Date of Report | |
(Date of earliest event reported): | August 2, 2019 |
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)) |
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: | ||||||||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
None |
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: August 2, 2019 | By: /s/ Mia L. DeMontigny |
Mia L. DeMontigny Vice President, Controller, Chief Financial Officer and Chief Accounting Officer |
Media Contact: | Amber Albrecht | |||
Sempra Energy | ||||
(877) 340-8875 | ||||
media@sempra.com | ||||
Financial Contact: | Lindsay Gartner | |||
Sempra Energy | ||||
(877) 736-7727 | ||||
investor@sempra.com |
• | Sempra Energy Grows Transmission and Distribution Footprint in Texas |
• | Recent California Legislation Reduces SDG&E Wildfire Risk |
• | Four Commissioning Cargoes Sent from Cameron LNG to Global Markets to Date |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||
(Unaudited; Dollars, except EPS, and shares, in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
GAAP Earnings (Losses) | $ | 354 | $ | (561 | ) | $ | 795 | $ | (214 | ) | ||||||||
Gain on Sale of U.S. Wind Assets | (45 | ) | — | (45 | ) | — | ||||||||||||
Tax Impacts from Expected Sale of South American Businesses(1) | — | — | 93 | — | ||||||||||||||
Impairment of Non-utility U.S. Natural Gas Storage Assets | — | 755 | — | 755 | ||||||||||||||
Impairment of U.S. Wind Equity Method Investments | — | 145 | — | 145 | ||||||||||||||
Impacts Associated with Aliso Canyon Litigation | — | 22 | — | 22 | ||||||||||||||
Impact from the Tax Cuts and Jobs Act of 2017 | — | — | — | 25 | ||||||||||||||
Adjusted Earnings(2) | $ | 309 | $ | 361 | $ | 843 | $ | 733 | ||||||||||
Diluted Weighted-Average Common Shares Outstanding | 280 | 268 | 278 | 264 | ||||||||||||||
GAAP Earnings (Losses) Per Diluted Common Share | $ | 1.26 | $ | (2.11 | ) | (3) | $ | 2.85 | $ | (0.82 | ) | (3) | ||||||
Adjusted Earnings Per Diluted Common Share(2) | $ | 1.10 | $ | 1.35 | $ | 3.03 | $ | 2.78 |
1) | $103 million increase to adjusted earnings due to change in indefinite reinvestment assertion of basis differences in discontinued operations, partially offset by $10 million reduction in tax valuation allowance against certain net operating loss carryforwards at Parent & Other. |
2) | Sempra Energy Adjusted Earnings and Adjusted Earnings per Common Share (Adjusted EPS) are non-GAAP financial measures. See Table A for information regarding non-GAAP financial measures and descriptions of the adjustments above. |
3) | Weighted-average common shares outstanding for the three months and six months ended June 30, 2018 used to calculate EPS exclude common stock equivalents as they are antidilutive given the net loss in these periods. |
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; shares in thousands) | 2019 | 2018(1) | 2019 | 2018(1) | ||||||||||||
(unaudited) | ||||||||||||||||
REVENUES | ||||||||||||||||
Utilities | $ | 1,895 | $ | 1,820 | $ | 4,410 | $ | 4,010 | ||||||||
Energy-related businesses | 335 | 355 | 718 | 701 | ||||||||||||
Total revenues | 2,230 | 2,175 | 5,128 | 4,711 | ||||||||||||
EXPENSES AND OTHER INCOME | ||||||||||||||||
Utilities: | ||||||||||||||||
Cost of natural gas | (136 | ) | (179 | ) | (667 | ) | (527 | ) | ||||||||
Cost of electric fuel and purchased power | (263 | ) | (320 | ) | (519 | ) | (591 | ) | ||||||||
Energy-related businesses cost of sales | (63 | ) | (70 | ) | (171 | ) | (139 | ) | ||||||||
Operation and maintenance | (838 | ) | (742 | ) | (1,670 | ) | (1,483 | ) | ||||||||
Depreciation and amortization | (389 | ) | (377 | ) | (772 | ) | (749 | ) | ||||||||
Franchise fees and other taxes | (112 | ) | (104 | ) | (242 | ) | (221 | ) | ||||||||
Impairment losses | — | (1,300 | ) | — | (1,300 | ) | ||||||||||
Gain on sale of assets | 66 | — | 66 | — | ||||||||||||
Other income (expense), net | 28 | (56 | ) | 110 | 96 | |||||||||||
Interest income | 21 | 18 | 42 | 47 | ||||||||||||
Interest expense | (258 | ) | (228 | ) | (518 | ) | (434 | ) | ||||||||
Income (loss) from continuing operations before income taxes and equity earnings (losses) | 286 | (1,183 | ) | 787 | (590 | ) | ||||||||||
Income tax (expense) benefit | (47 | ) | 602 | (89 | ) | 360 | ||||||||||
Equity earnings (losses) | 118 | (4 | ) | 219 | (25 | ) | ||||||||||
Income (loss) from continuing operations, net of income tax | 357 | (585 | ) | 917 | (255 | ) | ||||||||||
Income from discontinued operations, net of income tax | 78 | 55 | 36 | 83 | ||||||||||||
Net income (loss) | 435 | (530 | ) | 953 | (172 | ) | ||||||||||
(Earnings) losses attributable to noncontrolling interests | (45 | ) | (5 | ) | (86 | ) | 12 | |||||||||
Mandatory convertible preferred stock dividends | (35 | ) | (25 | ) | (71 | ) | (53 | ) | ||||||||
Preferred dividends of subsidiary | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||
Earnings (losses) attributable to common shares | $ | 354 | $ | (561 | ) | $ | 795 | $ | (214 | ) | ||||||
Basic earnings (losses) per common share: | ||||||||||||||||
Earnings (losses) from continuing operations attributable to common shares | $ | 1.03 | $ | (2.29 | ) | $ | 2.82 | $ | (1.08 | ) | ||||||
Earnings from discontinued operations attributable to common shares | $ | 0.26 | $ | 0.18 | $ | 0.07 | $ | 0.26 | ||||||||
Earnings (losses) attributable to common shares | $ | 1.29 | $ | (2.11 | ) | $ | 2.89 | $ | (0.82 | ) | ||||||
Weighted-average common shares outstanding | 274,987 | 265,837 | 274,831 | 261,906 | ||||||||||||
Diluted earnings (losses) per common share: | ||||||||||||||||
Earnings (losses) from continuing operations attributable to common shares | $ | 1.01 | $ | (2.29 | ) | $ | 2.78 | $ | (1.08 | ) | ||||||
Earnings from discontinued operations attributable to common shares | $ | 0.25 | $ | 0.18 | $ | 0.07 | $ | 0.26 | ||||||||
Earnings (losses) attributable to common shares | $ | 1.26 | $ | (2.11 | ) | $ | 2.85 | $ | (0.82 | ) | ||||||
Weighted-average common shares outstanding | 279,619 | 265,837 | 278,424 | 261,906 |
(1) | Amounts have been retrospectively adjusted for discontinued operations. |
▪ | $45 million gain on the sale of certain Sempra Renewables assets |
▪ | $(755) million impairment of certain non-utility natural gas storage assets in the southeast U.S. at Sempra LNG |
▪ | $(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 Southern California Gas Company (SoCalGas) |
▪ | $45 million gain on the sale of certain Sempra Renewables assets |
▪ | $(103) million income tax expense from outside basis differences in our South American businesses primarily related to the change in our indefinite reinvestment assertion from our decision in January 2019 to hold these businesses for sale |
▪ | $10 million income tax benefit from a reduction in a valuation allowance against certain net operating loss (NOL) carryforwards as a result of our decision to sell our South American businesses |
▪ | $(755) million impairment of certain non-utility natural gas storage assets at Sempra LNG |
▪ | $(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 |
▪ | $(25) million income tax expense to adjust Tax Cuts and Jobs Act of 2017 (TCJA) provisional amounts |
Pretax amount | Income tax expense (benefit)(1) | Earnings | Pretax amount | Income tax (benefit) expense(1) | Non-controlling interests | (Losses) earnings | ||||||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | Three months ended June 30, 2019 | Three months ended June 30, 2018 | ||||||||||||||||||||||
Sempra Energy GAAP Earnings (Losses) | $ | 354 | $ | (561 | ) | |||||||||||||||||||
Excluded items: | ||||||||||||||||||||||||
Gain on sale of certain Sempra Renewables assets | $ | (61 | ) | $ | 16 | (45 | ) | $ | — | $ | — | $ | — | — | ||||||||||
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 | |||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 309 | $ | 361 | ||||||||||||||||||||
Diluted earnings (losses) per common share: | ||||||||||||||||||||||||
Sempra Energy GAAP EPS | $ | 1.26 | $ | (2.11 | ) | (2) | ||||||||||||||||||
Sempra Energy Adjusted EPS | $ | 1.10 | $ | 1.35 | ||||||||||||||||||||
Weighted-average common shares outstanding, diluted – GAAP | 279,619 | 267,536 | (2) | |||||||||||||||||||||
Six months ended June 30, 2019 | Six months ended June 30, 2018 | |||||||||||||||||||||||
Sempra Energy GAAP Earnings (Losses) | $ | 795 | $ | (214 | ) | |||||||||||||||||||
Excluded items: | ||||||||||||||||||||||||
Gain on sale of certain Sempra Renewables assets | $ | (61 | ) | $ | 16 | (45 | ) | $ | — | $ | — | $ | — | — | ||||||||||
Associated with holding the South American businesses for sale: | ||||||||||||||||||||||||
Change in indefinite reinvestment assertion of basis differences in discontinued operations | — | 103 | 103 | — | — | — | — | |||||||||||||||||
Reduction in tax valuation allowance against certain NOL carryforwards | — | (10 | ) | (10 | ) | — | — | — | — | |||||||||||||||
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 | |||||||||||||||||
Sempra Energy Adjusted Earnings | $ | 843 | $ | 733 | ||||||||||||||||||||
Diluted earnings (losses) per common share: | ||||||||||||||||||||||||
Sempra Energy GAAP EPS | $ | 2.85 | $ | (0.82 | ) | (2) | ||||||||||||||||||
Sempra Energy Adjusted EPS | $ | 3.03 | $ | 2.78 | ||||||||||||||||||||
Weighted-average common shares outstanding, diluted – GAAP | 278,424 | 263,584 | (2) | |||||||||||||||||||||
(1) | Except for adjustments that are solely income tax and tax related to outside basis differences, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. |
(2) | In both the three months and six months ended June 30, 2018, total weighted-average 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. |
▪ | $103 million income tax expense from outside basis differences in our South American businesses primarily related to the change in our indefinite reinvestment assertion from our decision in January 2019 to hold these businesses for sale. |
▪ | $10 million income tax benefit from a reduction in a valuation allowance against certain NOL carryforwards as a result of our decision to sell our South American businesses. |
▪ | $45 million after-tax gain related to the April 2019 sale of the remaining U.S. renewables assets and investments to American Electric Power Company, Inc. |
▪ | any potential charge from San Diego Gas & Electric Company’s (SDG&E) $322.5 million initial contribution in September 2019 and annual contributions of $12.9 million in each of the next 10 years to the California wildfire fund pursuant to the wildfire legislation that was recently signed into law. We are evaluating the accounting and tax treatment of the initial and annual contributions. |
▪ | any potential gain from the planned sale of our South American businesses. Because the sale process for the planned divestiture of our South American businesses initiated in January 2019 is ongoing, the terms and structure of any potential sale transaction(s) are unknown, including the terms that would impact the final income tax expense resulting from the expected change in our assertion regarding indefinite reinvestment of foreign undistributed earnings, including timing and amounts of repatriation of such earnings. |
SEMPRA ENERGY | ||||||||||
Table B | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Dollars in millions) | June 30, 2019 | December 31, 2018(1) | ||||||||
(unaudited) | ||||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 168 | $ | 102 | ||||||
Restricted cash | 50 | 35 | ||||||||
Accounts receivable, net | 1,242 | 1,535 | ||||||||
Due from unconsolidated affiliates | 23 | 37 | ||||||||
Income taxes receivable | 106 | 60 | ||||||||
Inventories | 214 | 258 | ||||||||
Regulatory assets | 195 | 138 | ||||||||
Greenhouse gas allowances | 61 | 59 | ||||||||
Assets held for sale | — | 713 | ||||||||
Assets held for sale in discontinued operations | 445 | 459 | ||||||||
Other | 279 | 249 | ||||||||
Total current assets | 2,783 | 3,645 | ||||||||
Other assets: | ||||||||||
Restricted cash | 21 | 21 | ||||||||
Due from unconsolidated affiliates | 710 | 644 | ||||||||
Regulatory assets | 1,780 | 1,589 | ||||||||
Nuclear decommissioning trusts | 1,044 | 974 | ||||||||
Investment in Oncor Holdings | 10,930 | 9,652 | ||||||||
Other investments | 2,082 | 2,320 | ||||||||
Goodwill | 1,602 | 1,602 | ||||||||
Other intangible assets | 219 | 224 | ||||||||
Dedicated assets in support of certain benefit plans | 409 | 416 | ||||||||
Insurance receivable for Aliso Canyon costs | 381 | 461 | ||||||||
Deferred income taxes | 150 | 141 | ||||||||
Greenhouse gas allowances | 416 | 289 | ||||||||
Right-of-use assets – operating leases | 600 | — | ||||||||
Assets held for sale in discontinued operations | 3,453 | 3,259 | ||||||||
Sundry | 865 | 962 | ||||||||
Total other assets | 24,662 | 22,554 | ||||||||
Property, plant and equipment, net | 35,282 | 34,439 | ||||||||
Total assets | $ | 62,727 | $ | 60,638 |
(1) | Derived from audited financial statements, which have been retrospectively adjusted for discontinued operations. |
SEMPRA ENERGY | ||||||||||
Table B (Continued) | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Dollars in millions) | June 30, 2019 | December 31, 2018(1) | ||||||||
(unaudited) | ||||||||||
Liabilities and Equity | ||||||||||
Current liabilities: | ||||||||||
Short-term debt | $ | 2,395 | $ | 2,024 | ||||||
Accounts payable, net | 1,200 | 1,298 | ||||||||
Due to unconsolidated affiliates | 9 | 10 | ||||||||
Dividends and interest payable | 490 | 480 | ||||||||
Accrued compensation and benefits | 299 | 440 | ||||||||
Regulatory liabilities | 349 | 105 | ||||||||
Current portion of long-term debt and finance leases | 2,156 | 1,644 | ||||||||
Reserve for Aliso Canyon costs | 46 | 160 | ||||||||
Greenhouse gas obligations | 61 | 59 | ||||||||
Liabilities held for sale in discontinued operations | 336 | 368 | ||||||||
Other | 836 | 935 | ||||||||
Total current liabilities | 8,177 | 7,523 | ||||||||
Long-term debt and finance leases | 21,199 | 20,903 | ||||||||
Deferred credits and other liabilities: | ||||||||||
Due to unconsolidated affiliates | 38 | 37 | ||||||||
Pension and other postretirement benefit plan obligations, net of plan assets | 1,135 | 1,143 | ||||||||
Deferred income taxes | 2,626 | 2,321 | ||||||||
Deferred investment tax credits | 23 | 24 | ||||||||
Regulatory liabilities | 4,026 | 4,016 | ||||||||
Asset retirement obligations | 2,815 | 2,786 | ||||||||
Greenhouse gas obligations | 225 | 131 | ||||||||
Liabilities held for sale in discontinued operations | 1,090 | 1,013 | ||||||||
Deferred credits and other | 1,939 | 1,493 | ||||||||
Total deferred credits and other liabilities | 13,917 | 12,964 | ||||||||
Equity: | ||||||||||
Sempra Energy shareholders’ equity | 17,440 | 17,138 | ||||||||
Preferred stock of subsidiary | 20 | 20 | ||||||||
Other noncontrolling interests | 1,974 | 2,090 | ||||||||
Total equity | 19,434 | 19,248 | ||||||||
Total liabilities and equity | $ | 62,727 | $ | 60,638 |
SEMPRA ENERGY | ||||||||||
Table C | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
Six months ended June 30, | ||||||||||
(Dollars in millions) | 2019 | 2018(1) | ||||||||
(unaudited) | ||||||||||
Cash Flows from Operating Activities | ||||||||||
Net income (loss) | $ | 953 | $ | (172 | ) | |||||
Less: Income from discontinued operations, net of income tax | (36 | ) | (83 | ) | ||||||
Income (loss) from continuing operations, net of income tax | 917 | (255 | ) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 772 | 749 | ||||||||
Deferred income taxes and investment tax credits | (12 | ) | (432 | ) | ||||||
Impairment losses | — | 1,300 | ||||||||
Gain on sale of assets | (66 | ) | — | |||||||
Equity (earnings) losses | (219 | ) | 25 | |||||||
Share-based compensation expense | 39 | 33 | ||||||||
Fixed-price contracts and other derivatives | (28 | ) | (9 | ) | ||||||
Other | (4 | ) | 45 | |||||||
Intercompany activities with discontinued operations, net | 64 | 42 | ||||||||
Net change in other working capital components | 84 | 268 | ||||||||
Insurance receivable for Aliso Canyon costs | 80 | (84 | ) | |||||||
Changes in other noncurrent assets and liabilities, net | (104 | ) | (157 | ) | ||||||
Net cash provided by continuing operations | 1,523 | 1,525 | ||||||||
Net cash provided by discontinued operations | 181 | 148 | ||||||||
Net cash provided by operating activities | 1,704 | 1,673 | ||||||||
Cash Flows from Investing Activities | ||||||||||
Expenditures for property, plant and equipment | (1,651 | ) | (1,834 | ) | ||||||
Expenditures for investments and acquisition | (1,391 | ) | (9,823 | ) | ||||||
Proceeds from sale of assets | 902 | 1 | ||||||||
Purchases of nuclear decommissioning trust assets | (497 | ) | (487 | ) | ||||||
Proceeds from sales of nuclear decommissioning trust assets | 497 | 487 | ||||||||
Advances to unconsolidated affiliates | (16 | ) | (81 | ) | ||||||
Repayments of advances to unconsolidated affiliates | 9 | 1 | ||||||||
Intercompany activities with discontinued operations, net | (2 | ) | (8 | ) | ||||||
Other | 13 | 39 | ||||||||
Net cash used in continuing operations | (2,136 | ) | (11,705 | ) | ||||||
Net cash used in discontinued operations | (131 | ) | (112 | ) | ||||||
Net cash used in investing activities | (2,267 | ) | (11,817 | ) | ||||||
Cash Flows from Financing Activities | ||||||||||
Common dividends paid | (483 | ) | (416 | ) | ||||||
Preferred dividends paid | (71 | ) | (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 | 20 | 2,090 | ||||||||
Repurchases of common stock | (18 | ) | (20 | ) | ||||||
Issuances of debt (maturities greater than 90 days) | 2,630 | 7,328 | ||||||||
Payments on debt (maturities greater than 90 days) and finance leases | (871 | ) | (1,799 | ) | ||||||
(Decrease) increase in short-term debt, net | (444 | ) | 1,265 | |||||||
Proceeds from sale of noncontrolling interest, net of $1 in offering costs | — | 85 | ||||||||
Purchases of and distributions to noncontrolling interests | (31 | ) | (9 | ) | ||||||
Intercompany activities with discontinued operations, net | — | 70 | ||||||||
Other | (37 | ) | (104 | ) | ||||||
Net cash provided by continuing operations | 694 | 10,154 | ||||||||
Net cash used in discontinued operations | (83 | ) | (44 | ) | ||||||
Net cash provided by financing activities | 611 | 10,110 | ||||||||
Effect of exchange rate changes in continuing operations | — | — | ||||||||
Effect of exchange rate changes in discontinued operations | — | (3 | ) | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | (3 | ) | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash, including discontinued operations | 48 | (37 | ) | |||||||
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 246 | 364 | ||||||||
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | $ | 294 | $ | 327 |
(1) | Amounts have been retrospectively adjusted for discontinued operations. |
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) | 2019 | 2018(1) | 2019 | 2018(1) | ||||||||||||||
(unaudited) | ||||||||||||||||||
Earnings (Losses) Attributable to Common Shares | ||||||||||||||||||
SDG&E | $ | 143 | $ | 146 | $ | 319 | $ | 316 | ||||||||||
SoCalGas | 30 | 33 | 294 | 258 | ||||||||||||||
Sempra Texas Utilities | 113 | 114 | 207 | 129 | ||||||||||||||
Sempra Mexico | 73 | 97 | 130 | 117 | ||||||||||||||
Sempra Renewables | 46 | (109 | ) | 59 | (88 | ) | ||||||||||||
Sempra LNG | 6 | (764 | ) | 11 | (780 | ) | ||||||||||||
Parent and other | (127 | ) | (126 | ) | (244 | ) | (235 | ) | ||||||||||
Discontinued operations | 70 | 48 | 19 | 69 | ||||||||||||||
Total | $ | 354 | $ | (561 | ) | $ | 795 | $ | (214 | ) | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
(Dollars in millions) | 2019 | 2018(1) | 2019 | 2018(1) | ||||||||||||||
(unaudited) | ||||||||||||||||||
Capital Expenditures, Investments and Acquisitions | ||||||||||||||||||
SDG&E | $ | 352 | $ | 376 | $ | 708 | $ | 851 | ||||||||||
SoCalGas | 335 | 380 | 659 | 783 | ||||||||||||||
Sempra Texas Utilities | 1,226 | 117 | 1,282 | 9,278 | ||||||||||||||
Sempra Mexico | 157 | 81 | 242 | 168 | ||||||||||||||
Sempra Renewables | 2 | 6 | 2 | 37 | ||||||||||||||
Sempra LNG | 90 | 91 | 146 | 137 | ||||||||||||||
Parent and other | 3 | 10 | 3 | 403 | ||||||||||||||
Total | $ | 2,165 | $ | 1,061 | $ | 3,042 | $ | 11,657 |
(1) | Amounts have been retrospectively adjusted for discontinued operations. |
SEMPRA ENERGY | ||||||||||||
Table E | ||||||||||||
OTHER OPERATING STATISTICS (Unaudited) | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
UTILITIES | 2019 | 2018 | 2019 | 2018 | ||||||||
SDG&E and SoCalGas | ||||||||||||
Gas sales (Bcf)(1) | 75 | 76 | 214 | 189 | ||||||||
Transportation (Bcf)(1) | 124 | 137 | 268 | 284 | ||||||||
Total deliveries (Bcf)(1) | 199 | 213 | 482 | 473 | ||||||||
Total gas customer meters (thousands) | 6,902 | 6,865 | ||||||||||
SDG&E | ||||||||||||
Electric sales (millions of kWhs)(1) | 3,244 | 3,394 | 6,826 | 7,000 | ||||||||
Direct Access and Community Choice Aggregation (millions of kWhs) | 848 | 926 | 1,688 | 1,671 | ||||||||
Total deliveries (millions of kWhs)(1) | 4,092 | 4,320 | 8,514 | 8,671 | ||||||||
Total electric customer meters (thousands) | 1,463 | 1,453 | ||||||||||
Oncor(2) | ||||||||||||
Total deliveries (millions of kWhs) | 31,516 | 32,658 | 61,628 | 39,313 | ||||||||
Total electric customer meters (thousands) | 3,655 | 3,590 | ||||||||||
Ecogas | ||||||||||||
Natural gas sales (Bcf) | 1 | — | 2 | 6 | ||||||||
Natural gas customer meters (thousands) | 126 | 121 | ||||||||||
ENERGY-RELATED BUSINESSES | ||||||||||||
Power generated and sold (millions of kWhs) | ||||||||||||
Sempra Mexico | ||||||||||||
Termoeléctrica de Mexicali (TdM) | 693 | 824 | 1,830 | 1,777 | ||||||||
Wind and solar(3) | 445 | 351 | 690 | 619 |
(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 50 percent of the 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. |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||
Table F (Unaudited) | |||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATIONS DATA BY SEGMENT | |||||||||||||||||||||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra Texas Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 1,094 | $ | 806 | $ | — | $ | 318 | $ | 3 | $ | 86 | $ | (77 | ) | $ | 2,230 | ||||||||||||||||
Cost of sales and other expenses | (642 | ) | (599 | ) | — | (130 | ) | (9 | ) | (88 | ) | 56 | (1,412 | ) | |||||||||||||||||||
Depreciation and amortization | (189 | ) | (148 | ) | — | (46 | ) | — | (3 | ) | (3 | ) | (389 | ) | |||||||||||||||||||
Gain on sale of assets | — | — | — | — | 61 | — | 5 | 66 | |||||||||||||||||||||||||
Other income (expense), net | 19 | 1 | — | 17 | — | — | (9 | ) | 28 | ||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 282 | 60 | — | 159 | 55 | (5 | ) | (28 | ) | 523 | |||||||||||||||||||||||
Net interest (expense) income | (101 | ) | (33 | ) | — | (10 | ) | 1 | 13 | (107 | ) | (237 | ) | ||||||||||||||||||||
Income tax (expense) benefit | (35 | ) | 4 | — | (44 | ) | (14 | ) | (2 | ) | 44 | (47 | ) | ||||||||||||||||||||
Equity earnings (losses), net | — | — | 113 | 4 | 2 | — | (1 | ) | 118 | ||||||||||||||||||||||||
(Earnings) losses attributable to noncontrolling interests | (3 | ) | — | — | (36 | ) | 2 | — | — | (37 | ) | ||||||||||||||||||||||
Preferred dividends | — | (1 | ) | — | — | — | — | (35 | ) | (36 | ) | ||||||||||||||||||||||
Earnings (losses) from continuing operations | $ | 143 | $ | 30 | $ | 113 | $ | 73 | $ | 46 | $ | 6 | $ | (127 | ) | 284 | |||||||||||||||||
Earnings from discontinued operations | 70 | ||||||||||||||||||||||||||||||||
Earnings attributable to common shares | $ | 354 | |||||||||||||||||||||||||||||||
Three months ended June 30, 2018(2) | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra Texas Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 1,051 | $ | 772 | $ | — | $ | 310 | $ | 40 | $ | 79 | $ | (77 | ) | $ | 2,175 | ||||||||||||||||
Cost of sales and other expenses | (667 | ) | (565 | ) | — | (123 | ) | (23 | ) | (91 | ) | 54 | (1,415 | ) | |||||||||||||||||||
Depreciation and amortization | (169 | ) | (138 | ) | — | (43 | ) | (14 | ) | (11 | ) | (2 | ) | (377 | ) | ||||||||||||||||||
Impairment losses | — | — | — | — | — | (1,300 | ) | — | (1,300 | ) | |||||||||||||||||||||||
Other income (expense), net | 25 | 13 | — | (95 | ) | — | — | 1 | (56 | ) | |||||||||||||||||||||||
Income (loss) before interest and tax(1) | 240 | 82 | — | 49 | 3 | (1,323 | ) | (24 | ) | (973 | ) | ||||||||||||||||||||||
Net interest (expense) income | (52 | ) | (25 | ) | — | (14 | ) | (3 | ) | 6 | (122 | ) | (210 | ) | |||||||||||||||||||
Income tax (expense) benefit | (42 | ) | (23 | ) | — | 55 | 58 | 506 | 48 | 602 | |||||||||||||||||||||||
Equity earnings (losses), net | — | — | 114 | 71 | (187 | ) | 1 | (3 | ) | (4 | ) | ||||||||||||||||||||||
(Earnings) losses attributable to noncontrolling interests | — | — | — | (64 | ) | 20 | 46 | — | 2 | ||||||||||||||||||||||||
Preferred dividends | — | (1 | ) | — | — | — | — | (25 | ) | (26 | ) | ||||||||||||||||||||||
Earnings (losses) from continuing operations | $ | 146 | $ | 33 | $ | 114 | $ | 97 | $ | (109 | ) | $ | (764 | ) | $ | (126 | ) | (609 | ) | ||||||||||||||
Earnings from discontinued operations | 48 | ||||||||||||||||||||||||||||||||
Losses attributable to common shares | $ | (561 | ) |
(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) | Amounts have been retrospectively adjusted for discontinued operations. |
SEMPRA ENERGY | |||||||||||||||||||||||||||||||||
Table F (Unaudited) | |||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATIONS DATA BY SEGMENT | |||||||||||||||||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra Texas Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 2,239 | $ | 2,167 | $ | — | $ | 701 | $ | 10 | $ | 227 | $ | (216 | ) | $ | 5,128 | ||||||||||||||||
Cost of sales and other expenses | (1,339 | ) | (1,512 | ) | — | (322 | ) | (20 | ) | (230 | ) | 154 | (3,269 | ) | |||||||||||||||||||
Depreciation and amortization | (375 | ) | (295 | ) | — | (90 | ) | — | (5 | ) | (7 | ) | (772 | ) | |||||||||||||||||||
Gain on sale of assets | — | — | — | — | 61 | — | 5 | 66 | |||||||||||||||||||||||||
Other income, net | 41 | 17 | — | 36 | — | — | 16 | 110 | |||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 566 | 377 | — | 325 | 51 | (8 | ) | (48 | ) | 1,263 | |||||||||||||||||||||||
Net interest (expense) income | (203 | ) | (67 | ) | — | (21 | ) | 8 | 23 | (216 | ) | (476 | ) | ||||||||||||||||||||
Income tax (expense) benefit | (40 | ) | (15 | ) | — | (116 | ) | (4 | ) | (6 | ) | 92 | (89 | ) | |||||||||||||||||||
Equity earnings (losses), net | — | — | 207 | 6 | 5 | 2 | (1 | ) | 219 | ||||||||||||||||||||||||
Earnings attributable to noncontrolling interests | (4 | ) | — | — | (64 | ) | (1 | ) | — | — | (69 | ) | |||||||||||||||||||||
Preferred dividends | — | (1 | ) | — | — | — | — | (71 | ) | (72 | ) | ||||||||||||||||||||||
Earnings (losses) from continuing operations | $ | 319 | $ | 294 | $ | 207 | $ | 130 | $ | 59 | $ | 11 | $ | (244 | ) | 776 | |||||||||||||||||
Earnings from discontinued operations | 19 | ||||||||||||||||||||||||||||||||
Earnings attributable to common shares | $ | 795 | |||||||||||||||||||||||||||||||
Six months ended June 30, 2018(2) | |||||||||||||||||||||||||||||||||
(Dollars in millions) | SDG&E | SoCalGas | Sempra Texas Utilities | Sempra Mexico | Sempra Renewables | Sempra LNG | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||
Revenues | $ | 2,106 | $ | 1,898 | $ | — | $ | 618 | $ | 65 | $ | 183 | $ | (159 | ) | $ | 4,711 | ||||||||||||||||
Cost of sales and other expenses | (1,308 | ) | (1,278 | ) | — | (252 | ) | (44 | ) | (193 | ) | 114 | (2,961 | ) | |||||||||||||||||||
Depreciation and amortization | (335 | ) | (273 | ) | — | (86 | ) | (27 | ) | (22 | ) | (6 | ) | (749 | ) | ||||||||||||||||||
Impairment losses | — | — | — | — | — | (1,300 | ) | — | (1,300 | ) | |||||||||||||||||||||||
Other income (expense), net | 53 | 46 | — | (2 | ) | — | — | (1 | ) | 96 | |||||||||||||||||||||||
Income (loss) before interest and tax(1) | 516 | 393 | — | 278 | (6 | ) | (1,332 | ) | (52 | ) | (203 | ) | |||||||||||||||||||||
Net interest (expense) income | (103 | ) | (52 | ) | — | (29 | ) | (6 | ) | 11 | (208 | ) | (387 | ) | |||||||||||||||||||
Income tax (expense) benefit | (98 | ) | (82 | ) | — | (100 | ) | 65 | 494 | 81 | 360 | ||||||||||||||||||||||
Equity earnings (losses), net | — | — | 129 | 30 | (182 | ) | 1 | (3 | ) | (25 | ) | ||||||||||||||||||||||
Losses (earnings) attributable to noncontrolling interests | 1 | — | — | (62 | ) | 41 | 46 | — | 26 | ||||||||||||||||||||||||
Preferred dividends | — | (1 | ) | — | — | — | — | (53 | ) | (54 | ) | ||||||||||||||||||||||
Earnings (losses) | $ | 316 | $ | 258 | $ | 129 | $ | 117 | $ | (88 | ) | $ | (780 | ) | $ | (235 | ) | (283 | ) | ||||||||||||||
Earnings from discontinued operations | 69 | ||||||||||||||||||||||||||||||||
Losses attributable to common shares | $ | (214 | ) |
(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) | Amounts have been retrospectively adjusted for discontinued operations. |