SAN DIEGO, Nov. 2, 2016 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today reported third-quarter 2016 earnings of
$622 million, or $2.46 per diluted share, up from $248 million, or $0.99 per diluted share, in the third quarter
2015.
These results reflect certain significant items, as described on
an after-tax basis in the following table of GAAP earnings,
reconciled to adjusted earnings, for the third quarter and first
nine months of 2016 and 2015.
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Three months
ended
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Nine months
ended
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September
30,
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September
30,
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(Unaudited;
Dollars, except EPS, and shares, in millions)
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2016
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2015
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2016
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2015
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GAAP
Earnings
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$ 622
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$ 248
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$ 991
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$ 980
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Gain Related to
Gasoductos de Chihuahua Acquisition
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(350)
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-
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(350)
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-
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Gain on Sale of
EnergySouth
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(78)
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-
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(78)
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-
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Loss Related to
Termoeléctrica de Mexicali Held For Sale
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65
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-
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91
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-
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Loss Related to Sale
of Investment in Rockies Express Pipeline
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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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-
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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 (GRC)
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-
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-
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80
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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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-
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-
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(36)
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Adjusted
Earnings(1)
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$ 259
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$ 248
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$ 884
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$ 931
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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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$2.46
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$0.99
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$3.93
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$3.91
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Adjusted
EPS(1)
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$1.02
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$0.99
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$3.51
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$3.72
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(1) Sempra Energy
adjusted earnings and adjusted earnings per share (EPS) are
non-GAAP financial measures. See appendix for information regarding
non-GAAP financial measures and descriptions of adjustments above.
Adjusted earnings and adjusted EPS for the three months and nine
months ended Sept. 30, 2015, have been revised to include after-tax
LNG development expenses of $2 million and $7 million,
respectively, for consistency with the comparable periods in 2016.
LNG development expenses are included in adjusted earnings in 2016.
Amounts excluded from GAAP earnings are after-tax and, if
applicable, after noncontrolling interests.
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Adjusted earnings in the third quarter 2016 were $259 million, or $1.02 per diluted share, excluding a $350 million after-tax remeasurement gain related
to the acquisition of PEMEX's share of the Gasoductos de Chihuahua
(GdC) joint venture by Sempra Energy's Mexican subsidiary IEnova
and a $78 million after-tax gain on
the sale of EnergySouth by Sempra U.S. Gas & Power, partially
offset by a $65 million impairment
charge related to the planned sale of IEnova's Termoeléctrica de
Mexicali power plant, net of a
reduction in deferred taxes.
For the first nine months of 2016, Sempra Energy's earnings were
$991 million, or $3.93 per diluted share, compared with
$980 million, or $3.91 per diluted share, in the first nine months
last year. Adjusted earnings for the first nine months of 2016 were
$884 million, or $3.51 per diluted share, compared with
$931 million, or $3.72 per diluted share, in the first nine months
of 2015.
"Our strong third-quarter financial results keep us on track to
meet our 2016 adjusted earnings-per-share guidance, while we
continue to focus on executing our growth plan," said Debra L. Reed, chairman and CEO of Sempra
Energy. "IEnova finalized its acquisition of the GdC joint venture,
announced nearly 400 megawatts of new renewable energy projects and
successfully completed a $1.6 billion
follow-on equity offering to help finance its growth."
CALIFORNIA UTILITIES
San Diego Gas & Electric
Earnings for SDG&E in the third quarter 2016 increased to
$183 million from $170 million in last year's third quarter.
For the first nine months of 2016, SDG&E's earnings were
$419 million, down from $443 million in the first nine months of 2015,
due primarily to a $31 million
after-tax refund to ratepayers of benefits from tax repairs
deductions in the second quarter 2016.
Last month, the California Public Utilities Commission approved
SDG&E's proposal to construct a new 15-mile, 230-kilovolt
transmission line that will run between the utility's Sycamore
Canyon and Peñasquitos substations in north-central San Diego to improve reliability.
In August, the CPUC also approved a proposal by SDG&E to
build two new energy storage projects in San Diego County to enhance electric
reliability.
Southern California Gas Co.
SoCalGas recorded no earnings in the third quarter 2016,
compared with a loss of $8 million in
the third quarter 2015. Beginning last year, SoCalGas adopted an
order by the CPUC to recognize revenues from the utility's core
activities on a seasonally adjusted basis (seasonality). The
application of seasonality in revenues results in substantially all
of SoCalGas' annual earnings being reported in the first and fourth
quarters of the year, but does not affect full-year operating
earnings or cash flow.
For the first nine months of 2016, SoCalGas' earnings were
$198 million, down from earnings of
$276 million in the first nine months
of 2015. SoCalGas' second-quarter 2016 results reflected a
$49 million after-tax refund to
ratepayers of benefits from tax repairs deductions and a
$13 million after-tax impairment
related to the denial of the proposed North-South Pipeline.
SEMPRA INTERNATIONAL
Sempra South American Utilities
In the third quarter 2016, earnings for Sempra South American
Utilities were $46 million, up from
$43 million in the third quarter
2015.
For the first nine months of 2016, earnings for Sempra South
American Utilities were $127 million,
compared with $129 million in the
first nine months of 2015.
Sempra Mexico
Third-quarter earnings for Sempra Mexico were $332 million in 2016, compared with $63 million in 2015, due primarily to the
$350 million after-tax remeasurement
gain on the Gasoductos de Chihuahua acquisition, offset by the
$65 million after-tax charge related
to the planned sale of the Termoeléctrica de Mexicali plant and beneficial effects of
foreign currency and inflation in last year's third quarter.
For the nine-month period, Sempra Mexico had earnings of
$407 million in 2016, compared with
$160 million in 2015.
Last month, IEnova raised $1.6
billion in a follow-on equity offering, primarily to finance
recent and pending acquisitions. Sempra Energy participated in the
offering by purchasing $351 million
of IEnova stock and now owns approximately 66 percent of
IEnova.
In September, IEnova announced it had completed the acquisition
of PEMEX Transformación Industrial's 50-percent equity interest in
the GdC joint venture for approximately $1.14 billion, plus the assumption of
$364 million in long-term debt. The
assets included in the transaction comprise three natural gas
pipelines, an ethane pipeline, and a liquid petroleum gas pipeline
and associated storage terminal.
In September, IEnova announced the expected addition of nearly
400 megawatts of renewable energy in Mexico. Included were two solar energy
projects totaling 141 megawatts, awarded by Mexico's Centro Nacional de Control de
Energía. The two projects will be fully contracted and are expected
to be completed in the first half of 2019. Also included was
the agreement to purchase Mexico's
largest wind farm, the 252-megawatt Ventika wind facility, which
went into service in April. The Ventika purchase is expected to be
completed in the fourth quarter 2016.
SEMPRA U.S. GAS & POWER
Sempra Renewables
Earnings for Sempra Renewables in the third quarter 2016 were
$17 million, up from $15 million in last year's third
quarter.
During the first nine months of 2016, earnings for Sempra
Renewables were $43 million, compared
with $47 million in the first nine
months of 2015.
Sempra Natural Gas
In the third quarter 2016, Sempra Natural Gas' earnings were
$77 million, compared with
$1 million in last year's third
quarter, due to the $78 million
after-tax gain from the sale of EnergySouth.
For the first nine months of 2016, Sempra Natural Gas recorded a
loss of $104 million, compared with
earnings of $43 million in the first
nine months of last year, primarily due to losses related to the
sale of the company's stake in the Rockies Express Pipeline and the
permanent releases of pipeline capacity, partially offset by the
gain from the EnergySouth sale.
EARNINGS GUIDANCE
Sempra Energy today announced its 2016 GAAP earnings-per-share
guidance range of $5 to $5.40 and
also reaffirmed its 2016 adjusted earnings-per-share guidance range
of $4.60 to $5.
NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures include adjusted earnings and
adjusted earnings per share for the third quarter in 2016 and
nine-month periods in both 2016 and 2015 for Sempra Energy, as well
as Sempra Energy's 2016 adjusted earnings-per-share guidance.
Additional information regarding these non-GAAP financial measures
is in the appendix on Table A of the third-quarter financial
tables.
INTERNET BROADCAST
Sempra Energy will webcast a live discussion of its earnings
results today at 11 a.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 7018826.
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 or
regulatory agency approval for projects required to enhance safety
and reliability; the availability of electric power, natural gas
and liquefied natural gas, and natural gas pipeline and storage
capacity, including disruptions caused by failures in the 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;
moves to reduce or eliminate reliance on natural gas as an energy
source; 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 gases, 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; 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 due to the growth in distributed and local power
generation and the corresponding decrease in demand for power
delivered through SDG&E's electric transmission and
distribution system; the impact on customer rates and other adverse
consequences due to possible departing retail load resulting from
customers transferring to Direct Access and Community Choice
Aggregation; 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
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Table
A
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three months
ended
September 30,
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Nine months ended
September 30,
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(Dollars in millions,
except per share amounts)
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2016
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2015
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2016
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2015
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(unaudited)
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REVENUES
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Utilities
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$
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2,264
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$
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2,213
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$
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6,700
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$
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6,768
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Energy-related
businesses
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271
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268
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613
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762
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Total
revenues
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2,535
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2,481
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7,313
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7,530
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EXPENSES AND OTHER
INCOME
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Utilities:
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Cost of natural
gas
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(208)
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(201)
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(702)
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(786)
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Cost of electric fuel
and purchased power
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(604)
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(666)
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(1,680)
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(1,645)
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Energy-related
businesses:
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Cost of natural gas,
electric fuel and purchased power
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(95)
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(91)
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(213)
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(262)
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Other cost of
sales
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(32)
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(34)
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(293)
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(111)
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Operation and
maintenance
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(703)
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(701)
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(2,109)
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(2,072)
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Depreciation and
amortization
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(328)
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(315)
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(970)
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(925)
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Franchise fees and
other taxes
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|
(108)
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(111)
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(315)
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(314)
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Impairment
losses
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(132)
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—
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(154)
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—
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Plant closure
adjustment
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—
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—
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—
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21
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Gain on sale of
assets
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131
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—
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131
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62
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Equity earnings,
before income tax
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12
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33
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4
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79
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Remeasurement of
equity method investment
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617
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—
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617
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—
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Other income,
net
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26
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|
|
12
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|
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98
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|
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88
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Interest
income
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7
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|
|
6
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|
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19
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|
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23
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Interest
expense
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|
(136)
|
|
|
(143)
|
|
|
(421)
|
|
|
(416)
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Income before income
taxes and equity earnings of certain unconsolidated
subsidiaries
|
|
982
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|
|
270
|
|
|
1,325
|
|
|
1,272
|
|
Income tax
expense(1)
|
|
(282)
|
|
|
(15)
|
|
|
(284)
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|
|
(276)
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|
Equity earnings, net
of income tax
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19
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27
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|
|
69
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|
|
64
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|
Net income
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|
719
|
|
|
282
|
|
|
1,110
|
|
|
1,060
|
|
Earnings attributable
to noncontrolling interests
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|
(97)
|
|
|
(34)
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|
|
(118)
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|
|
(79)
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Preferred dividends
of subsidiary
|
|
—
|
|
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—
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|
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(1)
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(1)
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Earnings(1)
|
|
$
|
622
|
|
|
$
|
248
|
|
|
$
|
991
|
|
|
$
|
980
|
|
|
|
|
|
|
|
|
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|
Basic earnings per
common share
|
|
$
|
2.48
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|
|
$
|
1.00
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$
|
3.96
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|
|
$
|
3.95
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|
Weighted-average
number of shares outstanding, basic (thousands)
|
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250,386
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|
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248,432
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250,073
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248,090
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|
|
|
|
|
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Diluted earnings per
common share
|
|
$
|
2.46
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|
|
$
|
0.99
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$
|
3.93
|
|
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$
|
3.91
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|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
252,405
|
|
|
251,024
|
|
|
251,976
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|
|
250,665
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|
|
|
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Dividends declared
per share of common stock
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|
$
|
0.76
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$
|
0.70
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$
|
2.27
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|
$
|
2.10
|
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(1)
|
The nine months ended
September 30, 2016 reflects increased earnings of $34 million from
the prospective adoption of Accounting Standards Update (ASU)
2016-09, Improvements to Employee Share-Based Payment
Accounting, as of January 1, 2016.
|
SEMPRA
ENERGY
|
Table A
(Continued)
|
|
RECONCILIATION OF
SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS
(Unaudited)
|
|
Sempra Energy
Adjusted Earnings and Adjusted Earnings Per Share exclude items
(after the effects of taxes and, if applicable, noncontrolling
interests) in 2016 and 2015 as follows:
|
|
Three months ended
September 30, 2016:
|
•
|
$350 million 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 Petróleos Mexicanos (PEMEX), in
connection with IEnova's September 2016 acquisition of PEMEX's
50-percent interest in GdC
|
•
|
$78 million gain at
Sempra Natural Gas on the September 2016 sale of EnergySouth Inc.,
the parent company of Mobile Gas and Willmut Gas
|
•
|
$(90) million
impairment of assets held for sale at Sempra Mexico's
Termoeléctrica de Mexicali (TdM) natural gas-fired power
plant
|
•
|
$25 million
reduction of deferred income tax liability related to the
impairment in carrying value of TdM's assets
|
|
|
Nine months ended
September 30, 2016:
|
•
|
$350 million noncash
gain from the remeasurement of our equity method investment in
GdC
|
•
|
$78 million gain on
the sale of EnergySouth
|
•
|
$(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
|
•
|
$(27) million
impairment charge related to Sempra Natural Gas' investment in
Rockies Express Pipeline LLC (Rockies Express)
|
•
|
$(90) million
impairment of TdM assets held for sale
|
•
|
$(1) million deferred
income tax expense related to our decision to hold TdM for
sale
|
|
|
Nine months ended
September 30, 2015:
|
•
|
$36 million gain on
the sale of the remaining block of Sempra Natural Gas' 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
expense
(benefit)(1)
|
Non-
controlling
interests
|
Earnings
|
|
Pretax
amount
|
Income tax
expense(1)
|
Non-
controlling
interests
|
Earnings
|
|
(Dollars in millions,
except per share amounts)
|
Three months ended
September 30, 2016
|
|
Three months ended
September 30, 2015
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
622
|
|
|
|
|
|
$
|
248
|
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gain in connection
with GdC
|
$
|
(617)
|
|
$
|
185
|
|
$
|
82
|
|
(350)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
|
Gain on sale of
EnergySouth
|
(130)
|
|
52
|
|
—
|
|
(78)
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Impairment of
TdM assets held for sale
|
131
|
|
(20)
|
|
(21)
|
|
90
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Reduction of deferred income tax
liability associated with TdM
|
—
|
|
(31)
|
|
6
|
|
(25)
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Sempra Energy
Adjusted Earnings
|
|
|
|
|
$
|
259
|
|
|
|
|
|
$
|
248
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
2.46
|
|
|
|
|
|
$
|
0.99
|
|
|
Sempra Energy Adjusted
Earnings
|
|
|
|
$
|
1.02
|
|
|
|
|
|
$
|
0.99
|
|
(2)
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
|
252,405
|
|
|
|
|
|
251,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2016
|
|
Nine months ended
September 30, 2015
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
991
|
|
|
|
|
|
$
|
980
|
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gain in connection
with GdC
|
$
|
(617)
|
|
$
|
185
|
|
$
|
82
|
|
(350)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
|
Gain on sale of
EnergySouth
|
(130)
|
|
52
|
|
—
|
|
(78)
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
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
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Impairment of
TdM assets held for sale
|
131
|
|
(20)
|
|
(21)
|
|
90
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Deferred income tax expense
associated with TdM
|
—
|
|
1
|
|
—
|
|
1
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Gain on sale of Mesquite Power
block 2
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(61)
|
|
25
|
|
—
|
|
(36)
|
|
|
SONGS plant closure
adjustment
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(21)
|
|
8
|
|
—
|
|
(13)
|
|
|
Sempra Energy
Adjusted Earnings
|
|
|
|
$
|
884
|
|
|
|
|
|
$
|
931
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Sempra Energy GAAP
Earnings
|
|
|
|
$
|
3.93
|
|
|
|
|
|
$
|
3.91
|
|
|
Sempra Energy Adjusted
Earnings
|
|
|
|
$
|
3.51
|
|
|
|
|
|
$
|
3.72
|
|
(2)
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
|
251,976
|
|
|
|
|
|
250,665
|
|
|
|
|
(1)
|
Income taxes were
calculated based on applicable statutory tax rates, except for
adjustments that are solely income tax. Income taxes on the
impairment of TdM were calculated based on the applicable statutory
tax rate, including translation from historic to current exchange
rates.
|
(2)
|
Adjusted earnings and
adjusted earnings per share for the three months and nine months
ended September 30, 2015 have been revised to include after-tax LNG
development expenses of $2 million and $7 million, respectively,
for consistency with the comparable periods in 2016. LNG
development expenses are included in adjusted earnings and diluted
earnings per common share in 2016.
|
SEMPRA
ENERGY
|
Table A
(Continued)
|
|
RECONCILIATION OF
SEMPRA ENERGY 2016 ADJUSTED EARNINGS-PER-SHARE GUIDANCE RANGE TO
SEMPRA ENERGY 2016 EARNINGS-PER-SHARE GUIDANCE RANGE
(Unaudited)
|
|
|
Sempra Energy 2016
Adjusted Earnings-Per-Share Guidance Range of $4.60 to $5.00
excludes items (after the effects of taxes and, if applicable,
noncontrolling interests) as follows:
|
|
|
•
|
$350 million noncash
gain from the remeasurement of our equity method investment in GdC
recorded in September 2016;
|
•
|
$78 million gain from
the September 2016 sale of EnergySouth;
|
•
|
$123 million charge
recorded in the second quarter of 2016 from Sempra Natural Gas'
permanent release of pipeline capacity;
|
•
|
any earnings impact
from any transaction to sell TdM in Mexico, including the $90
million impairment charge and the $1 million deferred income tax
expense recorded in the nine months ended September 30,
2016;
|
•
|
$80 million from
adjustments related to tax repairs at the California Utilities as a
result of the 2016 GRC FD; and
|
•
|
$27 million Rockies
Express impairment charge recorded in the first quarter of
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 compound annual growth
rate. Sempra Energy 2016 Adjusted Earnings-Per-Share Guidance
should not be considered an alternative to Earnings-Per-Share
Guidance determined in accordance with GAAP. The table below
reconciles Sempra Energy 2016 Adjusted Earnings-Per-Share Guidance
Range to Sempra Energy 2016 Earnings-Per-Share Guidance Range,
which we consider to be the most directly comparable financial
measure calculated in accordance with GAAP.
|
|
|
|
Full-year
2016
|
Sempra Energy GAAP
Earnings-Per-Share Guidance Range
|
|
$
|
5.00
|
|
to
|
$
|
5.40
|
|
Exclude(1):
|
|
|
|
|
|
Remeasurement gain in
connection with GdC
|
|
(1.38)
|
|
|
(1.38)
|
|
|
Gain on sale of
EnergySouth
|
|
(0.31)
|
|
|
(0.31)
|
|
|
Permanent release of
pipeline capacity
|
|
0.49
|
|
|
0.49
|
|
|
Losses related to TdM
held for sale
|
|
0.36
|
|
|
0.36
|
|
|
Tax repairs
adjustments related to 2016 GRC FD
|
|
0.33
|
|
|
0.33
|
|
|
Impairment of
investment in Rockies Express
|
|
0.11
|
|
|
0.11
|
|
Sempra Energy
Adjusted Earnings-Per-Share Guidance Range
|
|
$
|
4.60
|
|
to
|
$
|
5.00
|
|
Weighted-average
number of shares outstanding, diluted (thousands)
|
|
|
|
252,700
|
|
|
|
(1)
|
The effects of taxes
and noncontrolling interests for excluded items are provided above
in the reconciliation
of Sempra Energy GAAP Earnings to Sempra Energy Adjusted
Earnings.
|
|
|
|
|
|
|
SEMPRA
ENERGY
|
Table
B
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(Dollars in
millions)
|
September 30,
2016
|
|
December 31,
2015(1)
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
518
|
|
|
$
|
403
|
|
Restricted
cash
|
14
|
|
|
27
|
|
Accounts
receivable, net
|
1,233
|
|
|
1,473
|
|
Due from
unconsolidated affiliates
|
8
|
|
|
6
|
|
Income taxes
receivable
|
28
|
|
|
30
|
|
Inventories
|
302
|
|
|
298
|
|
Regulatory
balancing accounts – undercollected
|
248
|
|
|
307
|
|
Fixed-price
contracts and other derivatives
|
53
|
|
|
80
|
|
Assets held
for sale
|
181
|
|
|
—
|
|
Other
|
339
|
|
|
267
|
|
Total current
assets
|
2,924
|
|
|
2,891
|
|
|
|
|
|
Other
assets:
|
|
|
|
Restricted
cash
|
12
|
|
|
20
|
|
Due from
unconsolidated affiliates
|
195
|
|
|
186
|
|
Regulatory
assets
|
3,424
|
|
|
3,273
|
|
Nuclear
decommissioning trusts
|
1,068
|
|
|
1,063
|
|
Investments
|
1,840
|
|
|
2,905
|
|
Goodwill
|
2,150
|
|
|
819
|
|
Other
intangible assets
|
397
|
|
|
404
|
|
Dedicated
assets in support of certain benefit plans
|
439
|
|
|
464
|
|
Insurance
receivable for Aliso Canyon costs
|
664
|
|
|
325
|
|
Deferred
income taxes
|
211
|
|
|
120
|
|
Sundry
|
715
|
|
|
641
|
|
Total other
assets
|
11,115
|
|
|
10,220
|
|
Property, plant and
equipment, net
|
31,487
|
|
|
28,039
|
|
Total
assets
|
$
|
45,526
|
|
|
$
|
41,150
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
2,869
|
|
|
$
|
622
|
|
Accounts
payable
|
1,298
|
|
|
1,275
|
|
Due to
unconsolidated affiliates
|
9
|
|
|
14
|
|
Dividends and
interest payable
|
357
|
|
|
303
|
|
Accrued
compensation and benefits
|
298
|
|
|
423
|
|
Regulatory
balancing accounts – overcollected
|
146
|
|
|
34
|
|
Current
portion of long-term debt
|
904
|
|
|
907
|
|
Fixed-price
contracts and other derivatives
|
94
|
|
|
56
|
|
Customer
deposits
|
153
|
|
|
153
|
|
Reserve for
Aliso Canyon costs
|
73
|
|
|
274
|
|
Liabilities
held for sale
|
35
|
|
|
—
|
|
Other
|
558
|
|
|
551
|
|
Total current
liabilities
|
6,794
|
|
|
4,612
|
|
Long-term
debt
|
13,522
|
|
|
13,134
|
|
|
|
|
|
Deferred credits and
other liabilities:
|
|
|
|
Customer
advances for construction
|
153
|
|
|
149
|
|
Pension and
other postretirement benefit plan obligations, net of plan
assets
|
1,199
|
|
|
1,152
|
|
Deferred
income taxes
|
3,326
|
|
|
3,157
|
|
Deferred
investment tax credits
|
34
|
|
|
32
|
|
Regulatory
liabilities arising from removal obligations
|
2,878
|
|
|
2,793
|
|
Asset
retirement obligations
|
2,508
|
|
|
2,126
|
|
Fixed-price
contracts and other derivatives
|
413
|
|
|
240
|
|
Deferred
credits and other
|
1,508
|
|
|
1,176
|
|
Total deferred credits
and other liabilities
|
12,019
|
|
|
10,825
|
|
Equity:
|
|
|
|
Total Sempra
Energy shareholders' equity
|
12,346
|
|
|
11,809
|
|
Preferred
stock of subsidiary
|
20
|
|
|
20
|
|
Other
noncontrolling interests
|
825
|
|
|
750
|
|
Total
equity
|
13,191
|
|
|
12,579
|
|
Total liabilities and
equity
|
$
|
45,526
|
|
|
$
|
41,150
|
|
|
|
|
|
(1)
|
Derived from audited
financial statements.
|
SEMPRA
ENERGY
|
Table
C
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
(Dollars in
millions)
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
Cash Flows from
Operating Activities
|
|
|
|
|
Net income
|
|
$
|
1,110
|
|
|
$
|
1,060
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
and amortization
|
|
970
|
|
|
925
|
|
Deferred
income taxes and investment tax credits
|
|
170
|
|
|
179
|
|
Impairment
losses
|
|
154
|
|
|
—
|
|
Plant closure
adjustment
|
|
—
|
|
|
(21)
|
|
Gain on sale
of assets
|
|
(131)
|
|
|
(62)
|
|
Equity
earnings
|
|
(73)
|
|
|
(143)
|
|
Remeasurement
of equity method investment
|
|
(617)
|
|
|
—
|
|
Fixed-price
contracts and other derivatives
|
|
39
|
|
|
(20)
|
|
Other
|
|
50
|
|
|
28
|
|
Net change in other
working capital components
|
|
224
|
|
|
260
|
|
Insurance receivable
for Aliso Canyon costs
|
|
(339)
|
|
|
—
|
|
Changes in other
assets
|
|
(4)
|
|
|
(112)
|
|
Changes in other
liabilities
|
|
138
|
|
|
(5)
|
|
Net cash
provided by operating activities
|
|
1,691
|
|
|
2,089
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
Expenditures for
property, plant and equipment
|
|
(3,087)
|
|
|
(2,227)
|
|
Expenditures for
investments and acquisition of businesses, net of cash and cash
equivalents acquired
|
|
(1,212)
|
|
|
(183)
|
|
Proceeds from sale of
assets, net of cash sold
|
|
761
|
|
|
347
|
|
Distributions from
investments
|
|
23
|
|
|
14
|
|
Purchases of nuclear
decommissioning and other trust assets
|
|
(418)
|
|
|
(407)
|
|
Proceeds from sales
by nuclear decommissioning and other trusts
|
|
486
|
|
|
431
|
|
Increases in
restricted cash
|
|
(53)
|
|
|
(81)
|
|
Decreases in
restricted cash
|
|
71
|
|
|
68
|
|
Advances to
unconsolidated affiliates
|
|
(12)
|
|
|
(24)
|
|
Repayments of
advances to unconsolidated affiliates
|
|
11
|
|
|
74
|
|
Other
|
|
(2)
|
|
|
9
|
|
Net cash used
in investing activities
|
|
(3,432)
|
|
|
(1,979)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
Common dividends
paid
|
|
(510)
|
|
|
(468)
|
|
Preferred dividends
paid by subsidiary
|
|
(1)
|
|
|
(1)
|
|
Issuances of common
stock
|
|
40
|
|
|
41
|
|
Repurchases of common
stock
|
|
(55)
|
|
|
(74)
|
|
Issuances of debt
(maturities greater than 90 days)
|
|
2,013
|
|
|
2,058
|
|
Payments on debt
(maturities greater than 90 days)
|
|
(1,298)
|
|
|
(1,316)
|
|
Increase (decrease)
in short-term debt, net
|
|
1,636
|
|
|
(201)
|
|
Deposit for sale of
noncontrolling interest
|
|
78
|
|
|
—
|
|
Net distributions to
noncontrolling interests
|
|
(43)
|
|
|
(57)
|
|
Tax benefit related
to share-based compensation
|
|
—
|
|
|
56
|
|
Other
|
|
(12)
|
|
|
(9)
|
|
Net cash
provided by financing activities
|
|
1,848
|
|
|
29
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
8
|
|
|
(12)
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
|
115
|
|
|
127
|
|
Cash and cash
equivalents, January 1
|
|
403
|
|
|
570
|
|
Cash and cash
equivalents, September 30
|
|
$
|
518
|
|
|
$
|
697
|
|
SEMPRA
ENERGY
|
Table
D
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND
ACQUISITION OF BUSINESSES
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months ended
September 30,
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(unaudited)
|
Earnings
(Losses)(1)
|
|
|
|
|
|
|
|
California
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas
& Electric
|
$
|
183
|
|
|
$
|
170
|
|
|
$
|
419
|
|
|
$
|
443
|
|
Southern
California Gas
|
—
|
|
|
(8)
|
|
|
198
|
|
|
276
|
|
Sempra
International:
|
|
|
|
|
|
|
|
Sempra South
American Utilities
|
46
|
|
|
43
|
|
|
127
|
|
|
129
|
|
Sempra
Mexico
|
332
|
|
|
63
|
|
|
407
|
|
|
160
|
|
Sempra U.S. Gas &
Power:
|
|
|
|
|
|
|
|
Sempra
Renewables
|
17
|
|
|
15
|
|
|
43
|
|
|
47
|
|
Sempra Natural
Gas
|
77
|
|
|
1
|
|
|
(104)
|
|
|
43
|
|
Parent and
other
|
(33)
|
|
|
(36)
|
|
|
(99)
|
|
|
(118)
|
|
Earnings
|
$
|
622
|
|
|
$
|
248
|
|
|
$
|
991
|
|
|
$
|
980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months ended
September 30,
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(unaudited)
|
Capital
Expenditures, Investments and Acquisition of
Businesses
|
|
|
|
|
|
|
|
California
Utilities:
|
|
|
|
|
|
|
|
San Diego Gas
& Electric
|
$
|
357
|
|
|
$
|
235
|
|
|
$
|
959
|
|
|
$
|
835
|
|
Southern
California Gas
|
299
|
|
|
343
|
|
|
949
|
|
|
946
|
|
Sempra
International:
|
|
|
|
|
|
|
|
Sempra South
American Utilities
|
51
|
|
|
39
|
|
|
133
|
|
|
105
|
|
Sempra
Mexico
|
1,226
|
|
|
65
|
|
|
1,366
|
|
|
185
|
|
Sempra U.S. Gas &
Power:
|
|
|
|
|
|
|
|
Sempra
Renewables
|
261
|
|
|
26
|
|
|
739
|
|
|
67
|
|
Sempra Natural
Gas
|
44
|
|
|
53
|
|
|
136
|
|
|
222
|
|
Parent and
other
|
9
|
|
|
22
|
|
|
17
|
|
|
50
|
|
Consolidated Capital
Expenditures, Investments and Acquisition of Businesses
|
$
|
2,247
|
|
|
$
|
783
|
|
|
$
|
4,299
|
|
|
$
|
2,410
|
|
|
|
|
|
|
|
|
|
(1)
|
The nine months ended
September 30, 2016 reflects the prospective adoption of ASU 2016-09
as of January 1, 2016.
|
SEMPRA
ENERGY
|
Table
E
|
|
OTHER OPERATING
STATISTICS (Unaudited)
|
|
|
Three months
ended
September 30,
|
|
Nine months ended
September 30,
|
UTILITIES
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
California
Utilities - SDG&E and SoCalGas
|
|
|
|
|
|
|
|
Gas Sales
(Bcf)(1)
|
56
|
|
|
55
|
|
|
242
|
|
|
227
|
|
Transportation
(Bcf)(1)
|
185
|
|
|
200
|
|
|
477
|
|
|
500
|
|
Total Deliveries
(Bcf)(1)
|
241
|
|
|
255
|
|
|
719
|
|
|
727
|
|
|
|
|
|
|
|
|
|
Total Gas Customers
(Thousands)
|
|
|
|
|
6,799
|
|
|
6,762
|
|
|
|
|
|
|
|
|
|
Electric Sales
(Millions of kWhs)(1)
|
4,377
|
|
|
4,474
|
|
|
11,662
|
|
|
11,950
|
|
Direct Access
(Millions of kWhs)
|
967
|
|
|
987
|
|
|
2,573
|
|
|
2,683
|
|
Total Deliveries
(Millions of kWhs)(1)
|
5,344
|
|
|
5,461
|
|
|
14,235
|
|
|
14,633
|
|
|
|
|
|
|
|
|
|
Total Electric
Customers (Thousands)
|
|
|
|
|
1,432
|
|
|
1,424
|
|
|
|
|
|
|
|
|
|
Other
Utilities
|
|
|
|
|
|
|
|
Natural Gas Sales
(Bcf)
|
|
|
|
|
|
|
|
Sempra
Mexico
|
7
|
|
|
6
|
|
|
22
|
|
|
19
|
|
Mobile
Gas(2) (3)
|
9
|
|
|
11
|
|
|
33
|
|
|
35
|
|
Willmut
Gas(3)
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Natural Gas Customers
(Thousands)
|
|
|
|
|
|
|
|
Sempra
Mexico
|
|
|
|
|
117
|
|
|
110
|
|
Mobile
Gas(2) (3)
|
|
|
|
|
84
|
|
|
85
|
|
Willmut
Gas(3)
|
|
|
|
|
19
|
|
|
19
|
|
Electric Sales
(Millions of kWhs)
|
|
|
|
|
|
|
|
Peru
|
1,771
|
|
|
1,854
|
|
|
5,607
|
|
|
5,695
|
|
Chile
|
680
|
|
|
676
|
|
|
2,161
|
|
|
2,172
|
|
Electric Customers
(Thousands)
|
|
|
|
|
|
|
|
Peru
|
|
|
|
|
1,071
|
|
|
1,048
|
|
Chile
|
|
|
|
|
684
|
|
|
668
|
|
|
|
|
|
|
|
|
|
ENERGY-RELATED
BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sempra
International
|
|
|
|
|
|
|
|
Power Sold (Millions
of kWhs)
|
|
|
|
|
|
|
|
Sempra
Mexico
|
1,059
|
|
|
1,139
|
|
|
2,191
|
|
|
2,782
|
|
|
|
|
|
|
|
|
|
Sempra U.S. Gas
& Power
|
|
|
|
|
|
|
|
Power Sold (Millions
of kWhs)
|
|
|
|
|
|
|
|
Sempra
Renewables(4)
|
649
|
|
|
622
|
|
|
2,141
|
|
|
2,111
|
|
Sempra Natural
Gas(5)
|
383
|
|
|
510
|
|
|
847
|
|
|
2,323
|
|
|
|
(1)
|
Includes intercompany
sales.
|
(2)
|
Includes
transportation.
|
(3)
|
On September 12,
2016, Sempra Natural Gas completed the sale of the parent company
of Mobile Gas and Willmut Gas.
|
(4)
|
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.
|
(5)
|
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
September 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
|
$
|
1,209
|
|
|
$
|
686
|
|
|
$
|
385
|
|
|
$
|
196
|
|
|
$
|
12
|
|
|
$
|
164
|
|
|
$
|
(117)
|
|
|
|
$
|
2,535
|
|
Cost of sales and
other expenses
|
(725)
|
|
|
(526)
|
|
|
(302)
|
|
|
(121)
|
|
|
(14)
|
|
|
(163)
|
|
|
101
|
|
|
|
(1,750)
|
|
Depreciation and
amortization
|
(161)
|
|
|
(121)
|
|
|
(14)
|
|
|
(15)
|
|
|
(1)
|
|
|
(12)
|
|
|
(4)
|
|
|
|
(328)
|
|
Impairment
losses
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(131)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(132)
|
|
Gain on sale of
assets
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
|
131
|
|
Equity earnings,
before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
|
12
|
|
Remeasurement of
equity method investment
|
—
|
|
|
—
|
|
|
—
|
|
|
617
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
617
|
|
Other income
(expense), net
|
11
|
|
|
8
|
|
|
3
|
|
|
(7)
|
|
|
—
|
|
|
1
|
|
|
10
|
|
|
|
26
|
|
Income (loss) before
interest and tax (1)
|
334
|
|
|
46
|
|
|
73
|
|
|
539
|
|
|
9
|
|
|
120
|
|
|
(10)
|
|
|
|
1,111
|
|
Net interest
(expense) income (2)
|
(49)
|
|
|
(25)
|
|
|
(4)
|
|
|
(3)
|
|
|
1
|
|
|
8
|
|
|
(57)
|
|
|
|
(129)
|
|
Income tax (expense)
benefit
|
(91)
|
|
|
(21)
|
|
|
(17)
|
|
|
(142)
|
|
|
7
|
|
|
(51)
|
|
|
33
|
|
|
|
(282)
|
|
Equity earnings, net
of income tax
|
—
|
|
|
—
|
|
|
1
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
19
|
|
Earnings attributable
to noncontrolling interests
|
(11)
|
|
|
—
|
|
|
(7)
|
|
|
(80)
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
|
(97)
|
|
Earnings
(losses)
|
$
|
183
|
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
332
|
|
|
$
|
17
|
|
|
$
|
77
|
|
|
$
|
(33)
|
|
|
|
$
|
622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 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
|
$
|
1,230
|
|
|
$
|
620
|
|
|
$
|
373
|
|
|
$
|
193
|
|
|
$
|
12
|
|
|
$
|
160
|
|
|
$
|
(107)
|
|
|
|
$
|
2,481
|
|
Cost of sales and
other expenses
|
(778)
|
|
|
(517)
|
|
|
(298)
|
|
|
(122)
|
|
|
(13)
|
|
|
(176)
|
|
|
100
|
|
|
|
(1,804)
|
|
Depreciation and
amortization
|
(152)
|
|
|
(116)
|
|
|
(12)
|
|
|
(18)
|
|
|
(2)
|
|
|
(12)
|
|
|
(3)
|
|
|
|
(315)
|
|
Equity earnings,
before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
25
|
|
|
—
|
|
|
|
33
|
|
Other income
(expense), net
|
8
|
|
|
8
|
|
|
9
|
|
|
(4)
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
|
12
|
|
Income (loss) before
interest and tax (1)
|
308
|
|
|
(5)
|
|
|
72
|
|
|
49
|
|
|
5
|
|
|
(3)
|
|
|
(19)
|
|
|
|
407
|
|
Net interest
(expense) income (2)
|
(51)
|
|
|
(23)
|
|
|
(4)
|
|
|
(6)
|
|
|
1
|
|
|
3
|
|
|
(57)
|
|
|
|
(137)
|
|
Income tax (expense)
benefit
|
(75)
|
|
|
20
|
|
|
(16)
|
|
|
6
|
|
|
9
|
|
|
—
|
|
|
41
|
|
|
|
(15)
|
|
Equity (losses)
earnings, net of income tax
|
—
|
|
|
—
|
|
|
(3)
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
27
|
|
(Earnings) losses
attributable to noncontrolling interests
|
(12)
|
|
|
—
|
|
|
(6)
|
|
|
(16)
|
|
|
—
|
|
|
1
|
|
|
(1)
|
|
|
|
(34)
|
|
Earnings
(losses)
|
$
|
170
|
|
|
$
|
(8)
|
|
|
$
|
43
|
|
|
$
|
63
|
|
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
(36)
|
|
|
|
$
|
248
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 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
|
$
|
3,192
|
|
|
$
|
2,336
|
|
|
$
|
1,170
|
|
|
$
|
481
|
|
|
$
|
25
|
|
|
$
|
384
|
|
|
$
|
(275)
|
|
|
|
$
|
7,313
|
|
Cost of sales and
other expenses
|
(1,985)
|
|
|
(1,637)
|
|
|
(937)
|
|
|
(289)
|
|
|
(40)
|
|
|
(653)
|
|
|
229
|
|
|
|
(5,312)
|
|
Depreciation and
amortization
|
(478)
|
|
|
(355)
|
|
|
(41)
|
|
|
(47)
|
|
|
(4)
|
|
|
(37)
|
|
|
(8)
|
|
|
|
(970)
|
|
Impairment
losses
|
—
|
|
|
(23)
|
|
|
—
|
|
|
(131)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(154)
|
|
Gain on sale of
assets
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
|
131
|
|
Equity earnings
(losses), before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
(26)
|
|
|
—
|
|
|
|
4
|
|
Remeasurement of
equity method investment
|
—
|
|
|
—
|
|
|
—
|
|
|
617
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
617
|
|
Other income
(expense), net
|
38
|
|
|
24
|
|
|
10
|
|
|
(11)
|
|
|
1
|
|
|
2
|
|
|
34
|
|
|
|
98
|
|
Income (loss) before
interest and tax (1)
|
767
|
|
|
345
|
|
|
203
|
|
|
620
|
|
|
12
|
|
|
(200)
|
|
|
(20)
|
|
|
|
1,727
|
|
Net interest
(expense) income (2)
|
(145)
|
|
|
(72)
|
|
|
(14)
|
|
|
(8)
|
|
|
2
|
|
|
19
|
|
|
(185)
|
|
|
|
(403)
|
|
Income tax (expense)
benefit (3)
|
(204)
|
|
|
(75)
|
|
|
(46)
|
|
|
(170)
|
|
|
29
|
|
|
77
|
|
|
105
|
|
|
|
(284)
|
|
Equity earnings, net
of income tax
|
—
|
|
|
—
|
|
|
3
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
69
|
|
Losses (earnings)
attributable to noncontrolling interests
|
1
|
|
|
—
|
|
|
(19)
|
|
|
(101)
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
|
(118)
|
|
Earnings (losses)
(3)
|
$
|
419
|
|
|
$
|
198
|
|
|
$
|
127
|
|
|
$
|
407
|
|
|
$
|
43
|
|
|
$
|
(104)
|
|
|
$
|
(99)
|
|
|
|
$
|
991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 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
|
$
|
3,168
|
|
|
$
|
2,448
|
|
|
$
|
1,151
|
|
|
$
|
508
|
|
|
$
|
30
|
|
|
$
|
512
|
|
|
$
|
(287)
|
|
|
|
$
|
7,530
|
|
Cost of sales and
other expenses
|
(1,934)
|
|
|
(1,705)
|
|
|
(923)
|
|
|
(314)
|
|
|
(36)
|
|
|
(528)
|
|
|
250
|
|
|
|
(5,190)
|
|
Depreciation and
amortization
|
(446)
|
|
|
(342)
|
|
|
(37)
|
|
|
(52)
|
|
|
(5)
|
|
|
(36)
|
|
|
(7)
|
|
|
|
(925)
|
|
Plant closure
adjustment
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
21
|
|
Gain on sale of
assets
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
|
62
|
|
Equity earnings,
before income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
59
|
|
|
—
|
|
|
|
79
|
|
Other income,
net
|
26
|
|
|
25
|
|
|
18
|
|
|
11
|
|
|
1
|
|
|
—
|
|
|
7
|
|
|
|
88
|
|
Income (loss) before
interest and tax (1)
|
835
|
|
|
426
|
|
|
210
|
|
|
153
|
|
|
10
|
|
|
68
|
|
|
(37)
|
|
|
|
1,665
|
|
Net interest
(expense) income (2)
|
(155)
|
|
|
(59)
|
|
|
(8)
|
|
|
(13)
|
|
|
—
|
|
|
3
|
|
|
(162)
|
|
|
|
(394)
|
|
Income tax (expense)
benefit
|
(217)
|
|
|
(91)
|
|
|
(50)
|
|
|
(7)
|
|
|
37
|
|
|
(29)
|
|
|
81
|
|
|
|
(276)
|
|
Equity (losses)
earnings, net of income tax
|
—
|
|
|
—
|
|
|
(4)
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
64
|
|
(Earnings) losses
attributable to noncontrolling interests
|
(20)
|
|
|
—
|
|
|
(19)
|
|
|
(41)
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|
(79)
|
|
Earnings
(losses)
|
$
|
443
|
|
|
$
|
276
|
|
|
$
|
129
|
|
|
$
|
160
|
|
|
$
|
47
|
|
|
$
|
43
|
|
|
$
|
(118)
|
|
|
|
$
|
980
|
|
|
|
(1)
|
Management believes
Income (Loss) Before Interest and Tax is a useful measurement of
our segments' performance because it can be used to evaluate the
effectiveness of our operations exclusive of interest and income tax, neither of which is directly
relevant to the efficiency of those operations.
|
(2)
|
Includes interest
income, interest expense and preferred dividends of
subsidiary.
|
(3)
|
The nine months ended
September 30, 2016 reflects the prospective adoption of ASU 2016-09
as of January 1, 2016.
|
[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-reports-increased-third-quarter-earnings-300355627.html
SOURCE Sempra Energy