About Sempra Energy

Sempra Energy makes sure the lights are always on. In the US Sempra distributes natural gas to about 7 million customer meters and electricity to more than 3.5 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 32 million consumers worldwide. In a play to acquire Oncor Electric from bankrupt parent, Energy Future Holdings (EFH), Sempra agreed in 2017 to purchase a majority stake in EFH.

Operations

Sempra Energy operates six segments: San Diego Gas & Electricity (SDG&E), Southern California Gas Company (SoCalGas), Sempra South American Utilities, Sempra Mexico, Sempra LNG & Midstream, and Sempra Renewables.

SDG&E is the largest at around 40% of revenue and provides electricity to San Diego and Orange County, as well as natural gas to San Diego. It serves 1.3 million residential, 150,000 commercial, and 400 industrial customers, covering 4,1000 square miles.

SoCalGas distributes natural gas throughout most of Southern California, as well as bits of Central California. It owns four natural gas storage facilities (the largest being the Aliso Canyon facility) with a combined capacity of 137 billion cu. ft. and over 200 injection, withdrawal, and observation wells. It brings in some 35% of company sales.

The SSUA segment develops and operates electric transmission, distribution, and generation infrastructure in Chile and Peru. It brings in some 15% of total sales.

Sempra Mexico owns gas and electric generation and transmission systems, a liquid petroleum pipeline and storage terminal, a LNG import terminal, and marketing operations. It accounts for 5% of revenue.

Sempra LNG & Midstream operates natural gas pipelines and storage facilities in the US, as well as a LNG import and export terminal. It brings in about 5%.

Sempra Renewables consists of the company's solar energy generation facilities, and accounts for a negligible amount of total revenue.

Geographic Reach

Sempra has operations in the US, Chile, Peru, and Mexico. The US accounts for about 80% of Sempra Energy's net sales each year. South America (Chile and Peru) account for 15%, while Mexico accounts for the rest.

Its gas-fired power plants are in Escondido, California; Boulder City, Nevada; San Diego, California; and El Cajon, California.

Sales and Marketing

Sempra Energy distributes electricity via distribution lines, transmission lines, overhead and underground lines. In the US Sempra Energy distributes natural gas and electricity to primarily residential customers through its SoCalGas and SDG&E utilities.

SDG&E provides electricity to a population of 3.4 million and natural gas to a population of 3.3 million.

Southern California Gas Company serve Residential, commercial, industrial, utility electric generation and wholesale customers. It covers a population of more than 21.6 million (about 6 million meters).

Financial Performance

Sempra's revenue has been trending downwards an increase in natural gas production in the US pushed prices downwards.

In fiscal 2016, sales growth was flat at $10.2 billion as a slight increase in electricity revenue was canceled out by an equivalent decrease in gas revenue. Electricity sales were up due to higher authorized revenue in the 2016 general rate case. Gas sales fell due to lower average natural gas prices during the year.

Net income increased by 5% to $1.4 billion due mostly to a strong increase in the Sempra Mexico segment. The segment increased earnings by $250 million thanks to a non-cash gain of $432 million relating to remeasurement of its interest in Gasoducos de Chihuahua and incremental earnings from its higher ownership. A $111 million in asset impairments on Termoeléctrica de Mexicali partially offset gains.

Cash from operations fell 20% to $2.3 billion due to a $451 hit from the gas leak at Aliso Canyon. Factors include insurance costs and a net decrease in reserves for accrued expenditures.

Strategy

The company pursues three disciplined growth platforms: U.S. utilities South American utilities and Mexican midstream, U.S. natural gas midstream, including LNG, and renewables.

Operating within these areas, Sempra Energy is focused on generating stable, predictable earnings and cash flows by investing in assets that are primarily regulated or contracted long-term. It is committed to build a new energy infrastructure that is contracted for the long term.

In 2017 Sempra agreed to buy Texan energy company Oncor Energy, whose parent company Future Holdings went bankrupt. The deal will expand Sempra's regulated earnings base and acting as a launchpad into the Texas and Gulf of Mexico energy market.

The company is also responding to a California state mandate (and accompanying financial incentives) to increase the amount of energy generated by utilities from non-fossil fuel sources. It gained approval in 2016 to build and own up to 3,500 electric vehicle charging units up to 2019, which it hopes to expand to 90,000 homes, as well as public locations.

In 2016, the company made capital expenditures and investments of $4.2 billion. The bulk of the expenditure went on pipeline safety improvements.

It is also selling assets to free up cash. In 2015-16, Sempra sold its interest in the Rockies Express Pipeline and its interest in Rosamond Solar, a development project located in Antelope Valley, California.

Mergers and Acquisitions

In 2017 Sempra Energy bid for Oncor Electric, whose parent, Energy Future Holdings, had filed for bankruptcy. The deal evolved into a majority-stake acquisition of EFH, which owns 80% of Oncor.

In 2016, via Mexican subsidiary IEnova, Sempra acquired two wind farms consisting of 84 turbines with generation capacity of 252 MW for $900 million. The farm is the largest of its kind in Mexico.

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Sempra Energy

488 8th Ave
San Diego, CA 92101-7123
Phone: 1 (619) 696-2000
Fax: 1 (619) 696-4611

Stats

  • Employer Type: Public
  • Stock Symbol: SRE
  • Stock Exchange: NYSE
  • Chairman, President, and CEO: Debra L. Reed
  • EVP and CFO: Jeffrey W. Martin
  • Chairman, President, and CEO: Debra L. Reed
  • 2016 Employees: 16,575

Major Office Locations

  • San Diego, CA

Other Locations

  • Alhambra, CA
  • Aliso Viejo, CA
  • Anaheim, CA
  • Bakersfield, CA
  • Beaumont, CA
  • Carlsbad, CA
  • Chatsworth, CA
  • Chula Vista, CA
  • City Of Industry, CA
  • Compton, CA
  • Corona, CA
  • Downey, CA
  • El Cajon, CA
  • Escondido, CA
  • Imperial, CA
  • Indio, CA
  • Los Angeles, CA
  • Montclair, CA
  • Monterey Park, CA
  • Moreno Valley, CA
  • Needles, CA
  • Palm Desert, CA
  • Pico Rivera, CA
  • Redlands, CA
  • Romoland, CA
  • San Bernardino, CA
  • San Clemente, CA
  • San Dimas, CA
  • San Francisco, CA
  • Santa Maria, CA
  • Valencia, CA
  • Venice, CA
  • Ventura, CA
  • Whittier, CA
  • Washington, DC
  • Cohasset, MA
  • Mount Olive, MS
  • Bremond, TX
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