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SRE San Diego Gas & Electric

Filed: 25 Feb 21, 11:08am

Exhibit 99.1

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NEWS RELEASE


Media Contact:Linda Pazin
Sempra Energy
(877) 340-8875
media@sempra.com
Financial Contact:Lindsay Gartner
Sempra Energy
(877) 736-7727
investor@sempra.com

SEMPRA ENERGY DELIVERS STRONG FULL-YEAR
2020 FINANCIAL AND OPERATIONAL RESULTS

Executing $32 Billion Five-Year Capital Plan
Increasing U.S. Utilities Capital in 2021-2022 by $1.1 Billion Over Prior Capital Plan
Progressing Sempra Infrastructure Partners; Expected to Create Additional Shareholder Value
Reaffirming Full-Year 2021 EPS Guidance Range
Raising Annualized Common Stock Dividend

SAN DIEGO, Feb. 25, 2021 – Sempra Energy (NYSE: SRE) today announced full-year 2020 earnings of $3.76 billion, or $12.88 per diluted share, compared to full-year 2019 earnings of $2.06 billion, or $7.29 per diluted share. On an adjusted basis, the company’s full-year 2020 earnings were $2.35 billion, or $8.03 per diluted share, compared to $1.91 billion, or $6.78 per diluted share, in 2019. In the fourth quarter of 2020, Sempra Energy reported earnings of $414 million, or $1.43 per diluted share, compared to $447 million, or $1.55 per diluted share, in the fourth quarter of 2019. On an adjusted basis, fourth quarter 2020 earnings were $553 million, or $1.90 per diluted share. There were no adjustments made to fourth quarter 2019 earnings.

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“Our strong financial results in 2020 reflect the continued growth in our business and are a credit to our talented workforce and investments in a high-performing culture,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “As the owner of one of the largest energy networks in North America, we have set a goal of being a leader in transitioning to a lower-carbon future by enabling the delivery of cleaner energy solutions in every market we serve. We envision critical new investments in energy infrastructure playing a vital role in reaching a net-zero energy future, promoting growth across all sectors of the economy and supporting a thriving energy industry.”

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 fourth quarter and full-year 2020 and 2019.
 Three months ended Years ended
December 31,December 31,
(Dollars, except EPS, and shares, in millions)2020201920202019
 (Unaudited)
GAAP Earnings$414 $447 $3,764 $2,055 
Gain on Sale of South American Businesses— — (1,747)— 
Impacts Associated with Aliso Canyon Litigation and Regulatory Matters139 — 233 — 
Losses from Investment in RBS Sempra Commodities LLP— — 100 — 
Tax Impacts from Holding the South American Businesses for Sale— — — (99)
Gain on Sale of Certain Renewables Assets— — — (45)
Adjusted Earnings(1)
$553 $447 $2,350 $1,911 
GAAP Diluted Weighted-Average Common Shares Outstanding290 289 292 282 
GAAP Earnings Per Diluted Common Share$1.43 $1.55 $12.88 $7.29 
Adjusted Diluted Weighted-Average Common Shares Outstanding(1)
290 289 306 282 
Adjusted Earnings per Diluted Common Share(1),(2)
$1.90 $1.55 $8.03 $6.78 
1)Represents a non-GAAP financial measure (GAAP represents accounting principles generally accepted in the United States of America). See Table A for information regarding non-GAAP financial measures.
2)To calculate Full-Year 2020 Adjusted Earnings-Per-Common-Share (EPS), preferred dividends of $104 million are added back to Adjusted Earnings because of the dilutive effect of Series A mandatory convertible preferred stock.

Declaring Dividends and Raising Annualized Common Stock Dividend
This week, Sempra Energy’s board of directors declared a $1.10 per share quarterly dividend on the company's common stock, which is payable April 15, 2021 to common stock shareholders of record as of March 25, 2021. The declared quarterly dividend represents an increase of the company's common stock dividend to $4.40 per share, on an annualized basis, from $4.18 per share in 2020. Over the past decade, we have increased our dividend at a compound annual growth rate of approximately 9% and today’s announcement demonstrates the company’s continued commitment to generating value for shareholders, while also reinvesting in the future growth of the business.
Sempra Energy's board of directors also declared a quarterly dividend of $1.6875 per share on the company's 6.75% Mandatory Convertible Preferred Stock, Series B. Additionally, the board of directors declared a semi-annual dividend of $24.375 per share on Sempra Energy's 4.875% Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, Series C. The preferred stock dividends will be payable April 15, 2021 to preferred stock shareholders of record as of April 1, 2021.

Continuing Strong Growth at U.S. Utilities
In combination, San Diego Gas & Electric Co. (SDG&E), Southern California Gas Co. (SoCalGas) and Oncor Electric Delivery Company LLC (Oncor) own and operate some of the largest energy networks in the United States and are expected to play a critical role in delivering lower-carbon energy to the communities they serve, while continuing to invest in safety advancements and clean technologies to help maintain resiliency and reliability. Our U.S. Utilities platform has continued to deliver stable cash flows, improved earnings visibility, and strong organic growth. In 2020, Sempra Energy deployed record capital of approximately $7 billion which was primarily centered on safety and reliability investments at SDG&E, SoCalGas and Oncor. In 2021 to 2025, Sempra Energy’s $32 billion capital plan is anchored by continued investments in the company’s U.S. Utilities platform with a focus on safety, reliability and decarbonizing the energy system. Compared to Sempra Energy’s prior capital plan, the company has increased U.S. Utilities capital in 2021-2022 by approximately $1.1 billion.
In Texas, Oncor has restored power and repaired damages following the unprecedented winter storm that impacted many residents in the state last week. While the severe weather has highlighted the importance of critical energy infrastructure, it also demonstrates the vital role Oncor continues to play in meeting the growing needs of Texas’ economy through the execution of its 2021-2025 capital plan. In 2020, Oncor connected approximately 77,000 new premises, exceeding its connections in 2019 by about 20%, which is the highest organic growth in Oncor’s history. Oncor also set a company record for new generation interconnection requests it received in 2020, driven by strong development activity in utility-scale generation, with a focus on the renewable and battery storage markets. Additionally, Oncor completed six major transmission projects in West Texas totaling approximately 260 circuit miles and approximately $300 million of investment.

Advancing Sempra Infrastructure Partners Transactions
Sempra Energy continues to make progress on a series of integrated transactions announced in December 2020, intended to simplify its energy infrastructure investments under a common platform – Sempra Infrastructure Partners. The company plans to complete the stock-for-stock exchange offer for the publicly traded shares of Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) and close the sale of a non-controlling interest in Sempra Infrastructure Partners in the second quarter of 2021. The exchange offer and sale of a non-controlling interest are advancing independently and are not contingent upon the timing of the other transaction.
“With increased scale and a strong growth pipeline, Sempra Infrastructure Partners will be well-positioned to help lead the global energy transition,” said Martin. “Moreover, we expect the transaction to support an investment grade balance sheet to support the company’s future growth.”
By simplifying the ownership structure of Sempra LNG and IEnova under Sempra Infrastructure Partners, the company is expected to create additional value for Sempra Energy investors.

Progressing LNG Infrastructure Investments
In November 2020, ECA Liquefaction (ECA LNG), a joint venture between Sempra LNG and IEnova, reached a final investment decision (FID) for the development, construction and operation of the ECA LNG Phase 1 natural gas liquefaction-export project in Baja California, Mexico. ECA LNG Phase 1 is the only liquefied natural gas (LNG) export project in the world to reach FID in 2020. Estimated capital expenditures for
ECA LNG Phase 1 are approximately $2 billion. Sempra expects to fund the project with a combination of equity contributions and debt. First LNG production from ECA LNG Phase 1 is expected in late 2024.
Additionally, an affiliate of Total SE has secured a 16.6% equity stake in ECA LNG Phase 1, while Sempra LNG and IEnova have each retained 41.7% ownership.

Building Sustainable Value
Sempra Energy’s strong results are underpinned by a commitment to environmental, social and governance matters. The company’s recent recognition includes:
Fortune Magazine’s “World’s Most Admired Companies” for 2021;
Dow Jones Sustainability World Index, as the only North American utility sector company on the list;
Dow Jones Sustainability North American Index;
Bloomberg Gender-Equality Index for 2021;
Human Rights Campaign’s “Best Place to Work for LGBTQ Equality;”
Center for Political Accountability-Zicklin Index – Trendsetter in political disclosure practices and accountability for 2020;
Chief Executive of the Year at S&P Global Platts’ Global Energy Awards;
Deal of the Year at S&P Global Platts’ Global Energy Awards for the divestiture of the company’s South American assets; and
National Association of Corporate Directors' NXT Award for excellence in diversity and inclusion.

Earnings Guidance
As a result of Sempra Energy’s continued financial execution, the company is reaffirming its full-year 2021 EPS guidance range of $7.50 to $8.10.

Non-GAAP Financial Measures
Non-GAAP financial measures include Sempra Energy’s adjusted earnings, adjusted EPS and adjusted diluted weighted-average common shares outstanding. See Table A for additional information regarding these non-GAAP financial measures.

Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log on to the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2095631.

About Sempra Energy
Sempra Energy's mission is to be North America's premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to
over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the biggest energy networks in North America serving some of the largest economies in the world. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture and advancing diversity and inclusion. Sempra is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the "World's Most Admired Companies" for 2021 by Fortune Magazine for the fourth consecutive year.
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This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. 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 other factors.

In this press release, forward-looking statements can be identified by words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “target,” “outlook,” “maintain,” “continue,” 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 described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company’s (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; moves to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to 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), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; 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; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC’s (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director; volatility in foreign currency exchange and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; 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 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 the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.





SEMPRA ENERGY
Table A
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts; shares in thousands)
Three months ended
December 31,
Years ended
December 31,
2020201920202019
(unaudited)
REVENUES
Utilities$2,826 $2,640 $10,025 $9,448 
Energy-related businesses345 303 1,345 1,381 
Total revenues3,171 2,943 11,370 10,829 
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas(343)(350)(925)(1,139)
Cost of electric fuel and purchased power(269)(259)(1,187)(1,188)
Energy-related businesses cost of sales(76)(79)(276)(344)
Operation and maintenance(1,174)(951)(3,940)(3,466)
Aliso Canyon litigation and regulatory matters(180)— (307)— 
Depreciation and amortization(424)(395)(1,666)(1,569)
Franchise fees and other taxes(146)(127)(543)(496)
Impairment losses— — (1)(43)
(Loss) gain on sale of assets(3)— (3)63 
Other income (expense), net115 (26)(48)77 
Interest income20 23 96 87 
Interest expense(263)(280)(1,081)(1,077)
Income from continuing operations before income taxes and equity earnings428 499 1,489 1,734 
Income tax expense(189)(165)(249)(315)
Equity earnings193 95 1,015 580 
Income from continuing operations, net of income tax432 429 2,255 1,999 
Income from discontinued operations, net of income tax— 71 1,850 363 
Net income432 500 4,105 2,362 
Losses (earnings) attributable to noncontrolling interests29 (18)(172)(164)
Preferred dividends(47)(35)(168)(142)
Preferred dividends of subsidiary— — (1)(1)
Earnings attributable to common shares$414 $447 $3,764 $2,055 
Basic earnings per common share (EPS):
Earnings$1.43 $1.57 $12.93 $7.40 
Weighted-average common shares outstanding289,009 284,649 291,077 277,904 
Diluted EPS:
Earnings$1.43 $1.55 $12.88 $7.29 
Weighted-average common shares outstanding290,216 288,767 292,252 282,033 






SEMPRA ENERGY
Table A (Continued)
RECONCILIATION OF SEMPRA ENERGY ADJUSTED EARNINGS TO SEMPRA ENERGY GAAP EARNINGS (Unaudited)
Sempra Energy Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2020 and 2019 as follows:
Three months ended December 31, 2020:
$(139) million from impacts associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at Southern California Gas Company (SoCalGas)
Year ended December 31, 2020:
$(233) million from impacts associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at SoCalGas
$(100) million equity losses at RBS Sempra Commodities LLP, which represent an estimate of our obligations to settle pending tax matters and related legal costs at our equity method investment at Parent and Other
$1,747 million gain on the sale of our South American businesses
Year ended December 31, 2019:
$45 million gain on the sale of certain Sempra Renewables assets
Associated with holding the South American businesses for sale:
$89 million income tax benefit 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 those businesses for sale and a change in the anticipated structure of the sale
$10 million income tax benefit to reduce a valuation allowance against certain net operating loss (NOL) carryforwards as a result of our decision to sell our South American businesses
Sempra Energy Adjusted Earnings, Weighted-Average Common Shares Outstanding – Adjusted and Adjusted EPS are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and/or nature of the excluded items, management believes that these non-GAAP financial measures provide a meaningful comparison of the performance of Sempra Energy’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 Energy GAAP Earnings, Weighted-Average Common Shares Outstanding – GAAP and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.



SEMPRA ENERGY
Table A (Continued)
RECONCILIATION OF ADJUSTED EARNINGS TO GAAP EARNINGS
(Dollars in millions, except per share amounts; shares in thousands)
Pretax amount
Income tax (benefit)
expense(1)
EarningsPretax amount
Income tax expense
  (benefit)(1)
Earnings
Three months ended December 31, 2020Three months ended December 31, 2019
(unaudited)
Sempra Energy GAAP Earnings$414 $447 
Excluded item:
Impacts associated with Aliso Canyon litigation and regulatory matters$180 $(41)139 $— $— — 
Sempra Energy Adjusted Earnings$553 $447 
Diluted EPS:
Weighted-average common shares outstanding, diluted – GAAP290,216 288,787 
Sempra Energy GAAP EPS$1.43 $1.55 
Sempra Energy Adjusted EPS$1.90 
Year ended December 31, 2020Year ended December 31, 2019
Sempra Energy GAAP Earnings$3,764 $2,055 
Excluded items:
Impacts associated with Aliso Canyon litigation and regulatory matters$307 $(74)233 $— $— — 
Losses from investment in RBS Sempra Commodities LLP100 — 100 — — — 
Gain on sale of South American businesses(2,899)1,152 (1,747)— — — 
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 and
structure of sale of discontinued operations
— — — — (89)(89)
Reduction in tax valuation allowance against certain NOL carryforwards— — — — (10)(10)
Sempra Energy Adjusted Earnings$2,350 $1,911 
Diluted EPS:
Sempra Energy GAAP Earnings$3,764 $2,055 
Weighted-average common shares outstanding, diluted – GAAP292,252 282,033 
Sempra Energy GAAP EPS$12.88 $7.29 
Sempra Energy Adjusted Earnings$2,350 $1,911 
Add back dividends for dilutive series A preferred stock104 — 
Sempra Energy Adjusted Earnings for Adjusted EPS$2,454 $1,911 
Weighted-average common shares outstanding, diluted – Adjusted(2)
305,669 282,033 
Sempra Energy Adjusted EPS$8.03 $6.78 
(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. We did not record an income tax benefit for the equity losses from our investment in RBS Sempra Commodities LLP because, even though a portion of the liabilities may be deductible under United Kingdom tax law, it is not probable that the deduction will reduce United Kingdom taxes.
(2)In the year ended December 31, 2020, because the assumed conversion of the series A preferred stock is dilutive for Adjusted Earnings, 13,417 series A preferred stock shares are added back to the denominator used to calculate Adjusted EPS.




SEMPRA ENERGY
Table A (Continued)
RECONCILIATION OF SEMPRA ENERGY 2020 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA ENERGY 2020 GAAP EPS GUIDANCE RANGE (Unaudited)

Sempra Energy 2020 Adjusted EPS Guidance Range of $7.20 to $7.80 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:
$(233) million from impacts associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at SoCalGas
$(100) million equity losses at RBS Sempra Commodities LLP, which represent an estimate of our obligations to settle pending tax matters and related legal costs at our equity method investment at Parent and Other
$1,747 million gain on the sale of our South American businesses

Sempra Energy 2020 Adjusted EPS Guidance Range is a non-GAAP financial measure. Because of the significance and/or nature of the excluded items, management believes that this non-GAAP financial measure provides a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Sempra Energy 2020 Adjusted EPS Guidance Range should not be considered an alternative to Sempra Energy 2020 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 Energy 2020 Adjusted EPS Guidance Range to Sempra Energy 2020 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 2020
Sempra Energy GAAP EPS Guidance Range(1)
$12.02 to$12.62 
Excluded items:
Impacts associated with Aliso Canyon litigation and regulatory matters0.80 0.80 
Losses from investment in RBS Sempra Commodities LLP0.34 0.34 
Gain on sale of South American businesses(5.96)(5.96)
Sempra Energy Adjusted EPS Guidance Range$7.20 to$7.80 
Weighted-average common shares outstanding, diluted (millions)(2)
293
(1)Sempra Energy's prior GAAP EPS Guidance Range for full-year 2020 has been updated to reflect additional impacts associated with the Aliso Canyon natural gas storage facility litigation and regulatory matters.
(2)Weighted-average common shares outstanding does not include the dilutive effect of mandatory convertible preferred stock, as they are assumed to be antidilutive for full-year 2020. If such mandatory convertible preferred stock were dilutive for the full year, the 2020 GAAP EPS Guidance Range would differ from the range presented above.






SEMPRA ENERGY
Table B
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
December 31,
20202019
ASSETS
Current assets:
Cash and cash equivalents$960 $108 
Restricted cash22 31 
Accounts receivable – trade, net1,578 1,261 
Accounts receivable – other, net403 455 
Due from unconsolidated affiliates20 32 
Income taxes receivable113 112 
Inventories308 277 
Regulatory assets190 222 
Greenhouse gas allowances553 72 
Assets held for sale in discontinued operations— 445 
Other current assets364 324 
Total current assets4,511 3,339 
Other assets:
Restricted cash
Due from unconsolidated affiliates780 742 
Regulatory assets1,822 1,930 
Nuclear decommissioning trusts1,019 1,082 
Investment in Oncor Holdings12,440 11,519 
Other investments1,388 2,103 
Goodwill1,602 1,602 
Other intangible assets202 213 
Dedicated assets in support of certain benefit plans512 488 
Insurance receivable for Aliso Canyon costs445 339 
Deferred income taxes136 155 
Greenhouse gas allowances101 470 
Right-of-use assets – operating leases543 591 
Wildfire fund363 392 
Assets held for sale in discontinued operations— 3,513 
Other long-term assets753 732 
Total other assets22,109 25,874 
Property, plant and equipment, net40,003 36,452 
Total assets$66,623 $65,665 





SEMPRA ENERGY
Table B (Continued)
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
December 31,
20202019
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt$885 $3,505 
Accounts payable – trade1,359 1,234 
Accounts payable – other154 179 
Due to unconsolidated affiliates45 
Dividends and interest payable551 515 
Accrued compensation and benefits446 476 
Regulatory liabilities140 319 
Current portion of long-term debt and finance leases1,540 1,526 
Reserve for Aliso Canyon costs150 
Greenhouse gas obligations553 72 
Liabilities held for sale in discontinued operations— 444 
Other current liabilities1,016 866 
Total current liabilities6,839 9,150 
Long-term debt and finance leases21,781 20,785 
Deferred credits and other liabilities:
Due to unconsolidated affiliates234 195 
Pension and other postretirement benefit plan obligations, net of plan assets1,059 1,067 
Deferred income taxes2,871 2,577 
Regulatory liabilities3,372 3,741 
Reserve for Aliso Canyon costs301 
Asset retirement obligations3,113 2,923 
Greenhouse gas obligations— 301 
Liabilities held for sale in discontinued operations— 1,052 
Deferred credits and other2,119 2,062 
Total deferred credits and other liabilities13,069 13,925 
Equity:
Sempra Energy shareholders’ equity23,373 19,929 
Preferred stock of subsidiary20 20 
Other noncontrolling interests1,541 1,856 
Total equity24,934 21,805 
Total liabilities and equity$66,623 $65,665 





SEMPRA ENERGY
Table C
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
Years ended December 31,
20202019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$4,105 $2,362 
Less: Income from discontinued operations, net of income tax(1,850)(363)
Income from continuing operations, net of income tax2,255 1,999 
Adjustments to reconcile net income to net cash provided by operating activities1,042 1,259 
Net change in other working capital components(550)(207)
Distributions from investments651 247 
Insurance receivable for Aliso Canyon costs(106)122 
Wildfire fund, current and noncurrent— (323)
Reserve for Aliso Canyon costs, noncurrent294 — 
Changes in other noncurrent assets and liabilities, net56 (399)
Net cash provided by continuing operations3,642 2,698 
Net cash (used in) provided by discontinued operations(1,051)390 
Net cash provided by operating activities2,591 3,088 
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment(4,676)(3,708)
Expenditures for investments and acquisitions(652)(1,797)
Proceeds from sale of assets19 899 
Distributions from investments761 
Purchases of nuclear decommissioning trust assets(1,439)(914)
Proceeds from sales of nuclear decommissioning trust assets1,439 914 
Advances to unconsolidated affiliates(92)(16)
Repayments of advances to unconsolidated affiliates
Intercompany activities with discontinued operations, net— 
Other15 21 
Net cash used in continuing operations(4,618)(4,581)
Net cash provided by (used in) discontinued operations5,171 (12)
Net cash provided by (used in) investing activities553 (4,593)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid(1,174)(993)
Preferred dividends paid(157)(142)
Issuances of preferred stock, net891 — 
Issuances of common stock, net11 1,830 
Repurchases of common stock(566)(26)
Issuances of debt (maturities greater than 90 days)6,051 4,296 
Payments on debt (maturities greater than 90 days) and finance leases(5,864)(3,667)
(Decrease) increase in short-term debt, net(1,759)656 
Advances from unconsolidated affiliates64 155 
Proceeds from sale of noncontrolling interests, net26 
Purchases of noncontrolling interests(248)(30)
Contributions from noncontrolling interests, net98 
Intercompany activities with discontinued operations, net— (266)
Other(50)(49)
Net cash (used in) provided by continuing operations(2,774)1,867 
Net cash provided by (used in) discontinued operations401 (392)
Net cash (used in) provided by financing activities(2,373)1,475 
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 operations768 (29)
Cash, cash equivalents and restricted cash, including discontinued operations, January 1217 246 
Cash, cash equivalents and restricted cash, including discontinued operations, December 31$985 $217 





SEMPRA ENERGY
Table D
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS
(Dollars in millions)
Three months ended
December 31,
Years ended
December 31,
2020201920202019
    (unaudited)
Earnings (Losses) Attributable to Common Shares
SDG&E$191 $185 $824 $767 
SoCalGas79 204 504 641 
Sempra Texas Utilities121 109 579 528 
Sempra Mexico(43)39 259 253 
Sempra LNG113 (19)320 (6)
Sempra Renewables— — — 59 
Parent and other(47)(132)(562)(515)
Discontinued operations— 61 1,840 328 
Total$414 $447 $3,764 $2,055 
Three months ended
December 31,
Years ended
December 31,
2020201920202019
    (unaudited)
Capital Expenditures, Investments and Acquisitions
SDG&E$619 $451 $1,942 $1,522 
SoCalGas498 420 1,843 1,439 
Sempra Texas Utilities423 347 648 1,685 
Sempra Mexico168 204 611 624 
Sempra LNG72 39 272 222 
Sempra Renewables— — — 
Parent and other12 11 
Total$1,786 $1,466 $5,328 $5,505 






SEMPRA ENERGY
Table D (Continued)
RECONCILIATION OF CAPITAL DEPLOYED
(Dollars in millions)
Years ended December 31,
20202019
(unaudited)
Sempra Energy
Expenditures for property, plant and equipment$4,676 $3,708 
Expenditures for investments and acquisitions652 1,797 
Total Capital Expenditures, Investments and Acquisitions (On Balance Sheet)5,328 5,505 
Exclude:
Capital contribution to Oncor for Oncor's acquisition of 100% of InfraREIT and Sempra's acquisition of a 50%
indirect interest in Sharyland
— (1,162)
Acquisition of 1% interest in Texas Transmission Holdings Corporation (TTHC) from Hunt(16)— 
Total Capital Expenditures and Investments (On Balance Sheet)A5,312 4,343 
Oncor Electric Delivery Company LLC
Capital expenditures (100%)2,540 2,097 
Total Capital Expenditures (Off Balance Sheet)2,540 2,097 
Sharyland Utilities
Capital expenditures (100%)
Total Capital Expenditures (Off Balance Sheet)
Sempra Texas Utilities - Proportionate Ownership Share of Unconsolidated Entities
80.25% of Oncor Electric Delivery Company LLC capital expenditures2,038 1,683 
50% of Sharyland Utilities capital expenditures
Less:
Sempra Texas Utilities investments and acquisitions (On Balance Sheet)(648)(1,685)
Add Back:
Sempra Texas Utilities acquisitions (On Balance Sheet)(1)
16 1,162 
Capital Expenditures, Investments and Acquisitions - Sempra Texas Utilities (Off Balance Sheet)1,409 1,161 
Capital Expenditures - Unconsolidated Joint Ventures at Sempra LNG and Sempra Mexico (Off Balance Sheet)(2)
228 446 
Total Capital Expenditures, Investments and Acquisitions of Unconsolidated Entities (Off Balance Sheet)B1,637 1,607 
Total Capital DeployedA+B$6,949 $5,950 
(1)Includes Sempra Energy's acquisition of 1% interest in TTHC from Hunt in 2020 and Sempra Energy's capital contribution to Oncor for Oncor's acquisition of 100% of InfraREIT and Sempra Energy's acquisition of a 50% indirect interest in Sharyland in 2019.
(2)Amounts are net of capital contributions from Sempra Energy. 2020 and 2019 includes $146 and $337, respectively, of capex funded by Sempra LNG's unconsolidated JV (Cameron LNG JV) and $82 and $109, respectively, funded by Sempra Mexico's unconsolidated JVs.





SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS
Three months ended December 31,Years ended or at December 31,
2020201920202019
(unaudited)
UTILITIES
SDG&E and SoCalGas
Gas sales (Bcf)(1)
98 103 355 374 
Transportation (Bcf)(1)
161 149 612 573 
Total deliveries (Bcf)(1)
259 252 967 947 
Total gas customer meters (thousands)6,967 6,924 
SDG&E
Electric sales (millions of kWhs)(1)
3,751 3,601 14,398 14,397 
Direct Access and Community Choice Aggregation (millions of kWhs)952 909 3,482 3,549 
Total deliveries (millions of kWhs)(1)
4,703 4,510 17,880 17,946 
Total electric customer meters (thousands)1,483 1,471 
Oncor(2)
Total deliveries (millions of kWhs)30,615 30,916 131,157 133,378 
Total electric customer meters (thousands)3,762 3,685 
Ecogas
Natural gas sales (Bcf)
Natural gas customer meters (thousands)136 132 
ENERGY-RELATED BUSINESSES
Power generated and sold
Sempra Mexico
Termoeléctrica de Mexicali (TdM) (millions of kWhs)729 1,011 2,905 3,873 
Wind and solar (millions of kWhs)(3)
420 333 1,724 1,442 
(1)Includes intercompany sales.
(2)Includes 100% of the electric deliveries and customer meters of Oncor Electric Delivery Company LLC (Oncor), in which we hold an indirect 80.25% interest through our investment in Oncor Electric Delivery Holdings Company LLC.
(3)Includes 50% of the total power generated and sold at the Energía Sierra Juárez wind power generation facility, in which Sempra Energy has a 50% ownership interest.