SOCGM 8-K
Southern California Gas Co (SOCGM)
8-K
2024-08-06
For: 2024-08-06
View Original
Added on
April 10, 2026
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) | ||
| Commission File No. | Exact Name of Registrants as Specified in their Charters, Address and Telephone Number | State of Incorporation | I.R.S. Employer Identification Nos. | Former name, former address and former fiscal year, if changed since last report | |||||||||||||
 | No change | ||||||||||||||||
 | No change | ||||||||||||||||
 | No change | ||||||||||||||||
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants 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 | ||||||
| SEMPRA: | ||||||||
| SAN DIEGO GAS & ELECTRIC COMPANY: | ||||||||
| None | ||||||||
| SOUTHERN CALIFORNIA GAS COMPANY: | ||||||||
| 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). | ||||||||
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. ☐ | ||||||||
Item 2.02 Results of Operations and Financial Condition.
On August 6, 2024, Sempra issued a press release announcing its financial results for the three months and six months ended June 30, 2024. A copy of Sempra’s press release is attached hereto as Exhibit 99.1. Sempra’s Statements of Operations Data by Segment for the three months and six months ended June 30, 2024 and 2023 is attached hereto as Exhibit 99.2.
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, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Exhibit Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| SEMPRA, | |||||
| (Registrant) | |||||
| Date: August 6, 2024 | By: /s/ Peter R. Wall | ||||
| Peter R. Wall Senior Vice President, Controller and Chief Accounting Officer | |||||
| SAN DIEGO GAS & ELECTRIC COMPANY, | |||||
| (Registrant) | |||||
| Date: August 6, 2024 | By: /s/ Valerie A. Bille | ||||
| Valerie A. Bille Vice President, Controller and Chief Accounting Officer | |||||
| SOUTHERN CALIFORNIA GAS COMPANY, | |||||
| (Registrant) | |||||
| Date: August 6, 2024 | By: /s/ Sara P. Mijares | ||||
Sara P. Mijares Vice President, Controller and Chief Accounting Officer | |||||
Exhibit 99.1
NEWS RELEASE
| Media Contact: | Katie Nieri | |||||||||||||
| Sempra | ||||||||||||||
| (877) 340-8875 | ||||||||||||||
| [email protected] | ||||||||||||||
| Financial Contact: | Jenell McKay | |||||||||||||
| Sempra | ||||||||||||||
| (877) 736-7727 | ||||||||||||||
| [email protected] | ||||||||||||||
Sempra Reports Second-Quarter 2024 Earnings Results
Oncor reaches settlement in principle on
~$3B System Resiliency Plan
SAN DIEGO, Aug. 6, 2024 -- Sempra (NYSE: SRE) (BMV: SRE) today reported second-quarter 2024 earnings, prepared in accordance with generally accepted accounting principles (GAAP), of $713 million, or $1.12 per diluted share, compared to second-quarter 2023 GAAP earnings of $603 million, or $0.95 per diluted share. On an adjusted basis, the company’s second-quarter 2024 earnings were $567 million, or $0.89 per diluted share, compared to $594 million, or $0.94 per diluted share in second-quarter 2023.
“At Sempra, we are pleased with the strength of our financial performance through the first half of the year,” said Jeffrey W. Martin, chairman and CEO of Sempra. “Our company is well-positioned for continued growth across each of our business platforms, which are benefitting from ongoing electrification, economic development, and demand for safe, reliable and cleaner energy.”
Sempra's GAAP earnings for the first six months of 2024 were $1.514 billion, or $2.38 per diluted share, compared with GAAP earnings of $1.572 billion, or $2.49 per diluted share, in the first six months of 2023. Adjusted earnings for the first six months of 2024 were $1.421 billion, or $2.24 per diluted share, compared to $1.516 billion, or $2.40 per diluted share, in the first six months of 2023.
The reported financial results reflect certain significant items as described on an after-tax basis in the following table of GAAP earnings, reconciled to adjusted earnings, for the second quarter and first six months of 2024 and 2023.
| (Dollars and shares in millions, except EPS) | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
| GAAP Earnings | $ | 713 | $ | 603 | $ | 1,514 | $ | 1,572 | |||||||||||||||||||||
| Equity losses from write-off of rate base disallowances resulting from Public Utility Commission of Texas' final order in Oncor Electric Delivery Company LLC's comprehensive base rate review | — | — | — | 44 | |||||||||||||||||||||||||
| Impact from foreign currency and inflation on monetary positions in Mexico | (152) | 93 | (111) | 202 | |||||||||||||||||||||||||
| Net unrealized losses (gains) on derivatives | 6 | (102) | 18 | (319) | |||||||||||||||||||||||||
| Net unrealized losses on contingent interest rate swap related to initial phase of the Port Arthur LNG liquefaction project | — | — | — | 17 | |||||||||||||||||||||||||
Adjusted Earnings(1) | $ | 567 | $ | 594 | $ | 1,421 | $ | 1,516 | |||||||||||||||||||||
| Diluted Weighted-Average Common Shares Outstanding | 636 | 632 | 636 | 632 | |||||||||||||||||||||||||
| GAAP EPS | $ | 1.12 | $ | 0.95 | $ | 2.38 | $ | 2.49 | |||||||||||||||||||||
Adjusted EPS(1) | $ | 0.89 | $ | 0.94 | $ | 2.24 | $ | 2.40 | |||||||||||||||||||||
Sempra California
The focus at the company’s California utilities remains on connecting people to safe, reliable and cleaner energy through the expansion and modernization of energy networks.
The California Public Utilities Commission continues to review the rate requests of Sempra California’s utilities, which focus on delivering cleaner energy, safely and reliably, in alignment with California’s public policy goals. The final decision is expected before year-end 2024 with rates retroactively effective to Jan. 1 of this year.
In July, San Diego Gas & Electric Co. (SDGE) completed a new Wildfire and Climate Resilience Center, a state-of-the-art facility dedicated to enhancing the company’s capabilities in wildfire and climate resilience. The center is one of the most technologically advanced of its kind in the industry and underscores SDGE’s position as a leader in climate adaptation and resiliency.
Under California's renewable gas procurement standard, known as Senate Bill 1440, the Southern California Gas Co. (SoCalGas) has filed for approval of three renewable natural gas contracts, pending commission review. In July, California celebrated a milestone in its journey to advance a hydrogen economy with the Department of Energy’s Office of Clean Energy Demonstrations awarding its first tranche of hydrogen hub funding to the Alliance of Renewable Clean Hydrogen Energy Systems (ARCHES). The plan for the ARCHES hub includes new SoCalGas infrastructure as part of a network of clean, renewable hydrogen production and distribution with the ultimate goal of helping decarbonize hard-to electrify industries like heavy duty trucking, public transportation and port operations.
Sempra Texas
Yesterday, Oncor Electric Delivery Company LLC (Oncor) successfully reached a settlement in principle regarding the System Resiliency Plan (SRP) originally filed in May. The SRP as filed proposed nearly $3 billion of potential capital investments over a three-year period, and, subject to documentation and approval of the settlement by the Public Utility Commission of Texas, Oncor expects to begin implementing the SRP in the fourth quarter of this year with the related capital being incremental to Oncor’s existing capital program.
Broad expansion and load growth across the service territory of Oncor continues driving new investment opportunities. In addition to building new energy infrastructure to meet demand related to artificial intelligence and data centers, load growth is also coming from a wide range of industries across the state, including new and expanded commercial and industrial facilities, electrification of oil and gas operations, manufacturing and residential.
At the end of second-quarter 2024, Oncor had 814 active generation and large commercial and industrial transmission point-of-interconnection requests in queue, representing a 13% increase as compared to the end of second-quarter 2023 and demonstrating the growing demand for new infrastructure in Oncor’s service territory. Oncor placed into service 25 load-serving substation projects and 175 circuit miles of new or upgraded high-voltage transmission lines in second-quarter 2024, outpacing the 9 load-serving substations and 24 circuit miles placed into service in first-quarter 2024.
Sempra Infrastructure
Strong global demand for cleaner and more secure energy continues to support Sempra Infrastructure’s development activities across its liquefied natural gas (LNG), energy networks and low carbon solutions business lines.
Port Arthur LNG Phase 1 is under construction while the proposed Phase 2 expansion project is making steady progress. In June, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement contemplating the purchase of 5 million tonnes per annum of LNG and a 25% equity investment in Phase 2, highlighting continued strong interest in the competitive positioning of the company’s LNG development projects. Moreover, in July, Sempra Infrastructure took another positive step forward in support of Port Arthur LNG Phase 2 by entering into a fixed-price engineering, procurement and construction contract with Bechtel Energy. The referenced contract with Bechtel provides the opportunity for a continuous construction process from Phase 1 to Phase 2, contributing to the operational benefits and attractive economics of the brownfield expansion.
Construction at Energía Costa Azul LNG Phase 1 is approximately 85% complete but in recent months has experienced labor and productivity challenges. Mechanical completion and first LNG are expected to occur in 2025, with timing of commercial operations under the sales and purchase agreements targeted for spring 2026.
Earnings Guidance
Sempra is updating its full-year 2024 GAAP earnings-per-common share (EPS) guidance range to $4.74 to $5.04 reflecting actual results through the second quarter, affirming its full-year 2024 adjusted EPS guidance range of $4.60 to $4.90 and affirming its full-year 2025 EPS guidance range of $4.90 to $5.25. The company is also affirming its projected long-term EPS growth rate of approximately 6% to 8%.
Non-GAAP Financial Measures
Non-GAAP financial measures include Sempra’s adjusted earnings, adjusted EPS and adjusted EPS guidance range. See Table A for additional information regarding these non-GAAP financial measures.
Internet Broadcast
Sempra will broadcast a live discussion of its earnings results over the internet today at 12 p.m. ET with the company’s senior management. Access is available by logging onto the Investors section of the company’s website, sempra.com/investors. The webcast will be available on replay a few hours after its conclusion at sempra.com/investors.
About Sempra
Sempra (NYSE: SRE) is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world's most significant economic markets, including California, Texas, Mexico and global energy markets. The company is recognized as a leader in sustainable business practices and for its high-performance culture focused on safety and operational excellence, as demonstrated by Sempra's inclusion in the Dow Jones Sustainability Index North America and in The Wall Street Journal's Best Managed Companies. More information about Sempra is available at sempra.com and on social media @Sempra.
###
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.
In this press release, forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “initiative,” “target,” “outlook,” “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, rates from customers or a combination thereof; decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), Comisión Reguladora de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service, Public Utility Commission of Texas and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, (iv) obtaining third-party consents and approvals
and (v) third parties honoring their contracts and commitments; macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on rate base or other growth; litigation, arbitration, property disputes and other proceedings, and changes (i) to laws and regulations, including those related to tax and trade policy and the energy industry in Mexico and (ii) due to the results of elections; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation; the impact on affordability of San Diego Gas & Electric Company’s (SDG&E) and Southern California Gas Company’s (SoCalGas) customer rates and their cost of capital and on SDG&E’s, SoCalGas’ and Sempra Infrastructure’s ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices, (ii) with respect to SDG&E’s and SoCalGas’ businesses, the cost of meeting the demand for lower carbon and reliable energy in California, and (iii) with respect to Sempra Infrastructure’s business, volatility in foreign currency exchange rates; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power, natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, pipeline system or limitations on the withdrawal of natural gas from storage facilities; Oncor Electric Delivery Company LLC’s (Oncor) ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director; and other uncertainties, some of which are difficult to predict and beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.
None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document.
| SEMPRA | |||||||||||||||||||||||
| Table A | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (Dollars in millions, except per share amounts; shares in thousands) | |||||||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Utilities: | |||||||||||||||||||||||
| Natural gas | $ | 1,494 | $ | 1,660 | $ | 3,603 | $ | 6,072 | |||||||||||||||
| Electric | 1,144 | 1,054 | 2,200 | 2,081 | |||||||||||||||||||
| Energy-related businesses | 373 | 621 | 848 | 1,742 | |||||||||||||||||||
| Total revenues | 3,011 | 3,335 | 6,651 | 9,895 | |||||||||||||||||||
| EXPENSES AND OTHER INCOME | |||||||||||||||||||||||
| Utilities: | |||||||||||||||||||||||
| Cost of natural gas | (137) | (311) | (691) | (2,994) | |||||||||||||||||||
| Cost of electric fuel and purchased power | (156) | (88) | (245) | (202) | |||||||||||||||||||
| Energy-related businesses cost of sales | (54) | (81) | (163) | (274) | |||||||||||||||||||
| Operation and maintenance | (1,333) | (1,366) | (2,545) | (2,575) | |||||||||||||||||||
| Depreciation and amortization | (603) | (549) | (1,197) | (1,088) | |||||||||||||||||||
| Franchise fees and other taxes | (156) | (148) | (340) | (340) | |||||||||||||||||||
| Other income, net | 30 | 31 | 129 | 72 | |||||||||||||||||||
| Interest income | 17 | 17 | 30 | 41 | |||||||||||||||||||
| Interest expense | (311) | (317) | (616) | (683) | |||||||||||||||||||
| Income before income taxes and equity earnings | 308 | 523 | 1,013 | 1,852 | |||||||||||||||||||
| Income tax benefit (expense) | 130 | (175) | (42) | (551) | |||||||||||||||||||
| Equity earnings | 433 | 388 | 781 | 607 | |||||||||||||||||||
| Net income | 871 | 736 | 1,752 | 1,908 | |||||||||||||||||||
| Earnings attributable to noncontrolling interests | (146) | (121) | (215) | (313) | |||||||||||||||||||
| Preferred dividends | (11) | (11) | (22) | (22) | |||||||||||||||||||
| Preferred dividends of subsidiary | (1) | (1) | (1) | (1) | |||||||||||||||||||
| Earnings attributable to common shares | $ | 713 | $ | 603 | $ | 1,514 | $ | 1,572 | |||||||||||||||
| Basic earnings per common share (EPS): | |||||||||||||||||||||||
| Earnings | $ | 1.13 | $ | 0.96 | $ | 2.39 | $ | 2.50 | |||||||||||||||
| Weighted-average common shares outstanding | 633,450 | 630,014 | 633,135 | 629,926 | |||||||||||||||||||
| Diluted EPS: | |||||||||||||||||||||||
| Earnings | $ | 1.12 | $ | 0.95 | $ | 2.38 | $ | 2.49 | |||||||||||||||
| Weighted-average common shares outstanding | 636,279 | 632,121 | 635,817 | 632,185 | |||||||||||||||||||
SEMPRA
Table A (Continued)
RECONCILIATION OF SEMPRA ADJUSTED EARNINGS TO SEMPRA GAAP EARNINGS
Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2024 and 2023 as follows:
Three months ended June 30, 2024:
▪$152 million impact from foreign currency and inflation on our monetary positions in Mexico
▪$(6) million net unrealized losses on commodity derivatives
Three months ended June 30, 2023:
▪$(93) million impact from foreign currency and inflation on our monetary positions in Mexico
▪$102 million net unrealized gains on commodity derivatives
Six months ended June 30, 2024:
▪$111 million impact from foreign currency and inflation on our monetary positions in Mexico
▪$(18) million net unrealized losses on commodity derivatives
Six months ended June 30, 2023:
▪$(44) million equity losses from investment in Oncor Electric Delivery Holdings Company LLC (Oncor Holdings) related to a write-off of rate base disallowances resulting from the Public Utility Commission of Texas' (PUCT) final order in Oncor Electric Delivery Company LLC's (Oncor) comprehensive base rate review
▪$(202) million impact from foreign currency and inflation on our monetary positions in Mexico
▪$319 million net unrealized gains on commodity derivatives
▪$(17) million net unrealized losses on a contingent interest rate swap related to the initial phase of the Port Arthur LNG liquefaction project (PA LNG Phase 1 project)
Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation on our monetary positions in Mexico and net unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra’s business operations to prior and 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 GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.
SEMPRA
Table A (Continued)
| RECONCILIATION OF ADJUSTED EARNINGS TO GAAP EARNINGS AND ADJUSTED EPS TO GAAP EPS | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share amounts; shares in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Pretax amount | Income tax benefit(1) | Non-controlling interests | Earnings | Diluted EPS | Pretax amount | Income tax expense (benefit)(1) | Non-controlling interests | Earnings | Diluted EPS | ||||||||||||||||||||||||||||||||||||||
| Three months ended June 30, 2024 | Three months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Sempra GAAP Earnings and GAAP EPS | $ | 713 | $ | 1.12 | $ | 603 | $ | 0.95 | |||||||||||||||||||||||||||||||||||||||
| Excluded items: | |||||||||||||||||||||||||||||||||||||||||||||||
| Impact from foreign currency and inflation on monetary positions in Mexico | $ | (37) | $ | (186) | $ | 71 | (152) | (0.24) | $ | 18 | $ | 117 | $ | (42) | 93 | 0.15 | |||||||||||||||||||||||||||||||
| Net unrealized losses (gains) on commodity derivatives | 12 | (2) | (4) | 6 | 0.01 | (200) | 41 | 57 | (102) | (0.16) | |||||||||||||||||||||||||||||||||||||
| Sempra Adjusted Earnings and Adjusted EPS | $ | 567 | $ | 0.89 | $ | 594 | $ | 0.94 | |||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding, diluted | 636,279 | 632,121 | |||||||||||||||||||||||||||||||||||||||||||||
| Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Sempra GAAP Earnings and GAAP EPS | $ | 1,514 | $ | 2.38 | $ | 1,572 | $ | 2.49 | |||||||||||||||||||||||||||||||||||||||
| Excluded items: | |||||||||||||||||||||||||||||||||||||||||||||||
Equity losses from write-off of rate base disallowances resulting from PUCT's final order in Oncor's comprehensive base rate review | $ | — | $ | — | $ | — | — | — | $ | — | $ | — | $ | — | 44 | 0.07 | |||||||||||||||||||||||||||||||
| Impact from foreign currency and inflation on monetary positions in Mexico | (30) | (133) | 52 | (111) | (0.17) | 43 | 252 | (93) | 202 | 0.32 | |||||||||||||||||||||||||||||||||||||
| Net unrealized losses (gains) on commodity derivatives | 35 | (5) | (12) | 18 | 0.03 | (628) | 126 | 183 | (319) | (0.51) | |||||||||||||||||||||||||||||||||||||
| Net unrealized losses on contingent interest rate swap related to PA LNG Phase 1 project | — | — | — | — | — | 33 | (6) | (10) | 17 | 0.03 | |||||||||||||||||||||||||||||||||||||
| Sempra Adjusted Earnings and Adjusted EPS | $ | 1,421 | $ | 2.24 | $ | 1,516 | $ | 2.40 | |||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding, diluted | 635,817 | 632,185 | |||||||||||||||||||||||||||||||||||||||||||||
(1) Income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We record equity losses from our investment in Oncor Holdings net of income tax.
SEMPRA
Table A (Continued)
RECONCILIATION OF SEMPRA 2024 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA 2024 GAAP EPS GUIDANCE RANGE
Sempra 2024 Adjusted EPS Guidance Range of $4.60 to $4.90 excludes items (after the effects of income taxes and, if applicable, NCI) as follows:
▪$111 million impact from foreign currency and inflation on our monetary positions in Mexico
▪$(18) million net unrealized losses on commodity derivatives
Sempra 2024 Adjusted EPS Guidance is a non-GAAP financial measure. This non-GAAP financial measure excludes significant items that are generally not related to our ongoing business activities and/or infrequent in nature. This non-GAAP financial measure also excludes the impact from foreign currency and inflation on our monetary positions in Mexico and net unrealized gains and losses on commodity derivatives for the six months ended June 30, 2024, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Sempra 2024 Adjusted EPS Guidance Range should not be considered an alternative to Sempra 2024 GAAP EPS Guidance Range. 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 Sempra 2024 Adjusted EPS Guidance Range to Sempra 2024 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP.
| RECONCILIATION OF ADJUSTED EPS GUIDANCE RANGE TO GAAP EPS GUIDANCE RANGE | |||||||||||
Full-Year 2024 | |||||||||||
| Sempra GAAP EPS Guidance Range | $ | 4.74 | to | $ | 5.04 | ||||||
| Excluded items: | |||||||||||
| Impact from foreign currency and inflation on monetary positions in Mexico | (0.17) | (0.17) | |||||||||
| Net unrealized losses on commodity derivatives | 0.03 | 0.03 | |||||||||
| Sempra Adjusted EPS Guidance Range | $ | 4.60 | to | $ | 4.90 | ||||||
| Weighted-average common shares outstanding, diluted (millions) | 637 | ||||||||||
| SEMPRA | |||||||||||
| Table B | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (Dollars in millions) | |||||||||||
| June 30, 2024 | December 31, 2023(1) | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 228 | $ | 236 | |||||||
| Restricted cash | 16 | 49 | |||||||||
| Accounts receivable – trade, net | 1,552 | 2,151 | |||||||||
| Accounts receivable – other, net | 441 | 561 | |||||||||
| Due from unconsolidated affiliates | 7 | 31 | |||||||||
| Income taxes receivable | 95 | 94 | |||||||||
| Inventories | 467 | 482 | |||||||||
| Prepaid expenses | 173 | 273 | |||||||||
| Regulatory assets | 55 | 226 | |||||||||
| Fixed-price contracts and other derivatives | 129 | 122 | |||||||||
| Greenhouse gas allowances | 1,176 | 1,189 | |||||||||
| Other current assets | 39 | 56 | |||||||||
| Total current assets | 4,378 | 5,470 | |||||||||
| Other assets: | |||||||||||
| Restricted cash | 107 | 104 | |||||||||
| Regulatory assets | 4,011 | 3,771 | |||||||||
| Greenhouse gas allowances | 769 | 301 | |||||||||
| Nuclear decommissioning trusts | 882 | 872 | |||||||||
| Dedicated assets in support of certain benefit plans | 547 | 549 | |||||||||
| Deferred income taxes | 134 | 129 | |||||||||
| Right-of-use assets – operating leases | 711 | 723 | |||||||||
| Investment in Oncor Holdings | 14,809 | 14,266 | |||||||||
| Other investments | 2,405 | 2,244 | |||||||||
| Goodwill | 1,602 | 1,602 | |||||||||
| Other intangible assets | 305 | 318 | |||||||||
| Wildfire fund | 272 | 269 | |||||||||
| Other long-term assets | 1,857 | 1,603 | |||||||||
| Total other assets | 28,411 | 26,751 | |||||||||
| Property, plant and equipment, net | 57,684 | 54,960 | |||||||||
| Total assets | $ | 90,473 | $ | 87,181 | |||||||
(1) Derived from audited financial statements.
| SEMPRA | |||||||||||
| Table B (Continued) | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (Dollars in millions) | |||||||||||
| June 30, 2024 | December 31, 2023(1) | ||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term debt | $ | 2,197 | $ | 2,342 | |||||||
| Accounts payable – trade | 1,753 | 2,211 | |||||||||
| Accounts payable – other | 257 | 224 | |||||||||
| Due to unconsolidated affiliates | 3 | 5 | |||||||||
| Dividends and interest payable | 738 | 691 | |||||||||
| Accrued compensation and benefits | 378 | 526 | |||||||||
| Regulatory liabilities | 125 | 553 | |||||||||
| Current portion of long-term debt and finance leases | 1,711 | 975 | |||||||||
| Greenhouse gas obligations | 1,176 | 1,189 | |||||||||
| Other current liabilities | 1,202 | 1,374 | |||||||||
| Total current liabilities | 9,540 | 10,090 | |||||||||
| Long-term debt and finance leases | 28,966 | 27,759 | |||||||||
| Deferred credits and other liabilities: | |||||||||||
| Due to unconsolidated affiliates | 302 | 307 | |||||||||
| Regulatory liabilities | 3,959 | 3,739 | |||||||||
| Greenhouse gas obligations | 334 | — | |||||||||
| Pension and other postretirement benefit plan obligations, net of plan assets | 405 | 407 | |||||||||
| Deferred income taxes | 5,486 | 5,254 | |||||||||
| Asset retirement obligations | 3,689 | 3,642 | |||||||||
| Deferred credits and other | 2,373 | 2,329 | |||||||||
| Total deferred credits and other liabilities | 16,548 | 15,678 | |||||||||
| Equity: | |||||||||||
| Sempra shareholders’ equity | 29,479 | 28,675 | |||||||||
| Preferred stock of subsidiary | 20 | 20 | |||||||||
| Other noncontrolling interests | 5,920 | 4,959 | |||||||||
| Total equity | 35,419 | 33,654 | |||||||||
| Total liabilities and equity | $ | 90,473 | $ | 87,181 | |||||||
(1) Derived from audited financial statements.
| SEMPRA | |||||||||||
| Table C | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (Dollars in millions) | |||||||||||
| Six months ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net income | $ | 1,752 | $ | 1,908 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities | 540 | 467 | |||||||||
| Net change in working capital components | (99) | 1,474 | |||||||||
| Distributions from investments | 405 | 402 | |||||||||
| Changes in other noncurrent assets and liabilities, net | (78) | (514) | |||||||||
| Net cash provided by operating activities | 2,520 | 3,737 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Expenditures for property, plant and equipment | (3,830) | (4,282) | |||||||||
| Expenditures for investments | (387) | (184) | |||||||||
| Purchases of nuclear decommissioning and other trust assets | (401) | (322) | |||||||||
| Proceeds from sales of nuclear decommissioning and other trust assets | 442 | 356 | |||||||||
| Other | 8 | 11 | |||||||||
| Net cash used in investing activities | (4,168) | (4,421) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Common dividends paid | (741) | (734) | |||||||||
| Preferred dividends paid | (22) | (22) | |||||||||
| Issuances of common stock | 18 | — | |||||||||
| Repurchases of common stock | (40) | (31) | |||||||||
| Issuances of debt (maturities greater than 90 days) | 3,812 | 5,614 | |||||||||
| Payments on debt (maturities greater than 90 days) and finance leases | (1,197) | (3,392) | |||||||||
| Decrease in short-term debt, net | (817) | (388) | |||||||||
| Advances from unconsolidated affiliates | 45 | 14 | |||||||||
| Proceeds from sale of noncontrolling interests | — | 265 | |||||||||
| Distributions to noncontrolling interests | (203) | (252) | |||||||||
| Contributions from noncontrolling interests | 786 | 543 | |||||||||
| Settlement of cross-currency swaps | — | (99) | |||||||||
| Other | (23) | (61) | |||||||||
| Net cash provided by financing activities | 1,618 | 1,457 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (8) | 7 | |||||||||
| (Decrease) increase in cash, cash equivalents and restricted cash | (38) | 780 | |||||||||
| Cash, cash equivalents and restricted cash, January 1 | 389 | 462 | |||||||||
| Cash, cash equivalents and restricted cash, June 30 | $ | 351 | $ | 1,242 | |||||||
| SEMPRA | |||||||||||||||||||||||
| Table D | |||||||||||||||||||||||
| SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES AND INVESTMENTS | |||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Earnings (Losses) Attributable to Common Shares | |||||||||||||||||||||||
| Sempra California | $ | 316 | $ | 339 | $ | 898 | $ | 957 | |||||||||||||||
| Sempra Texas Utilities | 202 | 160 | 385 | 243 | |||||||||||||||||||
| Sempra Infrastructure | 291 | 208 | 422 | 523 | |||||||||||||||||||
| Parent and other | (96) | (104) | (191) | (151) | |||||||||||||||||||
| Total | $ | 713 | $ | 603 | $ | 1,514 | $ | 1,572 | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Capital Expenditures and Investments | |||||||||||||||||||||||
| Sempra California | $ | 1,069 | $ | 1,118 | $ | 2,212 | $ | 2,200 | |||||||||||||||
| Sempra Texas Utilities | 192 | 93 | 385 | 178 | |||||||||||||||||||
| Sempra Infrastructure | 829 | 1,340 | 1,619 | 2,084 | |||||||||||||||||||
| Parent and other | 1 | — | 1 | 4 | |||||||||||||||||||
| Total | $ | 2,091 | $ | 2,551 | $ | 4,217 | $ | 4,466 | |||||||||||||||
| SEMPRA | ||||||||||||||||||||||||||
| Table E | ||||||||||||||||||||||||||
| OTHER OPERATING STATISTICS | ||||||||||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| UTILITIES | ||||||||||||||||||||||||||
| Sempra California | ||||||||||||||||||||||||||
Gas sales (Bcf)(1) | 78 | 80 | 200 | 225 | ||||||||||||||||||||||
Transportation (Bcf)(1) | 120 | 124 | 262 | 273 | ||||||||||||||||||||||
Total deliveries (Bcf)(1) | 198 | 204 | 462 | 498 | ||||||||||||||||||||||
| Total gas customer meters (thousands) | 7,098 | 7,056 | ||||||||||||||||||||||||
Electric sales (millions of kWhs)(1) | 661 | 974 | 1,596 | 2,570 | ||||||||||||||||||||||
| Community Choice Aggregation and Direct Access (millions of kWhs) | 2,892 | 2,797 | 6,061 | 5,529 | ||||||||||||||||||||||
Total deliveries (millions of kWhs)(1) | 3,553 | 3,771 | 7,657 | 8,099 | ||||||||||||||||||||||
| Total electric customer meters (thousands) | 1,525 | 1,511 | ||||||||||||||||||||||||
Oncor(2) | ||||||||||||||||||||||||||
| Total deliveries (millions of kWhs) | 40,343 | 38,056 | 77,656 | 72,835 | ||||||||||||||||||||||
| Total electric customer meters (thousands) | 4,008 | 3,933 | ||||||||||||||||||||||||
| Ecogas México, S. de R.L. de C.V. | ||||||||||||||||||||||||||
| Natural gas sales (Bcf) | 1 | 1 | 2 | 2 | ||||||||||||||||||||||
| Natural gas customer meters (thousands) | 160 | 154 | ||||||||||||||||||||||||
| ENERGY-RELATED BUSINESSES | ||||||||||||||||||||||||||
| Sempra Infrastructure | ||||||||||||||||||||||||||
| Termoeléctrica de Mexicali (millions of kWhs) | 650 | 348 | 1,630 | 917 | ||||||||||||||||||||||
Wind and solar (millions of kWhs)(1) | 888 | 886 | 1,607 | 1,698 | ||||||||||||||||||||||
(1) Includes intercompany sales.
(2) Includes 100% of the electric deliveries and customer meters of Oncor, in which we hold an indirect 80.25% interest through our investment in Oncor Holdings.
Exhibit 99.2
| SEMPRA | ||||||||||||||||||||||||||||||||
| Table F | ||||||||||||||||||||||||||||||||
| STATEMENTS OF OPERATIONS DATA BY SEGMENT | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||
| Three months ended June 30, 2024 | Sempra California | Sempra Texas Utilities | Sempra Infrastructure | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||||
| Revenues | $ | 2,625 | $ | — | $ | 409 | $ | (23) | $ | 3,011 | ||||||||||||||||||||||
| Cost of sales and other expenses | (1,568) | (2) | (270) | 4 | (1,836) | |||||||||||||||||||||||||||
| Depreciation and amortization | (528) | — | (73) | (2) | (603) | |||||||||||||||||||||||||||
| Other income (expense), net | 36 | — | 2 | (8) | 30 | |||||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 565 | (2) | 68 | (29) | 602 | |||||||||||||||||||||||||||
| Net interest (expense) income | (204) | — | 7 | (97) | (294) | |||||||||||||||||||||||||||
| Income tax (expense) benefit | (44) | — | 133 | 41 | 130 | |||||||||||||||||||||||||||
| Equity earnings | — | 204 | 229 | — | 433 | |||||||||||||||||||||||||||
| Earnings attributable to noncontrolling interests | — | — | (146) | — | (146) | |||||||||||||||||||||||||||
| Preferred dividends | (1) | — | — | (11) | (12) | |||||||||||||||||||||||||||
| Earnings (losses) attributable to common shares | $ | 316 | $ | 202 | $ | 291 | $ | (96) | $ | 713 | ||||||||||||||||||||||
| Three months ended June 30, 2023 | Sempra California | Sempra Texas Utilities | Sempra Infrastructure | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||||
| Revenues | $ | 2,700 | $ | — | $ | 660 | $ | (25) | $ | 3,335 | ||||||||||||||||||||||
| Cost of sales and other expenses | (1,735) | (2) | (270) | 13 | (1,994) | |||||||||||||||||||||||||||
| Depreciation and amortization | (476) | — | (70) | (3) | (549) | |||||||||||||||||||||||||||
| Other income, net | 23 | — | 3 | 5 | 31 | |||||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 512 | (2) | 323 | (10) | 823 | |||||||||||||||||||||||||||
| Net interest expense | (189) | — | (19) | (92) | (300) | |||||||||||||||||||||||||||
| Income tax benefit (expense) | 17 | — | (201) | 9 | (175) | |||||||||||||||||||||||||||
| Equity earnings | — | 162 | 226 | — | 388 | |||||||||||||||||||||||||||
| Earnings attributable to noncontrolling interests | — | — | (121) | — | (121) | |||||||||||||||||||||||||||
| Preferred dividends | (1) | — | — | (11) | (12) | |||||||||||||||||||||||||||
| Earnings (losses) attributable to common shares | $ | 339 | $ | 160 | $ | 208 | $ | (104) | $ | 603 | ||||||||||||||||||||||
(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.
| SEMPRA | ||||||||||||||||||||||||||||||||
| Table F (Continued) | ||||||||||||||||||||||||||||||||
| STATEMENTS OF OPERATIONS DATA BY SEGMENT | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||
| Six months ended June 30, 2024 | Sempra California | Sempra Texas Utilities | Sempra Infrastructure | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||||
| Revenues | $ | 5,766 | $ | — | $ | 928 | $ | (43) | $ | 6,651 | ||||||||||||||||||||||
| Cost of sales and other expenses | (3,401) | (4) | (580) | 1 | (3,984) | |||||||||||||||||||||||||||
| Depreciation and amortization | (1,049) | — | (145) | (3) | (1,197) | |||||||||||||||||||||||||||
| Other income, net | 116 | — | 6 | 7 | 129 | |||||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 1,432 | (4) | 209 | (38) | 1,599 | |||||||||||||||||||||||||||
| Net interest (expense) income | (406) | — | 12 | (192) | (586) | |||||||||||||||||||||||||||
| Income tax (expense) benefit | (127) | — | 24 | 61 | (42) | |||||||||||||||||||||||||||
| Equity earnings | — | 389 | 392 | — | 781 | |||||||||||||||||||||||||||
| Earnings attributable to noncontrolling interests | — | — | (215) | — | (215) | |||||||||||||||||||||||||||
| Preferred dividends | (1) | — | — | (22) | (23) | |||||||||||||||||||||||||||
| Earnings (losses) attributable to common shares | $ | 898 | $ | 385 | $ | 422 | $ | (191) | $ | 1,514 | ||||||||||||||||||||||
| Six months ended June 30, 2023 | Sempra California | Sempra Texas Utilities | Sempra Infrastructure | Consolidating Adjustments, Parent & Other | Total | |||||||||||||||||||||||||||
| Revenues | $ | 8,115 | $ | — | $ | 1,856 | $ | (76) | $ | 9,895 | ||||||||||||||||||||||
| Cost of sales and other expenses | (5,801) | (3) | (625) | 44 | (6,385) | |||||||||||||||||||||||||||
| Depreciation and amortization | (944) | — | (139) | (5) | (1,088) | |||||||||||||||||||||||||||
| Other income, net | 43 | — | 13 | 16 | 72 | |||||||||||||||||||||||||||
Income (loss) before interest and tax(1) | 1,413 | (3) | 1,105 | (21) | 2,494 | |||||||||||||||||||||||||||
| Net interest expense | (371) | — | (99) | (172) | (642) | |||||||||||||||||||||||||||
| Income tax (expense) benefit | (84) | — | (531) | 64 | (551) | |||||||||||||||||||||||||||
| Equity earnings | — | 246 | 361 | — | 607 | |||||||||||||||||||||||||||
| Earnings attributable to noncontrolling interests | — | — | (313) | — | (313) | |||||||||||||||||||||||||||
| Preferred dividends | (1) | — | — | (22) | (23) | |||||||||||||||||||||||||||
| Earnings (losses) attributable to common shares | $ | 957 | $ | 243 | $ | 523 | $ | (151) | $ | 1,572 | ||||||||||||||||||||||
(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.