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Sempra Energy

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2019 Vault Rankings

About Sempra Energy

Sempra Energy's mission is to be North America's premier energy infrastructure company. The company delivers energy to over 35 million consumers through its subsidiaries. SoCalGas is the nation's largest gas distribution company and operates nearly 100,000 miles of distribution pipelines and more than 3,000 miles of transmission pipelines. SDG&E operates over 25,000 miles of electric transmission and distribution lines and over 15,700 miles of combined pipeline. Oncor is the largest energy delivery company in Texas and IEnova is one of the largest infrastructure companies in Mexico. Sempra LNG develops and builds natural gas liquefaction facilities and the Cameron LNG liquefaction facility is fully operational with a projected export of about 12 million tonnes per annum of LNG.

Operations

Sempra Energy operates five main segments: San Diego Gas & Electricity (SDG&E), Southern California Gas Company (SoCalGas), Sempra Mexico, Sempra Texas Utility, and Sempra LNG.

SDG&E is the largest, generating around 45% 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, more than 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 about 40% of company sales.

Sempra Mexico includes mainly the activities of subsidiary IEnova, while develops, builds, and operates energy infrastructure in the Mexican gas and power markets. Its pipelines carry natural gas, liquefied petroleum gas, and ethane while it also operates land and marine storage terminals. Sempra Mexico accounts for more than 10% of sales.

Sempra LNG develops projects for the export of LNG, holds an interest in a facility for the export of LNG, owns and operates natural gas pipelines, and buys, sells and transports natural gas through its marketing operations, all within the U.S. and Mexico. It brings in about 5%.

Sempra Texas Utilities is comprised of their equity method investments in Oncor Holdings, which they acquired in March 2018, and Sharyland Holdings, which the company acquired in May 2019.

Geographic Reach

Based in San Diego, CA, Sempra has operations in the US, and Mexico. The US accounts for about 90% of Sempra Energy's net sales each year. Mexico accounts for more than 10% of revenue.

SDG&E owns four natural gas-fired power plants, three of which are in California and one in Nevada.

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 3.7 million and natural gas to a population of 3.4 million.

Southern California Gas Company serve Residential, commercial, industrial, utility electric generation and wholesale customers. It covers a population of approximately 22 million (about 6 million meters).

Financial Performance

Sempra's revenue has climbed steadily over the past five years. Net income is likewise in recovery after a very poor 2017 that saw profits fall by more than $1 billion. Over all, revenue increase 20% as well as 63% in net income.

In 2019 Sempra's sales grew 7% to $10.8 billion thanks to the increase in earnings of SDG&E by $98 million (15%) and SoCalGas the increase in earnings of $241 million in 2019 . The increase in earnings of $157 million (42%) in 2019 primarily represents higher equity earnings from Oncor Holdings, which acquired in March 2018, driven by the impact of Oncor's acquisition of InfraREIT in May 2019 and higher revenues due to rate updates to reflect increases in invested transmission capital, partially offset by higher operating costs.

Net income jumped about 110% to $2.4 billion due to a gain on the sale of its renewables assets, the contribution from its minority stake in its Texas holdings, and due to the increase of about $1.0 billion from their income from continuing operations.

Sempra's cash on hand fell $29 million during 2019, ending the year at $217 million. The company's operations generated $3.1 billion and its financing generated $1.5 billion, while investing activities used $4.6 billion.

Strategy

Sempra Energy's mission is to be North America's premiere energy infrastructure company. They are focused on generating stable, predictable earnings and cash flows by investing in, developing and operating electric and gas infrastructure with the goal of delivering safe and reliable energy to their customers and increasing shareholder value.

In January 2019, the company's board of directors approved a plan to sell their South American businesses, which previously constituted their Sempra South American Utilities segment. These businesses include the company's 100% interest in Chilquinta Energía in Chile, their 83.6% interest in Luz del Sur in Peru and their interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively, as well as third parties. These businesses and certain activities associated with these businesses are presented as discontinued operations, as the sales represent a strategic shift that will have a major effect on our operations and financial results. Sempra Energy do not plan to have significant continuing involvement in or be able to exercise significant influence on the operating or financial policies of these operations after they are sold.

Sempra Energy

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

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: SRE
Stock Exchange: , NYSE
CIO: P. Kevin Chase
EVP and CFO: Jeffrey W. Martin
Chairman, President, and CEO: Debra L. Reed
Employees (This Location): 1,000
Employees (All Locations): 13,969

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 Diego, 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
Austin, TX
Bremond, TX
Colorado City, TX
Graham, TX
Granbury, TX
Irving, TX
Sunnyvale, TX
Waco, TX
Ciudad De Buenos Aires, Argentina