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): |
May 4, 2005 |
|
|
Name of Registrant, State of |
IRS Employer |
|
1-40 |
Pacific Enterprises |
94-0743670 |
|
1-1402 |
Southern California Gas Company |
95-1240705 |
---------------------------------------------------------------------
(Former name or former address, if changed since last report.)
FORM 8-K
Item 2.02 Results of Operations and Financial Condition
On May 4, 2005, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued its earnings press release for the first quarter of 2005. The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding the results of operations and financial condition of Pacific Enterprises and Southern California Gas Company. A copy of the press release is attached as Exhibit 99.1. The information furnished in this Item 2.02 and in Exhibit 99.1 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
99.1 May 4, 2005 Sempra Energy News Release (including tables)
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
|
Date: May 4, 2005 |
By: /s/ F. H. Ault |
|
F. H. Ault |
|
Southern California Gas Company
|
Date: May 4, 2005 |
By: /s/ S.D. Davis |
|
S.D. Davis |
|
Exhibit 99.1
|
NEWS RELEASE |
||
|
Media Contacts: |
Doug Kline |
|
|
Financial Contacts: |
Dennis Arriola/Karen Sedgwick |
|
SEMPRA ENERGY REPORTS
HIGHER FIRST-QUARTER 2005 EARNINGS
SAN DIEGO, May 4, 2005 - Sempra Energy today reported first-quarter 2005 earnings of $223 million, or $0.92 per diluted share, compared with $197 million, or $0.85 per diluted share, in the first quarter 2004.
"Operating results in the first quarter were solid for all of our businesses and put us on track to accomplish our financial goals for the year," said Stephen L. Baum, chairman and chief executive officer of Sempra Energy. "We are reaffirming our earnings-per-share guidance for 2005 of $3.10 to $3.30."
Net income in the first quarter 2005 included $59 million related to the favorable resolution of federal and state income-tax issues from prior years for both the parent company and the California utilities. First-quarter 2004 results included a $24 million loss related to discontinued operations and $16 million in net income related to the favorable resolution of prior years' income-tax issues.
Revenues in the first quarter 2005 were $2.7 billion, compared with $2.4 billion in the same quarter last year, due to increased power and commodity sales.
SUBSIDIARY OPERATING RESULTS
Sempra Utilities
Net income for San Diego Gas & Electric was $59 million in the first quarter 2005, up from $50 million in the year-ago quarter. The increase was due primarily to the favorable resolution of income-tax issues.
Net income for Southern California Gas Co. in the first quarter 2005 rose to $69 million from $56 million in the first quarter 2004, primarily due to a favorable adjustment related to the utility's recent rate-making decision.
Sempra Commodities
Sempra Commodities' first-quarter 2005 net income was $29 million, versus $57 million in the same quarter last year. The decrease in quarterly net income was primarily due to lower income in natural gas and metals trading.
"Accounting rules impact the timing of earnings recognition for our commodity operations, as was the case in our natural gas trading operations during the first quarter," Baum said. "Even though we will continue to see quarter-to-quarter variation in reported earnings for this business, we expect Sempra Commodities to meet its 2005 financial plan."
Sempra Generation
First-quarter net income for Sempra Generation rose to $46 million in 2005 from $35 million last year, primarily as a result of increased power sales from the company's generating facilities in Texas. Sempra Generation acquired its half of the Coleto Creek facility and eight other Texas power plants in July 2004.
Sempra Pipelines & Storage
Sempra Pipelines & Storage had net income of $13 million during the first quarter 2005, up from $11 million in the year-ago quarter, due primarily to improved results from the company's Latin American utility operations.
Sempra LNG
Sempra LNG recorded a net loss of $5 million during the first quarter 2005, versus net income of $6 million in the first quarter 2004. Last year's quarterly results included an $8 million contribution from the favorable buy-out of a future obligation related to the Cameron LNG project.
"We are pleased that our liquefied natural gas business is making good progress," Baum said. "Capacity for our Energía Costa Azul receipt terminal in Baja California, Mexico, is fully subscribed and construction on the terminal is underway. We are working toward finalizing several non-binding, preliminary agreements this summer for capacity at our Cameron LNG terminal in Louisiana and expect to begin construction later this year. Finally, last week we announced a preliminary agreement with Gazprom - the world's largest natural gas producer - which wants to enter the North American market with sufficient quantities of gas to launch our Port Arthur LNG terminal in Texas. We expect to receive federal regulatory approvals for this terminal by year-end. "
INTERNET BROADCAST
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. Eastern Time 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 (706) 645-9291 and entering passcode number 5582676.
Sempra Energy, based in San Diego, is a Fortune 500 energy-services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies' more than 13,000 employees serve more than 10 million customers in the United States, Europe, Canada, Mexico, South America and Asia.
###
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; 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 outcome of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site,
Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.
|
Table A |
|||||
|
STATEMENTS OF CONSOLIDATED INCOME (Unaudited) |
|||||
|
Three months ended |
|||||
|
March 31, |
|||||
|
(Dollars in millions, except per share amounts) |
2005 |
|
2004 |
||
|
Operating revenues |
|||||
|
California utilities: |
|||||
|
Natural gas |
$ 1,433 |
$ 1,333 |
|||
|
Electric |
394 |
381 |
|||
|
Other |
865 |
646 |
|||
|
Total operating revenues |
2,692 |
2,360 |
|||
|
Operating expenses |
|||||
|
California utilities: |
|||||
|
Cost of natural gas |
913 |
824 |
|||
|
Cost of electric fuel and purchased power |
145 |
127 |
|||
|
Other cost of sales |
584 |
327 |
|||
|
Other operating expenses |
542 |
521 |
|||
|
Depreciation and amortization |
161 |
165 |
|||
|
Franchise fees and other taxes |
68 |
64 |
|||
|
Total operating expenses |
2,413 |
2,028 |
|||
|
Operating income |
279 |
332 |
|||
|
Other income, net |
17 |
5 |
|||
|
Interest income |
11 |
23 |
|||
|
Interest expense |
(74 |
) |
(80 |
) |
|
|
Preferred dividends of subsidiaries |
(2 |
) |
(2 |
) |
|
|
Income from continuing operations before income taxes |
231 |
278 |
|||
|
Income tax expense |
8 |
57 |
|||
|
Income from continuing operations |
223 |
221 |
|||
|
Loss from discontinued operations, net of tax |
- |
(24 |
) |
||
|
Net income |
$ 223 |
$ 197 |
|||
|
Basic earnings per share: |
|||||
|
Income from continuing operations |
$ 0.96 |
$ 0.97 |
|||
|
Discontinued operations, net of tax |
- |
(0.11 |
) |
||
|
Net income |
$ 0.96 |
$ 0.86 |
|||
|
Weighted-average number of shares outstanding (thousands) |
232,939 |
228,055 |
|||
|
Diluted earnings per share: |
|||||
|
Income from continuing operations |
$ 0.92 |
$ 0.96 |
|||
|
Discontinued operations, net of tax |
- |
(0.11 |
) |
||
|
Net income |
$ 0.92 |
$ 0.85 |
|||
|
Weighted-average number of shares outstanding (thousands) |
241,105 |
231,136 |
|||
|
Dividends declared per share of common stock |
$ 0.29 |
$ 0.25 |
|||
|
SEMPRA ENERGY |
||||||
|
Table B |
||||||
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||
|
March 31, |
December 31, |
|||||
|
(Dollars in millions) |
|
2005 |
|
2004 |
||
|
Assets |
||||||
|
Current assets: |
||||||
|
Cash and cash equivalents |
$ 609 |
$ 419 |
||||
|
Short-term investments |
12 |
15 |
||||
|
Accounts receivable |
874 |
1,032 |
||||
|
Due from unconsolidated affiliate |
5 |
4 |
||||
|
Deferred income taxes |
47 |
15 |
||||
|
Interest receivable |
47 |
80 |
||||
|
Trading-related receivables and deposits, net |
2,442 |
2,606 |
||||
|
Derivative trading instruments |
3,023 |
2,339 |
||||
|
Commodities owned |
1,201 |
1,547 |
||||
|
Regulatory assets arising from fixed-price contracts and other derivatives |
143 |
152 |
||||
|
Other regulatory assets |
107 |
103 |
||||
|
Inventories |
70 |
172 |
||||
|
Other |
196 |
222 |
||||
|
Current assets of continuing operations |
8,776 |
8,706 |
||||
|
Current assets of discontinued operations |
60 |
70 |
||||
|
Total current assets |
8,836 |
8,776 |
||||
|
Investments and other assets: |
||||||
|
Due from unconsolidated affiliates |
27 |
42 |
||||
|
Regulatory assets arising from fixed-price contracts and other derivatives |
470 |
500 |
||||
|
Other regulatory assets |
601 |
619 |
||||
|
Nuclear decommissioning trusts |
613 |
612 |
||||
|
Investments |
1,147 |
1,164 |
||||
|
Sundry |
821 |
844 |
||||
|
Total investments and other assets |
3,679 |
3,781 |
||||
|
Property, plant and equipment, net |
11,245 |
11,086 |
||||
|
Total assets |
$ 23,760 |
$ 23,643 |
||||
|
Liabilities and Shareholders' Equity |
||||||
|
Current liabilities: |
||||||
|
Short-term debt |
$ 340 |
$ 405 |
||||
|
Accounts payable |
692 |
1,126 |
||||
|
Due to unconsolidated affiliates |
- |
205 |
||||
|
Income taxes payable |
255 |
187 |
||||
|
Trading-related payables |
2,795 |
3,182 |
||||
|
Derivative trading instruments sold, not yet purchased |
2,414 |
1,484 |
||||
|
Commodities sold with agreement to repurchase |
291 |
513 |
||||
|
Dividends and interest payable |
132 |
123 |
||||
|
Regulatory balancing accounts, net |
599 |
509 |
||||
|
Fixed-price contracts and other derivatives |
146 |
157 |
||||
|
Current portion of long-term debt |
394 |
398 |
||||
|
Temporary LIFO liquidation |
200 |
- |
||||
|
Other |
780 |
776 |
||||
|
Current liabilities of continuing operations |
9,038 |
9,065 |
||||
|
Current liabilities of discontinued operations |
7 |
17 |
||||
|
Total current liabilities |
9,045 |
9,082 |
||||
|
Long-term debt |
4,132 |
4,192 |
||||
|
Deferred credits and other liabilities: |
||||||
|
Due to unconsolidated affiliates |
162 |
162 |
||||
|
Customer advances for construction |
94 |
97 |
||||
|
Postretirement benefits other than pensions |
127 |
129 |
||||
|
Deferred income taxes |
386 |
420 |
||||
|
Deferred investment tax credits |
77 |
78 |
||||
|
Regulatory liabilities arising from cost of removal obligations |
2,386 |
2,359 |
||||
|
Regulatory liabilities arising from asset retirement obligations |
330 |
333 |
||||
|
Other regulatory liabilities |
72 |
67 |
||||
|
Fixed-price contracts and other derivatives |
472 |
500 |
||||
|
Asset retirement obligations |
330 |
326 |
||||
|
Deferred credits and other |
837 |
854 |
||||
|
Total deferred credits and other liabilities |
5,273 |
5,325 |
||||
|
Preferred stock of subsidiaries |
179 |
179 |
||||
|
Shareholders' equity |
5,131 |
4,865 |
||||
|
Total liabilities and shareholders' equity |
$ 23,760 |
$ 23,643 |
||||
|
Table C |
|||||||||||||
|
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) |
|||||||||||||
|
Three months ended |
|||||||||||||
|
March 31, |
|||||||||||||
|
(Dollars in millions) |
|
2005 |
|
2004 |
|||||||||
|
Cash Flows from Operating Activities: |
|||||||||||||
|
Net income |
$ 223 |
$ 197 |
|||||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||
|
Loss from discontinued operations, net of tax |
- |
24 |
|||||||||||
|
Depreciation and amortization |
161 |
165 |
|||||||||||
|
Deferred income taxes and investment tax credits |
(68 |
) |
(22 |
) |
|||||||||
|
Other, net |
9 |
27 |
|||||||||||
|
Net changes in other working capital components |
393 |
408 |
|||||||||||
|
Changes in other assets |
4 |
7 |
|||||||||||
|
Changes in other liabilities |
(3 |
) |
(13 |
) |
|||||||||
|
Net cash provided by continuing operations |
719 |
793 |
|||||||||||
|
Net cash used in discontinued operations |
- |
(2 |
) |
||||||||||
|
Net cash provided by operating activities |
719 |
791 |
|||||||||||
|
Cash Flows from Investing Activities: |
|||||||||||||
|
Expenditures for property, plant and equipment |
(269 |
) |
(219 |
) |
|||||||||
|
Proceeds from sale of assets |
6 |
363 |
(1) |
||||||||||
|
Investments in and acquisitions of subsidiaries, net of cash acquired |
(1 |
) |
(7 |
) |
|||||||||
|
Dividends received from affiliates |
2 |
10 |
|||||||||||
|
Other, net |
16 |
10 |
|||||||||||
|
Net cash provided by (used in) investing activities |
(246 |
) |
157 |
||||||||||
|
Cash Flows from Financing Activities: |
|||||||||||||
|
Common dividends paid |
(50 |
) |
(48 |
) |
|||||||||
|
Issuances of common stock |
90 |
35 |
|||||||||||
|
Repurchases of common stock |
(6 |
) |
(2 |
) |
|||||||||
|
Issuances of long-term debt |
- |
21 |
|||||||||||
|
Redemption of mandatorily redeemable preferred securities |
(200 |
) |
- |
||||||||||
|
Payments on long-term debt |
(50 |
) |
(857 |
) |
|||||||||
|
Increase (decrease) in short-term debt, net |
(64 |
) |
134 |
||||||||||
|
Other, net |
(3 |
) |
(2 |
) |
|||||||||
|
Net cash used in financing activities |
(283 |
) |
(719 |
) |
|||||||||
|
Increase in cash and cash equivalents |
190 |
229 |
(2) |
||||||||||
|
Cash and cash equivalents, January 1 |
419 |
409 |
|||||||||||
|
Cash and cash equivalents, March 31 |
$ 609 |
$ 638 |
|||||||||||
|
(1) |
Proceeds from the sale of U.S. Treasury obligations which previously securitized the Mesquite synthetic lease. |
||||||||||||
|
(2) |
Change from $221 as reported in prior year reflects reclassification of restricted cash. |
||||||||||||
|
SEMPRA ENERGY |
|||||||
|
Table D |
|||||||
|
BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited) |
|||||||
|
Three months ended |
|||||||
|
March 31, |
|||||||
|
(Dollars in millions) |
2005 |
|
2004 |
||||
|
Net Income |
|||||||
|
California Utilities: |
|||||||
|
San Diego Gas & Electric |
$ 59 |
$ 50 |
|||||
|
Southern California Gas |
69 |
56 |
|||||
|
Total California Utilities |
128 |
106 |
|||||
|
Sempra Global: |
|||||||
|
Sempra Commodities |
29 |
57 |
|||||
|
Sempra Generation |
46 |
35 |
|||||
|
Sempra Pipelines & Storage |
13 |
11 |
|||||
|
Sempra LNG |
(5 |
) |
6 |
||||
|
Total Sempra Global |
83 |
109 |
|||||
|
Sempra Financial |
4 |
10 |
|||||
|
Parent & Other |
8 |
(4 |
) |
||||
|
|
|
||||||
|
Continuing Operations |
223 |
221 |
|||||
|
Discontinued Operations (1) |
- |
(24 |
) |
||||
|
Consolidated Net Income |
$ 223 |
$ 197 |
|||||
|
(1) |
Reflects Atlantic Electric & Gas. |
||||||
|
Three months ended |
|||||||
|
March 31, |
|||||||
|
(Dollars in millions) |
2005 |
|
2004 |
|
|||
|
Capital Expenditures and Investments |
|||||||
|
California Utilities: |
|||||||
|
San Diego Gas & Electric |
$ 94 |
$ 69 |
|||||
|
Southern California Gas |
63 |
62 |
|||||
|
Total California Utilities |
157 |
131 |
|||||
|
Sempra Global: |
|||||||
|
Sempra Generation |
49 |
14 |
|||||
|
Sempra Commodities |
13 |
46 |
|||||
|
Sempra Pipelines & Storage |
4 |
5 |
|||||
|
Sempra LNG |
45 |
22 |
|||||
|
Total Sempra Global |
111 |
87 |
|||||
|
Parent & Other |
2 |
8 |
|||||
|
Consolidated Capital Expenditures and Investments |
$ 270 |
$ 226 |
|||||
|
Table E |
||||||||
|
OTHER OPERATING STATISTICS (Unaudited) |
||||||||
|
Three months ended |
||||||||
|
March 31, |
||||||||
|
CALIFORNIA UTILITIES |
2005 |
|
2004 |
|
||||
|
Revenues (Dollars in millions) |
||||||||
|
SDG&E (excludes intercompany sales) |
$ 616 |
$ 575 |
||||||
|
SoCalGas (excludes intercompany sales) |
$ 1,211 |
$ 1,139 |
||||||
|
Gas Sales (Bcf) |
137 |
140 |
||||||
|
Transportation and Exchange (Bcf) |
122 |
121 |
||||||
|
Total Deliveries (Bcf) |
259 |
261 |
||||||
|
Total Gas Customers (Thousands) |
6,316 |
6,231 |
||||||
|
Electric Sales (Millions of kWhs) |
3,906 |
3,812 |
||||||
|
Direct Access (Millions of kWhs) |
820 |
729 |
||||||
|
Total Deliveries (Millions of kWhs) |
4,726 |
4,541 |
||||||
|
Total Electric Customers (Thousands) |
1,323 |
1,301 |
||||||
|
SEMPRA GENERATION |
|
|
|
|
||||
|
Power Sold (Millions of kWhs) |
5,639 |
4,477 |
||||||
|
SEMPRA PIPELINES & STORAGE |
||||||||
|
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy). |
||||||||
|
Natural Gas Sales (Bcf) |
||||||||
|
Argentina |
51 |
51 |
||||||
|
Mexico |
10 |
10 |
||||||
|
Chile |
1 |
1 |
||||||
|
Natural Gas Customers (Thousands) |
||||||||
|
Argentina |
1,459 |
1,414 |
||||||
|
Mexico |
97 |
101 |
||||||
|
Chile |
38 |
37 |
||||||
|
Electric Sales (Millions of kWhs) |
||||||||
|
Peru |
1,052 |
1,007 |
||||||
|
Chile |
733 |
508 |
||||||
|
Electric Customers (Thousands) |
||||||||
|
Peru |
753 |
736 |
||||||
|
Chile |
512 |
499 |
||||||
|
Table E (Continued) |
|||||||||||
|
SEMPRA COMMODITIES |
|
|
|
|
|
|
|
|
|
||
|
Three months ended |
|||||||||||
|
March 31, |
|||||||||||
|
Margin * (Dollars in millions) |
2005 |
|
2004 |
||||||||
|
Geographical: |
|||||||||||
|
North America |
$ 125 |
$ 120 |
|||||||||
|
Europe/Asia |
29 |
|
84 |
||||||||
|
Total |
$ 154 |
|
$ 204 |
||||||||
|
Product Line: |
|||||||||||
|
Gas |
$ (15 |
) |
$ 42 |
||||||||
|
Power |
42 |
45 |
|||||||||
|
Oil - Crude & Products |
80 |
42 |
|||||||||
|
Metals |
14 |
58 |
|||||||||
|
Other |
33 |
|
17 |
||||||||
|
Total |
$ 154 |
|
$ 204 |
||||||||
|
* Margin consists of net trading revenues less related costs (primarily brokerage, transportation and storage) plus or minus |
|||||||||||
|
net interest income/expense. |
|||||||||||
|
Physical Statistics |
|
|
|
|
|
|
|
|
|
||
|
Natural Gas (BCF/Day) |
12.2 |
13.8 |
|||||||||
|
Electric (Billions of kWhs) |
107.8 |
96.6 |
|||||||||
|
Oil & Liquid Products (Millions Bbls/Day) |
1.9 |
2.0 |
|||||||||
|
Fair |
|||||||||||
|
Market Value |
|||||||||||
|
March 31, |
Scheduled Maturity (in months) |
||||||||||
|
Net Unrealized Revenue (Dollars in millions) |
2005 |
|
0 - 12 |
|
13 - 24 |
|
25 - 36 |
|
> 36 |
||
|
Sources of Over-the-Counter (OTC) Fair Value: |
|||||||||||
|
Prices actively quoted |
$ 568 |
$ 475 |
$ 9 |
$ 19 |
$ 65 |
||||||
|
Prices provided by other external sources |
34 |
- |
- |
- |
34 |
||||||
|
Prices based on models and other valuation methods |
(6 |
) |
5 |
|
- |
|
- |
|
(11 |
) |
|
|
Total OTC Fair Value (1) |
$ 596 |
$ 480 |
$ 9 |
$ 19 |
$ 88 |
||||||
|
Maturity of OTC Fair Value |
|||||||||||
|
Percentage |
100.0% |
|
80.5% |
|
1.5% |
|
3.2% |
|
14.8% |
||
|
Cumulative Percentages |
|
|
80.5% |
|
82.0% |
|
85.2% |
|
100.0% |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Exchange Contracts (2) |
$ (7 |
) |
$ (127 |
) |
$ 173 |
|
$ (63 |
) |
$ 10 |
||
|
Total Net Unrealized Revenue |
$ 589 |
||||||||||
|
(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts |
|||||||||||
|
(2) Cash received or (paid) associated with open Exchange Contracts |
|||||||||||
|
March 31, |
December 31, |
||||||||||
|
Credit Quality of Unrealized Trading Assets (net of margin) |
2005 |
|
2004 |
||||||||
|
Commodity Exchanges |
10% |
10% |
|||||||||
|
Investment Grade |
70% |
66% |
|||||||||
|
Below Investment Grade |
20% |
24% |
|||||||||
|
Three months ended |
|||||||||||
|
March 31, |
|||||||||||
|
Risk Adjusted Performance Indicators |
2005 |
|
2004 |
||||||||
|
VaR at 95% (Dollars in millions) (1) |
$ 8.5 |
$ 5.7 |
|||||||||
|
VaR at 99% (Dollars in millions) (2) |
$ 11.9 |
$ 8.1 |
|||||||||
|
Risk Adjusted Return on Capital (RAROC) (3) |
33% |
41% |
|||||||||
|
(1) Average Daily Value-at-Risk for the period using a 95% confidence level |
|||||||||||
|
(2) Average Daily Value-at-Risk for the period using a 99% confidence level |
|||||||||||
|
(3) Average Daily Trading Margin/Average Daily VaR at 95% confidence level |
|||||||||||