February 27, 2024

Sempra Reports 2023 Financial and Business Results

Body
  • Announces 20% Increase in Capital Plan to $48 Billion
  • Raises Annualized Common Stock Dividend for 14th Consecutive Year
  • Narrows Full-Year 2024 and Issues 2025 EPS Guidance Ranges
  • Affirms 6-8% Projected Long-Term EPS Growth Rate

SAN DIEGO, Feb. 27, 2024 /PRNewswire/ -- Sempra (NYSE: SRE) (BMV: SRE) today reported full-year 2023 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $3.03 billion or $4.79 per diluted share, compared to full-year 2022 GAAP earnings of $2.09 billion or $3.31 per diluted share. On an adjusted basis, full-year earnings were $2.92 billion or $4.61 per diluted share in both 2023 and 2022.

"Strong business performance in 2023 reflects continued improvements in our corporate strategy and consistency in execution," said Jeffrey W. Martin, chairman and CEO of Sempra. "At Sempra, our goal is to give investors exposure to attractive growth in the energy infrastructure sector with the support of a growing dividend and a management team committed to providing superior, long-term total returns."

Sempra Financial Highlights

The company also reported fourth-quarter 2023 GAAP earnings of $737 million or $1.16 per diluted share, compared to fourth-quarter 2022 GAAP earnings of $438 million or $0.69 per diluted share. On an adjusted basis, the company's fourth-quarter 2023 earnings were $719 million or $1.13 per diluted share, compared to $743 million or $1.17 per diluted share in fourth-quarter 2022.

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 2023 and 2022.

                   
                   
 

(Dollars and shares in millions, except EPS)

Three months ended

December 31,

 

Years ended

December 31,

 
 

2023

 

2022

 

2023

 

2022

 
               
 

GAAP Earnings

$     737

 

$     438

 

$ 3,030

 

$ 2,094

 
 

Impact associated with Aliso Canyon litigation and regulatory matters

 

 

 

199

 
 

Equity losses from write-off of rate base disallowances resulting from Public Utility
    Commission of Texas' final order in Oncor Electric Delivery Company LLC's
    comprehensive base rate review

 

 

44

 

 
 

Impact from foreign currency and inflation on monetary positions in Mexico

69

 

75

 

235

 

164

 
 

Net unrealized (gains) losses on commodity derivatives

(47)

 

247

 

(366)

 

355

 
 

Net unrealized (gains) losses on contingent interest rate swap related to initial phase of
    the Port Arthur LNG liquefaction project

 

(17)

 

17

 

(17)

 
 

Deferred income tax expense associated with change in indefinite reinvestment assertion
    related to sale of noncontrolling interest to Abu Dhabi Investment Authority

 

 

 

120

 
 

Earnings from investment in RBS Sempra Commodities LLP

(40)

 

 

(40)

 

 
 

Adjusted Earnings(1)

$     719

 

$     743

 

$ 2,920

 

$ 2,915

 
                   
 

Diluted Weighted-Average Common Shares Outstanding

634

 

632

 

633

 

633

 
 

GAAP EPS

$   1.16

 

$   0.69

 

$   4.79

 

$   3.31

 
 

Adjusted EPS(1)

$   1.13

 

$   1.17

 

$   4.61

 

$   4.61

 
                   
                   
 

1)  See Table A for information regarding non-GAAP financial measures and descriptions of adjustments.

               

Capital Plan Growth

Across North America, the growing need to connect people to safer, more reliable and cleaner energy is driving significant investment opportunities in the transmission and distribution portion of the energy value chain. In response to this opportunity, Sempra is forecasting a company-record five-year capital plan of approximately $48 billion, representing a 20% increase from the previous capital plan. Over 90% of these investments are focused on Sempra California and Sempra Texas.

"Strong projected growth in Sempra's core markets is driving a substantial increase in our five-year capital plan," said Karen Sedgwick, executive vice president and chief financial officer of Sempra. "Expanding our capital campaign also supports our confidence in our ability to deliver sustainable, long-term value for our owners."

Progress at Sempra's Three Growth Platforms

Sempra's three growth platforms – Sempra California, Sempra Texas and Sempra Infrastructure – deliver energy to nearly 40 million consumers across some of the world's most significant economic markets, including California, Texas, Mexico and global energy markets.

Sempra California

Serving roughly 25 million consumers, Sempra California is a dual-utility platform focused on connecting people to safer, more reliable and cleaner energy. In 2023, $4.6 billion was invested in capital projects, including installing 200 megawatts of new utility-owned battery storage and microgrids to help enhance grid reliability and strengthen community resilience. 

In California, our regulated utilities continue to earn recognition for both sustainability and innovation. In the fourth quarter of 2023, the [H2] Innovation Experience was named to Fast Company's list of the Next Big Things in Tech. Sempra California's electric network was recognized by PA Consulting for Outstanding Grid Sustainability and for Outstanding Reliability Performance, a reliability distinction it has earned for 18 years in a row.

Additionally, progress continues with the general rate cases before the California Public Utilities Commission including proposed partial settlements reached with certain intervenors. A proposed decision is scheduled for the second quarter of 2024.

Sempra Texas

Broad economic growth is driving new investment opportunities at Sempra Texas. In 2023, roughly $3.8 billion of capital was invested by Oncor Electric Delivery Company LLC (Oncor) to support the growing needs of its customers, resulting in approximately 12% rate base growth since year-end 2022.

Nearly $1.6 billion of transmission projects were placed into service by Oncor in 2023, including placement of over 40 major substations and over 30 major switching stations and approximately 390 circuit miles of new or upgraded high-voltage transmission lines. Additionally, in 2023, Oncor saw a 25% increase in active generation and retail transmission interconnection requests as compared to 2022. Of the approximately 480 active generation point of interconnection requests in the queue at the end of 2023, 46% were solar, 42% were storage, 9% were wind and 3% were natural gas.

Several constructive legislative and regulatory outcomes were achieved in 2023 that are expected to support critical new infrastructure investments in the Texas market, while also improving the timeliness of capital recovery.

Sempra Infrastructure 

Sempra Infrastructure delivered strong financial and operational performance in 2023, a testament to its effectiveness as a high-growth, lower-carbon business focused on delivering cleaner and more secure energy to customers around the world.

Cameron LNG Phase 1 continues to be highly efficient, delivering excess production and achieving over 700 cargoes loaded since production began. As the company looks to expand its liquefied natural gas (LNG) portfolio, significant progress continues at Energía Costa Azul (ECA) LNG Phase 1 and Port Arthur LNG Phase 1. ECA LNG Phase 1 remains on track for commercial operations in summer 2025. 

In 2023, Sempra Infrastructure made a positive Final Investment Decision on Port Arthur LNG Phase 1 and project-level financing was secured. Sempra also closed the sales of indirect non-controlling interests in the project to ConocoPhillips and KKR.

In addition, Sempra Infrastructure continues to advance development efforts for its various LNG, hydrogen and carbon capture projects in response to continued global demand for cleaner fuels to support the decarbonization of the power sector and improve energy security.

Earnings Guidance

Sempra is narrowing its full-year 2024 earnings-per-common share (EPS) guidance range to $4.60 to $4.90 and announcing a full-year 2025 EPS guidance range of $4.90 to $5.25, which represents a 7% year-over-year increase from the midpoint of the full-year 2024 EPS guidance range. The company is also affirming its projected long-term EPS growth rate of approximately 6% to 8%.

Common and Preferred Dividends

Sempra's board of directors declared a $0.62 per share quarterly dividend on the company's common stock, which is payable April 15, 2024, to common stock shareholders of record at the close of business on March 21, 2024. The declared quarterly dividend represents an increase of the company's common stock dividend to $2.48 per share, on an annualized basis, from $2.38 per share in 2023.

Additionally, Sempra's board of directors declared a semi-annual dividend of $24.375 per share on the company's 4.875% Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, Series C. The preferred stock dividends will be payable April 15, 2024, to preferred stock shareholders of record at the close of business on April 1, 2024.

Non-GAAP Financial Measures

Non-GAAP financial measures include Sempra's adjusted earnings and adjusted EPS. See Table A for additional information regarding these non-GAAP financial measures.

Internet Broadcast

Sempra will broadcast a live discussion of its earnings results over the internet today at 12 p.m. ET with the company's senior management. Access is available by logging onto the Investors section of the company's website, labelleplane-chambresdhotes.com/investors. The webcast will be available on replay a few hours after its conclusion at labelleplane-chambresdhotes.com/investors.

About Sempra

Sempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world's most significant economic markets, including California, Texas, Mexico and global energy market. The company is recognized as a leader in sustainable business practices and for its high-performance culture focused on safety and operational excellence, as demonstrated by Sempra's inclusion in the Dow Jones Sustainability Index North America and in The Wall Street Journal's Best Managed Companies. More information about Sempra is available at labelleplane-chambresdhotes.com and on social media @Sempra.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "envision," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "preliminary," "initiative," "target," "outlook," "optimistic," "poised," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, rates from customers or a combination thereof; decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), Comisión Reguladora de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, Public Utility Commission of Texas, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, (iv) obtaining third-party consents and approvals, and (v) third parties honoring their contracts and commitments; macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on rate base or other growth; litigation, arbitrations, property disputes and other proceedings, and changes to laws and regulations, including those related to tax and trade policy and the energy industry in Mexico; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation; the impact on affordability of San Diego Gas & Electric Company's (SDG&E) and Southern California Gas Company's (SoCalGas) customer rates and their cost of capital and on SDG&E's, SoCalGas' and Sempra Infrastructure's ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices, (ii) with respect to SDG&E's and SoCalGas' businesses, the cost of meeting the demand for lower carbon and reliable energy in California, and (iii) with respect to Sempra Infrastructure's business, volatility in foreign currency exchange rates; the impact of climate and sustainability policies, laws, rules, regulations, disclosures and trends, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to relevant emerging and early-stage technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power, natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, pipeline system or limitations on the withdrawal of natural gas from storage facilities; Oncor Electric Delivery Company LLC's (Oncor) ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; and other uncertainties, some of which are difficult to predict and beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website, f.labelleplane-chambresdhotes.com. Investors should not rely unduly on any forward-looking statements.

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

None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document. 

                                                           

SEMPRA

Table A

                 

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions, except per share amounts; shares in thousands)

           
   

Three months ended December 31,

 

Years ended December 31,

   

2023

 

2022

 

2023(1)

 

2022(1)

             

REVENUES

               

Utilities:

               

Natural gas

 

$

1,935

   

$

2,257

   

$

9,495

   

$

7,868

 

Electric

 

1,003

   

1,120

   

4,334

   

4,783

 

Energy-related businesses

 

553

   

78

   

2,891

   

1,788

 

Total revenues

 

3,491

   

3,455

   

16,720

   

14,439

 
                 

EXPENSES AND OTHER INCOME

               

Utilities:

               

Cost of natural gas

 

(465)

   

(768)

   

(3,719)

   

(2,603)

 

Cost of electric fuel and purchased power

 

10

   

(174)

   

(375)

   

(937)

 

Energy-related businesses cost of sales

 

(111)

   

(178)

   

(548)

   

(942)

 

Operation and maintenance

 

(1,500)

   

(1,292)

   

(5,458)

   

(4,746)

 

Aliso Canyon litigation and regulatory matters

 

   

   

   

(259)

 

Depreciation and amortization

 

(576)

   

(519)

   

(2,227)

   

(2,019)

 

Franchise fees and other taxes

 

(168)

   

(161)

   

(677)

   

(635)

 

Other income, net

 

56

   

27

   

131

   

24

 

Interest income

 

29

   

17

   

89

   

75

 

Interest expense

 

(314)

   

(258)

   

(1,309)

   

(1,054)

 

     Income before income taxes and equity earnings

 

452

   

149

   

2,627

   

1,343

 

Income tax benefit (expense)

 

9

   

(121)

   

(490)

   

(556)

 

Equity earnings

 

395

   

380

   

1,481

   

1,498

 

Net income

 

856

   

408

   

3,618

   

2,285

 

(Earnings) losses attributable to noncontrolling interests

 

(108)

   

41

   

(543)

   

(146)

 

Preferred dividends

 

(11)

   

(11)

   

(44)

   

(44)

 

Preferred dividends of subsidiary

 

   

   

(1)

   

(1)

 

Earnings attributable to common shares

 

$

737

   

$

438

   

$

3,030

   

$

2,094

 
                 

Basic earnings per common share (EPS):

               

Earnings

 

$

1.17

   

$

0.70

   

$

4.81

   

$

3.32

 

Weighted-average common shares outstanding

 

631,284

   

629,476

   

630,296

   

630,318

 
                 

Diluted EPS:

               

Earnings

 

$

1.16

   

$

0.69

   

$

4.79

   

$

3.31

 

Weighted-average common shares outstanding

 

634,228

   

632,295

   

632,733

   

632,757

 
 

(1)  Derived from audited financial statements.

 

SEMPRA
Table A (Continued)

RECONCILIATION OF SEMPRA ADJUSTED EARNINGS TO SEMPRA GAAP EARNINGS

Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2023 and 2022 as follows:

Three months ended December 31, 2023:

  • $(69) million impact from foreign currency and inflation on our monetary positions in Mexico
  • $47 million net unrealized gains on commodity derivatives
  • $40 million equity earnings from investment in RBS Sempra Commodities LLP based on a legal settlement

 Three months ended December 31, 2022:

  • $(75) million impact from foreign currency and inflation on our monetary positions in Mexico
  • $(247) million net unrealized losses on commodity derivatives
  • $17 million net unrealized gains on a contingent interest rate swap related to the proposed initial phase of the Port Arthur LNG liquefaction project

Year ended December 31, 2023:

  • $(44) million equity losses from investment in Oncor Electric Delivery Holdings Company LLC related to a write-off of rate base disallowances resulting from the Public Utility Commission of Texas' final order in Oncor Electric Delivery Company LLC's comprehensive base rate review
  • $(235) million impact from foreign currency and inflation on our monetary positions in Mexico
  • $366 million net unrealized gains on commodity derivatives
  • $(17) million net unrealized losses on a contingent interest rate swap related to the initial phase of the Port Arthur LNG liquefaction project
  • $40 million equity earnings from investment in RBS Sempra Commodities LLP based on a legal settlement

Year ended December 31, 2022:

  • $(199) million impact associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at Sempra California
  • $(164) million impact from foreign currency and inflation on our monetary positions in Mexico
  • $(355) million net unrealized losses on commodity derivatives
  • $17 million net unrealized gains on a contingent interest rate swap related to the proposed initial phase of the Port Arthur LNG liquefaction project
  • $(120) million deferred income tax expense associated with the change in our indefinite reinvestment assertion as a result of progress in obtaining regulatory approvals necessary to close the sale of 10% noncontrolling interest in Sempra Infrastructure Partners, LP to Abu Dhabi Investment Authority

Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation on our monetary positions in Mexico and net unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

                                                                 

SEMPRA

Table A (Continued)

                     

RECONCILIATION OF ADJUSTED EARNINGS TO GAAP EARNINGS

(Dollars in millions, except EPS; shares in thousands)

   

Pretax amount

Income tax expense
(benefit)
(1)

Non-controlling
interests

Earnings

 

Pretax amount

Income tax expense
(benefit)
(1)

Non-controlling
interests

Earnings

 

Three months ended December 31, 2023

 

Three months ended December 31, 2022

     

Sempra GAAP Earnings

     

$

737

         

$

438

 

Excluded items:

                 

Impact from foreign currency and inflation on monetary positions in Mexico

$

22

 

$

80

 

$

(33)

 

69

   

$

19

 

$

89

 

$

(33)

 

75

 

    Net unrealized (gains) losses on commodity derivatives

(92)

 

16

 

29

 

(47)

   

486

 

(96)

 

(143)

 

247

 

        Net unrealized gains on contingent interest rate swap related to proposed initial phase of
            the Port Arthur LNG liquefaction project

 

 

 

   

(33)

 

6

 

10

 

(17)

 

Earnings from investment in RBS Sempra Commodities LLP

(40)

 

 

 

(40)

   

 

 

 

 

Sempra Adjusted Earnings

     

$

719

         

$

743

 
                     

Diluted EPS:

                 

    Weighted-average common shares outstanding, diluted

     

634,228

         

632,295

 

    Sempra GAAP EPS

     

$

1.16

         

$

0.69

 

    Sempra Adjusted EPS

     

$

1.13

         

$

1.17

 
                   
   

Year ended December 31, 2023

 

Year ended December 31, 2022

     

Sempra GAAP Earnings

     

$

3,030

         

$

2,094

 

Excluded items:

                 

Impact associated with Aliso Canyon litigation and regulatory matters

$

 

$

 

$

 

   

$

259

 

$

(60)

 

$

 

199

 

        Equity losses from write-off of rate base disallowances resulting from Public Utility
             Commission of Texas' final order in Oncor Electric Delivery Company LLC's
             comprehensive base rate review

 

 

 

44

   

 

 

 

 

Impact from foreign currency and inflation on monetary positions in Mexico

62

 

283

 

(110)

 

235

   

49

 

169

 

(54)

 

164

 

    Net unrealized (gains) losses on commodity derivatives

(722)

 

144

 

212

 

(366)

   

669

 

(138)

 

(176)

 

355

 

        Net unrealized losses (gains) on contingent interest rate swap related to initial phase of
             the Port Arthur LNG liquefaction project

33

 

(6)

 

(10)

 

17

   

(33)

 

6

 

10

 

(17)

 

        Deferred income tax expense associated with change in indefinite reinvestment assertion
             related to sale of noncontrolling interest to Abu Dhabi Investment Authority

 

 

 

   

 

120

 

 

120

 

Earnings from investment in RBS Sempra Commodities LLP

(40)

 

 

 

(40)

   

 

 

 

 

Sempra Adjusted Earnings

     

$

2,920

         

$

2,915

 
                     

Diluted EPS:

                 

         Weighted-average common shares outstanding, diluted

     

632,733

         

632,757

 

         Sempra GAAP EPS

     

$

4.79

         

$

3.31

 

     Sempra Adjusted EPS

     

$

4.61

         

$

4.61

 
   

(1)

Except for adjustments that are solely income tax, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We record equity losses for our investment in Oncor Electric Delivery Holdings

Company LLC net of income tax. We did not record an income tax expense for the equity earnings from our investment in RBS Sempra Commodities LLP because, even though a portion may be deductible under United Kingdom tax

law, it is not probable that the deduction will reduce United Kingdom taxes.

 

                       

SEMPRA

Table B

       

CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

     
 

December 31,

 

2023(1)

 

2022(1)

ASSETS

     

Current assets:

     

Cash and cash equivalents

$

236

   

$

370

 

Restricted cash

49

   

40

 

Accounts receivable – trade, net

2,151

   

2,635

 

Accounts receivable – other, net

561

   

685

 

Due from unconsolidated affiliates

31

   

54

 

Income taxes receivable

94

   

113

 

Inventories

482

   

403

 

Prepaid expenses

273

   

268

 

Regulatory assets

226

   

351

 

Fixed-price contracts and other derivatives

122

   

803

 

Greenhouse gas allowances

1,189

   

141

 

Other current assets

56

   

49

 

Total current assets

5,470

   

5,912

 
       

Other assets:

     

Restricted cash

104

   

52

 

Regulatory assets

3,771

   

2,588

 

Greenhouse gas allowances

301

   

796

 

Nuclear decommissioning trusts

872

   

841

 

Dedicated assets in support of certain benefit plans

549

   

505

 

Deferred income taxes

129

   

135

 

Right-of-use assets – operating leases

723

   

655

 

Investment in Oncor Holdings

14,266

   

13,665

 

Other investments

2,244

   

2,012

 

Goodwill

1,602

   

1,602

 

Other intangible assets

318

   

344

 

Wildfire fund

269

   

303

 

Other long-term assets

1,603

   

1,382

 

Total other assets

26,751

   

24,880

 

Property, plant and equipment, net

54,960

   

47,782

 

Total assets

$

87,181

   

$

78,574

 
                       

(1)  Derived from audited financial statements

 

SEMPRA

Table B (Continued)

       

CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Dollars in millions)

     
 

December 31,

 

2023(1)

 

2022(1)

LIABILITIES AND EQUITY

     

Current liabilities:

     

Short-term debt

$

2,342

   

$

3,352

 

Accounts payable – trade

2,211

   

1,994

 

Accounts payable – other

224

   

275

 

Due to unconsolidated affiliates

5

   

 

Dividends and interest payable

691

   

621

 

Accrued compensation and benefits

526

   

484

 

Regulatory liabilities

553

   

504

 

Current portion of long-term debt and finance leases

975

   

1,019

 

Reserve for Aliso Canyon costs

31

   

129

 

Greenhouse gas obligations

1,189

   

141

 

Other current liabilities

1,343

   

1,380

 

Total current liabilities

10,090

   

9,899

 
       

Long-term debt and finance leases

27,759

   

24,548

 
       

Deferred credits and other liabilities:

     

Due to unconsolidated affiliates

307

   

301

 

Regulatory liabilities

3,739

   

3,341

 

Greenhouse gas obligations

   

565

 

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

407

   

410

 

Deferred income taxes

5,254

   

4,591

 

Asset retirement obligations

3,642

   

3,546

 

Deferred credits and other

2,329

   

2,117

 

Total deferred credits and other liabilities

15,678

   

14,871

 

Equity:

     

Sempra shareholders' equity

28,675

   

27,115

 

Preferred stock of subsidiary

20

   

20

 

Other noncontrolling interests

4,959

   

2,121

 

Total equity

33,654

   

29,256

 

Total liabilities and equity

$

87,181

   

$

78,574

 
 

(1)  Derived from audited financial statements.

 

                       

SEMPRA

Table C

       

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

 

Years ended December 31,

 

2023(1)

 

2022(1)

CASH FLOWS FROM OPERATING ACTIVITIES

     

Net income

$

3,618

   

$

2,285

 

Adjustments to reconcile net income to net cash provided by operating activities

853

   

2,025

 

Reserve for Aliso Canyon costs

(98)

   

(1,851)

 

Net change in other working capital components

1,527

   

(1,967)

 

Insurance receivable for Aliso Canyon costs

   

360

 

Distributions from investments

912

   

854

 

Changes in other noncurrent assets and liabilities, net

(594)

   

(564)

 

Net cash provided by operating activities

6,218

   

1,142

 
       

CASH FLOWS FROM INVESTING ACTIVITIES

     

Expenditures for property, plant and equipment

(8,397)

   

(5,357)

 

Expenditures for investments and acquisitions

(382)

   

(376)

 

Proceeds from sale of assets

3

   

 

Purchases of nuclear decommissioning and other trust assets

(610)

   

(700)

 

Proceeds from sales of nuclear decommissioning and other trust assets

661

   

762

 

Repayments of advances to unconsolidated affiliates

   

626

 

Other

9

   

6

 

Net cash used in investing activities

(8,716)

   

(5,039)

 
       

CASH FLOWS FROM FINANCING ACTIVITIES

     

Common dividends paid

(1,483)

   

(1,430)

 

Preferred dividends paid

(44)

   

(44)

 

Issuances of common stock, net

145

   

4

 

Repurchases of common stock

(32)

   

(478)

 

Issuances of debt (maturities greater than 90 days)

7,669

   

9,984

 

Payments on debt (maturities greater than 90 days) and finance leases

(6,294)

   

(4,510)

 

Increase (decrease) in short-term debt, net

552

   

(1,266)

 

Advances from unconsolidated affiliates

31

   

28

 

Proceeds from sales of noncontrolling interests, net

1,219

   

1,732

 

Distributions to noncontrolling interests

(730)

   

(237)

 

Contributions from noncontrolling interests

1,570

   

31

 

Settlement of cross-currency swaps

(99)

   

 

Other

(85)

   

(35)

 

Net cash provided by financing activities

2,419

   

3,779

 
       

Effect of exchange rate changes on cash, cash equivalents and restricted cash

6

   

(1)

 
       

Decrease in cash, cash equivalents and restricted cash

(73)

   

(119)

 

Cash, cash equivalents and restricted cash, January 1

462

   

581

 

Cash, cash equivalents and restricted cash, December 31

$

389

   

$

462

 
 

(1)  Derived from audited financial statements.

 

                                                           

SEMPRA

Table D

               

SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES AND INVESTMENTS

(Dollars in millions)

 

Three months ended
December 31,

 

Years ended
December 31,

 

2023

 

2022

 

2023(1)

 

2022(1)

           

Earnings (Losses) Attributable to Common Shares

             

Sempra California

$

500

   

$

494

   

$

1,747

   

$

1,514

 

Sempra Texas Utilities

146

   

132

   

694

   

736

 

Sempra Infrastructure

131

   

(82)

   

877

   

310

 

Parent and other

(40)

   

(106)

   

(288)

   

(466)

 

Total

$

737

   

$

438

   

$

3,030

   

$

2,094

 
               
               
 

Three months ended
December 31,

 

Years ended
December 31,

 

2023

 

2022

 

2023(1)

 

2022(1)

           

Capital Expenditures and Investments

             

Sempra California

$

1,216

   

$

1,421

   

$

4,560

   

$

4,466

 

Sempra Texas Utilities

97

   

90

   

367

   

346

 

Sempra Infrastructure

1,111

   

406

   

3,847

   

914

 

Parent and other

   

1

   

5

   

7

 

Total

$

2,424

   

$

1,918

   

$

8,779

   

$

5,733

 
 

(1)  Derived from audited financial statements.

 

                                                     
 

SEMPRA

 

Table E

                 

OTHER OPERATING STATISTICS

 
   

Three months ended December 31,

 

Years ended or at December 31,

   

2023

 

2022

 

2023

 

2022

     

UTILITIES

             

Sempra California

             

   Gas sales (Bcf)(1)

89

   

109

   

369

   

349

 

   Transportation (Bcf)(1)

150

   

163

   

588

   

625

 

   Total deliveries (Bcf)(1)

239

   

272

   

957

   

974

 
               

Total gas customer meters (thousands)

       

7,078

   

7,040

 
               

   Electric sales (millions of kWhs)(1)

974

   

1,715

   

4,619

   

7,800

 

   Community Choice Aggregation and Direct Access (millions of kWhs)(2)

3,227

   

2,765

   

12,228

   

9,900

 

   Total deliveries (millions of kWhs)(1)

4,201

   

4,480

   

16,847

   

17,700

 
               

Total electric customer meters (thousands)

       

1,517

   

1,504

 
               

Oncor Electric Delivery Company LLC(3)

             

 Total deliveries (millions of kWhs)

35,906

   

33,680

   

156,477

   

149,260

 

 Total electric customer meters (thousands)

       

3,969

   

3,896

 
               

Ecogas México, S. de R.L. de C.V.

             

 Natural gas sales (Bcf)

1

   

1

   

4

   

4

 

 Natural gas customer meters (thousands)

       

157

   

150

 
                 

ENERGY-RELATED BUSINESSES

             

Sempra Infrastructure

             

Termoeléctrica de Mexicali (millions of kWhs)

1,064

   

842

   

3,086

   

3,110

 

      Wind and solar (millions of kWhs)(1)

610

   

640

   

3,135

   

2,987

 
   

(1)

Includes intercompany sales.

(2)

Several jurisdictions in Sempra California's territory have implemented Community Choice Aggregation, including the City of San Diego in 2022. Additional jurisdictions are in the process of implementing or considering Community Choice Aggregation.

(3)

Includes 100% of the electric deliveries and customer meters of Oncor Electric Delivery Company LLC, in which we hold an indirect 80.25% interest through our investment in Oncor Electric Delivery Holdings Company LLC.

 

                                                                 

SEMPRA

Table F

                     

STATEMENTS OF OPERATIONS DATA BY SEGMENT

(Dollars in millions)

Three months ended December 31, 2023

Sempra California

 

Sempra Texas
Utilities

 

Sempra Infrastructure

 

Consolidating
Adjustments, Parent &
Other

   

Total

Revenues

$

2,920

   

$

   

$

586

   

$

(15)

     

$

3,491

 

Cost of sales and other expenses

(1,840)

   

   

(380)

   

(14)

     

(2,234)

 

Depreciation and amortization

(502)

   

   

(71)

   

(3)

     

(576)

 

Other income (expense), net

27

   

   

(1)

   

30

     

56

 

Income (loss) before interest and tax(1)

605

   

   

134

   

(2)

     

737

 

Net interest (expense) income

(200)

   

(1)

   

16

   

(100)

     

(285)

 

Income tax benefit (expense)

95

   

(1)

   

(118)

   

33

     

9

 

Equity earnings

   

148

   

207

   

40

     

395

 

Earnings attributable to noncontrolling interests

   

   

(108)

   

     

(108)

 

Preferred dividends

   

   

   

(11)

     

(11)

 

Earnings (losses) attributable to common shares

$

500

   

$

146

   

$

131

   

$

(40)

     

$

737

 
                     
 

Three months ended December 31, 2022

Sempra California

 

Sempra Texas
Utilities

 

Sempra Infrastructure

 

Consolidating
Adjustments, Parent &
Other

   

Total

Revenues

$

3,358

   

$

   

$

109

   

$

(12)

     

$

3,455

 

Cost of sales and other expenses

(2,158)

   

(2)

   

(385)

   

(28)

     

(2,573)

 

Depreciation and amortization

(448)

   

   

(69)

   

(2)

     

(519)

 

Other income, net

21

   

   

4

   

2

     

27

 

Income (loss) before interest and tax(1)

773

   

(2)

   

(341)

   

(40)

     

390

 

Net interest (expense) income

(175)

   

   

1

   

(67)

     

(241)

 

Income tax (expense) benefit

(104)

   

1

   

(30)

   

12

     

(121)

 

Equity earnings

   

133

   

247

   

     

380

 

Losses attributable to noncontrolling interests

   

   

41

   

     

41

 

Preferred dividends

   

   

   

(11)

     

(11)

 

Earnings (losses) attributable to common shares

$

494

   

$

132

   

$

(82)

   

$

(106)

     

$

438

 
   

(1)

Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

                                                                 

SEMPRA

Table F (Continued)

                     

STATEMENTS OF OPERATIONS DATA BY SEGMENT

(Dollars in millions)

Year ended December 31, 2023(1)

Sempra California

 

Sempra Texas
Utilities

 

Sempra Infrastructure

 

Consolidating
Adjustments, Parent &
Other

   

Total

Revenues

$

13,761

   

$

   

$

3,071

   

$

(112)

     

$

16,720

 

Cost of sales and other expenses

(9,442)

   

(5)

   

(1,361)

   

31

     

(10,777)

 

Depreciation and amortization

(1,937)

   

   

(281)

   

(9)

     

(2,227)

 

Other income, net

93

   

   

10

   

28

     

131

 

Income (loss) before interest and tax(2)

2,475

   

(5)

   

1,439

   

(62)

     

3,847

 

Net interest expense

(758)

   

(1)

   

(86)

   

(375)

     

(1,220)

 

Income tax benefit (expense)

31

   

(1)

   

(673)

   

153

     

(490)

 

Equity earnings

   

701

   

740

   

40

     

1,481

 

Earnings attributable to noncontrolling interests

   

   

(543)

   

     

(543)

 

Preferred dividends

(1)

   

   

   

(44)

     

(45)

 

Earnings (losses) attributable to common shares

$

1,747

   

$

694

   

$

877

   

$

(288)

     

$

3,030

 
                     
                     

Year ended December 31, 2022(1)

Sempra California

 

Sempra Texas
Utilities

 

Sempra Infrastructure

 

Consolidating
Adjustments, Parent &
Other

   

Total

Revenues

$

12,577

   

$

   

$

1,919

   

$

(57)

     

$

14,439

 

Cost of sales and other expenses

(8,188)

   

(6)

   

(1,642)

   

(27)

     

(9,863)

 

Aliso Canyon litigation and regulatory matters

(259)

   

   

   

     

(259)

 

Depreciation and amortization

(1,743)

   

   

(268)

   

(8)

     

(2,019)

 

Other income (expense), net

84

   

   

   

(60)

     

24

 

Income (loss) before interest and tax(2)

2,471

   

(6)

   

9

   

(152)

     

2,322

 

Net interest expense

(636)

   

   

(60)

   

(283)

     

(979)

 

Income tax (expense) benefit

(320)

   

   

(249)

   

13

     

(556)

 

Equity earnings

   

742

   

756

   

     

1,498

 

Earnings attributable to noncontrolling interests

   

   

(146)

   

     

(146)

 

Preferred dividends

(1)

   

   

   

(44)

     

(45)

 

Earnings (losses) attributable to common shares

$

1,514

   

$

736

   

$

310

   

$

(466)

     

$

2,094

 
   

(1)

Derived from audited financial statements.

(2)

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.

 

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Contact Info

Media Contact: Katie Nieri, Sempra, (877) 340-8875, [email protected]; Financial Contact: Jenell McKay, Sempra, (877) 736-7727, [email protected]