Dba Sempra · NYSE:SRE
Dba Sempra — Q1 2021 Earnings Presentation
25 slides from Dba Sempra's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Earnings Results
SEMPRA ENERGY First Quarter 2021 Earnings Results May 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 Advancing our mission to be North America’s premier energy infrastructure company Progressing Sempra Infrastructure through the following transactions1 • Announced agreement to sell 20% noncontrolling interest (NCI) to KKR for $3.37B 2,3 • Launched IEnova exchange offer on April 26
Slide 5: Business Updates
BUSINESS UPDATES • Received proposed GRC decision for 2022 and 2023 attrition rates, respectively:1 CALIFORNIA UTILITIES ▪ SDG&E | 3.92% (~$87M) and 3.70% (~$86M) ▪ SoCalGas | 4.53% (~$142M) and 3.97% (~$130M) GROWTH PLATFORMS • Oncor continued strong organic growth connecting ~19,000 premises in Q1
Slide 6: Sempra Infrastructure $3.37B KKR Transaction
SEMPRA INFRASTRUCTURE 1 SEMPRA 2 $3.37B INFRASTRUCTURE $25.2B CASH PROCEEDS ENTERPRISE VALUE Highlighting value to our RENEWABLES owners 1 LNG Mid-2021 USE OF PROCEEDS EXPECTED Fund future growth ENERGY NETWORKS CLOSE focused on U.S. Utilities and strengthen the Expected to create scale, unlock port
Slide 7: Q1-2021 Financial Results
Q1-2021 FINANCIAL RESULTS Three months ended March 31, (Dollars, except EPS, and shares in millions) 2021 2020 (Unaudited) GAAP Earnings $ 874 $ 760 Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives 1 (3) (150) Net Unrealized Losses (Gains) on Commodity Derivatives 1
Slide 8: Q1-2021 Adjusted Earnings Drivers
Q1-2021 ADJUSTED EARNINGS DRIVERS 3 $15M ($56M) $30M $35M $900M 1 $62M 2 $73M 1 $741M Q1-2020 Lower Cameron CPUC Base Higher Other Sale of Q1-2021 Parent LNG Operating TX Utilities South Losses Earnings Margin at Earnings America SoCalGas 1. Represents a non-GAAP financial measure. GAAP Earnings for
Slide 9: Summary
SUMMARY Advancing our mission to be North America’s premier energy infrastructure company by consistently growing our three business platforms • California Utilities • Texas Utilities • Sempra Infrastructure Progressing Sempra Infrastructure through the following transactions1 • Announced agreement
Slide 10: Appendix
APPENDIX 10
Slide 11: Sustainability Goals
SUSTAINABILITY GOALS ACCELERATING THE ENERGY TRANSITION DECARBONIZATION DIVERSIFICATION DIGITALIZATION • Reducing the carbon content • Bringing new lower- to zero- • Improving operational efficiency, of energy carbon fuel choices to every safety and service market we serve • Including GHG emissions
Slide 12: Appendix: Business Unit Earnings
APPENDIX Business Unit Earnings 12
Slide 13: CA Utilities | SDG&E
CA UTILITIES | SDG&E Three months ended March 31, (Unaudited, dollars in millions) 2021 2020 SDG&E GAAP Earnings $ 212 $ 262 Q1-2021 earnings are lower than Q1-2020 primarily due to: • $26M lower electric transmission margin, including favorable impacts from the March 2020 FERC-approved TO5 settleme
Slide 14: CA Utilities | SoCalGas
CA UTILITIES | SOCALGAS Three months ended March 31, (Unaudited, dollars in millions) 2021 2020 SoCalGas GAAP Earnings $ 407 $ 303 Impacts Associated with Aliso Canyon Litigation - 72 1 SoCalGas Adjusted Earnings $ 407 $ 375 Q1-2021 earnings are higher than Q1-2020 adjusted earnings primarily due to
Slide 15: TX Utilities | Sempra Texas Utilities
TX UTILITIES | SEMPRA TEXAS UTILITIES Three months ended March 31, (Unaudited, dollars in millions) 2021 2020 Sempra Texas Utilities GAAP Earnings $ 135 $ 105 Q1-2021 earnings are higher than Q1-2020 primarily due to higher equity earnings driven by: • Increased revenues from rate updates to reflect
Slide 16: Infrastructure | Sempra Mexico
INFRASTRUCTURE | SEMPRA MEXICO 1 Three months ended March 31, (Unaudited, dollars in millions) 2021 2020 Sempra Mexico GAAP Earnings $ 57 $ 191 Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives 2 (3) (127) Net Unrealized Losses on Commodity Derivatives 2 9 2 Sempra M
Slide 17: Infrastructure | Sempra LNG
INFRASTRUCTURE | SEMPRA LNG Three months ended March 31, (Unaudited, dollars in millions) 2021 2020 Sempra LNG GAAP Earnings $ 146 $ 75 Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives 1 - 1 Net Unrealized Losses (Gains) on Commodity Derivatives 1 20 (43) Sempra LNG
Slide 18: Parent & Other
PARENT & OTHER Three months ended March 31, (Unaudited, dollars in millions) 2021 2020 Parent & Other GAAP Losses $ (83) $ (248) Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives 1 - (8) Losses from Investment in RBS Sempra Commodities LLP - 100 Parent & Other Adjust
Slide 19: Discontinued Operations (Sempra South American Utilities)
DISCONTINUED OPERATIONS (SEMPRA SOUTH AMERICAN UTILITIES) 1 Three months ended March 31, (Unaudited, dollars in millions) 2021 2020 Discontinued Operations GAAP Earnings $ - $ 72 Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives 2 - (16) Discontinued Operations Adjus
Slide 20: Appendix: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures 20
Slide 21: Adjusted Earnings and Adjusted EPS (Unaudited)
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Sempra Energy 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 March 31, 2021: • $3M impact from foreign currency and
Slide 22: Adjusted Earnings and Adjusted EPS (Unaudited)
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Non- Income tax Non- Pretax Income tax controlling Pretax (benefit) controlling 1 1 amount benefit interests Earnings amount expense interests Earnings (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 202
Slide 23: Adjusted Earnings (Losses) by Business Units (Unaudited)
ADJUSTED EARNINGS (LOSSES) BY BUSINESS UNITS (UNAUDITED) 1,2 Three months ended March 31, 2021 Sempra Sempra (Dollars in millions) Texas Sempra Parent & Discontinued Energy SDG&E SoCalGas Utilities Mexico Sempra LNG Other Operations Consolidated GAAP Earnings (Losses) $ 212 $ 407 $ 135 $ 57 $ 146 $
Slide 24: 2021 Adjusted EPS Guidance Range (Unaudited)
2021 ADJUSTED EPS GUIDANCE RANGE (UNAUDITED) Sempra Energy 2021 Adjusted EPS Guidance Range of $7.50 to $8.10 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows: • $3M impact from foreign currency and inflation and associated undesignated deriv
Slide 25: Business Unit Adjusted Earnings (Unaudited)
BUSINESS UNIT ADJUSTED EARNINGS (UNAUDITED) 1 (Dollars, except EPS, and shares in millions) Year ended December 31, 2020 Sempra North Sempra California Texas Sempra Sempra Sempra American Parent & Discontinued Energy SDG&E SoCalGas Utilities Utilities Mexico LNG Renewables Infrastructure Other Opera