a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Sempra Energy 2020 Adjusted EPS Guidance should not be considered an alternative to Sempra Energy 2020 GAAP EPS Guidance. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles Sempra Energy 2020 Adjusted EPS Guidance Range to Sempra Energy 2020 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP.




Full-Year 2020
Sempra Energy GAAP EPS Guidance Range(1)

$ 12.59
to
$ 13.19
Excluded items:










Impacts associated with Aliso Canyon litigation







Losses from investment in RBS Sempra Commodities LLP







Gain on sale of South American businesses






Sempra Energy Adjusted EPS Guidance Range

$ 7.20
to
$ 7.80
Weighted-average common shares outstanding, diluted (millions)(2)





293


(1) Sempra Energy's prior GAAP EPS guidance range for full-year 2020 of $12.38 to $13.32 has been updated to reflect the actual gain on sale of our South American businesses, plus estimated post-closing adjustments with respect to the sale of our Chilean businesses. It also reflects a decrease in weighted-average common shares outstanding from recent repurchases of Sempra Energy common stock under an accelerated share repurchase program.
(2) Weighted-average common shares outstanding does not include the dilutive effect of mandatory convertible preferred stock, as they are assumed to be antidilutive for full-year 2020. If such mandatory convertible preferred stock were dilutive for the full year, the 2020 GAAP EPS Guidance Range would differ from the range presented above.

 













SEMPRA ENERGY
Table B




CONDENSED CONSOLIDATED BALANCE SHEETS




(Dollars in millions) June 30,2020
December 31,

(unaudited)

ASSETS


Current assets:


Cash and cash equivalents $ 4,894

$ 108
Restricted cash 33

31
Accounts receivable – trade, net 1,022

1,261
Accounts receivable – other, net 406

455
Due from unconsolidated affiliates 91

32
Income taxes receivable 121

112
Inventories 267

277
Regulatory assets 303

222
Greenhouse gas allowances 80

72
Assets held for sale in discontinued operations

445
Other current assets 423

324
Total current assets 7,640

3,339




Other assets:


Restricted cash 3

3
Due from unconsolidated affiliates 603

742
Regulatory assets 1,973

1,930
Nuclear decommissioning trusts 1,062

1,082
Investment in Oncor Holdings 11,758

11,519
Other investments 2,197

2,103
Goodwill 1,602

1,602
Other intangible assets 208

213
Dedicated assets in support of certain benefit plans 463

488
Insurance receivable for Aliso Canyon costs 505

339
Deferred income taxes 224

155
Greenhouse gas allowances 552

470
Right-of-use assets – operating leases 578

591
Wildfire fund 378

392
Assets held for sale in discontinued operations

3,513
Other long-term assets 694

732
Total other assets 22,800

25,874
Property, plant and equipment, net 37,945

36,452
Total assets $ 68,385

$ 65,665

(1) Derived from audited financial statements.

 

SEMPRA ENERGY
Table B (Continued)




CONDENSED CONSOLIDATED BALANCE SHEETS




(Dollars in millions) June 30,2020
December 31,

(unaudited)

LIABILITIES AND EQUITY


Current liabilities:


Short-term debt $ 3,143

$ 3,505
Accounts payable – trade 1,302

1,234
Accounts payable – other 145

179
Due to unconsolidated affiliates 9

5
Dividends and interest payable 539

515
Accrued compensation and benefits 350

476
Regulatory liabilities 569

319
Current portion of long-term debt and finance leases 2,285

1,526
Reserve for Aliso Canyon costs 256

9
Greenhouse gas obligations 80

72
Liabilities held for sale in discontinued operations

444
Other current liabilities 917

866
Total current liabilities 9,595

9,150




Long-term debt and finance leases 20,535

20,785




Deferred credits and other liabilities:


Due to unconsolidated affiliates 267

195
Pension and other postretirement benefit plan obligations, net of plan assets 1,068

1,067
Deferred income taxes 2,574

2,577
Deferred investment tax credits 20

21
Regulatory liabilities 3,432

3,741
Asset retirement obligations 2,950

2,923
Greenhouse gas obligations 402

301
Liabilities held for sale in discontinued operations

1,052
Deferred credits and other 2,156

2,048
Total deferred credits and other liabilities 12,869

13,925
Equity:


Sempra Energy shareholders' equity 23,606

19,929
Preferred stock of subsidiary 20

20
Other noncontrolling interests 1,760

1,856
Total equity 25,386

21,805
Total liabilities and equity $ 68,385

$ 65,665

(1)  Derived from audited financial statements.

 

SEMPRA ENERGY
Table C




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS













Six months ended June 30,
(Dollars in millions) 2020
2019

(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES


  Net income $ 3,252

$ 953
  Less: Income from discontinued operations, net of income tax (1,857)

(36)
  Income from continuing operations, net of income tax 1,395

917
  Adjustments to reconcile net income to net cash provided by operating activities 429

482
  Intercompany activities with discontinued operations, net

64
  Net change in other working capital components 375

84
  Insurance receivable for Aliso Canyon costs (166)

80
  Changes in other noncurrent assets and liabilities, net 35

(104)
  Net cash provided by continuing operations 2,068

1,523
  Net cash (used in) provided by discontinued operations (1,041)

181
  Net cash provided by operating activities 1,027

1,704




CASH FLOWS FROM INVESTING ACTIVITIES


  Expenditures for property, plant and equipment (2,198)

(1,651)
  Expenditures for investments and acquisitions (140)

(1,391)
  Proceeds from sale of assets 5

902
  Purchases of nuclear decommissioning trust assets (797)

(497)
  Proceeds from sales of nuclear decommissioning trust assets 797

497
  Advances to unconsolidated affiliates (25)

(16)
  Repayments of advances to unconsolidated affiliates

9
  Intercompany activities with discontinued operations, net

(2)
  Other 17

13
  Net cash used in continuing operations (2,341)

(2,136)
  Net cash provided by (used in) discontinued operations 5,195

(131)
  Net cash provided by (used in) investing activities 2,854

(2,267)




CASH FLOWS FROM FINANCING ACTIVITIES


  Common dividends paid (567)

(483)
  Preferred dividends paid (71)

(71)
  Issuances of preferred stock 891


  Issuances of common stock 13

20
  Repurchases of common stock (64)

(18)
  Issuances of debt (maturities greater than 90 days) 4,059

2,630
  Payments on debt (maturities greater than 90 days) and finance leases (1,970)

(871)
  Decrease in short-term debt, net (1,871)

(444)
  Advances from unconsolidated affiliates 64


  Purchases of noncontrolling interests (27)

(28)
  Other (16)

(41)
  Net cash provided by continuing operations 441

694
  Net cash provided by (used in) discontinued operations 401

(83)
  Net cash provided by financing activities 842

611




Effect of exchange rate changes in continuing operations (7)


Effect of exchange rate changes in discontinued operations (3)


  Effect of exchange rate changes on cash, cash equivalents and restricted cash (10)






Increase in cash, cash equivalents and restricted cash, including discontinued operations 4,713

48
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 217

246
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 $ 4,930

$ 294

 

SEMPRA ENERGY
Table D

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








Three months ended June 30,
Six months ended June 30,
(Dollars in millions)
2020
2019
2020
2019



(unaudited)
Earnings (Losses) Attributable to Common Shares






SDG&E


$ 193

$ 143

$ 455

$ 319
SoCalGas


146

30

449

294
Sempra Texas Utilities


144

113

249

207
Sempra Mexico


61

73

252

130
Sempra Renewables




46



59
Sempra LNG


61

6

136

11
Parent and other


(141)

(127)

(389)

(244)
Discontinued operations


1,775

70

1,847

19
Total


$ 2,239

$ 354

$ 2,999

$ 795


























Three months ended June 30,
Six months ended June 30,
(Dollars in millions)


2020
2019
2020
2019



(unaudited)
Capital Expenditures, Investments and Acquisitions






SDG&E


$ 448

$ 352

$ 850

$ 708
SoCalGas


497

335

885

659
Sempra Texas Utilities


53

1,226

139

1,282
Sempra Mexico


151

157

321

242
Sempra Renewables




2



2
Sempra LNG


90

90

137

146
Parent and other


3

3

6

3
Total


$ 1,242

$ 2,165

$ 2,338

$ 3,042

 

SEMPRA ENERGY
Table E

OTHER OPERATING STATISTICS (Unaudited)



Three months ended June 30,
Six months ended June 30,


2020
2019
2020
2019
UTILITIES







SDG&E and SoCalGas







  Gas sales (Bcf)(1)
71
75
200
214
  Transportation (Bcf)(1)
129
124
277
268
  Total deliveries (Bcf)(1)
200
199
477
482









Total gas customer meters (thousands)




6,943
6,902










SDG&E







  Electric sales (millions of kWhs)(1)
3,124
3,244
6,584
6,826
Direct Access and Community Choice Aggregation (millions of kWhs)
847
848
1,616
1,688
  Total deliveries (millions of kWhs)(1)
3,971
4,092
8,200
8,514









Total electric customer meters (thousands)




1,478
1,463









Oncor(2)







Total deliveries (millions of kWhs)
31,038
31,516
61,458
61,628
Total electric customer meters (thousands)




3,723
3,655









Ecogas







Natural gas sales (Bcf)
1
1
2
2
Natural gas customer meters (thousands)




136
126


















ENERGY-RELATED BUSINESSES







Power generated and sold







Sempra Mexico







Termoeléctrica de Mexicali (TdM) (millions of kWhs)
457
693
1,283
1,830
  Wind and solar (millions of kWhs)(3)
381
445
803
690


(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
(3) Includes 50% of the total power generated and sold at the Energía Sierra Juàrez wind power generation facility, in which Sempra Energy has a 50% ownership interest. Energía

 

 SEMPRA ENERGY
 Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT


















Three months ended June 30, 2020
(Dollars in millions)
SDG&E
SoCalGas
SempraTexasUtilities
Sempra Mexico
Sempra Renewables
SempraLNG
ConsolidatingAdjustments,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





















Three months ended June 30, 2019
(Dollars in millions)
SDG&E
SoCalGas
SempraTexasUtilities
Sempra Mexico
Sempra Renewables
SempraLNG
ConsolidatingAdjustments,Parent & Other

Total





















Revenues
$ 1,094

$ 806

$

$ 318

$ 3

$ 86

$ (77)


$ 2,230
Cost of sales and other expenses
(642)

(599)



(130)

(9)

(88)

56


(1,412)
Depreciation and amortization
(189)

(148)



(46)



(3)

(3)


(389)
Gain on sale of assets








61



5


66
Other income (expense), net
19

1



17





(9)


28
Income (loss) before interest and tax(1)
282

60



159

55

(5)

(28)


523
Net interest (expense) income
(101)

(33)



(10)

1

13

(107)


(237)
Income tax (expense) benefit
(35)

4



(44)

(14)

(2)

44


(47)
Equity earnings (losses), net




113

4

2



(1)


118
(Earnings) losses attributable to noncontrolling interests
(3)





(36)

2






(37)
Preferred dividends


(1)









(35)


(36)
Earnings (losses) from continuing operations
$ 143

$ 30

$ 113

$ 73

$ 46

$ 6

$ (127)


284
Earnings from discontinued operations















70
Earnings attributable to common shares















$ 354





















(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





















Six months ended June 30, 2020
(Dollars in millions)
SDG&E
SoCalGas
SempraTexasUtilities
SempraMexico
SempraRenewables
SempraLNG
ConsolidatingAdjustments,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





















Six months ended June 30, 2019
(Dollars in millions)
SDG&E
SoCalGas
SempraTexasUtilities
SempraMexico
SempraRenewables
SempraLNG
ConsolidatingAdjustments,Parent & Other

Total





















Revenues
$ 2,239

$ 2,167

$

$ 701

$ 10

$ 227

$ (216)


$ 5,128
Cost of sales and other expenses
(1,339)

(1,512)



(322)

(20)

(230)

154


(3,269)
Depreciation and amortization
(375)

(295)



(90)



(5)

(7)


(772)
Gain on sale of assets








61



5


66
Other income, net
41

17



36





16


110
Income (loss) before interest and tax(1)
566

377



325

51

(8)

(48)


1,263
Net interest (expense) income
(203)

(67)



(21)

8

23

(216)


(476)
Income tax (expense) benefit
(40)

(15)



(116)

(4)

(6)

92


(89)
Equity earnings (losses), net




207

6

5

2

(1)


219
Earnings attributable to noncontrolling interests
(4)





(64)

(1)






(69)
Preferred dividends


(1)









(71)


(72)
Earnings (losses) from continuing operations
$ 319

$ 294

$ 207

$ 130

$ 59

$ 11

$ (244)


776
Earnings from discontinued operations















19
Earnings attributable to common shares















$ 795


(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.

 

Cision
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SOURCE Sempra Energy

COMTEX_368910156/2454/2020-08-05T06:55:19

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