SPOTLIGHT | PORT ARTHUR LNG PHASE 1
ADJUSTED EARNINGS AND ADJUSTED EPS
(UNAUDITED)
Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, NCI) in 2022 and 2021 as follows:
In the three months ended September 30, 2022:
$(101)M from impacts associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at Southern California Gas
Company (SoCalGas)
$2M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
$(38)M net unrealized losses on commodity derivatives
In the three months ended September 30, 2021:
$(1,132)M impact from impacts associated with Aliso Canyon natural gas storage facility litigation at SoCalGas
$28M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
$(89)M net unrealized losses on commodity derivatives
In the nine months ended September 30, 2022:
•
$(199)M from impacts associated with Aliso Canyon natural gas storage facility litigation and regulatory matters at SoCalGas
$(89)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
$(108)M net unrealized losses on commodity derivatives
$(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 NCI to Abu Dhabi Investment Authority (ADIA)
In the nine months ended September 30, 2021:
$(1,132)M impact from impacts associated with Aliso Canyon natural gas storage facility litigation at SoCalGas
$(41)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives
$(176)M net unrealized losses on commodity derivatives
$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 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 (Losses) and GAAP EPS,
which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.
SEMPRA
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