Sempra Energy’s SRE first-quarter 2015 adjusted earnings per share came in at $1.71, ahead of the Zacks Consensus Estimate of $1.40 by 22.1%. Earnings also soared 66% from $1.03 per share in the prior-year quarter, primarily due to seasonal adjustment at the company’s subsidiary Southern California Gas Co. (SoCalGas).

Including the benefit from the reduction in loss related to the San Onofre Nuclear Generating Station (SONGS) closure as well as considering liquefied natural gas (“LNG”) development expense, GAAP earnings were $1.74 per share in the quarter compared with 99 cents a year ago.
 

Total Revenues

In the quarter under review, total revenues were $2,682 billion, down 4% due to lower revenues at energy-related businesses (down 16.1% year over year) and utilities (down 2.5%) operations.

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings were $147 million compared with $99 million in the year-ago quarter. The upside primarily reflects improvement in margin from electric transmission and California Public Utilities Commission (CPUC) base operations, and a decline in legal costs.

Southern California Gas Company (SoCalGas): The segment generated earnings of $214 million, up from $78 million in first-quarter 2014. The improvement mainly reflects higher authorized margin and seasonal adjustment related to its core activities.

Sempra South American Utilities: The segment recorded earnings of $41 million in the first quarter, up from $35 million in the prior-year period.

Sempra Mexico: The segment recorded earnings of $47 million, up from $42 million in first-quarter 2014. The improvement primarily reflects higher revenues from the start-up of the Los Ramones I pipeline and a section of the Sonora pipeline in the fourth quarter of 2014.

Sempra Renewables: The segment recorded quarterly earnings of $13 million, down from $28 million a year ago as it recorded a gain from the sale of its 50% equity interest in the Copper Mountain Solar 3 project in the first quarter 2014.

Sempra Natural Gas: The segment earned $2 million in the first quarter compared with $9 million in the prior-year period owing to lower natural gas prices and LNG liquefaction development expense.

Financial Update

As of Mar 31, 2015, Sempra Energy’s cash and cash equivalents were $377 million, compared with $570 million as of Dec 31, 2014.

Long-term debt was $13,012 million as of Mar 31, 2015 compared with $12,167 million at 2014 end.

In the quarter, cash flow from operating activities was $811 million, down from $904 million in the year-ago period.

In the first quarter, the company’s capital expenditures and investments were $814 million compared with $813 million in the prior-year period.

Guidance

Sempra Energy reaffirmed its 2015 adjusted earnings guidance of $4.60 to $5.00 per share.

Peer Releases

Dominion Resources Inc. D reported first-quarter 2015 operating earnings of 99 cents per share, beating the Zacks Consensus Estimate of 96 cents by 3.1%.

Questar Corp. STR, a natural gas-focused energy company, reported first-quarter 2015 earnings of 48 cents per share, missing the Zacks Consensus Estimate by a penny.

Energy services holding company AGL Resources Inc.’s GAS first-quarter 2015 earnings of $1.62 per share surpassed the Zacks Consensus Estimate of $1.49. However, earnings declined from the year-ago adjusted figure of $2. 81.

Zacks Rank

Sempra Energy currently has a Zacks Rank #3 (Hold).