SAN DIEGO, May 5, 2021 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today announced first-quarter 2021 earnings of
$874 million, or $2.87 per diluted share, compared to
first-quarter 2020 earnings of $760
million, or $2.53 per diluted
share. On an adjusted basis, the company's first-quarter 2021
earnings were $900 million, or
$2.95 per diluted share, compared to
$741 million, or $2.47 per diluted share, in the first quarter of
2020.
"Over the last several years, we have narrowed our market
focus, expanded investment in our utilities and worked hard to
improve safety and operating results," said Jeffrey W. Martin, chairman and CEO of Sempra
Energy. "Taken together, these activities also support our
financial commitments and, in part, are reflected in the strength
of our first quarter results. The company is well positioned to
deliver another strong year of financial performance."
The reported financial results reflect certain significant items
as described on an after-tax basis in the following table of GAAP
(generally accepted accounting principles in the United States of America) earnings,
reconciled to adjusted earnings, for the first quarter of 2021 and
2020.
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Three months
ended
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March
31,
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(Dollars, except
EPS, and shares in millions)
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2021
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2020
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(Unaudited)
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GAAP
Earnings
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$
874
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$
760
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Impact from Foreign
Currency and Inflation and Associated Undesignated
Derivatives(1)
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(3)
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(150)
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Net Unrealized Losses
(Gains) on Commodity Derivatives(1)
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29
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(41)
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Impacts Associated
with Aliso Canyon Litigation
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-
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72
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Losses from
Investment in RBS Sempra Commodities LLP
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-
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100
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Adjusted
Earnings(2)
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$
900
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$
741
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Diluted
Weighted-Average Common Shares Outstanding
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308
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314
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GAAP
EPS(3),(4)
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$
2.87
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$
2.53
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Diluted
Weighted-Average Common Shares Outstanding
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308
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314
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Adjusted
EPS(2),(3),(4)
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$
2.95
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$
2.47
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1)
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Q1-2020 Adjusted
Earnings and Adjusted earnings-per-common-share (EPS) have been
updated to exclude this item to conform to current year
presentation.
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2)
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Represents a non-GAAP
financial measure. Q1-2020 Adjusted Earnings and Adjusted EPS have
been updated to exclude additional items to conform to current year
presentation. See Table A for information regarding non-GAAP
financial measures and descriptions of adjustments.
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3)
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To calculate Q1-2021
GAAP EPS and Adjusted EPS, preferred dividends of $10 million are
added back to GAAP Earnings and Adjusted Earnings because of the
dilutive effect of Series B mandatory convertible preferred stock
in the quarter.
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4)
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To calculate Q1-2020
GAAP EPS and Adjusted EPS, preferred dividends of $36 million are
added back to GAAP Earnings and Adjusted Earnings because of the
dilutive effect of Series A and Series B mandatory convertible
preferred stock in the quarter.
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Building Resiliency in California Utilities
Sempra Energy's California
utilities, San Diego Gas & Electric Co. (SDG&E) and
Southern California Gas Co. (SoCalGas), both recently announced
net-zero emissions goals, contributing to Sempra Energy's overall
efforts to help shape a more sustainable future. In March 2021, SoCalGas announced its goal to
achieve net-zero greenhouse gas (GHG) emissions in its operations
and delivery of energy by 2045. With this commitment, SoCalGas
becomes the largest gas distribution utility in North America to set a net-zero GHG emissions
target across all three scopes.
Building on the sustainability strategy SDG&E released last
October and its goal to reach net-zero GHG emissions by 2045, the
utility announced it is developing two hydrogen pilot projects, it
is nearing completion of an additional battery storage facility and
it has begun construction on another, while also launching a
vehicle-to-grid pilot program featuring electric school buses,
among other efforts.
Additionally, SDG&E and SoCalGas recently received a
proposed decision for attrition rates for 2022 and 2023, providing
improved visibility into funding in support of safety and
reliability programs. SDG&E's attrition rate would be 3.92% for
2022 and 3.7% for 2023, and SoCalGas' attrition rate would be 4.53%
for 2022 and 3.97% for 2023.
Continuing Growth at Oncor
In Texas, Oncor Electric
Delivery Company LLC (Oncor) continues to play a key role in
meeting the growing energy needs of Texas' economy through the execution of its
2021-2025 capital plan. In the first quarter of 2021, Oncor
continued to see strong organic growth and connected approximately
19,000 new premises, compared to approximately 18,000 in the first
quarter of 2020.
Making Progress on Sempra Infrastructure
Last month, Sempra Energy announced that it has entered into a
definitive agreement to sell a non-controlling 20% interest in
Sempra Infrastructure to KKR for $3.37
billion in cash, subject to adjustments. The transaction
values Sempra Infrastructure at approximately $25.2 billion, including expected asset-related
debt at closing of $8.37 billion.
Proceeds from the sale will be used to help fund growth in Sempra
Energy's U.S. utilities and to further strengthen the company's
balance sheet. The sale is expected to be accretive to earnings.
The transaction is forecasted to be completed in mid-2021, subject
to customary closing conditions, including consents from third
parties and regulators.
On April 26, 2021, Sempra Energy
launched its exchange offer to acquire all the outstanding shares
of Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) not
owned by Sempra Energy. As part of the exchange offer, Sempra
Energy intends to list its shares of common stock on the Mexican
stock exchange (Bolsa Mexicana de Valores, S.A.B de C.V.). The
exchange offer is expected to be completed by the end of May.
Additionally, IEnova continues to advance its development
projects in Mexico with a focus on
improving the country's energy security. In March, IEnova achieved
commercial operations on its Border Solar project, a 150-megawatt
solar facility in northern Mexico,
and completed the acquisition of the remaining 50% equity interest
in Energía Sierra Juárez, a cross-border wind generation complex in
Baja California, Mexico.
Earnings Guidance
Sempra Energy is updating its full-year 2021 GAAP EPS guidance
range to $7.42 to $8.02 and affirming its full-year 2021 adjusted
EPS guidance range of $7.50 to
$8.10.
Non-GAAP Financial Measures
Non-GAAP financial measures include Sempra Energy's adjusted
earnings, adjusted EPS and adjusted EPS guidance range. See Table A
for additional information regarding these non-GAAP financial
measures.
Internet Broadcast
Sempra 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 6657833.
About Sempra Energy
Sempra Energy's mission is to be North
America's premier energy infrastructure company. The Sempra
Energy family of companies have more than 19,000 talented employees
who deliver energy with purpose to over 36 million consumers. With
more than $66 billion in total assets
at the end of 2020, the San
Diego-based company is the owner of one of the largest
energy networks in North America
serving some of the world's leading economies. The company is
helping to advance the global energy transition by enabling the
delivery of lower-carbon energy solutions in each market it serves,
including California, Texas, Mexico
and the LNG export market. Sempra Energy is consistently recognized
as a leader in sustainable business practices and for its
long-standing commitment to building a high-performing culture
including safety, workforce development and training, and diversity
and inclusion. Sempra Energy is the only North American utility
sector company included on the Dow Jones Sustainability World Index
and was also named one of the "World's Most Admired Companies" for
2021 by Fortune Magazine. For additional information about Sempra
Energy, please visit Sempra Energy's website at www.sempra.com and
on Twitter @SempraEnergy.
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on assumptions with respect to the future,
involve risks and uncertainties, and are not guarantees. Future
results may differ materially from those expressed in any
forward-looking statements. These forward-looking statements
represent our estimates and assumptions only as of the date of this
press release. We assume no obligation to update or revise any
forward-looking statement as a result of new information, future
events or other factors.
In this press release, forward-looking statements can be
identified by words such as "believes," "expects," "anticipates,"
"plans," "estimates," "projects," "forecasts," "should," "could,"
"would," "will," "confident," "may," "can," "potential,"
"possible," "proposed," "in process," "under construction," "in
development," "target," "outlook," "maintain," "continue," or
similar expressions, or when we discuss our guidance, priorities,
strategy, goals, vision, mission, opportunities, projections,
intentions or expectations.
Factors, among others, that could cause actual results and
events to differ materially from those described in any
forward-looking statements include risks and uncertainties relating
to: California wildfires,
including the risks that we may be found liable for damages
regardless of fault and that we may not be able to recover costs
from insurance, the wildfire fund established by California
Assembly Bill 1054 or in rates from customers; decisions,
investigations, regulations, issuances or revocations of permits
and other authorizations, renewals of franchises, and other actions
by (i) the Comisión Federal de Electricidad, California Public
Utilities Commission (CPUC), U.S. Department of Energy, Public
Utility Commission of Texas, and
other regulatory and governmental bodies and (ii) states, counties,
cities and other jurisdictions in the U.S., Mexico and other countries in which we do
business; the success of business development efforts, construction
projects and major acquisitions and divestitures, including risks
in (i) the ability to make a final investment decision, (ii)
completing construction projects or other transactions on schedule
and budget, (iii) the ability to realize anticipated benefits from
any of these efforts if completed, and (iv) obtaining the consent
of partners or other third parties; the resolution of civil and
criminal litigation, regulatory inquiries, investigations and
proceedings, and arbitrations, including, among others, those
related to the natural gas leak at Southern California Gas
Company's (SoCalGas) Aliso Canyon natural gas storage facility; the
impact of the COVID-19 pandemic on our capital projects, regulatory
approval processes, supply chain, liquidity and execution of
operations; actions by credit rating agencies to downgrade our
credit ratings or to place those ratings on negative outlook and
our ability to borrow on favorable terms and meet our substantial
debt service obligations; actions to reduce or eliminate reliance
on natural gas, including any deterioration of or increased
uncertainty in the political or regulatory environment for local
natural gas distribution companies operating in California, and the impact of volatility of
oil prices on our businesses and development projects; weather,
natural disasters, pandemics, accidents, equipment failures,
explosions, acts of terrorism, computer system outages and other
events that disrupt our operations, damage our facilities and
systems, cause the release of harmful materials, cause fires and
subject us to liability for property damage or personal injuries,
fines and penalties, some of which may not be covered by insurance,
may be disputed by insurers or may otherwise not be recoverable
through regulatory mechanisms or may impact our ability to obtain
satisfactory levels of affordable insurance; the availability of
electric power and natural gas and natural gas storage capacity,
including disruptions caused by failures in the transmission grid,
limitations on the withdrawal of natural gas from storage
facilities, and equipment failures; cybersecurity threats to the
energy grid, the storage and pipeline infrastructure, the
information and systems used to operate our businesses, and the
confidentiality of our proprietary information and the personal
information of our customers and employees; expropriation of
assets, failure of foreign governments and state-owned entities to
honor their contracts, and property disputes; the impact at San
Diego Gas & Electric Company (SDG&E) on competitive
customer rates and reliability due to the growth in distributed and
local power generation, including from departing retail load
resulting from customers transferring to Direct Access and
Community Choice Aggregation, and the risk of nonrecovery for
stranded assets and contractual obligations; Oncor Electric
Delivery Company LLC's (Oncor) ability to eliminate or reduce its
quarterly dividends due to regulatory and governance requirements
and commitments, including by actions of Oncor's independent
directors or a minority member director; volatility in foreign
currency exchange, inflation and interest rates and commodity
prices and our ability to effectively hedge these risks; changes in
tax and trade policies, laws and regulations, including tariffs and
revisions to international trade agreements that may increase our
costs, reduce our competitiveness, or impair our ability to resolve
trade disputes; and other uncertainties, some of which may be
difficult to predict and are beyond our control.
These risks and uncertainties are further discussed in the
reports that Sempra Energy has filed with the U.S. Securities and
Exchange Commission (SEC). These reports are available through the
EDGAR system free-of-charge on the SEC's website, www.sec.gov, and
on 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 SoCalGas, and Sempra North American Infrastructure,
Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova
are not regulated by the CPUC.
None of the website references in this press release are
active hyperlinks, and the information contained on, or that can be
accessed through, any such website is not, and shall not be deemed
to be, part of this document.
SEMPRA
ENERGY
|
Table
A
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
(Dollars in
millions, except per share amounts; shares in
thousands)
|
|
|
|
|
Three months ended
March 31,
|
|
2021
|
|
2020
|
|
(unaudited)
|
REVENUES
|
|
|
|
Utilities
|
$
|
2,845
|
|
|
$
|
2,665
|
|
Energy-related
businesses
|
414
|
|
|
364
|
|
Total
revenues
|
3,259
|
|
|
3,029
|
|
|
|
|
|
EXPENSES AND OTHER
INCOME
|
|
|
|
Utilities:
|
|
|
|
Cost of natural
gas
|
(349)
|
|
|
(337)
|
|
Cost of electric fuel
and purchased power
|
(232)
|
|
|
(229)
|
|
Energy-related
businesses cost of sales
|
(109)
|
|
|
(59)
|
|
Operation and
maintenance
|
(1,001)
|
|
|
(851)
|
|
Aliso Canyon
litigation and regulatory matters
|
—
|
|
|
(100)
|
|
Depreciation and
amortization
|
(442)
|
|
|
(412)
|
|
Franchise fees and
other taxes
|
(153)
|
|
|
(137)
|
|
Other income
(expense), net
|
35
|
|
|
(254)
|
|
Interest
income
|
19
|
|
|
27
|
|
Interest
expense
|
(259)
|
|
|
(280)
|
|
Income from
continuing operations before income taxes and equity
earnings
|
768
|
|
|
397
|
|
Income tax (expense)
benefit
|
(158)
|
|
|
207
|
|
Equity
earnings
|
318
|
|
|
263
|
|
Income from
continuing operations, net of income tax
|
928
|
|
|
867
|
|
Income from
discontinued operations, net of income tax
|
—
|
|
|
80
|
|
Net income
|
928
|
|
|
947
|
|
Earnings attributable
to noncontrolling interests
|
(33)
|
|
|
(151)
|
|
Preferred
dividends
|
(21)
|
|
|
(36)
|
|
|
|
|
|
Earnings attributable
to common shares
|
$
|
874
|
|
|
$
|
760
|
|
|
|
|
|
Basic earnings per
common share (EPS):
|
|
|
|
Earnings
|
$
|
2.91
|
|
|
$
|
2.60
|
|
Weighted-average
common shares outstanding
|
300,905
|
|
|
292,790
|
|
|
|
|
|
Diluted
EPS:
|
|
|
|
Earnings
|
$
|
2.87
|
|
|
$
|
2.53
|
|
Weighted-average
common shares outstanding
|
308,458
|
|
|
313,925
|
|
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 2021 and 2020 as follows:
Three months ended March 31,
2021:
- $3 million impact from foreign
currency and inflation and associated undesignated derivatives
- $(29) million net unrealized
losses on commodity derivatives
Three months ended March 31,
2020:
- $150 million impact from foreign
currency and inflation and associated undesignated derivatives
- $41 million net unrealized gains
on commodity derivatives
- $(72) million from impacts
associated with Aliso Canyon natural gas storage facility
litigation at Southern California Gas Company (SoCalGas)
- $(100) million equity losses 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
Sempra Energy Adjusted Earnings and Adjusted EPS are non-GAAP
financial measures (GAAP represents generally accepted accounting
principles in the United States of
America). These non-GAAP financial measures exclude
significant items that are generally not related to our ongoing
business activities and/or are infrequent in nature. These non-GAAP
financial measures also exclude the impact from foreign currency
and inflation effects and associated undesignated derivatives and
unrealized gains and losses on commodity derivatives, which we
expect to occur in future periods, and which can vary significantly
from one period to the next. Exclusion of these items is useful to
management and investors because it provides a meaningful
comparison of the performance of Sempra 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 and GAAP EPS, which we consider to be the most directly
comparable financial measures calculated in accordance with
GAAP.
SEMPRA
ENERGY
|
Table A
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
ADJUSTED EARNINGS TO GAAP EARNINGS
|
(Dollars in
millions, except per share amounts; shares in
thousands)
|
|
|
|
Pretax
amount
|
Income tax
benefit(1)
|
Non-
controlling
interests
|
Earnings
|
|
Pretax
amount
|
Income tax
(benefit)
expense(1)
|
Non-
controlling
interests
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2021
|
|
Three months ended
March 31, 2020
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
874
|
|
|
|
|
|
$
|
760
|
|
Excluded
items:
|
|
|
|
|
|
|
|
|
|
Impact from foreign currency and
inflation and associated
undesignated derivatives
|
$
|
30
|
|
$
|
(42)
|
|
$
|
9
|
|
(3)
|
|
|
$
|
95
|
|
$
|
(353)
|
|
$
|
108
|
|
(150)
|
|
Net
unrealized losses (gains) on commodity derivatives
|
46
|
|
(13)
|
|
(4)
|
|
29
|
|
|
(57)
|
|
16
|
|
—
|
|
(41)
|
|
Impacts associated with Aliso
Canyon litigation
|
—
|
|
—
|
|
—
|
|
—
|
|
|
100
|
|
(28)
|
|
—
|
|
72
|
|
Losses from investment in RBS
Sempra Commodities LLP
|
—
|
|
—
|
|
—
|
|
—
|
|
|
100
|
|
—
|
|
—
|
|
100
|
|
Sempra Energy
Adjusted Earnings(2)
|
|
|
|
$
|
900
|
|
|
|
|
|
$
|
741
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS:
|
|
|
|
|
|
|
|
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
874
|
|
|
|
|
|
$
|
760
|
|
Add
back dividends for dilutive series A preferred stock
|
|
|
|
—
|
|
|
|
|
|
26
|
|
Add
back dividends for dilutive series B preferred stock
|
|
|
|
10
|
|
|
|
|
|
10
|
|
Sempra Energy GAAP Earnings for
GAAP EPS
|
|
|
|
$
|
884
|
|
|
|
|
|
$
|
796
|
|
Weighted-average common shares
outstanding, diluted
|
|
|
|
308,458
|
|
|
|
|
|
313,925
|
|
Sempra Energy GAAP EPS
|
|
|
|
$
|
2.87
|
|
|
|
|
|
$
|
2.53
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra Energy Adjusted
Earnings(2)
|
|
|
|
$
|
900
|
|
|
|
|
|
$
|
741
|
|
Add
back dividends for dilutive series A preferred stock
|
|
|
|
—
|
|
|
|
|
|
26
|
|
Add
back dividends for dilutive series B preferred stock
|
|
|
|
10
|
|
|
|
|
|
10
|
|
Sempra Energy Adjusted Earnings for
Adjusted EPS(2)
|
|
|
|
$
|
910
|
|
|
|
|
|
$
|
777
|
|
Weighted-average common shares
outstanding, diluted
|
|
|
|
308,458
|
|
|
|
|
|
313,925
|
|
Sempra Energy Adjusted
EPS(2)
|
|
|
|
$
|
2.95
|
|
|
|
|
|
$
|
2.47
|
|
|
|
(1)
|
Income taxes were
primarily calculated based on applicable statutory tax rates. We
did not record an income tax benefit for the equity losses from our
investment in RBS Sempra Commodities LLP because, even though a
portion of the liabilities may be deductible under United Kingdom
tax law, it is not probable that the deduction will reduce United
Kingdom taxes.
|
(2)
|
Adjusted Earnings,
Adjusted Earnings for Adjusted EPS and Adjusted EPS have been
updated to reflect impact from foreign currency and inflation and
associated undesignated derivatives and net unrealized gains on
commodity derivatives for the three months ended March 31,
2020.
|
SEMPRA ENERGY
Table A
(Continued)
RECONCILIATION OF SEMPRA ENERGY 2021 ADJUSTED EPS GUIDANCE
RANGE TO SEMPRA ENERGY 2021 GAAP EPS GUIDANCE RANGE
(Unaudited)
Sempra Energy 2021 Adjusted EPS Guidance Range of $7.50 to $8.10
excludes items (after the effects of income taxes and, if
applicable, noncontrolling interests) as follows:
- $3 million impact from foreign
currency and inflation and associated undesignated derivatives for
the three months ended March 31,
2021
- $(29) million net unrealized
losses on commodity derivatives for the three months ended
March 31, 2021
Sempra Energy 2021 Adjusted EPS Guidance is a non-GAAP financial
measure. This non-GAAP financial measure excludes the impact from
foreign currency and inflation and associated undesignated
derivatives and unrealized gains and losses on commodity
derivatives, which we expect to occur in future periods, and which
can vary significantly from one period to the next. Exclusion of
these items is useful to management and investors because it
provides a meaningful comparison of the performance of Sempra
Energy's business operations to prior and future periods. Sempra
Energy 2021 Adjusted EPS Guidance Range should not be considered an
alternative to Sempra Energy 2021 GAAP EPS Guidance Range. Non-GAAP
financial measures are supplementary information that should be
considered in addition to, but not as a substitute for, the
information prepared in accordance with GAAP. The table below
reconciles Sempra Energy 2021 Adjusted EPS Guidance Range to Sempra
Energy 2021 GAAP EPS Guidance Range, which we consider to be the
most directly comparable financial measure calculated in accordance
with GAAP.
|
RECONCILIATION OF
ADJUSTED EPS GUIDANCE RANGE TO GAAP EPS GUIDANCE
RANGE
|
|
|
|
|
Full-Year
2021
|
|
Sempra Energy GAAP
EPS Guidance Range(1)
|
$
|
7.42
|
|
to
|
$
|
8.02
|
|
|
Excluded
items:
|
|
|
|
|
Impact from foreign currency and
inflation and associated undesignated derivatives
|
(0.01)
|
|
|
(0.01)
|
|
|
Net
unrealized losses on commodity derivatives
|
0.09
|
|
|
0.09
|
|
|
Sempra Energy
Adjusted EPS Guidance Range
|
$
|
7.50
|
|
to
|
$
|
8.10
|
|
|
Weighted-average
common shares outstanding, diluted
(millions)(2)
|
|
|
308
|
|
|
|
|
(1)
|
Sempra Energy's
prior GAAP EPS Guidance Range for full-year 2021 of $7.50 to $8.10
has been updated to reflect the impact from foreign currency and
inflation and undesignated derivatives and net unrealized losses on
commodity derivatives for the three months ended March 31,
2021.
|
(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 2021. If such mandatory convertible
preferred stock were dilutive for the full year, the 2021 GAAP EPS
Guidance Range would differ from the range presented
above.
|
SEMPRA
ENERGY
|
Table
B
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
millions)
|
|
|
|
|
March 31,
2021
|
|
December
31,
2020(1)
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
725
|
|
|
$
|
960
|
|
Restricted
cash
|
38
|
|
|
22
|
|
Accounts receivable –
trade, net
|
1,595
|
|
|
1,578
|
|
Accounts receivable –
other, net
|
393
|
|
|
403
|
|
Due from
unconsolidated affiliates
|
26
|
|
|
20
|
|
Income taxes
receivable
|
78
|
|
|
113
|
|
Inventories
|
274
|
|
|
308
|
|
Regulatory
assets
|
183
|
|
|
190
|
|
Greenhouse gas
allowances
|
555
|
|
|
553
|
|
Other current
assets
|
333
|
|
|
364
|
|
Total current
assets
|
4,200
|
|
|
4,511
|
|
|
|
|
|
Other
assets:
|
|
|
|
Restricted
cash
|
15
|
|
|
3
|
|
Due from
unconsolidated affiliates
|
674
|
|
|
780
|
|
Regulatory
assets
|
2,010
|
|
|
1,822
|
|
Nuclear
decommissioning trusts
|
1,014
|
|
|
1,019
|
|
Investment in Oncor
Holdings
|
12,553
|
|
|
12,440
|
|
Other
investments
|
1,505
|
|
|
1,388
|
|
Goodwill
|
1,602
|
|
|
1,602
|
|
Other intangible
assets
|
397
|
|
|
202
|
|
Dedicated assets in
support of certain benefit plans
|
494
|
|
|
512
|
|
Insurance receivable
for Aliso Canyon costs
|
414
|
|
|
445
|
|
Deferred income
taxes
|
132
|
|
|
136
|
|
Greenhouse gas
allowances
|
181
|
|
|
101
|
|
Right-of-use assets –
operating leases
|
528
|
|
|
543
|
|
Wildfire
fund
|
356
|
|
|
363
|
|
Other long-term
assets
|
765
|
|
|
753
|
|
Total other
assets
|
22,640
|
|
|
22,109
|
|
Property, plant and
equipment, net
|
40,981
|
|
|
40,003
|
|
Total
assets
|
$
|
67,821
|
|
|
$
|
66,623
|
|
|
|
(1)
|
Derived from
audited financial statements.
|
SEMPRA
ENERGY
|
Table B
(Continued)
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
millions)
|
|
|
|
|
March 31,
2021
|
|
December
31,
2020(1)
|
|
(unaudited)
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
1,817
|
|
|
$
|
885
|
|
Accounts payable –
trade
|
1,354
|
|
|
1,359
|
|
Accounts payable –
other
|
141
|
|
|
154
|
|
Due to unconsolidated
affiliates
|
42
|
|
|
45
|
|
Dividends and
interest payable
|
595
|
|
|
551
|
|
Accrued compensation
and benefits
|
273
|
|
|
446
|
|
Regulatory
liabilities
|
437
|
|
|
140
|
|
Current portion of
long-term debt and finance leases
|
505
|
|
|
1,540
|
|
Reserve for Aliso
Canyon costs
|
152
|
|
|
150
|
|
Greenhouse gas
obligations
|
555
|
|
|
553
|
|
Other current
liabilities
|
1,004
|
|
|
1,016
|
|
Total current
liabilities
|
6,875
|
|
|
6,839
|
|
|
|
|
|
Long-term debt and
finance leases
|
22,023
|
|
|
21,781
|
|
|
|
|
|
Deferred credits and
other liabilities:
|
|
|
|
Due to unconsolidated
affiliates
|
258
|
|
|
234
|
|
Pension and other
postretirement benefit plan obligations, net of plan
assets
|
1,069
|
|
|
1,059
|
|
Deferred income
taxes
|
3,114
|
|
|
2,871
|
|
Regulatory
liabilities
|
3,333
|
|
|
3,372
|
|
Reserve for Aliso
Canyon costs
|
285
|
|
|
301
|
|
Asset retirement
obligations
|
3,121
|
|
|
3,113
|
|
Greenhouse gas
obligations
|
41
|
|
|
—
|
|
Deferred credits and
other
|
2,094
|
|
|
2,119
|
|
Total deferred
credits and other liabilities
|
13,315
|
|
|
13,069
|
|
Equity:
|
|
|
|
Sempra Energy
shareholders' equity
|
23,999
|
|
|
23,373
|
|
Preferred stock of
subsidiary
|
20
|
|
|
20
|
|
Other noncontrolling
interests
|
1,589
|
|
|
1,541
|
|
Total
equity
|
25,608
|
|
|
24,934
|
|
Total liabilities and
equity
|
$
|
67,821
|
|
|
$
|
66,623
|
|
|
|
(1)
|
Derived from
audited financial statements.
|
SEMPRA
ENERGY
|
Table
C
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in
millions)
|
|
|
|
|
Three months ended
March 31,
|
|
2021
|
|
2020
|
|
(unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
|
928
|
|
|
$
|
947
|
|
Less: Income from
discontinued operations, net of income tax
|
—
|
|
|
(80)
|
|
Income from
continuing operations, net of income tax
|
928
|
|
|
867
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
446
|
|
|
175
|
|
Net change in working
capital components
|
84
|
|
|
217
|
|
Distributions from
investments
|
208
|
|
|
73
|
|
Insurance receivable
for Aliso Canyon costs
|
31
|
|
|
(172)
|
|
Changes in other
noncurrent assets and liabilities, net
|
(195)
|
|
|
90
|
|
Net cash provided by
continuing operations
|
1,502
|
|
|
1,250
|
|
Net cash provided by
discontinued operations
|
—
|
|
|
68
|
|
Net cash provided
by operating activities
|
1,502
|
|
|
1,318
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Expenditures for
property, plant and equipment
|
(1,181)
|
|
|
(1,010)
|
|
Expenditures for
investments and acquisitions
|
(115)
|
|
|
(86)
|
|
Proceeds from sale of
assets
|
—
|
|
|
5
|
|
Purchases of nuclear
decommissioning trust assets
|
(288)
|
|
|
(552)
|
|
Proceeds from sales
of nuclear decommissioning trust assets
|
288
|
|
|
552
|
|
Advances to
unconsolidated affiliates
|
(8)
|
|
|
(30)
|
|
Intercompany
activities with discontinued operations, net
|
—
|
|
|
(3)
|
|
Other
|
3
|
|
|
8
|
|
Net cash used in
continuing operations
|
(1,301)
|
|
|
(1,116)
|
|
Net cash used in
discontinued operations
|
—
|
|
|
(65)
|
|
Net cash used in
investing activities
|
(1,301)
|
|
|
(1,181)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Common dividends
paid
|
(301)
|
|
|
(269)
|
|
Preferred dividends
paid
|
(36)
|
|
|
(36)
|
|
Issuances of common
stock
|
—
|
|
|
11
|
|
Repurchases of common
stock
|
(37)
|
|
|
(57)
|
|
Issuances of debt
(maturities greater than 90 days)
|
102
|
|
|
1,619
|
|
Payments on debt
(maturities greater than 90 days) and finance leases
|
(1,093)
|
|
|
(1,433)
|
|
Increase in
short-term debt, net
|
932
|
|
|
2,127
|
|
Advances from
unconsolidated affiliates
|
20
|
|
|
64
|
|
Proceeds from sale of
noncontrolling interests
|
7
|
|
|
—
|
|
Purchases of
noncontrolling interests
|
—
|
|
|
(16)
|
|
Intercompany
activities with discontinued operations, net
|
—
|
|
|
(2)
|
|
Other
|
(1)
|
|
|
(5)
|
|
Net cash (used in)
provided by continuing operations
|
(407)
|
|
|
2,003
|
|
Net cash provided by
discontinued operations
|
—
|
|
|
111
|
|
Net cash (used in)
provided by financing activities
|
(407)
|
|
|
2,114
|
|
|
|
|
|
Effect of exchange
rate changes in continuing operations
|
(1)
|
|
|
(6)
|
|
Effect of exchange
rate changes in discontinued operations
|
—
|
|
|
(8)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(1)
|
|
|
(14)
|
|
|
|
|
|
(Decrease) increase
in cash, cash equivalents and restricted cash, including
discontinued operations
|
(207)
|
|
|
2,237
|
|
Cash, cash
equivalents and restricted cash, including discontinued operations,
January 1
|
985
|
|
|
217
|
|
Cash, cash
equivalents and restricted cash, including discontinued operations,
March 31
|
$
|
778
|
|
|
$
|
2,454
|
|
SEMPRA
ENERGY
|
Table
D
|
|
SEGMENT EARNINGS
(LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND
ACQUISITIONS
|
(Dollars in
millions)
|
|
|
|
|
Three months ended
March 31,
|
|
2021
|
|
2020
|
|
(unaudited)
|
Earnings (Losses)
Attributable to Common Shares
|
|
|
|
SDG&E
|
$
|
212
|
|
|
$
|
262
|
|
SoCalGas
|
407
|
|
|
303
|
|
Sempra Texas
Utilities
|
135
|
|
|
105
|
|
Sempra
Mexico
|
57
|
|
|
191
|
|
Sempra LNG
|
146
|
|
|
75
|
|
Parent and
other
|
(83)
|
|
|
(248)
|
|
Discontinued
operations
|
—
|
|
|
72
|
|
Total
|
$
|
874
|
|
|
$
|
760
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
2021
|
|
2020
|
|
(unaudited)
|
Capital
Expenditures, Investments and Acquisitions
|
|
|
|
SDG&E
|
$
|
555
|
|
|
$
|
402
|
|
SoCalGas
|
459
|
|
|
388
|
|
Sempra Texas
Utilities
|
50
|
|
|
86
|
|
Sempra
Mexico
|
142
|
|
|
170
|
|
Sempra LNG
|
89
|
|
|
47
|
|
Parent and
other
|
1
|
|
|
3
|
|
Total
|
$
|
1,296
|
|
|
$
|
1,096
|
|
SEMPRA
ENERGY
|
Table
E
|
|
OTHER OPERATING
STATISTICS
|
|
Three months ended
March 31,
|
|
2021
|
|
2020
|
|
(unaudited)
|
UTILITIES
|
|
|
|
SDG&E and
SoCalGas
|
|
|
|
Gas
sales (Bcf)(1)
|
127
|
|
|
129
|
|
Transportation
(Bcf)(1)
|
137
|
|
|
148
|
|
Total deliveries
(Bcf)(1)
|
264
|
|
|
277
|
|
|
|
|
|
Total gas customer
meters (thousands)
|
6,975
|
|
|
6,933
|
|
|
|
|
|
SDG&E
|
|
|
|
Electric sales (millions of
kWhs)(1)
|
3,289
|
|
|
3,460
|
|
Direct Access and
Community Choice Aggregation (millions of kWhs)
|
813
|
|
|
769
|
|
Total deliveries (millions of
kWhs)(1)
|
4,102
|
|
|
4,229
|
|
|
|
|
|
Total electric
customer meters (thousands)
|
1,486
|
|
|
1,475
|
|
|
|
|
|
Oncor(2)
|
|
|
|
Total deliveries
(millions of kWhs)
|
30,677
|
|
|
30,420
|
|
Total electric
customer meters (thousands)
|
3,781
|
|
|
3,703
|
|
|
|
|
|
Ecogas
|
|
|
|
Natural gas sales
(Bcf)
|
1
|
|
|
1
|
|
Natural gas customer
meters (thousands)
|
136
|
|
|
135
|
|
|
|
|
|
|
|
|
|
ENERGY-RELATED
BUSINESSES
|
|
|
|
Power generated and
sold
|
|
|
|
Sempra
Mexico
|
|
|
|
Termoeléctrica de
Mexicali (TdM) (millions of kWhs)
|
845
|
|
|
826
|
|
Wind and solar (millions of
kWhs)(3)
|
543
|
|
|
422
|
|
|
|
(1)
|
Include
intercompany sales.
|
(2)
|
Includes 100% of
the electric deliveries and customer meters of Oncor Electric
Delivery Company LLC (Oncor), in which we hold an indirect 80.25%
interest through our investment in Oncor Electric Delivery Holdings
Company LLC.
|
(3)
|
Includes 50% of
the total power generated and sold at the Energía Sierra Juárez
wind power generation facility through March 19, 2021. As of March
19, 2021, ESJ became a wholly owned, consolidated subsidiary of
IEnova.
|
SEMPRA
ENERGY
|
Table F
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
OPERATIONS DATA BY SEGMENT
|
|
(Dollars in
millions)
|
|
Three months ended
March 31, 2021
|
SDG&E
|
|
SoCalGas
|
|
Sempra
Texas
Utilities
|
|
Sempra
Mexico
|
|
Sempra LNG
|
|
Consolidating
Adjustments,
Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,337
|
|
|
$
|
1,508
|
|
|
$
|
—
|
|
|
$
|
367
|
|
|
$
|
196
|
|
|
$
|
(149)
|
|
|
|
$
|
3,259
|
|
Cost of sales and
other expenses
|
(801)
|
|
|
(834)
|
|
|
(2)
|
|
|
(195)
|
|
|
(139)
|
|
|
127
|
|
|
|
(1,844)
|
|
Depreciation and
amortization
|
(213)
|
|
|
(173)
|
|
|
—
|
|
|
(51)
|
|
|
(3)
|
|
|
(2)
|
|
|
|
(442)
|
|
Other income
(expense), net
|
35
|
|
|
39
|
|
|
—
|
|
|
(43)
|
|
|
—
|
|
|
4
|
|
|
|
35
|
|
Income (loss) before
interest and tax(1)
|
358
|
|
|
540
|
|
|
(2)
|
|
|
78
|
|
|
54
|
|
|
(20)
|
|
|
|
1,008
|
|
Net interest
(expense) income
|
(101)
|
|
|
(39)
|
|
|
—
|
|
|
(26)
|
|
|
6
|
|
|
(80)
|
|
|
|
(240)
|
|
Income tax (expense)
benefit
|
(45)
|
|
|
(94)
|
|
|
—
|
|
|
(8)
|
|
|
(49)
|
|
|
38
|
|
|
|
(158)
|
|
Equity earnings,
net
|
—
|
|
|
—
|
|
|
137
|
|
|
47
|
|
|
134
|
|
|
—
|
|
|
|
318
|
|
(Earnings) losses
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(34)
|
|
|
1
|
|
|
—
|
|
|
|
(33)
|
|
Preferred
dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
|
(21)
|
|
Earnings (losses)
attributable to common shares
|
$
|
212
|
|
|
$
|
407
|
|
|
$
|
135
|
|
|
$
|
57
|
|
|
$
|
146
|
|
|
$
|
(83)
|
|
|
|
$
|
874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2020
|
SDG&E
|
|
SoCalGas
|
|
Sempra
Texas
Utilities
|
|
Sempra
Mexico
|
|
Sempra LNG
|
|
Consolidating
Adjustments,
Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,269
|
|
|
$
|
1,395
|
|
|
$
|
—
|
|
|
$
|
309
|
|
|
$
|
123
|
|
|
$
|
(67)
|
|
|
|
$
|
3,029
|
|
Cost of sales and
other expenses
|
(679)
|
|
|
(872)
|
|
|
(1)
|
|
|
(137)
|
|
|
(87)
|
|
|
63
|
|
|
|
(1,713)
|
|
Depreciation and
amortization
|
(201)
|
|
|
(159)
|
|
|
—
|
|
|
(47)
|
|
|
(2)
|
|
|
(3)
|
|
|
|
(412)
|
|
Other income
(expense), net
|
31
|
|
|
30
|
|
|
—
|
|
|
(283)
|
|
|
—
|
|
|
(32)
|
|
|
|
(254)
|
|
Income (loss) before
interest and tax(1)
|
420
|
|
|
394
|
|
|
(1)
|
|
|
(158)
|
|
|
34
|
|
|
(39)
|
|
|
|
650
|
|
Net interest
(expense) income
|
(100)
|
|
|
(39)
|
|
|
—
|
|
|
(14)
|
|
|
6
|
|
|
(106)
|
|
|
|
(253)
|
|
Income tax (expense)
benefit
|
(58)
|
|
|
(52)
|
|
|
—
|
|
|
307
|
|
|
(23)
|
|
|
33
|
|
|
|
207
|
|
Equity earnings
(losses), net
|
—
|
|
|
—
|
|
|
106
|
|
|
200
|
|
|
57
|
|
|
(100)
|
|
|
|
263
|
|
(Earnings) losses
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(144)
|
|
|
1
|
|
|
—
|
|
|
|
(143)
|
|
Preferred
dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36)
|
|
|
|
(36)
|
|
Earnings (losses)
from continuing operations
|
$
|
262
|
|
|
$
|
303
|
|
|
$
|
105
|
|
|
$
|
191
|
|
|
$
|
75
|
|
|
$
|
(248)
|
|
|
|
688
|
|
Earnings from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72
|
|
Earnings attributable
to common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
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SOURCE Sempra Energy