2017 Statistical Report

Transcription

1 Statistical Report SEMPRA ENERGY Unaudited Supplement to the Financial Report

2 Shareholder Services Statistical Report Unaudited Supplement to the Annual Report Sempra Energy is a San Diego-based Fortune 500 energy-services holding company with revenues of more than billion. The Sempra Energy companies approximately 6,000 employees serve more than 2 million consumers worldwide. The company develops energy infrastructure, operates utilities and provides energy-related services to customers around the world. Additional information is available on the web at Investors with general questions regarding Sempra Energy or Southern California Gas Company securities should contact the company at: Sempra Energy Shareholder Services 88 8th Avenue San Diego, CA Telephone: (877) Fax: (69) investor@sempra.com Internet: Investor Relations Security analysts, portfolio managers and other members of the financial community should contact: Patrick S. Billings Director - Investor Relations Telephone: (69) Sempra Energy Common Stock: Ticker Symbol: SRE New York Stock Exchange Sempra Energy Preferred Stock: Ticker Symbol: SREPRA New York Stock Exchange Southern California Gas Co. Preferred Stock: SoCalGas preferred stock is not listed on any exchange and trades over-the-counter.

3 Table of Contents Sempra Energy Sempra South American Utilities Selected Financial Data Consolidated Statements of Operations... Consolidated Balance Sheets... Consolidated Statements of Cash Flows... Consolidated Statements of Comprehensive Income (Loss) and Changes in Equity... Segment Earnings (Losses) and Capital Expenditures, Investments and Acquisitions... Schedule of Capitalization... Schedule of Long-Term Debt... Reconciliation of Sempra Energy GAAP Earnings to Sempra Energy Adjusted Earnings Consolidated Statements of Operations and Comparative Statistics... Consolidated Balance Sheets... Consolidated Statements of Cash Flows... 8 Consolidated Statements of Operations and Comparative Statistics... Consolidated Balance Sheets... Consolidated Statements of Cash Flows Southern California Gas Company (SoCalGas ) Selected Financial Data and Comparative Statistics Statements of Operations... Balance Sheets... Statements of Cash Flows... Sempra Mexico 2 Sempra Renewables Consolidated Statements of Operations and Comparative Statistics... Consolidated Balance Sheets... Consolidated Statements of Cash Flows Sempra LNG & Midstream San Diego Gas & Electric Company (SDG&E ) Selected Financial Data and Comparative Statistics Consolidated Statements of Operations... Consolidated Balance Sheets... Consolidated Statements of Cash Flows Consolidated Statements of Operations and Comparative Statistics... Consolidated Balance Sheets... Consolidated Statements of Cash Flows Shareholder Information and Research Coverage...

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5 Selected Financial Data 5 - At December or for the years then ended 6 5 (In millions, except per share amounts) Total revenues Income from continuing operations Earnings from continuing operations attributable to noncontrolling interests Preferred dividends of subsidiary Earnings/Income from continuing operations attributable to common shares,7 5 (9) ,8,59 (8),70,8 (98),9 Weighted-average number of common shares outstanding, diluted Earnings/Income from continuing operations per common share: Basic Diluted Adjusted earnings Adjusted earnings per common share, diluted,68 5.2, , Dividends declared per common share Dividend yield on common shares Dividend payout ratio, diluted.29.% 25.7% Return on common equity Ratio of market price to book value per common share Book value per common share Market price per common share: High Low Close Common shares outstanding Average daily trading volume (shares) Total assets Long-term debt (excludes current portion)(2) Short-term debt() Sempra Energy shareholders' equity Interest coverage ratio: Before income taxes After income taxes Effective income tax rate (2) () 2.0% % 55.%.% % 52.%.7% ,5 6,5 2,967 2,670 7,786,29 2,692 2,95,50,,529, % Please refer to page for an explanation of these non-gaap measures. Includes capital lease obligations. Includes long-term debt due within one year and current portion of capital lease obligations , %.9.58 %

6 Consolidated Statements of Operations (Dollars in millions, except per share amounts) Revenues Utilities: Elecric Natural gas Energy-related businesses Total revenues Expenses and Income Utilities: Cost of electric fuel and purchased power Cost of natural gas Energy-related businesses: Cost of natural gas, electric fuel and purchased power cost of sales Operation and maintenance Depreciation and amortization Franchise fees and other taxes Write-off of wildfire regulatory asset Impairment losses Plant closure adjustment Gain on sale of assets Equity earnings, before income tax Remeasurement of equity method investment income, net Interest income Interest expense Income before income taxes and equity earnings of certain unconsolidated subsidiaries Income tax expense Equity earnings, net of income tax Net income Earnings attributable to noncontrolling interests Preferred dividends of subsidiary Earnings Basic earnings per common share 5,2, ,8 5,58, ,2 (2,88) (,067) (2,6) (,) (9) (2) (,7) (,90) (6) (5) (72) 25 6 (659) (277) (22) (2,970) (,2) (26) (5) (55) (5) (8) (2,886) (,250) (2) (9) (56),585 (,276) 2 5 (9) 256,80 (89) 78,59 (8),70,70 () 85,8 (98), ,55 Weighted-average number of common shares outstanding, diluted (thousands) 5,5,6,,7 5 (2,28) (,90) Weighted-average number of common shares outstanding, basic (thousands) Diluted earnings per common share Years ended December, ,00 250, ,55 28, ,92

7 Consolidated Balance Sheets Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable trade, net Accounts receivable other, net Due from unconsolidated affiliates Income taxes receivable Inventories Regulatory assets Fixed-price contracts and other derivatives Greenhouse gas allowances Assets held for sale Total current assets assets: Restricted cash Due from unconsolidated affiliates Regulatory assets Nuclear decommissioning trusts Investments Goodwill intangible assets Dedicated assets in support of certain benefit plans Insurance receivable for Aliso Canyon costs Deferred income taxes Greenhouse gas allowances Sundry Total other assets Property, plant and equipment: Property, plant and equipment Less accumulated depreciation and amortization Property, plant and equipment, net Total assets , , December, , , , ,89 598,57,0 2,527 2, ,60 0,,026 2,097 2, ,75 86,27,06 2, ,2 8,08 (,605) 6,50 50,5,62 (0,69) 2,9 7,786 8,0 (0,6) 28,09,50

8 Consolidated Balance Sheets (continued) Liabilities and Equity Current liabilities: Short-term debt Accounts payable trade Accounts payable other Due to unconsolidated affiliates Dividends and interest payable Accrued compensation and benefits Regulatory liabilities Current portion of long-term debt Fixed-price contracts and other derivatives Customer deposits Reserve for Aliso Canyon costs Greenhouse gas obligations Liabilities held for sale Total current liabilities,50, , ,65 December, 6,779, , , ,62 Long-term debt 6,5,29, Deferred credits and other liabilities: Customer advances for construction Due to unconsolidated affiliates Pension and other postretirement benefit plan obligations, net of plan assets Deferred income taxes Deferred investment tax credits Regulatory liabilities Asset retirement obligations Fixed-price contracts and other derivatives Greenhouse gas obligations Deferred credits and other Total deferred credits and other liabilities 50 5,8 2,767 28,922 2,72 6,6 2,2 52,8, ,876 2, 05 7,7 2,89 9,52,57 2 2,865 2, ,0 0,825 Equity: Preferred stock Common stock Retained earnings Accumulated other comprehensive income (loss) Total Sempra Energy shareholders' equity Preferred stock of subsidiary noncontrolling interests Total equity Total liabilities and equity,9 0,7 (626) 2,670 2,50 5,0 50,5 2,982 0,77 (78) 2,95 2,270 5,2 7,786 2,62 9,99 (806), ,579,50 5

9 Consolidated Statements of Cash Flows Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes and investment tax credits Write-off of wildfire regulatory asset Impairment losses Plant closure adjustment Gain on sale of assets Equity earnings, net Remeasurement of equity method investment Fixed-price contracts and other derivatives Net change in other working capital components Insurance receivable for Aliso Canyon costs Changes in other assets Changes in other liabilities Net cash provided by operating activities Years ended December, 6 5,59 5,8,90, () (76) (2) 9,625, () (8) (67) 2 62 (59) (28) 9 5 2,, (26) (70) (89) (0) (25) (69) (2) 2,898 Cash Flows from Investing Activities Expenditures for property, plant and equipment Expenditures for investments and acquisitions, net of cash, cash equivalents and restricted cash acquired Proceeds from sale of assets, net of cash sold Distributions from investments Purchases of nuclear decommissioning and other trust assets Proceeds from sales by nuclear decommissioning and other trusts Advances to unconsolidated affiliates Repayments of advances to unconsolidated affiliates Net cash used in investing activities (,99) (270) 7 26 (,), (5) 9 (2) (,700) (,2) (,50) (,0), (25) 9 (,85) (,56) (98) 7 5 (5) 577 () 7 9 (2,868) Cash Flows from Financing Activities Common dividends paid Preferred dividends paid by subsidiary Issuances of common stock Repurchases of common stock Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) (Decrease) increase in short-term debt, net Advances from unconsolidated affiliates Proceeds from sale of noncontrolling interests, net of and 0 in offering costs, respectively Net distributions to noncontrolling interests Tax benefit related to share-based compensation Net cash provided by (used in) financing activities (755) 7 (5),509 (2,800) (6) 5 96 (0) (),007 (686) 5 (56) 2,95 (2,057) 692,692 (6) (2) 2,502 (628) 52 (7) 2,992 (,85) (622) (7) 52 () (76) () () (25) (60) Effect of exchange rate changes on cash, cash equivalents and restricted cash 7 Decrease in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, January Cash, cash equivalents and restricted cash, December (6) 25 6 As adjusted for the retrospective adoption of Accounting Standards Update (ASU) 6-5, Classification of Certain Cash Receipts and Cash Payments and ASU 6-8, Restricted Cash. 6

10 Consolidated Statements of Cash Flows (continued) Changes in Working Capital Components (Excluding cash, cash equivalents and restricted cash, and debt due within one year) Accounts receivable Income taxes receivable, net Inventories Regulatory balancing accounts current assets Accounts payable Reserve for Aliso Canyon costs current liabilities Net change in other working capital components Supplemental Disclosure of Cash Flow Information Interest payments, net of amounts capitalized Income tax payments, net of refunds Years ended December, 6 As adjusted for the retrospective adoption of ASU 6-5 and ASU (70) (9) 08 (2) 8 (5) (2) () 98 () 22 (22) (58) (59) (99) (9) (57)

11 Consolidated Statements of Comprehensive Income (Loss) and Changes in Equity Balance at December, Common stock 2,8 Years ended December,, 6 and 5 Accumulated Sempra other Energy nonretained comprehensive shareholders' controlling earnings income (loss) equity interests 9,9 (97),26 77 Net income comprehensive income (loss): Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Comprehensive income,50,50 Share-based compensation expense Common stock dividends declared Preferred dividends of subsidiary Issuances of common stock Repurchases of common stock Tax benefit related to share-based compensation Distributions to noncontrolling interests Equity contributed by noncontrolling interests Balance at December, 5 Cumulative-effect adjustment from change in accounting principle (7) 52 2,62 9,99 (806) (0) 5 7 (290) (2) (2), (80) (69) 07 (7) 52 (80) 2,579,7,7 0 (56) 26 (260) (7) (2), (9) (9),09 52 (75) 0 (56) 28 (75) 2,982,8, ,7 0,77 8 (78) Total 2,00,50 52 (69) 07 (7) 52 (69) Net income comprehensive income (loss): Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Comprehensive income Share-based compensation expense Common stock dividends declared Preferred dividends of subsidiary Issuances of common stock Repurchases of common stock Sale of noncontrolling interests, net offering costs Distributions to noncontrolling interests Equity contributed by noncontrolling interests Balance at December, 6 (260) (7) (2) (09) 2, ,59 () (9),57, (65) 2, (75) 0 (56),70 (65) 5,2

12 Consolidated Statements of Comprehensive Income (Loss) and Changes in Equity (continued) Balance at December, 6 Common stock 2,982 Years ended December,, 6 and 5 Accumulated Sempra other Energy nonretained comprehensive shareholders' controlling earnings income (loss) equity interests 0,77 (78) 2,95 2,290 Net income comprehensive income (loss): Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Comprehensive income Share-based compensation expense Common stock dividends declared Preferred dividends of subsidiary Issuances of common stock Repurchases of common stock Sale of noncontrolling interests, net offering costs Distributions to noncontrolling interests Equity contributed by noncontrolling interests Balance at December, (5),9 0,7 9 (626) Total 5, (826) 00 (5) (826) 2, (2) 2 2,70 82 (826) 00 (5) 96 (2) 2 5,0

13 Segment Earnings (Losses) and Capital Expenditures, Investments and Acquisitions Earnings (Losses) Sempra Utilities: San Diego Gas & Electric Southern California Gas Sempra South American Utilities Sempra Infrastructure: Sempra Mexico Sempra Renewables Sempra LNG & Midstream Parent and other Total Capital Expenditures, Investments and Acquisitions(2) Sempra Utilities: San Diego Gas & Electric Southern California Gas Sempra South American Utilities Sempra Infrastructure: Sempra Mexico Sempra Renewables Sempra LNG & Midstream Parent and other Total (2) After preferred dividends. 6 and 5 amounts were adjusted for the retrospective adoption of ASU 6-5 and Years ended December, (,0) 256,555, , (07) (6),70,99,9 9, , (52),9,, ,5

14 Schedule of Capitalization Capitalization Short-term debt Current portion of long-term debt Long-term debt Total debt Equity: Common stock Retained earnings Accumulated other comprehensive income (loss) Total Sempra Energy shareholders' equity Preferred stock of subsidiary noncontrolling interests Total equity Total capitalization December, 6,50,27 6,5 9,2.5 % ,9 0,7 (626) 2,670 2,50 5, (.8) , %,779 9,29 7,2 5.5 % ,982 0,77 (78) 2,95 2,270 5, (2.) , % ,,66 2. % ,62 9,99 (806), , (.0) , %

15 Schedule of Long-Term Debt SDG&E First mortgage bonds (collateralized by plant assets):.65% July, 8 % August 5, 2.9% payable 5 through February 22.6% September, 2 2.5% May 5, 26 6% June, % January and February 5.5% May 5, % September 5, 7 % May, 9 6% June, 9 5.5% May 5, 0.5% August 5, 0.95% November 5,.% April, 2.75% June, 7 long-term debt: OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 07), payable through April 9 (collateralized by OMEC plant assets) Capital lease obligations: Purchased-power contracts Outstanding at 2//7 Redemption prices (at 2//7 unless otherwise noted) % 00% at 06/0/9 00% SoCalGas First mortgage bonds (collateralized by plant assets): 5.5% April 5, 8.55% June 5, 8.5% September 5, 2.2% June 5, % June 5, % November 5, % November 5, 0.75% September 5, 2.5% March 5, long-term debt (uncollateralized):.875% Notes payable 6 through May 26(2) 5.67% Notes January 8, 28 Capital lease obligations Sempra Energy long-term debt (uncollateralized): 6.5% Notes June 5, 8 9.8% Notes February 5, 9.625% Notes October 7, 9 2.% Notes March 5, 2.85% Notes November 5, Notes at variable rates (2.08% at December, ) March 5, % Notes October, 22.05% Notes December, 2.55% Notes June 5, 2.75% Notes November 5, 25.25% Notes June 5, 27 6% Notes October 5, 9 Fair value adjustments for interest rate swaps, net Build-to-suit lease % at 05//26

16 Schedule of Long-Term Debt (continued) Outstanding at 2//7 Sempra South American Utilities() long-term debt (uncollateralized): Chilquinta Energía.25% Series B Bonds October 0, 0 Luz del Sur: Bank loans 5.8% to 6.% payable 6 through December 8 Corporate bonds at.75% to 8.75% payable through September 29 bonds at.77% to.6% payable through May 22 Capital lease obligations Redemption prices (at 2//7 unless otherwise noted) Sempra Mexico long-term debt (uncollateralized unless otherwise noted): Notes February 8, 8 at variable rates (2.66% after floating-to-fixed rate cross-currency swaps effective )() 6.% Notes February 2, 2 (.2% after cross-currency swap)() Notes at variable rates (.6% after floating-to-fixed rate swaps effective ), payable 6 through December 26, collateralized by plant assets.75% Notes January, 28 Bank loans including 25 at a weighted-average fixed rate of 6.67%, 78 at variable rates (weighted-average rate of 6.29% after floating-to-fixed rate swaps effective ) and 9 at variable rates (.62% at December, ), payable 6 through March 2, collateralized by plant assets.875% Notes January, Sempra Renewables long-term debt (collateralized by project assets): Loan at variable rates (.25% at December, ) payable 2 through December 28, except for 59 at.668% after floating-to-fixed rate swaps effective June % Sempra LNG & Midstream long-term debt (uncollateralized) Notes at 2.87% to.5% October, 26 00% Total long-term debt outstanding Current portion of long-term debt Unamortized discount on long-term debt Unamortized premium on long-term debt Unamortized debt issuance costs Total 8,05 (,27) () (6) 6,5 Callable long-term debt not subject to make-whole provisions. (2) Denominated in Swiss Francs. Redemption price varies based on exchange rate. () Amounts include foreign currency fluctuations. At the option of Sempra Energy, SDG&E and SoCalGas, 5 million of debt is callable at various dates: million in 8, 76 million in 9, and million in 26. In addition,.2 billion of bonds are callable subject to make-whole provisions, and the OMEC LLC project financing loan may be prepaid at OMEC LLC's option. Excluding capital lease obligations, build-to-suit lease, fair value adjustments for interest rate swaps, discounts, premiums and debt issuance costs, maturities of long-term debt are. billion in 8,. billion in 9,.0 billion in,. billion in 2, 0.7 billion in 22 and. billion thereafter.

17 Reconciliation of Sempra Energy GAAP Earnings to Sempra Energy Adjusted Earnings Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share exclude items (after the effects of taxes and, if applicable, noncontrolling interests) as follows: In : (870) million income tax expense from the impact of the Tax Cuts and Jobs Act of (TCJA) (8) million write-off of wildfire regulatory asset at SDG&E (7) million impairment of Termoeléctrica de Mexicali (TdM) assets held for sale () million associated with Aliso Canyon litigation reserves at SoCalGas 5 million deferred income tax benefit on the TdM assets held for sale 28 million of recoveries related to 6 permanent releases of pipeline capacity at Sempra LNG & Midstream In 6: 50 million noncash gain from the remeasurement of our equity method investment in IEnova Pipelines (formerly Gasoductos de Chihuahua or GdC), a joint venture between our Mexican subsidiary, IEnova, and Petróleos Mexicanos (PEMEX), in connection with IEnova s September 6 acquisition of PEMEX s 50-percent interest in GdC 78 million gain at Sempra LNG & Midstream on the September 6 sale of EnergySouth Inc., the parent company of Mobile Gas and Willmut Gas (2) million losses from the permanent releases of pipeline capacity at Sempra LNG & Midstream (80) million adjustments related to tax repairs deductions reallocated to ratepayers as a result of the 6 General Rate Case Final Decision (6 GRC FD) at the California Utilities (27) million impairment charge related to Sempra LNG & Midstream s investment in Rockies Express Pipeline LLC (Rockies Express) (90) million impairment of TdM assets held for sale (5) million deferred income tax expense related to our decision to hold TdM for sale In 5: 6 million gain on the sale of the remaining block of Sempra LNG & Midstream s Mesquite Power plant 5 million reduction in the plant closure loss related to SONGS, million of which is due to California Public Utilities Commission approval of a compliance filing related to SDG&E s authorized recovery of its investment in SONGS Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share 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 from 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 and GAAP Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

18 Reconciliation of Sempra Energy GAAP Earnings to Sempra Energy Adjusted Earnings (continued) Income tax expense (benefit) Pretax amount (Dollars in millions, except per share amounts) Sempra Energy GAAP Earnings Excluded items: Impact from the TCJA Write-off of wildfire regulatory asset Impairment of TdM assets held for sale Aliso Canyon litigation reserves Deferred income tax benefit associated with TdM Recoveries related to 6 permanent release of pipeline capacity Sempra Energy Adjusted Earnings Weighted-average number of shares outstanding, diluted (thousands) Non-controlling interests Earnings Diluted earnings per common share Year ended December, 5 7 (7) 870 () (8) (5) (28),68,70 (50) (78) ,267,9 (6) (5),298 (2) (0.02) (0.) ,00 Year ended December, 6 Sempra Energy GAAP Earnings Excluded items: Remeasurement gain in connection with GdC acquisition Gain on sale of EnergySouth Permanent release of pipeline capacity SDG&E tax repairs adjustments related to 6 GRC FD SoCalGas tax repairs adjustments related to 6 GRC FD Impairment of investment in Rockies Express Impairment of TdM assets held for sale Deferred income tax expense associated with TdM Sempra Energy Adjusted Earnings Weighted-average number of shares outstanding, diluted (thousands) (67) (0) (8) (2) () (7) () 8 82 (2) () 5.6 (.9) (0.) ,55 Year ended December, 5 Sempra Energy GAAP Earnings Excluded items: Gain on sale of Mesquite Power block 2 SONGS plant closure adjustment Sempra Energy Adjusted Earnings Weighted-average number of shares outstanding, diluted (thousands) (6) (26) (0.) (0.06) ,92 Income taxes were calculated based on applicable statutory tax rates, except for adjustments that are solely income tax. Income taxes associated with TdM were calculated based on the applicable statutory tax rate, including translation from historic to current exchange rates. An income tax benefit of 2 million associated with the TdM impairment has been fully reserved. 5

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20 Selected Financial Data and Comparative Statistics 5 - (Dollars in millions, except system average rate) Net income (including losses and earnings attributable to noncontrolling interest) Earnings attributable to common shares Common dividends to parent Capital expenditures Weighted average rate base CPUC-authorized rate of return: Rate base Common equity Achieved return on common equity Years ended December, ,555,99 8,59 8, % 0.0% 7.2% Electric volumes (millions of kilowatt hours) Residential Commercial Industrial Street and highway lighting 7.79% 0.0% 0.9% 6,577 6,76 2, ,67,9 9,0 Direct access Total System average rate (per kilowatt hour) Cooling degree days Electric customer meters at December (thousands) Residential Commercial Industrial Street and highway lighting Direct access Total , 7, % 0.0%.56% 6,685 6,700 2, ,69,55 9,6 5 7, 6,877 2,6 8 6,26,652 9, ,5,95,722, , 5,6, ,29 5,, ,2 5,26

21 Selected Financial Data and Comparative Statistics 5 - (continued) (Dollars in millions, except average cost of natural gas) Natural gas volumes delivered (billion cubic feet) Residential Commercial and industrial Electric generation plants Total Core Noncore Total Average cost of natural gas (per thousand cubic feet) Years ended December, Heating degree days Natural gas customer meters at December (thousands) Residential Commercial Electric generation and transportation Total number of natural gas customers

22 Consolidated Statements of Operations Operating revenues Electric Natural gas Total operating revenues Operating expenses Cost of electric fuel and purchased power Cost of natural gas Operation and maintenance Depreciation and amortization Franchise fees and other taxes Write-off of wildfire regulatory asset Plant closure adjustment Total operating expenses Operating income Years ended December, 6,95 5,76,75 99,25 5,79 500,29,29 6, ,76 7,87 27, ,26 990,5 5, (26),6,058 income (expense), net Allowance for equity funds used during construction Interest on regulatory balancing accounts, net Sundry, net Total other income, net () 6 Interest expense Income before income taxes Income tax expense Net income (Earnings) losses attributable to noncontrolling interest Earnings attributable to common shares () 576 (55) 2 () 07 (95) 85 (280) () 890 (28) 606 (9) 587

23 Consolidated Balance Sheets Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable trade, net Accounts receivable other, net Due from unconsolidated affiliates Income taxes receivable Inventories Prepaid expenses Regulatory assets Fixed-price contracts and other derivatives Greenhouse gas allowances Total current assets assets: Restricted cash Regulatory assets Nuclear decommissioning trusts Greenhouse gas allowances Sundry Total other assets Property, plant and equipment: Property, plant and equipment Less accumulated depreciation and amortization Property, plant and equipment, net Total assets ,00 December, , ,00 5,0 8 28,906 2,02, ,97,89,06 60,255 9,787 (,99),88 7,8 7,8 (,59),250 7,79 6,58 (,2) 2,256 6,55

24 Consolidated Balance Sheets (continued) December, 6 5 Liabilities and Equity Current liabilities: Short-term debt Accounts payable Due to unconsolidated affiliates Interest payable 0 9 Accrued compensation and benefits Accrued franchise fees Current portion of long-term debt Asset retirement obligations Regulatory liabilities 8 Fixed-price contracts and other derivatives Customer deposits Greenhouse gas obligations Total current liabilities,622,68,7 Long-term debt 5,5,658,55 Deferred credits and other liabilities: Customer advances for construction Pension and other postretirement benefit plan obligations, net of plan assets Deferred income taxes,50 2,829 2,72 Deferred investment tax credits Regulatory liabilities 2,225,725,629 Asset retirement obligations Fixed-price contracts and other derivatives Greenhouse gas obligations 72 Deferred credits and other 9 0 Total deferred credits and other liabilities 5,26 6,25 5,577 Equity: Preferred stock Common stock,8,8,8 Retained earnings,268,,89 Accumulated other comprehensive income (loss) (8) (8) (8) Total SDG&E shareholder's equity 5,598 5,6 5,22 Noncontrolling interest Total equity 5,626 5,678 5,276 Total liabilities and equity 7,8 7,79 6,55 2

25 Consolidated Statements of Cash Flows Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes and investment tax credits Write-off of wildfire regulatory asset Plant closure adjustment Fixed-price contracts and other derivatives Changes in other assets Changes in other liabilities Changes in working capital components: Accounts receivable Due to/from affiliates, net Inventories current assets Income taxes Accounts payable Regulatory balancing accounts current liabilities Net cash provided by operating activities Cash Flows from Investing Activities Expenditures for property, plant and equipment Purchases of nuclear decommissioning trust assets Proceeds from sales by nuclear decommissioning trusts Decrease (increase) in loans to affiliate, net Net cash used in investing activities Cash Flows from Financing Activities Common dividends paid Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) Increase (decrease) in short-term debt, net Capital distributions made by VIE, net Net cash used in financing activities Increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, January Cash, cash equivalents and restricted cash, December Supplemental Disclosure of Cash Flow Information Interest payments, net of amounts capitalized Income tax payments, net As adjusted for the retrospective adoption of ASU 6-5 and ASU Years ended December, (0) 5 (2) (22) (08) () (5) () (26) () (6) (25) (76) (0) (25) ,57 () (9) (5) 25 (5) 9 5 (28),2 (0) 2 (2) (2) (28) 7 (7),66 (,555) (,), 9 (,55) (,99) (,0), () 6 (,2) (,) (526) (,077) (50) 98 (86) 25 () () (2) (75) 98 () () (2) (6) (22) (00) (57) () (0) () (568) 9 29 (2)

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27 Selected Financial Data and Comparative Statistics 5 - (Dollars in millions, except average cost of natural gas) Net income (before preferred dividends) Earnings attributable to common shares Common dividends to parent Capital expenditures Weighted average rate base CPUC-authorized rate of return on: Rate base Common equity Achieved return on common equity Natural gas volumes delivered (billion cubic feet) Residential Commercial and industrial Electric generation plants Wholesale Total Core Noncore Total Average cost of natural gas (per thousand cubic feet) Heating degree days Customer meters at December (thousands) Residential Commercial Industrial Total Years ended December, ,67,9 5,9,775 Includes negligible number of electric generation plants and wholesale customers ,52, % 0.0% 0.7% 8.02% 0.0% 0.55% 8.02% 0.0%.2% , , ,96 5, ,90 5, ,90

28 Statements of Operations Operating revenues Operating expenses Cost of natural gas Operation and maintenance Depreciation and amortization Franchise fees and other taxes Impairment losses Total operating expenses Operating income Years ended December, 6,785,7,025,79 55,6 622 income (expense), net Allowance for equity funds used during construction Interest on regulatory balancing accounts, net Sundry, net Total other income, net Interest income Interest expense Income before income taxes Income tax expense Net income Preferred dividend requirements Earnings attributable to common shares 25 89, , ,89 92, , (8) 6 0 (9) 2 6 (6) 0 (02) 557 (60) (97) 9 () 50 9 (8) 558 (8) 9

29 Balance Sheets Assets Current assets: Cash and cash equivalents Accounts receivable trade, net Accounts receivable other, net Due from unconsolidated affiliates Income taxes receivable Inventories Regulatory assets Greenhouse gas allowances Total current assets December, 6 assets: Regulatory assets Insurance receivable for Aliso Canyon costs Greenhouse gas allowances Sundry Total other assets Property, plant and equipment: Property, plant and equipment Less accumulated depreciation and amortization Property, plant and equipment, net Total assets ,77, ,6,5 25 6,867 6,772 (5,66),06,59 5, (5,092) 0,252,2,7 (,900) 9,27 2,0

30 Balance Sheets (continued) Liabilities and Shareholders' Equity Current liabilities: Short-term debt Accounts payable trade Accounts payable other Due to unconsolidated affiliates Accrued compensation and benefits Regulatory liabilities Current portion of long-term debt Customer deposits Reserve for Aliso Canyon costs Greenhouse gas obligations Total current liabilities ,06 December, , ,28 Long-term debt 2,85 2,982 2,8 Deferred credits and other liabilities: Customer advances for construction Pension obligation, net of plan assets Deferred income taxes Deferred investment tax credits Regulatory liabilities Asset retirement obligations Greenhouse gas obligations Deferred credits and other Total deferred credits and other liabilities ,697, , ,709 2,5, , ,52,25,5 26 5, ,00 (2),907, ,6 (22),50, ,280 (9),9 2,0 Shareholders equity: Preferred stock Common stock Retained earnings Accumulated other comprehensive income (loss) Total shareholders equity Total liabilities and shareholders equity 27

31 Statements of Cash Flows Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes and investment tax credits Impairment losses Insurance receivable for Aliso Canyon costs Changes in other assets Changes in other liabilities Changes in working capital components: Accounts receivable Inventories current assets Accounts payable Income taxes Due to/from affiliates, net Regulatory balancing accounts Reserve for Aliso Canyon costs current liabilities Net cash provided by operating activities Years ended December, (80) () (26) (28) () (25) (9) (7) 72 (66) 9 (5) 7 5,06 7 () 6 (2) 6 6 (22) (25) 67 (90) 02 8 () 8 () Cash Flows from Investing Activities Expenditures for property, plant and equipment Decrease (increase) in loans to affiliate, net Net cash used in investing activities (,67) (,6) (,9) 50 (,269) (,52) (50) (,02) Cash Flows from Financing Activities Common dividends paid Preferred dividends paid Issuances of long-term debt Payments on long-term debt Increase (decrease) in short-term debt, net Debt issuance costs Net cash provided by financing activities () 62 (5) 552 (50) 599 (50) () 95 Decrease in cash and cash equivalents Cash and cash equivalents, January Cash and cash equivalents, December () 2 8 (6) 58 2 (27) Supplemental Disclosure of Cash Flow Information Interest payments, net of amounts capitalized Income tax payments, net

32 Sempra South American Utilities Consolidated Statements of Operations and Comparative Statistics Revenues Utilities electric Energy-related businesses Total revenues Expenses and Income Utilities: Cost of electric fuel and purchased power Energy-related businesses: Cost of purchased power cost of sales Operation and maintenance Depreciation and amortization operating income income, net Interest income Interest expense Income before income taxes and equity earnings (losses) of certain unconsolidated subsidiaries Income tax expense Equity earnings (losses), net of income tax Net income Earnings attributable to noncontrolling interests Earnings Electric distribution operations Volumes delivered (millions of kilowatt hours) Peru Chile Total Customer meters at December (thousands) Peru Chile Total Years ended December, 6,86 8,567,6 9,556 5,7 97,5 (988) (,00) (985) () (52) (70) (5) 2 28 (8) () (69) (72) (9) 2 2 (8) (22) (6) (60) (50) 22 9 (2) 289 (80) 2 (27) (80) 79 (2) (67) () (26) 75 8,92,0,955 8,752 2,990,72 8,52 2,96,8,02 70,806, ,766,05 672,725 Sempra South American Utilities is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra South American Utilities is not regulated by the California Public Utilities Commission. 29

33 Sempra South American Utilities Consolidated Balance Sheets Assets Current assets: Cash and cash equivalents Accounts receivable Due from unconsolidated affiliates Inventories Total current assets December, 6 Due from unconsolidated affiliates Goodwill and other intangible assets Deferred income taxes Property, plant and equipment, net Total assets Liabilities and Equity Current liabilities: Short-term debt Accounts payable Due to unconsolidated affiliates Income taxes payable Current portion of long-term debt Total current liabilities ,6 27, ,86, ,656, Long-term debt noncurrent liabilities: Due to unconsolidated affiliates Deferred income taxes Total other noncurrent liabilities , ,576,060 2, ,267,59, ,05,25 Equity: Sempra South American Utilities shareholders' equity Noncontrolling interests Total equity Total liabilities and equity Sempra South American Utilities is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra South American Utilities is not regulated by the California Public Utilities Commission. 0

34 Sempra South American Utilities Consolidated Statements of Cash Flows Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Equity (earnings) losses Changes in other assets Net change in working capital components Net cash provided by operating activities Years ended December, () 27 (27) () 2 (28) (5) () 228 Cash Flows from Investing Activities Expenditures for property, plant and equipment Expenditures for investments Proceeds from sale of assets Increase in loans to affiliates, net Net cash used in investing activities (2) 2 (9) (6) (9) 2 (5) (07) (5) (5) (05) Cash Flows from Financing Activities Dividends paid Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) Increase (decrease) in short-term debt, net Increase (decrease) in loans from affiliates, net Distributions to noncontrolling interests Net cash provided by (used in) financing activities 29 (2) 7 (6) 0 (6) 67 (5) (6) () (6) (75) 2 (80) 2 6 () (8) 0 (0) (8) 2 95 (05) 8 2 Effect of exchange rate changes on cash, cash equivalents and restricted cash Decrease in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, January Cash, cash equivalents and restricted cash, December 9 (0) 95 9 As adjusted for the retrospective adoption of ASU 6-8. Sempra South American Utilities is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra South American Utilities is not regulated by the California Public Utilities Commission.

35 Sempra Mexico Consolidated Statements of Operations and Comparative Statistics Revenues Utility natural gas Energy-related businesses Total revenues Expenses and Income Utility: Cost of natural gas Energy-related businesses: Cost of natural gas, electric fuel and purchased power cost of sales Operation and maintenance Depreciation and amortization Impairment losses taxes Remeasurement of equity method investment income (expense), net Gains (losses) on interest rate and foreign exchange instruments Allowance for equity funds used during construction Foreign currency transaction losses Sundry, net Total other income (expense), net Interest income Interest expense Income before income taxes and equity earnings of certain unconsolidated subsidiaries Income tax expense Equity earnings, net of income tax Net income Earnings attributable to noncontrolling interests Earnings attributable to common shares Natural gas distribution operations Volumes delivered (billion cubic feet) Customer meters at December (thousands) Power Generated and Sold Volumes (millions of kilowatt hours) Years ended December, 6 0,086, (70) (52) (9) (252) (9) (2) (56) (72) () (0) (0) (50) (77) () 67 (22) (5) (26) (70) () () 05 2 (97) (2) 27 (5) 6 () () () 5 7 (2) (227) 8 22 (7) (88) () 6 88 () (5) ,7,7,956 Includes power generated and sold at the Termoeléctrica de Mexicali natural gas-fired power plant, which is held for sale, and the Ventika wind power generation facilities. Also includes 50 percent of total power sold at the Energía Sierra Juárez wind power generation facility, in which Sempra Energy has a 50-percent ownership interest. Energía Sierra Juárez is not consolidated within Sempra Energy, and the related investment is accounted for under the equity method. Sempra Mexico and IEnova are not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and are not regulated by the California Public Utilities Commission. 2

36 Sempra Mexico Consolidated Balance Sheets Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable Due from unconsolidated affiliates Income taxes receivable Inventories Assets held for sale Total current assets December, 6 Restricted cash Regulatory assets Investments Goodwill and other intangible assets Due from unconsolidated affiliates Deferred income taxes Property, plant and equipment, net Total assets Liabilities and Equity Current liabilities: Short-term debt Accounts payable Due to unconsolidated affiliates Fixed-price contracts and other derivatives Current portion of long-term debt Liabilities held for sale Total current liabilities , ,79 5 8, , ,77 0 2,6 9 7, , ,62 5, Long-term debt,726,0 00 noncurrent liabilities: Due to unconsolidated affiliates Deferred income taxes Deferred revenue Fixed-price contracts and other derivatives Total other noncurrent liabilities , Equity: Sempra Mexico shareholders' equity Noncontrolling interests Total equity Total liabilities and equity 2,99,52,8 8,55 2,907,52, 7,52,9 68 2,02,78 Sempra Mexico and IEnova are not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and are not regulated by the California Public Utilities Commission.

37 Sempra Mexico Consolidated Statements of Cash Flows Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Impairment losses Remeasurement of equity method investment Equity earnings Fixed-price contracts and other derivatives Foreign currency transaction losses Changes in other assets Changes in other liabilities Net changes in working capital components Net cash provided by operating activities Years ended December, (8) 7 (8) () 7 (59) (67) (75) (5) (7) (89) 9 5 (22) (77) (28) (29) (96) () (967) (0) (,) (5) (,7) (02) (2) (26) Cash Flows from Financing Activities Dividends paid Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) Decrease in short-term debt, net Increase (decrease) in loans from affiliates, net Proceeds from sale of noncontrolling interests, net of 5 in offering costs(2) Distributions to noncontrolling interests Debt issuance costs Net cash provided by financing activities (),77 (,258) (96) 58 (67) () 509 () 805 (59) (25) (),569 (26),56 (8) 95 (600) 58 (2) 8 Effect of exchange rate changes on cash, cash equivalents and restricted cash (2) (2) (5) Increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, January Cash, cash equivalents and restricted cash, December Cash Flows from Investing Activities Expenditures for property, plant and equipment Expenditures for investments and acquisitions, net of cash, cash equivalents and restricted cash acquired (Increase) decrease in loans to affiliates, net Net cash used in investing activities (2) (52) 2 80 As adjusted for the retrospective adoption of ASU 6-5 and ASU 6-8. Represents proceeds from IEnova s private offerings in the U.S. and outside of Mexico and a public offering in Mexico of its common stock, and includes 5 million from Sempra Energy s participation. Sempra Mexico and IEnova are not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and are not regulated by the California Public Utilities Commission.

38 Consolidated Statements of Operations and Comparative Statistics Revenues Expenses and Income Operation and maintenance Depreciation and amortization Gain on sale of assets Equity earnings taxes income, net Interest income Interest expense Income before income taxes Income tax benefit Net income Losses attributable to noncontrolling interests Earnings Power Generated and Sold Volumes (millions of kilowatt hours) Years ended December, 6 9 (7) (8) 29 () 2 7 (5) ,75 (5) (6) (2) 2 5 () ,956 6 (50) (6) () ,85 Includes 50 percent of total power generated and sold related to solar and wind projects in which Sempra Renewables has a 50-percent ownership. These subsidiaries are not consolidated within Sempra Renewables, and the related investments are accounted for under the equity method. Sempra Renewables is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Renewables is not regulated by the California Public Utilities Commission. 5

39 Consolidated Balance Sheets Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable Due from unconsolidated affiliates Income taxes receivable Total current assets December, 6 Investments in unconsolidated affiliates Due from unconsolidated affiliates Property, plant and equipment, net Total assets Liabilities and Equity Current liabilities: Accounts payable Due to unconsolidated affiliates Current portion of long-term debt Income taxes payable Total current liabilities Long-term debt noncurrent liabilities: Deferred income taxes Asset retirement obligations Total other noncurrent liabilities Equity: Sempra Renewables shareholder s equity Noncontrolling interests Total equity Total liabilities and equity ,65 5 2, ,69,58 8 6,9,6 70, , , ,525 2, , , Sempra Renewables is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Renewables is not regulated by the California Public Utilities Commission

40 Consolidated Statements of Cash Flows Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Gain on sale of assets Equity earnings Distributions from investments Changes in other assets Changes in other liabilities Net change in working capital components Net cash provided by operating activities Cash Flows from Investing Activities Expenditures for property, plant and equipment Expenditures for investments and acquisitions Proceeds from sale of assets Distributions from investments Increase in loans to affiliates, net Net cash used in investing activities Cash Flows from Financing Activities Issuances of long-term debt Payments on long-term debt Increase (decrease) in loans from affiliates, net Proceeds from sale of noncontrolling interests, net of and 5 in offering costs, respectively(2) Distributions to noncontrolling interests Net cash provided by (used in) financing activities (Decrease) increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, January Cash, cash equivalents and restricted cash, December Years ended December, (2) (29) 9 () () () (8) (2) (97) 26 (28) (685) (85) (6) 25 (85) (,) (8) (2) 26 5 (88) (52) (7) (7) 825 (7) (98) 96 (0) 52 7 (7),285 () (07) (65) As adjusted for the retrospective adoption of ASU 6-5 and ASU 6-8. (2) Represents proceeds from the formation of tax equity limited liability companies that include certain Sempra Renewables solar and wind power generation projects. Sempra Renewables is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Renewables is not regulated by the California Public Utilities Commission. 7