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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):November 5, 2020


SEMPRA ENERGY
(Exact name of registrant as specified in its charter)


California1-1420133-0732627
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)

488 8th Avenue, San Diego, California
92101
(Address of principal executive offices)(Zip Code)


Registrant's telephone number, including area code
(619) 696-2000


(Former name or former address, if changed since last report.)





Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Sempra Energy Common Stock, without par valueSRE New York Stock Exchange
Sempra Energy 6% Mandatory Convertible Preferred Stock, Series A, $100 liquidation preferenceSREPRANew York Stock Exchange
Sempra Energy 6.75% Mandatory Convertible Preferred Stock, Series B, $100 liquidation preferenceSREPRBNew York Stock Exchange
Sempra Energy 5.75% Junior Subordinated Notes Due 2079, $25 par valueSREANew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02 Results of Operations and Financial Condition.

The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On November 5, 2020, Sempra Energy issued a press release announcing consolidated earnings of $351 million, or $1.21 per diluted share of common stock, for the third quarter of 2020. The press release has been posted on Sempra Energy’s website (www.sempra.com) and a copy is attached as Exhibit 99.1.

Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Statement of Operations Data by Segment for the three months and nine months ended September 30, 2020 and 2019. A copy of such information is attached as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit NumberExhibit Description
99.1
99.2
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


SEMPRA ENERGY,
(Registrant)
Date: November 5, 2020By: /s/ Peter R. Wall
Peter R. Wall
Senior Vice President, Controller and Chief Accounting Officer






Document

Exhibit 99.1

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 REPORTS
THIRD-QUARTER 2020 EARNINGS RESULTS

GAAP and Adjusted EPS Guidance Expected at High End of 2020 Range
Cameron LNG Phase 1 Achieves Full Commercial Operations
Oncor Announces Higher Five-Year Capital Plan of $12.2 Billion
Sempra Recognized Nationally for High-Performance Culture

SAN DIEGO, Nov. 5, 2020 – Sempra Energy (NYSE: SRE) today reported third-quarter 2020 earnings of $351 million, or $1.21 per diluted share, compared to third-quarter 2019 earnings of $813 million, or $2.84 per diluted share. On an adjusted basis, the company’s third-quarter 2020 earnings were $380 million, or $1.31 per diluted share, compared to $425 million, or $1.50 per diluted share, in the third quarter of 2019. Sempra Energy's earnings for the first nine months of 2020 were $3.35 billion, or $11.43 per diluted share, compared with earnings of $1.61 billion, or $5.74 per diluted share, in the first nine months of 2019. Adjusted earnings for the first nine months of 2020 were $1.8 billion, or $6.10 per diluted share, compared to $1.46 billion, or $5.23 per diluted share, in the first nine months of 2019.
















“We are excited to advance our leadership position in the most attractive markets in North America – California, Texas, Mexico and the LNG export market – with an unrelenting commitment to safety and operational excellence. Our investments in critical new energy infrastructure support economic prosperity, community wellbeing and the energy transition,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “Our strategy of investing in a high-growth infrastructure platform supports long-term, stable cash flows, attractive economic returns and improved earnings visibility.”
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 third quarter and first nine months of 2020 and 2019.
Three months ended September 30,Nine months ended
September 30,
(Dollars, except EPS, and shares, in millions)2020201920202019
(Unaudited)
GAAP Earnings$351 $813 $3,350 $1,608 
Loss (Gain) on Sale of South American Businesses— (1,747)— 
Losses from Investment in RBS Sempra Commodities LLP— — 100 — 
Impacts Associated with Aliso Canyon Litigation and Regulatory Matters22 — 94 — 
Tax Impacts from Holding the South American Businesses for Sale
— (192)— (99)
Gain on Sale of U.S. Wind Assets— — — (45)
SDG&E Retroactive Impact of 2019 GRC FD for first half of 2019— (66)
SoCalGas Retroactive Impact of 2019 GRC FD for first half of 2019— (130)
Adjusted Earnings(1)
$380 $425 $1,797 $1,464 
GAAP Diluted Weighted-Average Common Shares Outstanding291 296 293 280 
GAAP Earnings Per Diluted Common Share(2)
$1.21 $2.84 $11.43 $5.74 
Adjusted Diluted Weighted-Average Common Shares Outstanding(1)
291 283 307 280 
Adjusted Earnings Per Diluted Common Share(1),(3)
$1.31 $1.50 $6.10 $5.23 
1) Represents a non-GAAP financial measure. See Table A for information regarding non-GAAP financial measures.
2) To calculate Q3-2019 GAAP EPS, preferred dividends of $26 million are added back to GAAP Earnings because of the dilutive effect of Series A mandatory convertible preferred stock.
3) To calculate YTD-2020 Adjusted EPS, preferred dividends of $78 million are added back to Adjusted Earnings because of the dilutive effect of Series A mandatory convertible preferred stock.

Advancing Critical Energy Infrastructure in North America
In August, Phase 1 of the Cameron LNG export facility in Hackberry, Louisiana, reached full commercial operations under Cameron LNG’s tolling agreements. This marked the start of full run-rate earnings and cash flows. Sempra Energy’s share of full run-rate earnings from the Phase 1 project is expected to be between $400 million and $450 million annually, with no commodity or volumetric exposure. Due to the structure of the tolling agreements at Cameron LNG, Sempra Energy does not expect any earnings impact as a result of the recent outages due to Hurricanes Laura and Delta on the U.S. Gulf Coast.
Sempra Energy continues to work closely with local authorities as well as the highest levels of the Mexican government to advance the export permit process for Energía Costa Azul (ECA) LNG Phase 1. The company expects to reach a final investment decision in the fourth quarter of 2020.



Phase 1 of ECA LNG’s project is planned to be built and operated by Sempra LNG and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), Sempra Energy’s subsidiary in Mexico, as a single-train liquefaction facility. Last year, ECA LNG received authorization from the U.S. Department of Energy to export U.S.-produced natural gas to Mexico and to re-export liquefied natural gas (LNG) to countries that do not have a free-trade agreement with the U.S.
ECA LNG has successfully secured definitive 20-year sale-and-purchase agreements with Mitsui & Co., Ltd. and an affiliate of Total SE for the purchase of approximately 2.5 Mtpa of LNG from Phase 1 of the project.
In another development, the U.S. Department of Energy extended the terms of the export authorizations for Phase 1 of the proposed Port Arthur LNG export project through Dec. 31, 2050.
Additionally, IEnova is advancing construction of its Gulf of Mexico network of fuel terminals. All three terminals are backed by take-or-pay contracts with Valero Energy Corp. and, once completed, should contribute nearly 3.4 million barrels of combined refined products storage capacity, while improving Mexico’s energy security. Notably, the Veracruz terminal is situated in the largest Mexican port on the Gulf Coast and is expected to be one of the largest terminals in Mexico.

Executing Capital Plans and Driving Sustainability at U.S. Utilities
Oncor Electric Delivery Company LLC (Oncor) today announced its 2021-2025 capital plan of $12.2 billion. This is a $300 million increase over Oncor’s previous 2020-2024 capital plan and is a result of new growth capital required across the system, increased maintenance on the transmission system, including investments to enhance the safety and reliability of service, and continued investment in technology and innovation. Additionally, Oncor recently issued its inaugural sustainable bond with proceeds expected to finance or refinance expenditures with minority- and women-owned business suppliers.
San Diego Gas & Electric Co. (SDG&E) and Southern California Gas Co. (SoCalGas) continue to execute on their record five-year capital investment plans. These plans are centered on enhancing safety, improving system reliability, and reducing energy-related emissions. Further, SDG&E has announced a new sustainability strategy that includes a commitment to place two green hydrogen projects into service by 2022, aiming to offer long-duration energy storage, increased system resiliency and reduced carbon intensity. In addition, SoCalGas has announced its participation in three research and development projects that are designed to advance fuel cell technology for trucking and transit and near-zero emissions natural gas technology for rail locomotives.

Investing in a High-Performing Culture
Sempra Energy is committed to creating long-term value by managing environmental, social and governance risks and opportunities. The company has a long-standing history of prioritizing diversity and inclusion to advance its high-performance culture and is continuing to build upon those efforts.
Last month, Sempra Energy received three awards recognizing its leadership position in diversity, inclusion and sustainability. Forbes and JUST Capital named Sempra Energy to the Forbes JUST 100 list, which is intended to recognize companies that are doing right by all their stakeholders, including employees, customers, communities, the environment and shareholders.




Additionally, Sempra Energy received the National Association of Corporate Directors' NXT Award, recognizing boards for their excellence in utilizing diversity and inclusion as a strategy for building long-term value for their companies. The National Organization on Disability also recently recognized Sempra Energy as a 2020 Leading Disability Employer for adopting exemplary employment practices for people with disabilities.

Earnings Guidance
As a result of the company’s strong execution and financial results, Sempra Energy is reaffirming and guiding to the high end of both its full-year 2020 GAAP earnings-per-common-share (EPS) guidance range of $12.50 to $13.10 and adjusted EPS guidance range of $7.20 to $7.80. Additionally, Sempra Energy 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 and adjusted EPS for the third quarters and first nine months of 2020 and 2019, adjusted diluted weighted-average common shares outstanding for the first nine months of 2020 and third quarter of 2019, and full-year 2020 adjusted EPS guidance range. 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 8857186.

About Sempra Energy
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.

###

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 the 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," "target," "pursue," "outlook," "maintain," or similar expressions, or when we discuss our guidance, strategy, goals, vision, mission, opportunities, projections or intentions.

Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risk that we may be found liable for damages regardless of fault and the risk that we may not be able to



recover any such costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances 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 operate or 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 on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts once completed, and (iv) obtaining the consent of partners; the impact of the COVID-19 pandemic on our (i) ability to commence and complete capital and other projects and obtain regulatory approvals, (ii) supply chain and current and prospective counterparties, contractors, customers, employees and partners, (iii) liquidity, resulting from bill payment challenges experienced by our customers, including in connection with a CPUC-ordered suspension of service disconnections, decreased stability and accessibility of the capital markets and other factors, and (iv) ability to sustain operations and satisfy compliance requirements due to social distancing measures or if employee absenteeism were to increase significantly; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow at favorable interest rates; moves to reduce or eliminate reliance on natural gas and the impact of the extreme volatility of oil prices on our businesses and development projects; weather, natural disasters, accidents, equipment failures, 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, the failure of foreign governments and state-owned entities to honor the terms of 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, Community Choice Aggregation or other forms of distributed or local power generation, 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, interest and inflation rates and commodity prices and our ability to effectively hedge the risk of such volatility; changes in tax and trade policies, laws and regulations, including tariffs and revisions to or replacement of international trade agreements, such as the United States-Mexico-Canada Agreement, that may increase our costs 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 Southern California Gas Company, 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
September 30,
Nine months ended
September 30,
(Dollars in millions, except per share amounts; shares in thousands)2020201920202019
(unaudited)
REVENUES
Utilities$2,301 $2,398 $7,199 $6,808 
Energy-related businesses343 360 1,000 1,078 
Total revenues2,644 2,758 8,199 7,886 
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas(114)(122)(582)(789)
Cost of electric fuel and purchased power(429)(410)(918)(929)
Energy-related businesses cost of sales(90)(94)(200)(265)
Operation and maintenance(1,044)(845)(2,893)(2,515)
Depreciation and amortization(418)(402)(1,242)(1,174)
Franchise fees and other taxes(139)(127)(397)(369)
Impairment losses(1)(43)(1)(43)
(Loss) gain on sale of assets— (3)— 63 
Other income (expense), net29 (7)(163)103 
Interest income27 22 76 64 
Interest expense(264)(279)(818)(797)
Income from continuing operations before income taxes and equity earnings201 448 1,061 1,235 
Income tax expense(99)(61)(60)(150)
Equity earnings326 266 822 485 
Income from continuing operations, net of income tax428 653 1,823 1,570 
(Loss) income from discontinued operations, net of income tax(7)256 1,850 292 
Net income421 909 3,673 1,862 
Earnings attributable to noncontrolling interests(22)(60)(201)(146)
Preferred dividends(48)(36)(121)(107)
Preferred dividends of subsidiary— — (1)(1)
Earnings attributable to common shares$351 $813 $3,350 $1,608 
Basic earnings per common share (EPS):
Earnings$1.21 $2.93 $11.48 $5.83 
Weighted-average common shares outstanding289,490 277,360 291,771 275,684 
Diluted EPS:
Earnings$1.21 $2.84 $11.43 $5.74 
Weighted-average common shares outstanding290,582 295,789 292,935 279,809 




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 September 30, 2020:
$(22) million from impacts associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at Southern California Gas Company (SoCalGas)
$(7) million reduction to the gain on sale of our Chilean businesses as a result of post-closing adjustments
Three months ended September 30, 2019:
$196 million incremental revenue increases for the first six months of 2019 from the retroactive application of the final decision in the 2019 General Rate Case (GRC FD) at the California Utilities
Associated with holding the South American businesses for sale:
$192 million income tax benefit associated with outside basis differences in our South American businesses primarily related to a change in the anticipated structure of the sale of those businesses
Nine months ended September 30, 2020:
$(94) 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
Nine months ended September 30, 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)
Pretax amount
Income tax (benefit) expense(1)
EarningsPretax amount
Income tax expense
(benefit)(1)
Earnings
(Dollars in millions, except per share amounts; shares in thousands)Three months ended September 30, 2020Three months ended September 30, 2019
Sempra Energy GAAP Earnings
$351 $813 
Excluded items:
Impacts associated with Aliso Canyon litigation and regulatory matters
$27 $(5)22 $— $— — 
Reduction to gain on sale of Chilean businesses 16 (9)— — — 
SDG&E retroactive impact of 2019 GRC FD for first half of 2019— — — (92)26 (66)
SoCalGas retroactive impact of 2019 GRC FD for first half of 2019— — — (181)51 (130)
Associated with holding the South American businesses for sale:
Change in indefinite reinvestment assertion of basis differences
 and structure of sale of discontinued operations
— — — — (192)(192)
Sempra Energy Adjusted Earnings$380 $425 
Diluted EPS:
Sempra Energy GAAP Earnings
$351 $813 
Add back dividends for dilutive series A preferred stock
— 26 
Sempra Energy GAAP Earnings for GAAP EPS
$351 $839 
Weighted-average common shares outstanding, diluted – GAAP
290,582 295,789 
Sempra Energy GAAP EPS$1.21 $2.84 
Sempra Energy Adjusted Earnings for Adjusted EPS
$380 $425 
Weighted-average common shares outstanding, diluted – Adjusted(2)
290,582 282,551 
Sempra Energy Adjusted EPS
$1.31 $1.50 
Nine months ended September 30, 2020Nine months ended September 30, 2019
Sempra Energy GAAP Earnings$3,350 $1,608 
Excluded items:
Impacts associated with Aliso Canyon litigation and regulatory matters$127 $(33)94 $— $— — 
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$1,797 $1,464 
Diluted EPS:
Sempra Energy GAAP Earnings
$3,350 $1,608 
Weighted-average common shares outstanding, diluted – GAAP
292,935 279,809 
Sempra Energy GAAP EPS$11.43 $5.74 
Sempra Energy Adjusted Earnings
$1,797 $1,464 
Add back dividends for dilutive series A preferred stock
78 — 
Sempra Energy Adjusted Earnings for Adjusted EPS
$1,875 $1,464 
Weighted-average common shares outstanding, diluted – Adjusted(3)
307,405 279,809 
Sempra Energy Adjusted EPS
$6.10 $5.23 

(1)     Except for adjustments that are solely income tax and tax related to outside basis differences, income taxes 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 three months ended September 30, 2019, because the assumed conversion of the series A preferred stock is antidilutive for Adjusted Earnings, 13,238 series A preferred stock shares are excluded from the denominator used to calculate Adjusted EPS.
(3)     In the nine months ended September 30, 2020, because the assumed conversion of the series A preferred stock is dilutive for Adjusted Earnings, 14,470 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:
$(94) 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 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 should not be considered an alternative to Sempra Energy 2020 GAAP EPS Guidance. 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.
Full-Year 2020
Sempra Energy GAAP EPS Guidance Range(1)
$12.50 to$13.10 
Excluded items:
Impacts associated with Aliso Canyon litigation and regulatory matters0.32 0.32 
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, and post-closing adjustments with respect to the sale of our Chilean businesses.
(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
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)September 30,
2020
December 31,
2019(1)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$3,515 $108 
Restricted cash28 31 
Accounts receivable – trade, net1,067 1,261 
Accounts receivable – other, net418 455 
Due from unconsolidated affiliates46 32 
Income taxes receivable152 112 
Inventories309 277 
Regulatory assets386 222 
Greenhouse gas allowances66 72 
Assets held for sale in discontinued operations— 445 
Other current assets407 324 
Total current assets6,394 3,339 
Other assets:
Restricted cash
Due from unconsolidated affiliates617 742 
Regulatory assets1,740 1,930 
Nuclear decommissioning trusts1,057 1,082 
Investment in Oncor Holdings11,962 11,519 
Other investments1,455 2,103 
Goodwill1,602 1,602 
Other intangible assets205 213 
Dedicated assets in support of certain benefit plans469 488 
Insurance receivable for Aliso Canyon costs504 339 
Deferred income taxes199 155 
Greenhouse gas allowances598 470 
Right-of-use assets – operating leases563 591 
Wildfire fund371 392 
Assets held for sale in discontinued operations— 3,513 
Other long-term assets699 732 
Total other assets22,044 25,874 
Property, plant and equipment, net38,784 36,452 
Total assets$67,222 $65,665 
(1)    Derived from audited financial statements.




SEMPRA ENERGY
Table B (Continued)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)September 30,
2020
December 31,
2019(1)
(unaudited)
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt$772 $3,505 
Accounts payable – trade1,129 1,234 
Accounts payable – other163 179 
Due to unconsolidated affiliates
Dividends and interest payable563 515 
Accrued compensation and benefits412 476 
Regulatory liabilities 373 319 
Current portion of long-term debt and finance leases2,890 1,526 
Reserve for Aliso Canyon costs268 
Greenhouse gas obligations66 72 
Liabilities held for sale in discontinued operations— 444 
Other current liabilities993 866 
Total current liabilities7,635 9,150 
Long-term debt and finance leases21,770 20,785 
Deferred credits and other liabilities:
Due to unconsolidated affiliates 271 195 
Pension and other postretirement benefit plan obligations, net of plan assets999 1,067 
Deferred income taxes2,696 2,577 
Deferred investment tax credits22 21 
Regulatory liabilities 3,410 3,741 
Asset retirement obligations2,961 2,923 
Greenhouse gas obligations456 301 
Liabilities held for sale in discontinued operations— 1,052 
Deferred credits and other2,146 2,048 
Total deferred credits and other liabilities12,961 13,925 
Equity:
Sempra Energy shareholders’ equity23,228 19,929 
Preferred stock of subsidiary20 20 
Other noncontrolling interests1,608 1,856 
Total equity24,856 21,805 
Total liabilities and equity$67,222 $65,665 
(1)     Derived from audited financial statements.




SEMPRA ENERGY
Table C
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30,
(Dollars in millions)20202019
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $3,673 $1,862 
Less: Income from discontinued operations, net of income tax(1,850)(292)
Income from continuing operations, net of income tax1,823 1,570 
Adjustments to reconcile net income to net cash provided by operating activities692 741 
Intercompany activities with discontinued operations, net— 184 
Net change in other working capital components(137)(200)
Distributions from investments429 163 
Insurance receivable for Aliso Canyon costs(165)107 
Wildfire fund, current and noncurrent— (323)
Changes in other noncurrent assets and liabilities, net38 (413)
Net cash provided by continuing operations2,680 1,829 
Net cash (used in) provided by discontinued operations(1,051)289 
Net cash provided by operating activities1,629 2,118 
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment(3,313)(2,590)
Expenditures for investments and acquisitions(229)(1,449)
Proceeds from sale of assets22 899 
Distributions from investments761 
Purchases of nuclear decommissioning trust assets(1,091)(728)
Proceeds from sales of nuclear decommissioning trust assets1,091 728 
Advances to unconsolidated affiliates(32)(16)
Repayments of advances to unconsolidated affiliates12 
Intercompany activities with discontinued operations, net— (257)
Other13 16 
Net cash used in continuing operations(2,771)(3,376)
Net cash provided by (used in) discontinued operations5,186 (63)
Net cash provided by (used in) investing activities2,415 (3,439)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid(872)(734)
Preferred dividends paid(107)(107)
Issuances of preferred stock890 — 
Issuances of common stock10 757 
Repurchases of common stock(565)(23)
Issuances of debt (maturities greater than 90 days)5,934 3,269 
Payments on debt (maturities greater than 90 days) and finance leases (4,387)(2,500)
(Decrease) increase in short-term debt, net(1,871)888 
Advances from unconsolidated affiliates 64 — 
Purchases of noncontrolling interests(178)(30)
Contributions from noncontrolling interests, net of distributions— 171 
Intercompany activities with discontinued operations, net— (128)
Other(29)(37)
Net cash (used in) provided by continuing operations(1,111)1,526 
Net cash provided by discontinued operations401 49 
Net cash (used in) provided by financing activities(710)1,575 
Effect of exchange rate changes in continuing operations(2)— 
Effect of exchange rate changes in discontinued operations(3)(3)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(5)(3)
Increase in cash, cash equivalents and restricted cash, including discontinued operations3,329 251 
Cash, cash equivalents and restricted cash, including discontinued operations, January 1217 246 
Cash, cash equivalents and restricted cash, including discontinued operations, September 30$3,546 $497 





SEMPRA ENERGY
Table D
SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS
Three months ended September 30,Nine months ended September 30,
(Dollars in millions)2020201920202019
(unaudited)
Earnings (Losses) Attributable to Common Shares
SDG&E$178 $263 $633 $582 
SoCalGas(24)143 425 437 
Sempra Texas Utilities209 212 458 419 
Sempra Mexico50 84 302 214 
Sempra Renewables— — — 59 
Sempra LNG71 207 13 
Parent and other(126)(139)(515)(383)
Discontinued operations(7)248 1,840 267 
Total$351 $813 $3,350 $1,608 
Three months ended September 30,Nine months ended September 30,
(Dollars in millions)2020201920202019
(unaudited)
Capital Expenditures, Investments and Acquisitions
SDG&E$473 $363 $1,323 $1,071 
SoCalGas460 360 1,345 1,019 
Sempra Texas Utilities86 56 225 1,338 
Sempra Mexico122 178 443 420 
Sempra Renewables— — — 
Sempra LNG63 37 200 183 
Parent and other— 
Total$1,204 $997 $3,542 $4,039 







SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS (Unaudited)
Three months ended September 30,Nine months ended September 30,
2020201920202019
UTILITIES
SDG&E and SoCalGas
Gas sales (Bcf)(1)
57 57 257 271 
Transportation (Bcf)(1)
174 156 451 424 
Total deliveries (Bcf)(1)
231 213 708 695 
Total gas customer meters (thousands)6,953 6,912 
SDG&E
Electric sales (millions of kWhs)(1)
4,063 3,970 10,647 10,796 
Direct Access and Community Choice Aggregation (millions of kWhs)914 952 2,530 2,640 
Total deliveries (millions of kWhs)(1)
4,977 4,922 13,177 13,436 
Total electric customer meters (thousands)1,480 1,468 
Oncor(2)
Total deliveries (millions of kWhs)39,084 40,834 100,542 102,462 
Total electric customer meters (thousands)3,744 3,673 
Ecogas
Natural gas sales (Bcf)— — 
Natural gas customer meters (thousands)137 129 
ENERGY-RELATED BUSINESSES
Power generated and sold
Sempra Mexico
Termoeléctrica de Mexicali (TdM) (millions of kWhs)893 1,032 2,176 2,862 
Wind and solar (millions of kWhs)(3)
432 419 1,304 1,109 
(1)     Include 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.

Document
Exhibit 99.2


         SEMPRA ENERGY
           Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
Three months ended September 30, 2020
(Dollars in millions)SDG&ESoCalGasSempra Texas UtilitiesSempra MexicoSempra LNGConsolidating Adjustments, Parent & OtherTotal
Revenues$1,472 $842 $— $351 $63 $(84)$2,644 
Cost of sales and other expenses(957)(661)— (160)(105)66 (1,817)
Depreciation and amortization(200)(165)— (47)(2)(4)(418)
Other (expense) income, net(2)(7)— 36 — 29 
Income (loss) before interest and tax(1)
313 — 180 (44)(20)438 
Net interest (expense) income(102)(39)— (17)17 (96)(237)
Income tax (expense) benefit(33)— (92)(18)38 (99)
Equity earnings, net— — 209 116 — 326 
Earnings attributable to noncontrolling interests— — — (22)— — (22)
Preferred dividends— — — — — (48)(48)
Earnings (losses) from continuing operations$178 $(24)$209 $50 $71 $(126)358 
Losses from discontinued operations(2)
(7)
Earnings attributable to common shares$351 
Three months ended September 30, 2019
(Dollars in millions)SDG&ESoCalGasSempra Texas UtilitiesSempra MexicoSempra LNGConsolidating Adjustments, Parent & OtherTotal
Revenues$1,427 $975 $— $357 $100 $(101)$2,758 
Cost of sales and other expenses(802)(571)— (174)(120)69 (1,598)
Depreciation and amortization(196)(154)— (46)(2)(4)(402)
Impairment losses(6)(37)— — — — (43)
Loss on sale of assets— — — — — (3)(3)
Other income (expense), net19 — (30)— (7)
Income (loss) before interest and tax(1)
442 214 — 107 (22)(36)705 
Net interest (expense) income(105)(36)— (10)(110)(257)
Income tax (expense) benefit(71)(35)— — 43 (61)
Equity earnings, net— — 212 37 17 — 266 
(Earnings) losses attributable to noncontrolling interests(3)— — (50)— (52)
Preferred dividends— — — — — (36)(36)
Earnings (losses) from continuing operations$263 $143 $212 $84 $$(139)565 
Earnings from discontinued operations248 
Earnings attributable to common shares$813 
(1)     Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.
(2)     Represents post-closing adjustments related to the sale of our equity interests in our Chilean businesses.





         SEMPRA ENERGY
           Table F (Unaudited)
STATEMENTS OF OPERATIONS DATA BY SEGMENT
Nine months ended September 30, 2020
(Dollars in millions)SDG&ESoCalGasSempra Texas UtilitiesSempra MexicoSempra RenewablesSempra LNGConsolidating Adjustments, Parent & OtherTotal
Revenues$3,976 $3,247 $— $935 $— $255 $(214)$8,199 
Cost of sales and other expenses(2,326)(2,144)— (408)— (266)153 (4,991)
Depreciation and amortization(598)(486)— (141)— (7)(10)(1,242)
Other income (expense), net47 21 — (211)— — (20)(163)
Income (loss) before interest and tax(1)
1,099 638 — 175 — (18)(91)1,803 
Net interest (expense) income(305)(117)— (48)— 26 (298)(742)
Income tax (expense) benefit(161)(95)— 161 — (59)94 (60)
Equity earnings (losses), net— — 458 207 — 257 (100)822 
(Earnings) losses attributable to noncontrolling interests— — — (193)— (191)
Preferred dividends— (1)— — — — (121)(122)
Earnings (losses) from continuing operations$633 $425 $458 $302 $— $207 $(515)1,510 
Earnings from discontinued operations(2)
1,840 
Earnings attributable to common shares$3,350 
Nine months ended September 30, 2019
(Dollars in millions)SDG&ESoCalGasSempra Texas UtilitiesSempra MexicoSempra RenewablesSempra LNGConsolidating Adjustments, Parent & OtherTotal
Revenues$3,666 $3,142 $— $1,058 $10 $327 $(317)$7,886 
Cost of sales and other expenses(2,141)(2,083)— (496)(20)(350)223 (4,867)
Depreciation and amortization(571)(449)— (136)— (7)(11)(1,174)
Impairment losses(6)(37)— — — — (43)
Gain on sale of assets— — — — 61 — 63 
Other income, net60 18 — — — 19 103 
Income (loss) before interest and tax(1)
1,008 591 — 432 51 (30)(84)1,968 
Net interest (expense) income(308)(103)— (31)27 (326)(733)
Income tax (expense) benefit(111)(50)— (116)(4)(4)135 (150)
Equity earnings (losses), net— — 419 43 19 (1)485 
(Earnings) losses attributable to noncontrolling interests(7)— — (114)(1)— (121)
Preferred dividends— (1)— — — — (107)(108)
Earnings (losses) from continuing operations$582 $437 $419 $214 $59 $13 $(383)1,341 
Earnings from discontinued operations
267 
Earnings attributable to common shares$1,608 
(1)     Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.
(2)     Includes $1,747 million gain on the sale of our South American businesses in the second quarter of 2020.

v3.20.2
Cover
Nov. 05, 2020
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Nov. 05, 2020
Entity Registrant Name SEMPRA ENERGY
Entity Incorporation, State or Country Code CA
Entity File Number 1-14201
Entity Tax Identification Number 33-0732627
Entity Address, Address Line One 488 8th Avenue
Entity Address, City or Town San Diego
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92101
City Area Code (619)
Local Phone Number 696-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001032208
Amendment Flag false
Common Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Sempra Energy Common Stock, without par value
Trading Symbol SRE
Security Exchange Name NYSE
Convertible Preferred Stock Series A [Member]  
Document Information [Line Items]  
Title of 12(b) Security Sempra Energy 6% Mandatory Convertible Preferred Stock, Series A, $100 liquidation preference
Trading Symbol SREPRA
Security Exchange Name NYSE
Convertible Preferred Stock Series B  
Document Information [Line Items]  
Title of 12(b) Security Sempra Energy 6.75% Mandatory Convertible Preferred Stock, Series B, $100 liquidation preference
Trading Symbol SREPRB
Security Exchange Name NYSE
Sempra Energy 5.75% Junior Subordinated Notes Due 2079 [Member]  
Document Information [Line Items]  
Title of 12(b) Security Sempra Energy 5.75% Junior Subordinated Notes Due 2079, $25 par value
Trading Symbol SREA
Security Exchange Name NYSE