2023 Statistical Report
Unaudited Supplement
to the Financial Report
Shareholder Services
2023
Investors with general questions regarding Sempra or Southern
California Gas Company securities should contact the company at:
Statistical Report
Sempra
Shareholder Services
488 8th Avenue
San Diego, CA 92101
Unaudited Supplement to the 2023 Annual Report
Telephone: (877) 736-7727
Email: [email protected]
Sempra™ is a leading North American energy infrastructure company
focused on delivering energy to nearly 40 million consumers. As owner of
one of the largest energy networks on the continent, Sempra is
electrifying and improving the energy resilience of some of the world's
most significant economic markets, including California, Texas, Mexico
and global energy markets. The company is recognized as a leader in
sustainable business practices and for its high-performance culture
focused on safety and operational excellence, as demonstrated by
Sempra's inclusion in the Dow Jones Sustainability Index North America
and in The Wall Street Journal's Best Managed Companies.
Investor Relations
Security analysts, portfolio managers and other members of the financial
community should contact:
Investor Relations
Jenell McKay, Director
Telephone: (619) 696-2901
Sempra Common Stock:
Trading Symbols: SRE and SRE.MX
New York Stock Exchange and Mexican Stock Exchange
Sempra Series C Preferred Stock is not listed on any national securities
exchange
Sempra 5.75% Junior Subordinated Notes Due 2079:
Trading Symbol: SREA
New York Stock Exchange
Southern California Gas Company Preferred Stock:
SoCalGas preferred stock is not listed on any national securities exchange
and trades over-the-counter
[PAGE INTENTIONALLY LEFT BLANK]
Table of Contents
Sempra
Selected Financial Data ....................................................................................................................................................................................................................
1
Consolidated Statements of Operations .........................................................................................................................................................................................
2
Consolidated Balance Sheets ..........................................................................................................................................................................................................
3
Consolidated Statements of Cash Flows .......................................................................................................................................................................................
5
Segment Earnings (Losses) and Capital Expenditures, Investments and Acquisitions ..........................................................................................................
7
Schedule of Capitalization and Debt-to-Capitalization Ratios .....................................................................................................................................................
8
Schedule of Long-Term Debt ............................................................................................................................................................................................................
9
Reconciliation of Sempra Adjusted Earnings to Sempra GAAP Earnings ................................................................................................................................
11
Sempra California
Consolidated Statements of Operations .........................................................................................................................................................................................
14
Consolidated Balance Sheets ..........................................................................................................................................................................................................
15
Consolidated Statements of Cash Flows .......................................................................................................................................................................................
17
San Diego Gas & Electric Company (SDG&E
®
)
Selected Financial Data and Comparative Statistics ............................................................................................................................................................
19
Statements of Operations .........................................................................................................................................................................................................
22
Balance Sheets...........................................................................................................................................................................................................................
23
Statements of Cash Flows ........................................................................................................................................................................................................
25
Southern California Gas Company (SoCalGas
®
)
Selected Financial Data and Comparative Statistics ............................................................................................................................................................
27
Statements of Operations .........................................................................................................................................................................................................
28
Balance Sheets...........................................................................................................................................................................................................................
29
Statements of Cash Flows ........................................................................................................................................................................................................
31
Sempra Texas Utilities
Selected Financial Data and Comparative Statistics ....................................................................................................................................................................
32
Sempra Infrastructure
Consolidated Statements of Operations and Statistics ................................................................................................................................................................
33
Consolidated Balance Sheets ..........................................................................................................................................................................................................
34
Consolidated Statements of Cash Flows .......................................................................................................................................................................................
35
Shareholder Information and Research Coverage
37
Selected Financial Data
At December 31 or for the years then ended,
(Dollars in millions, except per share amounts; shares in millions) 2023 2022 2021
Earnings attributable to common shares
$ 3,030 $ 2,094 $ 1,254
Earnings per common share (EPS), diluted $ 4.79 $ 3.31 $ 2.01
Adjusted earnings
(1)
$ 2,920 $ 2,915 $ 2,637
Adjusted EPS, diluted
(1)
$ 4.61 $ 4.61 $ 4.21
Weighted-average common shares outstanding, diluted 632.7 632.8 626.1
Dividends declared per common share
$ 2.38 $ 2.29 $ 2.20
Dividend yield per common share 3.2 % 3.0 % 3.3 %
Dividend payout ratio per common share, diluted 49.7 % 69.2 % 109.7 %
Ratio of market closing price to book value per common share 1.70 1.85 1.67
Book value per common share $ 44.00 $ 41.72 $ 39.59
Common shares outstanding 631.4 628.7 633.8
Total assets
$ 87,181 $ 78,574 $ 72,045
Long-term debt and finance leases (excludes current portion) $ 27,759 $ 24,548 $ 21,068
Short-term debt
(2)
$ 3,317 $ 4,371 $ 3,577
Sempra shareholders’ equity $ 28,675 $ 27,115 $ 25,981
Effective income tax rate 15 % 28 % 12 %
(1)
Please refer to pages 15, 16 and 17 for an explanation and reconciliation of these non-GAAP measures.
(2)
Includes long-term debt due within one year and current portion of finance lease obligations.
1
Consolidated Statements of Operations
Years ended December 31,
(Dollars in millions, except per share amounts; shares in thousands)
2023 2022 2021
REVENUES
Utilities:
Natural gas $ 9,495 $ 7,868 $ 6,333
Electric 4,334 4,783 4,658
Energy-related businesses 2,891 1,788 1,866
Total revenues 16,720 14,439 12,857
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas (3,719) (2,603) (1,597)
Cost of electric fuel and purchased power (375) (937) (1,010)
Energy-related businesses cost of sales (548) (942) (611)
Operation and maintenance (5,459) (4,746) (4,341)
Aliso Canyon litigation and regulatory matters — (259) (1,593)
Depreciation and amortization (2,227) (2,019) (1,855)
Franchise fees and other taxes (677) (635) (596)
Gain on sale of assets 1 — 36
Other income, net 131 24 58
Interest income 89 75 69
Interest expense (1,309) (1,054) (1,198)
Income before income taxes and equity earnings 2,627 1,343 219
Income tax expense (490) (556) (99)
Equity earnings 1,481 1,498 1,343
Net income 3,618 2,285 1,463
Earnings attributable to noncontrolling interests (543) (146) (145)
Preferred dividends (44) (44) (63)
Preferred dividends of subsidiary (1) (1) (1)
Earnings attributable to common shares $ 3,030 $ 2,094 $ 1,254
Basic EPS:
Earnings $ 4.81 $ 3.32 $ 2.01
Weighted-average common shares outstanding 630,296 630,318 623,510
Diluted EPS:
Earnings $ 4.79 $ 3.31 $ 2.01
Weighted-average common shares outstanding 632,733 632,757 626,073
2
Consolidated Balance Sheets
December 31,
(Dollars in millions) 2023 2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 236 $ 370 $ 559
Restricted cash 49 40 19
Accounts receivable – trade, net 2,151 2,635 2,071
Accounts receivable – other, net 561 685 398
Due from unconsolidated affiliates 31 54 23
Income taxes receivable 94 113 79
Inventories 482 403 389
Prepaid expenses 273 268 260
Regulatory assets 226 351 271
Fixed-price contracts and other derivatives 122 803 179
Greenhouse gas allowances 1,189 141 97
Other current assets 56 49 30
Total current assets 5,470 5,912 4,375
Other assets:
Restricted cash 104 52 3
Due from unconsolidated affiliates — — 637
Regulatory assets 3,771 2,588 2,011
Insurance receivable for Aliso Canyon costs — — 360
Greenhouse gas allowances 301 796 422
Nuclear decommissioning trusts 872 841 1,012
Dedicated assets in support of certain benefit plans 549 505 567
Deferred income taxes 129 135 151
Right-of-use assets – operating leases 723 655 594
Investment in Oncor Holdings 14,266 13,665 12,947
Other investments 2,244 2,012 1,525
Goodwill 1,602 1,602 1,602
Other intangible assets 318 344 370
Wildfire fund 269 303 331
Other long-term assets 1,603 1,382 1,244
Total other assets 26,751 24,880 23,776
Property, plant and equipment:
Property, plant and equipment 72,495 63,893 58,940
Less accumulated depreciation and amortization (17,535) (16,111) (15,046)
Property, plant and equipment, net 54,960 47,782 43,894
Total assets $ 87,181 $ 78,574 $ 72,045
3
Consolidated Balance Sheets (Continued)
December 31,
(Dollars in millions) 2023 2022 2021
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 2,342 $ 3,352 $ 3,471
Accounts payable – trade 2,211 1,994 1,671
Accounts payable – other 224 275 178
Due to unconsolidated affiliates 5 — —
Dividends and interest payable 691 621 563
Accrued compensation and benefits 526 484 479
Regulatory liabilities 553 504 359
Current portion of long-term debt and finance leases 975 1,019 106
Reserve for Aliso Canyon costs 31 129 1,980
Greenhouse gas obligations 1,189 141 97
Other current liabilities 1,343 1,380 1,131
Total current liabilities 10,090 9,899 10,035
Long-term debt and finance leases 27,759 24,548 21,068
Deferred credits and other liabilities:
Due to unconsolidated affiliates 307 301 287
Regulatory liabilities 3,739 3,341 3,402
Greenhouse gas obligations — 565 225
Pension and other postretirement benefit plan obligations, net of plan assets 407 410 687
Deferred income taxes 5,254 4,591 3,477
Asset retirement obligations 3,642 3,546 3,375
Deferred credits and other 2,329 2,117 2,070
Total deferred credits and other liabilities 15,678 14,871 13,523
Equity:
Preferred stock 889 889 889
Common stock 12,204 12,160 11,862
Retained earnings 15,732 14,201 13,548
Accumulated other comprehensive income (loss) (150) (135) (318)
Total Sempra shareholders’ equity 28,675 27,115 25,981
Preferred stock of subsidiary 20 20 20
Other noncontrolling interests 4,959 2,121 1,418
Total equity 33,654 29,256 27,419
Total liabilities and equity $ 87,181 $ 78,574 $ 72,045
4
Consolidated Statements of Cash Flows
Years ended December 31,
(Dollars in millions)
2023 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 3,618 $ 2,285 $ 1,463
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,227
2,019
1,855
Deferred income taxes and investment tax credits
249
392
(78)
Gain on sale of assets
(1)
—
(36)
Equity earnings
(1,481)
(1,498)
(1,343)
Foreign currency transaction (gains) losses, net
(2)
24
18
Share-based compensation expense
80
71
63
Fixed-price contracts and other derivatives (666) 863 206
Bad debt expense 458 122 55
Other (11) 32 115
Net change in working capital components:
Accounts receivable 168 (976) (599)
Due to/from unconsolidated affiliates, net 26 (31) (1)
Income taxes receivable/payable, net 142 (29) (38)
Inventories (80) (17) (87)
Other current assets 11 (1,608) (220)
Accounts payable (270) 430 263
Regulatory balancing accounts, net 260 36 249
Reserve for Aliso Canyon costs (98) (1,851) 1,532
Other current liabilities 1,270 228 (105)
Insurance receivable for Aliso Canyon costs — 360 85
Distributions from investments 912 854 941
Changes in other noncurrent assets and liabilities, net (594) (564) (496)
Net cash provided by operating activities 6,218 1,142 3,842
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment (8,397) (5,357) (5,015)
Expenditures for investments and acquisitions (382) (376) (633)
Proceeds from sale of assets 3 — 38
Distributions from investments — — 366
Purchases of nuclear decommissioning and other trust assets (610) (700) (961)
Proceeds from sales of nuclear decommissioning and other trust assets 661 762 961
Advances to unconsolidated affiliates — — (8)
Repayments of advances to unconsolidated affiliates — 626 38
Disbursement for note receivable — — (305)
Other 9 6 11
Net cash used in investing activities $ (8,716) $ (5,039) $ (5,508)
5
Consolidated Statements of Cash Flows (Continued)
Years ended December 31,
(Dollars in millions)
2023 2022 2021
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid $ (1,483) $ (1,430) $ (1,331)
Preferred dividends paid (44) (44) (99)
Issuances of common stock, net 145 4 5
Repurchases of common stock (32) (478) (339)
Issuances of debt (maturities greater than 90 days) 7,669 9,984 3,773
Payments on debt (maturities greater than 90 days) and finance leases (6,294) (4,510) (5,489)
Increase (decrease) in short-term debt, net 552 (1,266) 1,913
Advances from unconsolidated affiliates 31 28 40
Proceeds from sales of noncontrolling interests, net 1,219 1,732 3,206
Purchases of noncontrolling interests — — (224)
Distributions to noncontrolling interests (730) (237) —
Contributions from noncontrolling interests 1,570 31 4
Settlement of cross-currency swaps (99) — —
Other (85) (35) (199)
Net cash provided by financing activities 2,419 3,779 1,260
Effect of exchange rate changes on cash, cash equivalents and restricted cash 6 (1) 2
Decrease in cash, cash equivalents and restricted cash (73) (119) (404)
Cash, cash equivalents and restricted cash, January 1 462 581 985
Cash, cash equivalents and restricted cash, December 31 $ 389 $ 462 $ 581
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized $ 1,172 $ 1,014 $ 1,163
Income tax payments, net of refunds 197 284 230
6
Segment Earnings (Losses) and Capital Expenditures,
Investments and Acquisitions
Years ended December 31,
(Dollars in millions) 2023 2022 2021
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
Sempra California
$ 1,747 $ 1,514 $ 392
Sempra Texas Utilities
694 736 616
Sempra Infrastructure
877 310 682
Parent and other
(288) (466) (436)
Total
$ 3,030 $ 2,094 $ 1,254
CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS
Sempra California
$ 4,560 $ 4,466 $ 4,204
Sempra Texas Utilities
367 346 566
Sempra Infrastructure
3,847 914 869
Parent and other
5 7 9
Total
$ 8,779 $ 5,733 $ 5,648
7
Schedule of Capitalization and Debt-to-Capitalization Ratios
December 31,
(Dollars in millions) 2023 2022 2021
CAPITALIZATION
Short-term debt $ 2,342 3.6 % $ 3,352 5.8 % $ 3,471 6.7 %
Current portion of long-term debt and finance leases 975 1.5 1,019 1.7 106 0.2
Long-term debt and finance leases 27,759 42.9 24,548 42.2 21,068 40.5
Total debt 31,076 48.0 28,919 49.7 24,645 47.4
Equity:
Preferred stock 889 1.4 889 1.5 889 1.7
Common stock 12,204 18.8 12,160 20.9 11,862 22.8
Retained earnings 15,732 24.3 14,201 24.4 13,548 26.0
Accumulated other comprehensive loss (150) (0.2) (135) (0.2) (318) (0.6)
Total Sempra shareholders' equity 28,675 44.3 27,115 46.6 25,981 49.9
Preferred stock of subsidiary
20
—
20
—
20
—
Other noncontrolling interests
4,959
7.7
2,121
3.7
1,418
2.7
Total equity 33,654 52.0 29,256 50.3 27,419 52.6
Total capitalization $ 64,730 100.0 % $ 58,175 100.0 % $ 52,064 100.0 %
8
Schedule of Long-Term Debt
Outstanding at
(Dollars in millions) December 31, 2023
SDG&E:
First mortgage bonds (collateralized by plant assets):
2.5% May 15, 2026
$ 500
6% June 1, 2026
250
4.95% August 15, 2028
600
1.7% October 1, 2030
800
3% March 15, 2032
500
5.35% May 15, 2035
250
6.125% September 15, 2037
250
6% June 1, 2039
300
5.35% May 15, 2040
250
4.5% August 15, 2040
500
3.95% November 15, 2041
250
4.3% April 1, 2042
250
3.75% June 1, 2047
400
4.15% May 15, 2048
400
4.1% June 15, 2049
400
3.32% April 15, 2050
400
2.95% August 15, 2051
750
3.7% March 15, 2052
500
5.35% April 1, 2053 800
Other long-term debt (uncollateralized):
Notes at variable rates (5.99% at December 31, 2023) February 18, 2024
(1)
400
Finance lease obligations:
Power purchase agreements 1,166
Other 67
SoCalGas:
First mortgage bonds (collateralized by plant assets):
3.15% September 15, 2024 500
3.2% June 15, 2025 350
2.6% June 15, 2026 500
2.55% February 1, 2030 650
5.20% June 1, 2033 500
5.75% November 15, 2035 250
5.125% November 15, 2040 300
3.75% September 15, 2042 350
4.45% March 15, 2044 250
4.125% June 1, 2048 400
4.3% January 15, 2049 550
3.95% February 15, 2050 350
6.35% November 15, 2052 600
5.75% June 1, 2053 500
Other long-term debt (uncollateralized):
1.875% Notes May 14, 2026
(1)
4
2.95% Notes April 15, 2027 700
5.67% Notes January 18, 2028
(2)
5
Finance lease obligations 107
9
Schedule of Long-Term Debt (Continued)
Outstanding at
(Dollars in millions) December 31, 2023
Other Sempra:
Other long-term debt (uncollateralized):
$ 750
550
750
1,000
500
700
1,000
750
800
1,000
758
Sempra Infrastructure - Other long-term debt (uncollateralized unless otherwise noted):
832
300
Loan including $200 at variable rates (5.33% after floating-to-fixed rate swaps
effective 2023) and $58 at variable rates (weighted-average rate of 7.37% at
December 31, 2023) March 20, 2030, collateralized by plant assets
(1)
258
400
96
96
96
231
540
800
Total long-term debt outstanding
29,056
Current portion of long-term debt
(975)
Unamortized discount on long-term debt
(108)
Unamortized debt issuance costs
(214)
Total
$ 27,759
(1)
Callable long-term debt not subject to make-whole provisions.
(2)
Debt is not callable.
At the option of Sempra, SDG&E and SoCalGas, $2.9 billion of debt is callable subject to premiums. In addition, at the option of Sempra, SDG&E and SoCalGas, $24.8
billion of debt is callable subject to premiums and make-whole provisions.
Excluding finance lease obligations, discounts and debt issuance costs, maturities of long-term debt are $0.9 billion in 2024, $2.0 billion in 2025, $1.9 billion in 2026, $1.5
billion in 2027, $2.0 billion in 2028 and $19.5 billion thereafter.
10
Reconciliation of Sempra Adjusted Earnings to
Sempra GAAP Earnings
Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:
In 2023:
■
$(44) million equity losses from investment in Oncor Electric Delivery Holdings Company LLC related to a write-off of rate base disallowances resulting from the Public
Utility Commission of Texas' final order in Oncor Electric Delivery Company LLC's comprehensive base rate review
■
$(235) million impact from foreign currency and inflation on our monetary positions in Mexico
■
$366 million net unrealized gains on commodity derivatives
■
$(17) million net unrealized losses on a contingent interest rate swap related to the initial phase of the Port Arthur LNG liquefaction project
■ $40 million equity earnings from investment in RBS Sempra Commodities LLP based on a legal settlement
In 2022:
■
$(199) million impact associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at Sempra California
■
$(164) million impact from foreign currency and inflation on our monetary positions in Mexico
■
$(355) million net unrealized losses on commodity derivatives
■
$17 million net unrealized gains on a contingent interest rate swap related to the proposed initial phase of the Port Arthur LNG liquefaction project
■
$(120) million deferred income tax expense associated with the change in our indefinite reinvestment assertion as a result of progress in obtaining regulatory
approvals necessary to close the sale of a 10% noncontrolling interest in Sempra Infrastructure Partners, LP to Abu Dhabi Investment Authority
In 2021:
■
$(1,148) million impact associated with Aliso Canyon natural gas storage facility litigation at Sempra California
■
$(44) million impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
■
$(47) million net unrealized losses on commodity derivatives
■
$(30) million in charges associated with hedge termination costs and a write-off of unamortized debt issuance costs from the early redemptions of debt at Sempra
Infrastructure in October 2021
■
$(92) million in charges associated with make-whole premiums and a write-off of unamortized discount and debt issuance costs from the early redemptions of debt at
Parent and other in December 2021
■
$(72) million net income tax expense related to the utilization of a deferred income tax asset upon completing the sale of a 20% noncontrolling interest in Sempra
Infrastructure Partners, LP to KKR Pinnacle Investor L.P. in October 2021
■
$50 million equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending value
added tax matters and related legal costs at our equity method investment at Parent and other
Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of
America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature.
These non-GAAP financial measures also exclude the impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated
derivatives and unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the
next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra’s business operations 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 GAAP Earnings and GAAP EPS,
which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.
11
Reconciliation of Sempra Adjusted Earnings to Sempra
GAAP Earnings (Continued)
Pretax
amount
Income tax
expense
(benefit)
(1)
Noncontrolling
interests Earnings
(Dollars in millions, except EPS; shares in thousands) Year ended December 31, 2023
Sempra GAAP Earnings $ 3,030
Excluded items:
Equity losses from write-off of rate base disallowances resulting from Public Utility
Commission of Texas' final order in Oncor Electric Delivery Company LLC's
comprehensive base rate review $ — $ — $ — 44
Impact from foreign currency and inflation on monetary positions in Mexico 62 283 (110) 235
Net unrealized gains on commodity derivatives (722) 144 212 (366)
Net unrealized losses on contingent interest rate swap related to initial phase of the
Port Arthur LNG liquefaction project 33 (6) (10) 17
Earnings from investment in RBS Sempra Commodities LLP (40) — — (40)
Sempra Adjusted Earnings $ 2,920
Diluted EPS:
Weighted-average common shares outstanding, diluted 632,733
Sempra GAAP EPS $ 4.79
Sempra Adjusted EPS $ 4.61
Year ended December 31, 2022
Sempra GAAP Earnings $ 2,094
Excluded items:
Impact associated with Aliso Canyon litigation and regulatory matters $ 259 $ (60) $ — 199
Impact from foreign currency and inflation on monetary positions in Mexico 49 169 (54) 164
Net unrealized losses on commodity derivatives 669 (138) (176) 355
Net unrealized gains on contingent interest rate swap related to proposed initial phase
of the Port Arthur LNG liquefaction project (33) 6 10 (17)
Deferred income tax expense associated with change in indefinite reinvestment
assertion related to sale of noncontrolling interest to Abu Dhabi Investment Authority — 120 — 120
Sempra Adjusted Earnings $ 2,915
Diluted EPS:
Weighted-average common shares outstanding, diluted 632,757
Sempra GAAP EPS $ 3.31
Sempra Adjusted EPS $ 4.61
12
Reconciliation of Sempra Adjusted Earnings to
Sempra GAAP Earnings (Continued)
Pretax
amount
Income tax
(benefit)
expense
(1)
Noncontrolling
interests Earnings
(Dollars in millions, except EPS; shares in thousands) Year ended December 31, 2021
Sempra GAAP Earnings $ 1,254
Excluded items:
Impact associated with Aliso Canyon litigation $ 1,593 $ (445) $ — 1,148
Impact from foreign currency and inflation on monetary positions in Mexico and
associated undesignated derivatives 44 4 (4) 44
Net unrealized losses on commodity derivatives 23 (18) 42 47
Costs associated with early redemptions of debt 180 (51) (7) 122
Net income tax expense related to utilization of deferred income tax asset — 72 — 72
Earnings from investment in RBS Sempra Commodities LLP (50) — — (50)
Sempra Adjusted Earnings $ 2,637
Diluted EPS:
Weighted-average common shares outstanding, diluted 626,073
Sempra GAAP EPS $ 2.01
Sempra Adjusted EPS $ 4.21
(1)
Except for adjustments that are solely income tax, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. We record
equity losses for our investment in Oncor Electric Delivery Holdings Company LLC net of income tax. We did not record an income tax expense for the equity
earnings from our investment in RBS Sempra Commodities LLP because, even though a portion may be deductible under United Kingdom tax law, it is not probable
that the deduction will reduce United Kingdom taxes.
13
Consolidated Statements of Operations
Years ended December 31,
(Dollars in millions) 2023 2022 2021
Operating revenues:
Natural gas
$ 9,425 $ 7,792 $ 6,266
Electric
4,336 4,785 4,660
Total operating revenues
13,761 12,577 10,926
Operating expenses:
Cost of natural gas
3,747 2,562 1,578
Cost of electric fuel and purchased power
445 994 1,069
Operation and maintenance
4,591 4,012 3,707
Aliso Canyon litigation and regulatory matters
— 259 1,593
Depreciation and amortization
1,937 1,743 1,605
Franchise fees and other taxes
659 620 573
Total operating expenses
11,379 10,190 10,125
Operating income
2,382 2,387 801
Other income, net:
Allowance for equity funds used during construction
140 143 129
Non-service components of net periodic benefit cost
(99) (53) (53)
Interest on regulatory balancing accounts, net
79 26 6
Sundry, net
(27) (32) (32)
Total other income, net
93 84 50
Interest income
24 11 2
Interest expense
(782) (647) (569)
Income before income taxes
1,717 1,835 284
Income tax benefit (expense)
31 (320) 109
Net Income
1,748 1,515 393
Preferred dividends
(1) (1) (1)
Earnings attributable to common shares
$ 1,747 $ 1,514 $ 392
14
Consolidated Balance Sheets
December 31,
(Dollars in millions) 2023 2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 52 $ 28 $ 62
Accounts receivable – trade, net 1,855 2,094 1,799
Accounts receivable – other, net 243 403 136
Due from unconsolidated affiliates 2 5 1
Income taxes receivable, net 246 — 32
Inventories 430 293 295
Prepaid expenses 232 229 217
Regulatory assets 223 351 271
Fixed-price contracts and other derivatives 27 131 78
Greenhouse gas allowances 1,108 133 88
Other current assets 26 20 3
Total current assets 4,444 3,687 2,982
Other assets:
Regulatory assets 3,683 2,510 1,934
Insurance receivable for Aliso Canyon costs — — 360
Greenhouse gas allowances 264 747 401
Nuclear decommissioning trusts 872 841 1,012
Right-of-use assets – operating leases 397 323 242
Wildfire fund 269 303 331
Other long-term assets 779 729 782
Total other assets 6,264 5,453 5,062
Property, plant and equipment:
Property, plant and equipment 57,943 53,632 49,560
Less accumulated depreciation and amortization (15,221) (14,076) (13,269)
Property, plant and equipment, net 42,722 39,556 36,291
Total assets $ 53,430 $ 48,696 $ 44,335
15
Consolidated Balance Sheets (Continued)
December 31,
(Dollars in millions) 2023 2022 2021
LIABILITIES AND SHAREHOLDER’S EQUITY
Current liabilities:
Short-term debt $ 946 $ 1,105 $ 1,161
Accounts payable - trade 1,587 1,665 1,342
Accounts payable - other 216 208 163
Due to unconsolidated affiliates 90 99 86
Interest payable 139 122 92
Accrued compensation and benefits 358 349 350
Accrued franchise fees 169 175 121
Regulatory liabilities 550 504 359
Current portion of long-term debt and finance leases 964 807 60
Reserve for Aliso Canyon costs
31 129 1,980
Greenhouse gas obligations 1,108 133 88
Asset retirement obligations 189 166 163
Other current liabilities 636 508 410
Total current liabilities 6,983 5,970 6,375
Long-term debt and finance leases 15,741 14,277 12,354
Deferred credits and other liabilities:
Regulatory liabilities 3,736 3,341 3,402
Greenhouse gas obligations — 524 205
Pension obligation, net of plan assets 310 319 576
Deferred income taxes 4,459 3,846 3,314
Asset retirement obligations 3,552 3,464 3,309
Deferred credits and other 1,337 1,190 1,109
Total deferred credits and other liabilities 13,394 12,684 11,915
Shareholder’s equity:
Preferred stock 22 22 22
Common stock 3,976 3,976 3,326
Retained earnings 13,345 11,798 10,384
Accumulated other comprehensive income (loss) (31) (31) (41)
Total shareholder’s equity 17,312 15,765 13,691
Total liabilities and shareholder’s equity $ 53,430 $ 48,696 $ 44,335
16
Consolidated Statements of Cash Flows
Years ended December 31,
(Dollars in millions) 2023 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,748 $ 1,515 $ 393
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,937 1,743 1,605
Deferred income taxes and investment tax credits 147 239 (341)
Bad debt expense 406 116 42
Other (47) (46) (37)
Net change in working capital components:
Accounts receivable (6) (675) (488)
Due to/from unconsolidated affiliates, net (5) 10 8
Income taxes receivable/payable, net (244) 32 (63)
Inventories (137) 2 (37)
Other current assets (1,070) (219) (21)
Accounts payable (148) 344 188
Regulatory balancing accounts, net 260 36 249
Reserve for Aliso Canyon costs (98) (1,851) 1,532
Other current liabilities 1,176 247 (184)
Insurance Receivable for Aliso Canyon costs — 360 85
Changes in noncurrent assets and liabilities, net (594) (578) (522)
Net cash provided by operating activities 3,325 1,275 2,409
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment (4,560) (4,466) (4,204)
Purchases of nuclear decommissioning trust assets (532) (586) (961)
Proceeds from sales of nuclear decommissioning trust assets 592 639 961
Other 8 8 7
Net cash used in investing activities (4,492) (4,405) (4,197)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid (200) (100) (375)
Preferred dividends paid (1) (1) (1)
Equity contribution from Sempra — 650 800
Issuances of debt (maturities greater than 90 days) 2,386 3,489 1,120
Payments on debt (maturities greater than 90 days) and finance leases (1,610) (440) (625)
Increase (decrease) in short-term debt, net 641 (481) 673
Debt issuance costs (23) (21) (8)
Other (2) — —
Net cash provided by financing activities 1,191 3,096 1,584
Increase (decrease) in cash and cash equivalents 24 (34) (204)
Cash and cash equivalents, January 1 28 62 266
Cash and cash equivalents, December 31 $ 52 $ 28 $ 62
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized $ 751 $ 604 $ 553
Income tax payments, net of refunds 82 48 294
17
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18
Selected Financial Data and Comparative Statistics
Years ended or at December 31,
(Dollars in millions)
2023 2022 2021
Net income/Earnings attributable to common shares
$ 936 $ 915 $ 819
Common dividends to parent
$ 100 $ 100 $ 300
Capital expenditures
$ 2,540 $ 2,473 $ 2,220
Weighted-average rate base
$ 15,220 $ 13,780 $ 12,527
FERC-authorized return on common equity
10.60 % 10.60 % 10.60 %
CPUC-authorized return on common equity
9.95 % 10.20 % 10.20 %
Achieved return on common equity
9.87 % 10.57 % 10.25 %
Electric volumes delivered (millions of kilowatt hours)
(1)
Residential
2,004 3,940 5,657
Commercial
1,868 2,850 4,128
Industrial
670 909 1,398
Street and highway lighting
77 101 115
4,619 7,800 11,298
Community Choice Aggregation and Direct Access
(2)
12,228 9,900 5,916
Total
16,847 17,700 17,214
Cooling degree days
626 1,036 812
Electric customer meters (thousands)
Residential
383 615 1,282
Commercial
41 72 72
Industrial
1 1 1
Street and highway lighting
2 3 4
427 691 1,359
Community Choice Aggregation and Direct Access
(2)
1,090 813 137
Total
1,517 1,504 1,496
(1)
Includes intercompany sales.
(2)
Several jurisdictions in SDG&E's territory have implemented Community Choice Aggregation, including the City of San Diego in 2022. Additional jurisdictions are in
the process of implementing or considering Community Choice Aggregation.
19
Selected Financial Data and Comparative Statistics (Continued)
Years ended or at December 31,
2023 2022 2021
Natural gas volumes delivered (billion cubic feet)
(1)
Residential
31 29
31
Commercial and industrial
28 27
25
Electric generation plants 28 28 28
Total 87 84 84
Core
53
49 50
Noncore 34 35 34
Total 87 84 84
Average cost of natural gas (per thousand cubic feet) $ 11.05 $ 8.01 $ 5.30
Heating degree days 1,916 1,718 1,510
Natural gas customer meters (thousands)
Residential
883
878 874
Commercial
29
29 29
Electric generation and transportation 3 3 3
Total 915 910 906
(1)
Includes intercompany sales.
20
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21
Statements of Operations
Years ended December 31,
(Dollars in millions) 2023 2022 2021
Operating revenues:
Electric
$ 4,349 $ 4,795 $ 4,666
Natural gas
1,248 1,043 838
Total operating revenues
5,597 5,838 5,504
Operating expenses:
Cost of electric fuel and purchased power
445 994 1,069
Cost of natural gas
532 363 242
Operation and maintenance
1,846 1,677 1,587
Depreciation and amortization
1,098 982 889
Franchise fees and other taxes
381 373 350
Total operating expenses
4,302 4,389 4,137
Operating income
1,295 1,449 1,367
Other income, net:
Allowance for equity funds used during construction
86 88 81
Non-service components of net periodic benefit cost
(19) (11) (13)
Interest on regulatory balancing accounts, net
42 18 6
Sundry, net
(12) (3) (10)
Total other income, net
97 92 64
Interest income
15 5 1
Interest expense
(497) (449) (412)
Income before income taxes
910 1,097 1,020
Income tax benefit (expense)
26 (182) (201)
Net income/Earnings attributable to common shares
$ 936 $ 915 $ 819
22
Balance Sheets
December 31,
(Dollars in millions) 2023 2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 50 $ 7 $ 25
Accounts receivable – trade, net 870 799 715
Accounts receivable – other, net 141 110 78
Income taxes receivable, net 236 — 9
Inventories 153 134 123
Prepaid expenses 165 179 174
Regulatory assets 19 247 231
Fixed-price contracts and other derivatives 25 113 58
Greenhouse gas allowances 158 22 13
Other current assets 6 19 5
Total current assets 1,823 1,630 1,431
Other assets:
Regulatory assets 1,968 1,219 786
Greenhouse gas allowances 202 196 111
Nuclear decommissioning trusts 872 841 1,012
Right-of-use assets – operating leases 368 281 185
Wildfire fund 269 303 331
Other long-term assets 134 146 154
Total other assets 3,813 2,986 2,579
Property, plant and equipment:
Property, plant and equipment 30,918 28,574 26,456
Less accumulated depreciation and amortization (7,369) (6,768) (6,408)
Property, plant and equipment, net 23,549 21,806 20,048
Total assets $ 29,185 $ 26,422 $ 24,058
23
Balance Sheets (Continued)
December 31,
(Dollars in millions) 2023 2022 2021
LIABILITIES AND SHAREHOLDER’S EQUITY
Current liabilities:
Short-term debt $ — $ 205 $ 776
Accounts payable 808 744 588
Due to unconsolidated affiliates 73 135 97
Interest payable 81 63 50
Accrued compensation and benefits 145 140 148
Accrued franchise fees 112 120 74
Regulatory liabilities 447 110 14
Current portion of long-term debt and finance leases 441 489 49
Greenhouse gas obligations 158 22 13
Asset retirement obligations 116 98 86
Other current liabilities 216 193 216
Total current liabilities 2,597 2,319 2,111
Long-term debt and finance leases 9,453 8,497 7,581
Deferred credits and other liabilities:
Regulatory liabilities 2,534 2,298 2,302
Greenhouse gas obligations — 81 31
Pension obligation, net of plan assets 79 42 25
Deferred income taxes 2,873 2,540 2,275
Asset retirement obligations 778 789 804
Deferred credits and other 969 789 680
Total deferred credits and other liabilities 7,233 6,539 6,117
Shareholder’s equity:
Preferred stock — — —
Common stock 1,660 1,660 1,660
Retained earnings 8,250 7,414 6,599
Accumulated other comprehensive income (loss) (8) (7) (10)
Total shareholder’s equity 9,902 9,067 8,249
Total liabilities and shareholder’s equity $ 29,185 $ 26,422 $ 24,058
24
Statements of Cash Flows
Years ended December 31,
(Dollars in millions) 2023 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 936 $ 915 $ 819
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,098 982 889
Deferred income taxes and investment tax credits 135 93 153
Bad debt expense 112 46 16
Other (35) (34) (30)
Net change in working capital components:
Accounts receivable (213) (163) (105)
Due to/from unconsolidated affiliates, net (62) 38 33
Income taxes receivable/payable, net (236) 9 (20)
Inventories (19) (11) (19)
Other current assets (17) (80) —
Accounts payable 31 153 7
Regulatory balancing accounts, net 571 (10) (57)
Other current liabilities 129 62 (92)
Changes in noncurrent assets and liabilities, net (494) (271) (218)
Net cash provided by operating activities 1,936 1,729 1,376
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment (2,540) (2,473) (2,220)
Purchases of nuclear decommissioning trust assets (532) (586) (961)
Proceeds from sales of nuclear decommissioning trust assets 592 639 961
Other 8 8 7
Net cash used in investing activities (2,472) (2,412) (2,213)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid (100) (100) (300)
Issuances of debt (maturities greater than 90 days) 1,389 1,395 1,120
Payments on debt (maturities greater than 90 days) and finance leases (490) (425) (613)
(Decrease) increase in short-term debt, net (205) (196) 401
Debt issuance costs (13) (9) (8)
Other (2) — —
Net cash provided by financing activities 579 665 600
Increase (decrease) in cash and cash equivalents 43 (18) (237)
Cash and cash equivalents, January 1 7 25 262
Cash and cash equivalents, December 31 $ 50 $ 7 $ 25
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized $ 472 $ 431 $ 402
Income tax payments, net of refunds 76 79 67
25
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26
Selected Financial Data and Comparative Statistics
Years ended or at December 31,
(Dollars in millions, except average cost of natural gas) 2023 2022 2021
Net income (loss) (before preferred dividends)
$ 812 $ 600 $ (426)
Earnings (losses) attributable to common shares
$ 811 $ 599 $ (427)
Common dividends to parent
$ 100 $ — $ 75
Capital expenditures
$ 2,020 $ 1,993 $ 1,984
Weighted-average rate base
$ 11,671 $ 10,494
$ 9,371
CPUC-authorized rate of return on:
Rate base
7.10 % 7.30 % 7.30 %
Common equity
9.80 % 10.05 % 10.05 %
Achieved return on common equity
11.53 % 9.90 % (8.10) %
Natural gas volumes delivered (billion cubic feet)
(1)
Residential
228 213 226
Commercial and industrial
359 356 369
Electric generation plants
152 182 151
Wholesale
131 139 136
Total
870 890 882
Core
347 326 336
Noncore
523 564 546
Total
870 890 882
Average cost of natural gas (per thousand cubic feet)
$ 10.47 $ 7.48 $ 4.53
Heating degree days
1,446 1,203 1,251
Natural gas customer meters (thousands)
Residential
5,891 5,857 5,824
Commercial
248 249 248
Industrial
24 24 25
Total
(2)
6,163 6,130 6,097
(1)
Includes intercompany sales.
(2)
Includes negligible number of electric generation plants and wholesale customers.
27
Statements of Operations
Years ended December 31,
(Dollars in millions) 2023 2022 2021
Operating revenues
$ 8,289 $ 6,840 $ 5,515
Operating expenses:
Cost of natural gas
3,264 2,233 1,369
Operation and maintenance
2,821 2,402 2,180
Aliso Canyon litigation and regulatory matters
— 259 1,593
Depreciation and amortization
839 761 716
Franchise fees and other taxes
278 247 223
Total operating expenses
7,202 5,902 6,081
Operating income (loss)
1,087 938 (566)
Other expense, net:
Allowance for equity funds used during construction
54 55 48
Non-service component of net periodic benefit cost
(80) (42) (40)
Interest on regulatory balancing accounts, net
37 8 —
Sundry, net
(15) (29) (22)
Total other expense, net
(4) (8) (14)
Interest income
9 6 1
Interest expense
(285) (198) (157)
Income (loss) before income taxes
807 738 (736)
Income tax benefit (expense)
5 (138) 310
Net income (loss)
812 600 (426)
Preferred dividends
(1) (1) (1)
Earnings (losses) attributable to common shares
$ 811 $ 599 $ (427)
28
Balance Sheets
December 31,
(Dollars in millions) 2023 2022 2021
ASSETS
Current assets:
Cash and cash equivalents
$ 2 $ 21 $ 37
Accounts receivable – trade, net
985 1,295 1,084
Accounts receivable – other, net
102 293 58
Due from unconsolidated affiliates
22 77 49
Inventories
277 159 172
Regulatory assets
204 104 40
Greenhouse gas allowances
950 111 75
Other current assets
100 69 84
Total current assets
2,642 2,129 1,599
Other assets:
Regulatory assets
1,715 1,291 1,148
Insurance receivable for Aliso Canyon costs
— — 360
Greenhouse gas allowances
62 551 290
Right-of-use assets – operating leases
29 42 57
Other long-term assets
645 583 627
Total other assets
2,451 2,467 2,482
Property, plant and equipment:
Property, plant and equipment
27,025 25,058 23,104
Less accumulated depreciation and amortization
(7,852) (7,308) (6,861)
Property, plant and equipment, net
19,173 17,750 16,243
Total assets
$ 24,266 $ 22,346 $ 20,324
29
Balance Sheets (Continued)
December 31,
(Dollars in millions) 2023 2022 2021
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt $ 946 $ 900 $ 385
Accounts payable – trade 811 953 775
Accounts payable – other 184 176 142
Due to unconsolidated affiliates 38 36 36
Accrued compensation and benefits 213 209 202
Regulatory liabilities 103 394 345
Current portion of long-term debt and finance leases 523 318 11
Reserve for Aliso Canyon costs 31 129 1,980
Greenhouse gas obligations 950 111 75
Asset retirement obligations 73 68 77
Other current liabilities 535 429 284
Total current liabilities 4,407 3,723 4,312
Long-term debt and finance leases 6,288 5,780 4,773
Deferred credits and other liabilities:
Regulatory liabilities 1,202 1,043 1,100
Greenhouse gas obligations — 443 174
Pension obligation, net of plan assets 231 277 551
Deferred income taxes 1,586 1,306 1,039
Asset retirement obligations 2,774 2,675 2,505
Deferred credits and other 368 401 428
Total deferred credits and other liabilities 6,161 6,145 5,797
Shareholders' equity:
Preferred stock 22 22 22
Common stock 2,316 2,316 1,666
Retained earnings 5,095 4,384 3,785
Accumulated other comprehensive income (loss) (23) (24) (31)
Total shareholders’ equity 7,410 6,698 5,442
Total liabilities and shareholders’ equity $ 24,266 $ 22,346 $ 20,324
30
Statements of Cash Flows
Years ended December 31,
(Dollars in millions) 2023 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 812 $ 600 $ (426)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 839 761 716
Deferred income taxes and investment tax credits 12 146 (494)
Bad debt expense 294 70 26
Other (12) (12) (7)
Net change in working capital components:
Accounts receivable 207 (512) (383)
Due to/from unconsolidated affiliates, net 57 (28) (25)
Income taxes receivable/payable, net (8) 23 (43)
Inventories (118) 13 (18)
Other current assets (1,053) (139) (21)
Accounts payable (179) 191 181
Regulatory balancing accounts, net (311) 46 306
Reserve for Aliso Canyon costs (98) (1,851) 1,532
Other current liabilities 1,047 185 (92)
Insurance receivable for Aliso Canyon costs — 360 85
Changes in other noncurrent assets and liabilities, net (100) (307) (304)
Net cash provided by (used in) operating activities 1,389 (454) 1,033
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment (2,020) (1,993) (1,984)
Net cash used in investing activities (2,020) (1,993) (1,984)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid (100) — (75)
Preferred dividends paid (1) (1) (1)
Equity contributions from Sempra — 650 800
Issuances of debt (maturities greater than 90 days) 997 2,094 —
Payments on debt (maturities greater than 90 days) and finance leases (1,120) (15) (12)
Increase (decrease) in short-term debt, net 846 (285) 272
Debt issuance costs (10) (12) —
Net cash provided by financing activities 612 2,431 984
(Decrease) increase in cash and cash equivalents (19) (16) 33
Cash and cash equivalents, January 1 21 37 4
Cash and cash equivalents, December 31 $ 2 $ 21 $ 37
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized $ 279 $ 173 $ 151
Income tax payments (refunds), net 6 (31) 227
31
Sempra Texas Utilities
Selected Financial Data and Comparative Statistics
Years ended December 31,
(Dollars in millions) 2023 2022 2021
Oncor Holdings Sharyland Holdings Oncor Holdings Sharyland Holdings Oncor Holdings Sharyland Holdings
Total investments at January 1
$ 13,665 $ 107 $ 12,947 $ 100 $ 12,440 $ 102
Capital contributions
363 4 341 5 566 —
Equity earnings
694 7 735 7 617 5
Distributions of earnings
(441) (4) (340) (5) (681) (7)
Other
(15) — (18) — 5 —
Total investments at December 31
$ 14,266 $ 114 $ 13,665 $ 107 $ 12,947 $ 100
Years ended or at December 31,
Oncor
(1)
:
2023 2022 2021
Capital expenditures
$ 3,824 $ 3,049 $ 2,497
Average rate base
(2)
$ 21,938 $ 19,814 $ 18,024
PUCT-authorized return on equity
9.7 % 9.8 % 9.8 %
Electric volumes (millions of kilowatt hours)
Residential
47,112 49,648 44,059
Commercial, industrial, small business and other
109,365 99,612 90,998
Total
156,477 149,260 135,057
Cooling degree days
2,268 2,204 1,636
Heating degree days
608 971 772
Total electric customer meters (thousands) 3,969 3,896 3,832
(1)
Includes 100% of Oncor.
(2)
Average rate base represents the average of total rate base for the last two years as calculated in the Earnings Monitoring Report that is filed with the Public Utility Commission of Texas
(PUCT) on an annual basis, usually in April of the following year. The estimated total rate base for 2023 was $23,137 million and the filed total rate base for 2022 and 2021 were $20,739
million and $18,889 million, respectively.
Sempra Texas Utilities is not the same company as SDG&E and SoCalGas (collectively, Sempra California), and Sempra Texas Utilities is not regulated by the California Public Utilities Commission.
32
Consolidated Statements of Operations and Statistics
Years ended December 31,
(Dollars in millions) 2023 2022 2021
Operating revenues:
Utility – natural gas
$ 87 $ 89 $ 81
Energy-related businesses
2,984 1,830 1,916
Total operating revenues
3,071 1,919 1,997
Operating expenses:
Utility – cost of natural gas
8 37 24
Energy-related businesses cost of sales
548 942 608
Operation and maintenance
793 656 550
Depreciation and amortization
281 268 239
Other taxes
12 7 14
Total operating expenses
1,642 1,910 1,435
Operating income
1,429 9 562
Other income (expense), net:
Gains (losses) on interest rate and foreign exchange instruments, net
4 11 (28)
Allowance for equity funds used during construction
— — 4
Foreign currency transaction gains (losses), net
1 (22) (17)
Sundry, net
5 11 5
Total other income (expense), net
10 — (36)
Interest income
43 44 75
Interest expense
(129) (104) (205)
Income (losses) before income taxes and equity earnings
1,353 (51) 396
Income tax expense
(673) (249) (238)
Equity earnings
740 756 671
Net income
1,420 456 829
Earnings attributable to noncontrolling interests
(543) (146) (147)
Earnings attributable to common shares
$ 877 $ 310 $ 682
Natural Gas Distribution Operations - Ecogas México, S. de R.L. de C.V.
Volumes delivered (billion cubic feet)
4 4 3
Customer meters (thousands)
157 150 143
Power Generated and Sold
Termoeléctrica de Mexicali (millions of kilowatt hours)
3,086 3,110 3,382
Wind and solar (millions of kilowatt hours)
(1)(2)
3,135 2,987 2,510
(1)
Includes intercompany sales.
(2)
Includes 50% of the total power generated and sold at the Energía Sierra Juárez wind power generation facility through March 19, 2021. As of March 19, 2021, Energía Sierra Juárez
became a consolidated subsidiary of Sempra Infrastructure.
Sempra Infrastructure is not the same company as SDG&E and SoCalGas (collectively, Sempra California), and Sempra Infrastructure is not regulated by the California Public Utilities
Commission.
33
Consolidated Balance Sheets
December 31,
(Dollars in millions) 2023 2022 2021
ASSETS
Current assets:
Cash and cash equivalents
$ 180
$ 123
$ 310
Restricted cash
47
39
17
Accounts receivable
613
815
527
Due from affiliates
15
27
152
Income taxes receivable
59
130
56
Inventories
52
111
94
Fixed-price contracts and other derivatives
95
672
101
Greenhouse gas allowances
81
8
9
Other current assets
71
63
62
Total current assets
1,213
1,988
1,328
Restricted cash
104
52
3
Due from affiliates
1,028
1,020
1,632
Regulatory assets
88
78
77
Investments
2,129
1,905
1,425
Goodwill and other intangible assets
1,920
1,946
1,972
Deferred income taxes
80
72
71
Right-of-use assets – operating leases
164
164
180
Property, plant and equipment, net
12,204
8,184
7,560
Other long-term assets
500
351
160
Total assets
$ 19,430
$ 15,760
$ 14,408
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
$ 1,031
$ 1,793
$ 1,070
Accounts payable
606
356
310
Due to affiliates
288
337
86
Current portion of long-term debt
11
212
46
Contract liabilities
2
41
112
Fixed-price contracts and other derivatives
11
210
37
Greenhouse gas obligations
81
8
9
Other current liabilities
577
311
494
Total current liabilities
2,607
3,268
2,164
Long-term debt
3,558
3,056
2,746
Deferred credits and other liabilities:
Due to affiliates
426
427
305
Deferred income taxes
1,928
1,747
1,682
Contract liabilities
121
131
83
Fixed-price contracts and other derivatives
4
94
134
Deferred credits and other
435
297
282
T
2,914
2,696
2,486
Equity:
Sempra Infrastructure shareholder’s equity
5,392
4,619
5,594
Noncontrolling interests
4,959
2,121
1,418
T
Total equity
10,351
6,740
7,012
Total liabilities and equity $ 19,430 $ 15,760 $ 14,408
Sempra Infrastructure is not the same company as SDG&E and SoCalGas (collectively, Sempra California), and Sempra Infrastructure is not regulated by the California
Public Utilities Commission.
34
Consolidated Statements of Cash Flows
Years ended December 31,
(Dollars in millions)
2023 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 1,420 $ 456 $ 829
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
281 268 239
Deferred income taxes and investment tax credits
191 119 (31)
Equity earnings
(740) (756) (671)
Foreign currency transaction (gains) losses, net
(1) 23 17
Fixed-price contracts and other derivatives
(666) 863 208
Bad debt expense
52 6 5
Other
38 24 20
Net change in working capital components:
Accounts receivable
169 (299) (107)
Due to/from unconsolidated affiliates, net
(43) 251 13
Income taxes receivable/payable, net
368 (291) 174
Inventories
57 (20) (50)
Other current assets
1,079 (1,392) (191)
Accounts payable
(108) 80 83
Other current liabilities
34 (35) 116
Distributions from investments
467 509 623
Changes in other noncurrent assets and liabilities, net
53 22 19
Net cash provided by (used in) operating activities
2,651 (172) 1,296
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment
(3,832) (884) (802)
Expenditures for investments and acquisitions, net of cash and cash equivalents acquired
(15) (30) (67)
Proceeds from sale of assets
1 — —
Distributions from investments
— — 4
Repayments of advances to affiliates
— 626 38
Advances to affiliates
(8) (25) (3,864)
Other
(2) (2) (3)
Net cash used in investing activities
$ (3,856) $ (315) $ (4,694)
35
Consolidated Statements of Cash Flows (Continued)
Years ended December 31,
(Dollars in millions)
2023 2022 2021
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid
$ (1,808) $ (2,452) $ —
Issuances of common stock, net
1,550 7 3
Issuances of debt (maturities greater than 90 days)
3,366 4,925 1,664
Payments on debt (maturities greater than 90 days)
(4,012) (3,748) (1,664)
Proceeds from sales of noncontrolling interests, net
1,219 1,732 3,206
Purchases of noncontrolling interests
— — (224)
Distributions to noncontrolling interests
(730) (237) —
Contributions from noncontrolling interests
1,766 31 4
Advances from affiliates
115 116 457
Settlement of cross-currency swaps
(99) — —
Other
(51) (4) (69)
Net cash provided by financing activities
1,316 370 3,377
Effect of exchange rate changes on cash, cash equivalents and restricted cash
6 1 2
Increase (decrease) in cash, cash equivalents and restricted cash
117 (116) (19)
Cash, cash equivalents and restricted cash, January 1
214 330 349
Cash, cash equivalents and restricted cash, December 31
$ 331 $ 214 $ 330
Sempra Infrastructure is not the same company as SDG&E and SoCalGas (collectively, Sempra California), and Sempra Infrastructure is not regulated by the California
Public Utilities Commission.
36
Shareholder Information and Research Coverage
Shareholder Services Research Coverage
Sempra
The following firms provide equity investment research coverage of
Sempra:
488 8th Avenue
San Diego, CA 92101
Telephone: (877) 736-7727 Argus Research Company
Email: [email protected] Bank of America Merill Lynch
Barclays
Transfer Agent
BMO Capital Markets
Citi
Telephone: (877) 773-6772 Evercore ISI
FINAM
Annual Report
Goldman Sachs & Co.
Guggenheim Securities
Sempra’s Annual Report on Form 10-K filed with the U.S. Securities
and Exchange Commission is available to shareholders at no charge
by writing to the company’s Shareholder Services Department, or on
the company’s website at Sempra.com.
J.P. Morgan
KeyBanc
Ladenburg Thalmann & Co.
Mizuho Securities
Morgan Stanley
Morningstar, Inc.
RBC Capital Markets
Seaport Global Securities
Tuohy Brothers
UBS Equities
Wells Fargo Securities
Wolfe Research
37