Sempra Energy Files 10-Q for Period Ending March 31, 2024

Ticker: SRE · Form: 10-Q · Filed: 2024-05-07T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, Sempra Energy, SRE, Utilities, Financial Report

TL;DR

<b>Sempra Energy files its Q1 2024 10-Q report, detailing financial performance for its regulated utility operations.</b>

AI Summary

SEMPRA (SRE) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Filing is a 10-Q for Sempra Energy (SRE) for the period ending March 31, 2024. Includes data for San Diego Gas & Electric Co. and Southern California Gas Co. Covers regulated natural gas and electricity segments. References financial data for Q1 2024 and Q1 2023. Mentions common stock and subordinated notes.

Why It Matters

For investors and stakeholders tracking SEMPRA, this filing contains several important signals. This filing provides an update on Sempra's financial health and operational performance for the first quarter of 2024, crucial for investors assessing the company's trajectory. The inclusion of data for San Diego Gas & Electric and Southern California Gas highlights the performance of key regulated utility subsidiaries, impacting overall Sempra results.

Risk Assessment

Risk Level: medium — SEMPRA shows moderate risk based on this filing. The filing is a standard quarterly report, indicating ongoing operational and financial reporting requirements for a large, regulated utility company, which inherently carries medium risk due to regulatory and market factors.

Analyst Insight

Monitor future filings for detailed segment performance and any changes in financial metrics or risk factors presented.

Key Numbers

Key Players & Entities

FAQ

When did SEMPRA file this 10-Q?

SEMPRA filed this Quarterly Report (10-Q) with the SEC on May 7, 2024.

What is a 10-Q filing?

A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by SEMPRA (SRE).

Where can I read the original 10-Q filing from SEMPRA?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by SEMPRA.

What are the key takeaways from SEMPRA's 10-Q?

SEMPRA filed this 10-Q on May 7, 2024. Key takeaways: Filing is a 10-Q for Sempra Energy (SRE) for the period ending March 31, 2024.. Includes data for San Diego Gas & Electric Co. and Southern California Gas Co.. Covers regulated natural gas and electricity segments..

Is SEMPRA a risky investment based on this filing?

Based on this 10-Q, SEMPRA presents a moderate-risk profile. The filing is a standard quarterly report, indicating ongoing operational and financial reporting requirements for a large, regulated utility company, which inherently carries medium risk due to regulatory and market factors.

What should investors do after reading SEMPRA's 10-Q?

Monitor future filings for detailed segment performance and any changes in financial metrics or risk factors presented. The overall sentiment from this filing is neutral.

How does SEMPRA compare to its industry peers?

Sempra Energy operates as a utility holding company, primarily involved in energy infrastructure and services, with significant regulated natural gas and electricity operations in California.

Are there regulatory concerns for SEMPRA?

The company's operations are subject to extensive regulation by state and federal bodies, including the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC).

Industry Context

Sempra Energy operates as a utility holding company, primarily involved in energy infrastructure and services, with significant regulated natural gas and electricity operations in California.

Regulatory Implications

The company's operations are subject to extensive regulation by state and federal bodies, including the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC).

What Investors Should Do

  1. Review the full 10-Q for detailed financial statements and management's discussion and analysis.
  2. Analyze segment performance for San Diego Gas & Electric and Southern California Gas.
  3. Compare Q1 2024 results against Q1 2023 to identify year-over-year trends.

Year-Over-Year Comparison

This filing represents the first quarterly report for the fiscal year 2024, providing updated financial and operational data compared to the previous fiscal year's filings.

Filing Stats: 4,556 words · 18 min read · ~15 pages · Grade level 18.6 · Accepted 2024-05-07 16:29:15

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 9 Notes to Condensed Consolidated Financial Statements Note 1. General Information and Other Financial Data 28 Note 2. New Accounting Standards 40 Note 3. Revenues 41 Note 4. Regulatory Matters 44 Note 5. Sempra – Investments in Unconsolidated Entities 46 Note 6. Debt and Credit Facilities 48 Note 7. Derivative Financial Instruments 51 Note 8. Fair Value Measurements 56 Note 9. Sempra – Equity and Earnings Per Common Share 63 Note 10. San Onofre Nuclear Generating Station 66 Note 11. Commitments and Contingencies 68 Note 12. Sempra – Segment Information 74

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 76 Overview 76 Results of Operations by Registrants 76 Capital Resources and Liquidity 88 Critical Accounting Estimates 100 New Accounting Standards 100

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 100

Controls and Procedures

Item 4. Controls and Procedures 102

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 102

Risk Factors

Item 1A. Risk Factors 102

Other Information

Item 5. Other Information 103

Exhibits

Item 6. Exhibits 104

Signatures

Signatures 107 This combined Form 10-Q is separately filed by Sempra, San Diego Gas & Electric Company and Southern California Gas Company. Information contained herein relating to any one of these individual Registrants is filed by such entity on its own behalf. Each such Registrant makes statements herein only as to itself and its consolidated entities and makes no statement whatsoever as to any other entity. You should read this report in its entirety as it pertains to each respective Registrant. No one section of the report deals with all aspects of the subject matter. A separate Part I – Item 1 is provided for each Registrant, except for the Notes to Condensed Consolidated Financial Statements, which are combined for all the Registrants. All Items other than Part I – Item 1 are combined for the three Registrants. None of the website references in this report are active hyperlinks, and the information contained on or that can be accessed through any such website is not and shall not be deemed to be part of or incorporated by reference in this report or any other document that we file with or furnish to the SEC. 3 Table of Con tents The following terms and abbreviations appearing in this report have the meanings indicated below. GLOSSARY AB California Assembly Bill ADIA Black Silverback ZC 2022 LP (assignee of Black River B 2017 Inc.), a wholly owned affiliate of Abu Dhabi Investment Authority AFUDC allowance for funds used during construction amparo an extraordinary constitutional appeal governed by Articles 103 and 107 of the Mexican Constitution and filed in Mexican federal court Annual Report Annual Report on Form 10-K for the year ended December 31, 2023 AOCI accumulated other comprehensive income (loss) ASEA Agencia de Seguridad, Energa y Ambiente (Mexico's National Agency for Industrial Safety and Environmental Protection) ASU Accounting Standards Update Bcf billion cubic feet bps basis points Cameron LNG JV Cameron LNG Holdings, L

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SEMPRA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2024 2023 (unaudited) REVENUES Utilities: Natural gas $ 2,109 $ 4,412 Electric 1,056 1,027 Energy-related businesses 475 1,121 Total revenues 3,640 6,560 EXPENSES AND OTHER INCOME Utilities: Cost of natural gas ( 554 ) ( 2,683 ) Cost of electric fuel and purchased power ( 89 ) ( 114 ) Energy-related businesses cost of sales ( 109 ) ( 193 ) Operation and maintenance ( 1,212 ) ( 1,209 ) Depreciation and amortization ( 594 ) ( 539 ) Franchise fees and other taxes ( 184 ) ( 192 ) Other income, net 99 41 Interest income 13 24 Interest expense ( 305 ) ( 366 ) Income before income taxes and equity earnings 705 1,329 Income tax expense ( 172 ) ( 376 ) Equity earnings 348 219 Net income 881 1,172 Earnings attributable to noncontrolling interests ( 69 ) ( 192 ) Preferred dividends ( 11 ) ( 11 ) Earnings attributable to common shares $ 801 $ 969 Basic EPS: Earnings $ 1.27 $ 1.54 Weighted-average common shares outstanding 632,821 629,838 Diluted EPS: Earnings $ 1.26 $ 1.53 Weighted-average common shares outstanding 635,354 632,248 See Notes to Condensed Consolidated Financial Statements. 9 Table of Con tents SEMPRA CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Sempra shareholders' equity Pretax amount Income tax (expense) benefit Net-of-tax amount Noncontrolling interests (after tax) Total (unaudited) Three months ended March 31, 2024 and 2023 2024: Net income $ 984 $ ( 172 ) $ 812 $ 69 $ 881 Other comprehensive income (loss): Foreign currency translation adjustments 3 — 3 1 4 Financial instruments 43 ( 4 ) 39 114 153 Pension and other postretirement benefits 5 ( 1 ) 4 — 4 Total other comprehensive income 51 ( 5 ) 46 115 161 Comprehensive income $ 1,035 $ ( 177 ) $ 858 $ 184 $ 1,042 20

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