SDG&E 8-K 2/28/12



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):

February 28, 2012


  

  

SAN DIEGO GAS & ELECTRIC COMPANY

(Exact name of registrant as specified in its charter)

  

  

CALIFORNIA

 

1-3779

 

95-1184800

(State or other jurisdiction of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

  

  

8326 CENTURY PARK COURT, SAN DIEGO, CA

 

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 February 28, 2012, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated earnings of $292 million, or $1.21 per diluted share of common stock, for the fourth quarter of 2011. 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 Business Unit for the three months and the years ended December 31, 2011 and 2010. 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

February 28, 2012 Sempra Energy News Release (including tables).


          99.2

Sempra Energy’s Statement of Operations Data by Business Unit for the three months and the years ended December 31, 2011 and 2010.







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.  

  

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)

  

  


Date: February 28, 2012

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 Contacts:

Scott Tomayko/Victor Vilaplana

Sempra Energy

(877) 736-7727

investor@sempra.com



SEMPRA ENERGY REPORTS

 HIGHER 2011 EARNINGS,

RAISES DIVIDEND 25 PERCENT



·

Full-year Adjusted Earnings per Share Increase 14 Percent


·

All Businesses Deliver Strong 2011 Performance


·

Dividend to Increase to $2.40 per Share from $1.92 per Share, on Annualized Basis


·

Company Sets New 2012 Earnings-per-share Guidance Range of

 $4 to $4.30, Reflecting Change in Accounting Method for Solar Tax Credits


SAN DIEGO, Feb. 28, 2012 – Sempra Energy (NYSE: SRE) today reported 2011 earnings of $1.4 billion, or $5.62 per diluted share, compared with earnings of $739 million, or $2.98 per diluted share, in 2010.

Sempra Energy’s adjusted earnings in 2011 were $1.1 billion, or $4.47 per diluted share, up approximately 14 percent from 2010 adjusted earnings of $974 million, or $3.93 per diluted share.  The company’s 2011 adjusted earnings excluded a second-quarter 2011 gain of $277 million related to the South American utility acquisitions.  In 2010, Sempra Energy’s adjusted earnings excluded a $139 million charge for a write-down on the RBS Sempra Commodities investment and an after-tax litigation charge of $96 million.

In the fourth quarter 2011, Sempra Energy’s earnings were $292 million, or $1.21 per diluted share, compared with $280 million, or $1.15 per diluted share, in the prior year’s quarter.  

Also this morning, Sempra Energy announced that the company’s board of directors has approved a 25-percent increase in the quarterly dividend on shares of the company’s common stock to $0.60 per share, or $2.40 per share on an annualized basis, from $0.48 per share, or $1.92 per share on an annualized basis.  While this increase represents a higher payout target than the board previously established, the board reaffirmed a target payout ratio of 45 percent to 50 percent over the long term.  The first quarterly installment of the new dividend is payable April 15, 2012, to shareholders of record on March 26, 2012.

“We are extremely pleased with our 2011 financial results,” said Debra L. Reed, chief executive officer of Sempra Energy.  “All of our businesses continue to perform well.  We exceeded our financial objectives for the year and, earlier today, we announced a significant increase in our dividend to shareholders.  We also have restructured our organization to enhance the integration of our assets.”

On Jan. 1, as announced previously, Sempra Energy consolidated Sempra Generation, Sempra Pipelines & Storage and Sempra LNG into two new operating units:  Sempra International and Sempra U.S. Gas & Power.  Beginning in the first quarter 2012 and going forward, Sempra Energy will report earnings from its four principal operating units:  San Diego Gas & Electric (SDG&E), Southern California Gas Co. (SoCalGas), Sempra International and Sempra U.S. Gas & Power.


SUBSIDIARY OPERATING RESULTS


San Diego Gas & Electric

Earnings for SDG&E increased to $431 million in 2011 from $369 million in 2010.   SDG&E’s fourth-quarter 2011 earnings were $158 million, up from $105 million in 2010, primarily due to favorable resolution of regulatory matters, earnings from construction projects in progress and higher authorized margin.  The higher authorized margin in the fourth quarter reflected the transfer of the El Dorado Energy natural gas-fired power plant to SDG&E from Sempra Generation in October 2011.  


Southern California Gas Co.

SoCalGas earned $287 million in 2011, compared with $286 million in 2010.  In the fourth quarter 2011, SoCalGas earned $79 million, compared with $74 million in the fourth quarter 2010.    


Sempra Generation

Sempra Generation’s 2011 earnings were $137 million, up from $103 million in 2010.   Sempra Generation recorded a loss of $6 million in the fourth quarter 2011, compared with earnings of $43 million in the fourth quarter 2010, due primarily to the expiration of the 10-year California Department of Water Resources power-supply contract in September 2011.

In December 2011, the California Public Utilities Commission approved a 25-year contract for Sempra Generation to sell 150 megawatts (MW) of renewable power from its Copper Mountain Solar 2 project in Nevada to Pacific Gas and Electric.  Construction has begun on the 1,100-acre solar project and the first 92 MW of solar panels are expected to be installed by the end of January 2013.

Last month, Sempra U.S. Gas & Power announced an expansion of its strategic relationship with BP Wind Energy to develop wind farms in Pennsylvania and Kansas representing a combined investment by both companies of more than $1 billion.  The two wind farms are expected to be completed by the end of 2012 and have a combined total output of 560 MW.


Sempra Pipelines & Storage

Earnings for Sempra Pipelines & Storage increased to $527 million in 2011 from $159 million in 2010.   Sempra Pipelines & Storage recorded a $277 million gain in the second quarter 2011 from the South American utility acquisitions.  Fourth-quarter earnings for Sempra Pipelines & Storage were $70 million, up from $39 million in 2010.   The higher fourth-quarter earnings were due primarily to additional earnings from Sempra Pipelines & Storage’s acquisition of the controlling interest in the South American utilities in April 2011.


Sempra LNG

In 2011, Sempra LNG earnings increased to $99 million from $68 million in 2010.   In 2011, Sempra LNG benefited from marketing activities and additional revenues from contracted cargoes that were not delivered.

 In the fourth quarter 2011, Sempra LNG’s earnings rose to $24 million from $18 million in the prior-year’s fourth quarter.  


2012 Guidance

Effective Jan. 1, Sempra Energy adopted the deferral accounting method for the company’s solar-generation projects.   Previously, Sempra Energy employed flow-through accounting for its solar projects, recognizing the tax benefits in the year each project was placed into service.  Now, the tax benefits will be recognized over the life of the projects.  This change in accounting will have no impact on the economics of the projects and will result in a more even earnings profile.  

Reflecting the impact of this accounting change, Sempra Energy today announced a new 2012 earnings-per-share guidance range of $4.00 to $4.30.


Internet Broadcast

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST 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 passcode 3475513.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2011 revenues of $10 billion.  The Sempra Energy companies’ 17,500 employees serve more than 31 million consumers worldwide.


Non-GAAP Financial Measures

Unless otherwise indicated, earnings discussions in this press release refer to earnings that are calculated under generally accepted accounting principles (GAAP) used in the U.S.  The 2011 and 2010 full-year adjusted earnings and earnings per share are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the company’s year-end 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 guidance, 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; the impact of benchmark interest rates, generally the U.S. Treasury bond and Moody’s A-rated utility bond yields, on the cost of capital for SDG&E and SoCalGas; 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; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent in nuclear power generation and radioactive materials storage, including catastrophic release of such materials; wars, terrorist attacks and cyber security threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; 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 (SEC).  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 International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas) and Sempra International and Sempra U.S. Gas & Power are not regulated by the California Public Utilities Commission.  


Note: Formerly known as entities Sempra Generation, Sempra LNG and Sempra Pipelines & Storage have now been realigned under Sempra International and Sempra U.S. Gas & Power.  








 

 

 

 

 

 

 

 

SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

December 31,

 

December 31,

(Dollars in millions, except per share amounts)

2011

 

2010

 

2011

 

2010

 

(unaudited)

 

 

 

 

REVENUES

 

 

 

 

 

 

 

Utilities

$         2,389

 

$         1,869

 

$         8,322

 

$         7,019

Energy-related businesses

215

 

476

 

1,714

 

1,984

    Total revenues

2,604

 

2,345

 

10,036

 

9,003

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

Utilities:

 

 

 

 

 

 

 

    Cost of natural gas

(499)

 

(523)

 

(1,866)

 

(2,012)

    Cost of electric fuel and purchased power

(421)

 

(157)

 

(1,397)

 

(637)

Energy-related businesses:

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(52)

 

(245)

 

(746)

 

(1,046)

    Other cost of sales

(14)

 

(21)

 

(137)

 

(88)

Litigation expense

(7)

 

15

 

(37)

 

(169)

Other operation and maintenance

(815)

 

(717)

 

(2,788)

 

(2,499)

Depreciation and amortization

(248)

 

(224)

 

(978)

 

(867)

Franchise fees and other taxes

(84)

 

(84)

 

(343)

 

(327)

Equity earnings (losses), before income tax:

 

 

 

 

 

 

 

    RBS Sempra Commodities LLP

-

 

(24)

 

(24)

 

(314)

    Other

13

 

(2)

 

33

 

22

Remeasurement of equity method investments

-

 

-

 

277

 

-

Other income, net

44

 

58

 

130

 

140

Interest income

5

 

3

 

26

 

16

Interest expense

(121)

 

(113)

 

(465)

 

(436)

Income before income taxes and equity earnings of certain

 

 

 

 

 

 

 

    unconsolidated subsidiaries

405

 

311

 

1,721

 

786

Income tax expense

(97)

 

(17)

 

(366)

 

(102)

Equity earnings, net of income tax

7

 

7

 

52

 

49

Net income

315

 

301

 

1,407

 

733

(Earnings) losses attributable to noncontrolling interests

(21)

 

(18)

 

(42)

 

16

Preferred dividends of subsidiaries

(2)

 

(3)

 

(8)

 

(10)

Earnings

$           292

 

$           280

 

$         1,357

 

$           739

 

 

 

 

 

 

 

 

Basic earnings per common share

$          1.22

 

$          1.17

 

$          5.66

 

$          3.02

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

239,803

 

239,465

 

239,720

 

244,736

 

 

 

 

 

 

 

 

Diluted earnings per common share

$          1.21

 

$          1.15

 

$          5.62

 

$          2.98

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

241,756

 

242,519

 

241,523

 

247,942

Dividends declared per share of common stock

$          0.48

 

$          0.39

 

$          1.92

 

$          1.56

 

 

 

 

 

 

 

 






 

 

 

 

 

 

 

 

SEMPRA ENERGY

Table A (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED

 

 

EARNINGS AND 2011 EARNINGS PER SHARE GUIDANCE EXCLUDING GAIN FROM

 

 

 

 

REMEASUREMENT OF EQUITY METHOD INVESTMENTS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share and earnings per share guidance in 2011 excluding a $277 million gain from the remeasurement of equity method investments in Chilquinta Energía and Luz del Sur in the second quarter of 2011 are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). Adjusted Earnings and Adjusted Earnings Per Share in 2010 exclude a $139 million write-down of our investment in RBS Sempra Commodities in the third quarter and a $96 million charge for a litigation settlement in the first quarter. Statistics using these amounts, including percentage changes from period to period, also result in non-GAAP 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 Sempra Energy's business operations from 2011 to 2010 and to future periods. Accordingly, 2011 guidance of $4 to $4.30 per diluted share excludes the second quarter gain of $277 million, or $1.15 per diluted share, based on shares outstanding through December 31, 2011. 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
December 31,

 

Years ended December 31,

(Dollars in millions, except per share amounts)

2011

 

2010

 

2011

 

2010

Sempra Energy GAAP Earnings

$          292

 

$          280

 

$       1,357

 

$          739

Less: Remeasurement Gain in 2011

-

 

-

 

(277)

 

-

Add: Write-down of Joint Venture Investment in 2010

-

 

-

 

-

 

139

Add: Litigation Settlement Charge in 2010

-

 

-

 

-

 

96

Sempra Energy Adjusted Earnings

$          292

 

$          280

 

$       1,080

 

$          974

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

Sempra Energy GAAP Earnings

$         1.21

(1)

$         1.15

 

$         5.62

(1)

$         2.98

Sempra Energy Adjusted Earnings

$         1.21

(2)

$         1.15

 

$         4.47

(2)

$         3.93

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

241,756

 

242,519

 

241,523

 

247,942

 

 

 

 

 

 

 

 

(1) Percentage increases from fourth quarter and year-to-date 2010 earnings per share were 5% and 89%, respectively.

 

 

(2) Percentage increases from fourth quarter and year-to-date 2010 earnings per share were 5% and 14%, respectively.

 

 






 

 

 

 

 

 

 

 

SEMPRA ENERGY

 

Table B

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

2011

 

2010

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$               252

 

$               912

 

 

Restricted cash

24

 

131

 

 

Accounts receivable, net

1,345

 

1,032

 

 

Due from unconsolidated affiliates

-

 

34

 

 

Income taxes receivable

-

 

248

 

 

Deferred income taxes

-

 

75

 

 

Inventories

346

 

258

 

 

Regulatory balancing accounts – undercollected

38

 

-

 

 

Regulatory assets

89

 

90

 

 

Fixed-price contracts and other derivatives

85

 

81

 

 

Settlements receivable related to wildfire litigation

10

 

300

 

 

Other

143

 

192

 

 

 

 

Total current assets

2,332

 

3,353

 

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

Restricted cash

22

 

27

 

 

Regulatory assets arising from pension and other postretirement

 

 

 

 

 

 

benefit obligations

1,126

 

869

 

 

Regulatory assets arising from wildfire litigation costs

594

 

364

 

 

Other regulatory assets

1,060

 

934

 

 

Nuclear decommissioning trusts

804

 

769

 

 

Investment in RBS Sempra Commodities LLP

126

 

787

 

 

Other investments

1,545

 

2,164

 

 

Goodwill

1,036

 

87

 

 

Other intangible assets

448

 

453

 

 

Sundry

691

 

600

 

 

 

 

Total investments and other assets

7,452

 

7,054

 

Property, plant and equipment, net

23,572

 

19,876

 

Total assets

$          33,356

 

$          30,283

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt

$               449

 

$               158

 

 

Accounts payable

1,107

 

864

 

 

Due to unconsolidated affiliates

-

 

36

 

 

Income taxes payable

16

 

-

 

 

Deferred income taxes

173

 

-

 

 

Dividends and interest payable

219

 

188

 

 

Accrued compensation and benefits

323

 

311

 

 

Regulatory balancing accounts – overcollected

105

 

241

 

 

Current portion of long-term debt

336

 

349

 

 

Fixed-price contracts and other derivatives

92

 

106

 

 

Customer deposits

142

 

129

 

 

Reserve for wildfire litigation

586

 

639

 

 

Other

615

 

765

 

 

 

 

Total current liabilities

4,163

 

3,786

 

Long-term debt

10,078

 

8,980

 

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

Customer advances for construction

142

 

154

 

 

Pension and other postretirement benefit obligations, net of plan assets

1,423

 

1,105

 

 

Deferred income taxes

1,554

 

1,561

 

 

Deferred investment tax credits

49

 

50

 

 

Regulatory liabilities arising from removal obligations

2,551

 

2,630

 

 

Asset retirement obligations

1,905

 

1,449

 

 

Other regulatory liabilities

87

 

138

 

 

Fixed-price contracts and other derivatives

301

 

290

 

 

Deferred credits and other

783

 

823

 

 

 

 

Total deferred credits and other liabilities

8,795

 

8,200

 

Contingently redeemable preferred stock of subsidiary

79

 

79

 

Equity:

 

 

 

 

 

Total Sempra Energy shareholders' equity

9,838

 

9,027

 

 

Preferred stock of subsidiaries

20

 

100

 

 

Other noncontrolling interests

383

 

111

 

 

 

 

Total equity

10,241

 

9,238

 

Total liabilities and equity

$          33,356

 

$          30,283

 

 

 

 

 

 

 

 

 






 

 

 

 

 

 

 

SEMPRA ENERGY

 

Table C

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

Years ended
December 31,

 

(Dollars in millions)

 

2011

 

2010

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

Net income

 

$        1,407

 

$           733

 

Adjustments to reconcile net income to net cash  

 

 

 

 

 

  provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

978

 

867

 

 

Deferred income taxes and investment tax credits

 

(24)

 

48

 

 

Equity (earnings) losses

 

(61)

 

243

 

 

Remeasurement of equity method investments

 

(277)

 

-

 

 

Fixed-price contracts and other derivatives

 

2

 

13

 

 

Other

 

(15)

 

(55)

 

Net change in other working capital components

 

(225)

 

58

 

Distributions from RBS Sempra Commodities LLP

 

53

 

198

 

Changes in other assets

 

34

 

54

 

Changes in other liabilities

 

(5)

 

(5)

 

 

Net cash provided by operating activities

 

1,867

 

2,154

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

Expenditures for property, plant and equipment

 

(2,844)

 

(2,062)

 

Proceeds from sale of assets

 

2

 

303

 

Expenditures for investments and acquisition of businesses,

 

 

 

 

 

  net of cash acquired

 

(941)

 

(611)

 

Distributions from RBS Sempra Commodities LLP

 

570

 

849

 

Distributions from other investments

 

64

 

371

 

Purchases of nuclear decommissioning and other trust assets

 

(755)

 

(371)

 

Proceeds from sales by nuclear decommissioning and other trusts

 

753

 

372

 

Decrease in restricted cash

 

653

 

195

 

Increase in restricted cash

 

(541)

 

(318)

 

Other

 

(31)

 

(11)

 

 

Net cash used in investing activities

 

(3,070)

 

(1,283)

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

Common dividends paid

 

(440)

 

(364)

 

Redemption of subsidiary preferred stock

 

(80)

 

-

 

Preferred dividends paid by subsidiaries

 

(8)

 

(10)

 

Issuances of common stock

 

28

 

40

 

Repurchases of common stock

 

(18)

 

(502)

 

Issuances of debt (maturities greater than 90 days)

 

2,098

 

1,125

 

Payments on debt (maturities greater than 90 days)

 

(482)

 

(905)

 

(Decrease) increase in short-term debt, net

 

(498)

 

568

 

Purchase of noncontrolling interests

 

(43)

 

-

 

Other

 

(23)

 

(21)

 

 

Net cash provided by (used in) financing activities

 

534

 

(69)

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

9

 

-

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(660)

 

802

 

Cash and cash equivalents, January 1

 

912

 

110

 

Cash and cash equivalents, December 31

 

$           252

 

$           912

 

 

 

 

 

 

 

 






 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA ENERGY

 

 

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

2011

 

2010

 

2011

 

2010

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

Earnings (Losses)

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$           158

 

$           105

 

$           431

 

$           369

 

 

Southern California Gas

79

 

74

 

287

 

286

 

 

Sempra Generation

(6)

 

43

 

137

 

103

 

 

Sempra Pipelines & Storage

70

 

39

 

527

 

159

 

 

Sempra LNG

24

 

18

 

99

 

68

 

 

Parent & Other

(33)

 

1

 

(124)

 

(246)

 

 

Earnings

$           292

 

$           280

 

$         1,357

 

$           739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

2011

 

2010

 

2011

 

2010

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

Capital Expenditures and Investments

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$           669

 

$           388

 

$         1,831

 

$         1,210

 

 

Southern California Gas

184

 

166

 

683

 

503

 

 

Sempra Generation

344

 

314

 

512

 

346

 

 

Sempra Pipelines & Storage

60

 

55

 

947

 

590

 

 

Sempra LNG

2

 

9

 

11

 

18

 

 

Parent & Other

4

 

2

 

6

 

6

 

 

Eliminations(1)

(205)

 

-

 

(205)

 

-

 

 

Consolidated Capital Expenditures and Investments

$         1,058

 

$           934

 

$         3,785

 

$         2,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amount represents elimination of intercompany sale of El Dorado power plant in October 2011.

 

 






 

 

 

 

 

 

 

 

 

 

 

SEMPRA ENERGY

 

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

UTILITIES

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

Sempra Utilities – SDG&E and SoCalGas

 

 

 

 

 

 

 

 

Gas Sales (bcf)(1)

118

 

111

 

403

 

392

 

Transportation (bcf)(1)

155

 

176

 

620

 

641

 

Total Deliveries (bcf)(1)

273

 

287

 

1,023

 

1,033

 

Total Gas Customers (Thousands)

 

 

 

 

6,655

 

6,635

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)(1)

4,026

 

4,170

 

16,247

 

16,281

 

Direct Access (Millions of kWhs)

838

 

837

 

3,265

 

3,202

 

Total Deliveries (Millions of kWhs)(1)

4,864

 

5,007

 

19,512

 

19,483

 

Total Electric Customers (Thousands)

 

 

 

 

1,394

 

1,386

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Pipelines & Storage – Utilities (2)

 

 

 

 

 

 

 

 

Natural Gas Sales (bcf)

 

 

 

 

 

 

 

 

 

Argentina

88

 

80

 

355

 

331

 

 

Mexico

6

 

5

 

22

 

21

 

 

Mobile Gas

11

 

10

 

40

 

37

 

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

1,810

 

1,756

 

 

Mexico

 

 

 

 

90

 

89

 

 

Mobile Gas

 

 

 

 

89

 

91

 

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

Peru

1,596

 

1,513

 

6,309

 

5,958

 

 

Chile

658

 

613

 

2,520

 

2,349

 

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

926

 

890

 

 

Chile

 

 

 

 

609

 

593

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes intercompany sales

 

(2) Represents 100% of the distribution operations of the subsidiary, although the subsidiary in Argentina is not consolidated within Sempra Energy and the related investments are accounted for under the equity method.  The subsidiaries in Peru and Chile were also accounted for under the equity method until April 6, 2011, when they became consolidated entities upon our acquisition of additional ownership interests.

 

 

 

 

 

 

 

 

 

 

 

 

ENERGY-RELATED BUSINESSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Generation

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

2,165

 

5,614

 

13,814

 

20,886

 

 

 

 

 

 

 

 

 

 




Exhibit 99.2



Exhibit 99.2




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$       968

 

$       1,040

 

$             90

 

$          463

 

$          162

 

$           (119)

 

 

$  2,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

(589)

 

(824)

 

(108)

 

(348)

 

(108)

 

92

 

 

(1,885)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation (Expense) Adjustment

 

(4)

 

(2)

 

-

 

(1)

 

(2)

 

2

 

 

(7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

(106)

 

(85)

 

(15)

 

(26)

 

(13)

 

(3)

 

 

(248)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Before Income Tax

 

-

 

-

 

-

 

13

 

-

 

-

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

24

 

4

 

(1)

 

1

 

4

 

12

 

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

293

 

133

 

(34)

 

102

 

43

 

(16)

 

 

521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

 

(39)

 

(17)

 

(1)

 

(14)

 

(9)

 

(38)

 

 

(118)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

(83)

 

(37)

 

29

 

(18)

 

(10)

 

22

 

 

(97)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

7

 

-

 

-

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Attributable to Noncontrolling Interests

 

(13)

 

-

 

-

 

(7)

 

-

 

(1)

 

 

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

$       158

 

$           79

 

$             (6)

 

$           70

 

$           24

 

$             (33)

 

 

$     292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$       804

 

$       1,030

 

$           293

 

$           88

 

$          157

 

$             (27)

 

 

$  2,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

(525)

 

(832)

 

(217)

 

(59)

 

(110)

 

(4)

 

 

(1,747)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation (Expense) Adjustment

 

(6)

 

11

 

(2)

 

-

 

-

 

12

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

(98)

 

(79)

 

(18)

 

(12)

 

(13)

 

(4)

 

 

(224)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

 

-

 

-

 

(10)

 

11

 

-

 

(27)

 

 

(26)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

28

 

4

 

(1)

 

2

 

1

 

24

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

203

 

134

 

45

 

30

 

35

 

(26)

 

 

421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

(38)

 

(16)

 

3

 

(8)

 

(11)

 

(43)

 

 

(113)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

(42)

 

(44)

 

(5)

 

10

 

(6)

 

70

 

 

(17)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

7

 

-

 

-

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Attributable to Noncontrolling Interests

 

(18)

 

-

 

-

 

-

 

-

 

-

 

 

(18)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$       105

 

$           74

 

$             43

 

$           39

 

$           18

 

$                1

 

 

$     280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Management believes "Income (Loss) before Interest & Tax" 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 tax, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$     3,373

 

$       3,816

 

$           886

 

$       1,443

 

$          714

 

$           (196)

 

 

$    10,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

(2,177)

 

(2,994)

 

(667)

 

(1,076)

 

(479)

 

116

 

 

(7,277)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation (Expense) Adjustment

 

(19)

 

(5)

 

(4)

 

(2)

 

(8)

 

1

 

 

(37)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

(422)

 

(331)

 

(70)

 

(92)

 

(51)

 

(12)

 

 

(978)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

 

-

 

-

 

(6)

 

43

 

-

 

(28)

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

79

 

13

 

-

 

297

  (1)

3

 

15

 

 

407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

834

 

499

 

139

 

613

 

179

 

(104)

 

 

2,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

(147)

 

(69)

 

(5)

 

(46)

 

(38)

 

(142)

 

 

(447)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

(237)

 

(143)

 

3

 

(70)

 

(42)

 

123

 

 

(366)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

52

 

-

 

-

 

 

52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Attributable to Noncontrolling Interests

 

(19)

 

-

 

-

 

(22)

 

-

 

(1)

 

 

(42)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

$       431

 

$          287

 

$           137

 

$          527

 

$           99

 

$           (124)

 

 

$     1,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$     3,049

 

$       3,822

 

$        1,172

 

$          350

 

$          711

 

$           (101)

 

 

$     9,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

(1,993)

 

(3,007)

 

(866)

 

(246)

 

(519)

 

22

 

 

(6,609)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation (Expense) Adjustment

 

(18)

 

10

 

(145)

 

(1)

 

(4)

 

(11)

 

 

(169)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

(381)

 

(309)

 

(65)

 

(44)

 

(51)

 

(17)

 

 

(867)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

 

-

 

-

 

(12)

 

43

 

-

 

(323)

 (4)

 

(292)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

10

 

12

 

9

 

55

 

3

 

51

 

 

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

667

 

528

 

93

 

157

 

140

 

(379)

 

 

1,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (3)

 

(141)

 

(66)

 

3

 

(21)

 

(47)

 

(158)

 

 

(430)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

(173)

 

(176)

 

7

 

(26)

 

(25)

 

291

 

 

(102)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

49

 

-

 

-

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses Attributable to Noncontrolling Interests

 

16

 

-

 

-

 

-

 

-

 

-

 

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

$       369

 

$          286

 

$           103

 

$          159

 

$           68

 

$           (246)

 

 

$        739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gain of $277 million related to remeasurement of equity method investments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Management believes "Income (Loss) before Interest & Tax" 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 tax, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4) Includes $305 million write-down of our investment in RBS Sempra Commodities.