Oncor Reports Second Quarter 2019 Results

DALLAS, Aug. 2, 2019 /PRNewswire/ -- Oncor Electric Delivery Company LLC (Oncor) today reported second quarter 2019 results including net income of $139 million which was slightly lower than second quarter 2018 net income of $143 million. The results were driven primarily by below normal temperatures in the quarter compared to above normal temperatures in the second quarter of 2018.

"We are pleased with the growth and underlying business performance during the second quarter along with the continued integration of InfraREIT assets into our operations," said Allen Nye, chief executive officer of Oncor. "Despite numerous damaging storms that swept across our service territory, our employees continued to work safely to restore power to our customers.  We remain focused on providing safe, reliable electric service and investing in Texas' electric infrastructure."

Oncor's net income of $255 million for the six months ended June 30, 2019 compared favorably to net income of $232 million for the six months ended June 30, 2018.  Condensed financial and operational results are provided in Tables A, B, C and D below.

Operating Highlights

Oncor continues to operate a robust capital expenditures program and today is updating its previously announced capital expenditures projections. Based on a long-term plan presented to its board of directors and additional anticipated capital projects, including projected capital expenditures as a result of the InfraREIT acquisition, Oncor and its subsidiaries now expect capital expenditures of $2.1 billion in 2019 and $2.3 billion to $2.5 billion in each of the years 2020 through 2023.

On May 16, 2019, Oncor completed its acquisition of InfraREIT, Inc. (InfraREIT) and its subsidiaries for an aggregate purchase price of approximately $1.33 billion (consisting of cash consideration paid for the entities' outstanding equity interests and the payment of certain InfraREIT transaction expenses). In addition, Oncor extinguished all of the outstanding debt of InfraREIT and its subsidiaries, totaling approximately $953 million aggregate principal amount, by repaying $602 million aggregate principal amount of outstanding InfraREIT subsidiary debt and exchanging $351 million aggregate principal amount of outstanding InfraREIT subsidiary senior notes for newly issued Oncor senior secured notes. The acquisition greatly expands Oncor's existing footprint in Texas by adding various electricity transmission and distribution assets and projects in the north, central, west and panhandle regions of Texas. To fund the cash consideration and certain transaction expenses, Oncor received capital contributions from its members in an aggregate amount of approximately $1.33 billion.

Sempra Energy Internet Broadcast Today

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. (Eastern Time) with senior management of Sempra Energy, which will include discussion of Q2 results and other information relating to Oncor. Access is available by logging onto Sempra Energy's website, www.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 7726556.

Oncor's Quarterly Report on Form 10-Q for the period ended June 30, 2019 will be filed with the U.S. Securities and Exchange Commission after Sempra Energy's conference call and once filed, will be available on Oncor's website, www.oncor.com.

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 (together with its subsidiaries) operates the largest distribution and transmission system in Texas, delivering power to more than 3.6 million homes and businesses and operating more than 138,500 miles of transmission and distribution lines in Texas.  While Oncor is owned by two investors (indirect majority owner, Sempra Energy, and minority owner, Texas Transmission Investment LLC), Oncor is managed by its Board of Directors, which is comprised of a majority of disinterested directors.

Forward-Looking Statements

This news release contains forward-looking statements relating to Oncor within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. All statements in this news release, other than statements of historical facts (often, but not always, through the use of words or phrases such as "expects," "intends," "plans," "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "should," "projection," "target," "goal," "objective" and "outlook"), are forward-looking statements. They involve risks, uncertainties and assumptions. Further discussion of risks and uncertainties that could cause actual results to differ materially from management's current projections, forecasts, estimates and expectations is contained in filings made by Oncor with the U.S. Securities and Exchange Commission. Specifically, Oncor makes reference to the section entitled "Risk Factors" in its annual and quarterly reports. Any forward-looking statement speaks only as of the date on which it is made, and Oncor undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events.

SOURCE Oncor Electric Delivery Company LLC