Sempra Energy's takes a pragmatic approach to make money in utility and other energy markets in the US and around the world. In the US Sempra distributes natural gas to more than 6.6 million customer meters and electricity to 1.4 million customer meters through its Southern California Gas (SoCalGas) and San Diego Gas & Electric (SDG&E) utilities. Other reporting segments include Sempra US Gas & Power (natural gas and renewables) and Sempra International (Sempra Mexico and Sempra South American Utilities), which were formerly known as Sempra Global. Sempra Energy companies serve more than 31 million consumers worldwide.
Sempra Energy's California utilities (SDG&E and (SoCalGas) accounted for 70% of Sempra Energy's 2012 revenues. Other units include Sempra International (Sempra South American Utilities and Sempra Mexico) and Sempra U.S. Gas & Power (Sempra Renewables and Sempra Natural Gas). The company also develops regasification facilities through Sempra LNG.
The company’s revenues decreased by 4% to $9.6 billion in 2012 as the result in the decline Natural gas and Energy-related reveneus offset by higher Electric sale. Natural gas revenues dropped by 14% primarily as the result of lower natural gas prices and volumes sold.
Energy-related businesses declined by 30%, due to a major contract which ended 2011, and lower LNG revenues as a result of weaker natural gas prices and volumes, and other factors, offset by a $244 million lower intercompany eliminations associated with sales between Sempra Mexico and Sempra Natural Gas and a $46 million increase in Sempra Renewables revenues from solar and wind power facilities.
Sempra Energy's electric revenues grew by 19% thanks to higher power prices and demand at SDG&E, and a $340 million increase at South American utilities, primarily from the consolidation of Chilquinta Energía and Luz del Sur (acquired in 2011).
Net income decreased by 35% in fiscal 2012 as the result of lower revenues and higher electric fuel and purchased power and depreciation costs, and higher equity losses.
In early 2012 the company consolidated Sempra Generation, Sempra Pipelines & Storage, and Sempra LNG (together formerly Sempra Global) into Sempra International and Sempra US Gas & Power to improve its management and pursue strategic initiatives. Sempra US Gas & Power includes natural gas and renewables while Sempra International includes subsidiaries Sempra Mexico and Sempra South American Utilities.
Taking advantage of abundant natural gas supply from US shale plays, In 2013 Sempra Energy teamed up with GDF SUEZ, Mitsubishi, and Mitsui & Co. to design and build an LNG export facility at the Cameron LNG receipt terminal in Hackberry, Louisiana capable of processing 13.5 million tons per year.
To raise cash to fund its growth initiative, the company sold one 625-MW block of Sempra U.S. Gas & Power's 1,250-MW Mesquite Power natural gas-fired power plant to Salt River Project Agricultural Improvement and Power District for $371 million.
In 2012, BP Wind Energy and Sempra U.S. Gas & Power expand their strategic relationship by agreeing to jointly develop the Mehoopany Wind Farm in Pennsylvania and the Flat Ridge 2 Wind Farm in Kansas (a combined investment of more than $1 billion).
Mergers and Acquisitions
Growing its natural gas footprint in the Southeast US, in 2012, Sempra U.S. Gas & Power agreed to buy Hattiesburg, Mississippi-based Willmut Gas & Oil Company, a natural gas utility which provides service to about 20,000 customers in Hattiesburg and the surrounding area.