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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 24, 2009




Commission
File Number

 

Name of Registrant, State of
Incorporation, Address and
Telephone Number

 

IRS Employer
Identification
Number

1-40

 

PACIFIC ENTERPRISES
(A California Corporation)
101 Ash Street
San Diego, California 92101
(619) 696-2020

 

94-0743670

 

 

 

 

 

1-1402

 

SOUTHERN CALIFORNIA GAS COMPANY
(A California Corporation)
555 West Fifth Street
Los Angeles, California 90013
(213) 244-1200

 

95-1240705




  

 

(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 Pacific Enterprises or Southern California Gas Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


On February 24, 2009, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated net income of $319 million, or $1.30 per diluted share of common stock, for the fourth quarter of 2008 and $1.11 billion, or $4.43 per diluted share of common stock, for the fiscal year 2008. 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 the years ended December 31, 2008 and 2007. 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 Pacific Enterprises' and Southern California Gas Company's results of operations and financial condition.



Item 9.01  Financial Statements and Exhibits.  

  

         Exhibits  


          99.1

February 24, 2009 Sempra Energy News Release (including tables)


          99.2

Sempra Energy's Income Statement Data by Business Unit for the three months and the years ended December 31, 2008 and 2007.






  

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.  

  


PACIFIC ENTERPRISES
(Registrant)





Date: February 24, 2009

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: February 24, 2009

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) 866-2066

 

www.sempra.com



Financial Contact:

Glen Donovan

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com



SEMPRA ENERGY EARNINGS PER SHARE
RISE 6.5 PERCENT IN 2008


Company Reaffirms 2009 Earnings-per-share Outlook of
$4.35 per Share to $4.60 per Share


SAN DIEGO, Feb. 24, 2009 – Sempra Energy (NYSE:  SRE) today reported net income of $1.11 billion, or $4.43 per diluted share, up 6.5 percent per share from 2007 net income of $1.10 billion, or $4.16 per diluted share.

 Fourth-quarter 2008 net income rose to $319 million, or $1.30 per diluted share, from $289 million, or $1.10 per diluted share in 2007.

 “Despite the challenging economic environment, our businesses have excelled and we’ve achieved major milestones in our long-term strategy,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “We launched operations at our Mexican liquefied natural gas terminal, completed our commodities joint venture and added new Gulf Coast natural gas assets with the acquisition of EnergySouth.  We also received state regulatory approval on San Diego Gas & Electric’s Sunrise Powerlink transmission line and both of our utilities’ rate cases.  Additionally, we completed a $1 billion share-repurchase program, increased our dividend and maintained a strong balance sheet.”



SUBSIDIARY OPERATING RESULTS

San Diego Gas & Electric

San Diego Gas & Electric (SDG&E) recorded net income of $339 million in 2008, up from $283 million in 2007.  SDG&E’s fourth-quarter 2008 net income was $81 million, compared with $47 million in the year-ago quarter, due primarily to higher operating margin and a lower tax rate.    

In December 2008, the California Public Utilities Commission approved SDG&E’s application to build the $1.9 billion, 500-kilovolt Sunrise Powerlink transmission-line project.  Pre-construction activities on the project have begun, with completion of the power line expected in 2012.

“After three years of thorough regulatory review, we are pleased that the Sunrise Powerlink project is moving forward,” said Felsinger.  “California policymakers have set aggressive environmental goals for the state’s utilities, mandating a significant increase in renewable energy and reduction in greenhouse-gas emissions over the next decade.  The Sunrise Powerlink will help SDG&E meet these environmental mandates, while increasing system reliability.”  


Southern California Gas Co.

In 2008, Southern California Gas Co. (SoCalGas) net income increased to $244 million from $230 million.  Fourth-quarter net income for SoCalGas was $54 million in 2008, compared with $58 million in 2007.


RBS Sempra Commodities

Sempra Energy generated net income of $345 million from its commodity operations in the full-year 2008, including nine months of net income from its equity share of the RBS Sempra Commodities joint venture, and $164 million in the fourth quarter 2008.  In 2007, Sempra Commodities earned $499 million in net income and $186 million in fourth-quarter net income.  Results for 2007 represented 100 percent of the earnings from the commodities-marketing business prior to the formation of RBS Sempra Commodities.  In the fourth quarter 2008, RBS Sempra Commodities performed well in all of its major product segments, led by crude oil and petroleum products.


Sempra Generation

Sempra Generation’s net income rose to $222 million in 2008 from $162 million in 2007.  In the fourth quarter 2008, Sempra Generation’s net income increased to $60 million from $40 million in the same quarter of 2007, due primarily to lower income-tax expense.  

In December 2008, Sempra Generation completed its first solar-power project.  The 10-megawatt facility, located outside of Las Vegas, is the largest thin-film solar generating plant in North America.

 

Sempra Pipelines & Storage

Sempra Pipelines & Storage earned $106 million in 2008 net income, up from $64 million in 2007.  In the fourth quarter 2008, Sempra Pipelines & Storage had net income of $22 million, compared with $14 million in the prior year’s quarter, due primarily to the operation of the western portion of the Rockies Express Pipeline and the company’s Mexico pipelines.  


Sempra LNG

In 2008, Sempra LNG recorded a net loss of $46 million, unchanged from 2007.  For the fourth quarter 2008, Sempra LNG had a net loss of $13 million, compared with a net loss of $19 million in the same period of 2007, due primarily to a tax benefit related to currency and inflation adjustments.


2009 Outlook

Sempra Energy today reaffirmed its previous earnings-per-share outlook for 2009 of a range of $4.35 per share to $4.60 per share.


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 2137643.


Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2008 revenues of nearly $11 billion.  The Sempra Energy companies’ 13,600 employees serve about 24 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/4Q2008.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.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should,” or similar expressions, or discussions of strategies, plans 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, com petitive, 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,  and other regulatory and governmental bodies in the United States, the United Kingdom  and other countries; capital market conditions and inflation, interest  and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions 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 reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system without charge at the SEC’s Web site, www.sec.gov and on the company’s Web site, at www.sempra.com.



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


###





SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENTS OF CONSOLIDATED INCOME  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

December 31,

 

December 31,

(Dollars in millions, except per share amounts)

2008

 

2007

 

2008

 

2007

 

 

(unaudited)

 

 

 

 

Revenues

 

 

 

 

 

 

 

Sempra Utilities

 $   1,782

 

 $   1,859

 

 $   7,972

 

 $    7,053

Sempra Global and parent

        511

 

     1,251

 

     2,786

 

      4,385

 

Total revenues

     2,293

 

     3,110

 

    10,758

 

     11,438

 

 

 

 

 

 

 

 

 

Expenses and Other Income

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

Cost of natural gas

      (536)

 

      (721)

 

   (3,244)

 

    (2,763)

 

Cost of electric fuel and purchased power

      (206)

 

      (203)

 

      (900)

 

       (699)

Sempra Global and parent:

 

 

 

 

 

 

 

 

Cost of natural gas, electric fuel and purchased power

      (318)

 

      (357)

 

   (1,671)

 

    (1,302)

 

Other cost of sales

        (14)

 

      (192)

 

      (182)

 

       (988)

Operation and maintenance

      (720)

 

      (892)

 

   (2,536)

 

    (3,032)

Depreciation and amortization

      (179)

 

      (172)

 

      (687)

 

       (686)

Franchise fees and other taxes

        (82)

 

        (74)

 

     (312)

 

       (295)

Gains on sale of assets

            -

 

            -

 

        114

 

             6

Equity earnings (losses):

 

 

 

 

 

 

 

 

RBS Sempra Commodities LLP

        241

 

            -

 

        383

 

             -

 

Other

            8

 

            2

 

          37

 

           (9)

Other income (expense), net

        (77)

 

          18

 

        (54)

 

           90

Interest income

            9

 

          10

 

          45

 

           72

Interest expense

        (88)

 

        (68)

 

      (253)

 

       (272)

Preferred dividends of subsidiaries

          (3)

 

          (3)

 

        (10)

 

         (10)

Income from continuing operations before income taxes and equity earnings of certain unconsolidated subsidiaries

        328

 

        458

 

     1,488

 

      1,550

Income tax expense

        (15)

 

      (183)

 

      (438)

 

       (524)

Equity earnings, net of income tax

            6

 

          13

 

          63

 

           99

Income from continuing operations

        319

 

        288

 

     1,113

 

      1,125

Discontinued operations, net of income tax

            -

 

            1

 

            -

 

         (26)

Net income

 $     319

 

 $     289

 

 $   1,113

 

 $    1,099

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

Income from continuing operations

 $    1.32

 

 $    1.12

 

 $    4.50

 

 $     4.34

 

Discontinued operations, net of income tax

            -

 

            -

 

            -

 

      (0.10)

 

Net income

 $    1.32

 

 $    1.12

 

 $    4.50

 

 $     4.24

Weighted-average number of shares outstanding (thousands)

  241,660

 

  257,864

 

  247,387

 

   259,269

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

Income from continuing operations

 $    1.30

 

 $    1.10

 

 $    4.43

 

 $     4.26

 

Discontinued operations, net of income tax

            -

 

            -

 

            -

 

      (0.10)

 

Net income

 $    1.30

 

 $    1.10

 

 $    4.43

 

 $     4.16

Weighted-average number of shares outstanding (thousands)

  244,531

 

  262,839

 

  251,159

 

   264,004

Dividends declared per share of common stock

 $    0.35

 

 $    0.31

 

 $    1.37

 

 $     1.24

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

 

Table B

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

 

2008

 

2007

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 $           331

 

 $           668

 

 

Short-term investments

 

              176

 

 -

 

 

Restricted cash

 

                27

 

                  1

 

 

Accounts receivable, net

 

              981

 

           1,074

 

 

Income taxes receivable

 

              195

 

                99

 

 

Deferred income taxes

 

                31

 

              247

 

 

Trading-related receivables and deposits, net

 

 -

 

           2,719

*

 

Derivative trading instruments

 

 -

 

           2,170

*

 

Commodities owned

 

 -

 

           2,231

 

 

Inventories

 

              320

 

              224

 

 

Regulatory assets

 

              121

 

              106

 

 

Fixed-price contracts and other derivatives

 

              160

 

                28

*

 

Other

 

              134

 

              397

 

 

 

 

Total current assets

 

           2,476

 

           9,964

 

 

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 

              264

 

              309

 

 

Regulatory assets arising from pension and other postretirement benefit obligations

 

           1,188

 

              162

 

 

Other regulatory assets

 

              534

 

              460

 

 

Nuclear decommissioning trusts

 

              577

 

              739

 

 

Investment in RBS Sempra Commodities LLP

 

           2,082

 

 -

 

 

Other investments

 

           1,166

 

           1,243

 

 

Goodwill and intangible assets

 

              539

 

              179

 

 

Sundry

 

              709

 

              777

 

 

 

 

Total investments and other assets

 

           7,059

 

           3,869

 

Property, plant and equipment, net

 

          16,865

 

          14,884

 

Total assets

 

 $       26,400

 

 $       28,717

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

 $           503

 

 $         1,064

 

 

Accounts payable

 

              856

 

           1,563

 

 

Due to unconsolidated affiliates

 

                38

 

                60

 

 

Trading-related payables

 

 -

 

           2,265

*

 

Derivative trading instruments

 

 -

 

           1,672

*

 

Commodities sold with agreement to repurchase

 

 -

 

              500

 

 

Dividends and interest payable

 

              156

 

              145

 

 

Accrued compensation and benefits

 

              280

 

              265

 

 

Regulatory balancing accounts, net

 

              335

 

              481

 

 

Current portion of long-term debt

 

              410

 

                  7

 

 

Fixed-price contracts and other derivatives

 

              180

 

                53

*

 

Customer deposits

 

              170

 

              143

 

 

Other

 

              684

 

              802

 

 

 

 

Total current liabilities

 

           3,612

 

           9,020

 

Long-term debt

 

           6,544

 

           4,553

 

 

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

 

Due to unconsolidated affiliate

 

              102

 

              102

 

 

Customer advances for construction

 

              155

 

              153

 

 

Pension and other postretirement benefit obligations, net of plan assets

 

           1,487

 

              434

 

 

Deferred income taxes

 

              946

 

              531

 

 

Deferred investment tax credits

 

                57

 

                61

 

 

Regulatory liabilities arising from removal obligations

 

           2,430

 

           2,522

 

 

Asset retirement obligations

 

           1,159

 

           1,129

 

 

Other regulatory liabilities

 

              219

 

              265

 

 

Fixed-price contracts and other derivatives

 

              392

 

              332

 

 

Deferred credits and other

 

              909

 

              949

 

 

 

 

Total deferred credits and other liabilities

 

           7,856

 

           6,478

 

Preferred stock of subsidiaries

 

              179

 

              179

 

Minority interests

 

              240

 

              148

 

Shareholders' equity

 

           7,969

 

           8,339

 

Total liabilities and shareholders' equity

 

 $       26,400

 

 $       28,717

 

 

 

 

 

 

 

 

 

 

* December 31, 2007 amounts have been reclassified due to the adoption of FASB Staff Position FIN 39-1.

 

 



SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

Years ended

 

 

 

December 31,

(Dollars in millions)

 

2008

 

2007

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

 $     1,113

 

 $    1,099

Adjustments to reconcile net income to net cash  

 

 

 

 

  provided by operating activities:

 

 

 

 

 

Discontinued operations

 

 --

 

           26

 

Depreciation and amortization

 

           687

 

         686

 

Gains on sale of assets, net

 

          (114)

 

            (6)

 

Deferred income taxes and investment tax credits

 

           324

 

         149

 

Noncash rate-reduction bond expense

 

 --

 

           55

 

Equity earnings

 

          (483)

 

          (90)

 

Other

 

           141

 

           46

Net changes in other working capital components

 

          (483)

 

           25

Distributions from RBS Sempra Commodities LLP

 

             85

 

 --

Changes in other assets

 

            (15)

 

           22

Changes in other liabilities

 

            (74)

 

           79

 

Net cash provided by continuing operations

 

        1,181

 

      2,091

 

Net cash used in discontinued operations

 

               -

 

            (3)

 

Net cash provided by operating activities

 

        1,181

 

      2,088

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

       (2,061)

 

     (2,011)

Proceeds from sale of assets from continuing operations, net of cash sold

 

        2,295

 

         103

Expenditures for investments and acquisition of business, net of cash acquired

 

(2,675)

 

        (121)

Distributions from investments

 

             34

 

           18

Purchases of nuclear decommissioning and other trust assets

 

          (485)

 

        (646)

Proceeds from sales by nuclear decommissioning and other trusts

 

           469

 

         613

Decrease in notes receivable from unconsolidated affiliates

 

             60

 

 --

Other

 

            (23)

 

          (29)

 

Net cash used in investing activities

 

       (2,386)

 

     (2,073)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(339)

 

        (316)

Issuances of common stock

 

             18

 

           40

Repurchases of common stock

 

       (1,018)

 

        (185)

Issuance of long-term debt

 

        1,706

 

         404

Payments on long-term debt

 

            (79)

 

     (1,072)

Increase in short-term debt, net

 

           564

 

         812

Other

 

             16

 

           21

 

Net cash provided by (used in) financing activities

 

           868

 

        (296)

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

          (337)

 

        (281)

Cash and cash equivalents, January 1

 

           668

 

         920

Cash assumed in connection with FIN 46(R) initial consolidation

 

             -   

 

           29

Cash and cash equivalents, December 31

 

 $        331

 

 $      668

 

 

 

 

 

 



SEMPRA ENERGY

 

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

2008

 

2007

 

2008

 

2007

 

 

 

 

(unaudited)

 

 

 

 

 

Net Income (Loss)

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $     81

 

 $     47

 

 $     339

 

 $    283

 

Southern California Gas

        54

 

        58

 

       244

 

       230

 

Sempra Commodities(1)

      164

 

      186

 

       345

 

       499

 

Sempra Generation

        60

 

        40

 

       222

 

       162

 

Sempra Pipelines & Storage

        22

 

        14

 

       106

 

         64

 

Sempra LNG

      (13)

 

      (19)

 

       (46)

 

       (46)

 

Parent & Other

      (49)

 

      (38)

 

       (97)

 

       (67)

 

Continuing Operations

      319

 

      288

 

     1,113

 

    1,125

 

Discontinued Operations, Net of Income Tax

          -

 

          1

 

            -

 

       (26)

 

Consolidated Net Income

 $   319

 

 $   289

 

 $  1,113

 

 $ 1,099

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes the company's portion of RBS Sempra Commodities' joint venture earnings since the formation of the joint venture on April 1, 2008, and 100% of the commodities-marketing businesses prior to April 1, 2008. Also includes the operating results of Sempra Rockies Marketing, as well as interest, income taxes, cost allocations and other items associated with the joint venture.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

2008

 

2007

 

2008

 

2007

 

 

 

 

(unaudited)

 

 

 

 

 

Capital Expenditures and Investments(1)

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $   430

(2)

 $   235

 

 $  1,372

(2)

 $    714

 

Southern California Gas

      104

 

      157

 

       454

 

       457

 

Sempra Commodities

          -

 

       15

 

         37

 

         64

 

Sempra Generation

        44

 

          5

 

         59

 

         13

 

Sempra Pipelines & Storage(3)

      564

 

      187

 

       909

 

       367

 

Sempra LNG

        55

 

      152

 

       365

 

       498

 

Parent & Other

      229

(2)

          7

 

       655

(2)

         19

 

Eliminations

    (411)

(4)

          -

 

     (715)

(4)

           -

 

Consolidated Capital Expenditures and Investments

 $ 1,015

 

 $   758

 

 $  3,136

 

 $ 2,132

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Investments do not include the $1.6 billion contribution to RBS Sempra Commodities in the second quarter of 2008.

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Purchases of industrial development bonds for SDG&E and Parent & Other were $184 and $227, respectively, in the three months ended December 31, 2008 and $488 and $640, respectively, for year ended December 31, 2008.

 

 

 

 

 

 

 

 

 

 

 

 

(3)

Amounts for the three months and the year ended December 31, 2008 include $495 for the acquisition of EnergySouth, which is net of cash acquired.

 

 

 

 

 

 

 

 

 

 

 

 

(4)

Represents purchases and sales of industrial development bonds between SDG&E and Parent & Other.

 



 

 

 

 

 

 

 

 

 

 

                        SEMPRA ENERGY

 

 

 

                               Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

December 31,

 

December 31,

SEMPRA UTILITIES

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

Revenues (Dollars in millions)

 

 

 

 

 

 

 

SDG&E (excludes intercompany sales)

 $    801

 

 $    765

 

 $ 3,240

 

 $ 2,839

SoCalGas (excludes intercompany sales)

 $    981

 

 $ 1,094

 

 $ 4,732

 

 $ 4,214

 

 

 

 

 

 

 

 

 

 

Gas Sales (Bcf)

       103

 

       114

 

       391

 

       404

Transportation and Exchange (Bcf)

       156

 

       145

 

       601

 

       566

Total Deliveries (Bcf)

       259

 

       259

 

       992

 

       970

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 

 

 

 

    6,575

 

    6,531

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

    4,386

 

    4,198

 

  17,398

 

  17,045

Direct Access (Millions of kWhs)

       939

 

       819

 

    3,235

 

    3,220

Total Deliveries (Millions of kWhs)

    5,325

 

    5,017

 

  20,633

 

  20,265

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 

 

 

 

    1,372

 

    1,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

    5,903

 

    5,613

 

  22,728

 

  20,856

 

 

 

 

 

 

 

 

 

 

SEMPRA PIPELINES & STORAGE

 

 

 

 

 

 

 

(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.)

Natural Gas Sales (Bcf)

 

 

 

 

 

 

 

 

Argentina

 

         78

 

         79

 

       332

 

       320

 

Mexico

 

         11

 

         11

 

         47

 

         46

 

Chile

 

           -

 

           -

 

           -

 

          1

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

 

    1,670

 

    1,603

 

Mexico

 

 

 

 

 

         95

 

         96

 

Chile

 

 

 

 

 

           -

 *

         39

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

Peru

 

    1,352

 

    1,278

 

    5,415

 

    5,078

 

Chile

 

       620

 

       632

 

    2,417

 

    2,500

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

       837

 

       809

 

Chile

 

 

 

 

 

       562

 

       549

 

 

 

 

 

 

 

 

 

 

*

The decrease from 2007 is due to the sale of interests in certain South American operations in the fourth quarter of 2008.

 

 

 

 

 

 

 

 

 



SEMPRA ENERGY

Table E (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA COMMODITIES

 

 

 

The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP.  RBS Sempra Commodities LLP acquired the commodities-marketing businesses of Sempra Energy on April 1, 2008.  For the three and nine months ended December 31, 2008, the Sempra Commodities segment is composed primarily of the company's equity interest in RBS Sempra Commodities LLP, but also includes the results of Sempra Rockies Marketing.  The margin and financial data below represent the total results of RBS Sempra Commodities LLP as calculated under International Financial Reporting Standards (IFRS).

 

 

 

 

 

RBS Sempra Commodities LLP

 

 

 

 

 

 

 

 

Operating Statistics

 

 

 

(in millions of US dollars)

 

 

 

 

 

Three

 

Nine

 

 

months ended

 

months ended

RBS Sempra Commodities LLP - Joint Venture level margin*

December 31, 2008

 

December 31, 2008

 

 

 

 

 

Geographical:

 

 

 

 

North America

 $                           373

 

 $                       816

 

Europe/Asia

                             340

 

                          603

 

  Total

 $                           713

 

 $                     1,419

 

 

 

 

 

Product Line:

 

 

 

 

Natural Gas

 $                           171

 

 $                       534

 

Oil - Crude & Products

                             243

 

                          357

 

Metals

                             149

 

                          253

 

Power

                             129

 

                          222

 

Other

                               21

 

                            53

 

  Total

 $                           713

 

 $                     1,419

 

 

 

 

 

* Margin consists of operating revenues less cost of sales (primarily transportation and storage costs) reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense.                           

 

 

 

 

 

Financial Information

 

 

 

(in millions of US dollars)

 

 

 

 

 

 

 

 

RBS Sempra Commodities LLP

Three months ended December 31, 2008

 

 

Joint Venture

 

Sempra

 

 

Total

 

              Share**

 

Fee income and trading revenue, net of selling costs

 $                           713

 

 

 

Operating and other expenses

                            (339)

 

 

 

Joint Venture distributable income

 $                           374

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred return on capital

 $                           103

 

 $                         61

 

1st allocation - 70% Sempra / 30% RBS***

                             271

 

                          192

 

2nd allocation - 30% Sempra / 70% RBS

                                  -

 

                              -

 

Distributable income

 $                           374

 

 $                       253

 

 

 

 

 

 

 

Nine months ended December 31, 2008

 

 

Joint Venture

 

Sempra

 

 

Total

 

             Share**

 

Fee income and trading revenue, net of selling costs

 $                        1,419

 

 

 

Operating and other expenses

                            (744)

 

 

 

Joint Venture distributable income

 $                           675

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred return on capital

 $                           382

 

 $                       181

 

1st allocation - 70% Sempra / 30% RBS***

                             293

 

                          208

 

2nd allocation - 30% Sempra / 70% RBS

                                  -

 

                              -

 

Distributable income

 $                           675

 

 $                       389

 

 

 

 

 

Sempra Earnings from RBS Sempra Commodities LLP

 

 

 

 

 

 

 

 

 

 

Three

 

Nine

 

 

months ended

 

months ended

(in millions of US dollars)

December 31, 2008

 

December 31, 2008

 

Sempra share of distributable income - IFRS basis

 $                           253

 

 $                       389

 

U.S. GAAP conversion impact

                              (12)

 

                             (6)

 

Sempra equity earnings - U.S. GAAP basis

                             241

 

                          383

 

Income tax expense

                              (79)

 

                         (131)

 

Sempra equity earnings from RBS Sempra Commodities LLP

 $                           162

 

 $                       252

 

 

 

 

 

**

After a 15% preferred return to Sempra and then a 15% return to RBS, Sempra receives 70% of the next $500 million and 30% of any remaining income on an annual basis.

 

 

 

 

 

***

Includes certain transition costs specifically allocated to Sempra and RBS.     

 

 

 

Exhibit 99.2



Exhibit 99.2


SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        802

 

 $          992

 

 $             14

 

 $          358

 

 $         119

 

 $            30

 

 $            (22)

 

 

 $ 2,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (590)

 

            (829)

 

              (18)

 

           (278)

 

            (99)

 

             (55)

 

                 (7)

 

 

  (1,876)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (75)

 

             (71)

 

                  -

 

             (14)

 

            (10)

 

              (7)

 

                 (2)

 

 

    (179)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

              241

 

              (2)

 

              13

 

                 -

 

                 (3)

 

 

      249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

              7

 

                1

 

                  -

 

              (2)

 

                -

 

              (2)

 

               (81)

 

 

      (77)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          144

 

              93

 

              237

 

              62

 

              23

 

             (34)

 

             (115)

 

 

      410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

 

           (23)

 

             (16)

 

               (4)

 

                 -

 

             (4)

 

              (2)

 

               (33)

 

 

      (82)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (40)

 

             (23)

 

              (69)

 

              (2)

 

             (3)

 

               23

 

                 99

 

 

      (15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                 -

 

               6

 

                 -

 

                   -

 

 

          6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $         81

 

 $            54

 

 $           164

 

 $            60

 

 $           22

 

 $          (13)

 

 $            (49)

 

 

 $    319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        768

 

 $       1,114

 

 $           773

 

 $          412

 

 $           72

 

 $          (11)

 

 $            (18)

 

 

 $ 3,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (590)

 

            (936)

 

            (469)

 

           (327)

 

            (70)

 

             (14)

 

               (33)

 

 

  (2,439)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (76)

 

             (71)

 

               (7)

 

             (15)

 

             (2)

 

                 -

 

                 (1)

 

 

    (172)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

                  -

 

                3

 

               1

 

                 -

 

                 (2)

 

 

          2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

              1

 

                1

 

                  -

 

                 -

 

               1

 

                 -

 

                 15

 

 

        18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          103

 

             108

 

              297

 

              73

 

               2

 

             (25)

 

               (39)

 

 

      519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

           (22)

 

             (12)

 

              (15)

 

                2

 

             (1)

 

                 -

 

               (13)

 

 

      (61)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (34)

 

             (38)

 

              (96)

 

             (35)

 

                -

 

                6

 

                 14

 

 

    (183)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                 -

 

              13

 

                 -

 

                   -

 

 

        13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

               -

 

                 -

 

                  -

 

                 -

 

               -

 

                 -

 

                   1

 

 

          1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $         47

 

 $            58

 

 $           186

 

 $            40

 

 $           14

 

 $          (19)

 

 $            (37)

 

 

 $    289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Management believes "Income (Loss) before Interest & Taxes" 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $     3,251

 

 $       4,768

 

 $           500

 

 $      1,784

 

 $         457

 

 $          74

 

 $           (76)

 

 

 $10,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

       (2,386)

 

         (4,054)

 

           (428)

 

       (1,409)

 

         (413)

 

         (130)

 

              (25)

 

 

  (8,845)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

         (298)

 

            (280)

 

               (6)

 

           (56)

 

           (20)

 

           (15)

 

              (12)

 

 

    (687)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (Losses) on Sale of Assets

 

              3

 

                 -

 

             110

 

               2

 

                -

 

                -

 

                (1)

 

 

      114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

             383

 

               8

 

             43

 

                -

 

              (14)

 

 

      420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            25

 

                2

 

                  -

 

             (1)

 

               2

 

             11

 

              (93)

 

 

      (54)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          595

 

             436

 

             559

 

           328

 

             69

 

           (60)

 

            (221)

 

 

    1,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

           (95)

 

             (52)

 

             (16)

 

             (6)

 

                -

 

             (7)

 

              (42)

 

 

    (218)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

         (161)

 

            (140)

 

           (201)

 

         (100)

 

           (23)

 

             21

 

              166

 

 

    (438)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                 3

 

                -

 

             60

 

                -

 

                   -

 

 

        63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $        339

 

 $          244

 

 $           345

 

 $         222

 

 $         106

 

 $        (46)

 

 $           (97)

 

 

 $ 1,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $     2,852

 

 $       4,282

 

 $        2,674

 

 $      1,476

 

 $         314

 

 $        (22)

 

 $          (138)

 

 

 $11,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

       (2,053)

 

         (3,566)

 

         (1,906)

 

       (1,169)

 

         (297)

 

           (44)

 

              (44)

 

 

  (9,079)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

         (301)

 

            (281)

 

             (26)

 

           (56)

 

           (11)

 

                -

 

              (11)

 

 

    (686)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on Sale of Assets

 

              2

 

                2

 

                  -

 

                -

 

                -

 

                -

 

                  2

 

 

          6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

                  -

 

               9

 

             (4)

 

                -

 

              (14)

 

 

        (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            11

 

               (3)

 

                  -

 

                -

 

               3

 

                -

 

                79

 

 

        90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          511

 

             434

 

             742

 

           260

 

               5

 

           (66)

 

            (126)

 

 

    1,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

           (93)

 

             (44)

 

             (31)

 

             13

 

             (2)

 

             (2)

 

              (51)

 

 

    (210)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

         (135)

 

            (160)

 

           (252)

 

         (111)

 

               2

 

             22

 

              110

 

 

    (524)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

               40

 

                -

 

             59

 

                -

 

                   -

 

 

        99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

               -

 

                 -

 

                  -

 

                -

 

                -

 

                -

 

              (26)

 

 

      (26)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $        283

 

 $          230

 

 $           499

 

 $         162

 

 $          64

 

 $        (46)

 

 $           (93)

 

 

 $ 1,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Management believes "Income (Loss) before Interest & Taxes" 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.