Date of Report | |
(Date of earliest event reported): | August 6, 2018 |
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)) |
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. [ ] |
SAN DIEGO GAS & ELECTRIC COMPANY, | |
(Registrant) | |
Date: August 6, 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 |
• | Development Advancing for LNG Export Projects |
• | Asset Sales Process Underway for U.S. Wind, Solar and Gulf Coast Natural Gas Storage |
• | $1.82 Billion Raised in Successful Equity Offerings |
SEMPRA ENERGY | ||||||||||||||||
Table A | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in millions, except per share amounts) | 2018 | 2017(1) | 2018 | 2017(1) | ||||||||||||
(unaudited) | ||||||||||||||||
REVENUES | ||||||||||||||||
Utilities | $ | 2,190 | $ | 2,197 | $ | 4,788 | $ | 4,895 | ||||||||
Energy-related businesses | 374 | 336 | 738 | 669 | ||||||||||||
Total revenues | 2,564 | 2,533 | 5,526 | 5,564 | ||||||||||||
EXPENSES AND OTHER INCOME | ||||||||||||||||
Utilities: | ||||||||||||||||
Cost of electric fuel and purchased power | (557 | ) | (553 | ) | (1,103 | ) | (1,080 | ) | ||||||||
Cost of natural gas | (179 | ) | (228 | ) | (527 | ) | (713 | ) | ||||||||
Energy-related businesses: | ||||||||||||||||
Cost of natural gas, electric fuel and purchased power | (69 | ) | (62 | ) | (138 | ) | (129 | ) | ||||||||
Other cost of sales | (19 | ) | 38 | (37 | ) | 16 | ||||||||||
Operation and maintenance | (783 | ) | (748 | ) | (1,564 | ) | (1,467 | ) | ||||||||
Depreciation and amortization | (392 | ) | (368 | ) | (778 | ) | (728 | ) | ||||||||
Franchise fees and other taxes | (104 | ) | (101 | ) | (221 | ) | (211 | ) | ||||||||
Impairment losses | (1,300 | ) | (71 | ) | (1,300 | ) | (71 | ) | ||||||||
Other (expense) income, net | (54 | ) | 108 | 99 | 282 | |||||||||||
Interest income | 21 | 8 | 54 | 14 | ||||||||||||
Interest expense | (237 | ) | (159 | ) | (453 | ) | (328 | ) | ||||||||
(Loss) income before income taxes and equity (losses) earnings of unconsolidated subsidiaries | (1,109 | ) | 397 | (442 | ) | 1,149 | ||||||||||
Income tax benefit (expense) | 583 | (167 | ) | 294 | (462 | ) | ||||||||||
Equity (losses) earnings | (4 | ) | 18 | (24 | ) | 13 | ||||||||||
Net (loss) income | (530 | ) | 248 | (172 | ) | 700 | ||||||||||
(Earnings) losses attributable to noncontrolling interests | (5 | ) | 12 | 12 | 1 | |||||||||||
Mandatory convertible preferred stock dividends | (25 | ) | — | (53 | ) | — | ||||||||||
Preferred dividends of subsidiary | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||
(Losses) earnings attributable to common shares | $ | (561 | ) | $ | 259 | $ | (214 | ) | $ | 700 | ||||||
Basic (losses) earnings per common share | $ | (2.11 | ) | $ | 1.03 | $ | (0.82 | ) | $ | 2.79 | ||||||
Weighted-average number of shares outstanding, basic (thousands) | 265,837 | 251,447 | 261,906 | 251,290 | ||||||||||||
Diluted (losses) earnings per common share | $ | (2.11 | ) | $ | 1.03 | $ | (0.82 | ) | $ | 2.77 | ||||||
Weighted-average number of shares outstanding, diluted (thousands) | 265,837 | 252,822 | 261,906 | 252,609 | ||||||||||||
Dividends declared per share of common stock | $ | 0.89 | $ | 0.83 | $ | 1.79 | $ | 1.65 |
(1) | As adjusted for the retrospective adoption of ASU 2017-07 and a reclassification to conform to current year presentation. |
▪ | $(755) million impairment of certain non-utility natural gas storage assets in the southeast U.S. at Sempra LNG & Midstream |
▪ | $(145) million other-than-temporary impairment of certain U.S. wind equity method investments at Sempra Renewables |
▪ | $(22) million impacts associated with Aliso Canyon litigation at SoCalGas |
▪ | $(47) million impairment of Sempra Mexico’s Termoeléctrica de Mexicali (TdM) assets that were held for sale until June 2018 |
▪ | $2 million deferred income tax benefit on the TdM assets that were held for sale |
▪ | $28 million of recoveries related to 2016 permanent release of pipeline capacity at Sempra LNG & Midstream |
▪ | $(755) million impairment of certain non-utility natural gas storage assets |
▪ | $(145) million other-than-temporary impairment of certain U.S. wind equity method investments |
▪ | $(22) million impacts associated with Aliso Canyon litigation |
▪ | $(25) million income tax expense to adjust Tax Cuts and Jobs Act of 2017 (TCJA) provisional amounts |
▪ | $(47) million impairment of TdM assets that were held for sale |
▪ | $5 million deferred income tax benefit on the TdM assets that were held for sale |
▪ | $28 million of recoveries related to 2016 permanent release of pipeline capacity |
Pretax amount | Income tax (benefit) expense(1) | Non-controlling interests | (Losses) earnings | Pretax amount | Income tax (benefit) expense(1) | Non-controlling interests | Earnings | |||||||||||||||||||
(Dollars in millions, except per share amounts) | Three months ended June 30, 2018 | Three months ended June 30, 2017 | ||||||||||||||||||||||||
Sempra Energy GAAP (Losses) Earnings | $ | (561 | ) | $ | 259 | |||||||||||||||||||||
Excluded items: | ||||||||||||||||||||||||||
Impairment of non-utility natural gas storage assets | $ | 1,300 | $ | (499 | ) | $ | (46 | ) | 755 | $ | — | $ | — | $ | — | — | ||||||||||
Impairment of U.S. wind equity method investments | 200 | (55 | ) | — | 145 | — | — | — | — | |||||||||||||||||
Impacts associated with Aliso Canyon litigation | 1 | 21 | — | 22 | — | — | — | — | ||||||||||||||||||
Impairment of TdM assets held for sale | — | — | — | — | 71 | — | (24 | ) | 47 | |||||||||||||||||
Deferred income tax benefit associated with TdM | — | — | — | — | — | (3 | ) | 1 | (2 | ) | ||||||||||||||||
Recoveries related to 2016 permanent release of pipeline capacity | — | — | — | — | (47 | ) | 19 | — | (28 | ) | ||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 361 | $ | 276 | ||||||||||||||||||||||
Diluted (losses) earnings per common share: | ||||||||||||||||||||||||||
Sempra Energy GAAP (Losses) Earnings | $ | (2.11 | ) | (2) | $ | 1.03 | ||||||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 1.35 | $ | 1.10 | ||||||||||||||||||||||
Weighted-average number of shares outstanding, diluted (thousands) | 267,536 | (2) | 252,822 | |||||||||||||||||||||||
Six months ended June 30, 2018 | Six months ended June 30, 2017 | |||||||||||||||||||||||||
Sempra Energy GAAP (Losses) Earnings | $ | (214 | ) | $ | 700 | |||||||||||||||||||||
Excluded items: | ||||||||||||||||||||||||||
Impairment of non-utility natural gas storage assets | $ | 1,300 | $ | (499 | ) | $ | (46 | ) | 755 | $ | — | $ | — | $ | — | — | ||||||||||
Impairment of U.S. wind equity method investments | 200 | (55 | ) | — | 145 | — | — | — | — | |||||||||||||||||
Impacts associated with Aliso Canyon litigation | 1 | 21 | — | 22 | — | — | — | — | ||||||||||||||||||
Impact from the TCJA | — | 25 | — | 25 | — | — | — | — | ||||||||||||||||||
Impairment of TdM assets held for sale | — | — | — | — | 71 | — | (24 | ) | 47 | |||||||||||||||||
Deferred income tax benefit associated with TdM | — | — | — | — | — | (8 | ) | 3 | (5 | ) | ||||||||||||||||
Recoveries related to 2016 permanent release of pipeline capacity | — | — | — | — | (47 | ) | 19 | — | (28 | ) | ||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 733 | $ | 714 | ||||||||||||||||||||||
Diluted (losses) earnings per common share: | ||||||||||||||||||||||||||
Sempra Energy GAAP (Losses) Earnings | $ | (0.82 | ) | (2) | $ | 2.77 | ||||||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 2.78 | $ | 2.83 | ||||||||||||||||||||||
Weighted-average number of shares outstanding, diluted (thousands) | 263,584 | (2) | 252,609 | |||||||||||||||||||||||
(1) | Except for adjustments that are solely income tax and tax related to outside basis differences, income taxes were primarily calculated based on applicable statutory tax rates. Income taxes associated with 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) | In both the three months and six months ended June 30, 2018, total weighted-average number of potentially dilutive securities of 1.7 million 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 | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Dollars in millions) | June 30, 2018 | December 31, 2017(1) | ||||||||
(unaudited) | ||||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 252 | $ | 288 | ||||||
Restricted cash | 60 | 62 | ||||||||
Accounts receivable, net | 1,441 | 1,584 | ||||||||
Due from unconsolidated affiliates | 40 | 37 | ||||||||
Income taxes receivable | 96 | 110 | ||||||||
Inventories | 288 | 307 | ||||||||
Regulatory assets | 337 | 325 | ||||||||
Fixed-price contracts and other derivatives | 69 | 66 | ||||||||
Greenhouse gas allowances | 339 | 299 | ||||||||
Assets held for sale | 1,877 | 127 | ||||||||
Other | 148 | 136 | ||||||||
Total current assets | 4,947 | 3,341 | ||||||||
Other assets: | ||||||||||
Restricted cash | 15 | 14 | ||||||||
Due from unconsolidated affiliates | 634 | 598 | ||||||||
Regulatory assets | 1,644 | 1,517 | ||||||||
Nuclear decommissioning trusts | 1,022 | 1,033 | ||||||||
Investment in Oncor Holdings | 9,407 | — | ||||||||
Other investments | 2,576 | 2,527 | ||||||||
Goodwill | 2,371 | 2,397 | ||||||||
Other intangible assets | 221 | 596 | ||||||||
Dedicated assets in support of certain benefit plans | 443 | 455 | ||||||||
Insurance receivable for Aliso Canyon costs | 502 | 418 | ||||||||
Deferred income taxes | 139 | 170 | ||||||||
Greenhouse gas allowances | 228 | 93 | ||||||||
Sundry | 842 | 792 | ||||||||
Total other assets | 20,044 | 10,610 | ||||||||
Property, plant and equipment, net | 34,916 | 36,503 | ||||||||
Total assets | $ | 59,907 | $ | 50,454 | ||||||
Liabilities and Equity | ||||||||||
Current liabilities: | ||||||||||
Short-term debt | $ | 3,708 | $ | 1,540 | ||||||
Accounts payable | 1,215 | 1,523 | ||||||||
Due to unconsolidated affiliates | 10 | 7 | ||||||||
Dividends and interest payable | 491 | 342 | ||||||||
Accrued compensation and benefits | 317 | 439 | ||||||||
Regulatory liabilities | 282 | 109 | ||||||||
Current portion of long-term debt | 1,108 | 1,427 | ||||||||
Fixed-price contracts and other derivatives | 73 | 109 | ||||||||
Customer deposits | 175 | 162 | ||||||||
Reserve for Aliso Canyon costs | 160 | 84 | ||||||||
Greenhouse gas obligations | 339 | 299 | ||||||||
Liabilities held for sale | 158 | 49 | ||||||||
Other | 566 | 545 | ||||||||
Total current liabilities | 8,602 | 6,635 | ||||||||
Long-term debt | 21,278 | 16,445 | ||||||||
Deferred credits and other liabilities: | ||||||||||
Customer advances for construction | 148 | 150 | ||||||||
Due to unconsolidated affiliates | 36 | 35 | ||||||||
Pension and other postretirement benefit plan obligations, net of plan assets | 1,241 | 1,148 | ||||||||
Deferred income taxes | 2,078 | 2,767 | ||||||||
Deferred investment tax credits | 26 | 28 | ||||||||
Regulatory liabilities | 3,945 | 3,922 | ||||||||
Asset retirement obligations | 2,732 | 2,732 | ||||||||
Fixed-price contracts and other derivatives | 275 | 316 | ||||||||
Greenhouse gas obligations | 57 | — | ||||||||
Deferred credits and other | 1,125 | 1,136 | ||||||||
Total deferred credits and other liabilities | 11,663 | 12,234 | ||||||||
Equity: | ||||||||||
Sempra Energy shareholders’ equity | 15,826 | 12,670 | ||||||||
Preferred stock of subsidiary | 20 | 20 | ||||||||
Other noncontrolling interests | 2,518 | 2,450 | ||||||||
Total equity | 18,364 | 15,140 | ||||||||
Total liabilities and equity | $ | 59,907 | $ | 50,454 |
SEMPRA ENERGY | ||||||||||
Table C | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
Six months ended June 30, | ||||||||||
(Dollars in millions) | 2018 | 2017(1) | ||||||||
(unaudited) | ||||||||||
Cash Flows from Operating Activities | ||||||||||
Net (loss) income | $ | (172 | ) | $ | 700 | |||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 778 | 728 | ||||||||
Deferred income taxes and investment tax credits | (401 | ) | 411 | |||||||
Impairment losses | 1,300 | 71 | ||||||||
Equity losses (earnings) | 24 | (13 | ) | |||||||
Fixed-price contracts and other derivatives | (9 | ) | (142 | ) | ||||||
Other | 143 | (19 | ) | |||||||
Net change in other working capital components | 208 | 138 | ||||||||
Insurance receivable for Aliso Canyon costs | (84 | ) | 52 | |||||||
Changes in other noncurrent assets and liabilities, net | (158 | ) | (37 | ) | ||||||
Net cash provided by operating activities | 1,629 | 1,889 | ||||||||
Cash Flows from Investing Activities | ||||||||||
Expenditures for property, plant and equipment | (1,941 | ) | (1,802 | ) | ||||||
Expenditures for investments and acquisitions | (9,823 | ) | (97 | ) | ||||||
Distributions from investments | 9 | 18 | ||||||||
Purchases of nuclear decommissioning trust assets | (487 | ) | (823 | ) | ||||||
Proceeds from sales of nuclear decommissioning trust assets | 487 | 823 | ||||||||
Advances to unconsolidated affiliates | (84 | ) | (183 | ) | ||||||
Repayments of advances to unconsolidated affiliates | 69 | 2 | ||||||||
Other | 30 | 4 | ||||||||
Net cash used in investing activities | (11,740 | ) | (2,058 | ) | ||||||
Cash Flows from Financing Activities | ||||||||||
Common dividends paid | (416 | ) | (368 | ) | ||||||
Preferred dividends paid | (28 | ) | — | |||||||
Preferred dividends paid by subsidiary | (1 | ) | (1 | ) | ||||||
Issuances of mandatory convertible preferred stock, net of $32 in offering costs | 1,693 | — | ||||||||
Issuances of common stock, net of $38 in offering costs in 2018 | 2,090 | 28 | ||||||||
Repurchases of common stock | (20 | ) | (14 | ) | ||||||
Issuances of debt (maturities greater than 90 days) | 7,407 | 1,932 | ||||||||
Payments on debt (maturities greater than 90 days) | (1,878 | ) | (1,006 | ) | ||||||
Increase (decrease) in short-term debt, net | 1,266 | (493 | ) | |||||||
Proceeds from sale of noncontrolling interest, net of $1 in offering costs | 85 | — | ||||||||
Net distributions to noncontrolling interests | (17 | ) | (25 | ) | ||||||
Settlement of cross-currency swaps | (33 | ) | — | |||||||
Other | (71 | ) | (9 | ) | ||||||
Net cash provided by financing activities | 10,077 | 44 | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3 | ) | 10 | |||||||
Decrease in cash, cash equivalents and restricted cash | (37 | ) | (115 | ) | ||||||
Cash, cash equivalents and restricted cash, January 1 | 364 | 425 | ||||||||
Cash, cash equivalents and restricted cash, June 30 | $ | 327 | $ | 310 |
(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 June 30, | Six months ended June 30, | ||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | |||||||||||||||||
Earnings (Losses) | |||||||||||||||||
Sempra Utilities: | |||||||||||||||||
San Diego Gas & Electric | $ | 146 | $ | 149 | $ | 316 | $ | 304 | |||||||||
Southern California Gas | 33 | 58 | 258 | 261 | |||||||||||||
Sempra Texas Utility | 114 | — | 129 | — | |||||||||||||
Sempra South American Utilities | 44 | 45 | 90 | 92 | |||||||||||||
Sempra Infrastructure: | |||||||||||||||||
Sempra Mexico | 97 | (9 | ) | 117 | 39 | ||||||||||||
Sempra Renewables | (109 | ) | 23 | (88 | ) | 34 | |||||||||||
Sempra LNG & Midstream | (764 | ) | 27 | (780 | ) | 28 | |||||||||||
Parent and other | (122 | ) | (34 | ) | (256 | ) | (58 | ) | |||||||||
Total | $ | (561 | ) | $ | 259 | $ | (214 | ) | $ | 700 | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(Dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | |||||||||||||||||
Capital Expenditures, Investments and Acquisitions | |||||||||||||||||
Sempra Utilities: | |||||||||||||||||
San Diego Gas & Electric | $ | 376 | $ | 345 | $ | 851 | $ | 763 | |||||||||
Southern California Gas | 380 | 325 | 783 | 682 | |||||||||||||
Sempra Texas Utility | 117 | — | 9,278 | — | |||||||||||||
Sempra South American Utilities | 51 | 34 | 107 | 77 | |||||||||||||
Sempra Infrastructure: | |||||||||||||||||
Sempra Mexico | 81 | 87 | 168 | 227 | |||||||||||||
Sempra Renewables | 6 | 31 | 37 | 100 | |||||||||||||
Sempra LNG & Midstream | 91 | 22 | 137 | 37 | |||||||||||||
Parent and other | 10 | 4 | 403 | 13 | |||||||||||||
Total | $ | 1,112 | $ | 848 | $ | 11,764 | $ | 1,899 |
SEMPRA ENERGY | ||||||||||||
Table E | ||||||||||||
OTHER OPERATING STATISTICS (Unaudited) | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
UTILITIES | 2018 | 2017 | 2018 | 2017 | ||||||||
SDG&E and SoCalGas | ||||||||||||
Gas sales (Bcf)(1) | 76 | 71 | 189 | 197 | ||||||||
Transportation (Bcf)(1) | 137 | 148 | 284 | 304 | ||||||||
Total deliveries (Bcf)(1) | 213 | 219 | 473 | 501 | ||||||||
Total gas customer meters (thousands) | 6,865 | 6,825 | ||||||||||
SDG&E | ||||||||||||
Electric sales (millions of kWhs)(1) | 3,394 | 3,565 | 7,000 | 7,329 | ||||||||
Direct access (millions of kWhs) | 926 | 786 | 1,671 | 1,573 | ||||||||
Total deliveries (millions of kWhs)(1) | 4,320 | 4,351 | 8,671 | 8,902 | ||||||||
Total electric customer meters (thousands) | 1,453 | 1,438 | ||||||||||
Oncor(2) | ||||||||||||
Total deliveries (millions of kWhs) | 32,658 | — | 39,313 | — | ||||||||
Total electric customer meters (thousands) | 3,590 | — | ||||||||||
Ecogas | ||||||||||||
Natural gas sales (Bcf) | — | 7 | 6 | 15 | ||||||||
Natural gas customer meters (thousands) | 121 | 120 | ||||||||||
Chilquinta Energía | ||||||||||||
Electric sales (millions of kWhs) | 710 | 691 | 1,508 | 1,502 | ||||||||
Tolling (millions of kWhs) | 81 | 24 | 143 | 44 | ||||||||
Total deliveries (millions of kWhs) | 791 | 715 | 1,651 | 1,546 | ||||||||
Electric customer meters (thousands) | 714 | 696 | ||||||||||
Luz Del Sur | ||||||||||||
Electric sales (millions of kWhs) | 1,716 | 1,780 | 3,458 | 3,674 | ||||||||
Tolling (millions of kWhs) | 583 | 461 | 1,141 | 906 | ||||||||
Total deliveries (millions of kWhs) | 2,299 | 2,241 | 4,599 | 4,580 | ||||||||
Electric customer meters (thousands) | 1,116 | 1,086 | ||||||||||
ENERGY-RELATED BUSINESSES | ||||||||||||
Power generated and sold (millions of kWhs) | ||||||||||||
Sempra Mexico(3) | 1,175 | 650 | 2,396 | 1,705 | ||||||||
Sempra Renewables(4) | 1,382 | 1,192 | 2,574 | 2,206 | ||||||||
(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). Total deliveries for the six months ended June 30, 2018 only include volumes from the March 9, 2018 acquisition date. |
(3) | Includes power generated and sold at the Termoeléctrica de Mexicali natural gas-fired power plant 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. On June 25, 2018, our board of directors approved a plan to sell all U.S. wind and solar assets and investments. |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||||||
Table F (Unaudited) | |||||||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATIONS DATA BY SEGMENT | |||||||||||||||||||||||||||||||||||||
Three months ended June 30, 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 | $ | 1,051 | $ | 772 | $ | — | $ | 389 | $ | 310 | $ | 40 | $ | 79 | $ | (77 | ) | $ | 2,564 | ||||||||||||||||||
Cost of sales and other expenses | (667 | ) | (565 | ) | — | (301 | ) | (123 | ) | (23 | ) | (91 | ) | 59 | (1,711 | ) | |||||||||||||||||||||
Depreciation and amortization | (169 | ) | (138 | ) | — | (15 | ) | (43 | ) | (14 | ) | (11 | ) | (2 | ) | (392 | ) | ||||||||||||||||||||
Impairment losses | — | — | — | — | — | — | (1,300 | ) | — | (1,300 | ) | ||||||||||||||||||||||||||
Other income (expense), net | 25 | 13 | — | 2 | (95 | ) | — | — | 1 | (54 | ) | ||||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 240 | 82 | — | 75 | 49 | 3 | (1,323 | ) | (19 | ) | (893 | ) | |||||||||||||||||||||||||
Net interest (expense) income(2) | (52 | ) | (26 | ) | — | (3 | ) | (14 | ) | (3 | ) | 6 | (150 | ) | (242 | ) | |||||||||||||||||||||
Income tax (expense) benefit | (42 | ) | (23 | ) | — | (21 | ) | 55 | 58 | 506 | 50 | 583 | |||||||||||||||||||||||||
Equity earnings (losses), net | — | — | 114 | — | 71 | (187 | ) | 1 | (3 | ) | (4 | ) | |||||||||||||||||||||||||
(Earnings) losses attributable to noncontrolling interests | — | — | — | (7 | ) | (64 | ) | 20 | 46 | — | (5 | ) | |||||||||||||||||||||||||
Earnings (losses) | $ | 146 | $ | 33 | $ | 114 | $ | 44 | $ | 97 | $ | (109 | ) | $ | (764 | ) | $ | (122 | ) | $ | (561 | ) | |||||||||||||||
Three months ended June 30, 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 | $ | 1,058 | $ | 770 | $ | — | $ | 381 | $ | 273 | $ | 26 | $ | 122 | $ | (97 | ) | $ | 2,533 | ||||||||||||||||||
Cost of sales and other expenses(3) | (655 | ) | (564 | ) | — | (294 | ) | (130 | ) | (20 | ) | (71 | ) | 80 | (1,654 | ) | |||||||||||||||||||||
Depreciation and amortization | (166 | ) | (126 | ) | — | (13 | ) | (37 | ) | (10 | ) | (11 | ) | (5 | ) | (368 | ) | ||||||||||||||||||||
Impairment losses | — | — | — | — | (71 | ) | — | — | — | (71 | ) | ||||||||||||||||||||||||||
Other income, net(3) | 19 | 24 | — | 2 | 60 | 1 | — | 2 | 108 | ||||||||||||||||||||||||||||
Income (loss) before interest and tax(1)(4) | 256 | 104 | — | 76 | 95 | (3 | ) | 40 | (20 | ) | 548 | ||||||||||||||||||||||||||
Net interest (expense) income(2) | (49 | ) | (27 | ) | — | (5 | ) | (17 | ) | (2 | ) | 3 | (55 | ) | (152 | ) | |||||||||||||||||||||
Income tax (expense) benefit | (54 | ) | (19 | ) | — | (20 | ) | (102 | ) | 5 | (18 | ) | 41 | (167 | ) | ||||||||||||||||||||||
Equity earnings, net(4) | — | — | — | — | — | 16 | 2 | — | 18 | ||||||||||||||||||||||||||||
(Earnings) losses attributable to noncontrolling interests | (4 | ) | — | — | (6 | ) | 15 | 7 | — | — | 12 | ||||||||||||||||||||||||||
Earnings (losses) | $ | 149 | $ | 58 | $ | — | $ | 45 | $ | (9 | ) | $ | 23 | $ | 27 | $ | (34 | ) | $ | 259 | |||||||||||||||||
(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. |
(4) | As adjusted for a reclassification to conform to current year presentation. |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||||||
Table F (Unaudited) | |||||||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATIONS DATA BY SEGMENT | |||||||||||||||||||||||||||||||||||||
Six months ended June 30, 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 | $ | 2,106 | $ | 1,898 | $ | — | $ | 815 | $ | 618 | $ | 65 | $ | 183 | $ | (159 | ) | $ | 5,526 | ||||||||||||||||||
Cost of sales and other expenses | (1,308 | ) | (1,278 | ) | — | (638 | ) | (252 | ) | (44 | ) | (193 | ) | 123 | (3,590 | ) | |||||||||||||||||||||
Depreciation and amortization | (335 | ) | (273 | ) | — | (29 | ) | (86 | ) | (27 | ) | (22 | ) | (6 | ) | (778 | ) | ||||||||||||||||||||
Impairment losses | — | — | — | — | — | — | (1,300 | ) | — | (1,300 | ) | ||||||||||||||||||||||||||
Other income (expense), net | 53 | 46 | — | 3 | (2 | ) | — | — | (1 | ) | 99 | ||||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 516 | 393 | — | 151 | 278 | (6 | ) | (1,332 | ) | (43 | ) | (43 | ) | ||||||||||||||||||||||||
Net interest (expense) income(2) | (103 | ) | (53 | ) | — | (7 | ) | (29 | ) | (6 | ) | 11 | (266 | ) | (453 | ) | |||||||||||||||||||||
Income tax (expense) benefit | (98 | ) | (82 | ) | — | (41 | ) | (100 | ) | 65 | 494 | 56 | 294 | ||||||||||||||||||||||||
Equity earnings (losses), net | — | — | 129 | 1 | 30 | (182 | ) | 1 | (3 | ) | (24 | ) | |||||||||||||||||||||||||
Losses (earnings) attributable to noncontrolling interests | 1 | — | — | (14 | ) | (62 | ) | 41 | 46 | — | 12 | ||||||||||||||||||||||||||
Earnings (losses) | $ | 316 | $ | 258 | $ | 129 | $ | 90 | $ | 117 | $ | (88 | ) | $ | (780 | ) | $ | (256 | ) | $ | (214 | ) | |||||||||||||||
Six months ended June 30, 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 | $ | 2,115 | $ | 2,011 | $ | — | $ | 793 | $ | 537 | $ | 48 | $ | 254 | $ | (194 | ) | $ | 5,564 | ||||||||||||||||||
Cost of sales and other expenses(3) | (1,275 | ) | (1,367 | ) | — | (620 | ) | (251 | ) | (35 | ) | (199 | ) | 163 | (3,584 | ) | |||||||||||||||||||||
Depreciation and amortization | (329 | ) | (252 | ) | — | (26 | ) | (73 | ) | (19 | ) | (21 | ) | (8 | ) | (728 | ) | ||||||||||||||||||||
Impairment losses | — | — | — | — | (71 | ) | — | — | — | (71 | ) | ||||||||||||||||||||||||||
Other income (expense), net(3) | 41 | 38 | — | 5 | 187 | 1 | 1 | 9 | 282 | ||||||||||||||||||||||||||||
Income (loss) before interest and tax(1)(4) | 552 | 430 | — | 152 | 329 | (5 | ) | 35 | (30 | ) | 1,463 | ||||||||||||||||||||||||||
Net interest (expense) income(2) | (98 | ) | (52 | ) | — | (9 | ) | (47 | ) | (5 | ) | 9 | (113 | ) | (315 | ) | |||||||||||||||||||||
Income tax (expense) benefit | (144 | ) | (117 | ) | — | (39 | ) | (244 | ) | 16 | (19 | ) | 85 | (462 | ) | ||||||||||||||||||||||
Equity earnings (losses), net(4) | — | — | — | 1 | (9 | ) | 18 | 3 | — | 13 | |||||||||||||||||||||||||||
(Earnings) losses attributable to noncontrolling interests | (6 | ) | — | — | (13 | ) | 10 | 10 | — | — | 1 | ||||||||||||||||||||||||||
Earnings (losses) | $ | 304 | $ | 261 | $ | — | $ | 92 | $ | 39 | $ | 34 | $ | 28 | $ | (58 | ) | $ | 700 | ||||||||||||||||||
(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. |
(4) | As adjusted for a reclassification to conform to current year presentation. |