Sempra Energy at Work on $21.5 Billion in Active Projects, Nears Oncor Acquisition

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Researched by Industrial Info Resources (Sugar Land, Texas)--Sempra Energy (NYSE:SRE) (San Diego, California) reported an uptick in revenues for full-year 2017, as it prepares to acquire a majority ownership of Oncor Electric Delivery Company LLC, the largest transmission and distribution utility in Texas. Industrial Info is tracking more than $21.5 billion in active projects involving Sempra, including nearly $4.9 billion that are set to begin construction and nearly $1 billion that are set to finish construction in 2018.

Sempra's capital expenditures, investments and businesses acquisition totaled $4.22 billion in 2017, compared with $5.72 billion in 2016. The company received some good news in its much-anticipated acquisition of Energy Future Holdings Corporation (Dallas, Texas) and its near-80% ownership interest in Oncor: The U.S. Bankruptcy Court in Delaware approved the takeover, and the Texas Public Utility Commission drafted an order approving the $9.45 billion sale. The deal is expected to close in March.

"Our proposal to acquire a majority stake in Oncor continues to gain positive momentum, and we expect state regulators to complete their review within the next month," said Debra L. Reed, the chief executive officer of Sempra Energy, in an earnings-related press release. "Our California utilities are executing on their robust capital programs to reinforce their systems and filed their General Rate Case applications for 2019."

Industrial Info is tracking nearly $1.5 billion in active Sempra projects in California, including the $410 million Great Valley Solar Plant in Fresno County, which is expected to generate 205 megawatts (MW) from polycrystalline solar modules; and the $180 million Sycamore-to-Penasquitos Transmission Line in San Diego, which is expected to run 14 miles, in four segments both overground and underground, from the Sycamore Canyon Substation to the Penasquitos Substation. For more information, see Industrial Info's project reports on the Great Valley station and the transmission line.

In addition to the Sempra projects, Industrial Info is tracking $2.55 billion in projects involving Energy Future Holdings. These include the $11 million construction of the Littman Transmission Line in Andrews, Texas, which is expected to kick off this summer. The project involves building 11.1 miles of 138-kilovolt (kV), overhead transmission line from the existing Littman Substation to a new substation. For more information, see Industrial Info's project reports on the transmission line and new substation.

Sempra's revenues totaled $11.2 billion for 2017, a 10% increase from last year. Net earnings were reported to be $256 million, compared with $1.37 billion in 2016; when excluding one-time gains and losses, including the impact of acquisitions, asset sales, write-offs, last year's California wildfires, and the Tax Cuts and Jobs Act of 2017, earnings stood at $1.37 billion, an 8% increase from 2016.

Sempra's LNG & Midstream subsidiary had some good news for the company's most widely watched project: It announced in December that it had reached a settlement agreement with CCJV, the contractor for joint-venture partners at work on the $10 billion Cameron LNG Liquefaction Plant near Hackberry, Louisiana. CCJV is a joint venture between an affiliate of Chicago Bridge & Iron Company N.V. (NYSE:CBI) (CB&I) (The Hague, Netherlands) and Chiyoda International Corporation.

"The settlement resolves all of CCJV's project-related claims as of the date of the agreement, and better aligns the interests of all parties in achieving the joint goal of having all three of Cameron LNG's liquefaction trains producing liquefied natural gas in 2019," according to the earnings-related press release. The full Cameron LNG complex would comprise three liquefaction trains, each with a capacity of 5 million-metric-ton-per-year; a 160,000-cubic-meter LNG storage tank; and related facilities. For more information, see Industrial Info's project report and February 22, 2018, article - CB&I's $5.8 Billion in 2017 Contract Awards Fuels Hope for Better 2018.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.