Slide 1: Second Quarter 2021 Earnings Results
Second Quarter 2021 Earnings Results August 5, 2021
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 • Business Updates • Financial Update • Summary 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY Executing across our three growth platforms in what we believe are the most attractive markets in North America • Announcing higher projected 5-year capital plan at Oncor of $14.0B1 • Progressing series of Sempra Infrastructure transactions2 Reporting Q2-2021 adjusted earnings per
Slide 5: Business Updates
BUSINESS UPDATES • SDG&E received CPUC approval of 2021 Wildfire Mitigation Plan Update in July • SoCalGas began RNG flows at two additional biomethane projects in support of goal to provide 20% RNG by 20301 • Oncor announced 2022 – 2026 capital plan of $14.0B, $1.8B increase over the previous 5-yea
Slide 6: Oncor Capital Update
ONCOR CAPITAL UPDATE Oncor Projected Capital Plan1 ECONOMIC DEVELOPMENT • Prospects for new relocations, $14.0B expansions, and electric service for 2021 expected to exceed 2020 by 70% and 2019 by 170% GENERATION INTERCONNECTIONS $12.2B • Active generation interconnection requests for over 47 GW of
Slide 7: Q2-2021 Financial Results
Q2-2021 FINANCIAL RESULTS 1. Q2-2020 and YTD-2020 Adjusted Earnings and Adjusted EPS have been updated to exclude this item to conform to current year presentation. 2. Represents a non-GAAP financial measure. See Appendix for information regarding non-GAAP financial measures and descriptions of adju
Slide 8: Q2-2021 Adjusted Earnings Drivers
Q2-2021 ADJUSTED EARNINGS DRIVERS 1 $501M 1 ($126M) 2 $22M $504M $22M $34M 3 $35M $38M 3 ($22M) Q2-2020 CA Utilities Loss of Cameron Parent incl. CA Utilities Tax Benefit Other Q2-2021 Regulatory Earnings LNG Preferred Income Tax at Sempra Decision due to Earnings Dividends Benefits from LNG in 2020
Slide 9: Summary
SUMMARY Executing across our three growth platforms in what we believe are the most attractive markets in North America • Announcing higher projected 5-year capital plan at Oncor of $14.0B1 • Progressing series of Sempra Infrastructure transactions2 Reporting Q2-2021 adjusted EPS of $1.63 and YTD-20
Slide 10: Appendix: Business Unit Earnings
APPENDIX Business Unit Earnings 10
Slide 11: Sempra California | SDG&E
SEMPRA CALIFORNIA | SDG&E Q2-2021 earnings are lower than Q2-2020 primarily due to: • $62M decrease due to the release of a regulatory liability in 2020 related to 2016-2018 income tax expense forecasting differences, partially offset by • $20M higher income tax benefits from forecasted flow-through
Slide 12: Sempra California | SoCalGas
SEMPRA CALIFORNIA | SOCALGAS Q2-2021 earnings are lower than Q2-2020 primarily due to: • $64M decrease due to the release of a regulatory liability in 2020 related to 2016-2018 income tax expense forecasting differences, and • $9M lower CPUC base operating margin, net of operating expenses, partiall
Slide 13: Sempra Texas | Sempra Texas Utilities
SEMPRA TEXAS | SEMPRA TEXAS UTILITIES Q2-2021 earnings are lower than Q2-2020 primarily due to lower equity earnings driven by: • Increased operating costs and expenses attributable to invested capital, partially offset by • Increased revenues from rate updates to reflect increases in invested capit
Slide 14: Sempra Infrastructure | Sempra Mexico
SEMPRA INFRASTRUCTURE | SEMPRA MEXICO 2 Q2-2021 adjusted earnings are in-line with Q2-2020 1. Adjusted Earnings for Q2-2020 and YTD-2020 have been updated to exclude this item to conform to the current year presentation. 2. Adjusted Earnings represents a non-GAAP financial measure. Adjusted Earnings
Slide 15: Sempra Infrastructure | Sempra LNG
SEMPRA INFRASTRUCTURE | SEMPRA LNG 2 Q2-2021 adjusted earnings are higher than Q2-2020 primarily due to: • $38M higher equity earnings from Cameron LNG JV primarily due to the three-train liquefaction project achieving full commercial operations in August 2020, and • $22M income tax benefit in 2021
Slide 16: Parent & Other
PARENT & OTHER 2 Q2-2021 adjusted losses are lower than Q2-2020 primarily due to: • $17M lower preferred stock dividends as a result of $26M lower dividends due to the mandatory conversion of all Series A preferred stock in January 2021, offset by $9M higher dividends due to the issuance of Series C
Slide 17: Discontinued Operations (Sempra South American Utilities)
DISCONTINUED OPERATIONS (SEMPRA SOUTH AMERICAN UTILITIES) 1 Q2-2021 earnings are lower than Q2-2020 adjusted earnings due to the sales of our Peruvian businesses in April 2020 3 and Chilean businesses in June 2020 1. Discontinued Operations include the operations of Sempra’s South American businesse
Slide 18: Appendix: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures 18
Slide 19: Adjusted Earnings and Adjusted EPS (Unaudited)
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2021 and 2020 as follows: In the three months ended June 30, 2021: • $(72)M impact from foreign currency and infl
Slide 20: Adjusted Earnings and Adjusted EPS (Unaudited)
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Pretax Income tax expense Non- controlling Pretax Income tax expense Non- controlling amount (benefit)1 interests Earnings amount (benefit)1 interests Earnings (Dollars in millions, except per share amounts; shares in thousands) Three months ended June
Slide 21: Adjusted Earnings (Losses) by Business Units (Unaudited)
ADJUSTED EARNINGS (LOSSES) BY BUSINESS UNITS (UNAUDITED) 1,2 Three months ended June 30, 2021 Sempra (Dollars in millions) Texas Sempra Parent & Discontinued Sempra SDG&E SoCalGas Utilities Mexico Sempra LNG Other Operations Consolidated GAAP Earnings (Losses) $ 186 $ 94 $ 138 $ 4 $ 47 $ (45) $ - $
Slide 22: 2021 Adjusted EPS Guidance Range (Unaudited)
2021 ADJUSTED EPS GUIDANCE RANGE (UNAUDITED) Sempra 2021 updated Adjusted EPS Guidance Range of $7.75 to $8.35 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows: • $(69)M impact from foreign currency and inflation and associated undesignated d