Document


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 9, 2017

 
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 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 9, 2017, Sempra Energy issued a press release announcing consolidated earnings of $441 million, or $1.75 per diluted share of common stock, for the first quarter of 2017. 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, 2017 and 2016. A copy of such information is attached as Exhibit 99.2.



Item 9.01 Financial Statements and Exhibits.
  
Exhibits

99.1
May 9, 2017 Sempra Energy News Release (including tables).

99.2
Sempra Energy’s Statement of Operations Data by Segment for the three months ended March 31, 2017 and 2016.












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 9, 2017
By: /s/ Trevor I. Mihalik
 
Trevor I. Mihalik
Senior Vice President, Controller and Chief Accounting Officer
 






Exhibit
Exhibit 99.1

https://cdn.kscope.io/f558173f9f31ef1082e78abcde3e3101-sempragraphic2a02.gif
NEWS RELEASE



Media Contact:               Doug Kline
Sempra Energy
(877) 340-8875
www.sempra.com        

Financial Contact:         Patrick Billings
Sempra Energy
(877) 736-7727
investor@sempra.com


SEMPRA ENERGY REPORTS
HIGHER FIRST-QUARTER 2017 EARNINGS

SAN DIEGO, May 9, 2017 - Sempra Energy (NYSE: SRE) today reported first-quarter 2017 earnings of $441 million, or $1.75 per diluted share, up from $353 million, or $1.40 per diluted share, in the first quarter 2016.
“Our strong first-quarter results keep us on track to meet our 2017 earnings guidance,” said Debra L. Reed, chairman, president and CEO of Sempra Energy. “As we outlined at our analyst conference last month, we are executing on our strategic plan to grow our earnings at about twice the average rate of our utility peers from 2017 through 2021.”
All earnings, adjusted earnings, earnings per share and adjusted earnings per share for 2016 have been recast to reflect the adoption of a share-based compensation accounting standard in 2016. Additionally, first-quarter 2016 results for Southern California Gas Co. (SoCalGas) and San Diego Gas & Electric (SDG&E) did not include revenue from their 2016-18 General Rate Case, as the California Public Utilities Commission (CPUC) did not issue its final decision until last year’s second quarter.
Sempra Energy’s first-quarter adjusted earnings were $438 million, or $1.74 per diluted share, in 2017, up from $404 million, or $1.60 per diluted share, in 2016. Last year’s adjusted first-quarter results excluded a $27 million after-tax loss related to the previously announced agreement to sell Sempra LNG & Midstream’s stake in the Rockies Express Pipeline (REX) and $24 million of deferred tax expense related to the planned Termoeléctrica de Mexicali (TdM) power plant sale. Sempra Energy’s adjusted first-quarter 2017 results excluded a $3 million deferred tax benefit related to the planned sale of TdM.




SEMPRA UTILITIES
Southern California Gas Co.
Earnings for SoCalGas were $203 million in the first quarter 2017, compared with $199 million in the first quarter 2016.

San Diego Gas & Electric
First-quarter earnings for SDG&E were $155 million in 2017, compared with $136 million in 2016, due primarily to higher CPUC base margin and lower operating expenses.

Sempra South American Utilities
Earnings for Sempra South American Utilities were $47 million in the first quarter 2017, compared with $38 million in the first quarter 2016, primarily due to higher operating earnings in Peru.     

SEMPRA INFRASTRUCTURE
Sempra Mexico
Sempra Mexico had first-quarter earnings of $48 million in 2017, compared with $18 million in 2016, due primarily to the $24 million in deferred tax expense in 2016 related to the planned TdM sale, offset by unfavorable foreign-currency and inflation impacts in 2017. Additionally, Sempra Mexico benefited in the first quarter 2017 from incremental operating earnings from subsidiary IEnova’s acquisitions late last year of the Ventika wind farm complex and PEMEX’s stake in the Gasoductos de Chihuahua joint venture, and higher regulatory earnings from projects in construction.

Sempra Renewables
First-quarter 2017 earnings for Sempra Renewables were $11 million, compared with $14 million in last year’s first quarter.

Sempra LNG & Midstream
Sempra LNG & Midstream had earnings of $1 million in the first quarter 2017, compared with a loss of $32 million in the first quarter 2016, primarily due to the $27 million after-tax loss in 2016 related to the agreement to sell its stake in REX.

EARNINGS GUIDANCE
Sempra Energy today reaffirmed its 2017 earnings-per-share guidance range of $4.85 to $5.25.

NON-GAAP FINANCIAL MEASURES



First-quarter adjusted earnings and adjusted earnings per share for both 2017 and 2016 are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the first-quarter financial tables.

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 2862957.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2016 revenues of more than $10 billion. The Sempra Energy companies’ more than 16,000 employees serve approximately 32 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 like "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 actual results and future actions to differ materially from those described in forward-looking statements include: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the California Public Utilities Commission, 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, 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; 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; modifications of settlements; delays in, or disallowance or denial of, regulatory agency authorizations to recover costs in rates from customers (including with respect to regulatory assets associated with the San Onofre Nuclear Generating Station facility and 2007 wildfires) or regulatory agency approval for projects required to enhance safety and reliability; 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 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; the impact on the value of our investment 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) or may be disputed by insurers; 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; fluctuations in inflation, interest and currency exchange rates and our ability to effectively hedge the risk of such fluctuations; changes in the tax code as a result of potential federal tax reform, such as the elimination of the deduction for interest and non-deductibility of all, or a portion of, the cost of imported materials, equipment and commodities; changes in foreign and domestic trade policies and laws, including border tariffs, revisions to favorable international trade agreements, and changes that make our exports less competitive or otherwise restrict our ability to export; 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; 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 Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com. 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 and IEnova are not the same as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and 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)
2017
 
2016(1)
 
(unaudited)
REVENUES
 
 
 
Utilities
$
2,698

 
$
2,442

Energy-related businesses
333

 
180

Total revenues
3,031


2,622

 
 
 
 
EXPENSES AND OTHER INCOME
 
 
 
Utilities:
 
 
 
Cost of electric fuel and purchased power
(527
)
 
(515
)
Cost of natural gas
(485
)
 
(311
)
Energy-related businesses:
 
 
 
Cost of natural gas, electric fuel and purchased power
(67
)
 
(56
)
Other cost of sales
(22
)
 
(35
)
Operation and maintenance
(714
)
 
(701
)
Depreciation and amortization
(360
)
 
(328
)
Franchise fees and other taxes
(110
)
 
(111
)
Equity earnings (losses), before income tax
3

 
(22
)
Other income, net
169

 
49

Interest income
6

 
6

Interest expense
(169
)
 
(143
)
Income before income taxes and equity (losses) earnings
of certain unconsolidated subsidiaries
755


455

Income tax expense
(295
)
 
(108
)
Equity (losses) earnings, net of income tax
(8
)
 
17

Net income
452


364

Earnings attributable to noncontrolling interests
(11
)
 
(11
)
Earnings
$
441


$
353

 
 
 
 
Basic earnings per common share
$
1.76

 
$
1.41

Weighted-average number of shares outstanding, basic (thousands)
251,131

 
249,734

 
 
 
 
Diluted earnings per common share
$
1.75

 
$
1.40

Weighted-average number of shares outstanding, diluted (thousands)
252,246

 
251,487

 
 
 
 
Dividends declared per share of common stock
$
0.82

 
$
0.76

 
 
 
 
(1)
As adjusted for the adoption of ASU 2016-09 as of January 1, 2016.





SEMPRA ENERGY
Table A (Continued)
RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS (Unaudited)
Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share exclude items (after the effects of taxes and, if applicable, noncontrolling interests) in 2017 and 2016 as follows:
Three months ended March 31, 2017:
$3 million deferred income tax benefit on Sempra Mexico’s Termoeléctrica de Mexicali (TdM) natural gas-fired power plant that is held for sale

Three months ended March 31, 2016:
$(27) million impairment charge related to Sempra LNG & Midstream’s investment in Rockies Express Pipeline LLC (Rockies Express)
$(24) million deferred income tax expense on the TdM natural gas-fired power plant that is held for sale

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a meaningful comparison of the performance of Sempra Energy’s business operations from 2017 to 2016 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 Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.    
 
 
Pretax amount
Income tax benefit(1)
Non-controlling interests
Earnings
 
Pretax amount
Income tax (benefit)expense(1)
Non-controlling interests
Earnings
 
(Dollars in millions, except per share amounts)
Three months ended March 31, 2017
 
Three months ended March 31, 2016(2)
 
Sempra Energy GAAP Earnings
 
 
 
$
441

 
 
 
 
$
353

 
Exclude:
 
 
 
 
 
 
 
 
 
 
Impairment of investment in Rockies Express
$

$

$


 
$
44

$
(17
)
$

27

 
Deferred income tax (benefit) expense associated with TdM

(5
)
2

(3
)
 

29

(5
)
24

 
Sempra Energy Adjusted Earnings
 
 


$
438

 
 
 
 
$
404

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
 
 
 
Sempra Energy GAAP Earnings
 
 
 
$
1.75

 
 
 
 
$
1.40

 
Sempra Energy Adjusted Earnings
 
 
 
$
1.74

 
 
 
 
$
1.60

 
Weighted-average number of shares outstanding, diluted (thousands)
 
 
 
252,246

 
 
 
 
251,487

 
(1)
Income taxes were calculated based on applicable statutory tax rates, except for adjustments that are solely income tax. Income taxes associated with TdM were calculated based on the applicable statutory tax rate, including translation from historic to current exchange rates.
 
(2)
Reflects the adoption of ASU 2016-09 as of January 1, 2016.
 





SEMPRA ENERGY
Table B
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
 
(Dollars in millions)
March 31,
2017
 
December 31,
2016
(1)
 
(unaudited)
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
290

 
$
349

Restricted cash
72

 
66

Accounts receivable, net
1,468

 
1,554

Due from unconsolidated affiliates
24

 
26

Income taxes receivable
65

 
43

Inventories
210

 
258

Regulatory balancing accounts – undercollected
202

 
259

Fixed-price contracts and other derivatives
161

 
83

Assets held for sale
196

 
201

Other
265

 
271

Total current assets
2,953

 
3,110

 
 
 
 
Other assets:
 
 
 
Restricted cash
5

 
10

Due from unconsolidated affiliates
187

 
201

Regulatory assets
3,503

 
3,414

Nuclear decommissioning trusts
1,062

 
1,026

Investments
2,120

 
2,097

Goodwill
2,380

 
2,364

Other intangible assets
544

 
548

Dedicated assets in support of certain benefit plans
412

 
430

Insurance receivable for Aliso Canyon costs
621

 
606

Deferred income taxes
188

 
234

Sundry
817

 
815

Total other assets
11,839

 
11,745

Property, plant and equipment, net
33,492

 
32,931

Total assets
$
48,284

 
$
47,786

 
 
 
 
Liabilities and Equity
 
 
 
Current liabilities:
 
 
 
Short-term debt
$
2,054

 
$
1,779

Accounts payable
1,092

 
1,476

Due to unconsolidated affiliates
13

 
11

Dividends and interest payable
382

 
319

Accrued compensation and benefits
239

 
409

Regulatory balancing accounts – overcollected
189

 
122

Current portion of long-term debt
839

 
913

Fixed-price contracts and other derivatives
115

 
83

Customer deposits
160

 
158

Reserve for Aliso Canyon costs
49

 
53

Liabilities held for sale
40

 
47

Other
640

 
557

Total current liabilities
5,812

 
5,927

Long-term debt
14,409

 
14,429

 
 
 
 
Deferred credits and other liabilities:
 
 
 
Customer advances for construction
145

 
152

Pension and other postretirement benefit plan obligations, net of plan assets
1,212

 
1,208

Deferred income taxes
4,025

 
3,745

Deferred investment tax credits
26

 
28

Regulatory liabilities arising from removal obligations
2,761

 
2,697

Asset retirement obligations
2,455

 
2,431

Fixed-price contracts and other derivatives
343

 
405

Deferred credits and other
1,527

 
1,523

Total deferred credits and other liabilities
12,494

 
12,189

Equity:
 
 
 
Total Sempra Energy shareholders equity
13,264

 
12,951

Preferred stock of subsidiary
20

 
20

Other noncontrolling interests
2,285

 
2,270

Total equity
15,569

 
15,241

Total liabilities and equity
$
48,284

 
$
47,786

 
 
 
 
(1)
Derived from audited financial statements.





SEMPRA ENERGY
Table C
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31,
(Dollars in millions)
 
2017
 
2016(1)
 
 
(unaudited)
Cash Flows from Operating Activities
 
 
 
 
Net income
 
$
452

 
$
364

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
360

 
328

Deferred income taxes and investment tax credits
 
268

 
78

Equity losses
 
5

 
5

Fixed-price contracts and other derivatives
 
(106
)
 
4

Other
 
(22
)
 
36

Net change in other working capital components
 
84

 
165

Insurance receivable for Aliso Canyon costs
 
(15
)
 
(335
)
Changes in other assets
 
(41
)
 
(29
)
Changes in other liabilities
 
19

 
10

Net cash provided by operating activities
 
1,004

 
626

 
 
 
 
 
Cash Flows from Investing Activities
 
 
 
 
Expenditures for property, plant and equipment
 
(992
)
 
(971
)
Expenditures for investments
 
(59
)
 
(30
)
Distributions from investments
 
17

 
9

Purchases of nuclear decommissioning and other trust assets
 
(350
)
 
(94
)
Proceeds from sales by nuclear decommissioning and other trusts
 
357

 
93

Increases in restricted cash
 
(93
)
 
(16
)
Decreases in restricted cash
 
93

 
20

Advances to unconsolidated affiliates
 
(5
)
 
(6
)
Repayments of advances to unconsolidated affiliates
 
2

 
9

Other
 
4

 
(3
)
Net cash used in investing activities
 
(1,026
)
 
(989
)
 
 
 
 
 
Cash Flows from Financing Activities
 
 
 
 
Common dividends paid
 
(176
)
 
(161
)
Issuances of common stock
 
17

 
15

Repurchases of common stock
 
(14
)
 
(54
)
Issuances of debt (maturities greater than 90 days)
 
542

 
55

Payments on debt (maturities greater than 90 days)
 
(313
)
 
(54
)
(Decrease) increase in short-term debt, net
 
(97
)
 
531

Other
 
(5
)
 
(2
)
Net cash (used in) provided by financing activities
 
(46
)
 
330

 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 
9

 
6

 
 
 
 
 
Decrease in cash and cash equivalents
 
(59
)
 
(27
)
Cash and cash equivalents, January 1
 
349

 
403

Cash and cash equivalents, March 31
 
$
290

 
$
376

 
 
(1)
As adjusted for the adoption of ASU 2016-09 as of January 1, 2016.







SEMPRA ENERGY
Table D
 
 
 
 
 
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES AND INVESTMENTS
 
 
 
 
 
 
 
Three months ended
March 31,
(Dollars in millions)
 
2017
 
2016(1)
 
 
(unaudited)
Earnings (Losses)
 
 
 
 
Sempra Utilities:
 
 
 
 
San Diego Gas & Electric
 
$
155

 
$
136

Southern California Gas
 
203

 
199

Sempra South American Utilities
 
47

 
38

Sempra Infrastructure:
 
 
 
 
Sempra Mexico
 
48

 
18

Sempra Renewables
 
11

 
14

Sempra LNG & Midstream
 
1

 
(32
)
Parent and other
 
(24
)
 
(20
)
Earnings
 
$
441

 
$
353

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
March 31,
(Dollars in millions)
 
2017
 
2016
 
 
(unaudited)
Capital Expenditures and Investments
 
 
 
 
Sempra Utilities:
 
 
 
 
San Diego Gas & Electric
 
$
418

 
$
329

Southern California Gas
 
357

 
340

Sempra South American Utilities
 
43

 
43

Sempra Infrastructure:
 
 
 
 
Sempra Mexico
 
140

 
40

Sempra Renewables
 
69

 
199

Sempra LNG & Midstream
 
15

 
47

Parent and other
 
9

 
3

Consolidated Capital Expenditures and Investments
 
$
1,051

 
$
1,001

 
 
 
 
 
(1)
As adjusted for the adoption of ASU 2016-09 as of January 1, 2016.
 






SEMPRA ENERGY
Table E
 
OTHER OPERATING STATISTICS (Unaudited)
 
 
 
Three months ended
March 31,
UTILITIES
 
2017
 
2016
 
 
 
 
 
SDG&E and SoCalGas
 
 
 
 
Gas Sales (Bcf)(1)
 
126

 
113

Transportation (Bcf)(1)
 
156

 
148

Total Deliveries (Bcf)(1)
 
282

 
261

 
 
 
 
 
Total Gas Customers (Thousands)
 
6,816

 
6,782

 
 
 
 
 
Electric Sales (Millions of kWhs)(1)
 
3,764

 
3,773

Direct Access (Millions of kWhs)
 
787

 
834

Total Deliveries (Millions of kWhs)(1)
 
4,551

 
4,607

 
 
 
 
 
Total Electric Customers (Thousands)
 
1,436

 
1,428

 
 
 
 
 
Other Utilities
 
 
 
 
Natural Gas Sales (Bcf)
 
 
 
 
Sempra Mexico
 
8

 
8

Mobile Gas(2) (3)
 

 
13

Willmut Gas(3)
 

 
1

Natural Gas Customers (Thousands)
 
 
 
 
Sempra Mexico
 
119

 
114

Mobile Gas(2) (3)
 

 
84

Willmut Gas(3)
 

 
19

Electric Sales (Millions of kWhs)
 
 
 
 
Peru
 
1,894

 
1,949

Chile
 
811

 
799

Electric Customers (Thousands)
 
 
 
 
Peru
 
1,080

 
1,058

Chile
 
689

 
675

 
 
 
 
 
ENERGY-RELATED BUSINESSES
 
 
 
 
 
 
 
 
 
Sempra Infrastructure
 
 
 
 
Power Sold (Millions of kWhs)
 
 
 
 
Sempra Mexico(4)
 
1,055

 
580

Sempra Renewables(5)
 
1,014

 
767

Sempra LNG & Midstream
 
265

 
221

 
 
(1)
Includes intercompany sales.
(2)
Includes transportation.
(3)
On September 12, 2016, Sempra LNG & Midstream completed the sale of the parent company of Mobile Gas and Willmut Gas.
(4)
Includes power sold at the Termoeléctrica de Mexicali natural gas-fired power plant and in 2017, at the Ventika wind power generation facilities acquired in December 2016. Also includes 50 percent of total power 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.
(5)
Includes 50 percent of total power sold related to solar and wind projects in which Sempra Energy has a 50-percent ownership. These subsidiaries are not consolidated within Sempra Energy, and the related investments are accounted for under the equity method.



Exhibit


 
         SEMPRA ENERGY
           Table F (Unaudited)
STATEMENT OF OPERATIONS DATA BY SEGMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
SDG&E
 
SoCalGas
 
Sempra South American Utilities
 
Sempra Mexico
 
Sempra Renewables
 
Sempra LNG & Midstream
 
Consolidating Adjustments, Parent & Other
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
1,057

 
$
1,241

 
$
412

 
$
264

 
$
22

 
$
132

 
$
(97
)
 
 
$
3,031

Cost of sales and other expenses
(616
)
 
(800
)
 
(326
)
 
(121
)
 
(15
)
 
(128
)
 
81

 
 
(1,925
)
Depreciation and amortization
(163
)
 
(126
)
 
(13
)
 
(36
)
 
(9
)
 
(10
)
 
(3
)
 
 
(360
)
Equity earnings, before income tax

 

 

 

 
2

 
1

 

 
 
3

Other income, net
18

 
11

 
3

 
127

 

 
1

 
9

 
 
169

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

 
326

 
76

 
234

 

 
(4
)
 
(10
)
 
 
918

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 of income tax

 

 
1

 
(9
)
 

 

 

 
 
(8
)
(Earnings) losses attributable to noncontrolling interests
(2
)
 

 
(7
)
 
(5
)
 
3

 

 

 
 
(11
)
Earnings (losses)
$
155

 
$
203

 
$
47

 
$
48

 
$
11

 
$
1

 
$
(24
)
 
 
$
441

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
SDG&E
 
SoCalGas
 
Sempra South American Utilities
 
Sempra Mexico
 
Sempra Renewables
 
Sempra LNG & Midstream
 
Consolidating Adjustments, Parent & Other
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
991

 
$
1,033

 
$
400

 
$
138

 
$
7

 
$
130

 
$
(77
)
 
 
$
2,622

Cost of sales and other expenses
(596
)
 
(617
)
 
(329
)
 
(82
)
 
(13
)
 
(154
)
 
62

 
 
(1,729
)
Depreciation and amortization
(159
)
 
(122
)
 
(13
)
 
(17
)
 
(1
)
 
(13
)
 
(3
)
 
 
(328
)
Equity earnings (losses), before income tax

 

 

 

 
7

 
(29
)
 

 
 
(22
)
Other income, net
14

 
10

 
2

 
11

 

 

 
12

 
 
49

Income (loss) before interest and tax (1)
250

 
304

 
60

 
50

 

 
(66
)
 
(6
)
 
 
592

Net interest (expense) income (2)
(48
)
 
(22
)
 
(4
)
 
(2
)
 
1

 
4

 
(66
)
 
 
(137
)
Income tax (expense) benefit (3)
(65
)
 
(83
)
 
(14
)
 
(40
)
 
13

 
29

 
52

 
 
(108
)
Equity earnings, net of income tax

 

 
2

 
15

 

 

 

 
 
17

(Earnings) losses attributable to noncontrolling interests
(1
)
 

 
(6
)
 
(5
)
 

 
1

 

 
 
(11
)
Earnings (losses) (3)
$
136

 
$
199

 
$
38

 
$
18

 
$
14

 
$
(32
)
 
$
(20
)
 
 
$
353

 
 
(1)
Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments’ performance because it can be used to evaluate the effectiveness of our operations exclusive of
 
interest and income tax, neither of which is directly relevant to the efficiency of those operations.
(2)
Includes interest income, interest expense and preferred dividends of subsidiary.
 
 
 
(3)
As adjusted for the adoption of ASU 2016-09 as of January 1, 2016.