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San Diego Gas & Electric (SRE)

Sempra Energy's mission is to be North America's premier energy infrastructure company. With more than $60 billion in total assets at the end of 2019, the San Diego-based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' more than 18,000 employees deliver energy with purpose to over 35 million consumers. The company is focused on the most attractive markets in North America, including California, Texas, Mexico and the LNG export market. Sempra Energy has been consistently recognized for its leadership in sustainability, and diversity and inclusion, and is a member of the S&P 500 Utilities Index and the Dow Jones Utility Index. The company was also named one of the "World's Most Admired Companies" for 2020 by Fortune Magazine.

Company profile

Ticker
SRE
Exchange
Website
CEO
Jeffrey Martin
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Sempra Energy • Sempra Texas Intermediate Holding Company LLC • Southern California Gas Company ...
IRS number
951184800

SRE stock data

Calendar

4 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Dec 21 Sep 21 Jun 21 Mar 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 559M 559M 559M 559M 559M 559M
Cash burn (monthly) 104.67M 33.42M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 774.73M 247.35M n/a n/a n/a n/a
Cash remaining -215.73M 311.65M n/a n/a n/a n/a
Runway (months of cash) -2.1 9.3 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Financial report summary

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Risks
  • Sempra’s cash flows, ability to pay dividends and ability to meet its debt obligations largely depend on the performance of its subsidiaries and entities accounted for as equity method investments.
  • Sempra has substantial investments in and obligations arising from businesses it does not control or manage or in which it shares control.
  • Our business could be negatively affected by actions of activist shareholders.
  • Any impairment of our assets or investments could negatively impact us.
  • The economic interest, voting rights and market value of our outstanding common and preferred stock may be adversely affected by any additional equity securities we may issue.
  • Dividend requirements associated with our preferred stock subject us to risks.
  • Our common stock is listed on the Mexican Stock Exchange and registered with the CNBV, which subjects us to additional regulation and liability in Mexico.
  • Our businesses are subject to risks arising from their infrastructure and information systems.
  • Our businesses face risks related to the COVID-19 pandemic.
  • Severe weather, natural disasters and other similar events could materially adversely affect us.
  • We seek growth opportunities in the market organically and inorganically, including through the acquisition of, or partnerships in, operating companies.
  • Increasing activities and projects intended to advance new energy technologies could introduce new risks to our businesses.
  • The operation of our facilities depends on good labor relations with our employees.
  • In addition to general information and cyber risks that all large corporations face, we face evolving cybersecurity risks associated with protecting sensitive and confidential customer and employee information and energy grid, natural gas pipeline, storage and other infrastructure.
  • Our debt service obligations expose us to risks, and with respect to Sempra, could require additional equity securities issuances.
  • Credit rating agencies may downgrade our credit ratings or place those ratings on negative outlook.
  • We do not fully hedge our assets or contract positions against changes in commodity prices, and for those contract positions that are hedged, our hedging procedures may not mitigate our risk as expected.
  • Risk management procedures may not prevent or mitigate losses.
  • Market performance or changes in other assumptions could require unplanned contributions to pension and other postretirement benefit plans.
  • Our businesses require numerous permits, licenses, franchises and other approvals from various governmental agencies, and the failure to obtain or maintain any of them could materially adversely affect us.
  • Our businesses are subject to numerous governmental regulations and complex tax and accounting requirements and may be materially adversely affected by these regulations or requirements or any changes to them.
  • We may be materially adversely affected by the outcome of litigation or other proceedings in which we are involved.
  • Wildfires in California pose risks to Sempra California (particularly SDG&E) and Sempra.
  • The electricity industry is undergoing significant change, including increased deployment of distributed energy resources, technological advancements, and political and regulatory developments.
  • Natural gas and natural gas storage have increasingly been the subject of political and public scrutiny, including a desire by some to reduce or eliminate reliance on natural gas as an energy source.
  • SDG&E may incur significant costs and liabilities from its partial ownership of a nuclear facility being decommissioned.
  • SDG&E and SoCalGas are subject to extensive regulation by federal, state and local legislative and regulatory authorities, which may materially adversely affect Sempra, SDG&E and SoCalGas.
  • SoCalGas has incurred and may continue to incur significant costs, expenses and other liabilities related to the Leak, a substantial portion of which may not be recoverable through insurance.
  • Any failure by the CPUC to adequately reform SDG&E’s rate structure could have a material adverse effect on SDG&E and Sempra.
  • Certain ring-fencing measures, governance mechanisms and commitments limit our ability to influence the management, operations and policies of Oncor.
  • Changes in the regulation or operation of the electric utility industry and/or the ERCOT market could materially adversely affect Oncor, which could materially adversely affect us.
  • Oncor’s operations are capital-intensive, and it could have liquidity needs that necessitate additional investments.
  • Sempra could incur substantial tax liabilities if EFH’s 2016 spin-off of Vistra from EFH is deemed to be taxable.
  • Project development activities may not be successful, projects under construction may not be completed on schedule or within budget, and completed projects may not operate at expected levels, any of which could materially adversely affect us.
  • We are dependent on the equipment provided by third parties to operate Cameron LNG JV’s Phase 1 project and the failure of such equipment may adversely impact our business and performance.
  • Hydraulic fracturing is subject to political, economic and other uncertainties.
  • Fixed-price long-term contracts for services or commodities expose our businesses to inflationary pressures.
  • Increased competition could materially adversely affect us.
  • We may not be able to enter into, maintain, extend or replace long-term supply, sales or capacity agreements.
  • Our businesses depend on the performance of counterparties, and any performance failures by these counterparties could materially adversely affect us.
  • We rely on transportation assets and services, much of which we do not own or control, to deliver natural gas and electricity.
  • Our international businesses and operations expose us to foreign currency and inflation risks.
  • Our businesses are exposed to market risks, including fluctuations in commodity prices, that could materially adversely affect us.
  • Our international businesses and operations expose us to increased legal, regulatory, tax, economic, geopolitical and management oversight risks and challenges.
  • Our businesses are subject to various legal actions challenging our property rights and permits, and our properties in Mexico could be subject to expropriation by the Mexican government.
Management Discussion
  • ▪Impact of foreign currency and inflation rates on results of operations.
  • Our earnings and diluted EPS were impacted by variances discussed below in “Segment Results.”
  • This section presents earnings (losses) by Sempra segment, as well as Parent and other, and a related discussion of the changes in segment earnings (losses). Throughout the MD&A, our reference to earnings represents earnings attributable to common shares. Variance amounts presented are the after-tax earnings impact (based on applicable statutory tax rates), unless otherwise noted, and before NCI, where applicable.

Content analysis

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H.S. sophomore Avg
New words: anchor, attractive, bringing, capture, CCA, clarity, drew, GmbH, guarantor, hand, highly, implied, instance, labor, license, PA, reallocate, referenced, RWE, Southeast, SPA, topographic, upcoming, won, YTD
Removed: adjustment, Aggregation, allocable, automatic, calculate, Choice, closure, combine, cumulative, customary, estate, exclude, good, inception, LDA, leave, lessee, nonlease, perpetual, renew, reset, ROU, stay