Date of Report | |
(Date of earliest event reported): | February 27, 2018 |
SOUTHERN CALIFORNIA GAS COMPANY |
(Exact name of registrant as specified in its charter) |
CALIFORNIA | 1-01402 | 95-1240705 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
555 WEST FIFTH STREET, LOS ANGELES, CALIFORNIA | 90013 | |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code | (213) 244-1200 |
(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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ] |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] |
SOUTHERN CALIFORNIA GAS COMPANY, | |
(Registrant) | |
Date: February 27, 2018 | By: /s/ Bruce A. Folkmann |
Bruce A. Folkmann Vice President, Controller, Chief Financial Officer and Chief Accounting Officer |
Media Contact: | Doug Kline | |||
Sempra Energy | ||||
(877) 340-8875 | ||||
www.sempra.com | ||||
Financial Contact: | Patrick Billings | |||
Sempra Energy | ||||
(877) 736-7727 | ||||
investor@sempra.com |
• | Company Affirms Earnings-Per-Share Guidance Range of $5.30 to $5.80 for 2018 |
• | Dividend Increased Approximately 9 Percent to $3.58 per Common Share on Annualized Basis |
• | Federal Tax Reform Drives $1.6 Billion, Five-Year Repatriation Plan and Fourth-Quarter Tax Expense |
Three months ended | Years ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(Dollars, except EPS, and shares, in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
(Unaudited) | |||||||||||||||
GAAP (Losses) Earnings | $ | (501 | ) | $ | 379 | $ | 256 | $ | 1,370 | ||||||
Impact from the Tax Cuts and Jobs Act of 2017 | 870 | — | 870 | — | |||||||||||
Aliso Canyon Litigation Reserves | 20 | — | 20 | — | |||||||||||
Write-Off of Wildfire Regulatory Asset | — | — | 208 | — | |||||||||||
Gain on Gasoductos de Chihuahua (GdC) Acquisition | — | — | — | (350 | ) | ||||||||||
Gain on Sale of EnergySouth | — | — | — | (78 | ) | ||||||||||
Adjustments Related to Termoeléctrica de Mexicali (TdM) Held For Sale | — | 4 | 42 | 95 | |||||||||||
(Recoveries) Losses Related to Permanent Release of Pipeline Capacity | — | — | (28 | ) | 123 | ||||||||||
Tax Repairs Adjustments Related to 2016 General Rate Case | — | — | — | 80 | |||||||||||
Impairment of Investment in Rockies Express Pipeline | — | — | — | 27 | |||||||||||
Adjusted Earnings(1) | $ | 389 | $ | 383 | $ | 1,368 | $ | 1,267 | |||||||
Diluted Weighted-Average Common Shares Outstanding | 253 | (2) | 252 | 252 | 251 | ||||||||||
GAAP (Losses) Earnings Per Diluted Share | $ | (1.99 | ) | (2) | $ | 1.51 | $ | 1.01 | $ | 5.46 | |||||
Adjusted Earnings Per Diluted Share(1) | $ | 1.54 | $ | 1.52 | $ | 5.42 | $ | 5.05 |
1) | Sempra Energy adjusted earnings and adjusted earnings per share are non-GAAP financial measures. See Table A in the appendix for information regarding non-GAAP financial measures and descriptions of adjustments above. |
2) | For the three months ended Dec. 31, 2017, the total weighted average number of potentially dilutive securities was 0.8 million. However, these securities were not included in the computation of GAAP losses per common share since to do so would have decreased the loss per share. |
SEMPRA ENERGY | |||||||||||||||||
Table A | |||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
Three months ended December 31, | Years ended December 31, | ||||||||||||||||
(Dollars in millions, except per share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) | |||||||||||||||||
REVENUES | |||||||||||||||||
Utilities | $ | 2,604 | $ | 2,561 | $ | 9,776 | $ | 9,261 | |||||||||
Energy-related businesses | 360 | 309 | 1,431 | 922 | |||||||||||||
Total revenues | 2,964 | 2,870 | 11,207 | 10,183 | |||||||||||||
EXPENSES AND OTHER INCOME | |||||||||||||||||
Utilities: | |||||||||||||||||
Cost of electric fuel and purchased power | (551 | ) | (508 | ) | (2,281 | ) | (2,188 | ) | |||||||||
Cost of natural gas | (287 | ) | (365 | ) | (1,190 | ) | (1,067 | ) | |||||||||
Energy-related businesses: | |||||||||||||||||
Cost of natural gas, electric fuel and purchased power | (113 | ) | (64 | ) | (339 | ) | (277 | ) | |||||||||
Other cost of sales | (19 | ) | (29 | ) | (24 | ) | (322 | ) | |||||||||
Operation and maintenance | (910 | ) | (861 | ) | (3,117 | ) | (2,970 | ) | |||||||||
Depreciation and amortization | (384 | ) | (342 | ) | (1,490 | ) | (1,312 | ) | |||||||||
Franchise fees and other taxes | (111 | ) | (111 | ) | (436 | ) | (426 | ) | |||||||||
Write-off of wildfire regulatory asset | — | — | (351 | ) | — | ||||||||||||
Impairment adjustment (losses) | — | 1 | (72 | ) | (153 | ) | |||||||||||
Gain on sale of assets | 1 | 3 | 3 | 134 | |||||||||||||
Equity earnings, before income tax | 3 | 2 | 34 | 6 | |||||||||||||
Remeasurement of equity method investment | — | — | — | 617 | |||||||||||||
Other (expense) income, net | (47 | ) | 34 | 254 | 132 | ||||||||||||
Interest income | 20 | 7 | 46 | 26 | |||||||||||||
Interest expense | (166 | ) | (132 | ) | (659 | ) | (553 | ) | |||||||||
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 400 | 505 | 1,585 | 1,830 | |||||||||||||
Income tax expense | (898 | ) | (105 | ) | (1,276 | ) | (389 | ) | |||||||||
Equity earnings, net of income tax | 47 | 9 | 42 | 78 | |||||||||||||
Net (loss) income | (451 | ) | 409 | 351 | 1,519 | ||||||||||||
Earnings attributable to noncontrolling interests | (50 | ) | (30 | ) | (94 | ) | (148 | ) | |||||||||
Preferred dividends of subsidiary | — | — | (1 | ) | (1 | ) | |||||||||||
(Losses) earnings | $ | (501 | ) | $ | 379 | $ | 256 | $ | 1,370 | ||||||||
Basic (losses) earnings per common share | $ | (1.99 | ) | $ | 1.51 | $ | 1.02 | $ | 5.48 | ||||||||
Weighted-average number of shares outstanding, basic (thousands) | 251,902 | 250,645 | 251,545 | 250,217 | |||||||||||||
Diluted (losses) earnings per common share(1) | $ | (1.99 | ) | $ | 1.51 | $ | 1.01 | $ | 5.46 | ||||||||
Weighted-average number of shares outstanding, diluted (thousands)(1) | 251,902 | 251,611 | 252,300 | 251,155 | |||||||||||||
Dividends declared per share of common stock | $ | 0.82 | $ | 0.75 | $ | 3.29 | $ | 3.02 | |||||||||
(1) | For the three months ended December 31, 2017, the total weighted-average number of potentially dilutive securities was 0.8 million. However, these securities were not included in the computation of GAAP losses per common share since to do so would have decreased the loss per share. |
▪ | $(870) million income tax expense from the impact of the Tax Cuts and Jobs Act of 2017 (TCJA) |
▪ | $(20) million associated with Aliso Canyon litigation reserves at SoCalGas |
▪ | $(4) million deferred income tax expense on Termoeléctrica de Mexicali (TdM) assets held for sale at Sempra Mexico |
▪ | $(870) million income tax expense from the impact of the TCJA |
▪ | $(208) million write-off of wildfire regulatory asset at SDG&E |
▪ | $(47) million impairment of TdM assets held for sale |
▪ | $(20) million associated with Aliso Canyon litigation reserves at SoCalGas |
▪ | $5 million deferred income tax benefit on the TdM assets held for sale |
▪ | $28 million of recoveries related to 2016 permanent releases of pipeline capacity at Sempra LNG & Midstream |
▪ | $350 million noncash gain from the remeasurement of our equity method investment in IEnova Pipelines (formerly Gasoductos de Chihuahua or 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 LNG & Midstream on the September 2016 sale of EnergySouth Inc., the parent company of Mobile Gas and Willmut Gas |
▪ | $(123) million losses from the permanent releases of pipeline capacity at Sempra LNG & Midstream |
▪ | $(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 LNG & Midstream’s investment in Rockies Express Pipeline LLC (Rockies Express) |
▪ | $(90) million impairment of TdM assets held for sale |
▪ | $(5) million deferred income tax expense related to our decision to hold TdM for sale |
Pretax amount | Income tax expense (benefit)(1) | Non-controlling interests | (Losses) earnings | Pretax amount | Income tax expense (benefit)(1) | Non-controlling interests | Earnings | ||||||||||||||||||||
(Dollars in millions, except per share amounts) | Three months ended December 31, 2017 | Three months ended December 31, 2016 | |||||||||||||||||||||||||
Sempra Energy GAAP (Losses) Earnings | $ | (501 | ) | $ | 379 | ||||||||||||||||||||||
Excluded items: | |||||||||||||||||||||||||||
Impact from the TCJA | $ | — | $ | 870 | $ | — | 870 | $ | — | $ | — | $ | — | — | |||||||||||||
Aliso Canyon litigation reserves | 20 | — | — | 20 | — | — | — | — | |||||||||||||||||||
Deferred income tax expense associated with TdM | — | — | — | — | — | 7 | (3 | ) | 4 | ||||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 389 | $ | 383 | |||||||||||||||||||||||
Diluted (losses) earnings per common share: | |||||||||||||||||||||||||||
Sempra Energy GAAP (Losses) Earnings | $ | (1.99 | ) | (2) | $ | 1.51 | |||||||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 1.54 | $ | 1.52 | |||||||||||||||||||||||
Weighted-average number of shares outstanding, diluted (thousands) | 252,725 | (2) | 251,611 | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | ||||||||||||||||||||||||||
Sempra Energy GAAP Earnings | $ | 256 | $ | 1,370 | |||||||||||||||||||||||
Excluded items: | |||||||||||||||||||||||||||
Impact from the TCJA | $ | — | $ | 870 | $ | — | 870 | $ | — | $ | — | $ | — | — | |||||||||||||
Write-off of wildfire regulatory asset | 351 | (143 | ) | — | 208 | — | — | — | — | ||||||||||||||||||
Impairment of TdM assets held for sale | 71 | — | (24 | ) | 47 | 131 | (20 | ) | (21 | ) | 90 | ||||||||||||||||
Aliso Canyon litigation reserves | 20 | — | — | 20 | — | — | — | — | |||||||||||||||||||
Deferred income tax (benefit) expense associated with TdM | — | (8 | ) | 3 | (5 | ) | — | 8 | (3 | ) | 5 | ||||||||||||||||
Recoveries related to 2016 permanent releases of pipeline capacity | (47 | ) | 19 | — | (28 | ) | — | — | — | — | |||||||||||||||||
Remeasurement gain in connection with GdC acquisition | — | — | — | — | (617 | ) | 185 | 82 | (350 | ) | |||||||||||||||||
Gain on sale of EnergySouth | — | — | — | — | (130 | ) | 52 | — | (78 | ) | |||||||||||||||||
Permanent releases 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 | ||||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 1,368 | $ | 1,267 | |||||||||||||||||||||||
Diluted earnings per common share: | |||||||||||||||||||||||||||
Sempra Energy GAAP Earnings | $ | 1.01 | $ | 5.46 | |||||||||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 5.42 | $ | 5.05 | |||||||||||||||||||||||
Weighted-average number of shares outstanding, diluted (thousands) | 252,300 | 251,155 | |||||||||||||||||||||||||
(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. An income tax benefit of $12 million associated with the 2017 TdM impairment has been fully reserved. | ||||||||||||||||||||||||||
(2) | The total weighted-average number of potentially dilutive securities was 0.8 million. However, these securities were not included in the computation of GAAP losses per common share since to do so would have decreased the loss per share. |
SEMPRA ENERGY | ||||||||||
Table B | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(Dollars in millions) | December 31, 2017 | December 31, 2016 | ||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 288 | $ | 349 | ||||||
Restricted cash | 62 | 66 | ||||||||
Accounts receivable, net | 1,584 | 1,554 | ||||||||
Due from unconsolidated affiliates | 37 | 26 | ||||||||
Income taxes receivable | 110 | 43 | ||||||||
Inventories | 307 | 258 | ||||||||
Regulatory assets | 325 | 348 | ||||||||
Fixed-price contracts and other derivatives | 66 | 83 | ||||||||
Greenhouse gas allowances | 299 | 40 | ||||||||
Assets held for sale | 127 | 201 | ||||||||
Other | 136 | 142 | ||||||||
Total current assets | 3,341 | 3,110 | ||||||||
Other assets: | ||||||||||
Restricted cash | 14 | 10 | ||||||||
Due from unconsolidated affiliates | 598 | 201 | ||||||||
Regulatory assets | 1,517 | 3,414 | ||||||||
Nuclear decommissioning trusts | 1,033 | 1,026 | ||||||||
Investments | 2,527 | 2,097 | ||||||||
Goodwill | 2,397 | 2,364 | ||||||||
Other intangible assets | 596 | 548 | ||||||||
Dedicated assets in support of certain benefit plans | 455 | 430 | ||||||||
Insurance receivable for Aliso Canyon costs | 418 | 606 | ||||||||
Deferred income taxes | 170 | 234 | ||||||||
Greenhouse gas allowances | 93 | 295 | ||||||||
Sundry | 792 | 520 | ||||||||
Total other assets | 10,610 | 11,745 | ||||||||
Property, plant and equipment, net | 36,503 | 32,931 | ||||||||
Total assets | $ | 50,454 | $ | 47,786 | ||||||
Liabilities and Equity | ||||||||||
Current liabilities: | ||||||||||
Short-term debt | $ | 1,540 | $ | 1,779 | ||||||
Accounts payable | 1,523 | 1,476 | ||||||||
Due to unconsolidated affiliates | 7 | 11 | ||||||||
Dividends and interest payable | 342 | 319 | ||||||||
Accrued compensation and benefits | 439 | 409 | ||||||||
Regulatory liabilities | 109 | 122 | ||||||||
Current portion of long-term debt | 1,427 | 913 | ||||||||
Fixed-price contracts and other derivatives | 109 | 83 | ||||||||
Customer deposits | 162 | 158 | ||||||||
Reserve for Aliso Canyon costs | 84 | 53 | ||||||||
Greenhouse gas obligations | 299 | 40 | ||||||||
Liabilities held for sale | 49 | 47 | ||||||||
Other | 545 | 517 | ||||||||
Total current liabilities | 6,635 | 5,927 | ||||||||
Long-term debt | 16,445 | 14,429 | ||||||||
Deferred credits and other liabilities: | ||||||||||
Customer advances for construction | 150 | 152 | ||||||||
Due to unconsolidated affiliates | 35 | — | ||||||||
Pension and other postretirement benefit plan obligations, net of plan assets | 1,148 | 1,208 | ||||||||
Deferred income taxes | 2,767 | 3,745 | ||||||||
Deferred investment tax credits | 28 | 28 | ||||||||
Regulatory liabilities | 3,922 | 2,876 | ||||||||
Asset retirement obligations | 2,732 | 2,431 | ||||||||
Fixed-price contracts and other derivatives | 316 | 405 | ||||||||
Greenhouse gas obligations | — | 171 | ||||||||
Deferred credits and other | 1,136 | 1,173 | ||||||||
Total deferred credits and other liabilities | 12,234 | 12,189 | ||||||||
Equity: | ||||||||||
Sempra Energy shareholders’ equity | 12,670 | 12,951 | ||||||||
Preferred stock of subsidiary | 20 | 20 | ||||||||
Other noncontrolling interests | 2,450 | 2,270 | ||||||||
Total equity | 15,140 | 15,241 | ||||||||
Total liabilities and equity | $ | 50,454 | $ | 47,786 |
SEMPRA ENERGY | |||||||||
Table C | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
Years ended December 31, | |||||||||
(Dollars in millions) | 2017 | 2016(1) | |||||||
Cash Flows from Operating Activities | |||||||||
Net income | $ | 351 | $ | 1,519 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 1,490 | 1,312 | |||||||
Deferred income taxes and investment tax credits | 1,160 | 217 | |||||||
Write-off of wildfire regulatory asset | 351 | — | |||||||
Impairment losses | 72 | 153 | |||||||
Gain on sale of assets | (3 | ) | (134 | ) | |||||
Equity earnings, net | (76 | ) | (84 | ) | |||||
Remeasurement of equity method investment | — | (617 | ) | ||||||
Fixed-price contracts and other derivatives | 7 | 21 | |||||||
Other | 149 | 62 | |||||||
Net change in other working capital components | 57 | (59 | ) | ||||||
Insurance receivable for Aliso Canyon costs | 188 | (281 | ) | ||||||
Changes in other assets | (214 | ) | 49 | ||||||
Changes in other liabilities | 93 | 153 | |||||||
Net cash provided by operating activities | 3,625 | 2,311 | |||||||
Cash Flows from Investing Activities | |||||||||
Expenditures for property, plant and equipment | (3,949 | ) | (4,214 | ) | |||||
Expenditures for investments and acquisitions, net of cash, cash equivalents and restricted cash acquired | (270 | ) | (1,504 | ) | |||||
Proceeds from sale of assets, net of cash sold | 17 | 763 | |||||||
Distributions from investments | 26 | 25 | |||||||
Purchases of nuclear decommissioning and other trust assets | (1,314 | ) | (1,034 | ) | |||||
Proceeds from sales by nuclear decommissioning and other trusts | 1,314 | 1,134 | |||||||
Advances to unconsolidated affiliates | (531 | ) | (25 | ) | |||||
Repayments of advances to unconsolidated affiliates | 9 | 11 | |||||||
Other | (2 | ) | 9 | ||||||
Net cash used in investing activities | (4,700 | ) | (4,835 | ) | |||||
Cash Flows from Financing Activities | |||||||||
Common dividends paid | (755 | ) | (686 | ) | |||||
Preferred dividends paid by subsidiary | (1 | ) | (1 | ) | |||||
Issuances of common stock | 47 | 51 | |||||||
Repurchases of common stock | (15 | ) | (56 | ) | |||||
Issuances of debt (maturities greater than 90 days) | 4,509 | 2,951 | |||||||
Payments on debt (maturities greater than 90 days) | (2,800 | ) | (2,057 | ) | |||||
(Decrease) increase in short-term debt, net | (36 | ) | 692 | ||||||
Advances from unconsolidated affiliates | 35 | — | |||||||
Proceeds from sale of noncontrolling interests, net of $3 and $40 in offering costs, respectively | 196 | 1,692 | |||||||
Net distributions to noncontrolling interests | (130 | ) | (63 | ) | |||||
Other | (43 | ) | (21 | ) | |||||
Net cash provided by financing activities | 1,007 | 2,502 | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7 | (3 | ) | ||||||
Decrease in cash, cash equivalents and restricted cash | (61 | ) | (25 | ) | |||||
Cash, cash equivalents and restricted cash, January 1 | 425 | 450 | |||||||
Cash, cash equivalents and restricted cash, December 31 | $ | 364 | $ | 425 |
(1) | As adjusted for the retrospective adoption of ASU 2016-15 and ASU 2016-18. |
SEMPRA ENERGY | |||||||||||||||||
Table D | |||||||||||||||||
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS | |||||||||||||||||
Three months ended December 31, | Years ended December 31, | ||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) | |||||||||||||||||
Earnings (Losses) | |||||||||||||||||
Sempra Utilities: | |||||||||||||||||
San Diego Gas & Electric | $ | 131 | $ | 151 | $ | 407 | $ | 570 | |||||||||
Southern California Gas | 128 | 151 | 396 | 349 | |||||||||||||
Sempra South American Utilities | 52 | 29 | 186 | 156 | |||||||||||||
Sempra Infrastructure: | |||||||||||||||||
Sempra Mexico | 64 | 56 | 169 | 463 | |||||||||||||
Sempra Renewables | 203 | 12 | 252 | 55 | |||||||||||||
Sempra LNG & Midstream | 126 | (3 | ) | 150 | (107 | ) | |||||||||||
Parent and other | (1,205 | ) | (17 | ) | (1,304 | ) | (116 | ) | |||||||||
(Losses) Earnings | $ | (501 | ) | $ | 379 | $ | 256 | $ | 1,370 | ||||||||
Three months ended December 31, | Years ended December 31, | ||||||||||||||||
(Dollars in millions) | 2017 | 2016(1) | 2017 | 2016(1) | |||||||||||||
(unaudited) | |||||||||||||||||
Capital Expenditures, Investments and Acquisitions | |||||||||||||||||
Sempra Utilities: | |||||||||||||||||
San Diego Gas & Electric | $ | 433 | $ | 440 | $ | 1,555 | $ | 1,399 | |||||||||
Southern California Gas | 334 | 370 | 1,367 | 1,319 | |||||||||||||
Sempra South American Utilities | 106 | 61 | 245 | 194 | |||||||||||||
Sempra Infrastructure: | |||||||||||||||||
Sempra Mexico | 202 | 384 | 467 | 1,750 | |||||||||||||
Sempra Renewables | 136 | 132 | 497 | 871 | |||||||||||||
Sempra LNG & Midstream | 15 | 28 | 68 | 164 | |||||||||||||
Parent and other | 3 | 4 | 20 | 21 | |||||||||||||
Capital Expenditures, Investments and Acquisitions | $ | 1,229 | $ | 1,419 | $ | 4,219 | $ | 5,718 |
(1) | As adjusted for the retrospective adoption of ASU 2016-15 and ASU 2016-18. |
SEMPRA ENERGY | ||||||||||||||
Table E | ||||||||||||||
OTHER OPERATING STATISTICS (Unaudited) | ||||||||||||||
Three months ended December 31, | Years ended or at December 31, | |||||||||||||
UTILITIES | 2017 | 2016 | 2017 | 2016 | ||||||||||
SDG&E and SoCalGas | ||||||||||||||
Gas Sales (Bcf)(1) | 88 | 92 | 341 | 334 | ||||||||||
Transportation (Bcf)(1) | 150 | 164 | 638 | 641 | ||||||||||
Total Deliveries (Bcf)(1) | 238 | 256 | 979 | 975 | ||||||||||
Total Gas Customers (Thousands) | 6,846 | 6,808 | ||||||||||||
Electric Sales (Millions of kWhs)(1) | 3,845 | 3,987 | 15,617 | 15,649 | ||||||||||
Direct Access (Millions of kWhs) | 864 | 942 | 3,394 | 3,515 | ||||||||||
Total Deliveries (Millions of kWhs)(1) | 4,709 | 4,929 | 19,011 | 19,164 | ||||||||||
Total Electric Customers (Thousands) | 1,446 | 1,434 | ||||||||||||
Other Utilities | ||||||||||||||
Natural Gas Sales (Bcf) | ||||||||||||||
Sempra Mexico – Ecogas | 7 | 7 | 29 | 29 | ||||||||||
Mobile Gas(2) | — | — | — | 33 | ||||||||||
Willmut Gas(2) | — | — | — | 2 | ||||||||||
Natural Gas Customers (Thousands) | ||||||||||||||
Sempra Mexico – Ecogas | 120 | 119 | ||||||||||||
Chile: | ||||||||||||||
Electric Sales (Millions of kWhs) | 735 | 739 | 2,936 | 2,900 | ||||||||||
Tolling (Millions of kWhs) | 27 | 23 | 98 | 90 | ||||||||||
Total Deliveries (Millions of kWhs) | 762 | 762 | 3,034 | 2,990 | ||||||||||
Peru: | ||||||||||||||
Electric Sales (Millions of kWhs) | 1,678 | 1,780 | 6,999 | 7,387 | ||||||||||
Tolling (Millions of kWhs) | 539 | 396 | 1,922 | 1,365 | ||||||||||
Total Deliveries (Millions of kWhs) | 2,217 | 2,176 | 8,921 | 8,752 | ||||||||||
Electric Customers (Thousands) | ||||||||||||||
Chile | 704 | 688 | ||||||||||||
Peru | 1,102 | 1,078 | ||||||||||||
ENERGY-RELATED BUSINESSES | ||||||||||||||
Sempra Infrastructure | ||||||||||||||
Power Generated and Sold (Millions of kWhs) | ||||||||||||||
Sempra Mexico(3) | 1,305 | 826 | 4,337 | 3,173 | ||||||||||
Sempra Renewables(4) | 1,075 | 815 | 4,175 | 2,956 |
(1) | Includes intercompany sales. |
(2) | On September 12, 2016, Sempra LNG & Midstream completed the sale of the parent company of Mobile Gas and Willmut Gas. |
(3) | Includes power generated and sold at the Termoeléctrica de Mexicali natural gas-fired power plant, which is currently held for sale, and the Ventika wind power generation facilities acquired in December 2016. Also includes 50 percent of total power generated and sold at the Energía Sierra Juárez wind power generation facility, in which Sempra Energy has a 50-percent ownership interest. Energía Sierra Juárez is not consolidated within Sempra Energy, and the related investment is accounted for under the equity method. |
(4) | Includes 50 percent of total power generated and sold related to solar and wind projects in which Sempra Energy has a 50-percent ownership interest. These subsidiaries are not consolidated within Sempra Energy, and the related investments are accounted for under the equity method. |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||
Table F (Unaudited) | |||||||||||||||||||||||||||||||||
STATEMENT OF OPERATIONS DATA BY SEGMENT | |||||||||||||||||||||||||||||||||
Three months ended December 31, 2017 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra South American Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG & Midstream | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 1,125 | $ | 1,090 | $ | 398 | $ | 323 | $ | 20 | $ | 134 | $ | (126 | ) | $ | 2,964 | ||||||||||||||||
Cost of sales and other expenses | (706 | ) | (757 | ) | (312 | ) | (164 | ) | (19 | ) | (136 | ) | 104 | (1,990 | ) | ||||||||||||||||||
Depreciation and amortization | (171 | ) | (131 | ) | (14 | ) | (42 | ) | (10 | ) | (11 | ) | (5 | ) | (384 | ) | |||||||||||||||||
Equity earnings (losses), before income tax | — | — | — | — | 4 | (1 | ) | — | 3 | ||||||||||||||||||||||||
Other income (expense), net | 17 | 8 | 6 | (86 | ) | 1 | 1 | 6 | (47 | ) | |||||||||||||||||||||||
Income (loss) before interest and tax(1) | 265 | 210 | 78 | 31 | (4 | ) | (13 | ) | (21 | ) | 546 | ||||||||||||||||||||||
Net interest (expense) income(2) | (52 | ) | (25 | ) | 3 | (13 | ) | (1 | ) | 3 | (61 | ) | (146 | ) | |||||||||||||||||||
Income tax (expense) benefit(3) | (83 | ) | (57 | ) | (23 | ) | 51 | 201 | 136 | (1,123 | ) | (898 | ) | ||||||||||||||||||||
Equity earnings, net of income tax | — | — | 2 | 45 | — | — | — | 47 | |||||||||||||||||||||||||
Losses (earnings) attributable to noncontrolling interests | 1 | — | (8 | ) | (50 | ) | 7 | — | — | (50 | ) | ||||||||||||||||||||||
Earnings (losses) | $ | 131 | $ | 128 | $ | 52 | $ | 64 | $ | 203 | $ | 126 | $ | (1,205 | ) | $ | (501 | ) | |||||||||||||||
Three months ended December 31, 2016 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra South American Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG & Midstream | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 1,061 | $ | 1,135 | $ | 386 | $ | 244 | $ | 9 | $ | 124 | $ | (89 | ) | $ | 2,870 | ||||||||||||||||
Cost of sales and other expenses | (632 | ) | (779 | ) | (318 | ) | (124 | ) | (16 | ) | (127 | ) | 58 | (1,938 | ) | ||||||||||||||||||
Depreciation and amortization | (168 | ) | (121 | ) | (8 | ) | (30 | ) | (2 | ) | (10 | ) | (3 | ) | (342 | ) | |||||||||||||||||
Adjustment to impairment losses | — | 1 | — | — | — | — | — | 1 | |||||||||||||||||||||||||
(Loss) gain on sale of assets | — | — | (1 | ) | — | 4 | — | — | 3 | ||||||||||||||||||||||||
Equity earnings (losses), before income tax | — | — | — | — | 4 | (2 | ) | — | 2 | ||||||||||||||||||||||||
Other income (expense), net | 12 | 8 | 11 | 6 | 1 | 1 | (5 | ) | 34 | ||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 273 | 244 | 70 | 96 | — | (14 | ) | (39 | ) | 630 | |||||||||||||||||||||||
Net interest (expense) income(2) | (50 | ) | (25 | ) | (3 | ) | 1 | (1 | ) | 9 | (56 | ) | (125 | ) | |||||||||||||||||||
Income tax (expense) benefit | (76 | ) | (68 | ) | (34 | ) | (18 | ) | 9 | 3 | 79 | (105 | ) | ||||||||||||||||||||
Equity earnings, net of income tax | — | — | — | 9 | — | — | — | 9 | |||||||||||||||||||||||||
Losses (earnings) attributable to noncontrolling interests | 4 | — | (4 | ) | (32 | ) | 4 | (1 | ) | (1 | ) | (30 | ) | ||||||||||||||||||||
Earnings (losses) | $ | 151 | $ | 151 | $ | 29 | $ | 56 | $ | 12 | $ | (3 | ) | $ | (17 | ) | $ | 379 |
(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) | Includes $(870) from (unfavorable) favorable impacts from the Tax Cuts and Jobs Act of 2017, as follows, in millions: SDG&E $(28), SoCalGas $(2), Sempra Renewables $192, Sempra LNG & Midstream $133 and Parent and Other $(1,165). |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||
Table F (Unaudited) | |||||||||||||||||||||||||||||||||
STATEMENT OF OPERATIONS DATA BY SEGMENT | |||||||||||||||||||||||||||||||||
Year ended December 31, 2017 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra South American Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG & Midstream | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 4,476 | $ | 3,785 | $ | 1,567 | $ | 1,196 | $ | 94 | $ | 540 | $ | (451 | ) | $ | 11,207 | ||||||||||||||||
Cost of sales and other expenses | (2,742 | ) | (2,648 | ) | (1,228 | ) | (568 | ) | (76 | ) | (489 | ) | 367 | (7,384 | ) | ||||||||||||||||||
Depreciation and amortization | (670 | ) | (515 | ) | (54 | ) | (156 | ) | (38 | ) | (42 | ) | (15 | ) | (1,490 | ) | |||||||||||||||||
Write-off and impairment losses | (351 | ) | — | — | (72 | ) | — | — | — | (423 | ) | ||||||||||||||||||||||
Equity earnings, before income tax | — | — | — | — | 29 | 5 | — | 34 | |||||||||||||||||||||||||
Other income, net | 66 | 36 | 14 | 105 | 2 | 3 | 28 | 254 | |||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 779 | 658 | 299 | 505 | 11 | 17 | (71 | ) | 2,198 | ||||||||||||||||||||||||
Net interest (expense) income(2) | (203 | ) | (102 | ) | (10 | ) | (74 | ) | (8 | ) | 17 | (234 | ) | (614 | ) | ||||||||||||||||||
Income tax (expense) benefit(3) | (155 | ) | (160 | ) | (80 | ) | (227 | ) | 226 | 119 | (999 | ) | (1,276 | ) | |||||||||||||||||||
Equity earnings, net of income tax | — | — | 4 | 38 | — | — | — | 42 | |||||||||||||||||||||||||
(Earnings) losses attributable to noncontrolling interests | (14 | ) | — | (27 | ) | (73 | ) | 23 | (3 | ) | — | (94 | ) | ||||||||||||||||||||
Earnings (losses) | $ | 407 | $ | 396 | $ | 186 | $ | 169 | $ | 252 | $ | 150 | $ | (1,304 | ) | $ | 256 | ||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra South American Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG & Midstream | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 4,253 | $ | 3,471 | $ | 1,556 | $ | 725 | $ | 34 | $ | 508 | $ | (364 | ) | $ | 10,183 | ||||||||||||||||
Cost of sales and other expenses | (2,617 | ) | (2,416 | ) | (1,255 | ) | (413 | ) | (56 | ) | (780 | ) | 287 | (7,250 | ) | ||||||||||||||||||
Depreciation and amortization | (646 | ) | (476 | ) | (49 | ) | (77 | ) | (6 | ) | (47 | ) | (11 | ) | (1,312 | ) | |||||||||||||||||
Impairments | — | (22 | ) | — | (131 | ) | — | — | — | (153 | ) | ||||||||||||||||||||||
Gain on sale of assets | — | — | — | — | 4 | 130 | — | 134 | |||||||||||||||||||||||||
Equity earnings (losses), before income tax | — | — | — | — | 34 | (28 | ) | — | 6 | ||||||||||||||||||||||||
Remeasurement of equity method investment | — | — | — | 617 | — | — | — | 617 | |||||||||||||||||||||||||
Other income (expense), net | 50 | 32 | 21 | (5 | ) | 2 | 3 | 29 | 132 | ||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 1,040 | 589 | 273 | 716 | 12 | (214 | ) | (59 | ) | 2,357 | |||||||||||||||||||||||
Net interest (expense) income(2) | (195 | ) | (97 | ) | (17 | ) | (7 | ) | 1 | 28 | (241 | ) | (528 | ) | |||||||||||||||||||
Income tax (expense) benefit | (280 | ) | (143 | ) | (80 | ) | (188 | ) | 38 | 80 | 184 | (389 | ) | ||||||||||||||||||||
Equity earnings, net of income tax | — | — | 3 | 75 | — | — | — | 78 | |||||||||||||||||||||||||
Losses (earnings) attributable to noncontrolling interests | 5 | — | (23 | ) | (133 | ) | 4 | (1 | ) | — | (148 | ) | |||||||||||||||||||||
Earnings (losses) | $ | 570 | $ | 349 | $ | 156 | $ | 463 | $ | 55 | $ | (107 | ) | $ | (116 | ) | $ | 1,370 |
(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) | Includes $(870) from (unfavorable) favorable impacts from the Tax Cuts and Jobs Act of 2017, as follows, in millions: SDG&E $(28), SoCalGas $(2), Sempra Renewables $192, Sempra LNG & Midstream $133 and Parent and Other $(1,165). |