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Sempra Energy 8-K 11-01-07

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):	November 1, 2007

SEMPRA ENERGY

(Exact name of registrant as specified in its charter)


CALIFORNIA	1-14201	33-0732627
(State of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)


101 ASH STREET, SAN DIEGO, CALIFORNIA		92101
(Address of principal executive offices)		(Zip Code)


Registrant's telephone number, including area code	(619) 696-2034

(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 Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On November 1, 2007, Sempra Energy issued a press release announcing consolidated net income of $305 million, or $1.15 per diluted share of common stock, for the third quarter of 2007. 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 Income Statement Data by Business Unit for the three months and nine months ended September 30, 2007 and 2006. A copy of such information is attached as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.

Exhibits

99.1

November 1, 2007 Sempra Energy News Release (including tables)

99.2

Sempra Energy's Income Statement Data by Business Unit for the three months and nine months ended September 30, 2007 and 2006.

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 thereunto duly authorized.

SEMPRA ENERGY
(Registrant)


Date: November 1, 2007	By: /S/ Joseph A. Householder
	Joseph A. Householder Sr. Vice President and Controller
	Joseph A. Householder Sr. Vice President and Controller

Exhibit 99.1

Exhibit 99.1

NEWS RELEASE


Media Contact:	Doug Kline
	Sempra Energy
	(877) 866-2066
	www.sempra.com


Financial Contact:	Glen Donovan
	Sempra Energy
	(877) 736-7727
	investor@sempra.com

SEMPRA ENERGY REPORTS

THIRD-QUARTER RESULTS,

EXPECTS TO EXCEED PRIOR 2007 GUIDANCE

Company Raises Full-Year Outlook to Above $4 per Share

SAN DIEGO, Nov. 1, 2007 – Sempra Energy (NYSE: SRE) today reported third-quarter 2007 income from continuing operations of $330 million, or $1.24 per diluted share. Third-quarter 2006 income from continuing operations — excluding $211 million, or $0.80 per diluted share, from the favorable impact of asset sales — was $332 million, or $1.27 per diluted share.

Sempra Energy’s net income in the third quarter 2007 was $305 million, or $1.15 per diluted share, compared with net income of $653 million, or $2.49 per diluted share, in the third quarter 2006, which included $318 million, or $1.21 per diluted share, in gains from asset sales.

“Our third-quarter performance reflects solid contributions from all of our businesses,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “Our 2007 earnings guidance was $3.75 to $3.95 per share. We now expect to exceed $4 per share for the full year.”

-more-

For the nine-month period in 2007, Sempra Energy’s income from continuing operations was $837 million, or $3.16 per diluted share. Income from continuing operations in 2006, excluding $204 million from the favorable impact of asset sales, was $758 million, or $2.91 per diluted share. Net income for the first nine months of 2007 was $810 million, or $3.06 per diluted share, compared with $1.3 billion, or $4.92 per diluted share, in the first nine months of 2006, which included $546 million, or $2.10 per diluted share, from the favorable impact of asset sales.

Revenues for Sempra Energy in the third quarter 2007 were $2.7 billion, unchanged from the prior-year’s quarter.

OPERATING HIGHLIGHTS

Sempra Utilities

Sempra Utilities – San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) – reported third-quarter net income of $186 million in 2007, compared with $131 million in 2006.

SDG&E’s third-quarter net income increased to $123 million in 2007 from $70 million in 2006. Third-quarter 2007 and 2006 results included a net benefit of $46 million and $9 million, respectively, from the resolution of prior-years’ income-tax issues and regulatory matters.

SoCalGas’ net income in the third quarter 2007 increased to $63 million from $61 million in the same quarter last year.

As a result of the wildfires that spread across Southern California during the week of Oct. 21, a state of emergency was declared for seven counties, all within SDG&E’s and SoCalGas’ service territories.

“These fires have been among the most devastating in the history of California,” said Felsinger. “I am proud of the way our employees have responded, working around the clock to repair facilities, restore service, aid our customers and extend a helping hand to the affected communities. They’ve done an incredible job under the most trying circumstances.”

-more-

Sempra Commodities

In the third quarter 2007, Sempra Commodities earned net income of $87 million, compared with $105 million in the third quarter 2006, primarily due to strong performance in every major product line, offset partially by a litigation charge and lower income from synthetic-fuel tax credit operations.

Sempra Energy’s joint venture with The Royal Bank of Scotland to create RBS Sempra Commodities LLP, announced in July 2007, has received approval from the Federal Energy Regulatory Commission. Regulatory approvals by the Federal Reserve Board and the U.K. Financial Services Authority are still pending. The joint-venture transaction now is expected to be completed in January 2008.

Sempra Generation

Sempra Generation’s third-quarter net income was $58 million in 2007, compared with $265 million last year, which included $211 million in gains on the sale of the company’s Texas power plants.

Sempra Pipelines & Storage

Third-quarter 2007 net income for Sempra Pipelines & Storage was $17 million, compared with $19 million in the third quarter 2006.

During the quarter, the International Centre for Settlement of Investment Disputes in Washington, D.C., awarded Sempra Energy approximately $172 million, including interest, over a 2002 dispute involving the company’s minority ownership in two Argentine natural gas utility holding companies. The dispute related to measures taken by the Argentine government in early 2002 that resulted in a reduction in the value of Sempra Energy’s Argentine utility investments. The company is seeking to enforce the arbitration award and has not recorded it in income.

-more-

Sempra LNG

Sempra LNG reported a net loss of $4 million in the third quarter 2007, down from a net loss of $13 million in the prior-year’s quarter. These improved results were due primarily to the favorable tax effects of foreign-currency adjustments.

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 Web site 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 the passcode 3858841.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2006 revenues of nearly $12 billion. The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers worldwide.

Complete financial tables, including income-statement information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/3Q2007.pdf.

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. When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should” or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. 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, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, U.K. Financial Services Authority, and other environmental and regulatory bodies in the United States and other countries; capital market conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas, electric power and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; 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; 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 company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company’s Web site, www.sempra.com.

Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.

###


SEMPRA ENERGY
Table A


*STATEMENTS OF CONSOLIDATED INCOME*


		Three months ended		Nine months ended
		September 30,		September 30,
(Dollars in millions, except per share amounts)		2007	2006	2007	2006
		(unaudited)
Operating revenues
Sempra Utilities		$ 1,515	$ 1,494	$ 5,194	$ 5,190
Sempra Global and parent		1,148	1,200	3,134	3,326
	Total operating revenues	2,663	2,694	8,328	8,516
Operating expenses
Sempra Utilities:
	Cost of natural gas	389	412	2,042	2,077
	Cost of electric fuel and purchased power	184	203	496	566
Sempra Global and parent:
	Cost of natural gas, electric fuel and purchased power	331	332	945	863
	Other cost of sales	256	384	796	1,073
Other operating expenses		699	655	2,065	1,980
Litigation expense		59	12	69	43
Depreciation and amortization		174	163	514	491
Franchise fees and other taxes		72	67	221	208
	Total operating expenses	2,164	2,228	7,148	7,301
Operating income		499	466	1,180	1,215
Other income, net		5	376	61	375
Interest income		12	34	62	73
Interest expense		(68)	(90)	(204)	(273)
Preferred dividends of subsidiaries		(2)	(2)	(7)	(7)
Income from continuing operations before income taxes and
	equity in earnings of certain unconsolidated subsidiaries	446	784	1,092	1,383
Income tax expense		135	257	341	461
Equity in earnings of certain unconsolidated subsidiaries		19	16	86	40
Income from continuing operations		330	543	837	962
Discontinued operations, net of income tax		(25)	110	(27)	319
Net income		$ 305	$ 653	$ 810	$ 1,281

Basic earnings per share:
	Income from continuing operations	$ 1.27	$ 2.11	$ 3.23	$ 3.76
	Discontinued operations, net of income tax	(0.10)	0.43	(0.11)	1.25
	Net income	$ 1.17	$ 2.54	$ 3.12	$ 5.01
Weighted-average number of shares outstanding (thousands)		259,563	257,487	259,742	255,834

Diluted earnings per share:
	Income from continuing operations	$ 1.24	$ 2.07	$ 3.16	$ 3.69
	Discontinued operations, net of income tax	(0.09)	0.42	(0.10)	1.23
	Net income	$ 1.15	$ 2.49	$ 3.06	$ 4.92
Weighted-average number of shares outstanding (thousands)		264,279	262,102	264,416	260,587
Dividends declared per share of common stock		$ 0.31	$ 0.30	$ 0.93	$ 0.90

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.


SEMPRA ENERGY
Table B

*CONSOLIDATED BALANCE SHEETS*

				September 30,	December 31,
(Dollars in millions)				2007	2006
				(unaudited)
Assets
Current assets:
	Cash and cash equivalents			$ 1,072	$ 920
	Restricted cash			1	4
	Trade accounts receivable, net			764	1,035
	Income taxes receivable			40	-
	Deferred income taxes			331	270
	Interest receivable			6	40
	Trading-related receivables and deposits, net			2,629	3,047
	Derivative trading instruments			3,241	4,068
	Commodities owned			2,182	1,845
	Inventories			325	215
	Regulatory assets			109	193
	Other			412	317
		Current assets of continuing operations		11,112	11,954
		Current assets of discontinued operations		18	62
			Total current assets	11,130	12,016

Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives			323	353
	Regulatory assets arising from pension and other postretirement
		benefit obligations		340	356
	Other regulatory assets			462	472
	Nuclear decommissioning trusts			745	702
	Investments			1,121	1,086
	Sundry			852	789
			Total investments and other assets	3,843	3,758
Property, plant and equipment, net				14,329	13,175
Total assets				$ 29,302	$ 28,949

Liabilities and Shareholders' Equity
Current liabilities:
	Short-term debt			$ 1,206	$ 252
	Accounts payable			1,196	1,587
	Due to unconsolidated affiliate			60	-
	Income taxes payable			-	9
	Trading-related payables			2,751	3,211
	Derivative trading instruments			2,074	2,304
	Commodities sold with agreement to repurchase			678	537
	Dividends and interest payable			153	145
	Regulatory balancing accounts, net			482	332
	Fixed-price contracts and other derivatives			62	87
	Current portion of long-term debt			7	681
	Other			1,157	1,197
		Current liabilities of continuing operations		9,826	10,342
		Current liabilities of discontinued operations		5	7
			Total current liabilities	9,831	10,349
Long-term debt				4,502	4,525

Deferred credits and other liabilities:
	Due to unconsolidated affiliate			102	162
	Customer advances for construction			131	126
	Pension and other postretirement benefit obligations, net of plan assets			603	609
	Deferred income taxes			519	412
	Deferred investment tax credits			63	67
	Regulatory liabilities arising from removal obligations			2,386	2,330
	Asset retirement obligations			1,219	1,128
	Other regulatory liabilities			233	221
	Fixed-price contracts and other derivatives			326	358
	Deferred credits and other			963	961
			Total deferred credits and other liabilities	6,545	6,374
Preferred stock of subsidiaries				179	179
Minority interests				165	11
Shareholders' equity				8,080	7,511
Total liabilities and shareholders' equity				$ 29,302	$ 28,949

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.


SEMPRA ENERGY
Table C

*CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS*
		Nine months ended
		September 30,
(Dollars in millions)		2007	2006
		(Unaudited)
Cash Flows from Operating Activities:
Net income		$ 810	$ 1,281
Adjustments to reconcile net income to net cash
provided by operating activities:
	Discontinued operations	27	(319)
	Depreciation and amortization	514	491
	Deferred income taxes and investment tax credits	42	(56)
	Equity in income of unconsolidated subsidiaries	(75)	(380)
	Tax benefits from share-based awards	(12)	(18)
	Other	39	77
Quasi-reorganization resolution		-	12
Net changes in other working capital components		131	263
Changes in other assets		35	41
Changes in other liabilities		63	12
	Net cash provided by continuing operations	1,574	1,404
	Net cash used in discontinued operations	(3)	(13)
	Net cash provided by operating activities	1,571	1,391

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(1,357)	(1,341)
Proceeds from sale of assets from continuing operations		77	36
Expenditures for investments		(17)	(126)
Distributions from investments		13	104
Purchases of nuclear decommissioning and other trust assets		(498)	(500)
Proceeds from sales by nuclear decommissioning and other trusts		458	476
Decrease (increase) in restricted cash balance		3	(153)
Dividends received from unconsolidated affiliates		-	410
Other		(22)	(27)
	Net cash used in continuing operations	(1,343)	(1,121)
	Net cash provided by discontinued operations	-	778
	Net cash used in investing activities	(1,343)	(343)

Cash Flows from Financing Activities:
Common dividends paid		(234)	(203)
Issuances of common stock		36	89
Repurchases of common stock		(161)	(12)
Increase (decrease) in short-term debt, net		954	(632)
Payments on long-term debt		(1,069)	(81)
Issuance of long-term debt		359	422
Financing transaction related to Sempra Financial		-	83
Tax benefits from share-based awards		12	18
Other		(2)	(2)
	Net cash used in continuing operations	(105)	(318)
	Net cash provided by discontinued operations	-	2
	Net cash used in financing activities	(105)	(316)

Increase in cash and cash equivalents		123	732
Cash and cash equivalents, January 1		920	769
Cash assumed in connection with FIN 46(R) initial consolidation		29	-
Cash and cash equivalents, September 30		$ 1,072	$ 1,501

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.


SEMPRA ENERGY
Table D


*BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited)*


			Three months ended		Nine months ended
			September 30,		September 30,
(Dollars in millions)			2007	2006	2007	2006
Net Income
Sempra Utilities:
	San Diego Gas & Electric		$ 123	$ 70	$ 236	$ 182
	Southern California Gas		63	61	172	168
		Total Sempra Utilities	186	131	408	350

Sempra Global:
	Sempra Commodities		87	105	313	290
	Sempra Generation*		58	265	122	322
	Sempra Pipelines & Storage*		17	19	50	58
	Sempra LNG		(4)	(13)	(27)	(35)
		Total Sempra Global	158	376	458	635

Parent & Other			(14)	36	(29)	(23)

Continuing Operations			330	543	837	962

Discontinued Operations, Net of Income Tax			(25)	110	(27)	319

Consolidated Net Income			$ 305	$ 653	$ 810	$ 1,281

* Excludes amounts now classified as discontinued operations.



			Three months ended		Nine months ended
			September 30,		September 30,
(Dollars in millions)			2007	2006	2007	2006
Capital Expenditures and Investments
Sempra Utilities:
	San Diego Gas & Electric		$ 174	$ 157	$ 479	$ 880
	Southern California Gas		109	91	300	284
	Total Sempra Utilities		283	248	779	1,164

Sempra Global:
	Sempra Commodities		24	13	49	43
	Sempra Generation		4	2	8	37
	Sempra Pipelines & Storage		43	66	180	212
	Sempra LNG		122	121	346	466
	Total Sempra Global		193	202	583	758

Parent & Other			4	4	12	(455)	(1)

Consolidated Capital Expenditures and Investments			$ 480	$ 454	$ 1,374	$ 1,467

(1) Reflects the transfer of the Palomar plant to SDG&E from Sempra Generation.

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.



SEMPRA ENERGY
Table E


*OTHER OPERATING STATISTICS (Unaudited)*



		Three months ended			Nine months ended
		September 30,			September 30,
*SEMPRA UTILITIES*		2007	2006		2007	2006

Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 714	$ 700		$ 2,074	$ 2,078
	SoCalGas (excludes intercompany sales)	$ 801	$ 794		$ 3,120	$ 3,112

Gas Sales (Bcf)		65	62		290	292
Transportation and Exchange (Bcf)		178	165		421	419
Total Deliveries (Bcf)		243	227		711	711

Total Gas Customers (Thousands)					6,517	6,446

Electric Sales (Millions of kWhs)		4,788	5,022		12,847	12,897
Direct Access (Millions of kWhs)		907	915		2,401	2,569
Total Deliveries (Millions of kWhs)		5,695	5,937		15,248	15,466

Total Electric Customers (Thousands)					1,363	1,350


*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		5,718	5,470	(1)	15,243	14,026	(1)

(1)	Revised to exclude the Twin Oaks, Coleto Creek and Topaz power plants.

*SEMPRA PIPELINES & STORAGE*
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.)
Natural Gas Sales (Bcf)
	Argentina	100	89		241	208
	Mexico	13	13		35	34
	Chile	1	1		1	2
Natural Gas Customers (Thousands)
	Argentina				1,589	1,527
	Mexico				95	100
	Chile				39	39
Electric Sales (Millions of kWhs)
	Peru	1,273	1,166		3,800	3,488
	Chile	582	385		1,868	1,562
Electric Customers (Thousands)
	Peru				803	780
	Chile				545	532


SEMPRA ENERGY
Table E (Continued)

*SEMPRA COMMODITIES*

		Three months ended September 30,					Nine months ended September 30,
Margin (Dollars in millions)*		2007			2006		2007	2006
Geographical:
	North America	$ 288			$ 233		$ 780	$ 839
	Europe/Asia	97			128		239	152
	Total	$ 385			$ 361		$ 1,019	$ 991

Product Line:
	Gas	$ 180			$ 146		$ 336	$ 430
	Power	91			116		290	327
	Oil - Crude & Products	35			27		149	113
	Metals	80			53		204	78
	Other	(1)			19		40	43
	Total	$ 385			$ 361		$ 1,019	$ 991

* Margin is a non-GAAP financial measure, consisting of operating revenues less cost of sales (primarily transportation and storage costs), both GAAP financial measures, reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense, as follows:

		Three months ended September 30,					Nine months ended September 30,
(Dollars in millions)		2007			2006		2007	2006
	Revenues	$ 679			$ 784		$ 1,901	$ 2,178
	Cost of sales	(256)			(384)		(796)	(1,073)
		423			400		1,105	1,105
	Other related costs	(38)			(39)		(86)	(114)
	Margin	$ 385			$ 361		$ 1,019	$ 991

		Three months ended September 30,					Nine months ended September 30,
Effect of EITF 02-3 (Dollars in millions)		2007			2006		2007	2006
	Mark-to-Market Earnings *	$ 76			$ 86		$ 355	$ 329
	Effect of EITF 02-3 **	11			19		(42)	(39)
	GAAP Net Income	$ 87			$ 105		$ 313	$ 290

* Represents earnings from the fair market value of all commodities transactions. This metric is a useful measurement of profitability because it simultaneously recognizes changes in the various components of transactions and reflects how the business is managed.
** Consists of the income statement effect of not recognizing changes in the fair market value of certain physical inventories, capacity contracts for transportation and storage, and derivative hedging activities related to synthetic fuels tax credits.

			Fair
			Market Value		Scheduled Maturity (in months)
Net Unrealized Revenue (Dollars in millions)			September 30, 2007		0 - 12	13 - 24	25 - 36	> 36

OTC Fair Value of forwards, swaps and options (1)			$ 1,169		$ 740	$ 170	$ 89	$ 170

	Maturity of OTC Fair Value - Cumulative Percentages				63.3%	77.8%	85.5%	100.0%


Exchange Contracts (2)			176		143	62	37	(66)
	Total Net Unrealized Revenue at September 30, 2007		$ 1,345		$ 883	$ 232	$ 126	$ 104

	Net Unrealized Revenue - Cumulative Percentages				65.7%	82.9%	92.3%	100.0%

(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts
(2) Cash received or (paid) associated with open Exchange Contracts


				September 30,	December 31,
Credit Quality of Unrealized Trading Assets (net of margin)				2007	2006
Commodity Exchanges				11%	13%
Investment Grade				55%	57%
Below Investment Grade				34%	30%


Risk Adjusted Performance Indicators				Three months ended September 30,			Nine months ended September 30,
(Mark-to-Market Basis)				2007	2006		2007	2006
VaR at 95% (Dollars in millions) (1)				$ 18.2	$ 11.1		$ 13.1	$ 15.8
VaR at 99% (Dollars in millions) (2)				$ 25.7	$ 15.6		$ 18.4	$ 22.3

(1) Average Daily Value-at-Risk for the period using a 95% confidence level
(2) Average Daily Value-at-Risk for the period using a 99% confidence level

		Three months ended September 30,					Nine months ended September 30,
Physical Statistics		2007			2006		2007	2006
Natural Gas (Bcf/Day)		14.2			11.8		12.8	12.0
Electric (Billions of kWhs)		132.2			126.1		377.7	350.0
Oil & Liquid Products (Millions Bbls/Day)		0.7			0.6		0.6	0.7

Exhibit 99.2

Exhibit 99.2


SEMPRA ENERGY

Table F (Unaudited)


*Income Statement Data by Business Unit*


Three Months Ended September 30, 2007


(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Operating Revenues	$ 716	$ 819	$ 679	$ 390	$ 81	$ -	$ (22)	$ 2,663

Cost of Sales and Other Operating Expenses	472	629	454	293	77	9	(3)	1,931

Litigation Expense	2	2	52	1	-	-	2	59

Depreciation & Amortization	75	71	6	16	3	-	3	174

Operating Income (Loss)	167	117	167	80	1	(9)	(24)	499

Other Income (Expense), Net	8	-	-	8	(1)	-	(10)	5

Income (Loss) before Interest & Taxes ⁽¹⁾	175	117	167	88	-	(9)	(34)	504

Net Interest Expense (Income) ⁽²⁾	24	10	14	(2)	1	1	10	58

Income Tax Expense (Benefit)	28	44	66	32	1	(6)	(30)	135

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	-	-	19	-	-	19

Discontinued Operations	-	-	-	-	-	-	(25)	(25)

Net Income (Loss)	$ 123	$ 63	$ 87	$ 58	$ 17	$ (4)	$ (39)	$ 305


Three Months Ended September 30, 2006


(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Operating Revenues	$ 703	$ 812	$ 784	$ 379	$ 79	$ (1)	$ (62)	$ 2,694

Cost of Sales and Other Operating Expenses	481	611	594	288	73	10	(4)	2,053

Litigation Expense	2	2	1	2	1	-	4	12

Depreciation & Amortization	72	67	6	12	3	-	3	163

Operating Income (Loss)	148	132	183	77	2	(11)	(65)	466

Other Income, Net	2	-	-	364	-	2	8	376

Income (Loss) before Interest & Taxes ⁽¹⁾	150	132	183	441	2	(9)	(57)	842

Net Interest Expense (Income) ⁽²⁾	27	12	17	(6)	(2)	1	9	58

Income Tax Expense (Benefit)	53	59	61	182	1	3	(102)	257

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	-	-	16	-	-	16

Discontinued Operations	-	-	-	-	-	-	110	110

Net Income (Loss)	$ 70	$ 61	$ 105	$ 265	$ 19	$ (13)	$ 146	$ 653


⁽¹⁾ Management believes "Income (Loss) before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations.


⁽²⁾Net Interest Expense (Income) includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.


SEMPRA ENERGY

Table F (Unaudited)


*Income Statement Data by Business Unit*


Nine Months Ended September 30, 2007


(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Operating Revenues	$ 2,084	$ 3,168	$ 1,901	$ 1,064	$ 242	$ (11)	$ (120)	$ 8,328

Cost of Sales and Other Operating Expenses	1,453	2,626	1,383	840	227	29	7	6,565

Litigation Expense	8	2	54	2	-	1	2	69

Depreciation & Amortization	225	210	19	41	9	-	10	514

Operating Income (Loss)	398	330	445	181	6	(41)	(139)	1,180

Other Income (Expense), Net	10	(4)	-	6	(3)	-	52	61

Income (Loss) before Interest & Taxes ⁽¹⁾	408	326	445	187	3	(41)	(87)	1,241

Net Interest Expense (Income) ⁽²⁾	71	32	16	(11)	1	2	38	149

Income Tax Expense (Benefit)	101	122	156	76	(2)	(16)	(96)	341

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	40	-	46	-	-	86

Discontinued Operations	-	-	-	-	-	-	(27)	(27)

Net Income (Loss)	$ 236	$ 172	$ 313	$ 122	$ 50	$ (27)	$ (56)	$ 810


Nine Months Ended September 30, 2006


(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Operating Revenues	$ 2,089	$ 3,145	$ 2,178	$ 1,032	$ 227	$ (21)	$ (134)	$ 8,516

Cost of Sales and Other Operating Expenses	1,495	2,609	1,644	786	210	29	(6)	6,767

Litigation Expense (Adjustment)	3	(3)	8	30	3	-	2	43

Depreciation & Amortization	219	200	19	34	9	-	10	491

Operating Income (Loss)	372	339	507	182	5	(50)	(140)	1,215

Other Income (Expense), Net	15	(1)	-	354	3	-	4	375

Income (Loss) before Interest & Taxes ⁽¹⁾	387	338	507	536	8	(50)	(136)	1,590

Net Interest Expense (Income) ⁽²⁾	79	31	48	(2)	(2)	3	50	207

Income Tax Expense (Benefit)	126	139	169	216	(8)	(18)	(163)	461

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	-	-	40	-	-	40

Discontinued Operations	-	-	-	-	-	-	319	319

Net Income (Loss)	$ 182	$ 168	$ 290	$ 322	$ 58	$ (35)	$ 296	$ 1,281


⁽¹⁾ Management believes "Income (Loss) before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations.


⁽²⁾Net Interest Expense (Income) includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.