SAN DIEGO, Aug. 4, 2016 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today reported second-quarter 2016 earnings of
$16 million, or $0.06 per diluted share, compared with
$295 million, or $1.17 per diluted share, in the second quarter
2015.
These results reflect certain significant items as described in
the following table of GAAP earnings, reconciled to adjusted
earnings, for the second quarter and first six months of 2016 and
2015:
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Three months
ended
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Six months
ended
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June 30,
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June 30,
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(Unaudited;
Dollars, except EPS, and shares, in millions)
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2016
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2015
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2016
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2015
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GAAP
Earnings
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$ 16
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$ 295
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$ 335
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$ 732
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Loss Related to
Rockies Express Pipeline Sale
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-
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-
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27
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-
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Permanent Releases of
Pipeline Capacity
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123
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-
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123
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-
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Tax Repairs
Adjustments Related to General Rate Case
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80
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-
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80
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-
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Retroactive Q1-16
Benefit from General Rate Case
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(21)
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-
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-
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-
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Deferred Tax
Associated with TdM Power Plant Held for Sale
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2
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-
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26
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-
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Adjustment to Loss on
SONGS Plant Closure
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-
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-
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-
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(13)
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Gain on Sale of
Mesquite Power Block 2
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-
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(36)
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-
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(36)
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Adjusted
Earnings(1)
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$ 200
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$ 259
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$ 591
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$ 683
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Diluted
weighted-average shares outstanding
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252
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251
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252
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251
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GAAP EPS
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$0.06
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$1.17
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$1.33
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$2.91
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Adjusted
EPS(1)
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$0.79
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$1.03
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$2.35
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$2.72
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(1)
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Sempra Energy
adjusted earnings and adjusted EPS are non-GAAP financial measures.
See Table A in the second-quarter financial tables for information
regarding non-GAAP financial measures and descriptions of
adjustments above. Adjusted earnings and adjusted EPS for the three
months and six months ended June 30, 2015, have been revised to
include after-tax LNG development expenses of $1 million and $5
million, respectively, for consistency with the comparable periods
in 2016. LNG development expenses are included in adjusted earnings
in 2016.
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Adjusted earnings in the second quarter 2016 were $200 million, or $0.79 per diluted share, compared with
$259 million, or $1.03 per diluted share, in the second quarter
2015. The lower adjusted earnings in this year's second quarter
were due primarily to $19 million of
after-tax losses in the second quarter 2016, compared with gains of
$5 million after-tax in second
quarter 2015, both resulting from natural gas price movements on
inventories sold forward at Sempra U.S. Gas & Power. The
majority of these losses related to natural gas prices are expected
to reverse by year-end. Additional items impacting
second-quarter 2016 results were lower equity earnings of
$8 million after tax related to the
sale of the company's stake in the Rockies Express Pipeline (REX)
and recording by Southern California Gas Co. (SoCalGas) of an
after-tax impairment of $13 million
associated with the final decision by the California Public
Utilities Commission (CPUC) on the proposed North-South
Pipeline. In last year's second quarter, SoCalGas had
$13 million higher after-tax earnings
from a retroactive rate base increase approved by the CPUC in April
2015.
Sempra Energy's earnings for the first six months of 2016 were
$335 million, or $1.33 per diluted share, compared with
$732 million, or $2.91 per diluted share, in the first six months
of 2015. Adjusted earnings for the first six months of 2016
were $591 million, or $2.35 per diluted share, compared with
$683 million, or $2.72 per diluted share, in the same period last
year.
On June 23, the CPUC issued a
final General Rate Case decision for San Diego Gas & Electric
(SDG&E) and SoCalGas for 2016-18 that, largely, was consistent
with the settlement agreements entered into last year by the two
utilities. The impact of the 2016 authorized margin now has
been recorded retroactive to Jan. 1,
2016.
"We are pleased to have received the final rate case decision
for our California utilities from
the CPUC and to have completed the sale of our stake in the Rockies
Express Pipeline during the quarter," said Debra L. Reed, chairman and CEO of Sempra
Energy. "With the addition of the Mexican marine pipeline and
the acquisition of a new wind farm in Michigan, we continue to add new projects both
domestically and internationally that support our long-term growth
strategy. We expect to meet our adjusted earnings-per-share
guidance for 2016 of $4.60 to $5 and
to achieve approximately 12-percent compound annual adjusted
earnings-per-share growth from 2016 through 2020."
CALIFORNIA UTILITIES
San Diego Gas & Electric
Second-quarter 2016 earnings for SDG&E were $100 million, compared with $126 million in the second quarter 2015. In
the most recent quarter, due to the final General Rate Case
decision, SDG&E recorded a $31
million after-tax refund to ratepayers of benefits from tax
repairs deductions, offset by a $9
million after-tax retroactive benefit for first-quarter 2016
earnings.
For the first six months of 2016, SDG&E's earnings were
$229 million, compared with
$273 million in the same period last
year.
Southern California Gas Co.
In the second quarter 2016, SoCalGas recorded a net loss of
$1 million, compared with earnings of
$70 million in last year's second
quarter. In the most recent quarter, due to the final General
Rate Case decision, SoCalGas recorded a $49
million after-tax refund to ratepayers of benefits from tax
repairs deductions, offset by a $12
million after-tax retroactive benefit for first-quarter 2016
earnings. SoCalGas also recorded an after-tax impairment of
$13 million in the second quarter
2016 related to the CPUC's recent decision denying the proposed
North-South Pipeline.
In the first half of 2016, SoCalGas' earnings were $194 million, compared with $284 million in the first half of 2015.
SoCalGas today said its updated estimate of certain costs
related to the Aliso Canyon natural gas leak is $717 million, $679
million of which has been recorded as an insurance
receivable at June 30, 2016.
SoCalGas has begun collecting insurance recoveries, with
$34 million collected to date.
SEMPRA INTERNATIONAL
Sempra South American Utilities
In the second quarter 2016, Sempra South American Utilities had
earnings of $43 million, compared
with $45 million in the second
quarter 2015.
For the first six months of 2016, earnings for Sempra South
American Utilities were $81 million,
compared with $86 million in the
first six months last
year.
Sempra Mexico
Sempra Mexico's second-quarter earnings increased to
$57 million in 2016 from $50 million in 2015, due primarily to favorable
foreign currency effects.
For the first six months of 2016, Sempra Mexico had earnings of
$74 million, compared with
$97 million in the same period last
year, primarily due to a $26 million
deferred tax charge in 2016 associated with holding the
Termoeléctrica de Mexicali power
plant for sale.
Last month, Sempra Energy's Mexican subsidiary, IEnova,
announced a restructured agreement to purchase PEMEX's 50-percent
interest in its joint venture. Originally announced last year, the
estimated $1.1 billion transaction
involves IEnova's acquisition from the joint venture of three
natural gas pipelines, an ethane pipeline, a liquid petroleum gas
(LPG) pipeline and a LPG storage terminal. The transaction is
expected to close in the third quarter 2016, subject to regulatory
approvals and customary closing conditions.
In June, IEnova announced that its Infraestructura Marina del
Golfo joint venture with TransCanada Corp. – owned 60 percent by
TransCanada and 40 percent by IEnova – was awarded a contract by
Mexico's Comisión Federal de
Electricidad (CFE) to build, own and operate a 497-mile,
$2.1 billion marine pipeline to
transport natural gas between Tuxpan, Veracruz, and Brownsville, Texas. The project, which has an
anticipated in-service date of late 2018, will provide natural gas
to new and existing CFE power plants under a 25-year capacity
contract.
SEMPRA U.S. GAS & POWER
Sempra Renewables
Second-quarter 2016 earnings for Sempra Renewables were
$12 million, compared with
$19 million in 2015, due primarily to
lower investment tax credits from solar projects placed into
service last year.
In the first half of 2016, earnings for Sempra Renewables were
$25 million, compared with
$32 million in the first half of last
year, due primarily to the lower investment tax credits.
Last month, Sempra U.S. Gas & Power announced its
acquisition of the 100-megawatt Apple Blossom wind project in
Michigan from Geronimo Energy,
LLC. The project, fully contracted under a 15-year agreement,
is expected to be completed by year-end 2017.
Sempra Natural Gas
In the second quarter 2016, Sempra Natural Gas recorded a net
loss of $149 million, compared with
earnings of $40 million in the second
quarter 2015, due primarily to three factors: a $123 million after-tax loss on permanent releases
of pipeline capacity; $8 million in
lower equity earnings after tax, due to the sale of Sempra U.S. Gas
& Power's 25-percent stake in the REX Pipeline; and
$19 million in after-tax losses in
the second quarter 2016, compared with after-tax gains of
$5 million in second quarter 2015,
both resulting from natural gas price movements on inventories sold
forward. The company expects the majority of these losses related
to natural gas prices will be reversed by year-end. The REX sale
was completed in May with cash proceeds of $443 million. In last year's second
quarter, Sempra Natural Gas recorded a $36
million after-tax gain related to the sale of the second
block of the Mesquite Power facility.
For the first six months of 2016, Sempra Natural Gas recorded a
net loss of $185 million, compared
with earnings of $42 million in the
first six months of 2015.
2016 ADJUSTED EARNINGS GUIDANCE
Sempra Energy today reaffirmed its 2016 adjusted
earnings-per-share guidance range of $4.60
to $5.
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 1077410.
NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures include Sempra Energy's adjusted
earnings and adjusted earnings per share for both the second
quarter and first six months of 2016 and 2015. Sempra
Energy's adjusted earnings guidance for 2016, along with the
projected adjusted earnings-per-share compound annual growth rate
from 2016 to 2020, also are non-GAAP financial measures.
Information regarding these non-GAAP measures is in the appendix on
Table A of the second-quarter financial tables.
Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services
holding company with 2015 revenues of more than $10 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," "assumes,"
"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, legal and regulatory conditions, decisions and
developments; actions and the timing of actions, including general
rate case decisions, new regulations, issuances of permits to
construct, operate and maintain facilities and equipment and to use
land, franchise agreements and licenses for operation, by the
California Public Utilities Commission, California State
Legislature, U.S. Department of Energy, California Division of Oil,
Gas, and Geothermal Resources, Federal Energy Regulatory
Commission, Nuclear Regulatory Commission, California Energy
Commission, U.S. Environmental Protection Agency, Pipeline and
Hazardous Materials Safety Administration, California Air Resources
Board, South Coast Air Quality Management District, Los Angeles
County Department of Public Health, Mexican Competition Commission,
states, cities and counties, and other regulatory and governmental
bodies in the 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, risks in obtaining the consent of
our partners, and risks in obtaining adequate and competitive
financing for such projects; 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, and delays
in, or disallowance or denial of, regulatory agency
authorization to recover costs in rates from customers; 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, moratoriums on the ability to withdraw natural gas from or
inject natural gas into storage facilities, pipeline explosions and
equipment failures; energy markets; the timing and extent of
changes and volatility in commodity prices; the impact on the value
of our natural gas storage and related assets and our investments
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; risks posed by decisions and actions
of third parties who control the operations of investments in which
we do not have a controlling interest, and risks that our partners
or counterparties will be unable (due to liquidity issues,
bankruptcy or otherwise) or unwilling to fulfill their contractual
commitments; weather conditions, natural disasters,
catastrophic accidents, equipment failures, terrorist attacks and
other events that may disrupt our operations, damage our facilities
and systems, cause the release of greenhouse gasses, radioactive
materials and harmful emissions, 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, 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 and employees; failure to obtain regulatory approval for
projects required to enhance safety and reliability; the ability to
win competitively bid infrastructure projects against a number of
strong competitors willing to aggressively bid for these projects;
capital markets conditions, including the availability of credit
and liquidity of our investments, and inflation, interest and
currency exchange rates; disallowance of regulatory assets
associated with, or decommissioning costs of, the San Onofre
Nuclear Generating Station facility due to increased regulatory
oversight, including motions to modify settlements; 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 and increased reliance on natural gas and
natural gas transmission systems; 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; 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
|
|
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|
|
|
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|
|
|
|
|
|
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|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
|
|
June 30,
|
(Dollars in millions,
except per share amounts)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(unaudited)
|
REVENUES
|
|
|
|
|
|
|
|
Utilities
|
$
1,994
|
|
$
2,133
|
|
$
4,436
|
|
$
4,555
|
Energy-related
businesses
|
162
|
|
234
|
|
342
|
|
494
|
Total revenues
|
2,156
|
|
2,367
|
|
4,778
|
|
5,049
|
EXPENSES AND OTHER
INCOME
|
|
|
|
|
|
|
|
Utilities:
|
|
|
|
|
|
|
|
Cost of natural gas
|
(183)
|
|
(239)
|
|
(494)
|
|
(585)
|
Cost of electric fuel and purchased power
|
(561)
|
|
(498)
|
|
(1,076)
|
|
(979)
|
Energy-related
businesses:
|
|
|
|
|
|
|
|
Cost of natural gas, electric fuel and purchased power
|
(62)
|
|
(73)
|
|
(118)
|
|
(171)
|
Other cost of sales
|
(226)
|
|
(42)
|
|
(261)
|
|
(77)
|
Operation and
maintenance
|
(727)
|
|
(713)
|
|
(1,428)
|
|
(1,371)
|
Depreciation and
amortization
|
(314)
|
|
(307)
|
|
(642)
|
|
(610)
|
Franchise fees and
other taxes
|
(96)
|
|
(96)
|
|
(207)
|
|
(203)
|
Plant closure
adjustment
|
―
|
|
―
|
|
―
|
|
21
|
Gain on sale of
assets
|
―
|
|
62
|
|
―
|
|
62
|
Equity earnings
(losses), before income tax
|
14
|
|
27
|
|
(8)
|
|
46
|
Other income,
net
|
23
|
|
37
|
|
72
|
|
76
|
Interest
income
|
6
|
|
10
|
|
12
|
|
17
|
Interest
expense
|
(142)
|
|
(139)
|
|
(285)
|
|
(273)
|
(Loss) income before
income taxes and equity earnings of certain unconsolidated subsidiaries
|
(112)
|
|
396
|
|
343
|
|
1,002
|
Income tax benefit
(expense)
|
106
|
|
(98)
|
|
(36)
|
|
(261)
|
Equity earnings, net
of income tax
|
33
|
|
22
|
|
50
|
|
37
|
Net income
|
27
|
|
320
|
|
357
|
|
778
|
Earnings attributable
to noncontrolling interests
|
(10)
|
|
(24)
|
|
(21)
|
|
(45)
|
Preferred dividends
of subsidiary
|
(1)
|
|
(1)
|
|
(1)
|
|
(1)
|
Earnings
|
$
16
|
|
$
295
|
|
$
335
|
|
$
732
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.06
|
|
$
1.19
|
|
$
1.34
|
|
$
2.95
|
Weighted-average
number of shares outstanding, basic (thousands)
|
250,096
|
|
248,108
|
|
249,915
|
|
247,916
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
0.06
|
|
$
1.17
|
|
$
1.33
|
|
$
2.91
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
251,938
|
|
251,491
|
|
251,686
|
|
251,264
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock
|
$
0.75
|
|
$
0.70
|
|
$
1.51
|
|
$
1.40
|
SEMPRA
ENERGY
|
Table A
(Continued)
|
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|
|
Sempra
Energy Consolidated
|
|
|
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|
|
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|
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|
RECONCILIATION OF
SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra Energy
Adjusted Earnings and Adjusted Earnings Per Common Share exclude
after-tax items in 2016 and 2015 as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2016:
|
|
|
•
|
$(123) million losses
from the permanent release of pipeline capacity at Sempra Natural
Gas
|
•
|
$(80) million
adjustments related to tax repairs deductions reallocated to
ratepayers as a result of the 2016 General Rate Case Final Decision
(2016 GRC FD) at the
California Utilities
|
•
|
$21 million
incremental revenue increases for the first quarter of 2016 from
the retroactive application of the 2016 GRC FD at the California
Utilities
|
•
|
$(2) million deferred
income tax expense related to our decision to hold Sempra Mexico's
Termoeléctrica de Mexicali (TdM) natural gas-fired power plant for
sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2015:
|
|
|
•
|
$36 million gain on
the sale of the remaining block of the Mesquite Power
plant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2016:
|
•
|
$(123) million losses
from the permanent release of pipeline capacity at Sempra Natural
Gas
|
•
|
$(80) million
adjustments related to tax repairs deductions reallocated to
ratepayers as a result of the 2016 GRC FD at the California
Utilities
|
•
|
$(27) million
impairment charge related to Sempra Natural Gas' investment in
Rockies Express
|
•
|
$(26) million
deferred income tax expense related to our decision to hold the TdM
power plant for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2015:
|
|
|
•
|
$36 million gain on
the sale of the remaining block of the Mesquite Power
plant
|
•
|
$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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2016 to 2015 and to future periods, and also as a
base for projection of future earnings-per-share compound annual
growth rate (EPS CAGR) from 2016 to 2020. 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
|
|
After-tax
amount
|
|
|
Pretax
amount
|
|
Income tax
|
|
After-tax
amount
|
|
|
|
|
(benefit)
expense (1)
|
|
|
|
|
(benefit)
expense (1)
|
|
|
(Dollars in millions,
except per share amounts)
|
|
Three months ended
June 30, 2016
|
|
|
Three months ended
June 30, 2015
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
|
$
|
16
|
|
|
|
|
|
$
|
295
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent release of pipeline capacity
|
$
|
206
|
$
|
(83)
|
|
123
|
|
$
|
―
|
$
|
―
|
|
―
|
|
SDG&E tax repairs adjustments related to 2016 GRC FD
|
|
52
|
|
(21)
|
|
31
|
|
|
―
|
|
―
|
|
―
|
|
SoCalGas
tax repairs adjustments related to 2016 GRC FD
|
|
83
|
|
(34)
|
|
49
|
|
|
―
|
|
―
|
|
―
|
|
SDG&E retroactive impact of 2016 GRC FD for first-quarter
2016
|
|
(15)
|
|
6
|
|
(9)
|
|
|
―
|
|
―
|
|
―
|
|
SoCalGas
retroactive impact of 2016 GRC FD for first-quarter 2016
|
|
(20)
|
|
8
|
|
(12)
|
|
|
―
|
|
―
|
|
―
|
|
Deferred
income tax expense associated with TdM
|
|
―
|
|
2
|
|
2
|
|
|
―
|
|
―
|
|
―
|
|
Gain on
sale of Mesquite Power block 2
|
|
―
|
|
―
|
|
―
|
|
|
(61)
|
|
25
|
|
(36)
|
|
Sempra Energy
Adjusted Earnings
|
|
|
|
|
$
|
200
|
|
|
|
|
|
$
|
259
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra
Energy GAAP Earnings
|
|
|
|
|
$
|
0.06
|
|
|
|
|
|
$
|
1.17
|
|
Sempra
Energy Adjusted Earnings
|
|
|
|
|
$
|
0.79
|
|
|
|
|
|
$
|
1.03
|
(2)
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
|
|
|
251,938
|
|
|
|
|
|
|
251,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2016
|
|
|
Six months ended June
30, 2015
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
|
$
|
335
|
|
|
|
|
|
$
|
732
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent release of pipeline capacity
|
$
|
206
|
$
|
(83)
|
|
123
|
|
$
|
―
|
$
|
―
|
|
―
|
|
SDG&E tax repairs adjustments related to 2016 GRC FD
|
|
52
|
|
(21)
|
|
31
|
|
|
―
|
|
―
|
|
―
|
|
SoCalGas
tax repairs adjustments related to 2016 GRC FD
|
|
83
|
|
(34)
|
|
49
|
|
|
―
|
|
―
|
|
―
|
|
Impairment of investment in Rockies Express
|
|
44
|
|
(17)
|
|
27
|
|
|
―
|
|
―
|
|
―
|
|
Deferred
income tax expense associated with TdM
|
|
―
|
|
26
|
|
26
|
|
|
―
|
|
―
|
|
―
|
|
Gain on
sale of Mesquite Power block 2
|
|
―
|
|
―
|
|
―
|
|
|
(61)
|
|
25
|
|
(36)
|
|
SONGS
plant closure adjustment
|
|
―
|
|
―
|
|
―
|
|
|
(21)
|
|
8
|
|
(13)
|
|
Sempra Energy
Adjusted Earnings
|
|
|
|
|
$
|
591
|
|
|
|
|
|
$
|
683
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra
Energy GAAP Earnings
|
|
|
|
|
$
|
1.33
|
|
|
|
|
|
$
|
2.91
|
|
Sempra
Energy Adjusted Earnings
|
|
|
|
|
$
|
2.35
|
|
|
|
|
|
$
|
2.72
|
(2)
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
|
|
|
251,686
|
|
|
|
|
|
|
251,264
|
|
|
|
(1)
|
Income taxes were
calculated based on applicable statutory tax rates, except for
adjustments that are solely income tax.
|
(2)
|
Adjusted earnings and
adjusted earnings per share for the three months and six months
ended June 30, 2015 have been revised to include after-tax LNG
development expenses of $1 million and $5 million,
respectively, for consistency with the
comparable periods in 2016. LNG development expenses are included
in adjusted earnings in 2016.
|
SEMPRA
ENERGY
|
Table A
(Continued)
|
|
|
|
|
|
|
|
|
|
Sempra
Energy Consolidated
|
|
|
|
|
|
|
|
|
|
SEMPRA ENERGY 2016
ADJUSTED EARNINGS-PER-SHARE GUIDANCE RANGE AND PROJECTED ADJUSTED
EARNINGS-PER-SHARE
|
COMPOUND ANNUAL
GROWTH RATE (CAGR) FOR THE PERIOD 2016 THROUGH 2020
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Sempra Energy 2016
Adjusted Earnings-Per-Share Guidance Range of $4.60 to $5.00
excludes:
|
•
|
any potential gain,
which is expected to be significant, from the remeasurement of our
equity method investment in Gasoductos de Chihuahua
(GdC), a 50-50 joint venture
between our Mexican subsidiary, IEnova, and Petróleos Mexicanos
(PEMEX), in connection with the pending acquisition
by IEnova of PEMEX's 50-percent interest
in GdC;
|
•
|
any earnings impact
from any transaction to sell the TdM natural gas-fired power plant
in Mexico, including the $26 million deferred income tax
expense recorded in the six
months ended June 30, 2016;
|
•
|
the $123 million
after-tax charge ($206 million pretax) recorded in the second
quarter of 2016 from Sempra Natural Gas' permanent release
of pipeline
capacity;
|
•
|
$80 million after-tax
charges ($135 million pretax) from adjustments recorded in the
second quarter of 2016 related to tax repairs at the
California Utilities as a
result of the 2016 General Rate Case Final Decision (2016 GRC
FD);
|
•
|
approximately $70
million expected after-tax gain (approximately $117 million pretax)
from the pending sale of EnergySouth Inc., the parent
company of Mobile Gas and
Willmut Gas;
|
•
|
the $27 million
after-tax Rockies Express impairment charge ($44 million pretax)
recorded in the first quarter of 2016; and
|
•
|
any impact from the
adoption of new accounting standards in 2016.
|
|
|
Sempra Energy 2016
Adjusted Earnings-Per-Share Guidance is a non-GAAP financial
measure. Because of the significance and nature of the 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 and also
as a base for projected earnings-per-share CAGR. Projected Adjusted
Earnings-Per-Share CAGR for 2016-2020 is a non-GAAP financial
measure because it is based on the 2016 Adjusted Earnings Guidance
Range. Sempra Energy 2016 Adjusted Earnings-Per-Share Guidance
should not be considered an alternative to diluted earnings per
share determined in accordance with GAAP. As the operating assets
that will be included in the GdC transaction are yet to be
confirmed by the applicable Mexican regulatory authority, and the
valuation of such assets is not finalized, a gain cannot be
reasonably estimated at this time. In addition, an agreement for
the sale of the TdM plant has yet to be obtained. As a result, any
potential earnings impact, other than the TdM deferred income tax
expense recorded in the first six months of 2016, from these
transactions cannot be reasonably estimated at this time. We are
also not able to estimate the impact from the adoption of new
accounting standards in 2016 through 2020, including Accounting
Standards Update (ASU) 2016-09, "Improvements to Employee
Share-Based Payment Accounting," ASU 2014-09, "Revenue from
Contracts with Customers" and related clarifying ASUs and ASU
2016-02, "Leases." Accordingly, we are not able to provide a
corresponding GAAP equivalent to our 2016 Adjusted
Earnings-Per-Share Guidance or our Projected Adjusted
Earnings-Per-Share CAGR from 2016 to 2020.
|
SEMPRA
ENERGY
|
Table
B
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
(Dollars in
millions)
|
|
2016
|
|
2015(1)
|
|
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
616
|
|
$
403
|
|
Restricted
cash
|
|
17
|
|
27
|
|
Accounts receivable,
net
|
|
1,134
|
|
1,473
|
|
Due from
unconsolidated affiliates
|
|
6
|
|
6
|
|
Income taxes
receivable
|
|
36
|
|
30
|
|
Inventories
|
|
270
|
|
298
|
|
Regulatory balancing
accounts – undercollected
|
|
336
|
|
307
|
|
Fixed-price contracts
and other derivatives
|
|
65
|
|
80
|
|
Assets held for
sale
|
|
654
|
|
―
|
|
Other
|
|
207
|
|
267
|
|
|
|
Total current
assets
|
|
3,341
|
|
2,891
|
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
Restricted
cash
|
|
18
|
|
20
|
|
Due from
unconsolidated affiliates
|
|
192
|
|
186
|
|
Regulatory
assets
|
|
3,353
|
|
3,273
|
|
Nuclear
decommissioning trusts
|
|
1,103
|
|
1,063
|
|
Investments
|
|
2,267
|
|
2,905
|
|
Goodwill
|
|
786
|
|
819
|
|
Other intangible
assets
|
|
399
|
|
404
|
|
Dedicated assets in
support of certain benefit plans
|
|
436
|
|
464
|
|
Insurance receivable
for Aliso Canyon costs
|
|
679
|
|
325
|
|
Sundry
|
|
806
|
|
761
|
|
|
|
Total other
assets
|
|
10,039
|
|
10,220
|
Property, plant and
equipment, net
|
|
29,495
|
|
28,039
|
Total
assets
|
|
$
42,875
|
|
$
41,150
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
|
$
1,777
|
|
$
622
|
|
Accounts
payable
|
|
1,241
|
|
1,275
|
|
Due to unconsolidated
affiliates
|
|
8
|
|
14
|
|
Dividends and
interest payable
|
|
314
|
|
303
|
|
Accrued compensation
and benefits
|
|
289
|
|
423
|
|
Regulatory balancing
accounts – overcollected
|
|
120
|
|
34
|
|
Current portion of
long-term debt
|
|
907
|
|
907
|
|
Fixed-price contracts
and other derivatives
|
|
54
|
|
56
|
|
Customer
deposits
|
|
150
|
|
153
|
|
Reserve for Aliso
Canyon costs
|
|
117
|
|
274
|
|
Liabilities held for
sale
|
|
222
|
|
―
|
|
Other
|
|
481
|
|
551
|
|
|
|
Total current
liabilities
|
|
5,680
|
|
4,612
|
Long-term
debt
|
|
13,178
|
|
13,134
|
|
|
|
|
|
|
|
|
Deferred credits and
other liabilities:
|
|
|
|
|
|
Customer advances for
construction
|
|
152
|
|
149
|
|
Pension and other
postretirement benefit plan obligations, net of plan
assets
|
|
1,171
|
|
1,152
|
|
Deferred income
taxes
|
|
3,071
|
|
3,157
|
|
Deferred investment
tax credits
|
|
32
|
|
32
|
|
Regulatory
liabilities arising from removal obligations
|
|
2,891
|
|
2,793
|
|
Asset retirement
obligations
|
|
2,491
|
|
2,126
|
|
Fixed-price contracts
and other derivatives
|
|
262
|
|
240
|
|
Deferred credits and
other
|
|
1,384
|
|
1,176
|
|
|
|
Total deferred
credits and other liabilities
|
|
11,454
|
|
10,825
|
Equity:
|
|
|
|
|
|
Total Sempra Energy
shareholders' equity
|
|
11,781
|
|
11,809
|
|
Preferred stock of
subsidiary
|
|
20
|
|
20
|
|
Other noncontrolling
interests
|
|
762
|
|
750
|
|
|
|
Total
equity
|
|
12,563
|
|
12,579
|
Total liabilities and
equity
|
|
$
42,875
|
|
$
41,150
|
|
|
|
|
|
|
|
|
(1)
|
Derived from audited
financial statements.
|
SEMPRA
ENERGY
|
Table
C
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
|
|
Six months ended June
30,
|
(Dollars in
millions)
|
|
2016
|
|
2015
|
|
|
|
(unaudited)
|
Cash Flows from
Operating Activities
|
|
|
|
|
Net income
|
|
$
357
|
|
$
778
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
642
|
|
610
|
|
Deferred income taxes
and investment tax credits
|
|
(42)
|
|
203
|
|
Gain on sale of
assets
|
|
―
|
|
(62)
|
|
Plant closure
adjustment
|
|
―
|
|
(21)
|
|
Equity
earnings
|
|
(42)
|
|
(83)
|
|
Fixed-price contracts
and other derivatives
|
|
41
|
|
―
|
|
Other
|
|
33
|
|
(8)
|
Net change in other
working capital components
|
|
167
|
|
(116)
|
Insurance receivable
for Aliso Canyon costs
|
|
(354)
|
|
―
|
Changes in other
assets
|
|
(67)
|
|
(89)
|
Changes in other
liabilities
|
|
147
|
|
7
|
|
Net cash provided by
operating activities
|
|
882
|
|
1,219
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
Expenditures for
property, plant and equipment
|
|
(2,006)
|
|
(1,466)
|
Expenditures for
investments and acquisition of business
|
|
(46)
|
|
(161)
|
Proceeds from sale of
assets
|
|
443
|
|
347
|
Distributions from
investments
|
|
12
|
|
9
|
Purchases of nuclear
decommissioning and other trust assets
|
|
(206)
|
|
(229)
|
Proceeds from sales
by nuclear decommissioning and other trusts
|
|
204
|
|
221
|
Increases in
restricted cash
|
|
(32)
|
|
(34)
|
Decreases in
restricted cash
|
|
44
|
|
49
|
Advances to
unconsolidated affiliates
|
|
(9)
|
|
(20)
|
Repayments of
advances to unconsolidated affiliates
|
|
9
|
|
74
|
Other
|
|
(6)
|
|
9
|
|
Net cash used in
investing activities
|
|
(1,593)
|
|
(1,201)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
Common dividends
paid
|
|
(335)
|
|
(308)
|
Preferred dividends
paid by subsidiary
|
|
(1)
|
|
(1)
|
Issuances of common
stock
|
|
29
|
|
31
|
Repurchases of common
stock
|
|
(54)
|
|
(66)
|
Issuances of debt
(maturities greater than 90 days)
|
|
1,384
|
|
1,547
|
Payments on debt
(maturities greater than 90 days)
|
|
(986)
|
|
(846)
|
Increase (decrease)
in short-term debt, net
|
|
865
|
|
(339)
|
Net distributions to
noncontrolling interests
|
|
(10)
|
|
(14)
|
Tax benefit related
to share-based compensation
|
|
34
|
|
52
|
Other
|
|
(10)
|
|
(6)
|
|
Net cash provided by
financing activities
|
|
916
|
|
50
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
8
|
|
(2)
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
|
213
|
|
66
|
Cash and cash
equivalents, January 1
|
|
403
|
|
570
|
Cash and cash
equivalents, June 30
|
|
$
616
|
|
$
636
|
SEMPRA
ENERGY
|
Table
D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS (LOSSES) AND CAPITAL EXPENDITURES &
INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(unaudited)
|
Earnings
(Losses)
|
|
|
|
|
|
|
|
California
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas &
Electric
|
$
100
|
|
$
126
|
|
$
229
|
|
$
273
|
Southern California
Gas
|
(1)
|
|
70
|
|
194
|
|
284
|
Sempra
International:
|
|
|
|
|
|
|
|
Sempra South American
Utilities
|
43
|
|
45
|
|
81
|
|
86
|
Sempra
Mexico
|
57
|
|
50
|
|
74
|
|
97
|
Sempra U.S. Gas &
Power:
|
|
|
|
|
|
|
|
Sempra
Renewables
|
12
|
|
19
|
|
25
|
|
32
|
Sempra Natural
Gas
|
(149)
|
|
40
|
|
(185)
|
|
42
|
Parent and
other
|
(46)
|
|
(55)
|
|
(83)
|
|
(82)
|
Earnings
|
$
16
|
|
$
295
|
|
$
335
|
|
$
732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(unaudited)
|
Capital
Expenditures and Investments
|
|
|
|
|
|
|
|
California
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas &
Electric
|
$
273
|
|
$
245
|
|
$
602
|
|
$
600
|
Southern California
Gas
|
310
|
|
288
|
|
650
|
|
603
|
Sempra
International:
|
|
|
|
|
|
|
|
Sempra South American
Utilities
|
39
|
|
35
|
|
82
|
|
66
|
Sempra
Mexico
|
100
|
|
65
|
|
140
|
|
120
|
Sempra U.S. Gas &
Power:
|
|
|
|
|
|
|
|
Sempra
Renewables
|
279
|
|
19
|
|
478
|
|
41
|
Sempra Natural
Gas
|
45
|
|
144
|
|
92
|
|
169
|
Parent and
other
|
5
|
|
17
|
|
8
|
|
28
|
Consolidated Capital
Expenditures and Investments
|
$1,051
|
|
$
813
|
|
$ 2,052
|
|
$1,627
|
SEMPRA
ENERGY
|
Table
E
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
OPERATING STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
UTILITIES
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
California Utilities - SDG&E and
SoCalGas
|
|
|
|
|
|
|
|
|
|
Gas Sales
(Bcf)(1)
|
|
73
|
|
73
|
|
|
186
|
|
172
|
Transportation
(Bcf)(1)
|
|
144
|
|
145
|
|
|
292
|
|
300
|
Total Deliveries
(Bcf)(1)
|
|
217
|
|
218
|
|
|
478
|
|
472
|
Total Gas Customers
(Thousands)
|
|
|
|
|
|
|
6,789
|
|
6,753
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Sales
(Millions of kWhs)(1)
|
|
3,512
|
|
3,644
|
|
|
7,285
|
|
7,476
|
Direct Access
(Millions of kWhs)
|
|
772
|
|
829
|
|
|
1,606
|
|
1,696
|
Total Deliveries
(Millions of kWhs)(1)
|
|
4,284
|
|
4,473
|
|
|
8,891
|
|
9,172
|
Total Electric
Customers (Thousands)
|
|
|
|
|
|
|
1,429
|
|
1,421
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Utilities
|
|
|
|
|
|
|
|
|
|
Natural Gas Sales
(Bcf)
|
|
|
|
|
|
|
|
|
|
|
Sempra
Mexico
|
|
7
|
|
6
|
|
|
15
|
|
13
|
|
Mobile
Gas(2)
|
|
11
|
|
11
|
|
|
24
|
|
24
|
|
Willmut
Gas
|
|
1
|
|
1
|
|
|
2
|
|
2
|
Natural Gas Customers
(Thousands)
|
|
|
|
|
|
|
|
|
|
|
Sempra
Mexico
|
|
|
|
|
|
|
116
|
|
110
|
|
Mobile
Gas(2)
|
|
|
|
|
|
|
85
|
|
85
|
|
Willmut
Gas
|
|
|
|
|
|
|
19
|
|
19
|
Electric Sales
(Millions of kWhs)
|
|
|
|
|
|
|
|
|
|
|
Peru
|
|
1,887
|
|
1,918
|
|
|
3,836
|
|
3,841
|
|
Chile
|
|
682
|
|
704
|
|
|
1,481
|
|
1,496
|
Electric Customers
(Thousands)
|
|
|
|
|
|
|
|
|
|
|
Peru
|
|
|
|
|
|
|
1,065
|
|
1,042
|
|
Chile
|
|
|
|
|
|
|
679
|
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY-RELATED
BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra
International
|
|
|
|
|
|
|
|
|
|
Power Sold (Millions
of kWhs)
|
|
|
|
|
|
|
|
|
|
|
Sempra
Mexico
|
|
604
|
|
733
|
|
|
1,132
|
|
1,643
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra
U.S. Gas & Power
|
|
|
|
|
|
|
|
|
|
Power Sold (Millions
of kWhs)
|
|
|
|
|
|
|
|
|
|
|
Sempra
Renewables(3)
|
|
725
|
|
762
|
|
|
1,492
|
|
1,489
|
|
Sempra Natural
Gas(4)
|
|
243
|
|
440
|
|
|
464
|
|
1,813
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes intercompany
sales.
|
(2)
|
Includes
transportation.
|
(3)
|
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.
|
(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, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
SDG&E
|
|
SoCalGas
|
|
Sempra South
American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra
Natural Gas
|
|
Consolidating
Adjustments,
Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
992
|
|
$
617
|
|
$
385
|
|
$
147
|
|
$ 6
|
|
$
90
|
|
$
(81)
|
|
|
$
2,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and
other expenses
|
|
(664)
|
|
(516)
|
|
(306)
|
|
(86)
|
|
(13)
|
|
(336)
|
|
66
|
|
|
(1,855)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(158)
|
|
(112)
|
|
(14)
|
|
(15)
|
|
(2)
|
|
(12)
|
|
(1)
|
|
|
(314)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings,
before income tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
11
|
|
3
|
|
-
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
13
|
|
6
|
|
5
|
|
(15)
|
|
1
|
|
1
|
|
12
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest and tax (1)
|
|
183
|
|
(5)
|
|
70
|
|
31
|
|
3
|
|
(254)
|
|
(4)
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
(expense) income (2)
|
|
(48)
|
|
(25)
|
|
(6)
|
|
(3)
|
|
-
|
|
7
|
|
(62)
|
|
|
(137)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(48)
|
|
29
|
|
(15)
|
|
12
|
|
9
|
|
99
|
|
20
|
|
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings, net
of income tax
|
|
-
|
|
-
|
|
-
|
|
33
|
|
-
|
|
-
|
|
-
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses (earnings)
attributable to noncontrolling interests
|
|
13
|
|
-
|
|
(6)
|
|
(16)
|
|
-
|
|
(1)
|
|
-
|
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(losses)
|
|
$
100
|
|
$
(1)
|
|
$
43
|
|
$
57
|
|
$
12
|
|
$
(149)
|
|
$
(46)
|
|
|
$
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
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 (1)
|
|
236
|
|
103
|
|
73
|
|
51
|
|
8
|
|
65
|
|
(11)
|
|
|
525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
(expense) income (2)
|
|
(52)
|
|
(17)
|
|
(3)
|
|
(4)
|
|
-
|
|
2
|
|
(56)
|
|
|
(130)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(54)
|
|
(16)
|
|
(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
|
|
$
45
|
|
$
50
|
|
$
19
|
|
$
40
|
|
$
(55)
|
|
|
$
295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Management believes
Income (Loss) Before Interest and Tax is a useful measurement of
our segments' performance because it can be used to evaluate the
effectiveness of our operations exclusive of interest and income tax, neither of which is directly
relevant to the efficiency of those operations.
|
(2)
|
Includes interest
income, interest expense and preferred dividends of
subsidiary.
|
|
SEMPRA ENERGY
|
|
Table F (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement
of Operations Data by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
SDG&E
|
|
SoCalGas
|
|
Sempra South
American
Utilities
|
|
Sempra
Mexico
|
|
Sempra
Renewables
|
|
Sempra
Natural Gas
|
|
Consolidating
Adjustments,
Parent & Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
1,983
|
|
$
1,650
|
|
$
785
|
|
$
285
|
|
$
13
|
|
$
220
|
|
$
(158)
|
|
|
$
4,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and
other expenses
|
|
(1,260)
|
|
(1,133)
|
|
(635)
|
|
(168)
|
|
(26)
|
|
(490)
|
|
128
|
|
|
(3,584)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(317)
|
|
(234)
|
|
(27)
|
|
(32)
|
|
(3)
|
|
(25)
|
|
(4)
|
|
|
(642)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings
(losses), before income tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
18
|
|
(26)
|
|
-
|
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
27
|
|
16
|
|
7
|
|
(4)
|
|
1
|
|
1
|
|
24
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest and tax (1)
|
|
433
|
|
299
|
|
130
|
|
81
|
|
3
|
|
(320)
|
|
(10)
|
|
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
(expense) income (2)
|
|
(96)
|
|
(47)
|
|
(10)
|
|
(5)
|
|
1
|
|
11
|
|
(128)
|
|
|
(274)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(120)
|
|
(58)
|
|
(29)
|
|
(29)
|
|
21
|
|
124
|
|
55
|
|
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings, net
of income tax
|
|
-
|
|
-
|
|
2
|
|
48
|
|
-
|
|
-
|
|
-
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses (earnings)
attributable to noncontrolling interests
|
|
12
|
|
-
|
|
(12)
|
|
(21)
|
|
-
|
|
-
|
|
-
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(losses)
|
|
$
229
|
|
$
194
|
|
$
81
|
|
$
74
|
|
$
25
|
|
$
(185)
|
|
$
(83)
|
|
|
$
335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
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 (1)
|
|
527
|
|
431
|
|
138
|
|
104
|
|
5
|
|
71
|
|
(18)
|
|
|
1,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
(2)
|
|
(104)
|
|
(36)
|
|
(4)
|
|
(7)
|
|
(1)
|
|
-
|
|
(105)
|
|
|
(257)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
(142)
|
|
(111)
|
|
(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
|
|
$
86
|
|
$
97
|
|
$
32
|
|
$
42
|
|
$
(82)
|
|
|
$
732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
[SRE-F]
Logo -
http://photos.prnewswire.com/prnh/20110108/SEMPRAENERGYLOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sempra-energy-announces-second-quarter-2016-earnings-300308990.html
SOURCE Sempra Energy