Sempra Energy Financial Overview
Adjusted Earnings and Adjusted EPS
(Unaudited)
Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2022 and 2021 as follows:
Three months ended December 31, 2022:
$(75)M impact from foreign currency and inflation on our monetary positions in Mexico
$(247)M net unrealized losses on commodity derivatives
$17M net unrealized gains on a contingent interest rate swap related to the proposed initial phase of the Port Arthur LNG liquefaction project (PA LNG Phase 1 project)
Three months ended December 31, 2021:
$(16)M impact associated with Aliso Canyon natural gas storage facility litigation at Southern California Gas Company (SoCalGas)
$(3)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
$129M net unrealized gains on commodity derivatives
$(30)M in charges associated with hedge termination costs and a write-off of unamortized debt issuance costs from the early redemptions of debt at Sempra Infrastructure in
October 2021
$(92)M in charges associated with make-whole premiums and a write-off of unamortized discount and debt issuance costs from the early redemptions of debt at Parent and other
in December 2021
$(72)M net income tax expense related to the utilization of a deferred income tax asset upon completing the sale of a 20% NCI in Sempra Infrastructure Partners, LP (SI
Partners) to KKR Pinnacle Investor L.P. (KKR) in October 2021
Year ended December 31, 2022:
$(199)M impact associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at SoCalGas
$(164)M impact from foreign currency and inflation on our monetary positions in Mexico
$(355)M net unrealized losses on commodity derivatives
$17M net unrealized gains on a contingent interest rate swap related to the proposed PA LNG Phase 1 project
$(120)M deferred income tax expense associated with the change in our indefinite reinvestment assertion as a result of progress in obtaining regulatory approvals necessary to
close the sale of a 10% NCI in SI Partners to Abu Dhabi Investment Authority (ADIA)
Year ended December 31, 2021:
$(1,148)M impact associated with Aliso Canyon natural gas storage facility litigation at SoCal Gas
$(44)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
$(47)M net unrealized losses on commodity derivatives
$(30)M in charges associated with hedge termination costs and a write-off of unamortized debt issuance costs from the early redemptions of debt at Sempra Infrastructure in
October 2021
$(92)M in charges associated with make-whole premiums and a write-off of unamortized discount and debt issuance costs from the early redemptions of debt at Parent and other
in December 2021
$(72)M net income tax expense related to the utilization of a deferred income tax asset upon completing the sale of a 20% NCI in SI Partners to KKR in October 2021
$50M equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending value added tax (VAT)
matters and related legal costs at our equity method investment at Parent and other
Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-
GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures
also exclude the impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives and unrealized gains and losses on
commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and
investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Non-GAAP financial measures are supplementary
information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these
non-GAAP financial measures to Sempra GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.
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