Sempra Energy Reports Higher First-Quarter 2017 Earnings

May 9, 2017

SAN DIEGO, May 9, 2017 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported first-quarter 2017 earnings of $441 million, or $1.75 per diluted share, up from $353 million, or $1.40 per diluted share, in the first quarter 2016.

"Our strong first-quarter results keep us on track to meet our 2017 earnings guidance," said Debra L. Reed, chairman, president and CEO of Sempra Energy. "As we outlined at our analyst conference last month, we are executing on our strategic plan to grow our earnings at about twice the average rate of our utility peers from 2017 through 2021."

All earnings, adjusted earnings, earnings per share and adjusted earnings per share for 2016 have been recast to reflect the adoption of a share-based compensation accounting standard in 2016. Additionally, first-quarter 2016 results for Southern California Gas Co. (SoCalGas) and San Diego Gas & Electric (SDG&E) did not include revenue from their 2016-18 General Rate Case, as the California Public Utilities Commission (CPUC) did not issue its final decision until last year's second quarter.

Sempra Energy's first-quarter adjusted earnings were $438 million, or $1.74 per diluted share, in 2017, up from $404 million, or $1.60 per diluted share, in 2016. Last year's adjusted first-quarter results excluded a $27 million after-tax loss related to the previously announced agreement to sell Sempra LNG & Midstream's stake in the Rockies Express Pipeline (REX) and $24 million of deferred tax expense related to the planned Termoeléctrica de Mexicali (TdM) power plant sale. Sempra Energy's adjusted first-quarter 2017 results excluded a $3 million deferred tax benefit related to the planned sale of TdM.

SEMPRA UTILITIES

Southern California Gas Co.

Earnings for SoCalGas were $203 million in the first quarter 2017, compared with $199 million in the first quarter 2016. 

San Diego Gas & Electric

First-quarter earnings for SDG&E were $155 million in 2017, compared with $136 million in 2016, due primarily to higher CPUC base margin and lower operating expenses.

Sempra South American Utilities

Earnings for Sempra South American Utilities were $47 million in the first quarter 2017, compared with $38 million in the first quarter 2016, primarily due to higher operating earnings in Peru.  

SEMPRA INFRASTRUCTURE

Sempra Mexico

Sempra Mexico had first-quarter earnings of $48 million in 2017, compared with $18 million in 2016, due primarily to the $24 million in deferred tax expense in 2016 related to the planned TdM sale, offset by unfavorable foreign-currency and inflation impacts in 2017. Additionally, Sempra Mexico benefited in the first quarter 2017 from incremental operating earnings from subsidiary IEnova's acquisitions late last year of the Ventika wind farm complex and PEMEX's stake in the Gasoductos de Chihuahua joint venture, and higher regulatory earnings from projects in construction.

Sempra Renewables

First-quarter 2017 earnings for Sempra Renewables were $11 million, compared with $14 million in last year's first quarter.

Sempra LNG & Midstream

Sempra LNG & Midstream had earnings of $1 million in the first quarter 2017, compared with a loss of $32 million in the first quarter 2016, primarily due to the $27 million after-tax loss in 2016 related to the agreement to sell its stake in REX.

EARNINGS GUIDANCE

Sempra Energy today reaffirmed its 2017 earnings-per-share guidance range of $4.85 to $5.25.

NON-GAAP FINANCIAL MEASURES

First-quarter adjusted earnings and adjusted earnings per share for both 2017 and 2016 are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the first-quarter financial tables.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. EDT with senior management of the company.  Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2862957.

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 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; 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 IEnova are not the same as the California utilities, San Diego Gas & Electric (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
March 31,

(Dollars in millions, except per share amounts)

2017

 

2016(1)

 

(unaudited)

REVENUES

     

Utilities

$

2,698

   

$

2,442

 

Energy-related businesses

333

   

180

 

Total revenues

3,031

   

2,622

 
       

EXPENSES AND OTHER INCOME

     

Utilities:

     

Cost of electric fuel and purchased power

(527)

   

(515)

 

Cost of natural gas

(485)

   

(311)

 

Energy-related businesses:

     

Cost of natural gas, electric fuel and purchased power

(67)

   

(56)

 

Other cost of sales

(22)

   

(35)

 

Operation and maintenance

(714)

   

(701)

 

Depreciation and amortization

(360)

   

(328)

 

Franchise fees and other taxes

(110)

   

(111)

 

Equity earnings (losses), before income tax

3

   

(22)

 

Other income, net

169

   

49

 

Interest income

6

   

6

 

Interest expense

(169)

   

(143)

 

Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries

755

   

455

 

Income tax expense

(295)

   

(108)

 

Equity (losses) earnings, net of income tax

(8)

   

17

 

Net income

452

   

364

 

Earnings attributable to noncontrolling interests

(11)

   

(11)

 

Earnings

$

441

   

$

353

 
       

Basic earnings per common share

$

1.76

   

$

1.41

 

Weighted-average number of shares outstanding, basic (thousands)

251,131

   

249,734

 
       

Diluted earnings per common share

$

1.75

   

$

1.40

 

Weighted-average number of shares outstanding, diluted (thousands)

252,246

   

251,487

 
       

Dividends declared per share of common stock

$

0.82

   

$

0.76

 

 

 

(1)

As adjusted for the adoption of ASU 2016-09 as of January 1, 2016.

 

   

SEMPRA ENERGY

Table A (Continued)

 

RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED 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 March 31, 2017:

   

$3 million deferred income tax benefit on Sempra Mexico's Termoeléctrica de Mexicali (TdM) natural gas-fired power plant that is held for sale

   

Three months ended March 31, 2016:

$(27) million impairment charge related to Sempra LNG & Midstream's investment in Rockies Express Pipeline LLC (Rockies Express)

$(24) million deferred income tax expense on the TdM natural gas-fired power plant that is 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 nature of these 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(1)

Non-
controlling
interests

Earnings

 

Pretax
amount

Income tax
(benefit)
expense(1)

Non-
controlling
interests

Earnings

 

(Dollars in millions, except per share amounts)

Three months ended March 31, 2017

 

Three months ended March 31, 2016(2)

 

Sempra Energy GAAP Earnings

     

$

441

         

$

353

   

Exclude:

                   

Impairment of investment in Rockies Express

$

 

$

 

$

 

   

$

44

 

$

(17)

 

$

 

27

   

Deferred income tax (benefit) expense associated with TdM

 

(5)

 

2

 

(3)

   

 

29

 

(5)

 

24

   

Sempra Energy Adjusted Earnings

       

$

438

         

$

404

   
                       

Diluted earnings per common share:

                   

Sempra Energy GAAP Earnings

     

$

1.75

         

$

1.40

   

Sempra Energy Adjusted Earnings

     

$

1.74

         

$

1.60

   

Weighted-average number of shares outstanding, diluted (thousands)

     

252,246

         

251,487

   

 

 

(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.

(2)

Reflects the adoption of ASU 2016-09 as of January 1, 2016.

 

 

SEMPRA ENERGY

Table B

             

CONDENSED CONSOLIDATED BALANCE SHEETS

       

(Dollars in millions)

March 31,
2017

 

December 31,
2016(1)

 

(unaudited)

   

Assets

     

Current assets:

     

   Cash and cash equivalents

$

290

   

$

349

 

   Restricted cash

72

   

66

 

   Accounts receivable, net

1,468

   

1,554

 

   Due from unconsolidated affiliates

24

   

26

 

   Income taxes receivable

65

   

43

 

   Inventories

210

   

258

 

   Regulatory balancing accounts – undercollected

202

   

259

 

   Fixed-price contracts and other derivatives

161

   

83

 

   Assets held for sale

196

   

201

 

   Other

265

   

271

 

   Total current assets

2,953

   

3,110

 
       

Other assets:

     

   Restricted cash

5

   

10

 

   Due from unconsolidated affiliates

187

   

201

 

   Regulatory assets

3,503

   

3,414

 

   Nuclear decommissioning trusts

1,062

   

1,026

 

   Investments

2,120

   

2,097

 

   Goodwill

2,380

   

2,364

 

   Other intangible assets

544

   

548

 

   Dedicated assets in support of certain benefit plans

412

   

430

 

   Insurance receivable for Aliso Canyon costs

621

   

606

 

   Deferred income taxes

188

   

234

 

   Sundry

817

   

815

 

   Total other assets

11,839

   

11,745

 

Property, plant and equipment, net

33,492

   

32,931

 

Total assets

$

48,284

   

$

47,786

 
       

Liabilities and Equity

     

Current liabilities:

     

   Short-term debt

$

2,054

   

$

1,779

 

   Accounts payable

1,092

   

1,476

 

   Due to unconsolidated affiliates

13

   

11

 

   Dividends and interest payable

382

   

319

 

   Accrued compensation and benefits

239

   

409

 

   Regulatory balancing accounts – overcollected

189

   

122

 

   Current portion of long-term debt

839

   

913

 

   Fixed-price contracts and other derivatives

115

   

83

 

   Customer deposits

160

   

158

 

   Reserve for Aliso Canyon costs

49

   

53

 

   Liabilities held for sale

40

   

47

 

   Other

640

   

557

 

   Total current liabilities

5,812

   

5,927

 

Long-term debt

14,409

   

14,429

 
       

Deferred credits and other liabilities:

     

   Customer advances for construction

145

   

152

 

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

1,212

   

1,208

 

   Deferred income taxes

4,025

   

3,745

 

   Deferred investment tax credits

26

   

28

 

   Regulatory liabilities arising from removal obligations

2,761

   

2,697

 

   Asset retirement obligations

2,455

   

2,431

 

   Fixed-price contracts and other derivatives

343

   

405

 

   Deferred credits and other

1,527

   

1,523

 

   Total deferred credits and other liabilities

12,494

   

12,189

 

Equity:

     

   Total Sempra Energy shareholders' equity

13,264

   

12,951

 

   Preferred stock of subsidiary

20

   

20

 

   Other noncontrolling interests

2,285

   

2,270

 

   Total equity

15,569

   

15,241

 

Total liabilities and equity

$

48,284

   

$

47,786

 

 

 

(1)

Derived from audited financial statements.

 

 

SEMPRA ENERGY

Table C

             

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

             
       

Three months ended March 31,

(Dollars in millions)

 

2017

 

2016(1)

   

(unaudited)

Cash Flows from Operating Activities

       

Net income

 

$

452

   

$

364

 

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

       

   Depreciation and amortization

 

360

   

328

 

   Deferred income taxes and investment tax credits

 

268

   

78

 

   Equity losses

 

5

   

5

 

   Fixed-price contracts and other derivatives

 

(106)

   

4

 

   Other

 

(22)

   

36

 

Net change in other working capital components

 

84

   

165

 

Insurance receivable for Aliso Canyon costs

 

(15)

   

(335)

 

Changes in other assets

 

(41)

   

(29)

 

Changes in other liabilities

 

19

   

10

 

   Net cash provided by operating activities

 

1,004

   

626

 
         

Cash Flows from Investing Activities

       

Expenditures for property, plant and equipment

 

(992)

   

(971)

 

Expenditures for investments

 

(59)

   

(30)

 

Distributions from investments

 

17

   

9

 

Purchases of nuclear decommissioning and other trust assets

 

(350)

   

(94)

 

Proceeds from sales by nuclear decommissioning and other trusts

 

357

   

93

 

Increases in restricted cash

 

(93)

   

(16)

 

Decreases in restricted cash

 

93

   

20

 

Advances to unconsolidated affiliates

 

(5)

   

(6)

 

Repayments of advances to unconsolidated affiliates

 

2

   

9

 

Other

 

4

   

(3)

 

   Net cash used in investing activities

 

(1,026)

   

(989)

 
         

Cash Flows from Financing Activities

       

Common dividends paid

 

(176)

   

(161)

 

Issuances of common stock

 

17

   

15

 

Repurchases of common stock

 

(14)

   

(54)

 

Issuances of debt (maturities greater than 90 days)

 

542

   

55

 

Payments on debt (maturities greater than 90 days)

 

(313)

   

(54)

 

(Decrease) increase in short-term debt, net

 

(97)

   

531

 

Other

 

(5)

   

(2)

 

   Net cash (used in) provided by financing activities

 

(46)

   

330

 
         

Effect of exchange rate changes on cash and cash equivalents

 

9

   

6

 
         

Decrease in cash and cash equivalents

 

(59)

   

(27)

 

Cash and cash equivalents, January 1

 

349

   

403

 

Cash and cash equivalents, March 31

 

$

290

   

$

376

 

 

 

(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
March 31,

(Dollars in millions)

 

2017

 

2016(1)

   

(unaudited)

Earnings (Losses)

       

Sempra Utilities:

       

   San Diego Gas & Electric

 

$

155

   

$

136

 

   Southern California Gas

 

203

   

199

 

   Sempra South American Utilities

 

47

   

38

 

Sempra Infrastructure:

       

   Sempra Mexico

 

48

   

18

 

   Sempra Renewables

 

11

   

14

 

   Sempra LNG & Midstream

 

1

   

(32)

 

Parent and other

 

(24)

   

(20)

 

Earnings

 

$

441

   

$

353

 
         
         
   

Three months ended
March 31,

(Dollars in millions)

 

2017

 

2016

   

(unaudited)

Capital Expenditures and Investments

       

Sempra Utilities:

       

   San Diego Gas & Electric

 

$

418

   

$

329

 

   Southern California Gas

 

357

   

340

 

   Sempra South American Utilities

 

43

   

43

 

Sempra Infrastructure:

       

   Sempra Mexico

 

140

   

40

 

   Sempra Renewables

 

69

   

199

 

   Sempra LNG & Midstream

 

15

   

47

 

Parent and other

 

9

   

3

 

Consolidated Capital Expenditures and Investments

 

$

1,051

   

$

1,001

 

 

 

(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
March 31,

UTILITIES

 

2017

 

2016

         

SDG&E and SoCalGas

       

Gas Sales (Bcf)(1)

 

126

   

113

 

Transportation (Bcf)(1)

 

156

   

148

 

Total Deliveries (Bcf)(1)

 

282

   

261

 
         

Total Gas Customers (Thousands)

 

6,816

   

6,782

 
         

Electric Sales (Millions of kWhs)(1)

 

3,764

   

3,773

 

Direct Access (Millions of kWhs)

 

787

   

834

 

Total Deliveries (Millions of kWhs)(1)

 

4,551

   

4,607

 
         

Total Electric Customers (Thousands)

 

1,436

   

1,428

 
         

Other Utilities

       

Natural Gas Sales (Bcf)

       

   Sempra Mexico

 

8

   

8

 

   Mobile Gas(2) (3)

 

   

13

 

   Willmut Gas(3)

 

   

1

 

Natural Gas Customers (Thousands)

       

   Sempra Mexico

 

119

   

114

 

   Mobile Gas(2) (3)

 

   

84

 

   Willmut Gas(3)

 

   

19

 

Electric Sales (Millions of kWhs)

       

   Peru

 

1,894

   

1,949

 

   Chile

 

811

   

799

 

Electric Customers (Thousands)

       

   Peru

 

1,080

   

1,058

 

   Chile

 

689

   

675

 
         

ENERGY-RELATED BUSINESSES

       
         

Sempra Infrastructure

       

Power Sold (Millions of kWhs)

       

   Sempra Mexico(4)

 

1,055

   

580

 

   Sempra Renewables(5)

 

1,014

   

767

 

   Sempra LNG & Midstream

 

265

   

221

 

 

 

(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)

STATEMENT OF OPERATIONS DATA BY SEGMENT

                                 

Three months ended March 31, 2017

 

(Dollars in millions)

SDG&E

 

SoCalGas

 

Sempra
South
American
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
LNG &
Midstream

 

Consolidating
Adjustments,
Parent &
Other

   

Total

                                   

Revenues

$

1,057

   

$

1,241

   

$

412

   

$

264

   

$

22

   

$

132

   

$

(97)

     

$

3,031

 

Cost of sales and other expenses

(616)

   

(800)

   

(326)

   

(121)

   

(15)

   

(128)

   

81

     

(1,925)

 

Depreciation and amortization

(163)

   

(126)

   

(13)

   

(36)

   

(9)

   

(10)

   

(3)

     

(360)

 

Equity earnings, before income tax

   

   

   

   

2

   

1

   

     

3

 

Other income, net

18

   

11

   

3

   

127

   

   

1

   

9

     

169

 

Income (loss) before interest and tax (1)

296

   

326

   

76

   

234

   

   

(4)

   

(10)

     

918

 

Net interest (expense) income (2)

(49)

   

(25)

   

(4)

   

(30)

   

(3)

   

6

   

(58)

     

(163)

 

Income tax (expense) benefit

(90)

   

(98)

   

(19)

   

(142)

   

11

   

(1)

   

44

     

(295)

 

Equity earnings (losses), net of income tax

   

   

1

   

(9)

   

   

   

     

(8)

 

(Earnings) losses attributable to noncontrolling interests

(2)

   

   

(7)

   

(5)

   

3

   

   

     

(11)

 

Earnings (losses)

$

155

   

$

203

   

$

47

   

$

48

   

$

11

   

$

1

   

$

(24)

     

$

441

 
                                   

Three months ended March 31, 2016

                                 

(Dollars in millions)

SDG&E

 

SoCalGas

 

Sempra
South
American
Utilities

 

Sempra
Mexico

 

Sempra
Renewables

 

Sempra
LNG &
Midstream

 

Consolidating
Adjustments,
Parent &
Other

   

Total

                                   

Revenues

$

991

   

$

1,033

   

$

400

   

$

138

   

$

7

   

$

130

   

$

(77)

     

$

2,622

 

Cost of sales and other expenses

(596)

   

(617)

   

(329)

   

(82)

   

(13)

   

(154)

   

62

     

(1,729)

 

Depreciation and amortization

(159)

   

(122)

   

(13)

   

(17)

   

(1)

   

(13)

   

(3)

     

(328)

 

Equity earnings (losses), before income tax

   

   

   

   

7

   

(29)

   

     

(22)

 

Other income, net

14

   

10

   

2

   

11

   

   

   

12

     

49

 

Income (loss) before interest and tax (1)

250

   

304

   

60

   

50

   

   

(66)

   

(6)

     

592

 

Net interest (expense) income (2)

(48)

   

(22)

   

(4)

   

(2)

   

1

   

4

   

(66)

     

(137)

 

Income tax (expense) benefit (3)

(65)

   

(83)

   

(14)

   

(40)

   

13

   

29

   

52

     

(108)

 

Equity earnings, net of income tax

   

   

2

   

15

   

   

   

     

17

 

(Earnings) losses attributable to noncontrolling interests

(1)

   

   

(6)

   

(5)

   

   

1

   

     

(11)

 

Earnings(losses) (3)

$

136

   

$

199

   

$

38

   

$

18

   

$

14

   

$

(32)

   

$

(20)

     

$

353

 

 

 

(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.

 

 

Sempra Energy Logo. (PRNewsFoto/Sempra Energy)

 

 

SOURCE Sempra Energy

For further information: Media Contact: Doug Kline, Sempra Energy, (877) 340-8875; Financial Contact: Patrick Billings, Sempra Energy, (877) 736-7727, investor@sempra.com


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