10-KPeriod: FY2014

SEMPRA Annual Report, Year Ended Dec 31, 2014

Filed February 26, 2015For Securities:SRESREA

Summary

Sempra Energy, through its subsidiaries San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), operates as a major energy provider with regulated utility operations in California, alongside international and U.S. non-regulated energy businesses. The company's 2014 performance was shaped by its diversified operations, including natural gas distribution, electric utility services, and growth in renewable energy projects. Regulatory environments in California and other operating regions significantly influence the company's financial performance and operational strategies. Key financial considerations for investors include the company's ability to manage regulatory approvals, capital expenditures, and evolving energy policies, particularly concerning renewable energy mandates and environmental regulations. The company's international operations in Mexico and South America add complexity but also offer diversification, alongside associated currency and geopolitical risks. Investors should note the company's ongoing investments in infrastructure, such as LNG export facilities, and its commitment to meeting energy demands while navigating a dynamic regulatory and competitive landscape.

Financial Highlights

47 data points
Beta

Revenue

$11.04B

Net Income

$1.16B

10.5% Net Margin

EPS (Diluted)

$2.31

Total Assets

$39.65B

Cash & Equivalents

$570.00M

Free Cash Flow

$2.16B

Financial Statements
Beta
Revenue$11.04B
Interest Expense$554.00M
Net Income$1.16B
EPS (Basic)$2.36
EPS (Diluted)$2.31
Shares Outstanding (Basic)491.78M
Shares Outstanding (Diluted)501.31M

Key Highlights

  • 1Sempra Energy operates a diversified energy portfolio, including regulated utilities (SDG&E, SoCalGas) and international/U.S. non-regulated segments (Sempra International, Sempra U.S. Gas & Power).
  • 2The company is significantly impacted by regulatory bodies such as the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC), which influence rates, operations, and capital recovery.
  • 3Sempra is actively involved in renewable energy development, with a focus on meeting California's Renewable Portfolio Standard (RPS) goals.
  • 4The company faces substantial risks related to government regulation, environmental compliance, cybersecurity, and potential changes in energy policies.
  • 5International operations in Mexico and South America provide diversification but also expose the company to currency, political, and economic risks.
  • 6Significant capital investments are planned for infrastructure projects, including LNG export facilities, which carry associated development and operational risks.
  • 7The decommissioning of the San Onofre Nuclear Generating Station (SONGS) continues to be a factor, with associated environmental mitigation obligations for SDG&E.

Frequently Asked Questions

Sempra Energy's primary operating segments include its California utilities (San Diego Gas & Electric - SDG&E, and Southern California Gas Company - SoCalGas), Sempra International (operations in Mexico and South America), and Sempra U.S. Gas & Power (including renewable energy and natural gas infrastructure).

The California utilities (SDG&E and SoCalGas) are primarily regulated by the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC). Other federal agencies like the Federal Energy Regulatory Commission (FERC) and Nuclear Regulatory Commission (NRC) also play roles. International operations are subject to local regulatory bodies in Mexico, Peru, and Chile.

Key risks include changes in government regulation and policy, environmental compliance costs, cybersecurity threats, operational risks associated with infrastructure (pipelines, power plants, LNG facilities), foreign currency fluctuations and political instability in international markets, and the outcomes of litigation and commodity price volatility.

Sempra Energy, particularly through SDG&E, is investing in and procuring power from renewable energy sources to meet California's Renewable Portfolio Standard (RPS) mandates. This includes developing and acquiring interests in solar and wind generation facilities.