What was the primary driver for the increase in Sempra Energy's earnings in the first quarter of 2019?

The primary driver for the increase in Sempra Energy's earnings was the significant contribution from the Sempra Texas Utility segment, largely due to the acquisition of Oncor Holdings, which commenced in March 2018. Additionally, improved operating results and favorable currency impacts in Sempra Mexico, along with better performance in Sempra LNG, contributed to the overall earnings growth.

How did the Aliso Canyon incident impact SoCalGas's financial results in Q1 2019?

SoCalGas incurred costs related to the Aliso Canyon natural gas leak, including costs for remediation, mitigation, and litigation. While the company reported an increase in earnings for the quarter, this was partly due to a tax benefit from a regulatory liability release. The company continues to accrue significant costs related to the incident, with a substantial portion expected to be recovered through insurance.

What is Sempra Energy's strategy regarding its business portfolio based on this filing?

Sempra Energy is actively managing its business portfolio with a strategic focus on North America. This is evidenced by the completion of sales of its South American businesses, which have been classified as discontinued operations. The company also divested certain renewable and natural gas storage assets. The proceeds are intended to support growth opportunities in North America and strengthen the balance sheet.

What is the financial impact of the new lease accounting standard (ASC 842) adopted in Q1 2019?

The adoption of the new lease accounting standard (ASC 842) on January 1, 2019, resulted in the recognition of operating lease right-of-use assets and lease liabilities on the balance sheet. For Sempra Energy Consolidated, this led to an increase in total assets and liabilities. Additionally, finance lease costs for certain Power Purchase Agreements (PPAs) that were previously included in 'Cost of Electric Fuel and Purchased Power' are now recognized in 'Depreciation and Amortization Expense' and 'Interest Expense'.

SRE/SREA 10-Q Quarterly Report Q1 FY2019 — Revenue, Net Income, EPS

Summary

Sempra Energy (SRE) reported solid performance in the first quarter of 2019, with diluted earnings per share (EPS) reaching $1.59, an increase from $1.33 in the prior year. The company's overall revenues grew to $2.898 billion from $2.536 billion year-over-year, driven by stronger contributions from its utilities and energy-related businesses. Significant growth was observed in the Sempra Texas Utility segment, reflecting the positive impact of the Oncor acquisition, and in Sempra Mexico due to favorable currency and inflation effects, as well as improved operating results. Operationally, the company's utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), demonstrated stable performance with increased earnings. However, both utilities saw higher operating and maintenance expenses. SoCalGas continued to manage the financial implications of the Aliso Canyon gas leak, with significant costs incurred and potential insurance recoveries noted. Sempra LNG's performance improved significantly, turning profitable after losses in the prior year, largely driven by marketing operations and natural gas price changes. The company is actively managing its portfolio, having completed the sale of certain renewable and natural gas storage assets and progressing on planned divestitures of its South American businesses.

Financial Highlights

48 data points

Beta

Revenue

$2.90B

Net Income

$441.00M

0.2% Net Margin

EPS (Diluted)

$0.80

Total Assets

$61.62B

Cash & Equivalents

$78.00M

Free Cash Flow

$168.00M

Financial Statements

Beta

Revenue	$2.90B
Operating Income	$560.00M
Interest Expense	$260.00M
Net Income	$441.00M
EPS (Basic)	$0.80
EPS (Diluted)	$0.80
Shares Outstanding (Basic)	549.40M
Shares Outstanding (Diluted)	554.40M

Key Highlights

1Diluted EPS increased by 20% to $1.59 in Q1 2019, compared to $1.33 in Q1 2018.
2Total revenues grew by 14.3% to $2.898 billion in Q1 2019, up from $2.536 billion in Q1 2018.
3Sempra Texas Utility segment's earnings increased significantly to $94 million from $15 million, primarily due to the Oncor acquisition.
4Sempra LNG turned profitable with earnings of $5 million in Q1 2019, a substantial improvement from a loss of $16 million in Q1 2018.
5SoCalGas and SDG&E both reported increased earnings, benefiting from tax reform-related regulatory liability releases, although both faced higher operating expenses.
6The company completed the sale of its South American businesses, reclassifying them as discontinued operations, and continues to focus on North American growth.
7Capital expenditures for the quarter were $783 million, a decrease from $979 million in the prior year, reflecting a strategic shift in asset focus.

SEMPRA Quarterly Report for Q1 Ended Mar 31, 2019

Summary

Financial Highlights

Key Highlights

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