DALLAS, Nov. 7, 2018 /PRNewswire/ -- Oncor Electric
Delivery Company LLC ("Oncor") today reported third quarter 2018
net income of $194 million compared
to third quarter 2017 net income of $157
million.
"We are pleased with our financial performance in the third
quarter," said Allen Nye, chief
executive of Oncor. "Our solid operational and financial results
are another example of the value we deliver for our customers, our
shareholders, and the state of Texas."
Oncor's net income of $426 million
for the nine months ended September 30,
2018 compared favorably to net income of $343 million for the nine months ended
September 30, 2017. Financial and
operational results are provided in Tables A, B, C and D below.
Operating Highlights
On October 18, 2018 Oncor
announced its intent to acquire 100 percent of the equity interests
of InfraREIT, Inc. (NYSE: HIFR) ("InfraREIT"), including all the
limited-partnership units in its subsidiary, InfraREIT Partners,
LP, for approximately $1.275
billion. Sempra Energy (NYSE: SRE), the owner of
80.25% of Oncor's outstanding membership interests, and certain
indirect equity holders of Texas Transmission Investment LLC, the
owner of 19.75% of Oncor's outstanding membership interests, have
provided an equity commitment letter for up to $1.330 billion to fund the cash consideration
payable by Oncor and the payment of certain fees and expenses
relating to the transaction. The transaction also includes
InfraREIT's outstanding debt, which totaled an aggregate of
approximately $945 million at
September 30, 2018. The transaction
is subject to regulatory approvals and the satisfaction of other
closing conditions. If all such regulatory approvals are
received and closing conditions are satisfied, Oncor expects to
close the transaction in mid-2019.
Sempra Energy Internet Broadcast Today
Sempra Energy will broadcast a live discussion of its earnings
results over the Internet today at 12 p.m.
EST with senior management of Sempra Energy, which will
include discussion of earnings and other information relating to
Oncor. Access is available at sempra.com. An accompanying slide
presentation will also be posted at sempra.com. For those unable to
obtain access to the live webcast, it will be available on replay a
few hours after its conclusion by dialing (888) 203-1112 and
entering passcode 9587918.
Oncor's Quarterly Report on Form 10-Q for the quarter ended
September 30, 2018 will be filed with
the U.S. Securities and Exchange Commission after Sempra Energy's
conference call.
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Oncor Electric
Delivery Company LLC
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Table A -
Condensed Statements of Consolidated Net Income
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Three and Nine
Months Ended September 30, 2018 and September 30, 2017; $
millions
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|
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Q3
18
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Q3
17(a)
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YTD
18
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YTD
17(a)
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Operating
revenues
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$1,095
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$1,068
|
$3,106
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$2,967
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Operating
expenses:
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|
|
|
|
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Wholesale
transmission service
|
237
|
230
|
719
|
690
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|
Operation and
maintenance
|
214
|
176
|
636
|
529
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Depreciation and
amortization
|
169
|
193
|
503
|
581
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Provision in lieu of
income taxes
|
54
|
97
|
134
|
209
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Taxes other than
amounts related to income taxes
|
128
|
120
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374
|
340
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Total operating
expenses
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802
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816
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2,366
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2,349
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Operating
income
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293
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252
|
740
|
618
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Other income and
(deductions) ‒ net
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(13)
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(13)
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(63)
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(35)
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Nonoperating benefit in
lieu of income taxes
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(3)
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(5)
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(13)
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(17)
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Interest expense and
related charges
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89
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87
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264
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257
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Net income
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$
194
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$
157
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$
426
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$
343
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(a) As adjusted for
the retrospective adoption of ASU 2017-07
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Oncor Electric
Delivery Company LLC
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Table B –
Operating Statistics
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Three and Nine
Months Ended September 30, 2018 and September 30, 2017; mixed
measures
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Q3
18
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Q3
17
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YTD
18
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YTD
17
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Electric energy volumes
(gigawatt-hours):
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Residential
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14,486
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13,750
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36,310
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32,238
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Other (b)
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23,677
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21,555
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63,946
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57,534
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Total electric energy
volumes
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38,163
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35,305
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100,256
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89,772
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Electricity
distribution points of delivery (end of period and in thousands)
(c)
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3,607
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3,483
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(b) Includes small
business, large commercial and industrial and all other
non-residential distribution points of delivery
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(c) Based on number
of active meters
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Oncor Electric
Delivery Company LLC
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Table C -
Condensed Consolidated Balance Sheets
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At September 30,
2018 and December 31, 2017; $ millions
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At
9/30/18
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At
12/31/17
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ASSETS
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Current
assets:
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Cash and cash
equivalents
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$
1
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$
21
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Trade accounts
receivable ‒ net
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688
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635
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Amounts
receivable from members related to income taxes
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-
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26
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Materials and
supplies inventories ‒ at average cost
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115
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91
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Prepayments
and other current assets
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95
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88
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Total current
assets
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899
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861
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Investments and other
property
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121
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113
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Property, plant and
equipment – net
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15,782
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14,879
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Goodwill
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4,064
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4,064
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Regulatory
assets
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1,850
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2,180
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Other noncurrent
assets
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20
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23
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Total
assets
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$22,736
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$22,120
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LIABILITIES AND
MEMBERSHIP INTERESTS
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Current
liabilities:
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Short-term
borrowings
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$
1,099
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$
950
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Long-term debt
due currently
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250
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550
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Trade accounts
payable
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253
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242
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Amounts
payable to members related to income taxes
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32
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21
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Accrued taxes
other than amounts related to income
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168
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190
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Accrued
interest
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92
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83
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Other current
liabilities
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190
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188
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Total current
liabilities
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2,084
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2,224
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Long-term debt, less
amounts due currently
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5,836
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5,567
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Liability in lieu of
deferred income taxes
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1,560
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1,517
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Regulatory
liabilities
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2,763
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2,807
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Employee benefit
obligations and other
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2,046
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2,102
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Total
liabilities
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14,289
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14,217
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Membership interests
:
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Capital account ―
number of interests outstanding 2018 and 2017 –
635,000,000
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8,544
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8,004
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Accumulated other
comprehensive loss
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(97)
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(101)
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Total membership interests
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8,447
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7,903
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Total liabilities and
membership interests
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$22,736
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$22,120
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Oncor Electric
Delivery Company LLC
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Table D -
Condensed Statements of Consolidated Cash Flows
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Nine Months Ended
September 30, 2018 and September 30, 2017; $
millions
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YTD
18
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YTD
17
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Cash flows – operating
activities:
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Net income
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$
426
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$
343
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Adjustments to
reconcile net income to cash provided by operating
activities:
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Depreciation and
amortization
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589
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618
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Provision in lieu of
deferred income taxes – net
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37
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250
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Other –
net
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(1)
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(2)
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Changes in operating
assets and liabilities:
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Regulatory accounts
related to reconcilable tariffs
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130
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30
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Other operating
assets and liabilities
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(100)
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(189)
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Cash provided by
operating activities
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1,081
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1,050
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Cash flows — financing
activities:
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Issuances of
long-term debt
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800
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600
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Repayment of
long-term debt
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(825)
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(324)
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Change in short-term
borrowings
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149
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128
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Capital contributions
from members
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144
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-
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Distributions to
members
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(30)
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(237)
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Debt discount,
premium, financing and reacquisition costs
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(9)
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(4)
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Cash provided by
financing activities
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229
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163
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Cash flows — investing
activities:
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Capital
expenditures
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(1,345)
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(1,234)
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Other –
net
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15
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10
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Cash used in
investing activities
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(1,330)
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(1,224)
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Net change in cash and
cash equivalents
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(20)
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(11)
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Cash and cash
equivalents — beginning balance
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21
|
16
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Cash and cash
equivalents — ending balance
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$
1
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$
5
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Headquartered in Dallas,
Oncor Electric Delivery Company LLC is a regulated electricity
distribution and transmission business that uses superior asset
management skills to provide reliable electricity delivery to
consumers. Oncor operates the largest distribution and transmission
system in Texas, delivering power
to more than 3.5 million homes and businesses and operating more
than 134,000 miles of transmission and distribution lines in
Texas. While Oncor is owned by a
limited number of investors (including majority owner, Sempra
Energy), Oncor is managed by its Board of Directors, which
is comprised of a majority of disinterested directors.
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SOURCE Oncor Electric Delivery Company LLC