Date of Report | |
(Date of earliest event reported): | November 2, 2016 |
SAN DIEGO GAS & ELECTRIC COMPANY |
(Exact name of registrant as specified in its charter) |
CALIFORNIA | 1-03779 | 95-1184800 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
8326 CENTURY PARK COURT, SAN DIEGO, CALIFORNIA | 92123 | |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code | (619) 696-2000 |
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.2 | Sempra Energy’s Statement of Operations Data by Segment for the three months and nine months ended September 30, 2016 and 2015. |
Date: November 2, 2016 | By: /s/ Bruce A. Folkmann |
Bruce A. Folkmann Vice President, Controller, Chief Financial Officer and Chief Accounting Officer | |
• | Company on Track to Meet 2016 Adjusted Earnings-Per-Share Guidance |
• | Mexican Subsidiary IEnova Completes Acquisition of PEMEX Joint Venture, Announces Renewable Energy Projects, Raises $1.6 Billion in Equity Offering |
SEMPRA ENERGY | |||||||||||||||||
Table A | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
(Dollars in millions, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | |||||||||||||||||
REVENUES | |||||||||||||||||
Utilities | $ | 2,264 | $ | 2,213 | $ | 6,700 | $ | 6,768 | |||||||||
Energy-related businesses | 271 | 268 | 613 | 762 | |||||||||||||
Total revenues | 2,535 | 2,481 | 7,313 | 7,530 | |||||||||||||
EXPENSES AND OTHER INCOME | |||||||||||||||||
Utilities: | |||||||||||||||||
Cost of natural gas | (208 | ) | (201 | ) | (702 | ) | (786 | ) | |||||||||
Cost of electric fuel and purchased power | (604 | ) | (666 | ) | (1,680 | ) | (1,645 | ) | |||||||||
Energy-related businesses: | |||||||||||||||||
Cost of natural gas, electric fuel and purchased power | (95 | ) | (91 | ) | (213 | ) | (262 | ) | |||||||||
Other cost of sales | (32 | ) | (34 | ) | (293 | ) | (111 | ) | |||||||||
Operation and maintenance | (703 | ) | (701 | ) | (2,109 | ) | (2,072 | ) | |||||||||
Depreciation and amortization | (328 | ) | (315 | ) | (970 | ) | (925 | ) | |||||||||
Franchise fees and other taxes | (108 | ) | (111 | ) | (315 | ) | (314 | ) | |||||||||
Impairment losses | (132 | ) | — | (154 | ) | — | |||||||||||
Plant closure adjustment | — | — | — | 21 | |||||||||||||
Gain on sale of assets | 131 | — | 131 | 62 | |||||||||||||
Equity earnings, before income tax | 12 | 33 | 4 | 79 | |||||||||||||
Remeasurement of equity method investment | 617 | — | 617 | — | |||||||||||||
Other income, net | 26 | 12 | 98 | 88 | |||||||||||||
Interest income | 7 | 6 | 19 | 23 | |||||||||||||
Interest expense | (136 | ) | (143 | ) | (421 | ) | (416 | ) | |||||||||
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 982 | 270 | 1,325 | 1,272 | |||||||||||||
Income tax expense(1) | (282 | ) | (15 | ) | (284 | ) | (276 | ) | |||||||||
Equity earnings, net of income tax | 19 | 27 | 69 | 64 | |||||||||||||
Net income | 719 | 282 | 1,110 | 1,060 | |||||||||||||
Earnings attributable to noncontrolling interests | (97 | ) | (34 | ) | (118 | ) | (79 | ) | |||||||||
Preferred dividends of subsidiary | — | — | (1 | ) | (1 | ) | |||||||||||
Earnings(1) | $ | 622 | $ | 248 | $ | 991 | $ | 980 | |||||||||
Basic earnings per common share | $ | 2.48 | $ | 1.00 | $ | 3.96 | $ | 3.95 | |||||||||
Weighted-average number of shares outstanding, basic (thousands) | 250,386 | 248,432 | 250,073 | 248,090 | |||||||||||||
Diluted earnings per common share | $ | 2.46 | $ | 0.99 | $ | 3.93 | $ | 3.91 | |||||||||
Weighted-average number of shares outstanding, diluted (thousands) | 252,405 | 251,024 | 251,976 | 250,665 | |||||||||||||
Dividends declared per share of common stock | $ | 0.76 | $ | 0.70 | $ | 2.27 | $ | 2.10 | |||||||||
(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. |
▪ | $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 |
▪ | $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 |
▪ | $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 |
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. |
▪ | $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. |
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. |
Exhibit 99.2 | |||||||||||||||||||||||||||||||||
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. |