SEMPRA ENERGY Fourth Quarter 2020 Earnings Results February 25, 2021
TABLE OF CONTENTS Executive Summary 2020 Accomplishments U.S. Utilities Platform Infrastructure Platform Business Updates Financial Update 2021 Priorities Key Takeaways 3
EXECUTIVE SUMMARY Advancing our mission to be North Americas premier energy infrastructure company Reporting Q4-2020 adjusted earnings per common share (EPS) of 1.90 compared to Q4-2019 1 EPS of 1.55 1 Reporting strong FY-2020…
2020 ACCOMPLISHMENTS Realigned business strategy to Announced proposed Sempra STRATEGIC help enable the energy transition Infrastructure Partners 4 transactions Completed multi-year capital Launched sustainability strategy…
U.S. UTILITIES PLATFORM ONE OF NORTH AMERICAS LARGEST ENERGY NETWORKS1 2B+ Adjusted Earnings2 37B Rate Base3 36M Consumers Served 284,000+ mi T+D Lines1 56,000 EVs in SDG&Es service territory4 5 10.1% Authorized Blended…
SEMPRA INFRASTRUCTURE PARTNERS 1 VALUE PROPOSITION SEMPRAS OBJECTIVES Simplify our business model Highlight value of infrastructure platform Renewables Support cross-border renewables Expand LNG growth LNG Improve business…
SEMPRA INFRASTRUCTURE PARTNERS 1 DEMONSTRATIVE TIMELINE UPDATE Dec 2020 Feb 2021 Announce Receive Announced Advanced sale of NCI in regulatory and integrated bid + diligence Sempra other approvals transactions process…
BUSINESS UPDATES U.S. Utilities executed record 5.8B 2020 capital program focused on safety and reliability, exceeding 2019 by 25%1 SoCalGas achieved 20% methane reductions below 2015 levels in 2020, which is five years earlier than…
Q4 + FY-2020 FINANCIAL RESULTS Three months ended Years ended December 31, December 31, (Dollars, except EPS, and shares, in millions) 2020 2019 2020 2019 (Unaudited) GAAP Earnings 414 447 3,764 2,055 Gain on Sale of South American…
FY-2020 ADJUSTED EARNINGS DRIVERS 1 41M 8M 2,350M 51M 4 57M 3 63M 81M 284M 1 2 1,911M (146M) FY-2019 Sale of Cameron CA Utilities Lower CA Utilities Higher LNG Other FY-2020 South LNG Base Parent Regulatory TX Utilities…
STRONG FINANCIAL EXECUTION Adjusted Earnings + Adjusted EPS1 Executed disciplined capital rotation program while delivering top-tier adjusted 8.03 EPS growth2 6.78 Transacted 27B enterprise value while:3 5.57 2,350M Improving…
5-YEAR CAPITAL PLAN 2021 2025 Base Capital Plan3 U.S. Utilities 90% of Sempras 5-year capital plan is dedicated to U.S. Utilities 1 Sempra 1.1B increase in 2021 2022 capital plan SoCalGas Texas 9.2B Utilities U.S. Utilities…
PROJECTED RATE BASE GROWTH U.S. Utilities Rate Base (B)1 55.5 52.8 49.8 46.4 42.4 24.0 22.8 36.8 21.6 70% 20.4 Avg. Projected 18.9 Electric 17.5 Rate Base 8.8 8.3 7.9 7.3 6.6 5.7 5.6 5.1 5.5 5.2 2.6 4.9 2.5 2.3 4.5…
2021 PRIORITIES KEY ACTION ITEMS Close proposed IEnova exchange offer + simplify Execute health + safety programs to help mitigate 1 COVID-19 risk for our employees 6 Sempra LNG + IEnova ownership under Sempra Infrastructure…
SEMPRA VALUE PROPOSITION Top-tier T+D infrastructure platform in attractive markets Robust capital investments + rate base growth Strong earnings visibility + EPS growth Sustainable dividend growth 1 Commitment to innovation,…
SUMMARY Advanced our mission to be North Americas premier energy infrastructure company, even in a challenging economic and operating environment in 2020 1 Reporting Q4-2020 adjusted EPS of 1.90 compared to Q4-2019 EPS of 1.55 1…
APPENDIX 18
FINANCIAL HIGHLIGHTS 2019 2020 ACTUALS1 ACTUALS1 2 1.9B ADJUSTED EARNINGS 2.4B 3 6.0B CAPITAL DEPLOYED 7.0B 4 25.7B NET DEBT 23.2B U.S. UTILITY AUTHORIZED 10.0% BLENDED ROE 5 10.1% 1.0B COMMON DIVIDENDS PAID 1.2B 65.7B…
STRENGTHENING BALANCE SHEET Total Debt-to-Capitalization1 Achieved key targeted metrics FFO-to-Debt of 17% 2 57% 56% Debt-to-Capitalization of 49% 54% Sale of Solar Completed capital rotation program Assets resulting in a…
2020 ESG ACHIEVEMENTS 1 Cleaner Energy Decarbonization Leadership Energy Transition SDG&E service territory has 16% SoCalGas is on track to meet its LNG has potential to lower global rooftop solar and has the 1 solar goal of 5%…
LNG PROJECTS OVERVIEW Nameplate Offtake 1 2 2 Project Capacity Capacity Status OPERATIONS Full commercial operations under tolling agreements achieved CAMERON 15 Mtpa 12 Mtpa Full run-rate 400M 450M earnings LNG PHASE 1 3 DOE…
HYDROGEN DEMONSTRATION PROJECTS Project Technology Overview UTILITIES BLENDING Test hydrogen blending impact on pipeline integrity in order to gain understanding of how to safely incorporate CA hydrogen, a zero-emission fuel,…
APPENDIX Business Unit Earnings 24
SDG&E Three months ended Years ended December 31, December 31, (Dollars in millions) 2020 2019 2020 2019 (Unaudited) SDG&E GAAP Earnings 191 185 824 767 Q4-2020 earnings are higher than Q4-2019 earnings primarily due to: 20M higher…
SOCALGAS Three months ended Years ended December 31, December 31, (Dollars in millions) 2020 2019 2020 2019 (Unaudited) SoCalGas GAAP Earnings 79 204 504 641 Impacts Associated with Aliso Canyon Litigation and Regulatory Matters 139…
SEMPRA TEXAS UTILITIES Three months ended Years ended December 31, December 31, (Dollars in millions) 2020 2019 2020 2019 (Unaudited) Sempra Texas Utilities GAAP Earnings 121 109 579 528 Q4-2020 earnings are higher than Q4-2019…
SEMPRA MEXICO 1 Three months ended Years ended December 31, December 31, (Dollars in millions) 2020 2019 2020 2019 (Unaudited) Sempra Mexico GAAP (Losses) Earnings (43) 39 259 253 Q4-2020 losses compared to Q4-2019 earnings…
SEMPRA LNG Three months ended Years ended December 31, December 31, (Dollars in millions) 2020 2019 2020 2019 (Unaudited) Sempra LNG GAAP Earnings (Losses) 113 (19) 320 (6) Q4-2020 earnings compared to Q4-2019 losses primarily due…
PARENT & OTHER Three months ended Years ended December 31, December 31, (Dollars in millions) 2020 2019 2020 2019 (Unaudited) Parent & Other GAAP Losses (47) (132) (562) (515) Losses from Investment in RBS Sempra Commodities LLP - -…
DISCONTINUED OPERATIONS 1 (SEMPRA SOUTH AMERICAN UTILITIES) Three months ended Years ended December 31, December 31, (Dollars in millions) 2020 2019 2020 2019 (Unaudited) Discontinued Operations GAAP Earnings - 61 1,840 328 Gain on…
APPENDIX Non-GAAP Financial Measures + Other Reconciliations 32
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 2020 and 2019 as follows: In the three…
ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Pretax Income tax (benefit) Pretax Income tax expense amount expense1 Earnings amount (benefit)1 Earnings (Dollars in millions, except per share amounts; shares in thousands) Three…
ADJUSTED EARNINGS (LOSSES) BY BUSINESS UNITS (UNAUDITED) 1 Three months ended December 31, 2020 Sempra Sempra (Dollars in millions) Texas Sempra Parent & Discontinued Energy SDG&E SoCalGas Utilities Mexico Sempra LNG Other…
2020 U.S. UTILITIES ADJUSTED EARNINGS 1 (UNAUDITED) Income tax 2 (Dollars in millions) Pretax amount benefit Earnings Year ended December 31, 2020 U.S. Utilities GAAP Earnings 1,907 Excluded items: Impacts Associated with Aliso…
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: (233)M from impacts…
2018 AND 2017 ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Sempra Energy Adjusted Earnings and Adjusted Earnings Per Common Share (Adjusted EPS) exclude items (after the effects of income taxes and, if applicable, noncontrolling…
2018 AND 2017 ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Income tax Non- Income tax Non- Pretax expense controlling Pretax expense controlling 1 1 amount (benefit) interests Earnings amount (benefit) interests Earnings (Dollars…
2020 AND 2019 CAPITAL DEPLOYED (UNAUDITED) (Dollars in millions) 2020 2019 Sempra Energy Expenditures for property, plant and equipment 4,676 3,708 Expenditures for investments and acquisitions 652 1,797 Total Capital Expenditures,…
2020 AND 2019 U.S. UTILITIES CAPITAL DEPLOYED (UNAUDITED) (Dollars in millions) 2020 2019 U.S. Utilities SDG&E capital expenditures 1,942 1,522 SoCalGas capital expenditures 1,843 1,439 Sempra Texas Utilities investments and acquisitions…
FUNDS FROM OPERATIONS (FFO) TO DEBT RATIO (UNAUDITED) Funds from Operations (FFO), and thereby the ratio of FFO to Debt, are non-GAAP financial measures. As defined and used by management, FFO, which is comprised of Net Cash Provided by…
FUNDS FROM OPERATIONS (FFO) TO DEBT RATIO AND NET DEBT (UNAUDITED) (Dollars in millions) Sempra 2020 Net Cash Provided by Operating Activities 2,591 Exclude: Decreases in working capital 550 Cash flows from discontinued operations…
INCREASE IN 2021 + 2022 CAPITAL PLAN 2020 - 2024 Capital Plan 2021 - 2025 Capital Plan Low High Low High (Dollars in millions) 2021 2021 2021 Sempra U.S. Utilities 5,700 to 6,400 6,075 to 6,575 SDG&E 2,150 2,350 2,300 2,500 SoCalGas…
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