SAN DIEGO, Aug. 4, 2015 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today reported second-quarter 2015 earnings of
$295 million, or $1.17 per diluted share, compared with
$269 million, or $1.08 per diluted share, in the second quarter
2014.
Sempra Energy's second-quarter 2015 earnings included a
$36 million after-tax gain on the
sale of the second block of Sempra U.S. Gas & Power's Mesquite
Power facility and $1 million after
tax in liquefied natural gas (LNG) liquefaction development
expenses. Excluding the gain on sale of Mesquite Power and the LNG
liquefaction development expenses, Sempra Energy's adjusted
earnings in the second quarter 2015 were $260 million, or $1.03 per diluted share.
Sempra Energy's earnings for the first six months of 2015 were
$732 million, or $2.91 per diluted share, up from $516 million, or $2.07 per diluted share, during the same period
last year. In the first quarter 2015, San Diego Gas &
Electric (SDG&E) had a benefit of $13
million after tax, due to the reduction in the loss related
to the San Onofre Nuclear Generating Station (SONGS), and Sempra
U.S. Gas & Power had $4 million
in LNG liquefaction development expenses. In the first
quarter 2014, SDG&E recorded a $9
million charge related to the closure of SONGS.
Excluding items in both years, Sempra Energy's adjusted
earnings for the first six months of 2015 were $688 million, or $2.74 per diluted share, up from $525 million, or $2.11 per diluted share, in the same period last
year.
Beginning in the first quarter 2015, Southern California Gas Co.
(SoCalGas) adopted an order by the California Public Utilities
Commission (CPUC) to recognize revenues from the utility's core
activities on a seasonally adjusted basis (seasonality). The
application of seasonality in revenues will result in substantially
all of SoCalGas' annual earnings being reported in the first and
fourth quarters of the year, but will not affect full-year
operating earnings or cash flow.
The $26 million increase in Sempra
Energy's second-quarter 2015 earnings included $48 million lower earnings at SoCalGas due to
seasonality, compared with the second quarter 2014. For the
first six months of 2015, Sempra Energy's earnings were
$65 million higher at SoCalGas due to
seasonality, compared with the same period last
year.
"Our financial and operating results in the second quarter were
very strong and keep us on track to meet our 2015 adjusted earnings
guidance," said Debra L. Reed,
chairman and CEO of Sempra Energy. "Excluding the impact of
seasonality on earnings at SoCalGas, operating results for our
California utilities improved
during the first six months and our international operations
continue to provide growth opportunities."
CALIFORNIA UTILITIES
San Diego Gas & Electric
Second-quarter earnings for SDG&E were $126 million in 2015, compared with $123 million in 2014.
For the first six months of 2015, SDG&E's earnings were
$273 million, compared with
$222 million for the first six months
of 2014. Excluding the SONGS-related items in the first
quarters of 2015 and 2014, SDG&E's adjusted earnings for the
first six months were $260 million in
2015, up from $231 million in
2014.
Southern California Gas Co.
SoCalGas earnings in the second quarter 2015 were $70 million, compared with $80 million in the second quarter 2014. The
reduction in earnings was due primarily to seasonality of revenues,
which had a $48 million negative
impact for the quarter.
In the first half of 2015, SoCalGas' earnings were $284 million, compared with $158 million in the same period last year, due
primarily to higher authorized margin and the impact of the
$65 million positive seasonal
adjustment of revenues.
SEMPRA INTERNATIONAL
Sempra South American Utilities
In the second quarter 2015, Sempra South American Utilities had
earnings of $45 million, compared
with $42 million in the second
quarter 2014.
For the first six months of 2015, earnings for Sempra South
American Utilities were $86 million,
compared with $77 million in the
first six months of 2014.
Sempra Mexico
Sempra Mexico's second-quarter earnings increased to
$50 million in 2015 from $34 million in 2014, due primarily to higher
pipeline revenues.
For the first six months of 2015, Sempra Mexico had earnings of
$97 million, compared with
$76 million in the first six months
of 2014.
Last week, Sempra Energy's Mexican operating unit, IEnova,
announced an agreement to purchase PEMEX's equity interest in the
two companies' joint venture for $1.325
billion, plus the assumption of approximately $170 million in net debt. The transaction is
expected to close prior to year-end, subject to approval by IEnova
shareholders, satisfactory completion of the Mexican anti-trust
review and other customary closing conditions. The
joint-venture assets involved in the transaction include three
natural gas pipelines, an ethane pipeline, a liquid petroleum gas
(LPG) pipeline and a LPG storage terminal. In addition, under the
terms of the agreement, IEnova and PEMEX will maintain a joint
venture at the holding company for the Los Ramones Norte pipeline
project. This partnership will allow IEnova and PEMEX to
continue joint development of new projects in the future.
On July 14, IEnova announced that,
through a subsidiary, it was awarded a natural gas transportation
contract in Chihuahua by Mexico's
ComisiĆ³n Federal de Electricidad. The approximate
$110 million project will provide
natural gas under a 25-year, dollar-denominated capacity contract
to a Chihuahua power plant and interconnect with several
pipelines.
SEMPRA U.S. GAS & POWER
Sempra Renewables
Second-quarter earnings for Sempra Renewables were $19 million in 2015, compared with $18 million in 2014.
In the first half of 2015, earnings for Sempra Renewables were
$32 million, compared with
$46 million in the first half of
2014. In the first quarter 2014, Sempra U.S. Gas & Power
had a $16 million gain on the sale of
a 50-percent equity interest in the Copper Mountain Solar 3
facility.
Sempra U.S. Gas & Power has secured long-term contracts to
develop two new renewable projects at the company's Mesquite Solar
facility in Arizona. Mesquite Solar 2 will be a 100-megawatt
project with a 20-year power-purchase agreement. Mesquite
Solar 3 will be a 150-megawatt project with a 25-year
power-purchase agreement. Both power-purchase agreements are with
credit-worthy counterparties and the projects are expected to be in
service by the end of 2016.
Sempra Natural Gas
Earnings for Sempra Natural Gas in the second quarter 2015 were
$40 million, compared with
$4 million in the second quarter
2014, due primarily to a $36 million
after-tax gain recorded in the second quarter 2015 on the sale of
the second block of the Mesquite Power generating
facility.
For the first six months of 2015, Sempra Natural Gas had
earnings of $42 million, up from
$13 million in the same period last
year.
2015 ADJUSTED EARNINGS GUIDANCE
Sempra Energy today reaffirmed the company's previous 2015
adjusted earnings-per-share guidance range of $4.60 to $5. This guidance excludes the
increase in earnings from the reduction in the
SONGS-closure-related loss and the earnings impact from potential
LNG-related development expenses. Additionally, adjusted
earnings-per-share guidance for 2015 excludes the gain from the
sale of the second block of the Mesquite Power natural gas-fired
generating facility and any gain from IEnova's acquisition of
PEMEX's interest in their joint venture.
INTERNET BROADCAST
Sempra Energy will broadcast a live discussion of its earnings
results over the Internet today at 1 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 7616928.
NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures include Sempra Energy's adjusted
earnings and adjusted earnings per share for the second quarter
2015 and the first six months of 2015 and 2014, the six-month
adjusted earnings for SDG&E in 2015 and 2014, and Sempra
Energy's 2015 adjusted earnings guidance. Additional
information regarding these non-GAAP measures is in the appendix on
Table A of the second-quarter financial tables.
Sempra Energy, based in San
Diego, is a Fortune 500 energy services holding company with
2014 revenues of $11 billion.
The Sempra Energy companies' 17,000 employees serve more than 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," "intends," "depends,"
"should," "could," "would," "will," "confident," "may,"
"potential," "possible," "proposed," "target,"
"pursue," "goals," "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. Forward-looking statements are
necessarily based upon various assumptions involving judgments with
respect to the future and other risks, including, among others:
local, regional, national and international economic,
competitive, political, legislative and regulatory conditions and
developments; actions and the timing of actions, including
issuances of permits to construct and licenses for operation, by
the California Public Utilities Commission, California State
Legislature, U.S. Department of Energy, Federal Energy Regulatory
Commission, Nuclear Regulatory Commission, Atomic Safety and
Licensing Board, California Energy Commission, U.S. Environmental
Protection Agency, California Air Resources Board, and other
regulatory, governmental and environmental bodies in the United States and other countries in which
we operate; the timing and success of business development efforts
and construction, maintenance and capital projects, including risks
in obtaining, maintaining or extending permits, licenses,
certificates and other authorizations on a timely basis and risks
in obtaining adequate and competitive financing for such projects;
energy markets, including the timing and extent of changes and
volatility in commodity prices, and the impact of any protracted
reduction in oil prices from historical averages; the impact on the
value of our natural gas storage assets from low natural gas
prices, low volatility of natural gas prices and the inability to
procure favorable long-term contracts for natural gas storage
services; delays in the timing of costs incurred and the timing of
the regulatory agency authorization to recover such costs in rates
from customers; deviations from regulatory precedent or practice
that result in a reallocation of benefits or burdens among
shareholders and ratepayers; capital markets conditions, including
the availability of credit and the liquidity of our investments;
inflation, interest and currency exchange rates; the impact of
benchmark interest rates, generally Moody's A-rated utility bond
yields, on our California Utilities' cost of capital; 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 North American transmission
grid, pipeline explosions and equipment failures and the
decommissioning of San Onofre Nuclear Generating Station (SONGS);
cybersecurity threats to the energy grid, natural gas 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,
terrorist attacks that threaten system operations and critical
infrastructure, and wars; the ability to win competitively bid
infrastructure projects against a number of strong competitors
willing to aggressively bid for these projects; weather conditions,
conservation efforts, natural disasters, catastrophic accidents,
and other events that may disrupt our operations, damage our
facilities and systems, and subject us to third-party liability for
property damage or personal injuries; risks that our partners or
counterparties will be unable or unwilling to fulfill their
contractual commitments; risks posed by decisions and actions of
third parties who control the operations of investments in which we
do not have a controlling interest; risks inherent with nuclear
power facilities and radioactive materials storage, including the
catastrophic release of such materials, the disallowance of the
recovery of the investment in, or operating costs of, the nuclear
facility due to an extended outage and facility closure, and
increased regulatory oversight, including motions to modify
settlements; business, regulatory, environmental and legal
decisions and requirements; 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 of 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; the inability or
determination not to enter into long-term supply and sales
agreements or long-term firm capacity agreements due to
insufficient market interest, unattractive pricing or other
factors; the resolution of litigation; and other uncertainties, all
of which are difficult to predict and many of which 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 International, LLC, Sempra U.S. Gas & Power, LLC,
and Sempra Partners, LP, are not the same companies as the
California utilities, San Diego
Gas & Electric (SDG&E) or Southern California Gas Company
(SoCalGas), and Sempra International, LLC, Sempra U.S. Gas &
Power, LLC, and Sempra Partners, LP, are not regulated by the
California Public Utilities Commission. Sempra International's
underlying entities include Sempra Mexico and Sempra South American
Utilities. Sempra U.S. Gas & Power's underlying entities
include Sempra Renewables and Sempra Natural Gas.
SEMPRA
ENERGY
|
Table
A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
|
|
June 30,
|
(Dollars in millions,
except per share amounts)
|
2015
(1)
|
|
2014
|
|
2015
(1)
|
|
2014
|
|
(unaudited)
|
REVENUES
|
|
|
|
|
|
|
|
Utilities
|
$ 2,133
|
|
$ 2,370
|
|
$ 4,555
|
|
$ 4,855
|
Energy-related
businesses
|
234
|
|
308
|
|
494
|
|
618
|
Total revenues
|
2,367
|
|
2,678
|
|
5,049
|
|
5,473
|
EXPENSES AND OTHER
INCOME
|
|
|
|
|
|
|
|
Utilities:
|
|
|
|
|
|
|
|
Cost of natural gas
|
(239)
|
|
(395)
|
|
(585)
|
|
(1,015)
|
Cost of electric fuel and purchased power
|
(498)
|
|
(571)
|
|
(979)
|
|
(1,081)
|
Energy-related
businesses:
|
|
|
|
|
|
|
|
Cost of natural gas, electric fuel and purchased power
|
(73)
|
|
(126)
|
|
(171)
|
|
(264)
|
Other cost of sales
|
(42)
|
|
(42)
|
|
(77)
|
|
(80)
|
Operation and
maintenance
|
(713)
|
|
(729)
|
|
(1,371)
|
|
(1,405)
|
Depreciation and
amortization
|
(307)
|
|
(288)
|
|
(610)
|
|
(574)
|
Franchise fees and
other taxes
|
(96)
|
|
(92)
|
|
(203)
|
|
(197)
|
Plant closure
adjustment
|
ā
|
|
ā
|
|
21
|
|
13
|
Gain on sale of
equity interest and assets
|
62
|
|
2
|
|
62
|
|
29
|
Equity earnings,
before income tax
|
27
|
|
23
|
|
46
|
|
40
|
Other income,
net
|
37
|
|
49
|
|
76
|
|
89
|
Interest
income
|
10
|
|
5
|
|
17
|
|
9
|
Interest
expense
|
(139)
|
|
(138)
|
|
(273)
|
|
(274)
|
Income before income
taxes and equity earnings of
certain unconsolidated subsidiaries
|
396
|
|
376
|
|
1,002
|
|
763
|
Income tax
expense
|
(98)
|
|
(93)
|
|
(261)
|
|
(220)
|
Equity earnings, net
of income tax
|
22
|
|
9
|
|
37
|
|
15
|
Net income
|
320
|
|
292
|
|
778
|
|
558
|
Earnings attributable
to noncontrolling interests
|
(24)
|
|
(22)
|
|
(45)
|
|
(41)
|
Preferred dividends
of subsidiary
|
(1)
|
|
(1)
|
|
(1)
|
|
(1)
|
Earnings
|
$ 295
|
|
$ 269
|
|
$ 732
|
|
$ 516
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$ 1.19
|
|
$ 1.10
|
|
$ 2.95
|
|
$ 2.10
|
Weighted-average
number of shares outstanding, basic (thousands)
|
248,108
|
|
245,688
|
|
247,916
|
|
245,484
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$ 1.17
|
|
$ 1.08
|
|
$ 2.91
|
|
$ 2.07
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
251,491
|
|
250,061
|
|
251,264
|
|
249,816
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock
|
$ 0.70
|
|
$ 0.66
|
|
$ 1.40
|
|
$ 1.32
|
|
|
(1)
|
Reflects the impact
of seasonalization at Southern California Gas as discussed on Table
D.
|
SEMPRA
ENERGY
|
Table A
(Continued)
|
|
Sempra Energy
Consolidated
|
|
RECONCILIATION OF
SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS
EXCLUDING GAIN ON SALE IN 2015, PLANT CLOSURE ADJUSTMENTS IN 2015 AND 2014 AND LNG
LIQUEFACTION DEVELOPMENT EXPENSES IN 2015
(Unaudited)
|
|
Sempra Energy
Adjusted Earnings and Adjusted Earnings Per Share exclude 1) in
both the three months and six months ended June 30, 2015, a $36
million gain on the sale of the remaining block of the Mesquite
Power plant, 2) in the six months ended June 30, 2015, a $13
million reduction in the plant closure loss related to the San
Onofre Nuclear Generating Station (SONGS) due to California Public
Utilities Commission (CPUC) approval of a compliance filing related
to San Diego Gas & Electric Company's (SDG&E) authorized
recovery of its investment in SONGS, 3) in the six months ended
June 30, 2014, a $9 million increase in the SONGS plant closure
loss as a result of reaching a preliminary settlement agreement on
the closure, and 4) in the three months and six months ended June
30, 2015, $1 million and $5 million, respectively, of liquefied
natural gas (LNG) liquefaction development expenses. 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 more meaningful
comparison of the performance of Sempra Energy's business
operations from 2015 to 2014 and to future periods, and also as a
base for projection of future compounded annual growth rate.
Management believes that these financial measures also provide a
more meaningful measure of Sempra Energy's financial performance in
2015 in comparison to our previously issued adjusted
earnings-per-share guidance. Non-GAAP financial measures are
supplementary information that should be considered in addition to,
but not as a substitute for, the information prepared in accordance
with GAAP. The table below reconciles 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.
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
(Dollars in millions,
except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Sempra Energy GAAP
Earnings
|
|
$ 295
|
|
$ 269
|
|
$ 732
|
|
$ 516
|
Exclude:
|
|
|
|
|
|
|
|
|
Gain on
sale of Mesquite Power block 2
|
|
(36)
|
|
ā
|
|
(36)
|
|
ā
|
Plant
closure (adjustment) loss
|
|
ā
|
|
ā
|
|
(13)
|
|
9
|
LNG
liquefaction development expenses
|
|
1
|
|
ā
|
|
5
|
|
ā
|
Sempra Energy
Adjusted Earnings
|
|
$ 260
|
|
$ 269
|
|
$ 688
|
|
$ 525
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
Sempra Energy GAAP
Earnings
|
|
$ 1.17
|
|
$ 1.08
|
|
$ 2.91
|
|
$ 2.07
|
Sempra Energy
Adjusted Earnings
|
|
$ 1.03
|
|
$ 1.08
|
|
$ 2.74
|
|
$ 2.11
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
251,491
|
|
250,061
|
|
251,264
|
|
249,816
|
|
|
|
|
|
|
|
|
|
|
|
SEMPRA ENERGY 2015
ADJUSTED EARNINGS-PER-SHARE GUIDANCE RANGE
|
|
Sempra Energy 2015
Adjusted Earnings-Per-Share Guidance Range of $4.60 to $5.00
excludes 1) a $0.14 per diluted share after-tax gain from the April
2015 sale of the remaining block of the Mesquite Power plant, 2)
$0.05 per diluted share from reduction in the first quarter of 2015
in the plant closure loss related to SONGS due to CPUC approval of
a compliance filing related to SDG&E's authorized recovery of
its investment in SONGS, 3) $0.05 per diluted share for estimated
after-tax development expenses associated with the potential
expansion of our LNG business, and 4) an anticipated noncash gain
from the remeasurement of our equity method investment in
Gasoductos de Chihuahua (GdC), a 50-50 joint venture between our
Mexican subsidiary, IEnova, and PetrĆ³leos Mexicanos (PEMEX), in
connection with the pending acquisition by IEnova of PEMEX's
50-percent interest in GdC. Sempra Energy 2015 Adjusted
Earnings-Per-Share Guidance is a non-GAAP financial measure.
Because of the significance and nature of these excluded items,
management believes this non-GAAP measure provides better clarity
into the ongoing results of the business and the comparability of
such results to prior and future periods. Sempra Energy 2015
Adjusted Earnings-Per-Share Guidance should not be considered an
alternative to diluted earnings per share determined in accordance
with GAAP. As the pending GdC transaction is not expected to close
until the fourth quarter of 2015, the gain cannot be determined at
this time, and accordingly, we are not able to provide a
corresponding GAAP equivalent to our 2015 Adjusted
Earnings-Per-Share Guidance.
|
|
|
San Diego Gas
& Electric Company (SDG&E)
|
|
RECONCILIATION OF
SDG&E GAAP EARNINGS TO SDG&E ADJUSTED EARNINGS EXCLUDING
PLANT CLOSURE ADJUSTMENTS IN 2015 AND 2014 (Unaudited)
|
|
SDG&E Adjusted
Earnings exclude 1) in the six months ended June 30, 2015, a $13
million reduction in the plant closure loss related to SONGS due to
CPUC approval of a compliance filing related to SDG&E's
authorized recovery of its investment in SONGS, and 2) in the six
months ended June 30, 2014, a $9 million increase in the SONGS
plant closure loss as a result of reaching a preliminary settlement
agreement on the closure. SDG&E Adjusted Earnings is a non-GAAP
financial measure. Because of the significance and nature of these
items, management believes that this non-GAAP financial measure
provides a more meaningful comparison of the performance of
SDG&E's business operations from 2015 to 2014 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 this non-GAAP financial
measure to SDG&E Earnings, which we consider to be the most
directly comparable financial measure calculated in accordance with
GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
(Dollars in
millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
SDG&E GAAP
Earnings
|
|
$ 126
|
|
$ 123
|
|
$ 273
|
|
$ 222
|
Exclude:
|
|
|
|
|
|
|
|
|
Plant
closure (adjustment) loss
|
|
ā
|
|
ā
|
|
(13)
|
|
9
|
SDG&E Adjusted
Earnings
|
|
$ 126
|
|
$ 123
|
|
$ 260
|
|
$ 231
|
|
|
|
|
|
|
|
|
|
SEMPRA
ENERGY
|
Table
B
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
(Dollars in
millions)
|
2015
|
|
2014(1)
|
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 636
|
|
$
570
|
|
Restricted
cash
|
8
|
|
11
|
|
Accounts receivable,
net
|
1,154
|
|
1,394
|
|
Due from
unconsolidated affiliates
|
4
|
|
38
|
|
Income taxes
receivable
|
100
|
|
45
|
|
Deferred income
taxes
|
99
|
|
305
|
|
Inventories
|
266
|
|
396
|
|
Regulatory balancing
accounts ā undercollected
|
798
|
|
746
|
|
Fixed-price contracts
and other derivatives
|
85
|
|
93
|
|
Asset held for sale,
power plant
|
ā
|
|
293
|
|
Other
|
356
|
|
293
|
|
|
|
Total current
assets
|
3,506
|
|
4,184
|
|
|
|
|
|
|
|
Investments and other
assets:
|
|
|
|
|
Restricted
cash
|
17
|
|
29
|
|
Due from
unconsolidated affiliates
|
169
|
|
188
|
|
Regulatory
assets
|
3,095
|
|
3,031
|
|
Nuclear
decommissioning trusts
|
1,145
|
|
1,131
|
|
Investments
|
2,929
|
|
2,848
|
|
Goodwill
|
885
|
|
931
|
|
Other intangible
assets
|
410
|
|
415
|
|
Dedicated assets in
support of certain benefit plans
|
483
|
|
512
|
|
Sundry
|
674
|
|
561
|
|
|
|
Total investments and
other assets
|
9,807
|
|
9,646
|
Property, plant and
equipment, net
|
26,693
|
|
25,902
|
Total
assets
|
$ 40,006
|
|
$ 39,732
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
$ 738
|
|
$ 1,733
|
|
Accounts
payable
|
1,014
|
|
1,353
|
|
Due to unconsolidated
affiliate
|
ā
|
|
2
|
|
Dividends and
interest payable
|
300
|
|
282
|
|
Accrued compensation
and benefits
|
271
|
|
373
|
|
Current portion of
long-term debt
|
1,273
|
|
469
|
|
Fixed-price contracts
and other derivatives
|
55
|
|
55
|
|
Customer
deposits
|
150
|
|
153
|
|
Other
|
598
|
|
649
|
|
|
|
Total current
liabilities
|
4,399
|
|
5,069
|
Long-term
debt
|
12,626
|
|
12,167
|
|
|
|
|
|
|
|
Deferred credits and
other liabilities:
|
|
|
|
|
Customer advances for
construction
|
144
|
|
144
|
|
Pension and other
postretirement benefit plan obligations, net of plan
assets
|
1,101
|
|
1,064
|
|
Deferred income
taxes
|
3,016
|
|
3,003
|
|
Deferred investment
tax credits
|
35
|
|
37
|
|
Regulatory
liabilities arising from removal obligations
|
2,762
|
|
2,741
|
|
Asset retirement
obligations
|
2,067
|
|
2,048
|
|
Fixed-price contracts
and other derivatives
|
300
|
|
255
|
|
Deferred credits and
other
|
1,081
|
|
1,104
|
|
|
|
Total deferred
credits and other liabilities
|
10,506
|
|
10,396
|
Equity:
|
|
|
|
|
Total Sempra Energy
shareholders' equity
|
11,683
|
|
11,326
|
|
Preferred stock of
subsidiary
|
20
|
|
20
|
|
Other noncontrolling
interests
|
772
|
|
754
|
|
|
|
Total
equity
|
12,475
|
|
12,100
|
Total liabilities and
equity
|
$ 40,006
|
|
$ 39,732
|
|
|
(1)
|
Derived from audited
financial statements.
|
SEMPRA
ENERGY
|
Table
C
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Six months ended June
30,
|
(Dollars in
millions)
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
Cash Flows from
Operating Activities
|
|
|
|
|
Net income
|
|
$ 778
|
|
$ 558
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
610
|
|
574
|
|
Deferred income taxes
and investment tax credits
|
|
203
|
|
105
|
|
Gain on sale of
equity interest and assets
|
|
(62)
|
|
(29)
|
|
Plant closure
adjustment
|
|
(21)
|
|
(13)
|
|
Equity
earnings
|
|
(83)
|
|
(55)
|
|
Fixed-price contracts
and other derivatives
|
|
ā
|
|
(17)
|
|
Other
|
|
(8)
|
|
(6)
|
Net change in other
working capital components
|
|
(116)
|
|
(125)
|
Changes in other
assets
|
|
(89)
|
|
21
|
Changes in other
liabilities
|
|
7
|
|
21
|
|
Net cash provided by
operating activities
|
|
1,219
|
|
1,034
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
Expenditures for
property, plant and equipment
|
|
(1,466)
|
|
(1,513)
|
Expenditures for
investments and acquisition of business
|
|
(161)
|
|
(160)
|
Proceeds from sale of
equity interest and assets, net of cash sold
|
|
347
|
|
66
|
Distributions from
investments
|
|
9
|
|
6
|
Purchases of nuclear
decommissioning and other trust assets
|
|
(229)
|
|
(356)
|
Proceeds from sales
by nuclear decommissioning and other trusts
|
|
221
|
|
350
|
Decrease in
restricted cash
|
|
49
|
|
87
|
Increase in
restricted cash
|
|
(34)
|
|
(87)
|
Advances to
unconsolidated affiliates
|
|
(20)
|
|
(24)
|
Repayments of
advances to unconsolidated affiliates
|
|
74
|
|
ā
|
Other
|
|
9
|
|
10
|
|
Net cash used in
investing activities
|
|
(1,201)
|
|
(1,621)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
Common dividends
paid
|
|
(308)
|
|
(301)
|
Preferred dividends
paid by subsidiary
|
|
(1)
|
|
(1)
|
Issuances of common
stock
|
|
31
|
|
28
|
Repurchases of common
stock
|
|
(66)
|
|
(37)
|
Issuances of debt
(maturities greater than 90 days)
|
|
1,547
|
|
2,345
|
Payments on debt
(maturities greater than 90 days)
|
|
(846)
|
|
(1,475)
|
Decrease in
short-term debt, net
|
|
(339)
|
|
(54)
|
Net distributions to
noncontrolling interests
|
|
(14)
|
|
(23)
|
Other
|
|
46
|
|
(10)
|
|
Net cash provided by
financing activities
|
|
50
|
|
472
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(2)
|
|
ā
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
66
|
|
(115)
|
Cash and cash
equivalents, January 1
|
|
570
|
|
904
|
Cash and cash
equivalents, June 30
|
|
$ 636
|
|
$ 789
|
SEMPRA
ENERGY
|
Table
D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS AND CAPITAL EXPENDITURES &
INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
(Dollars in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
Earnings
(Losses)
|
|
|
|
|
|
|
|
California
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas &
Electric
|
$ 126
|
|
$ 123
|
|
$ 273
|
|
$ 222
|
Southern California
Gas
|
70
|
(1)
|
80
|
|
284
|
(1)
|
158
|
Sempra
International:
|
|
|
|
|
|
|
|
Sempra South American
Utilities
|
45
|
|
42
|
|
86
|
|
77
|
Sempra
Mexico
|
50
|
|
34
|
|
97
|
|
76
|
Sempra U.S. Gas &
Power:
|
|
|
|
|
|
|
|
Sempra
Renewables
|
19
|
|
18
|
|
32
|
|
46
|
Sempra Natural
Gas
|
40
|
|
4
|
|
42
|
|
13
|
Parent and
other
|
(55)
|
|
(32)
|
|
(82)
|
|
(76)
|
Earnings
|
$ 295
|
|
$ 269
|
|
$ 732
|
|
$ 516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
(Dollars in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(unaudited)
|
Capital
Expenditures and Investments
|
|
|
|
|
|
|
|
California
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas &
Electric
|
$ 245
|
|
$ 249
|
|
$ 600
|
|
$ 543
|
Southern California
Gas
|
288
|
|
240
|
|
603
|
|
500
|
Sempra
International:
|
|
|
|
|
|
|
|
Sempra South American
Utilities
|
35
|
|
58
|
|
66
|
|
90
|
Sempra
Mexico
|
65
|
|
114
|
|
120
|
|
189
|
Sempra U.S. Gas &
Power:
|
|
|
|
|
|
|
|
Sempra
Renewables
|
19
|
|
165
|
|
41
|
|
276
|
Sempra Natural
Gas
|
144
|
|
27
|
|
169
|
|
67
|
Parent and
other
|
17
|
|
7
|
|
28
|
|
8
|
Consolidated Capital
Expenditures and Investments
|
$ 813
|
|
$ 860
|
|
$1,627
|
|
$1,673
|
|
|
(1)
|
Results for the three
months and six months ended June 30, 2015 for Southern California
Gas (SoCalGas) reflect the adoption of a California Public
Utilities Commission decision authorizing SoCalGas to recognize
annual revenue for core natural gas customers using seasonal
factors, instead of recognizing such revenue ratably over the year
as was previously authorized. For the three months and six months
ended June 30, 2015 compared to the same periods in 2014, this
"seasonalization" resulted in $48 million lower earnings and $65
million higher earnings, respectively. While this seasonalization
will cause variability in results from quarter to quarter within
the year, it will not impact full-year 2015 results.
|
SEMPRA
ENERGY
|
Table
E
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING
STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
UTILITIES
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
California
Utilities - SDG&E and SoCalGas
|
|
|
|
|
|
|
|
|
|
Gas Sales
(Bcf)(1)
|
|
73
|
|
68
|
|
|
172
|
|
180
|
Transportation
(Bcf)(1)
|
|
145
|
|
158
|
|
|
300
|
|
320
|
Total Deliveries
(Bcf)(1)
|
|
218
|
|
226
|
|
|
472
|
|
500
|
Total Gas Customers
(Thousands)
|
|
|
|
|
|
|
6,753
|
|
6,720
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Sales
(Millions of kWhs)(1)
|
|
3,644
|
|
3,827
|
|
|
7,476
|
|
7,724
|
Direct Access
(Millions of kWhs)
|
|
829
|
|
816
|
|
|
1,696
|
|
1,704
|
Total Deliveries
(Millions of kWhs)(1)
|
|
4,473
|
|
4,643
|
|
|
9,172
|
|
9,428
|
Total Electric
Customers (Thousands)
|
|
|
|
|
|
|
1,421
|
|
1,413
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Utilities
|
|
|
|
|
|
|
|
|
|
Natural Gas Sales
(Bcf)
|
|
|
|
|
|
|
|
|
|
Sempra Mexico
|
|
6
|
|
5
|
|
|
13
|
|
11
|
Mobile Gas(2)
|
|
11
|
|
9
|
|
|
24
|
|
20
|
Willmut Gas
|
|
1
|
|
1
|
|
|
2
|
|
2
|
Natural Gas Customers
(Thousands)
|
|
|
|
|
|
|
|
|
|
Sempra Mexico
|
|
|
|
|
|
|
110
|
|
102
|
Mobile Gas(2)
|
|
|
|
|
|
|
85
|
|
86
|
Willmut Gas
|
|
|
|
|
|
|
19
|
|
19
|
Electric Sales
(Millions of kWhs)
|
|
|
|
|
|
|
|
|
|
Peru
|
|
1,918
|
|
1,817
|
|
|
3,841
|
|
3,668
|
Chile
|
|
704
|
|
708
|
|
|
1,496
|
|
1,496
|
Electric Customers
(Thousands)
|
|
|
|
|
|
|
|
|
|
Peru
|
|
|
|
|
|
|
1,042
|
|
1,013
|
Chile
|
|
|
|
|
|
|
665
|
|
648
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY-RELATED
BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra
International
|
|
|
|
|
|
|
|
|
|
Power Sold (Millions
of kWhs)
|
|
|
|
|
|
|
|
|
|
Sempra Mexico
|
|
733
|
|
830
|
|
|
1,643
|
|
1,932
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra U.S. Gas
& Power
|
|
|
|
|
|
|
|
|
|
Power Sold (Millions
of kWhs)
|
|
|
|
|
|
|
|
|
|
Sempra Renewables(3)
|
|
762
|
|
641
|
|
|
1,489
|
|
1,279
|
Sempra Natural Gas(4)
|
|
440
|
|
1,183
|
|
|
1,813
|
|
2,435
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes intercompany
sales.
|
(2)
|
Includes
transportation.
|
(3)
|
Includes 50% of total
power sold related to solar and wind projects in which Sempra
Energy has a 50% ownership. These subsidiaries are not consolidated
within Sempra Energy, and the related investments are accounted for
under the equity method.
|
(4)
|
Sempra Natural Gas
sold the remaining 625-megawatt block of its Mesquite Power natural
gas-fired power plant in April 2015.
|
|
SEMPRA ENERGY
|
|
Table F (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of
Operations Data by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
SDG&E
|
|
SoCalGas
|
|
Sempra South American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra Natural
Gas
|
|
Consolidating
Adjustments, Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 972
|
|
$ 780
|
(1)
|
$
389
|
|
$ 152
|
|
$
10
|
|
$ 155
|
|
$
(91)
|
|
|
$2,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and
other expenses
|
|
(596)
|
|
(573)
|
|
(311)
|
|
(90)
|
|
(12)
|
|
(156)
|
|
77
|
|
|
(1,661)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(149)
|
|
(113)
|
|
(12)
|
|
(17)
|
|
(1)
|
|
(12)
|
|
(3)
|
|
|
(307)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
61
|
|
-
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings,
before income tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10
|
|
17
|
|
-
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
9
|
|
9
|
|
6
|
|
6
|
|
1
|
|
-
|
|
6
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest and tax (2)
|
|
236
|
|
103
|
|
73
|
|
51
|
|
8
|
|
65
|
|
(11)
|
|
|
525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
(expense) income (3)
|
|
(52)
|
|
(17)
|
|
(3)
|
|
(4)
|
|
-
|
|
2
|
|
(56)
|
|
|
(130)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(54)
|
|
(16)
|
(1)
|
(18)
|
|
(5)
|
|
11
|
|
(27)
|
|
11
|
|
|
(98)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings, net
of income tax
|
|
-
|
|
-
|
|
-
|
|
22
|
|
-
|
|
-
|
|
-
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Earnings) losses
attributable to noncontrolling interests
|
|
(4)
|
|
-
|
|
(7)
|
|
(14)
|
|
-
|
|
-
|
|
1
|
|
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(losses)
|
|
$ 126
|
|
$ 70
|
(1)
|
$
45
|
|
$ 50
|
|
$
19
|
|
$
40
|
|
$
(55)
|
|
|
$ 295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
SDG&E
|
|
SoCalGas
|
|
Sempra South American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra Natural
Gas
|
|
Consolidating
Adjustments, Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$1,063
|
|
$ 917
|
|
$
390
|
|
$ 186
|
|
$
9
|
|
$ 236
|
|
$
(123)
|
|
|
$2,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and
other expenses
|
|
(690)
|
|
(688)
|
|
(310)
|
|
(134)
|
|
(11)
|
|
(225)
|
|
103
|
|
|
(1,955)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(131)
|
|
(107)
|
|
(13)
|
|
(15)
|
|
(2)
|
|
(16)
|
|
(4)
|
|
|
(288)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
asset
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings,
before income tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9
|
|
14
|
|
-
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
7
|
|
3
|
|
4
|
|
12
|
|
1
|
|
-
|
|
22
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest and tax (2)
|
|
249
|
|
125
|
|
73
|
|
49
|
|
6
|
|
9
|
|
(2)
|
|
|
509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
(3)
|
|
(51)
|
|
(17)
|
|
(6)
|
|
(3)
|
|
(1)
|
|
(1)
|
|
(55)
|
|
|
(134)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(69)
|
|
(28)
|
|
(18)
|
|
(12)
|
|
13
|
|
(3)
|
|
24
|
|
|
(93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings, net
of income tax
|
|
-
|
|
-
|
|
-
|
|
9
|
|
-
|
|
-
|
|
-
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Earnings) losses
attributable to noncontrolling interests
|
|
(6)
|
|
-
|
|
(7)
|
|
(9)
|
|
-
|
|
(1)
|
|
1
|
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(losses)
|
|
$ 123
|
|
$ 80
|
|
$
42
|
|
$ 34
|
|
$
18
|
|
$
4
|
|
$
(32)
|
|
|
$ 269
|
|
|
(1)
|
Reflects the impact
of seasonalization at Southern California Gas as discussed on Table
D.
|
(2)
|
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.
|
(3)
|
Includes interest
income, interest expense and preferred dividends of
subsidiary.
|
|
SEMPRA ENERGY
|
|
Table F (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of
Operations Data by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
SDG&E
|
|
SoCalGas
|
|
Sempra South American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra Natural
Gas
|
|
Consolidating
Adjustments, Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$1,938
|
|
$ 1,828
|
(1)
|
$
778
|
|
$ 315
|
|
$
18
|
|
$ 352
|
|
$
(180)
|
|
|
$5,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and
other expenses
|
|
(1,156)
|
|
(1,188)
|
|
(625)
|
|
(192)
|
|
(23)
|
|
(352)
|
|
150
|
|
|
(3,386)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(294)
|
|
(226)
|
|
(25)
|
|
(34)
|
|
(3)
|
|
(24)
|
|
(4)
|
|
|
(610)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant closure
adjustment
|
|
21
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
61
|
|
-
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings,
before income tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12
|
|
34
|
|
-
|
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
18
|
|
17
|
|
9
|
|
15
|
|
1
|
|
-
|
|
16
|
|
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest and tax (2)
|
|
527
|
|
431
|
|
138
|
|
104
|
|
5
|
|
71
|
|
(18)
|
|
|
1,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
(3)
|
|
(104)
|
|
(36)
|
|
(4)
|
|
(7)
|
|
(1)
|
|
-
|
|
(105)
|
|
|
(257)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(142)
|
|
(111)
|
(1)
|
(34)
|
|
(13)
|
|
28
|
|
(29)
|
|
40
|
|
|
(261)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity (losses)
earnings, net of income tax
|
|
-
|
|
-
|
|
(1)
|
|
38
|
|
-
|
|
-
|
|
-
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Earnings) losses
attributable to noncontrolling interests
|
|
(8)
|
|
-
|
|
(13)
|
|
(25)
|
|
-
|
|
-
|
|
1
|
|
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(losses)
|
|
$ 273
|
|
$ 284
|
(1)
|
$
86
|
|
$ 97
|
|
$
32
|
|
$
42
|
|
$
(82)
|
|
|
$ 732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
SDG&E
|
|
SoCalGas
|
|
Sempra South American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra Natural
Gas
|
|
Consolidating
Adjustments, Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,050
|
|
$ 2,002
|
|
$
768
|
|
$ 387
|
|
$
15
|
|
$ 496
|
|
$
(245)
|
|
|
$5,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and
other expenses
|
|
(1,339)
|
|
(1,539)
|
|
(611)
|
|
(269)
|
|
(23)
|
|
(468)
|
|
207
|
|
|
(4,042)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(261)
|
|
(212)
|
|
(27)
|
|
(31)
|
|
(3)
|
|
(33)
|
|
(7)
|
|
|
(574)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant closure
adjustment
|
|
13
|
(4)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
equity interest and asset
|
|
-
|
|
-
|
|
2
|
|
-
|
|
27
|
|
-
|
|
-
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings,
before income tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
11
|
|
29
|
|
-
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
20
|
|
7
|
|
5
|
|
22
|
|
1
|
|
1
|
|
33
|
|
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest and tax (2)
|
|
483
|
|
258
|
|
137
|
|
109
|
|
28
|
|
25
|
|
(12)
|
|
|
1,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
(3)
|
|
(101)
|
|
(34)
|
|
(11)
|
|
(7)
|
|
(1)
|
|
(2)
|
|
(110)
|
|
|
(266)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(152)
|
|
(66)
|
|
(33)
|
|
(24)
|
|
19
|
|
(9)
|
|
45
|
|
|
(220)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity (losses)
earnings, net of income tax
|
|
-
|
|
-
|
|
(2)
|
|
17
|
|
-
|
|
-
|
|
-
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Earnings) losses
attributable to noncontrolling interests
|
|
(8)
|
|
-
|
|
(14)
|
|
(19)
|
|
-
|
|
(1)
|
|
1
|
|
|
(41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(losses)
|
|
$ 222
|
|
$ 158
|
|
$
77
|
|
$ 76
|
|
$
46
|
|
$
13
|
|
$
(76)
|
|
|
$ 516
|
|
|
(1)
|
Reflects the impact
of seasonalization at Southern California Gas as discussed on Table
D.
|
(2)
|
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.
|
(3)
|
Includes interest
income, interest expense and preferred dividends of
subsidiary.
|
(4)
|
After taxes,
including a $17 million charge to reduce certain tax regulatory
assets attributed to SONGS, the adjustment to loss from plant
closure is a $9 million charge to earnings.
|
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SOURCE Sempra Energy