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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
 
 
 
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
Date of Report
 
(Date of earliest event reported):
May 7, 2018

 
SEMPRA ENERGY
(Exact name of registrant as specified in its charter)

 
 
 
 
 
CALIFORNIA
 
1-14201
 
33-0732627
(State or other jurisdiction of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)

 
 
 
488 8th AVENUE, SAN DIEGO, CALIFORNIA
 
92101
(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))
 
 
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. [ ]






FORM 8-K

Item 2.02 Results of Operations and Financial Condition.

The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On May 7, 2018, Sempra Energy issued a press release announcing consolidated earnings of $347 million, or $1.33 per diluted share of common stock, for the first quarter of 2018. The press release has been posted on Sempra Energy’s website (www.sempra.com) and a copy is attached as Exhibit 99.1.

Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Statement of Operations Data by Segment for the three months ended March 31, 2018 and 2017. A copy of such information is attached as Exhibit 99.2.


Item 9.01 Financial Statements and Exhibits.
  
Exhibits

99.1 March 31, 2018 Sempra Energy News Release (including tables).

99.2 Sempra Energy’s Statement of Operations Data by Segment for the three months ended March 31, 2018 and 2017.











SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
SEMPRA ENERGY,
 
(Registrant)
 
 
Date: May 7, 2018
By: /s/ Peter R. Wall
 
Peter R. Wall
Vice President, Controller and Chief Accounting Officer
 



Exhibit
Exhibit 99.1

https://cdn.kscope.io/967446b50f798fd637c3b4f8174dc789-sempragraphic2a02.gif
NEWS RELEASE




Media Contact:    Doug Kline
Sempra Energy    
(877) 340-8875
            
Financial Contact:    Patrick Billings
Sempra Energy
(877) 736-7727
investor@sempra.com

SEMPRA ENERGY ANNOUNCES
FIRST-QUARTER 2018 RESULTS

•
Leadership Succession Plan Implemented
•
Oncor Transaction Completed
•
IEnova Awarded $130 Million Liquids Fuel Marine Terminal Project

SAN DIEGO, May 7, 2018 - Sempra Energy (NYSE: SRE) today reported first-quarter 2018 earnings of $347 million, or $1.33 per diluted share, compared with first-quarter 2017 earnings of $441 million, or $1.75 per diluted share.
Sempra Energy’s first-quarter 2018 earnings included higher financing costs at the parent company. These financing costs were incurred starting in January, primarily related to the anticipated acquisition of a majority stake in Oncor Electric Delivery Company LLC (Oncor), which was completed in early March. First-quarter 2018 consolidated results also reflected $25 million income-tax expense to adjust 2017 provisional amounts related to the Tax Cuts and Jobs Act of 2017.
“During the quarter, we successfully implemented our leadership succession plan, completed the Oncor transaction and continued execution of our capital program in our utility and infrastructure businesses,” said Jeffrey W. Martin, CEO of Sempra Energy. “Our underlying business performance was solid and consistent with our expectations.”



OPERATING HIGHLIGHTS
On May 1, Martin became Sempra Energy’s CEO, while Joseph A. Householder became Sempra Energy’s president and chief operating officer and Trevor I. Mihalik became Sempra Energy’s executive vice president and chief financial officer. Debra L. Reed announced in March that she would step down as president and CEO of Sempra Energy May 1 and continue as executive chairman of the company until her retirement on Dec. 1. Previously, Martin was Sempra Energy’s executive vice president and chief financial officer, Householder was Sempra Energy’s corporate group president of infrastructure businesses and Mihalik was Sempra Energy’s senior vice president, controller and chief accounting officer.
On March 9, Sempra Energy completed its $9.45 billion acquisition of an approximate 80-percent indirect ownership interest in Oncor, after receiving final regulatory approvals for the transaction. Sempra Energy expects $320 million to $360 million for its portion of partial-year earnings from Oncor in 2018.
Last month, San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) filed supplemental testimony in their 2019 General Rate Case applications regarding impacts of federal tax reform. As a result of tax reform, SoCalGas is projecting reduced customer bills, while SDG&E expects incremental wildfire mitigation investments to substantially offset any bill reductions.
Sempra Energy’s Mexican subsidiary IEnova announced April 12 that the company has been awarded a $130 million project to build and operate a liquid fuels marine terminal near Ensenada, Mexico. In connection with the project, IEnova has signed long-term supply contracts with multinational counterparties, including an affiliate of Chevron, for all of the terminal’s capacity. The terminal is expected to commence operations in the second half of 2020.
 
INTERNET BROADCAST
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. EDT with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 1980202.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2017 revenues of more than $11 billion. Sempra Energy is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' approximately 20,000 employees serve more than 40 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 such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "assumes," "depends," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "target," "pursue," "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.



Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the California Public Utilities Commission (CPUC), U.S. Department of Energy, California Division of Oil, Gas, and Geothermal Resources, Federal Energy Regulatory Commission, U.S. Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, Los Angeles County Department of Public Health, Public Utility Commission of Texas, states, cities and counties, and other regulatory and governmental bodies in the United States and other countries in which we operate; the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget, and risks in obtaining the consent and participation of partners and counterparties; 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; denial of approvals of proposed settlements or modifications of settlements; and delays in, or disallowance or denial of, regulatory agency authorizations to recover costs in rates from customers (including with respect to amounts associated with the San Onofre Nuclear Generating Station facility and 2007 wildfires) or regulatory agency approval for projects required to enhance safety and reliability, any of which may raise our cost of capital and materially impair our ability to finance our operations; the greater degree and prevalence of wildfires in California in recent years and risk that we may be found liable for damages regardless of fault, such as in cases where inverse condemnation applies, and risk that we may not be able to recover any such costs in rates from customers in California; 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 transmission grid, moratoriums or limitations on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; changes in energy markets; volatility in commodity prices; moves to reduce or eliminate reliance on natural gas; and the impact on the value of our investments in natural gas storage and related assets from low natural gas prices, low volatility of natural gas prices and the inability to procure favorable long-term contracts for storage services; risks posed by actions of third parties who control the operations of our investments, and risks that our partners or counterparties will be unable or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, accidents, equipment failures, computer system outages, explosions, terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of greenhouse gases, radioactive materials and harmful emissions, cause wildfires 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), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of insurance, to the extent that such insurance is available or not prohibitively expensive; cybersecurity threats to the energy grid, 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; capital markets and economic conditions, including the availability of credit and the liquidity of our investments; and fluctuations in inflation, interest and currency exchange rates and our ability to effectively hedge the risk of such fluctuations; the impact of recent federal tax reform and uncertainty as to how it may be applied, and our ability to mitigate adverse impacts; actions by credit rating agencies to downgrade our credit ratings or those of our subsidiaries or to place those ratings on negative outlook; changes in foreign and domestic trade policies and laws, including border tariffs, and revisions to international trade agreements, such as the North American Free Trade Agreement, that make us less competitive or impair our ability to resolve trade disputes; the ability to win competitively bid infrastructure projects against a number of strong and aggressive competitors; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company's (SDG&E) electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates 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 and from possible departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation or other forms of distributed and local power generation, and the potential risk of nonrecovery for stranded assets and contractual obligations; the ability to realize the anticipated benefits from our investment in Oncor Electric Delivery Holdings Company LLC (Oncor Holdings); the ability to obtain additional permanent equity financing for the acquisition of our investment in Oncor Holdings on favorable terms; indebtedness we have incurred to fund the acquisition of our investment in Oncor Holdings, which may make it more difficult for us to repay or refinance our debt or may require us to take other actions that may decrease business flexibility and increase borrowing costs; Oncor Electric Delivery Company LLC’s (Oncor) ability to eliminate or reduce its quarterly dividends due to its requirement to meet and maintain its regulatory capital structure, or because any of the three major credit rating agencies rates Oncor's senior secured debt securities below BBB (or the equivalent) or Oncor's independent directors or a minority member director determine it is in the best interest of Oncor to retain such amounts to meet future capital expenditures; and other uncertainties, some of which may be difficult to predict and are beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov. 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 South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor and IEnova are not regulated by the California Public Utilities Commission.














SEMPRA ENERGY
Table A
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
Three months ended
March 31,
(Dollars in millions, except per share amounts)
2018
 
2017(1)
 
(unaudited)
REVENUES
 
 
 
Utilities
$
2,598

 
$
2,698

Energy-related businesses
364

 
333

Total revenues
2,962


3,031

 
 
 
 
EXPENSES AND OTHER INCOME
 
 
 
Utilities:
 
 
 
Cost of electric fuel and purchased power
(546
)
 
(527
)
Cost of natural gas
(348
)
 
(485
)
Energy-related businesses:
 
 
 
Cost of natural gas, electric fuel and purchased power
(69
)
 
(67
)
Other cost of sales
(18
)
 
(22
)
Operation and maintenance
(781
)
 
(719
)
Depreciation and amortization
(386
)
 
(360
)
Franchise fees and other taxes
(117
)
 
(110
)
Other income, net
153

 
174

Interest income
33

 
6

Interest expense
(216
)
 
(169
)
Income before income taxes and equity losses of unconsolidated subsidiaries
667


752

Income tax expense
(289
)
 
(295
)
Equity losses
(20
)
 
(5
)
Net income
358


452

Losses (earnings) attributable to noncontrolling interests
17

 
(11
)
Mandatory convertible preferred stock dividends
(28
)
 
—

Earnings attributable to common shares
$
347


$
441

 
 
 
 
Basic earnings per common share
$
1.34

 
$
1.76

Weighted-average number of shares outstanding, basic (thousands)
257,932

 
251,131

 
 
 
 
Diluted earnings per common share
$
1.33

 
$
1.75

Weighted-average number of shares outstanding, diluted (thousands)
259,490

 
252,246

 
 
 
 
Dividends declared per share of common stock
$
0.90

 
$
0.82

(1) 
As adjusted for the retrospective adoption of ASU 2017-07 and a reclassification to conform to current year presentation.




SEMPRA ENERGY
Table A (Continued)
RECONCILIATION OF SEMPRA ENERGY ADJUSTED EARNINGS TO SEMPRA ENERGY GAAP EARNINGS (Unaudited)
Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2018 and 2017 as follows:
Three months ended March 31, 2018:
▪$(25) million income tax expense in 2018 to adjust Tax Cuts and Jobs Act of 2017 (TCJA) provisional amounts

Three months ended March 31, 2017:
▪
$3 million deferred income tax benefit on Termoeléctrica de Mexicali (TdM) assets held for sale at Sempra Mexico

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and/or nature of the excluded items, management believes that these non-GAAP financial measures provide a meaningful comparison of the performance of Sempra Energy’s business operations from 2018 to 2017 and to future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy GAAP Earnings and GAAP Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.    
 
 
Income tax expense
Earnings
 
Income tax benefit(1)
Noncontrolling interests
Earnings
(Dollars in millions, except per share amounts)
Three months ended March 31, 2018
 
Three months ended March 31, 2017
Sempra Energy GAAP Earnings
 
$
347

 
 
 
$
441

Excluded items:
 
 
 
 
 
 
Impact from the TCJA
$
25

25

 
$
—

$
—

—

Deferred income tax benefit associated with TdM
—

—

 
(5
)
2

(3
)
Sempra Energy Adjusted Earnings
 
$
372

 
 
 
$
438

 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
Sempra Energy GAAP Earnings
 
$
1.33

 
 
 
$
1.75

Sempra Energy Adjusted Earnings
 
$
1.43

 
 
 
$
1.74

Weighted-average number of shares outstanding, diluted (thousands)
 
259,490

 
 
 
252,246

(1) 
Income taxes associated with TdM were calculated based on the applicable statutory tax rate, including translation from historic to current exchange rates.




SEMPRA ENERGY
Table B
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
 
(Dollars in millions)
March 31, 2018
 
December 31, 2017(1)
 
(unaudited)
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
239

 
$
288

Restricted cash
54

 
62

Accounts receivable, net
1,681

 
1,584

Due from unconsolidated affiliates
63

 
37

Income taxes receivable
118

 
110

Inventories
285

 
307

Regulatory assets
241

 
325

Fixed-price contracts and other derivatives
111

 
66

Greenhouse gas allowances
301

 
299

Assets held for sale
135

 
127

Other
166

 
136

Total current assets
3,394

 
3,341

 
 
 
 
Other assets:
 
 
 
Restricted cash
14

 
14

Due from unconsolidated affiliates
666

 
598

Regulatory assets
1,597

 
1,517

Nuclear decommissioning trusts
1,017

 
1,033

Investment in Oncor Holdings
9,176

 
—

Other investments
2,590

 
2,527

Goodwill
2,406

 
2,397

Other intangible assets
596

 
596

Dedicated assets in support of certain benefit plans
421

 
455

Insurance receivable for Aliso Canyon costs
447

 
418

Deferred income taxes
117

 
170

Greenhouse gas allowances
154

 
93

Sundry
865

 
792

Total other assets
20,066

 
10,610

Property, plant and equipment, net
37,025

 
36,503

Total assets
$
60,485

 
$
50,454

 
 
 
 
Liabilities and Equity
 
 
 
Current liabilities:
 
 
 
Short-term debt
$
3,665

 
$
1,540

Accounts payable
1,205

 
1,523

Due to unconsolidated affiliates
6

 
7

Dividends and interest payable
494

 
342

Accrued compensation and benefits
253

 
439

Regulatory liabilities
210

 
109

Current portion of long-term debt
1,871

 
1,427

Fixed-price contracts and other derivatives
69

 
109

Customer deposits
164

 
162

Reserve for Aliso Canyon costs
122

 
84

Greenhouse gas obligations
301

 
299

Liabilities held for sale
52

 
49

Other
697

 
545

Total current liabilities
9,109

 
6,635

Long-term debt
20,863

 
16,445

 
 
 
 
Deferred credits and other liabilities:
 
 
 
Customer advances for construction
149

 
150

Due to unconsolidated affiliates
35

 
35

Pension and other postretirement benefit plan obligations, net of plan assets
1,215

 
1,148

Deferred income taxes
2,654

 
2,767

Deferred investment tax credits
26

 
28

Regulatory liabilities
3,922

 
3,922

Asset retirement obligations
2,766

 
2,732

Fixed-price contracts and other derivatives
275

 
316

Greenhouse gas obligations
19

 
—

Deferred credits and other
1,147

 
1,136

Total deferred credits and other liabilities
12,208

 
12,234

Equity:
 
 
 
Sempra Energy shareholders’ equity
15,844

 
12,670

Preferred stock of subsidiary
20

 
20

Other noncontrolling interests
2,441

 
2,450

Total equity
18,305

 
15,140

Total liabilities and equity
$
60,485

 
$
50,454

(1) Derived from audited financial statements.




SEMPRA ENERGY
Table C
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31,
(Dollars in millions)
 
2018
 
2017(1)
 
 
(unaudited)
Cash Flows from Operating Activities
 
 
 
 
Net income
 
$
358

 
$
452

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
386

 
360

Deferred income taxes and investment tax credits
 
229

 
268

Equity losses
 
20

 
5

Fixed-price contracts and other derivatives
 
(35
)
 
(106
)
Other
 
46

 
(22
)
Net change in other working capital components
 
84

 
84

Insurance receivable for Aliso Canyon costs
 
(29
)
 
(15
)
Changes in other assets
 
(107
)
 
(41
)
Changes in other liabilities
 
14

 
19

Net cash provided by operating activities
 
966

 
1,004

 
 
 
 
 
Cash Flows from Investing Activities
 
 
 
 
Expenditures for property, plant and equipment
 
(1,035
)
 
(992
)
Expenditures for investments and acquisitions,
net of cash and cash equivalents acquired
 
(9,617
)
 
(59
)
Distributions from investments
 
8

 
17

Purchases of nuclear decommissioning trust assets
 
(210
)
 
(350
)
Proceeds from sales by nuclear decommissioning trusts
 
210

 
357

Advances to unconsolidated affiliates
 
(83
)
 
(5
)
Repayments of advances to unconsolidated affiliates
 
69

 
2

Other
 
26

 
4

Net cash used in investing activities
 
(10,632
)
 
(1,026
)
 
 
 
 
 
Cash Flows from Financing Activities
 
 
 
 
Common dividends paid
 
(194
)
 
(176
)
Issuances of mandatory convertible preferred stock, net of $32 in offering costs
 
1,693

 
—

Issuances of common stock, net of $24 in offering costs
 
1,278

 
17

Repurchases of common stock
 
(19
)
 
(14
)
Issuances of debt (maturities greater than 90 days)
 
5,988

 
542

Payments on debt (maturities greater than 90 days)
 
(193
)
 
(313
)
Increase (decrease) in short-term debt, net
 
1,140

 
(97
)
Settlement of cross-currency swaps
 
(33
)
 
—

Other
 
(52
)
 
(5
)
Net cash provided by (used in) financing activities
 
9,608

 
(46
)
 
 
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
1

 
10

 
 
 
 
 
Decrease in cash, cash equivalents and restricted cash
 
(57
)
 
(58
)
Cash, cash equivalents and restricted cash, January 1
 
364

 
425

Cash, cash equivalents and restricted cash, March 31
 
$
307

 
$
367

(1) 
As adjusted for the retrospective adoption of ASU 2016-18.




SEMPRA ENERGY
Table D
 
 
 
 
 
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS
 
 
 
 
 
 
 
Three months ended
March 31,
(Dollars in millions)
 
2018
 
2017
 
    (unaudited)
Earnings (Losses)
 
 
 
 
Sempra Utilities:
 
 
 
 
San Diego Gas & Electric
 
$
170

 
$
155

Southern California Gas
 
225

 
203

Sempra Texas Utility
 
15

 
—

Sempra South American Utilities
 
46

 
47

Sempra Infrastructure:
 
 
 
 
Sempra Mexico
 
20

 
48

Sempra Renewables
 
21

 
11

Sempra LNG & Midstream
 
(16
)
 
1

Parent and other
 
(134
)
 
(24
)
Total
 
$
347

 
$
441

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
March 31,
(Dollars in millions)
 
2018
 
2017
 
    (unaudited)
Capital Expenditures, Investments and Acquisitions
 
 
 
 
Sempra Utilities:
 
 
 
 
San Diego Gas & Electric
 
$
475

 
$
418

Southern California Gas
 
403

 
357

Sempra South American Utilities
 
56

 
43

Sempra Infrastructure:
 
 
 
 
Sempra Mexico
 
87

 
140

Sempra Renewables
 
31

 
69

Sempra LNG & Midstream
 
46

 
15

Parent and other
 
9,554

 
9

Total
 
$
10,652

 
$
1,051







SEMPRA ENERGY
Table E
 
OTHER OPERATING STATISTICS (Unaudited)
 
 
 
Three months ended
March 31,
UTILITIES
 
2018
 
2017
 
 
 
 
 
SDG&E and SoCalGas
 
 
 
 
 
Gas sales (Bcf)(1)
 
113

 
126

 
Transportation (Bcf)(1)
 
147

 
156

 
Total deliveries (Bcf)(1)
 
260

 
282

 
 
 
 
 
 
Total gas customer meters (thousands)
 
6,854

 
6,816

 
 
 
 
 
 
 
 
 
SDG&E
 
 
 
 
 
Electric sales (millions of kWhs)(1)
 
3,603

 
3,764

 
Direct access (millions of kWhs)
 
745

 
787

 
Total deliveries (millions of kWhs)(1)
 
4,348

 
4,551

 
 
 
 
 
 
Total electric customer meters (thousands)
 
1,449

 
1,436

 
 
 
 
 
Oncor(2)
 
 
 
 
 
Total deliveries (millions of kWhs)
 
6,655

 
—

 
Total electric customer meters (thousands)
 
3,572

 
—

 
 
 
 
 
Ecogas
 
 
 
 
 
Natural gas sales (Bcf)
 
6

 
8

 
Natural gas customer meters (thousands)
 
121

 
119

 
 
 
 
 
Chilquinta Energía
 
 
 
 
 
Electric sales (millions of kWhs)
 
798

 
811

 
Tolling (millions of kWhs)
 
62

 
20

 
Total deliveries (millions of kWhs)
 
860

 
831

 
 
 
 
 
 
 
Electric customer meters (thousands)
 
709

 
689

 
 
 
 
 
Luz Del Sur
 
 
 
 
 
Electric sales (millions of kWhs)
 
1,742

 
1,894

 
Tolling (millions of kWhs)
 
558

 
445

 
Total deliveries (millions of kWhs)
 
2,300

 
2,339

 
 
 
 
 
 
 
Electric customer meters (thousands)
 
1,109

 
1,080

 
 
 
 
 
 
 
 
 
 
ENERGY-RELATED BUSINESSES
 
 
 
 
 
 
 
 
 
Power generated and sold (millions of kWhs)
 
 
 
 
Sempra Mexico(3)
 
1,221

 
1,055

Sempra Renewables(4)
 
1,192

 
1,014

 
 
 
 
 
 
 
 
 
(1)
Includes intercompany sales.
(2)
Includes 100 percent of the electric deliveries and customer meters of Oncor Electric Delivery Company LLC (Oncor), in which we hold an 80.25-percent interest through our March 2018 acquisition of our equity method investment in Oncor Electric Delivery Holdings Company LLC (Oncor Holdings).
(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. 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. These subsidiaries are not consolidated within Sempra Energy, and the related investments are accounted for under the equity method.


Exhibit


Exhibit 99.2
 
         SEMPRA ENERGY
           Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
SDG&E
 
SoCalGas
 
Sempra Texas Utility
 
Sempra South American Utilities
 
Sempra Mexico
 
Sempra Renewables
 
Sempra LNG & Midstream
 
Consolidating Adjustments, Parent & Other
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
1,055

 
$
1,126

 
$
—

 
$
426

 
$
308

 
$
25

 
$
104

 
$
(82
)
 
 
$
2,962

Cost of sales and other expenses
(641
)
 
(713
)
 
—

 
(337
)
 
(129
)
 
(21
)
 
(102
)
 
64

 
 
(1,879
)
Depreciation and amortization
(166
)
 
(135
)
 
—

 
(14
)
 
(43
)
 
(13
)
 
(11
)
 
(4
)
 
 
(386
)
Other income (expense), net
28

 
33

 
—

 
1

 
93

 
—

 
—

 
(2
)
 
 
153

Income (loss) before interest and tax (1)
276

 
311

 
—

 
76

 
229

 
(9
)
 
(9
)
 
(24
)
 
 
850

Net interest (expense) income (2)
(51
)
 
(27
)
 
—

 
(4
)
 
(15
)
 
(3
)
 
5

 
(116
)
 
 
(211
)
Income tax (expense) benefit
(56
)
 
(59
)
 
—

 
(20
)
 
(155
)
 
7

 
(12
)
 
6

 
 
(289
)
Equity earnings (losses), net
—

 
—

 
15

 
1

 
(41
)
 
5

 
—

 
—

 
 
(20
)
Losses (earnings) attributable to noncontrolling interests
1

 
—

 
—

 
(7
)
 
2

 
21

 
—

 
—

 
 
17

Earnings (losses)
$
170

 
$
225

 
$
15

 
$
46

 
$
20

 
$
21

 
$
(16
)
 
$
(134
)
 
 
$
347

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
SDG&E
 
SoCalGas
 
Sempra Texas Utility
 
Sempra South American Utilities
 
Sempra Mexico
 
Sempra Renewables
 
Sempra LNG & Midstream
 
Consolidating Adjustments, Parent & Other
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
1,057

 
$
1,241

 
$
—

 
$
412

 
$
264

 
$
22

 
$
132

 
$
(97
)
 
 
$
3,031

Cost of sales and other expenses(3)
(620
)
 
(803
)
 
—

 
(326
)
 
(121
)
 
(15
)
 
(128
)
 
83

 
 
(1,930
)
Depreciation and amortization
(163
)
 
(126
)
 
—

 
(13
)
 
(36
)
 
(9
)
 
(10
)
 
(3
)
 
 
(360
)
Other income, net(3)
22

 
14

 
—

 
3

 
127

 
—

 
1

 
7

 
 
174

Income (loss) before interest and tax (1)
296

 
326

 
—

 
76

 
234

 
(2
)
 
(5
)
 
(10
)
 
 
915

Net interest (expense) income (2)
(49
)
 
(25
)
 
—

 
(4
)
 
(30
)
 
(3
)
 
6

 
(58
)
 
 
(163
)
Income tax (expense) benefit
(90
)
 
(98
)
 
—

 
(19
)
 
(142
)
 
11

 
(1
)
 
44

 
 
(295
)
Equity earnings (losses), net
—

 
—

 
—

 
1

 
(9
)
 
2

 
1

 
—

 
 
(5
)
(Earnings) losses attributable to noncontrolling interests
(2
)
 
—

 
—

 
(7
)
 
(5
)
 
3

 
—

 
—

 
 
(11
)
Earnings (losses)
$
155

 
$
203

 
$
—

 
$
47

 
$
48

 
$
11

 
$
1

 
$
(24
)
 
 
$
441

 
 
(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.
(3)
As adjusted for the retrospective adoption of ASU 2017-07.