Sempra Reports Second-Quarter 2021 Earnings Results

- Reporting strong second-quarter and year-to-date 2021 financial results

- Announcing higher projected five-year capital plan at Oncor of $14 billion

Aug 5, 2021

SAN DIEGO, Aug. 5, 2021 /PRNewswire/ -- Sempra (NYSE: SRE) (BMV: SRE) today announced second-quarter 2021 earnings of $424 million, or $1.37 per diluted share, compared to second-quarter 2020 earnings of $2.239 billion, or $7.61 per diluted share. On an adjusted basis, the company's second-quarter 2021 earnings were $504 million, or $1.63 per diluted share, compared to $501 million, or $1.71 per diluted share, in the second quarter of 2020.

"Our simplified business model and narrowed strategic focus to growing markets continue to provide strong support for our financial and operational results," said Trevor Mihalik, executive vice president and chief financial officer of Sempra. "We are pleased with our solid year-to-date financial results."

Sempra's earnings for the first six months of 2021 were $1.298 billion, or $4.24 per diluted share, compared with earnings of $2.999 billion, or $9.91 per diluted share, in the first six months of 2020. Adjusted earnings for the first six months of 2021 were $1.404 billion, or $4.58 per diluted share, compared to $1.242 billion, or $4.20 per diluted share, in the first six months of 2020.

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 second quarter and first six months of 2021 and 2020.








 Three months ended 


 Six months ended 



 June 30, 


 June 30, 

(Dollars, except EPS, and shares in millions)


2021


2020


2021


2020



(Unaudited)

GAAP Earnings


$        424


$     2,239


$     1,298


$     2,999










Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives1

72


21


69


(129)










Net Unrealized Losses (Gains) on Commodity Derivatives1


58


(5)


87


(46)










Impacts Associated with Aliso Canyon Litigation


-


-


-


72










Gain on Sale of South American Businesses


-


(1,754)


-


(1,754)










(Earnings) Losses from Investment in RBS Sempra Commodities LLP


(50)


-


(50)


100










Adjusted Earnings2


$        504


$        501


$     1,404


$     1,242



















Diluted Weighted-Average Common Shares Outstanding


309


294


306


308

GAAP EPS3


$       1.37


$       7.61


$       4.24


$       9.91










Diluted Weighted-Average Common Shares Outstanding4


309


294


311


308

Adjusted EPS2,3,5


$       1.63


$       1.71


$       4.58


$       4.20





1)

Q2-2020 and YTD-2020 Adjusted Earnings and Adjusted Earnings per Common Share (EPS) have been updated to exclude this item to conform to current year presentation.

2)

Represents a non-GAAP financial measure. See Table A for information regarding non-GAAP financial measures and descriptions of adjustments.

3)

To calculate YTD-2020 GAAP EPS and Adjusted EPS, preferred dividends of $52 million are added back to GAAP Earnings because of the dilutive effect of Series A mandatory convertible preferred stock.        

4)

YTD-2020 diluted weighted-average common shares outstanding has been updated for the exclusion of additional items to conform to current year presentation. 

5)

To calculate YTD-2021 Adjusted EPS, preferred dividends of $19 million are added back to Adjusted Earnings because of the dilutive effect of Series B mandatory convertible preferred stock.

Prioritizing Safety and Sustainability at Sempra California

In July, San Diego Gas & Electric Co. (SDG&E) received approval from the California Public Utilities Commission (CPUC) for its 2021 Wildfire Mitigation Plan Update, building upon the utility's long-standing commitment to advancing fire hardening and public safety.

Additionally, Southern California Gas Co. (SoCalGas) began renewable natural gas (RNG) flows at two additional biomethane projects in support of its goal to deliver 20% RNG to its core customers by 2030.

Continuing Growth at Sempra Texas

In Texas, Oncor Electric Delivery Company LLC (Oncor) has announced its projected five-year capital plan for 2022-2026 of $14 billion, a $1.8 billion increase compared to the 2021-2025 capital plan. The increase is driven by the need for investments to support strong premise growth, growth in generation interconnection requests and grid resiliency. Prospects for new relocations, expansions and electric service to Oncor's system are expected to exceed 2020 values by 70% and 2019 values by 170%. So far this year, Oncor has connected approximately 43,000 new premises – greater than the total connections seen at this same time last year, highlighting the underlying strength of economic and demographic growth in the region.

Advancing Sempra Infrastructure

In May, Sempra announced the completion of its exchange offer to acquire the outstanding shares of Infraestructura Energética Nova, S.A.B de C.V. (IEnova) not owned by Sempra, resulting in 96.4% ownership. Sempra intends to launch a cash tender offer to acquire the remaining 3.6% interest.

Sempra also continues to advance the sale of a non-controlling, 20% interest in Sempra Infrastructure to KKR for $3.37 billion in cash, subject to adjustments. The sale is expected to close around the end of the third quarter of 2021. Sempra Infrastructure is expected to generate increased shareholder value by consolidating Sempra's infrastructure businesses under one common growth platform with a value proposition focused on investment opportunities in clean power, liquefied natural gas (LNG) and net-zero solutions, and energy networks.

Additionally, in July, IEnova began commercial operations at its Mexico City storage terminal.

Earnings Guidance

Sempra is updating its full-year 2021 GAAP EPS guidance range to $7.41 to $8.01 and affirming its full-year 2021 adjusted EPS guidance range of $7.75 to $8.35. Sempra is also affirming its full-year 2022 EPS guidance range of $8.10 to $8.70.

Non-GAAP Financial Measures

Non-GAAP financial measures include Sempra'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 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 1398783.

About Sempra

Sempra's mission is to be North America's premier energy infrastructure company. The Sempra 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 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 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, please visit Sempra'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," "goal," "aim," "commit," 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, U.S. Federal Energy Regulatory Commission, 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 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; 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; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or 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 or limitations on the withdrawal of natural gas from storage facilities; the impact of the COVID-19 pandemic on capital projects, regulatory approvals, and the execution of our operations; cybersecurity threats to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business; 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 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 Sempra'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
June 30,


Six months ended
June 30,


2021


2020


2021


2020


(unaudited)

REVENUES








Utilities

$

2,434



$

2,233



$

5,279



$

4,898


Energy-related businesses

307



293



721



657


Total revenues

2,741



2,526



6,000



5,555










EXPENSES AND OTHER INCOME








Utilities:








Cost of natural gas

(261)



(131)



(610)



(468)


Cost of electric fuel and purchased power

(284)



(260)



(516)



(489)


Energy-related businesses cost of sales

(119)



(51)



(228)



(110)


Operation and maintenance

(1,024)



(898)



(2,025)



(1,749)


Aliso Canyon litigation and regulatory matters







(100)


Depreciation and amortization

(463)



(412)



(905)



(824)


Franchise fees and other taxes

(138)



(121)



(291)



(258)


Other income (expense), net

72



62



107



(192)


Interest income

15



22



34



49


Interest expense

(258)



(274)



(517)



(554)


Income from continuing operations before income taxes and equity earnings

281



463



1,049



860


Income tax (expense) benefit

(139)



(168)



(297)



39


Equity earnings

313



233



631



496


Income from continuing operations, net of income tax

455



528



1,383



1,395


Income from discontinued operations, net of income tax



1,777





1,857


Net income

455



2,305



1,383



3,252


Earnings attributable to noncontrolling interests

(10)



(28)



(43)



(179)


Preferred dividends

(20)



(37)



(41)



(73)


Preferred dividends of subsidiary

(1)



(1)



(1)



(1)


Earnings attributable to common shares

$

424



$

2,239



$

1,298



$

2,999










Basic earnings per common share (EPS):








Earnings

$

1.38



$

7.64



$

4.27



$

10.24


Weighted-average common shares outstanding

307,800



293,060



304,372



292,925










Diluted EPS:








Earnings

$

1.37



$

7.61



$

4.24



$

9.91


Weighted-average common shares outstanding

308,607



294,155



306,284



307,962


SEMPRA ENERGY
Table A (Continued)

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

Sempra 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 June 30, 2021:

  • $(72) million impact from foreign currency and inflation and associated undesignated derivatives
  • $(58) million net unrealized losses on commodity derivatives
  • $50 million equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other

Three months ended June 30, 2020:

  • $(21) million impact from foreign currency and inflation and associated undesignated derivatives
  • $5 million net unrealized gains on commodity derivatives
  • $1,754 million gain on the sale of our South American businesses

Six months ended June 30, 2021:

  • $(69) million impact from foreign currency and inflation and associated undesignated derivatives
  • $(87) million net unrealized losses on commodity derivatives
  • $50 million equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other

Six months ended June 30, 2020:

  • $129 million impact from foreign currency and inflation and associated undesignated derivatives
  • $46 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 from investment in RBS Sempra Commodities LLP, which represents an estimate of our obligations to settle pending VAT 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

Sempra 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'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 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 expense (benefit)(1)

Non-controlling interests

Earnings


Pretax amount

Income tax expense (benefit)(1)

Non-controlling interests

Earnings


Three months ended June 30, 2021


Three months ended June 30, 2020

Sempra GAAP Earnings




$

424






$

2,239


Excluded items:











Impact from foreign currency and inflation and associated

undesignated derivatives

$

2


$

83


$

(13)


72



$

(1)


$

31


$

(9)


21



Net unrealized losses (gains) on commodity derivatives

79


(22)


1


58



(6)


1



(5)



Gain on sale of South American businesses






(2,915)


1,161



(1,754)



Earnings from investment in RBS Sempra Commodities LLP

(50)




(50)







Sempra Adjusted Earnings(2)




$

504






$

501













Diluted EPS:











Sempra GAAP Earnings




$

424






$

2,239































Weighted-average common shares outstanding, diluted




308,607






294,155



Sempra GAAP EPS




$

1.37






$

7.61















Sempra Adjusted Earnings(2)




$

504






$

501



Weighted-average common shares outstanding, diluted




308,607






294,155



Sempra Adjusted EPS(2)




$

1.63






$

1.71















Six months ended June 30, 2021


Six months ended June 30, 2020

Sempra GAAP Earnings




$

1,298






$

2,999


Excluded items:











Impact from foreign currency and inflation and associated

undesignated derivatives

$

32


$

41


$

(4)


69



$

94


$

(322)


$

99


(129)



Net unrealized losses (gains) on commodity derivatives

125


(35)


(3)


87



(63)


17



(46)



Impacts associated with Aliso Canyon litigation






100


(28)



72



Gain on sale of South American businesses






(2,915)


1,161



(1,754)



(Earnings) losses from investment in RBS Sempra Commodities LLP

(50)




(50)



100




100


Sempra Adjusted Earnings(2)




$

1,404






$

1,242













Diluted EPS:











Sempra GAAP Earnings




$

1,298






$

2,999



Add back dividends for dilutive series A preferred stock









52

















Sempra GAAP Earnings for GAAP EPS




$

1,298






$

3,051



Weighted-average common shares outstanding, diluted – GAAP




306,284






307,962



Sempra GAAP EPS




$

4.24






$

9.91















Sempra Adjusted Earnings(2)




$

1,404






$

1,242



Add back dividends for dilutive series A preferred stock









52



Add back dividends for dilutive series B preferred stock




19








Sempra Adjusted Earnings for Adjusted EPS(2)




$

1,423






$

1,294



Weighted-average common shares outstanding, diluted – Adjusted(3)




310,541






307,962



Sempra Adjusted EPS(2)




$

4.58






$

4.20




(1)

Income taxes were primarily calculated based on applicable statutory tax rates. We did not record an income tax expense for the equity earnings or 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 losses (gains) on commodity derivatives for the three months and six months ended June 30, 2020.

(3)

In the six months ended June 30, 2021, because the assumed conversion of the series B preferred stock is dilutive for Adjusted Earnings, 4,257 series B preferred stock shares are added back to the denominator used to calculate Adjusted EPS.

SEMPRA ENERGY
Table A (Continued)

RECONCILIATION OF SEMPRA 2021 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA 2021 GAAP EPS GUIDANCE RANGE (Unaudited)

Sempra 2021 Adjusted EPS Guidance Range of $7.75 to $8.35 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:

  • $(69) million impact from foreign currency and inflation and associated undesignated derivatives for the six months ended June 30, 2021(1)
  • $(87) million net unrealized losses on commodity derivatives for the six months ended June 30, 2021
  • $50 million equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other

Sempra 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's business operations to prior and future periods. Sempra 2021 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 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 2021 Adjusted EPS Guidance Range to Sempra 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 GAAP EPS Guidance Range(2)

$

7.41


to

$

8.01


Excluded items:




Impact from foreign currency and inflation and associated undesignated derivatives(1)

0.22



0.22


Net unrealized losses on commodity derivatives

0.28



0.28


Earnings from investment in RBS Sempra Commodities LLP

(0.16)



(0.16)


Sempra Adjusted EPS Guidance Range

$

7.75


to

$

8.35


Weighted-average common shares outstanding, diluted (millions)(3)(4)



315




(1)

Amounts include impacts recorded in equity earnings from our unconsolidated equity method investments.

(2)

 Sempra's prior GAAP EPS Guidance Range for full-year 2021 has been updated to reflect the impact from foreign currency and inflation and associated undesignated derivatives, net unrealized losses on commodity derivatives and equity earnings from investment in RBS Sempra Commodities LLP for the six months ended June 30, 2021.

(3)

Weighted-average common shares outstanding reflects the conversion of the series A preferred stock that converted on January 15, 2021 and series B preferred stock that converted on July 15, 2021.

(4)

Includes the impact of the Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) exchange offer.

 













SEMPRA ENERGY

Table B





CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)





June 30,
2021


December 31,

2020(1)


(unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$

335



$

960


Restricted cash

33



22


Accounts receivable – trade, net

1,441



1,578


Accounts receivable – other, net

413



403


Due from unconsolidated affiliates

11



20


Income taxes receivable

74



113


Inventories

339



308


Regulatory assets

251



190


Greenhouse gas allowances

555



553


Other current assets

308



364


Total current assets

3,760



4,511






Other assets:




Restricted cash

3



3


Due from unconsolidated affiliates

702



780


Regulatory assets

2,216



1,822


Nuclear decommissioning trusts

1,024



1,019


Investment in Oncor Holdings

12,655



12,440


Other investments

1,393



1,388


Goodwill

1,602



1,602


Other intangible assets

382



202


Dedicated assets in support of certain benefit plans

523



512


Insurance receivable for Aliso Canyon costs

414



445


Deferred income taxes

167



136


Greenhouse gas allowances

259



101


Right-of-use assets – operating leases

513



543


Wildfire fund

349



363


Other long-term assets

730



753


Total other assets

22,932



22,109


Property, plant and equipment, net

41,916



40,003


Total assets

$

68,608



$

66,623



(1)     Derived from audited financial statements.

 













SEMPRA ENERGY

Table B (Continued)





CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)





June 30,
2021


December 31,

2020(1)


(unaudited)



LIABILITIES AND EQUITY




Current liabilities:




Short-term debt

$

2,266



$

885


Accounts payable – trade

1,291



1,359


Accounts payable – other

168



154


Due to unconsolidated affiliates

42



45


Dividends and interest payable

588



551


Accrued compensation and benefits

365



446


Regulatory liabilities

426



140


Current portion of long-term debt and finance leases

507



1,540


Reserve for Aliso Canyon costs

153



150


Greenhouse gas obligations

555



553


Other current liabilities

951



1,016


Total current liabilities

7,312



6,839






Long-term debt and finance leases

22,090



21,781






Deferred credits and other liabilities:




Due to unconsolidated affiliates

262



234


Pension and other postretirement benefit plan obligations, net of plan assets

1,037



1,059


Deferred income taxes

3,325



2,871


Regulatory liabilities

3,352



3,372


Reserve for Aliso Canyon costs

269



301


Asset retirement obligations

3,150



3,113


Greenhouse gas obligations

104




Deferred credits and other

2,015



2,119


Total deferred credits and other liabilities

13,514



13,069


Equity:




Sempra Energy shareholders' equity

25,451



23,373


Preferred stock of subsidiary

20



20


Other noncontrolling interests

221



1,541


Total equity

25,692



24,934


Total liabilities and equity

$

68,608



$

66,623



(1)     Derived from audited financial statements.

 













SEMPRA ENERGY

Table C





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)





Six months ended June 30,


2021


2020


(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES




Net income

$

1,383



$

3,252


Less: Income from discontinued operations, net of income tax



(1,857)


Income from continuing operations, net of income tax

1,383



1,395


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

747



429


Net change in working capital components

(63)



375


Distributions from investments

532



220


Insurance receivable for Aliso Canyon costs

31



(166)


Changes in other noncurrent assets and liabilities, net

(375)



(185)


Net cash provided by continuing operations

2,255



2,068


Net cash used in discontinued operations



(1,041)


Net cash provided by operating activities

2,255



1,027






CASH FLOWS FROM INVESTING ACTIVITIES




Expenditures for property, plant and equipment

(2,424)



(2,198)


Expenditures for investments and acquisitions

(165)



(140)


Proceeds from sale of assets



5


Purchases of nuclear decommissioning trust assets

(542)



(797)


Proceeds from sales of nuclear decommissioning trust assets

542



797


Advances to unconsolidated affiliates

(8)



(25)


Other

9



17


Net cash used in continuing operations

(2,588)



(2,341)


Net cash provided by discontinued operations



5,195


Net cash (used in) provided by investing activities

(2,588)



2,854






CASH FLOWS FROM FINANCING ACTIVITIES




Common dividends paid

(634)



(567)


Preferred dividends paid

(68)



(71)


Issuances of preferred stock



891


Issuances of common stock

5



13


Repurchases of common stock

(38)



(64)


Issuances of debt (maturities greater than 90 days)

285



4,059


Payments on debt (maturities greater than 90 days) and finance leases

(1,432)



(1,970)


Increase (decrease) in short-term debt, net

1,584



(1,871)


Advances from unconsolidated affiliates

20



64


Proceeds from sale of noncontrolling interests

7




Purchases of noncontrolling interests

(10)



(27)


Other

(1)



(16)


Net cash (used in) provided by continuing operations

(282)



441


Net cash provided by discontinued operations



401


Net cash (used in) provided by financing activities

(282)



842






Effect of exchange rate changes in continuing operations

1



(7)


Effect of exchange rate changes in discontinued operations



(3)


Effect of exchange rate changes on cash, cash equivalents and restricted cash

1



(10)






(Decrease) increase in cash, cash equivalents and restricted cash, including discontinued operations

(614)



4,713


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

985



217


Cash, cash equivalents and restricted cash, including discontinued operations, June 30

$

371



$

4,930


 

























SEMPRA ENERGY

Table D






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

(Dollars in millions)





Three months ended June 30,


Six months ended June 30,


2021


2020


2021


2020


(unaudited)

Earnings (Losses) Attributable to Common Shares





SDG&E

$

186



$

193



$

398



$

455


SoCalGas

94



146



501



449


Sempra Texas Utilities

138



144



273



249


Sempra Mexico

4



61



61



252


Sempra LNG

47



61



193



136


Parent and other

(45)



(141)



(128)



(389)


Discontinued operations



1,775





1,847


Total

$

424



$

2,239



$

1,298



$

2,999



















Three months ended June 30,


Six months ended June 30,


2021


2020


2021


2020


(unaudited)

Capital Expenditures, Investments and Acquisitions





SDG&E

$

517



$

448



$

1,072



$

850


SoCalGas

477



497



936



885


Sempra Texas Utilities

50



53



100



139


Sempra Mexico

89



151



231



321


Sempra LNG

160



90



249



137


Parent and other



3



1



6


Total

$

1,293



$

1,242



$

2,589



$

2,338


 




























SEMPRA ENERGY

Table E






OTHER OPERATING STATISTICS











Three months ended June 30,


Six months ended June 30,


2021


2020


2021


2020



(unaudited)

UTILITIES








SDG&E and SoCalGas








Gas sales (Bcf)(1)

72



71



199



200


Transportation (Bcf)(1)

145



129



282



277


Total deliveries (Bcf)(1)

217



200



481



477










Total gas customer meters (thousands)





6,983



6,943











SDG&E








Electric sales (millions of kWhs)(1)

2,834



3,124



6,123



6,584


Direct Access and Community Choice Aggregation (millions of kWhs)

974



847



1,787



1,616


Total deliveries (millions of kWhs)(1)

3,808



3,971



7,910



8,200










Total electric customer meters (thousands)





1,487



1,478










Oncor(2)








Total deliveries (millions of kWhs)

32,889



31,038



63,566



61,458


Total electric customer meters (thousands)





3,804



3,723










Ecogas








Natural gas sales (Bcf)

1



1



2



2


Natural gas customer meters (thousands)





140



136


















ENERGY-RELATED BUSINESSES








Power generated and sold








Sempra Mexico








Termoeléctrica de Mexicali (TdM) (millions of kWhs)

826



457



1,671



1,283


Wind and solar (millions of kWhs)(3)

769



381



1,312



803



























(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 June 30, 2021

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, Parent & Other


Total















Revenues

$

1,318



$

1,124



$



$

404



$

52



$

(157)



$

2,741


Cost of sales and other expenses

(800)



(799)



(1)



(215)



(159)



148



(1,826)


Depreciation and amortization

(220)



(180)





(57)



(2)



(4)



(463)


Other income (expense), net

22



(2)





33





19



72


Income (loss) before interest and tax(1)

320



143



(1)



165



(109)



6



524


Net interest (expense) income

(101)



(40)





(29)



5



(78)



(243)


Income tax (expense) benefit

(33)



(8)





(113)



19



(4)



(139)


Equity earnings (losses), net





139



(9)



133



50



313


(Earnings) losses attributable to noncontrolling interests







(10)



(1)



1



(10)


Preferred dividends



(1)









(20)



(21)


Earnings (losses) attributable to common shares

$

186



$

94



$

138



$

4



$

47



$

(45)



$

424






























Three months ended June 30, 2020

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, 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




















(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

(Dollars in millions)

Six months ended June 30, 2021

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, Parent & Other


Total















Revenues

$

2,655



$

2,632



$



$

771



$

248



$

(306)



$

6,000


Cost of sales and other expenses

(1,601)



(1,633)



(3)



(410)



(298)



275



(3,670)


Depreciation and amortization

(433)



(353)





(108)



(5)



(6)



(905)


Other income (expense), net

57



37





(10)





23



107


Income (loss) before interest and tax(1)

678



683



(3)



243



(55)



(14)



1,532


Net interest (expense) income

(202)



(79)





(55)



11



(158)



(483)


Income tax (expense) benefit

(78)



(102)





(121)



(30)



34



(297)


Equity earnings, net





276



38



267



50



631


(Earnings) losses attributable to noncontrolling interests







(44)





1



(43)


Preferred dividends



(1)









(41)



(42)


Earnings (losses) attributable to common shares

$

398



$

501



$

273



$

61



$

193



$

(128)



$

1,298












































Six months ended June 30, 2020

SDG&E


SoCalGas


Sempra Texas Utilities


Sempra Mexico


Sempra LNG


Consolidating Adjustments, 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

















(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.

 

 

SOURCE Sempra

For further information: Media: Linda Pazin, Sempra, (877) 340-8875, media@sempra.com; Financial: Lindsay Gartner, Sempra, (877) 736-7727, investor@sempra.com