SAN DIEGO, Aug. 4, 2017 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today reported second-quarter 2017 earnings of
$259 million, or $1.03 per diluted share, up from $16 million, or $0.06 per diluted share, in the second-quarter
2016. On an adjusted basis, Sempra Energy's second-quarter 2017
earnings increased to $276 million,
or $1.10 per diluted share, from
$200 million, or $0.79 per diluted share, in last year's second
quarter.
"Increased operating earnings in our utility and infrastructure
businesses through the first half of the year allow us to raise our
2017 earnings guidance," said Debra L.
Reed, chairman, president and CEO of Sempra Energy. "Strong
operating results were coupled with positive regulatory outcomes,
including the final regulatory decision in the Cost-of-Capital
proceeding, which provides greater visibility to earnings at our
California utilities over the next
two years. Earlier this week, Southern California Gas Co. was able
to resume limited injections at the Aliso Canyon natural gas
storage facility after receiving regulatory approval in mid-July.
Additionally, our Mexican business continues to expand, taking an
important step forward in developing infrastructure for the
promising new liquids market in Mexico."
Sempra Energy's earnings for the first six months of 2017 were
$700 million, or $2.77 per diluted share, compared with
$369 million, or $1.47 per diluted share, in the first six months
of 2016. Adjusted earnings for the first six months of 2017 were
$714 million, or $2.83 per diluted share, compared with
$625 million, or $2.48 per diluted share, in the first six months
of 2016.
These results reflect certain significant items as described in
the following table of GAAP earnings, reconciled to adjusted
earnings, for the second quarter and first six months of 2017 and
2016:
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Three
months
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ended June
30,
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Six months
ended June 30,
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2017
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2016
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2017
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2016
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(Unaudited;
Dollars, except EPS, and shares, in millions)
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As Recast
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Adjustment
for Share-
Based
Comp.(1)
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As
Originally
Reported
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GAAP
Earnings
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$ 259
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$
16
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$
700
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$
369
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$
(34)
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$
335
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Losses Related to
Termoeléctrica de Mexicali (TdM) Held For Sale
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45
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2
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42
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26
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-
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26
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(Recoveries) Losses
Related to Permanent Releases of Pipeline Capacity
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(28)
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123
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(28)
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123
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-
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123
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Tax Repairs
Adjustments Related to General Rate Case (GRC)
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-
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80
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-
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80
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-
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80
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Retroactive Q1-16 GRC
Benefit
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-
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(21)
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-
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-
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-
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-
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Loss Related to
Rockies Express Pipeline
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-
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-
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-
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27
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-
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27
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Adjusted
Earnings(2)
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$ 276
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$ 200
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$
714
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$
625
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$
(34)
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$
591
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Diluted
weighted-average shares outstanding
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253
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252
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253
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252
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252
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252
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GAAP EPS
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$1.03
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$0.06
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$
2.77
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$
1.47
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$
(0.14)
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$
1.33
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Adjusted
EPS(2)
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$1.10
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$0.79
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$
2.83
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$
2.48
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$
(0.14)
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$
2.35
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(1) Reflects adoption
of Accounting Standards Update 2016-09 as of Jan. 1, 2016. For more
information, refer to Sempra Energy's Form 10-Q.
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(2) Sempra Energy
adjusted earnings and adjusted EPS are non-GAAP financial measures.
See Table A in the appendix for information regarding non-GAAP
financial measures and descriptions of adjustments
above.
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SEMPRA UTILITIES
On July
13, the California Public Utilities Commission (CPUC) issued
a final ruling approving a two-year extension through 2019 for San
Diego Gas & Electric (SDG&E) and Southern California Gas
Co. (SoCalGas) to file their next applications in the
Cost-of-Capital proceeding at the CPUC. The CPUC decision, which is
consistent with the Cost-of-Capital assumptions provided for
SDG&E and SoCalGas in the five-year financial plan at Sempra
Energy's 2017 Analyst Conference, adopts an authorized return on
equity of 10.2 percent and 10.05 percent for SDG&E and
SoCalGas, respectively, through 2019.
San Diego Gas & Electric
Second-quarter 2017
earnings for SDG&E were $149
million, compared with $100
million in the second quarter 2016, due primarily to higher
CPUC base margin and lower operating costs. In last year's second
quarter, due to the final 2016-18 General Rate Case decision,
SDG&E recorded a $31 million
after-tax refund to ratepayers of benefits from tax repairs
deductions, offset by a $9 million
after-tax retroactive benefit for first-quarter 2016 earnings.
For the first six months of 2017, SDG&E's earnings were
$304 million, compared with
$236 million in the same period last
year.
Southern California Gas Co.
In the second quarter 2017, SoCalGas had earnings of $58 million, compared with a net loss of
$1 million in last year's second
quarter, due primarily to an after-tax impairment of $13 million in the second quarter 2016 based on
the CPUC's decision related to the proposed North-South pipeline
project. Additionally, in last year's second quarter, due to the
final 2016-18 General Rate Case decision, SoCalGas recorded a
$49 million after-tax refund to
ratepayers of benefits from tax repairs deductions, offset by a
$12 million after-tax retroactive
benefit for first-quarter 2016 earnings.
In the first half of 2017, SoCalGas' earnings were $261 million, up from $198
million in the first half of 2016.
On July 31, SoCalGas resumed
limited injections at the Aliso Canyon natural gas storage facility
after receiving regulatory approval earlier in the month from the
CPUC and California's Division of
Oil, Gas, and Geothermal Resources (DOGGR). The regulatory agencies
certified that SoCalGas had met the conditions of the state's
rigorous safety review.
Sempra South American Utilities
In the second quarter 2017, Sempra South American Utilities had
earnings of $45 million, compared
with $43 million in the second
quarter 2016.
For the first six months of 2017, earnings for Sempra South
American Utilities were $92 million,
compared with $81 million in the
first six months last year.
SEMPRA INFRASTRUCTURE
Sempra Mexico
Sempra Mexico recorded a net loss of $9
million in the second quarter 2017, compared with earnings
of $57 million in the second quarter
2016, due primarily to a $47 million
impairment the company recorded on the Termoélectrica de
Mexicali power plant, which is
being held for sale, as well as unfavorable foreign-currency and
inflation effects.
For the first six months of 2017, Sempra Mexico had earnings of
$39 million, compared with
$75 million in the same period last
year.
Yesterday, Mexican subsidiary IEnova announced several
U.S.-dollar-denominated, long-term capacity agreements with Valero
to develop three new liquids terminals – in Mexico City, Puebla and the Port of Veracruz. These projects represent IEnova's
first ventures in Mexico's
emerging $10 billion liquids
market.
Sempra Renewables
Second-quarter 2017 earnings for Sempra Renewables were
$23 million, up from $12 million in 2016, due primarily to higher
earnings for solar assets placed into service during 2016.
In the first half of 2017, earnings for Sempra Renewables were
$34 million, compared with
$26 million in the first half of
2016.
Sempra LNG & Midstream
In the second quarter 2017, Sempra LNG & Midstream recorded
earnings of $27 million, compared
with a net loss of $149 million in
the second quarter 2016. Sempra LNG & Midstream recorded a
$28 million after-tax recovery in
2017 related to last year's permanent releases of pipeline
capacity, compared with a related $123
million after-tax loss in 2016.
For the first six months of 2017, Sempra LNG & Midstream
recorded earnings of $28 million,
compared with a net loss of $181
million in the first six months of 2016.
The company announced today that, based on several factors, it
believes it is reasonable to expect that the Cameron LNG
liquefaction-export project's first liquefaction train could be
delayed into 2019, with the other two trains following throughout
2019 and with no earnings expected in 2018. Despite the revisions
in the schedule, the company does not expect any material impact on
the long-term economics of the project and anticipates earnings
from the project of $300 million to $350
million in 2020.
2017 EARNINGS GUIDANCE
Today, Sempra Energy raised its GAAP 2017 earnings-per-share
guidance range to $4.95 to $5.25 and
its adjusted 2017 earnings-per-share guidance range to $5 to $5.30, both from the previous
earnings-per-share range of $4.85 to
$5.25. The company also affirmed its previous 2018
earnings-per-share guidance range of $5.30
to $5.80.
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 4175144.
NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures include Sempra Energy's 2017 adjusted
earnings guidance, and adjusted earnings and adjusted earnings per
share for both the second quarter and first six months of 2017 and
2016. Information regarding these non-GAAP financial measures is in
the appendix on Table A of the second-quarter financial tables.
Sempra Energy, based in San Diego, is a Fortune 500 energy
services holding company with 2016 revenues of more than $10
billion. The Sempra Energy companies' more than 16,000 employees
serve approximately 32 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 like
"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 actual results and
future actions to differ materially from those described in
forward-looking statements include: 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 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, 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; 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; modifications of settlements; delays in, or
disallowance or denial of, regulatory agency authorizations to
recover costs in rates from customers (including with respect to
regulatory assets associated with the San Onofre Nuclear Generating
Station facility and 2007 wildfires) or regulatory agency approval
for projects required to enhance safety and reliability; 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; the
impact on the value of our investment 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) or may be disputed by insurers;
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; fluctuations in
inflation, interest and currency exchange rates and our ability to
effectively hedge the risk of such fluctuations; changes in the tax
code as a result of potential federal tax reform, such as the
elimination of the deduction for interest and non-deductibility of
all, or a portion of, the cost of imported materials, equipment and
commodities; changes in foreign and domestic trade policies and
laws, including border tariffs, revisions to favorable
international trade agreements, and changes that make our exports
less competitive or otherwise restrict our ability to export; 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; 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 Securities and
Exchange Commission. 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 at www.sempra.com. 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 and
Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not
the same as the California Utilities, San Diego Gas & Electric
Company (SDG&E) or Southern California Gas Company (SoCalGas),
and are not regulated by the California Public Utilities
Commission.
[SRE-F]
SEMPRA
ENERGY
|
Table
A
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
(Dollars in millions,
except per share amounts)
|
2017
|
|
2016(1)
|
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2017
|
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2016(1)
|
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(unaudited)
|
REVENUES
|
|
|
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|
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Utilities
|
$
|
2,197
|
|
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$
|
1,994
|
|
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$
|
4,895
|
|
|
$
|
4,436
|
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Energy-related
businesses
|
336
|
|
|
162
|
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|
669
|
|
|
342
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Total
revenues
|
2,533
|
|
|
2,156
|
|
|
5,564
|
|
|
4,778
|
|
|
|
|
|
|
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EXPENSES AND OTHER
INCOME
|
|
|
|
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|
|
|
Utilities:
|
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|
|
|
|
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Cost of electric fuel
and purchased power
|
(553)
|
|
|
(561)
|
|
|
(1,080)
|
|
|
(1,076)
|
|
Cost of natural
gas
|
(228)
|
|
|
(183)
|
|
|
(713)
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|
|
(494)
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Energy-related
businesses:
|
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|
|
|
|
|
|
Cost of natural gas,
electric fuel and purchased power
|
(62)
|
|
|
(62)
|
|
|
(129)
|
|
|
(118)
|
|
Other cost of
sales
|
38
|
|
|
(226)
|
|
|
16
|
|
|
(261)
|
|
Operation and
maintenance
|
(731)
|
|
|
(706)
|
|
|
(1,445)
|
|
|
(1,406)
|
|
Depreciation and
amortization
|
(368)
|
|
|
(314)
|
|
|
(728)
|
|
|
(642)
|
|
Franchise fees and
other taxes
|
(101)
|
|
|
(96)
|
|
|
(211)
|
|
|
(207)
|
|
Impairment
losses
|
(71)
|
|
|
(21)
|
|
|
(71)
|
|
|
(22)
|
|
Equity earnings
(losses), before income tax
|
18
|
|
|
14
|
|
|
21
|
|
|
(8)
|
|
Other income,
net
|
91
|
|
|
23
|
|
|
260
|
|
|
72
|
|
Interest
income
|
8
|
|
|
6
|
|
|
14
|
|
|
12
|
|
Interest
expense
|
(159)
|
|
|
(142)
|
|
|
(328)
|
|
|
(285)
|
|
Income (loss) before
income taxes and equity earnings (losses) of certain unconsolidated
subsidiaries
|
415
|
|
|
(112)
|
|
|
1,170
|
|
|
343
|
|
Income tax (expense)
benefit
|
(167)
|
|
|
106
|
|
|
(462)
|
|
|
(2)
|
|
Equity earnings
(losses), net of income tax
|
—
|
|
|
33
|
|
|
(8)
|
|
|
50
|
|
Net income
|
248
|
|
|
27
|
|
|
700
|
|
|
391
|
|
Losses (earnings)
attributable to noncontrolling interests
|
12
|
|
|
(10)
|
|
|
1
|
|
|
(21)
|
|
Preferred dividends
of subsidiary
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
Earnings
|
$
|
259
|
|
|
$
|
16
|
|
|
$
|
700
|
|
|
$
|
369
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
1.03
|
|
|
$
|
0.06
|
|
|
$
|
2.79
|
|
|
$
|
1.48
|
|
Weighted-average
number of shares outstanding, basic (thousands)
|
251,447
|
|
|
250,096
|
|
|
251,290
|
|
|
249,915
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
1.03
|
|
|
$
|
0.06
|
|
|
$
|
2.77
|
|
|
$
|
1.47
|
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
252,822
|
|
|
252,036
|
|
|
252,609
|
|
|
251,775
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock
|
$
|
0.83
|
|
|
$
|
0.75
|
|
|
$
|
1.65
|
|
|
$
|
1.51
|
|
|
|
(1)
|
As adjusted for the
adoption of ASU 2016-09 as of January 1, 2016.
|
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 Share exclude items
(after the effects of taxes and, if applicable, noncontrolling
interests) in 2017 and 2016 as follows:
|
|
Three months ended
June 30, 2017:
|
▪
|
$(47) million
impairment of Sempra Mexico's Termoeléctrica de Mexicali (TdM)
assets held for sale
|
▪
|
$2 million deferred
income tax benefit on the TdM assets held for sale
|
▪
|
$28 million of
recoveries related to 2016 permanent release of pipeline
capacity
|
|
Three months ended
June 30, 2016:
|
▪
|
$(123) million losses
from the permanent release of pipeline capacity at Sempra LNG &
Midstream
|
▪
|
$(80) million
adjustments related to tax repairs deductions reallocated to
ratepayers as a result of the 2016 General Rate Case Final Decision
(2016 GRC FD) at the California Utilities
|
▪
|
$21 million
incremental revenue increases for the first quarter of 2016 from
the retroactive application of the 2016 GRC FD at the California
Utilities
|
▪
|
$(2) million deferred
income tax expense on the TdM assets held for sale
|
|
Six months ended June
30, 2017:
|
▪
|
$(47) million
impairment of TdM assets held for sale
|
▪
|
$5 million deferred
income tax benefit on the TdM assets held for sale
|
▪
|
$28 million of
recoveries related to 2016 permanent release of pipeline
capacity
|
|
Six months ended June
30, 2016:
|
▪
|
$(123) million losses
from the permanent release of pipeline capacity at Sempra LNG &
Midstream
|
▪
|
$(80) million
adjustments related to tax repairs deductions reallocated to
ratepayers as a result of the 2016 GRC FD at the California
Utilities
|
▪
|
$(27) million
impairment charge related to Sempra LNG & Midstream's
investment in Rockies Express Pipeline LLC (Rockies
Express)
|
▪
|
$(26) million
deferred income tax expense on the TdM assets held for
sale
|
|
Sempra Energy
Adjusted Earnings and Adjusted Earnings Per 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 2017 to 2016 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 Earnings and Diluted Earnings Per Common Share,
which we consider to be the most directly comparable financial
measures calculated in accordance with GAAP.
|
|
|
Pretax
amount
|
Income tax
(benefit)
expense(1)
|
Non-
controlling
interests
|
Earnings
|
|
Pretax
amount
|
Income tax
expense
(benefit)(1)
|
Non-
controlling
interests
|
Earnings
|
|
(Dollars in millions,
except per share amounts)
|
Three months ended
June 30, 2017
|
|
Three months ended
June 30, 2016(2)
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
259
|
|
|
|
|
|
$
|
16
|
|
|
Excluded
items:
|
|
|
|
|
|
|
|
|
|
|
Impairment of TdM
assets held for sale
|
$
|
71
|
|
$
|
—
|
|
$
|
(24)
|
|
47
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
|
Deferred income tax
(benefit) expense associated with TdM
|
—
|
|
(3)
|
|
1
|
|
(2)
|
|
|
—
|
|
3
|
|
(1)
|
|
2
|
|
|
Recoveries related to
2016 permanent release of pipeline capacity
|
(47)
|
|
19
|
|
—
|
|
(28)
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Permanent release of
pipeline capacity
|
—
|
|
—
|
|
—
|
|
—
|
|
|
206
|
|
(83)
|
|
—
|
|
123
|
|
|
SDG&E tax repairs
adjustments related to 2016 GRC FD
|
—
|
|
—
|
|
—
|
|
—
|
|
|
52
|
|
(21)
|
|
—
|
|
31
|
|
|
SoCalGas tax repairs
adjustments related to 2016 GRC FD
|
—
|
|
—
|
|
—
|
|
—
|
|
|
83
|
|
(34)
|
|
—
|
|
49
|
|
|
SDG&E retroactive
impact of 2016 GRC FD for Q1 2016
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(15)
|
|
6
|
|
—
|
|
(9)
|
|
|
SoCalGas retroactive
impact of 2016 GRC FD for Q1 2016
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(20)
|
|
8
|
|
—
|
|
(12)
|
|
|
Sempra Energy
Adjusted Earnings
|
|
|
|
|
$
|
276
|
|
|
|
|
|
$
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
1.03
|
|
|
|
|
|
$
|
0.06
|
|
|
Sempra Energy Adjusted
Earnings
|
|
|
|
$
|
1.10
|
|
|
|
|
|
$
|
0.79
|
|
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
|
252,822
|
|
|
|
|
|
252,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2017
|
|
Six months ended June
30, 2016(2)
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
700
|
|
|
|
|
|
$
|
369
|
|
|
Excluded
items:
|
|
|
|
|
|
|
|
|
|
|
Impairment of TdM
assets held for sale
|
$
|
71
|
|
$
|
—
|
|
$
|
(24)
|
|
47
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
|
Deferred income tax
(benefit) expense associated with TdM
|
—
|
|
(8)
|
|
3
|
|
(5)
|
|
|
—
|
|
32
|
|
(6)
|
|
26
|
|
|
Recoveries related to
2016 permanent release of pipeline capacity
|
(47)
|
|
19
|
|
—
|
|
(28)
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Permanent release of
pipeline capacity
|
—
|
|
—
|
|
—
|
|
—
|
|
|
206
|
|
(83)
|
|
—
|
|
123
|
|
|
SDG&E tax repairs
adjustments related to 2016 GRC FD
|
—
|
|
—
|
|
—
|
|
—
|
|
|
52
|
|
(21)
|
|
—
|
|
31
|
|
|
SoCalGas tax repairs
adjustments related to 2016 GRC FD
|
—
|
|
—
|
|
—
|
|
—
|
|
|
83
|
|
(34)
|
|
—
|
|
49
|
|
|
Impairment of
investment in Rockies Express
|
—
|
|
—
|
|
—
|
|
—
|
|
|
44
|
|
(17)
|
|
—
|
|
27
|
|
|
Sempra Energy
Adjusted Earnings
|
|
|
|
$
|
714
|
|
|
|
|
|
$
|
625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
2.77
|
|
|
|
|
|
$
|
1.47
|
|
|
Sempra Energy Adjusted
Earnings
|
|
|
|
$
|
2.83
|
|
|
|
|
|
$
|
2.48
|
|
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
|
252,609
|
|
|
|
|
|
251,775
|
|
|
(1)
|
Income taxes were
calculated based on applicable statutory tax rates, except for
adjustments that are solely income tax. 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)
|
Reflects the adoption
of ASU 2016-09 as of January 1, 2016.
|
SEMPRA
ENERGY
|
Table A
(Continued)
|
|
RECONCILIATION OF
SEMPRA ENERGY 2017 ADJUSTED EARNINGS-PER-SHARE GUIDANCE RANGE TO
SEMPRA ENERGY 2017 GAAP EARNINGS-PER-SHARE GUIDANCE RANGE
(Unaudited)
|
|
Sempra Energy 2017
Adjusted Earnings-Per-Share Guidance Range of $5.00 to $5.30
excludes items (after the effects of taxes and, if applicable,
noncontrolling interests) as follows:
|
▪ $(47) million impairment of Sempra Mexico's TdM
assets held for sale
|
▪ $5 million deferred income tax benefit on the TdM
assets held for sale
|
▪ $28 million of recoveries related to 2016 permanent
release of pipeline capacity
|
|
Sempra Energy 2017
Adjusted Earnings-Per-Share Guidance is a non-GAAP financial
measure. Because of the significance and/or nature of the excluded
items, management believes this non-GAAP financial measure provides
additional clarity into the ongoing results of the business and the
comparability of such results to prior and future periods and also
as a base for projected earnings-per-share compound annual growth
rate. Sempra Energy 2017 Adjusted Earnings-Per-Share Guidance
should not be considered an alternative to Earnings-Per-Share
Guidance determined in accordance with GAAP. The table below
reconciles Sempra Energy 2017 Adjusted Earnings-Per-Share Guidance
Range to Sempra Energy 2017 GAAP Earnings-Per-Share Guidance Range,
which we consider to be the most directly comparable financial
measure calculated in accordance with GAAP.
|
|
Full-Year
2017
|
Sempra Energy GAAP
Earnings-Per-Share Guidance Range
|
$
|
4.95
|
|
to
|
$
|
5.25
|
Excluded
items(1):
|
|
|
|
|
Impairment of TdM
assets held for sale
|
0.18
|
|
|
0.18
|
|
Deferred income tax
benefit associated with TdM
|
(0.02)
|
|
|
(0.02)
|
|
Recoveries related to
2016 permanent release of pipeline capacity
|
(0.11)
|
|
|
(0.11)
|
Sempra Energy
Adjusted Earnings-Per-Share Guidance Range
|
$
|
5.00
|
|
to
|
$
|
5.30
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
254,000
|
(1)
|
The effects of taxes
and noncontrolling interests for excluded items are provided above
in the reconciliation of Sempra Energy GAAP Earnings to Sempra
Energy Adjusted Earnings.
|
SEMPRA
ENERGY
|
Table
B
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(Dollars in
millions)
|
June 30,
2017
|
|
December 31,
2016(1)
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
223
|
|
|
$
|
349
|
|
Restricted
cash
|
70
|
|
|
66
|
|
Accounts
receivable, net
|
1,304
|
|
|
1,554
|
|
Due from
unconsolidated affiliates
|
26
|
|
|
26
|
|
Income taxes
receivable
|
110
|
|
|
43
|
|
Inventories
|
239
|
|
|
258
|
|
Regulatory
balancing accounts – undercollected
|
261
|
|
|
259
|
|
Fixed-price
contracts and other derivatives
|
186
|
|
|
83
|
|
Assets held for
sale
|
109
|
|
|
201
|
|
Other
|
239
|
|
|
271
|
|
Total current
assets
|
2,767
|
|
|
3,110
|
|
|
|
|
|
Other
assets:
|
|
|
|
Restricted
cash
|
17
|
|
|
10
|
|
Due from
unconsolidated affiliates
|
373
|
|
|
201
|
|
Regulatory
assets
|
3,569
|
|
|
3,414
|
|
Nuclear
decommissioning trusts
|
1,029
|
|
|
1,026
|
|
Investments
|
2,134
|
|
|
2,097
|
|
Goodwill
|
2,379
|
|
|
2,364
|
|
Other intangible
assets
|
541
|
|
|
548
|
|
Dedicated assets
in support of certain benefit plans
|
427
|
|
|
430
|
|
Insurance
receivable for Aliso Canyon costs
|
554
|
|
|
606
|
|
Deferred income
taxes
|
166
|
|
|
234
|
|
Sundry
|
859
|
|
|
815
|
|
Total other
assets
|
12,048
|
|
|
11,745
|
|
Property, plant and
equipment, net
|
34,561
|
|
|
32,931
|
|
Total
assets
|
$
|
49,376
|
|
|
$
|
47,786
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
1,826
|
|
|
$
|
1,779
|
|
Accounts
payable
|
1,167
|
|
|
1,476
|
|
Due to
unconsolidated affiliates
|
11
|
|
|
11
|
|
Dividends and
interest payable
|
339
|
|
|
319
|
|
Accrued
compensation and benefits
|
314
|
|
|
409
|
|
Regulatory
balancing accounts – overcollected
|
204
|
|
|
122
|
|
Current
portion of long-term debt
|
1,287
|
|
|
913
|
|
Fixed-price
contracts and other derivatives
|
109
|
|
|
83
|
|
Customer
deposits
|
158
|
|
|
158
|
|
Reserve for
Aliso Canyon costs
|
63
|
|
|
53
|
|
Liabilities held
for sale
|
47
|
|
|
47
|
|
Other
|
538
|
|
|
557
|
|
Total current
liabilities
|
6,063
|
|
|
5,927
|
|
Long-term
debt
|
15,000
|
|
|
14,429
|
|
|
|
|
|
Deferred credits and
other liabilities:
|
|
|
|
Customer
advances for construction
|
146
|
|
|
152
|
|
Pension and
other postretirement benefit plan obligations, net of plan
assets
|
1,240
|
|
|
1,208
|
|
Deferred income
taxes
|
4,191
|
|
|
3,745
|
|
Deferred
investment tax credits
|
27
|
|
|
28
|
|
Regulatory
liabilities arising from removal obligations
|
2,746
|
|
|
2,697
|
|
Asset retirement
obligations
|
2,469
|
|
|
2,431
|
|
Fixed-price
contracts and other derivatives
|
330
|
|
|
405
|
|
Deferred credits
and other
|
1,559
|
|
|
1,523
|
|
Total deferred
credits and other liabilities
|
12,708
|
|
|
12,189
|
|
Equity:
|
|
|
|
Total Sempra
Energy shareholders' equity
|
13,332
|
|
|
12,951
|
|
Preferred stock
of subsidiary
|
20
|
|
|
20
|
|
Other
noncontrolling interests
|
2,253
|
|
|
2,270
|
|
Total
equity
|
15,605
|
|
|
15,241
|
|
Total liabilities and
equity
|
$
|
49,376
|
|
|
$
|
47,786
|
|
|
(1)
|
Derived from audited
financial statements.
|
SEMPRA
ENERGY
|
Table
C
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30,
|
(Dollars in
millions)
|
|
2017
|
|
2016(1)
|
|
|
(unaudited)
|
Cash Flows from
Operating Activities
|
|
|
|
|
Net income
|
|
$
|
700
|
|
|
$
|
391
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
728
|
|
|
642
|
|
Deferred income
taxes and investment tax credits
|
|
411
|
|
|
(76)
|
|
Impairment
losses
|
|
71
|
|
|
22
|
|
Equity earnings,
net
|
|
(13)
|
|
|
(42)
|
|
Fixed-price
contracts and other derivatives
|
|
(142)
|
|
|
41
|
|
Other
|
|
(19)
|
|
|
45
|
|
Net change in other
working capital components
|
|
138
|
|
|
167
|
|
Insurance receivable
for Aliso Canyon costs
|
|
52
|
|
|
(354)
|
|
Changes in other
assets
|
|
(88)
|
|
|
(67)
|
|
Changes in other
liabilities
|
|
51
|
|
|
147
|
|
Net cash
provided by operating activities
|
|
1,889
|
|
|
916
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
Expenditures for
property, plant and equipment
|
|
(1,802)
|
|
|
(2,006)
|
|
Expenditures for
investments
|
|
(97)
|
|
|
(46)
|
|
Proceeds from sale of
assets
|
|
4
|
|
|
443
|
|
Distributions from
investments
|
|
18
|
|
|
12
|
|
Purchases of nuclear
decommissioning and other trust assets
|
|
(823)
|
|
|
(206)
|
|
Proceeds from sales
by nuclear decommissioning and other trusts
|
|
823
|
|
|
204
|
|
Increases in
restricted cash
|
|
(194)
|
|
|
(32)
|
|
Decreases in
restricted cash
|
|
185
|
|
|
44
|
|
Advances to
unconsolidated affiliates
|
|
(183)
|
|
|
(9)
|
|
Repayments of
advances to unconsolidated affiliates
|
|
2
|
|
|
9
|
|
Other
|
|
—
|
|
|
(6)
|
|
Net cash used in
investing activities
|
|
(2,067)
|
|
|
(1,593)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
Common dividends
paid
|
|
(368)
|
|
|
(335)
|
|
Preferred dividends
paid by subsidiary
|
|
(1)
|
|
|
(1)
|
|
Issuances of common
stock
|
|
28
|
|
|
29
|
|
Repurchases of common
stock
|
|
(14)
|
|
|
(54)
|
|
Issuances of debt
(maturities greater than 90 days)
|
|
1,932
|
|
|
1,384
|
|
Payments on debt
(maturities greater than 90 days)
|
|
(1,006)
|
|
|
(986)
|
|
(Decrease) increase
in short-term debt, net
|
|
(493)
|
|
|
865
|
|
Net distributions to
noncontrolling interests
|
|
(25)
|
|
|
(10)
|
|
Other
|
|
(9)
|
|
|
(10)
|
|
Net cash
provided by financing activities
|
|
44
|
|
|
882
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
8
|
|
|
8
|
|
|
|
|
|
|
(Decrease) increase
in cash and cash equivalents
|
|
(126)
|
|
|
213
|
|
Cash and cash
equivalents, January 1
|
|
349
|
|
|
403
|
|
Cash and cash
equivalents, June 30
|
|
$
|
223
|
|
|
$
|
616
|
|
|
(1)
|
As adjusted for the
adoption of ASU 2016-09 as of January 1, 2016.
|
SEMPRA
ENERGY
|
Table
D
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS (LOSSES) AND CAPITAL EXPENDITURES AND
INVESTMENTS
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
(Dollars in
millions)
|
2017
|
|
2016
|
|
2017
|
|
2016(1)
|
|
(unaudited)
|
Earnings
(Losses)
|
|
|
|
|
|
|
|
Sempra
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas
& Electric
|
$
|
149
|
|
|
$
|
100
|
|
|
$
|
304
|
|
|
$
|
236
|
|
Southern
California Gas
|
58
|
|
|
(1)
|
|
|
261
|
|
|
198
|
|
Sempra South
American Utilities
|
45
|
|
|
43
|
|
|
92
|
|
|
81
|
|
Sempra
Infrastructure:
|
|
|
|
|
|
|
|
Sempra
Mexico
|
(9)
|
|
|
57
|
|
|
39
|
|
|
75
|
|
Sempra
Renewables
|
23
|
|
|
12
|
|
|
34
|
|
|
26
|
|
Sempra LNG &
Midstream
|
27
|
|
|
(149)
|
|
|
28
|
|
|
(181)
|
|
Parent and
other
|
(34)
|
|
|
(46)
|
|
|
(58)
|
|
|
(66)
|
|
Earnings
|
$
|
259
|
|
|
$
|
16
|
|
|
$
|
700
|
|
|
$
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
(Dollars in
millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(unaudited)
|
Capital
Expenditures and Investments
|
|
|
|
|
|
|
|
Sempra
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas
& Electric
|
$
|
345
|
|
|
$
|
273
|
|
|
$
|
763
|
|
|
$
|
602
|
|
Southern
California Gas
|
325
|
|
|
310
|
|
|
682
|
|
|
650
|
|
Sempra South
American Utilities
|
34
|
|
|
39
|
|
|
77
|
|
|
82
|
|
Sempra
Infrastructure:
|
|
|
|
|
|
|
|
Sempra
Mexico
|
87
|
|
|
100
|
|
|
227
|
|
|
140
|
|
Sempra
Renewables
|
31
|
|
|
279
|
|
|
100
|
|
|
478
|
|
Sempra LNG &
Midstream
|
22
|
|
|
45
|
|
|
37
|
|
|
92
|
|
Parent and
other
|
4
|
|
|
5
|
|
|
13
|
|
|
8
|
|
Consolidated Capital
Expenditures and Investments
|
$
|
848
|
|
|
$
|
1,051
|
|
|
$
|
1,899
|
|
|
$
|
2,052
|
|
|
(1)
|
As adjusted for the
adoption of ASU 2016-09 as of January 1, 2016.
|
SEMPRA
ENERGY
|
Table
E
|
|
OTHER OPERATING
STATISTICS (Unaudited)
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
UTILITIES
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
SDG&E and
SoCalGas
|
|
|
|
|
|
|
|
Gas Sales
(Bcf)(1)
|
71
|
|
|
73
|
|
|
197
|
|
|
186
|
|
Transportation
(Bcf)(1)
|
148
|
|
|
144
|
|
|
304
|
|
|
292
|
|
Total Deliveries
(Bcf)(1)
|
219
|
|
|
217
|
|
|
501
|
|
|
478
|
|
|
|
|
|
|
|
|
|
Total Gas Customers
(Thousands)
|
|
|
|
|
6,825
|
|
|
6,789
|
|
|
|
|
|
|
|
|
|
Electric Sales
(Millions of kWhs)(1)
|
3,565
|
|
|
3,512
|
|
|
7,329
|
|
|
7,285
|
|
Direct Access
(Millions of kWhs)
|
786
|
|
|
772
|
|
|
1,573
|
|
|
1,606
|
|
Total Deliveries
(Millions of kWhs)(1)
|
4,351
|
|
|
4,284
|
|
|
8,902
|
|
|
8,891
|
|
|
|
|
|
|
|
|
|
Total Electric
Customers (Thousands)
|
|
|
|
|
1,438
|
|
|
1,429
|
|
|
|
|
|
|
|
|
|
Other
Utilities
|
|
|
|
|
|
|
|
Natural Gas Sales
(Bcf)
|
|
|
|
|
|
|
|
Sempra
Mexico
|
7
|
|
|
7
|
|
|
15
|
|
|
15
|
|
Mobile Gas(2)
(3)
|
—
|
|
|
11
|
|
|
—
|
|
|
24
|
|
Willmut
Gas(3)
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
Natural Gas Customers
(Thousands)
|
|
|
|
|
|
|
|
Sempra
Mexico
|
|
|
|
|
120
|
|
|
116
|
|
Mobile Gas(2)
(3)
|
|
|
|
|
—
|
|
|
85
|
|
Willmut
Gas(3)
|
|
|
|
|
—
|
|
|
19
|
|
Electric Sales
(Millions of kWhs)
|
|
|
|
|
|
|
|
Peru
|
1,780
|
|
|
1,887
|
|
|
3,674
|
|
|
3,836
|
|
Chile
|
691
|
|
|
682
|
|
|
1,502
|
|
|
1,481
|
|
Electric Customers
(Thousands)
|
|
|
|
|
|
|
|
Peru
|
|
|
|
|
1,086
|
|
|
1,065
|
|
Chile
|
|
|
|
|
696
|
|
|
679
|
|
|
|
|
|
|
|
|
|
ENERGY-RELATED
BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra
Infrastructure
|
|
|
|
|
|
|
|
Power Sold (Millions
of kWhs)
|
|
|
|
|
|
|
|
Sempra
Mexico(4)
|
650
|
|
|
665
|
|
|
1,705
|
|
|
1,245
|
|
Sempra
Renewables(5)
|
1,192
|
|
|
725
|
|
|
2,206
|
|
|
1,492
|
|
Sempra LNG &
Midstream
|
229
|
|
|
243
|
|
|
494
|
|
|
464
|
|
|
|
(1)
|
Includes intercompany
sales.
|
(2)
|
Includes
transportation.
|
(3)
|
On September 12,
2016, Sempra LNG & Midstream completed the sale of the parent
company of Mobile Gas and Willmut Gas.
|
(4)
|
Includes power sold
at the Termoeléctrica de Mexicali natural gas-fired power plant and
in 2017, at the Ventika wind power generation facilities acquired
in December 2016. Also includes 50 percent of total power 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.
|
(5)
|
Includes 50 percent
of total power 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
June 30, 2017
|
|
|
|
|
|
(Dollars in
millions)
|
SDG&E
|
|
SoCalGas
|
|
Sempra
South
American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra
LNG &
Midstream
|
|
Consolidating
Adjustments,
Parent &
Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,058
|
|
|
$
|
770
|
|
|
$
|
381
|
|
|
$
|
273
|
|
|
$
|
26
|
|
|
$
|
122
|
|
|
$
|
(97)
|
|
|
|
$
|
2,533
|
|
Cost of sales and
other expenses
|
(651)
|
|
|
(549)
|
|
|
(294)
|
|
|
(130)
|
|
|
(20)
|
|
|
(71)
|
|
|
78
|
|
|
|
(1,637)
|
|
Depreciation and
amortization
|
(166)
|
|
|
(126)
|
|
|
(13)
|
|
|
(37)
|
|
|
(10)
|
|
|
(11)
|
|
|
(5)
|
|
|
|
(368)
|
|
Impairment
loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(71)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(71)
|
|
Equity earnings,
before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
2
|
|
|
—
|
|
|
|
18
|
|
Other income,
net
|
15
|
|
|
9
|
|
|
2
|
|
|
60
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
|
91
|
|
Income (loss) before
interest and tax (1)
|
256
|
|
|
104
|
|
|
76
|
|
|
95
|
|
|
13
|
|
|
42
|
|
|
(20)
|
|
|
|
566
|
|
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)
|
|
(Earnings) losses
attributable to noncontrolling interests
|
(4)
|
|
|
—
|
|
|
(6)
|
|
|
15
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
|
12
|
|
Earnings
(losses)
|
$
|
149
|
|
|
$
|
58
|
|
|
$
|
45
|
|
|
$
|
(9)
|
|
|
$
|
23
|
|
|
$
|
27
|
|
|
$
|
(34)
|
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
SDG&E
|
|
SoCalGas
|
|
Sempra
South
American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra
LNG &
Midstream
|
|
Consolidating
Adjustments,
Parent &
Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
992
|
|
|
$
|
617
|
|
|
$
|
385
|
|
|
$
|
147
|
|
|
$
|
6
|
|
|
$
|
90
|
|
|
$
|
(81)
|
|
|
|
$
|
2,156
|
|
Cost of sales and
other expenses
|
(664)
|
|
|
(495)
|
|
|
(306)
|
|
|
(86)
|
|
|
(13)
|
|
|
(336)
|
|
|
66
|
|
|
|
(1,834)
|
|
Depreciation and
amortization
|
(158)
|
|
|
(112)
|
|
|
(14)
|
|
|
(15)
|
|
|
(2)
|
|
|
(12)
|
|
|
(1)
|
|
|
|
(314)
|
|
Impairment
loss
|
—
|
|
|
(21)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(21)
|
|
Equity earnings,
before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
3
|
|
|
—
|
|
|
|
14
|
|
Other income
(expense), net
|
13
|
|
|
6
|
|
|
5
|
|
|
(15)
|
|
|
1
|
|
|
1
|
|
|
12
|
|
|
|
23
|
|
Income (loss) before
interest and tax (1)
|
183
|
|
|
(5)
|
|
|
70
|
|
|
31
|
|
|
3
|
|
|
(254)
|
|
|
(4)
|
|
|
|
24
|
|
Net interest
(expense) income (2)
|
(48)
|
|
|
(25)
|
|
|
(6)
|
|
|
(3)
|
|
|
—
|
|
|
7
|
|
|
(62)
|
|
|
|
(137)
|
|
Income tax (expense)
benefit
|
(48)
|
|
|
29
|
|
|
(15)
|
|
|
12
|
|
|
9
|
|
|
99
|
|
|
20
|
|
|
|
106
|
|
Equity earnings, net
of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
33
|
|
Losses (earnings)
attributable to noncontrolling interests
|
13
|
|
|
—
|
|
|
(6)
|
|
|
(16)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
|
(10)
|
|
Earnings
(losses)
|
$
|
100
|
|
|
$
|
(1)
|
|
|
$
|
43
|
|
|
$
|
57
|
|
|
$
|
12
|
|
|
$
|
(149)
|
|
|
$
|
(46)
|
|
|
|
$
|
16
|
|
|
|
(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 of
subsidiary.
|
SEMPRA
ENERGY
|
Table F
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
OPERATIONS DATA BY SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2017
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
SDG&E
|
|
SoCalGas
|
|
Sempra
South
American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra
LNG &
Midstream
|
|
Consolidating
Adjustments,
Parent &
Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,115
|
|
|
$
|
2,011
|
|
|
$
|
793
|
|
|
$
|
537
|
|
|
$
|
48
|
|
|
$
|
254
|
|
|
$
|
(194)
|
|
|
|
$
|
5,564
|
|
Cost of sales and
other expenses
|
(1,267)
|
|
|
(1,349)
|
|
|
(620)
|
|
|
(251)
|
|
|
(35)
|
|
|
(199)
|
|
|
159
|
|
|
|
(3,562)
|
|
Depreciation and
amortization
|
(329)
|
|
|
(252)
|
|
|
(26)
|
|
|
(73)
|
|
|
(19)
|
|
|
(21)
|
|
|
(8)
|
|
|
|
(728)
|
|
Impairment
loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(71)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(71)
|
|
Equity earnings,
before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
3
|
|
|
—
|
|
|
|
21
|
|
Other income,
net
|
33
|
|
|
20
|
|
|
5
|
|
|
187
|
|
|
1
|
|
|
1
|
|
|
13
|
|
|
|
260
|
|
Income (loss) before
interest and tax (1)
|
552
|
|
|
430
|
|
|
152
|
|
|
329
|
|
|
13
|
|
|
38
|
|
|
(30)
|
|
|
|
1,484
|
|
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 of income tax
|
—
|
|
|
—
|
|
|
1
|
|
|
(9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(8)
|
|
(Earnings) losses
attributable to noncontrolling interests
|
(6)
|
|
|
—
|
|
|
(13)
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
|
1
|
|
Earnings
(losses)
|
$
|
304
|
|
|
$
|
261
|
|
|
$
|
92
|
|
|
$
|
39
|
|
|
$
|
34
|
|
|
$
|
28
|
|
|
$
|
(58)
|
|
|
|
$
|
700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2016
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
SDG&E
|
|
SoCalGas
|
|
Sempra
South
American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra
LNG &
Midstream
|
|
Consolidating
Adjustments,
Parent &
Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,983
|
|
|
$
|
1,650
|
|
|
$
|
785
|
|
|
$
|
285
|
|
|
$
|
13
|
|
|
$
|
220
|
|
|
$
|
(158)
|
|
|
|
$
|
4,778
|
|
Cost of sales and
other expenses
|
(1,260)
|
|
|
(1,111)
|
|
|
(635)
|
|
|
(168)
|
|
|
(26)
|
|
|
(490)
|
|
|
128
|
|
|
|
(3,562)
|
|
Depreciation and
amortization
|
(317)
|
|
|
(234)
|
|
|
(27)
|
|
|
(32)
|
|
|
(3)
|
|
|
(25)
|
|
|
(4)
|
|
|
|
(642)
|
|
Impairment
losses
|
—
|
|
|
(22)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(22)
|
|
Equity earnings
(losses), before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
(26)
|
|
|
—
|
|
|
|
(8)
|
|
Other income
(expense), net
|
27
|
|
|
16
|
|
|
7
|
|
|
(4)
|
|
|
1
|
|
|
1
|
|
|
24
|
|
|
|
72
|
|
Income (loss) before
interest and tax (1)
|
433
|
|
|
299
|
|
|
130
|
|
|
81
|
|
|
3
|
|
|
(320)
|
|
|
(10)
|
|
|
|
616
|
|
Net interest
(expense) income (2)
|
(96)
|
|
|
(47)
|
|
|
(10)
|
|
|
(5)
|
|
|
1
|
|
|
11
|
|
|
(128)
|
|
|
|
(274)
|
|
Income tax (expense)
benefit (3)
|
(113)
|
|
|
(54)
|
|
|
(29)
|
|
|
(28)
|
|
|
22
|
|
|
128
|
|
|
72
|
|
|
|
(2)
|
|
Equity earnings, net
of income tax
|
—
|
|
|
—
|
|
|
2
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
50
|
|
Losses (earnings)
attributable to noncontrolling interests
|
12
|
|
|
—
|
|
|
(12)
|
|
|
(21)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(21)
|
|
Earnings (losses)
(3)
|
$
|
236
|
|
|
$
|
198
|
|
|
$
|
81
|
|
|
$
|
75
|
|
|
$
|
26
|
|
|
$
|
(181)
|
|
|
$
|
(66)
|
|
|
|
$
|
369
|
|
|
|
(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 of
subsidiary.
|
(3)
|
As adjusted for the
adoption of ASU 2016-09 as of January 1, 2016.
|
View original content with
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SOURCE Sempra Energy