SDG&E 8-K 8-7-2014



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549



FORM 8-K

CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

  

  

  

  

Date of Report

 

(Date of earliest event reported):

August 7, 2014


  

  

SAN DIEGO GAS & ELECTRIC COMPANY

(Exact name of registrant as specified in its charter)

  

  

CALIFORNIA

 

1-03779

 

95-1184800

(State or other jurisdiction of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

  

  

8326 CENTURY PARK COURT, SAN DIEGO, CALIFORNIA

 

92123

(Address of principal executive offices)

 

(Zip Code)

  

  


Registrant's telephone number, including area code

(619) 696-2000

  

  

 

(Former name or former address, if changed since last report.)

  

  





  

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

[   ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 


  







FORM 8-K


Item 2.02   Results of Operations and Financial Condition.


The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of San Diego Gas & Electric Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


On August 7, 2014, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated earnings of $269 million, or $1.08 per diluted share of common stock, for the second quarter of 2014. The press release has been posted on Sempra Energy’s website (www.sempra.com) and a copy is attached as Exhibit 99.1.


Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Statement of Operations Data by Segment for the three months and six months ended June 30, 2014 and 2013. A copy of such information is attached as Exhibit 99.2.


The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding San Diego Gas & Electric Company’s results of operations and financial condition.



Item 9.01  Financial Statements and Exhibits.  

  

         Exhibits  


          99.1

August 7, 2014 Sempra Energy News Release (including tables).


          99.2

Sempra Energy’s Statement of Operations Data by Segment for the three months and six months ended June 30, 2014 and 2013.







SIGNATURE

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.  

  

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)

  

  


Date: August 7, 2014

By:  /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 

  







Exhibit 99.1

Exhibit 99.1




NEWS RELEASE


Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 340-8875

 

www.sempra.com

 

 

Financial Contact:

Kendall Helm

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com





SEMPRA ENERGY EARNINGS RISE IN

SECOND QUARTER 2014



·

Cameron LNG Receives FERC Authorization to Construct; Liquefaction-Export Project Advances with Final Investment Decision, Execution of Financing Documents


·

California Utilities Gain Regulatory Approval for Pipeline Safety Enhancement Plan


·

2014 Earnings-per-Share Guidance Range of $4.25 to $4.55 Reaffirmed; Company Expects to Be at or Above Midpoint



SAN DIEGO, Aug. 7, 2014 – Sempra Energy (NYSE: SRE) today reported second-quarter 2014 earnings of $269 million, or $1.08 per diluted share, up from 2013 earnings of $245 million, or $0.98 per diluted share.

Second-quarter 2013 financial results included retroactive impacts for San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas), based on the final California Public Utilities Commission (CPUC) General Rate Case decision issued in May 2013:  $77 million for the 2012 operations of SDG&E and SoCalGas; and $29 million for the first-quarter 2013 operations of SDG&E and SoCalGas.  Offsetting the retroactive earnings from the General Rate Case was a $119 million charge in the second quarter 2013 related to Southern California Edison’s decision to permanently retire the San Onofre Nuclear Generating Station (SONGS).  Excluding the SONGS charge and the retroactive earnings from the General Rate Case, Sempra Energy’s second-quarter 2013 adjusted earnings were $258 million, or $1.04 per diluted share.

Sempra Energy’s earnings for the first six months of 2014 increased to $516 million, or $2.07 per diluted share, from $423 million, or $1.70 per diluted share in the first six months of 2013.  SDG&E recorded an additional $9 million charge in the first quarter 2014 related to the closure of SONGS.  Excluding the SONGS charges in both years and the $77 million General Rate Case benefit in 2013 related to 2012 operations, Sempra Energy’s adjusted earnings for the first six months of 2014 were $525 million, or $2.11 per diluted share, compared with adjusted earnings of $465 million, or $1.87 per diluted share, in the year-earlier period.

 “Our financial performance in the second quarter and the first half of 2014 was strong and consistent with our full-year earnings guidance,” said Debra L. Reed, chairman and CEO of Sempra Energy.  “Additionally, we have made significant progress on several of our key projects.  With permitting nearly complete for the Cameron LNG liquefaction-export project, we and our partners have made the final investment decision to proceed and we plan to break ground later this year.  Our California utilities received the final CPUC decision that will allow them to move forward with their Pipeline Safety Enhancement Plan.  And, last week, Sempra U.S. Gas & Power signed a long-term power-purchase agreement with Southern California Edison for a major expansion of our Copper Mountain Solar complex in Nevada.”

  Yesterday, affiliates of Sempra Energy, Mitsubishi Corporation, Mitsui & Co., Ltd. and GDF SUEZ S.A., executed financing documents and completed the final investment decision to proceed with the Cameron LNG liquefaction-export project.  The three-train liquefaction facility in Hackberry, La., will provide an export capability of 12 million tonnes per annum of liquefied natural gas (LNG), or approximately 1.7 billion cubic feet per day (Bcf/d).  On June 19, Cameron LNG received authorization from the Federal Energy Regulatory Commission to site, construct and operate the facility.  


CALIFORNIA UTILITIES

San Diego Gas & Electric

Earnings for SDG&E were $123 million in the second quarter 2014, up from $65 million in last year’s second quarter, due primarily to higher CPUC base margin and improved operating results.  SDG&E’s second-quarter 2013 earnings included $69 million in retroactive earnings from the General Rate Case decision, offset by the $119 million charge related to the closure of SONGS.  Excluding the SONGS charge and the retroactive earnings from the General Rate Case, SDG&E’s adjusted second-quarter 2013 earnings were $115 million.

SDG&E’s earnings for the first six months of 2014 were $222 million, compared with $156 million in 2013.  Excluding the charges related to SONGS in both years and 2013 retroactive earnings from the General Rate Case related to 2012 operations, SDG&E’s adjusted earnings for the first six months of 2014 were $231 million, compared with adjusted earnings of $223 million in the first half of 2013.


Southern California Gas Co.

SoCalGas earnings in the second quarter 2014 were $80 million, compared with $118 million in last year’s second quarter.  SoCalGas’ second-quarter 2013 earnings included $37 million in retroactive earnings from the General Rate Case decision.  Excluding the retroactive earnings from the General Rate Case, SoCalGas’ adjusted second-quarter 2013 earnings were $81 million.

In the first half of 2014, SoCalGas’ earnings were $158 million, compared with $164 million in the year-ago period.  Excluding retroactive earnings from the General Rate Case related to 2012 operations, SoCalGas’ adjusted earnings in the first six months of 2013 were $139 million.

On June 12, the CPUC issued a final decision on SoCalGas’ and SDG&E’s Pipeline Safety Enhancement Plan application, adopting the utilities’ implementation plan and approving a process for cost recovery.  In 2011, the CPUC ordered each of the state’s natural gas utilities to develop an implementation plan for orderly and cost-effective testing or replacement of all natural gas transmission pipelines that have not been pressure-tested.


SEMPRA INTERNATIONAL

Sempra South American Utilities

In the second quarter 2014, Sempra South American Utilities had earnings of $42 million, up from $34 million in the second quarter 2013, due primarily to growth in customers and energy sales, as well as reduced operating costs.   

For the first six months of 2014, earnings for Sempra South American Utilities were $77 million, compared with $71 million in the first six months of 2013.


Sempra Mexico

Sempra Mexico’s second-quarter earnings increased to $34 million from $26 million in 2013, due primarily to regulatory earnings from projects in construction.

For the first six months of 2014, Sempra Mexico had earnings of $76 million, up from $57 million in the first half of 2013.

On July 16, Sempra Energy’s Mexican subsidiary, IEnova, announced the completion of the sale to a wholly owned subsidiary of InterGen N.V. of 50 percent of the first phase of Energía Sierra Juárez, a 155-megawatt (MW) wind energy project in Baja California, Mexico.  The first phase of the project is expected to come online in the first half of 2015.  Energía Sierra Juárez has a 20-year power-purchase agreement with SDG&E.


SEMPRA U.S. GAS & POWER

Sempra Renewables

Second-quarter earnings for Sempra Renewables were $18 million, compared with $15 million in 2013.

In the first half of 2014, earnings for Sempra Renewables were $46 million, up from $19 million during the same period last year, due primarily to a $16 million gain in the first quarter 2014 on the sale of a 50-percent equity interest in the Copper Mountain Solar 3 facility.

On July 31, Sempra U.S. Gas & Power signed a 20-year power-purchase agreement with Southern California Edison for the Copper Mountain Solar 4 project.  The agreement is for a 94-MW expansion, bringing total capacity to 550 MW at the Nevada solar energy complex.  Pending CPUC approval of the agreement, Copper Mountain Solar 4 is expected to be operational by the end of 2016.


Sempra Natural Gas

Earnings for Sempra Natural Gas in the second quarter 2014 were $4 million, compared with $9 million in the second quarter 2013.  

For the first six months of 2014, Sempra Natural Gas had earnings of $13 million, compared with $62 million in the first half of 2013.  Earnings in the first six months of 2013 included a $44 million first-quarter gain on the sale of a portion of the Mesquite Power plant.

In June, Sempra U.S. Gas & Power and its partners in the Rockies Express Pipeline initiated service on the 14.3-mile Seneca Lateral, allowing natural gas to be delivered to points west in Ohio, Indiana and Illinois.  The 1.8 Bcf/d of east-to-west capacity on the Rockies Express Pipeline now is fully contracted under long-term agreements.


EARNINGS GUIDANCE

Sempra Energy today said that, based on results to date and the outlook for the second half of the year, the company expects to achieve earnings at or above the midpoint of its 2014 earnings-per-share guidance range of $4.25 to $4.55.


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 9576063.


NON-GAAP FINANCIAL MEASURES

 

Non-GAAP financial measures include Sempra Energy’s adjusted earnings and adjusted earnings per share for second quarter 2013 and the first six months of 2014 and 2013.  Adjusted earnings for 2014 and 2013 for SDG&E and for 2013 for SoCalGas also are non-GAAP measures.  Additional information regarding these non-GAAP measures is in the appendix on Table A of the second-quarter financial tables.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2013 revenues of more than $10.5 billion.  The Sempra Energy companies’ 17,000 employees serve more than 31 million consumers worldwide.

###

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,” “plans,” “estimates,”  “projects,” “forecasts,” “contemplates,” “intends,” “depends,” “should,” “could,” “would,” “will,” “may,” “potential,” “target,” “pursue,” “goals,” “outlook,” “maintain” or similar expressions, or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions.  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 and the timing of actions, including issuances of permits to construct and licenses for operation, by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, Atomic Safety and Licensing Board, California Energy Commission, U.S. Environmental Protection Agency, California Air Resources Board and other regulatory, governmental and environmental bodies in the United States and other countries in which we operate; capital markets conditions, including the availability of credit and the liquidity of our investments; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining permits, licenses, certificates and other authorizations on a timely basis and risks in obtaining adequate and competitive financing for such projects; delays in the timing of costs incurred and the timing of regulatory agency authorization to recover such costs in rates from customers; inflation, interest and exchange rates; the impact of benchmark interest rates, generally Moody’s A-rated utility bond yields, on our California utilities’ cost of capital; 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, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures and the decommissioning of San Onofre Nuclear Generating Station (SONGS); weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent with nuclear power facilities and radioactive materials storage, including the catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the nuclear facility due to an extended outage and facility closure, and increased regulatory oversight; risks that partners or counterparties will be unable or unwilling to fulfill their contractual commitments; risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest; wars, terrorist attacks that threaten system operations and critical infrastructure, and cybersecurity threats to the energy grid and the confidentiality of proprietary information and the personal information of customers;  business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company’s electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through San Diego Gas & Electric Company’s electric transmission and distribution system; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements, due to insufficient market interest, unattractive pricing or other factors; 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.


Investors should not rely unduly on any forward-looking statement. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.


Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not regulated by the California Public Utilities Commission. Sempra International’s underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power’s underlying entities include Sempra Renewables and Sempra Natural Gas.









SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 Three months ended June 30,

 

Six months ended June 30,

(Dollars in millions, except per share amounts)

2014

 

2013

 

2014

 

2013

 

                    (unaudited)

REVENUES

 

 

 

 

 

 

 

Utilities

$        2,370

 

$        2,332

 

$        4,855

 

$        4,666

Energy-related businesses

308

 

319

 

618

 

635

    Total revenues

2,678

 

2,651

 

5,473

 

5,301

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

Utilities:

 

 

 

 

 

 

 

    Cost of natural gas

(395)

 

(365)

 

(1,015)

 

(921)

    Cost of electric fuel and purchased power

(571)

 

(477)

 

(1,081)

 

(924)

Energy-related businesses:

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(126)

 

(94)

 

(264)

 

(205)

    Other cost of sales

(42)

 

(49)

 

(80)

 

(97)

Operation and maintenance

(729)

 

(740)

 

(1,405)

 

(1,464)

Depreciation and amortization

(288)

 

(247)

 

(574)

 

(542)

Franchise fees and other taxes

(92)

 

(81)

 

(197)

 

(187)

Plant closure (loss) adjustment

-

 

(200)

 

13

 

(200)

Gain on sale of equity interest and assets

2

 

-

 

29

 

74

Equity earnings, before income tax

23

 

8

 

40

 

18

Other income, net

49

 

26

 

89

 

63

Interest income

5

 

4

 

9

 

10

Interest expense

(138)

 

(138)

 

(274)

 

(276)

Income before income taxes and equity earnings

 

 

 

 

 

 

 

    of certain unconsolidated subsidiaries

376

 

298

 

763

 

650

Income tax expense

(93)

 

(32)

 

(220)

 

(210)

Equity earnings, net of income tax

9

 

1

 

15

 

5

Net income

292

 

267

 

558

 

445

Earnings attributable to noncontrolling interests

(22)

 

(21)

 

(41)

 

(19)

Preferred dividends of subsidiaries

(1)

 

(1)

 

(1)

 

(3)

Earnings

$           269

 

$           245

 

$           516

 

$           423

 

 

 

 

 

 

 

 

Basic earnings per common share

$          1.10

 

$          1.00

 

$          2.10

 

$          1.74

Weighted-average number of shares outstanding, basic (thousands)

245,688

 

243,603

 

245,484

 

243,449

 

 

 

 

 

 

 

 

Diluted earnings per common share

$          1.08

 

$          0.98

 

$          2.07

 

$          1.70

Weighted-average number of shares outstanding, diluted (thousands)

250,061

 

248,515

 

249,816

 

248,279

 

 

 

 

 

 

 

 

Dividends declared per share of common stock

$          0.66

 

$          0.63

 

$          1.32

 

$          1.26

 

 

 

 

 

 

 

 






SEMPRA ENERGY

Table A (Continued)

 

 

 

 

 

 

 

 

 

Sempra Energy Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS EXCLUDING

 

 

PLANT CLOSURE LOSS IN 2013 AND 2014 AND RETROACTIVE IMPACTS OF 2012 GENERAL RATE CASE (GRC) IN 2013 (Unaudited)

 

 

 

 

 

 

 

 

 

 

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share exclude 1) in the three months ended June 30, 2013, a $119 million loss from plant closure resulting from the early retirement of the San Onofre Nuclear Generating Station (SONGS) and $77 million and $29 million retroactive impact of the 2012 GRC for the full-year 2012 and for the first quarter of 2013, respectively; 2) in the six months ended June 30, 2014, a $9 million charge to adjust the total loss from plant closure (in addition to the amount recorded in the second quarter of 2013) based upon a proposed settlement agreement filed with the California Public Utilities Commission (CPUC) in April 2014; and 3) in the six months ended June 30, 2013, the $119 million loss from plant closure and $77 million retroactive impact of the 2012 GRC for the full-year 2012. These are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of Sempra Energy's business operations from 2014 to 2013 and to future periods, and also as a base for projection of future compounded annual growth rate. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30,

 

June 30,

(Dollars in millions, except per share amounts)

 

2014

 

2013

 

2014

 

2013

Sempra Energy GAAP Earnings

 

$              269

 

$              245

 

$              516

 

$              423

Add: Plant closure loss

 

-

 

119

 

9

 

119

Less: Retroactive impact of 2012 GRC for full-year 2012

 

-

 

(77)

 

-

 

(77)

Less: Retroactive impact of 2012 GRC for first quarter of 2013

-

 

(29)

 

-

 

-

Sempra Energy Adjusted Earnings

 

$              269

 

$              258

 

$              525

 

$              465

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

Sempra Energy GAAP Earnings

 

$             1.08

 

$             0.98

 

$             2.07

 

$             1.70

Sempra Energy Adjusted Earnings

 

$             1.08

 

$             1.04

 

$             2.11

 

$             1.87

Weighted-average number of shares outstanding, diluted (thousands)

250,061

 

248,515

 

249,816

 

248,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas)

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SDG&E AND SOCALGAS GAAP EARNINGS TO ADJUSTED EARNINGS EXCLUDING PLANT CLOSURE LOSS

 

AT SDG&E IN 2013 AND 2014 AND RETROACTIVE IMPACTS OF 2012 GRC AT BOTH SDG&E AND SOCALGAS IN 2013 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

SDG&E Adjusted Earnings exclude 1) in the three months ended June 30, 2013, a $119 million loss from plant closure resulting from the early retirement of SONGS and $52 million and $17 million retroactive impact of the 2012 GRC for the full-year 2012 and for the first quarter of 2013, respectively; 2) in the six months ended June 30, 2014, a $9 million charge to adjust the total loss from plant closure (in addition to the amount recorded in the second quarter of 2013) based upon a proposed settlement agreement filed with the CPUC in April 2014; and 3) in the six months ended June 30, 2013, the $119 million loss from plant closure and $52 million retroactive impact of the 2012 GRC for the full-year 2012. These are non-GAAP financial measures. SoCalGas Adjusted Earnings exclude 1) in the three months ended June 30, 2013, $25 million and $12 million retroactive impact of the 2012 GRC for the full-year 2012 and for the first quarter of 2013, respectively; and 2) in the six months ended June 30, 2013, $25 million retroactive impact of the 2012 GRC for the full-year 2012. These are non-GAAP financial measures. Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of SDG&E's and SoCalGas' business operations from 2014 to 2013 and to future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to SDG&E Earnings and SoCalGas Earnings, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30,

 

June 30,

(Dollars in millions)

 

2014

 

2013

 

2014

 

2013

SDG&E GAAP Earnings

 

$              123

 

$                65

 

$              222

 

$              156

Add: Plant closure loss

 

-

 

119

 

9

 

119

Less: Retroactive impact of 2012 GRC for full-year 2012

 

-

 

(52)

 

-

 

(52)

Less: Retroactive impact of 2012 GRC for first quarter of 2013

-

 

(17)

 

-

 

-

SDG&E Adjusted Earnings

 

$              123

 

$              115

 

$              231

 

$              223

 

 

 

 

 

 

 

 

 

SoCalGas GAAP Earnings

 

$                80

 

$              118

 

$              158

 

$              164

Less: Retroactive impact of 2012 GRC for full-year 2012

 

-

 

(25)

 

-

 

(25)

Less: Retroactive impact of 2012 GRC for first quarter of 2013

-

 

(12)

 

-

 

-

SoCalGas Adjusted Earnings

 

$                80

 

$                81

 

$              158

 

$              139

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Dollars in millions)

2014

 

2013(1)

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$               789

 

$               904

 

Restricted cash

20

 

24

 

Accounts receivable, net

1,239

 

1,522

 

Due from unconsolidated affiliates

4

 

4

 

Income taxes receivable

122

 

85

 

Deferred income taxes

390

 

301

 

Inventories

267

 

287

 

Regulatory balancing accounts – undercollected

780

 

556

 

Other regulatory assets

40

 

38

 

Fixed-price contracts and other derivatives

101

 

106

 

Asset held for sale, power plant

293

 

-

 

Other

150

 

170

 

 

 

Total current assets

4,195

 

3,997

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

Restricted cash

29

 

25

 

Due from unconsolidated affiliate

38

 

14

 

Regulatory assets arising from pension and other postretirement benefit obligations

449

 

435

 

Other regulatory assets

2,101

 

2,113

 

Nuclear decommissioning trusts

1,096

 

1,034

 

Investments

1,769

 

1,575

 

Goodwill

1,000

 

1,024

 

Other intangible assets

421

 

426

 

Sundry

1,197

 

1,141

 

 

 

Total investments and other assets

8,100

 

7,787

Property, plant and equipment, net

26,012

 

25,460

Total assets

$           38,307

 

$           37,244

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

$            1,238

 

$               545

 

Accounts payable

1,154

 

1,215

 

Dividends and interest payable

277

 

271

 

Accrued compensation and benefits

271

 

376

 

Regulatory balancing accounts – overcollected

-

 

91

 

Current portion of long-term debt

195

 

1,147

 

Fixed-price contracts and other derivatives

50

 

55

 

Customer deposits

149

 

154

 

Other

548

 

515

 

 

 

Total current liabilities

3,882

 

4,369

Long-term debt

12,323

 

11,253

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

Customer advances for construction

150

 

155

 

Pension and other postretirement benefit obligations, net of plan assets

675

 

667

 

Deferred income taxes

3,010

 

2,804

 

Deferred investment tax credits

40

 

42

 

Regulatory liabilities arising from removal obligations

2,746

 

2,623

 

Asset retirement obligations

2,018

 

2,084

 

Fixed-price contracts and other derivatives

223

 

228

 

Deferred credits and other

1,189

 

1,169

 

 

 

Total deferred credits and other liabilities

10,051

 

9,772

Equity:

 

 

 

 

Total Sempra Energy shareholders’ equity

11,194

 

11,008

 

Preferred stock of subsidiary

20

 

20

 

Other noncontrolling interests

837

 

822

 

 

 

Total equity

12,051

 

11,850

Total liabilities and equity

$           38,307

 

$           37,244

 

 

 

 

 

 

 

(1)

Derived from audited financial statements.






SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Six months ended June 30,

(Dollars in millions)

 

2014

 

2013

 

 

 

(unaudited)

Cash Flows from Operating Activities

 

 

 

 

Net income

 $

558

 $

445

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

574

 

542

 

Deferred income taxes and investment tax credits

 

105

 

251

 

Gain on sale of equity interest and assets

 

(29)

 

(74)

 

Plant closure (adjustment) loss

 

(13)

 

200

 

Equity earnings

 

(55)

 

(23)

 

Fixed-price contracts and other derivatives

 

(17)

 

(28)

 

Other

 

(6)

 

1

Net change in other working capital components

 

(125)

 

20

Changes in other assets

 

21

 

(237)

Changes in other liabilities

 

21

 

8

 

Net cash provided by operating activities

 

1,034

 

1,105

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

Expenditures for property, plant and equipment

 

(1,513)

 

(1,130)

Expenditures for investments

 

(160)

 

(5)

Proceeds from sale of equity interest and assets, net of cash sold

 

66

 

384

Proceeds from U.S. Treasury grants

 

 

74

Distributions from investments

 

6

 

95

Purchases of nuclear decommissioning and other trust assets

 

(356)

 

(330)

Proceeds from sales by nuclear decommissioning and other trusts

 

350

 

326

Decrease in restricted cash

 

87

 

143

Increase in restricted cash

 

(87)

 

(186)

Advances to unconsolidated affiliates

 

(24)

 

Other

 

10

 

2

 

Net cash used in investing activities

 

(1,621)

 

(627)

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

Common dividends paid

 

(301)

 

(299)

Preferred dividends paid by subsidiaries

 

(1)

 

(3)

Issuances of common stock

 

28

 

22

Repurchases of common stock

 

(37)

 

(45)

Issuances of debt (maturities greater than 90 days)

 

2,345

 

894

Payments on debt (maturities greater than 90 days)

 

(1,475)

 

(1,134)

Proceeds from sale of noncontrolling interests, net of $25 in offering costs

 

 

574

Decrease in short-term debt, net

 

(54)

 

(10)

Distributions to noncontrolling interests

 

(23)

 

(13)

Other

 

(10)

 

18

 

Net cash provided by financing activities

 

472

 

4

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(3)

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(115)

 

479

Cash and cash equivalents, January 1

 

904

 

475

Cash and cash equivalents, June 30

 $

789

 $

954

 

 

 

 

 

 






SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

(Dollars in millions)

2014

 

2013

 

2014

 

2013

 

 

 

 

                    (unaudited)

 

Earnings (Losses)

 

 

 

 

 

 

 

 

California Utilities:

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$              123

 

$             65

 

$              222

 

$            156

 

Southern California Gas

80

 

118

 

158

 

164

 

Sempra International:

 

 

 

 

 

 

 

 

Sempra South American Utilities

42

 

34

 

77

 

71

 

Sempra Mexico

34

 

26

 

76

 

57

 

Sempra U.S. Gas & Power:

 

 

 

 

 

 

 

 

Sempra Renewables

18

 

15

 

46

 

19

 

Sempra Natural Gas

4

 

9

 

13

 

62

 

Parent and other

(32)

 

(22)

 

(76)

 

(106)

 

Earnings

$              269

 

$            245

 

$              516

 

$            423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

(Dollars in millions)

2014

 

2013

 

2014

 

2013

 

 

 

 

                    (unaudited)

 

Capital Expenditures and Investments

 

 

 

 

 

 

 

 

California Utilities:

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$              249

 

$            209

 

$              543

 

$            446

 

Southern California Gas

240

 

161

 

500

 

340

 

Sempra International:

 

 

 

 

 

 

 

 

Sempra South American Utilities

58

 

44

 

90

 

66

 

Sempra Mexico

114

 

100

 

189

 

161

 

Sempra U.S. Gas & Power:

 

 

 

 

 

 

 

 

Sempra Renewables

165

 

55

 

276

 

66

 

Sempra Natural Gas

27

 

29

 

67

 

55

 

Parent and other

7

 

1

 

8

 

1

 

Consolidated Capital Expenditures and Investments

$              860

 

$            599

 

$           1,673

 

$         1,135

 

 

 

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

 

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

UTILITIES

 

2014

 

2013

 

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

California Utilities - SDG&E and SoCalGas

 

 

 

 

 

 

 

 

 

 

Gas Sales (bcf)(1)

 

68

 

74

 

 

180

 

214

 

Transportation (bcf)(1)

 

158

 

162

 

 

320

 

330

 

Total Deliveries (bcf)(1)

 

226

 

236

 

 

500

 

544

 

Total Gas Customers (Thousands)

 

 

 

 

 

 

6,720

 

6,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)(1)

 

3,827

 

3,792

 

 

7,724

 

7,816

 

Direct Access (Millions of kWhs)

 

816

 

759

 

 

1,704

 

1,594

 

Total Deliveries (Millions of kWhs)(1)

 

4,643

 

4,551

 

 

9,428

 

9,410

 

Total Electric Customers (Thousands)

 

 

 

 

 

 

1,413

 

1,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Utilities

 

 

 

 

 

 

 

 

 

 

Natural Gas Sales (bcf)

 

 

 

 

 

 

 

 

 

 

 

Mexico

 

5

 

6

 

 

11

 

12

 

 

Mobile Gas(2)

 

9

 

10

 

 

20

 

21

 

 

Willmut Gas

 

1

 

1

 

 

2

 

2

 

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

 

Mexico

 

 

 

 

 

 

102

 

95

 

 

Mobile Gas

 

 

 

 

 

 

86

 

87

 

 

Willmut Gas

 

 

 

 

 

 

19

 

19

 

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

 

Peru

 

1,817

 

1,742

 

 

3,668

 

3,488

 

 

Chile

 

708

 

689

 

 

1,496

 

1,450

 

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

 

1,013

 

977

 

 

Chile

 

 

 

 

 

 

648

 

633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ENERGY-RELATED BUSINESSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra International

 

 

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

 

Sempra Mexico

 

830

 

736

 

 

1,932

 

1,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra U.S. Gas & Power

 

 

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

 

Sempra Renewables(3)

641

 

683

 

 

1,279

 

1,381

 

 

Sempra Natural Gas(4)

 

1,183

 

795

 

 

2,435

 

1,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes intercompany sales.

 

 

 

 

 

 

 

 

 

 

(2)

Includes transportation.

 

(3)

Includes 50% of total power sold related to wind projects in which Sempra Energy has a 50% ownership. These subsidiaries

 

are not consolidated within Sempra Energy and the related investments are accounted for under the equity method.

 

(4)

Sempra Natural Gas sold one 625-megawatt (MW) block of its 1,250-MW Mesquite Power natural gas-fired power plant

 

 

in February 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Exhibit 99.2

Exhibit 99.2



         SEMPRA ENERGY

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South
American
Utilities

 

Sempra
Mexico

 

Sempra Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$        1,063

 

$       917

 

$            390

 

$           186

 

$              9

 

$         236

 

$               (123)

 

 

$     2,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(690)

 

(688)

 

(310)

 

(134)

 

(11)

 

(225)

 

103

 

 

(1,955)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(131)

 

(107)

 

(13)

 

(15)

 

(2)

 

(16)

 

(4)

 

 

(288)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of asset

 

-

 

-

 

2

 

-

 

-

 

-

 

-

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, before income tax

 

-

 

-

 

-

 

-

 

9

 

14

 

-

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

7

 

3

 

4

 

12

 

1

 

-

 

22

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (1)

 

249

 

125

 

73

 

49

 

6

 

9

 

(2)

 

 

509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense(2)

 

(51)

 

(17)

 

(6)

 

(3)

 

(1)

 

(1)

 

(55)

 

 

(134)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(69)

 

(28)

 

(18)

 

(12)

 

13

 

(3)

 

24

 

 

(93)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, net of income tax

 

-

 

-

 

-

 

9

 

-

 

-

 

-

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Earnings) losses attributable to noncontrolling interests

 

(6)

 

-

 

(7)

 

(9)

 

-

 

(1)

 

1

 

 

(22)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$          123

 

$         80

 

$              42

 

$            34

 

$            18

 

$             4

 

$                 (32)

 

 

$        269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South
American
Utilities

 

Sempra
Mexico

 

Sempra Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$        1,064

 

$       904

 

$            371

 

$           163

 

$            30

 

$         218

 

$                 (99)

 

 

$     2,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(632)

 

(645)

 

(290)

 

(112)

 

(14)

 

(192)

 

79

 

 

(1,806)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(107)

 

(80)

 

(15)

 

(15)

 

(7)

 

(20)

 

(3)

 

 

(247)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant closure loss

 

(200)

 

-

 

-

 

-

 

-

 

-

 

-

 

 

(200)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, before income tax

 

-

 

-

 

-

 

-

 

(3)

 

11

 

-

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

9

 

3

 

-

 

(5)

 

5

 

2

 

12

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (1)

 

134

 

182

 

66

 

31

 

11

 

19

 

(11)

 

 

432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense(2)

 

(50)

 

(19)

 

(2)

 

(3)

 

(5)

 

(3)

 

(53)

 

 

(135)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(12)

 

(45)

 

(17)

 

(2)

 

9

 

(6)

 

41

 

 

(32)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(7)

 

8

 

-

 

-

 

-

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Earnings) losses attributable to noncontrolling interests

 

(7)

 

-

 

(6)

 

(8)

 

-

 

(1)

 

1

 

 

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$            65

 

$       118

 

$              34

 

$            26

 

$            15

 

$             9

 

$                 (22)

 

 

$        245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our

 

operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Net Interest Expense includes interest income, interest expense and preferred dividends of subsidiaries.







         SEMPRA ENERGY

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South
American
Utilities

 

Sempra
Mexico

 

Sempra Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$       2,050

 

$    2,002

 

$            768

 

$           387

 

$            15

 

$         496

 

$               (245)

 

 

$     5,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(1,339)

 

(1,539)

 

(611)

 

(269)

 

(23)

 

(468)

 

207

 

 

(4,042)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(261)

 

(212)

 

(27)

 

(31)

 

(3)

 

(33)

 

(7)

 

 

(574)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant closure adjustment

 

13

(1)

-

 

-

 

-

 

-

 

-

 

-

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of equity interest and asset

 

-

 

-

 

2

 

-

 

27

 

-

 

-

 

 

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, before income tax

 

-

 

-

 

-

 

-

 

11

 

29

 

-

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

20

 

7

 

5

 

22

 

1

 

1

 

33

 

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (2)

 

483

 

258

 

137

 

109

 

28

 

25

 

(12)

 

 

1,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense (3)

 

(101)

 

(34)

 

(11)

 

(7)

 

(1)

 

(2)

 

(110)

 

 

(266)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(152)

 

(66)

 

(33)

 

(24)

 

19

 

(9)

 

45

 

 

(220)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(2)

 

17

 

-

 

-

 

-

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Earnings) losses attributable to noncontrolling interests

 

(8)

 

-

 

(14)

 

(19)

 

-

 

(1)

 

1

 

 

(41)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$          222

 

$       158

 

$              77

 

$            76

 

$            46

 

$          13

 

$                 (76)

 

 

$        516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South
American
Utilities

 

Sempra
Mexico

 

Sempra Renewables

 

Sempra
Natural Gas

 

Consolidating
Adjustments,
Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$       2,003

 

$    1,887

 

$            755

 

$           331

 

$            51

 

$         471

 

$               (197)

 

 

$     5,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(1,269)

 

(1,445)

 

(591)

 

(225)

 

(27)

 

(412)

 

171

 

 

(3,798)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(241)

 

(180)

 

(30)

 

(31)

 

(15)

 

(40)

 

(5)

 

 

(542)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant closure loss

 

(200)

 

-

 

-

 

-

 

-

 

-

 

-

 

 

(200)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of asset

 

-

 

-

 

-

 

-

 

-

 

74

 

-

 

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, before income tax

 

-

 

-

 

-

 

-

 

(2)

 

20

 

-

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

20

 

7

 

3

 

4

 

5

 

4

 

20

 

 

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (2)

 

313

 

269

 

137

 

79

 

12

 

117

 

(11)

 

 

916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense (3)

 

(98)

 

(36)

 

(4)

 

(4)

 

(10)

 

(15)

 

(102)

 

 

(269)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(63)

 

(69)

 

(34)

 

(28)

 

17

 

(39)

 

6

 

 

(210)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(14)

 

19

 

-

 

-

 

-

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses (earnings) attributable to noncontrolling interests

 

4

 

-

 

(14)

 

(9)

 

-

 

(1)

 

1

 

 

(19)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$          156

 

$       164

 

$              71

 

$            57

 

$            19

 

$          62

 

$               (106)

 

 

$        423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

After taxes, including a $17 million charge to reduce certain tax regulatory assets attributed to SONGS, the adjustment to loss from plant closure is a $9 million charge to earnings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our

 

operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

Net Interest Expense includes interest income, interest expense and preferred dividends of subsidiaries.