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“We are continuing to focus on innovation, sustainability and leadership as we strengthen our investments and work toward a net-zero carbon footprint.”

Jeffrey W. Martin
Chairman and Chief Executive Officer
Jeffrey W. Martin, Chairman and Chief Executive Officer, Sempra
Dear Fellow Shareholders

While this past year has brought many unexpected challenges, I am optimistic about what lies ahead. We have seen people from all walks of life persevere and come together to support one another in ways that are inspirational to all of us. As vaccination programs expand across America and we look to rebuild the greatest economy in the world, we are also reminded of the vital role of energy.

Energy — and the critical infrastructure that delivers it — are foundational to all aspects of daily life. As the global pandemic has underscored, it powers healthcare facilities, first responders and other critical services. It also empowers millions of people working or studying from home and many more who are relying on us every day for the energy they need to power their lives and businesses.

That is why I have been profoundly inspired by the work of our employees. They have displayed great leadership, resilience and an unwavering commitment to doing the right thing over the past year. They have continued to deliver energy with purpose to our more than 36 million consumers in North America, and many more around the world, during a time when our customers needed it most. Safety is a foundational value at Sempra Energy, guiding how we serve our customers and communities during times of great crisis. Our operating companies innovated to develop new ways for our employees to continue working safely when the world around us demanded it.

Our resilience over the past year makes me even more optimistic for the future. We are continuing to focus on innovation, sustainability and leadership as we strengthen our investments and work toward a net-zero carbon footprint. By aiming higher, and thinking differently, we believe we can help solve some of our society’s greatest challenges.

Executing on Our Mission

Despite unprecedented events, we continued to execute on our strategic mission to be North America’s premier energy infrastructure company. Among our accomplishments in 2020, we:

  • Completed our multi-year capital rotation program, which included the sales of our South American businesses. Our portfolio is now repositioned in what we believe are the most attractive markets in North America.
  • Achieved full commercial operations at Phase 1 of the Cameron LNG export facility in Hackberry, Louisiana, while securing strong, stable cash flows from Cameron LNG’s tolling agreements.
  • Reached a final investment decision for the development, construction and operation of Phase 1 of the Energía Costa Azul LNG export project in Baja California, Mexico.
  • Announced the intention to form Sempra Infrastructure Partners through a set of integrated, strategic transactions, which will directly support our commitment to help lead the global energy transition.
  • Executed on the first year of a record five-year capital plan at San Diego Gas & Electric Co. (SDG&E) and Southern California Gas Co. (SoCalGas), while continuing our strong focus on safe and reliable operations.
  • Increased the five-year capital plan at Oncor Electric Delivery Co. LLC (Oncor) to $12.2 billion for 2021-2025.
  • Delivered total shareholder return of 232% since 2010, exceeding the return of the S&P 500 Utilities Index during the same period.
  • Achieved record financial results and exceeded our increased 2020 adjusted earnings-per-common-share (EPS) guidance range.(1)
  • Donated more than $42 million in charitable contributions from the Sempra Energy family of companies to nonprofit organizations in the communities where we operate.

(1) Represents a non-GAAP financial measure (GAAP represents principles generally accepted in the United States of America). See A-pages in the 2020 Annual Report for an explanation and reconciliation of non-GAAP financial measures.
This Letter to Shareholders is part of the 2020 Annual Report and should be read together with the full 2020 Annual Report, which is linked under “Downloads” below.

Shaping the Future of Energy

Each of our operating companies is playing a key role in delivering essential energy to some of the biggest economies in the world. We are delivering cleaner forms of energy to our customers while concentrating our investments in transmission and distribution infrastructure — the section of the energy value chain that we believe provides attractive, risk-adjusted returns to our owners.

Our U.S. utility businesses are driving innovation in areas such as hydrogen research and development and electric vehicle infrastructure, all while furthering the use of renewable energy by our customers.

On a global scale, we are promoting renewable energy adoption in the developing world with grid support from lower-carbon energy resources like liquefied natural gas (LNG). Through our Cameron LNG export facility, we are playing a critical role in transitioning growing economies to reliable supplies of natural gas in place of higher-carbon fuel sources, such as biomass, fuel oil and coal. With LNG operations on the Gulf Coast and projects under development on both the Gulf and Pacific Coasts of North America, we believe we are uniquely positioned to help our customers accelerate the global shift to sustainable energy systems.

View Our Sustainability Report 

Advancing Our High-Performance Culture

We believe we have the best workforce in the industry and our high-performance culture continues to set us apart. Our company’s culture is underpinned by a focus on safety. In 2020, the construction activities for Cameron LNG Phase 1 concluded with a remarkable safety record of more than 89 million hours without a lost-time incident. Additionally, SDG&E and SoCalGas both achieved record-setting safety performances in 2020 with their lowest injury and lost-time incident rates on record; Oncor logged 10 million hours without a lost-time incident; and IEnova achieved a 99th percentile score in health and safety according to a survey conducted in coordination with the U.S. National Safety Council. Across our family of companies, we are realizing the benefits of our safety-focused mindset in which everyone feels responsible for their own safety as well as the safety of others.

Another key factor in our high performance is our long-standing commitment to an inclusive workplace, where we value diverse views, backgrounds and experiences. We believe these factors improve decision making, advance innovation, and ultimately deliver a culture that reflects the ideal of service to others. This year, we will continue to take concrete actions to advance our high-performance culture and maintain a workplace where everyone feels empowered to bring their authentic and best selves to work.

Driving Sustainable Value

At Sempra Energy, we are committed to environmental, social and governance performance in everything that we do. Sempra Energy has been consistently recognized as a leader in sustainable business practices and for our long-standing commitment to diversity and inclusion. For the past three years, we have been the only North American utility sector company included on the Dow Jones Sustainability World Index. We were named one of the “World’s Most Admired Companies” for the 11th year by Fortune Magazine; named to Forbes and Just Capital’s JUST 100 list, which recognizes companies doing right by all their stakeholders; listed on the Bloomberg Gender-Equality Index; and named a “Best Place to Work for LGBTQ Equality” by the Human Rights Campaign.

Looking ahead, we are committed to expanding our position as a leader in the North American markets where we operate — California, Texas, Mexico and the LNG export market. We are working to enhance the value of energy infrastructure for customers across North America, while expanding lower-carbon energy choices and energy access and affordability. As the owner of one of the largest energy networks in North America, we are confident that our strategy of making critical new investments primarily focused on transmission and distribution infrastructure will help accelerate the energy transition. Our role in the energy value chain will help us assert a leadership position in working to decarbonize every market we serve. Moreover, we also expect these activities to increase shareholder value by producing strong organic growth and improved earnings visibility.

At Sempra Energy, we have set out to boldly build a different type of energy company — one that is focused on the empowering value of energy infrastructure. As a purpose-driven and values-led company, we are striving to build a cleaner and smarter grid as part of our commitment to help lead a carbon-neutral society, while also delivering increased value to our shareholders.

I am proud to lead an outstanding leadership team, as well as one of the most talented workforces in our industry. In everything that we do, you can count on us to prioritize creating sustainable value for our shareholders and other stakeholders as we work to have a positive impact in our communities and our society.

Ever forward together,

Jeff Martin signature

Jeffrey W. Martin
Chairman and Chief Executive Officer

About Sempra

Sempra Energy’s mission is to be North America’s premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the biggest energy networks in North America serving some of the largest economies in the world. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture and advancing diversity and inclusion. Sempra is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the “World’s Most Admired Companies” for 2021 by Fortune Magazine.

View Our Awards

Our Companies

San Diego Gas & Electric Co.

SDG&E is an innovative San Diego-based energy company that provides clean, safe and reliable energy to approximately 3.7 million consumers in San Diego and southern Orange counties.

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Learn More

Southern California Gas Co.

SoCalGas is the largest natural gas distribution utility in the U.S., delivering affordable, reliable, clean and increasingly renewable gas service to approximately 22 million consumers.

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Learn More


IEnova develops, builds and operates energy infrastructure in Mexico, and is one of the largest private energy companies in the country.

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Learn More

Sempra LNG

Sempra LNG’s mission is being North America’s premier LNG infrastructure company by providing sustainable, safe and reliable access to U.S. natural gas for global markets.

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Learn More

Oncor Electric Delivery Co. LLC*

Oncor, based in Dallas, Texas, operates the largest transmission and distribution system in the state, delivering safe and reliable energy to approximately 10 million Texans.

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Learn More

*Sempra Energy indirectly owns 80.25% of Oncor.

Financial Highlights

Comparative Total Returns

Consolidated Data

In millions, except per-share amounts 2018 2019 2020
(1) Represents a non-GAAP financial measure. See A-pages in the 2020 Annual Report for an explanation of reconciliation of non-GAAP financial measures.
Revenues $10,102 $10,829 $11,370
Earnings $924 $2,055 $3,764
Adjusted Earnings(1) $1,503 $1,911 $2,350
Earnings Per Common Share (EPS):
Basic $3.45 $7.40 $12.93
Diluted $3.42 $7.29 $12.88
Adjusted Diluted(1) $5.57 $6.78 $8.03
Diluted Weighted-Average Number of Common Shares Outstanding
GAAP 269.9 282.0 292.3
Adjusted(1) 269.9 282.0 305.7
Total Assets $60,638 $65,665 $66,623
Dividends Declared Per Common Share $3.58 $3.87 $4.18
Debt-to-Total Capitalization Ratio 56% 54% 49%
Book Value Per Common Share $54.35 $60.58 $70.11


Full 2020 Annual Report
2020 Form 10-K
2021 Proxy Statement

Corporate Information

Transfer Agent

American Stock Transfer & Trust Company, LLC Attn: Sempra Energy
6201 15th Avenue
Brooklyn, NY 11219
Telephone: 877-773-6772
Hearing Impaired (TTY):
866-703-9077 or 718-921-8386

Shareholder Services

Investors with general questions regarding Sempra Energy or Southern California Gas Company securities should contact the company at:
Sempra Energy
Shareholder Services
488 8th Avenue
San Diego, CA 92101
Telephone: 877-736-7727

News and Information

Sempra Energy’s Annual Report on Form 10-K filed with the Securities and Exchange Commission which includes as exhibits the certifications filed by Sempra Energy’s chief executive officer and chief financial officer under the Sarbanes-Oxley Act of 2002, is available to shareholders at no charge by writing to the company’s Shareholder Services Department. This information, as well as our Corporate Governance Guidelines, Code of Business Conduct and Ethics for Board of Directors and Senior Officers and standing board committee charters, also are available on the company’s website at

Investor Relations

Security analysts, portfolio managers and other members of the financial community should contact:
Lindsay Gartner
Director – Investor Relations
Telephone: 619-696-2901

Stock Exchange Listings

Sempra Energy Common Stock:
Ticker Symbol: SRE
New York Stock Exchange

Sempra Energy Preferred Stock:
Ticker Symbol: SREPRB
New York Stock Exchange

Sempra Energy Subordinated Notes:
Ticker Symbol: SREA
New York Stock Exchange

Direct Common Stock Investment Plan

Sempra Energy offers a Direct Common Stock Investment Plan as a simple, convenient and affordable way to invest in the company. Cash dividends from a participant’s account can be reinvested automatically in full or in part (but not less than 10% of each dividend) to purchase additional shares, or participants may choose to receive all or a portion of their cash dividends electronically or by check. Participation in the plan requires an initial investment of as little as $500. The plan allows additional cash investments of a minimum of $25 up to a maximum of $150,000 per calendar year. Brokerage commissions incurred in the purchase of shares will be paid by Sempra Energy. The plan is offered only by means of a prospectus, which can be obtained by calling the plan administrator, American Stock Transfer & Trust Company, LLC, at 877‑773‑6772, or through the Internet at

Information Regarding Forward-Looking Statements

We make statements in this report that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the filing date of the Annual Report on Form 10-K included herein. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.

In this report, forward-looking statements can be identified by words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “target,” “outlook,” “maintain,” “continue,” or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company’s (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; moves to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC’s (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director; volatility in foreign currency exchange and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control.

We caution you not to rely unduly on any forward-looking statements. You should review and consider carefully the risks, uncertainties, and other factors that affect our business as described herein and in other reports that we file with the Securities and Exchange Commission.

Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.