Dba Sempra · NYSE:SRE
Dba Sempra — Q3 2020 Earnings Presentation
29 slides from Dba Sempra's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Earnings Results
Sempra Energy Third Quarter 2020 Earnings Results November 5, 2020
Slide 2: Information Regarding Forward-Looking Statements
Information Regarding Forward-Looking Statements This presentation 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
Slide 3: Table of Contents
Table of Contents ▪ Executive Summary ▪ T+D Infrastructure Platform ▪ High-Performance Culture ▪ 2020 Execution ▪ Business Updates ▪ Financial Update ▪ Summary 3
Slide 4: Executive Summary
Executive Summary ▪ Strategic focus on T+D infrastructure in North America’s most attractive markets • Committed to operational excellence and safety • Continued execution of utility-centered capital plan • Achieved full commercial operations under tolling agreements at Cameron LNG Phase 1 • Announc
Slide 5: T+D Infrastructure Platform
T+D Infrastructure Platform Capital investments at our U.S. Utility Infrastructure businesses support strong organic growth and improved earnings visibility Earnings Growth + Visibility Projected Earnings Mix(2) ▪ Constructive regulatory environments U.S. Utility ▪ ~9% projected rate base CAGR(1) In
Slide 6: High-Performance Culture
High-Performance Culture Sempra’s vision, mission and values reflect a strong commitment to high performance with a focus on People | Priorities | Culture Path to Premier High-Performing Culture ▪ Nationally recognized leader in Diversity + Inclusion(1) ▪ Mgmt. diversity: Women 35% | People of Color
Slide 7: 2020 Execution
2020 Execution Q1-2020 Q2-2020 Q3-2020 Q4-2020 ✓ Launched record ✓ Increased ‘20 Adj. (1) ✓ Executed $500M ✓ Guided to high end 5-year capital plan EPS guidance range share buyback of increased ‘20 Adj. EPS guidance range(1) ✓ Finalized FERC ROE ✓ Sold businesses in (2) ✓ Achieved COD at ✓ Announced
Slide 8: Business Updates
Business Updates Continuing Strong Execution During Q3 CA Utilities ▪ Launched a comprehensive sustainability strategy to advance carbon neutrality at SDG&E ▪ Clean Energy | Committed to placing two green hydrogen projects into service by 2022 at SDG&E and awarded funding by DOE to advance clean aut
Slide 9: Oncor Capital Plan Update
Oncor Capital Plan Update Continued organic growth in Texas drives increased five-year capital plan of $12.2B, an increase of over 60% from the 2017 regulatory commitment(1) ▪ Oncor continues to see increased Oncor’s 5-Year Capital Plan ($B)(1) premise and load growth within its $12.2 service territ
Slide 10: Third Quarter 2020 Results
Third Quarter 2020 Results ~17% increase in year-to-date adjusted EPS over the same period last year(1) Three months ended Nine months ended September 30, September 30, (Dollars, except EPS, and shares, in millions) 2020 2019 2020 2019 (Unaudited) GAAP Earnings $ 351 $ 813 $ 3,350 $ 1,608 Loss (Gain
Slide 11: Q3-2020 Adjusted Earnings Drivers
Q3-2020 Adjusted Earnings Drivers (1) (1) $425M ($56M) (1) (3) $7M $380M ($32M) $21M $79M (2) ($32M) ($29M) ($3M) Q3-2019 Loss of Lower FX + Energy TX Utilities Cameron 2019 Asset Other Q3-2020 Earnings due Income Tax Inflation at Efficiency Earnings LNG Impairment to S. America Benefits at Sempra R
Slide 12: Summary
Summary ▪ Strategic focus on T+D infrastructure in North America’s most attractive markets • Committed to operational excellence and safety • Continued execution of utility-centered capital plan • Achieved full commercial operations under tolling agreements at Cameron LNG Phase 1 • Announced higher
Slide 13: Appendix
Appendix
Slide 14: Key Recognitions
Key Recognitions We are proud that others have recognized our commitment to doing the right thing 2018 2019 2020 ✓Thomson Reuters iX Global Diversity + Inclusion ✓Wall Street Journal's “Management Top 250” ✓National Association of Corporate Directors’ NXT Index (No. 1 U.S. utility) ranking in utilit
Slide 15: SDG&E Sustainability Strategy + Goals
SDG&E Sustainability Strategy + Goals Announced strategy to enable an equitable transition to a cleaner energy economy and to advance carbon neutrality Do the Right Thing Champion People Shape the Future Environmental Stewardship Community Outreach Reimagine Transportation ▪ Divert 100% of our organ
Slide 16: Appendix Business Unit Earnings
Appendix Business Unit Earnings
Slide 17: SDG&E
SDG&E Three months ended Nine months ended September 30, September 30, (Unaudited, dollars in millions) 2020 2019 2020 2019 SDG&E GAAP Earnings $ 178 $ 263 $ 633 $ 582 Retroactive Impact of 2019 GRC FD for first half of 2019 - (66) - - SDG&E Adjusted Earnings(1) $ 178 $ 197 $ 633 $ 582 ▪ Q3-2020 ear
Slide 18: SoCalGas
SoCalGas Three months ended Nine months ended September 30, September 30, (Unaudited, dollars in millions) 2020 2019 2020 2019 SoCalGas GAAP (Losses) Earnings $ (24) $ 143 $ 425 $ 437 Impacts Associated with Aliso Canyon Litigation and Regulatory Matters 22 - 94 - Retroactive Impact of 2019 GRC FD f
Slide 19: Sempra Texas Utilities
Sempra Texas Utilities Three months ended Nine months ended September 30, September 30, (Unaudited, dollars in millions) 2020 2019 2020 2019 Sempra Texas Utilities GAAP Earnings $ 209 $ 212 $ 458 $ 419 ▪ Q3-2020 earnings are lower than Q3-2019 primarily due to: • Unfavorable weather and increased op
Slide 20: Sempra Mexico
Sempra Mexico (1) Three months ended Nine months ended September 30, September 30, (Unaudited, dollars in millions) 2020 2019 2020 2019 Sempra Mexico GAAP Earnings $ 50 $ 84 $ 302 $ 214 ▪ Q3-2020 earnings are lower than Q3-2019 primarily due to: • $32M unfavorable impacts from foreign currency and i
Slide 21: Sempra LNG
Sempra LNG Three months ended Nine months ended September 30, September 30, (Unaudited, dollars in millions) 2020 2019 2020 2019 Sempra LNG GAAP Earnings $ 71 $ 2 $ 207 $ 13 ▪ Q3-2020 earnings are higher than Q3-2019 primarily due to: • $79M higher equity earnings from Cameron LNG JV primarily due t
Slide 22: Parent & Other
Parent & Other Three months ended Nine months ended September 30, September 30, (Unaudited, dollars in millions) 2020 2019 2020 2019 Parent & Other GAAP Losses $ (126) $ (139) $ (515) $ (383) Losses from Investment in RBS Sempra Commodities LLP - - 100 - Reduction in Tax Valuation Allowance Against
Slide 23: Discontinued Operations (Sempra South American Utilities)
Discontinued Operations (Sempra South American Utilities) (1) Three months ended Nine months ended September 30, September 30, (Unaudited, dollars in millions) 2020 2019 2020 2019 Discontinued Operations GAAP (Losses) Earnings $ (7) $ 248 $ 1,840 $ 267 Loss (Gain) on Sale of South American Businesse
Slide 24: Appendix Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures
Slide 25: Adjusted Earnings and Adjusted EPS (Unaudited)
Adjusted Earnings and Adjusted EPS (Unaudited) Adjusted Earnings (Losses) and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2020 and 2019 as follows: In the three months ended September 30, 2020: • $(22)M from impacts associated with A
Slide 26: Adjusted Earnings and Adjusted EPS (Unaudited)
Adjusted Earnings and Adjusted EPS (Unaudited) Income tax Income tax Pretax (benefit) Pretax expense amount expense(1) Earnings amount (benefit)(1) Earnings (Dollars in millions, except per share amounts; shares in thousands) Three months ended September 30, 2020 Three months ended September 30, 201
Slide 27: Adjusted Earnings (Losses) by Business Units (Unaudited)
Adjusted Earnings (Losses) by Business Units (Unaudited) (1) Three months ended September 30, 2020 Sempra Sempra (Dollars in millions) Texas Sempra Parent & Discontinued Energy SDG&E SoCalGas Utilities Mexico Sempra LNG Other Operations Consolidated GAAP Earnings (Losses) $ 178 $ (24) $ 209 $ 50 $ 7
Slide 28: 2020 Adjusted EPS Guidance Range (Unaudited)
2020 Adjusted 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)M from impacts associated with Aliso Canyon natural gas storage facility li
Slide 29: Projected Earnings (Losses) by Business Units (Unaudited)
Projected Earnings (Losses) by Business Units (Unaudited) (Dollars, except EPS, and shares in millions) 2021 Earnings Guidance(1) North Sempra Sempra Texas U.S Sempra American Energy SDG&E SoCalGas Utilities Utilities Mexico Sempra LNG Infrastructure Parent & Other Consolidated Projected GAAP Earnin