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Nov 3, 2011

Sempra Energy Reports Higher 2011 Earnings, Raises Dividend 25 Percent

Sempra Energy's Third-Quarter 2011 Earnings per Share Rise

  • Quarterly Earnings per Share of $1.22 Reflect Strong Operating Results, Growth Across Businesses
  • Company Reaffirms 2011 Earnings-per-Share Guidance of $4 to $4.30, Excluding Gain on South American Utility Acquisitions

SAN DIEGO, Nov. 3, 2011 - Sempra Energy (NYSE: SRE) today reported third-quarter 2011 earnings of $296 million, or $1.22 per diluted share, up from $131 million, or $0.53 per diluted share, in the third quarter 2010.

Third-quarter 2010 results included an after-tax charge of $139 million, or $0.56 per diluted share, from the write-down of Sempra Energy's investment in the RBS Sempra Commodities joint venture, which was sold last year.

Sempra Energy's earnings for the first nine months of 2011 were $1.1 billion, or $4.40 per diluted share, up from $459 million, or $1.84 per diluted share, in the same period last year. Excluding a second-quarter 2011 gain of $277 million related to the South American utility acquisitions, Sempra Energy's nine-month earnings in 2011 were $788 million, or $3.26 per diluted share.

"Based on our excellent results in the third quarter and continued progress on our major projects, we expect to meet our financial and operational objectives for the year," said Debra L. Reed, chief executive officer of Sempra Energy.

In September, Sempra Energy announced several key executive appointments. Additionally, the company announced that, effective Jan. 1, 2012, its Sempra Generation, Sempra Pipelines & Storage and Sempra LNG subsidiaries will be consolidated into two new operating units: Sempra International and Sempra U.S. Gas & Power.

OPERATING HIGHLIGHTS

San Diego Gas & Electric
Earnings for San Diego Gas & Electric (SDG&E) increased to $113 million in the third quarter 2011 from $106 million in last year's third quarter, due primarily to higher earnings for construction projects in progress, including the Sunrise Powerlink transmission line.

For the first nine months of 2011, SDG&E's earnings were $273 million, compared with $264 million in the first nine months of 2010.

Southern California Gas Co.
Southern California Gas Co. (SoCalGas) earnings were $81 million in the third quarter 2011, compared with $78 million in the third quarter 2010.

For the nine-month period, SoCalGas' earnings were $208 million in 2011, compared with $212 million last year.

Sempra Generation
In the third quarter 2011, Sempra Generation's earnings were $49 million, compared with $59 million in the prior-year's quarter, primarily due to lower earnings from the company's natural gas-fired power plants, partially offset by an income-tax benefit.

For the first nine months of 2011, Sempra Generation's earnings rose to $143 million from $60 million in the first nine months of 2010. The nine-month results in 2010 included a charge of $86 million related to a litigation settlement.

Sempra Pipelines & Storage
Third-quarter earnings for Sempra Pipelines & Storage increased to $66 million in 2011 from $43 million last year, due primarily to the company's increased ownership in the South American utilities and a foreign-currency gain in Chile.

For the nine-month period, earnings for Sempra Pipelines & Storage rose to $457 million in 2011 from $120 million in 2010. The nine-month earnings for 2011 included the second-quarter gain of $277 million related to the South American utility acquisitions.

Sempra LNG
Sempra LNG earned $24 million in the third quarter 2011, up from $5 million in last year's third quarter, due primarily to additional revenues for contracted cargoes that were not delivered.

In the first nine months of 2011, Sempra LNG earnings rose to $75 million from $50 million in the same period last year.

Earnings Outlook
Sempra Energy today reaffirmed its earnings-per-share guidance for 2011 of $4 to $4.30, excluding the gain related to the South American utility acquisitions in the second quarter 2011. On a GAAP basis, the company's earnings-per-share guidance for 2011 is $5.14 to $5.44.

Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 1645521.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2010 revenues of $9 billion. The Sempra Energy companies' 17,500 employees serve more than 31 million consumers worldwide.

Non-GAAP Financial Measures
The 2011 nine-month earnings for Sempra Energy and Sempra Energy's 2011 earnings-per-share guidance excluding the gain on the South American utility acquisitions are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the third-quarter financial tables.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "would," "could," "should," "potential," "target," "depends," or similar expressions, or discussions of strategies, plans or intentions. These forward-looking statements represent our estimates and assumptions only as of the date of this news release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of our investments; inflation, interest and exchange rates; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; wars, terrorist attacks and cybersecurity threats; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts and construction, maintenance and capital projects; the inability or determination not to enter into long-term supply and sales agreements or long-term capacity agreements; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.

Sempra Generation, Sempra LNG and Sempra Pipelines & Storage are not the same company as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Generation, Sempra LNG and Sempra Pipelines & Storage are not regulated by the California Public Utilities Commission.

Media Contact:
Doug Kline
Sempra Energy
(877) 340-8875
www.sempra.com

Financial Contacts:
Scott Tomayko/Victor Vilaplana
Sempra Energy
(877) 736-7727
investor@sempra.com

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