PE/SOCAL 8-K 11/01/07



UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C.  20549



FORM 8-K
CURRENT REPORT




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

  

  

  

  

Date of Report

 

(Date of earliest event reported):

November 1, 2007




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))

 

 




2





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 November 1, 2007, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated net income of $305 million, or $1.15 per diluted share of common stock, for the third quarter of 2007. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.


Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Income Statement Data by Business Unit for the three months and nine months ended September 30, 2007 and 2006. A copy of such information is attached as Exhibit 99.2.


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

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


          99.2

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




3





  

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: November 1, 2007

By: /S/ Dennis V. Arriola

 

Dennis V. Arriola
Sr. Vice President and Chief Financial Officer

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: November 1, 2007

By: /S/ Dennis V. Arriola

 

Dennis V. Arriola
Sr. Vice President and Chief Financial Officer

 

  





4



Exhibit 99.1

Exhibit 99.1




NEWS RELEASE


Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 866-2066

 

www.sempra.com

 

 

 

 

Financial Contact:

Glen Donovan

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com



SEMPRA ENERGY REPORTS

THIRD-QUARTER RESULTS,

EXPECTS TO EXCEED PRIOR 2007 GUIDANCE


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


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

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

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

-more-




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

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


OPERATING HIGHLIGHTS

Sempra Utilities

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

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

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

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

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

-more-





Sempra Commodities

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

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


Sempra Generation

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


Sempra Pipelines & Storage

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

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



-more-




Sempra LNG

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


Internet Broadcast

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company.  Access is available by logging onto the Web site at www.sempra.com.  For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering the passcode 3858841.

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

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

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should” or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, U.K. Financial Services Authority, and other environmental and regulatory bodies in the United States and other countries; capital market conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas, electric power and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company’s Web site, www.sempra.com.


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


###






SEMPRA ENERGY

 

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENTS OF CONSOLIDATED INCOME  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

(Dollars in millions, except per share amounts)

2007

 

2006

 

2007

 

2006

 

 

 

(unaudited)

 

Operating revenues

 

 

 

 

 

 

 

 

Sempra Utilities

 $   1,515

 

 $    1,494

 

 $   5,194

 

 $    5,190

 

Sempra Global and parent

      1,148

 

       1,200

 

      3,134

 

       3,326

 

 

Total operating revenues

      2,663

 

       2,694

 

      8,328

 

       8,516

 

Operating expenses

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

 

Cost of natural gas

         389

 

         412

 

      2,042

 

       2,077

 

 

Cost of electric fuel and purchased power

         184

 

         203

 

        496

 

         566

 

Sempra Global and parent:

 

 

 

 

 

 

 

 

 

Cost of natural gas, electric fuel and purchased power

         331

 

         332

 

        945

 

         863

 

 

Other cost of sales

         256

 

         384

 

        796

 

       1,073

 

Other operating expenses

         699

 

         655

 

      2,065

 

       1,980

 

Litigation expense

          59

 

           12

 

          69

 

           43

 

Depreciation and amortization

         174

 

         163

 

        514

 

         491

 

Franchise fees and other taxes

          72

 

           67

 

        221

 

         208

 

 

Total operating expenses

      2,164

 

       2,228

 

      7,148

 

       7,301

 

Operating income

         499

 

         466

 

      1,180

 

       1,215

 

Other income, net

            5

 

         376

 

          61

 

         375

 

Interest income

          12

 

           34

 

          62

 

           73

 

Interest expense

         (68)

 

          (90)

 

       (204)

 

        (273)

 

Preferred dividends of subsidiaries

           (2)

 

            (2)

 

           (7)

 

            (7)

 

Income from continuing operations before income taxes and

 

 

 

 

 

 

 

 

 

equity in earnings of certain unconsolidated subsidiaries

         446

 

         784

 

      1,092

 

       1,383

 

Income tax expense

         135

 

         257

 

        341

 

         461

 

Equity in earnings of certain unconsolidated subsidiaries

          19

 

           16

 

          86

 

           40

 

Income from continuing operations

         330

 

         543

 

        837

 

         962

 

Discontinued operations, net of income tax

         (25)

 

         110

 

         (27)

 

         319

 

Net income

 $      305

 

 $       653

 

 $      810

 

 $    1,281

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 $     1.27

 

 $      2.11

 

 $     3.23

 

 $      3.76

 

 

Discontinued operations, net of income tax

       (0.10)

 

        0.43

 

      (0.11)

 

        1.25

 

 

Net income

 $     1.17

 

 $      2.54

 

 $     3.12

 

 $      5.01

 

Weighted-average number of shares outstanding (thousands)

  259,563

 

   257,487

 

  259,742

 

   255,834

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 $     1.24

 

 $      2.07

 

 $     3.16

 

 $      3.69

 

 

Discontinued operations, net of income tax

       (0.09)

 

        0.42

 

      (0.10)

 

        1.23

 

 

Net income

 $     1.15

 

 $      2.49

 

 $     3.06

 

 $      4.92

 

Weighted-average number of shares outstanding (thousands)

  264,279

 

   262,102

 

  264,416

 

   260,587

 

Dividends declared per share of common stock

 $     0.31

 

 $      0.30

 

 $     0.93

 

 $      0.90

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 







SEMPRA ENERGY

 

Table B

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

(Dollars in millions)

 

2007

 

2006

 

 

 

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 $         1,072

 

 $           920

 

 

Restricted cash

 

                  1

 

                  4

 

 

Trade accounts receivable, net

 

              764

 

           1,035

 

 

Income taxes receivable

 

                40

 

                  -

 

 

Deferred income taxes

 

              331

 

              270

 

 

Interest receivable

 

                  6

 

                40

 

 

Trading-related receivables and deposits, net

 

           2,629

 

           3,047

 

 

Derivative trading instruments

 

           3,241

 

           4,068

 

 

Commodities owned

 

           2,182

 

           1,845

 

 

Inventories

 

              325

 

              215

 

 

Regulatory assets

 

              109

 

              193

 

 

Other

 

              412

 

              317

 

 

 

Current assets of continuing operations

 

          11,112

 

          11,954

 

 

 

Current assets of discontinued operations

 

                18

 

                62

 

 

 

 

Total current assets

 

          11,130

 

          12,016

 

 

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 

              323

 

              353

 

 

Regulatory assets arising from pension and other postretirement

 

 

 

 

 

 

 

benefit obligations

 

              340

 

              356

 

 

Other regulatory assets

 

              462

 

              472

 

 

Nuclear decommissioning trusts

 

              745

 

              702

 

 

Investments

 

           1,121

 

           1,086

 

 

Sundry

 

              852

 

              789

 

 

 

 

Total investments and other assets

 

           3,843

 

           3,758

 

Property, plant and equipment, net

 

          14,329

 

          13,175

 

Total assets

 

 $       29,302

 

 $       28,949

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

 $         1,206

 

 $           252

 

 

Accounts payable

 

           1,196

 

           1,587

 

 

Due to unconsolidated affiliate

 

                60

 

                  -

 

 

Income taxes payable

 

 -

 

                  9

 

 

Trading-related payables

 

           2,751

 

           3,211

 

 

Derivative trading instruments

 

           2,074

 

           2,304

 

 

Commodities sold with agreement to repurchase

 

              678

 

              537

 

 

Dividends and interest payable

 

              153

 

              145

 

 

Regulatory balancing accounts, net

 

              482

 

              332

 

 

Fixed-price contracts and other derivatives

 

                62

 

                87

 

 

Current portion of long-term debt

 

                  7

 

              681

 

 

Other

 

           1,157

 

           1,197

 

 

 

Current liabilities of continuing operations

 

           9,826

 

          10,342

 

 

 

Current liabilities of discontinued operations

 

                  5

 

                  7

 

 

 

 

Total current liabilities

 

           9,831

 

          10,349

 

Long-term debt

 

           4,502

 

           4,525

 

 

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

 

Due to unconsolidated affiliate

 

              102

 

              162

 

 

Customer advances for construction

 

              131

 

              126

 

 

Pension and other postretirement benefit obligations, net of plan assets

 

              603

 

              609

 

 

Deferred income taxes

 

              519

 

              412

 

 

Deferred investment tax credits

 

                63

 

                67

 

 

Regulatory liabilities arising from removal obligations

 

           2,386

 

           2,330

 

 

Asset retirement obligations

 

           1,219

 

           1,128

 

 

Other regulatory liabilities

 

              233

 

              221

 

 

Fixed-price contracts and other derivatives

 

              326

 

              358

 

 

Deferred credits and other

 

              963

 

              961

 

 

 

 

Total deferred credits and other liabilities

 

           6,545

 

           6,374

 

Preferred stock of subsidiaries

 

              179

 

              179

 

Minority interests

 

              165

 

                11

 

Shareholders' equity

 

           8,080

 

           7,511

 

Total liabilities and shareholders' equity

 

 $       29,302

 

 $       28,949

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 




SEMPRA ENERGY

 

Table C

 

 

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

 

Nine months ended

 

 

 

 

September 30,

 

(Dollars in millions)

 

2007

 

2006

 

 

 

 

(Unaudited)

 

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

 

 $        810

 

 $    1,281

 

Adjustments to reconcile net income to net cash  

 

 

 

 

 

  provided by operating activities:

 

 

 

 

 

 

Discontinued operations

 

             27

 

        (319)

 

 

Depreciation and amortization

 

           514

 

         491

 

 

Deferred income taxes and investment tax credits

 

             42

 

          (56)

 

 

Equity in income of unconsolidated subsidiaries

 

            (75)

 

        (380)

 

 

Tax benefits from share-based awards

 

            (12)

 

          (18)

 

 

Other

 

             39

 

           77

 

Quasi-reorganization resolution

 

               -

 

           12

 

Net changes in other working capital components

 

           131

 

         263

 

Changes in other assets

 

             35

 

           41

 

Changes in other liabilities

 

             63

 

           12

 

 

Net cash provided by continuing operations

 

        1,574

 

      1,404

 

 

Net cash used in discontinued operations

 

             (3)

 

          (13)

 

 

Net cash provided by operating activities

 

        1,571

 

      1,391

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Expenditures for property, plant and equipment

 

       (1,357)

 

     (1,341)

 

Proceeds from sale of assets from continuing operations

 

             77

 

           36

 

Expenditures for investments

 

            (17)

 

        (126)

 

Distributions from investments

 

             13

 

         104

 

Purchases of nuclear decommissioning and other trust assets

 

          (498)

 

        (500)

 

Proceeds from sales by nuclear decommissioning and other trusts

 

           458

 

         476

 

Decrease (increase) in restricted cash balance

 

              3

 

        (153)

 

Dividends received from unconsolidated affiliates

 

               -

 

         410

 

Other

 

            (22)

 

          (27)

 

 

Net cash used in continuing operations

 

       (1,343)

 

     (1,121)

 

 

Net cash provided by discontinued operations

 

               -

 

         778

 

 

Net cash used in investing activities

 

       (1,343)

 

        (343)

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Common dividends paid

 

          (234)

 

        (203)

 

Issuances of common stock

 

             36

 

           89

 

Repurchases of common stock

 

          (161)

 

          (12)

 

Increase (decrease) in short-term debt, net

 

           954

 

        (632)

 

Payments on long-term debt

 

       (1,069)

 

          (81)

 

Issuance of long-term debt

 

           359

 

         422

 

Financing transaction related to Sempra Financial

 

               -

 

           83

 

Tax benefits from share-based awards

 

             12

 

           18

 

Other

 

             (2)

 

            (2)

 

 

Net cash used in continuing operations

 

          (105)

 

        (318)

 

 

Net cash provided by discontinued operations

 

               -

 

             2

 

 

Net cash used in financing activities

 

          (105)

 

        (316)

 

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

           123

 

         732

 

Cash and cash equivalents, January 1

 

           920

 

         769

 

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

 

             29

 

             -

 

Cash and cash equivalents, September 30

 

 $     1,072

 

 $    1,501

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 




SEMPRA ENERGY

 

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

(Dollars in millions)

2007

 

2006

 

2007

 

2006

 

Net Income

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $     123

 

 $      70

 

 $      236

 

 $     182

 

 

Southern California Gas

         63

 

         61

 

         172

 

        168

 

 

 

Total Sempra Utilities

       186

 

       131

 

         408

 

        350

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Global:

 

 

 

 

 

 

 

 

 

Sempra Commodities

         87

 

       105

 

         313

 

        290

 

 

Sempra Generation*

         58

 

       265

 

         122

 

        322

 

 

Sempra Pipelines & Storage*

         17

 

         19

 

           50

 

          58

 

 

Sempra LNG

          (4)

 

        (13)

 

          (27)

 

         (35)

 

 

 

Total Sempra Global

       158

 

       376

 

         458

 

        635

 

 

 

 

 

 

 

 

 

 

 

 

Parent & Other

        (14)

 

         36

 

          (29)

 

         (23)

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

       330

 

       543

 

         837

 

        962

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations, Net of Income Tax

        (25)

 

       110

 

          (27)

 

        319

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Income

 $     305

 

 $     653

 

 $      810

 

 $   1,281

 

 

 

 

 

 

 

 

 

 

 

 

* Excludes amounts now classified as discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

(Dollars in millions)

2007

 

2006

 

2007

 

2006

 

Capital Expenditures and Investments

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $     174

 

 $     157

 

 $      479

 

 $     880

 

 

Southern California Gas

       109

 

         91

 

         300

 

        284

 

 

   Total Sempra Utilities

       283

 

       248

 

         779

 

     1,164

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Global:

 

 

 

 

 

 

 

 

 

Sempra Commodities

         24

 

         13

 

           49

 

          43

 

 

Sempra Generation

           4

 

           2

 

            8

 

          37

 

 

Sempra Pipelines & Storage

         43

 

         66

 

         180

 

        212

 

 

Sempra LNG

       122

 

       121

 

         346

 

        466

 

 

   Total Sempra Global

       193

 

       202

 

         583

 

        758

 

 

 

 

 

 

 

 

 

 

 

 

Parent & Other

           4

 

           4

 

           12

 

       (455)

(1)

 

 

 

 

 

 

 

 

 

 

 

Consolidated Capital Expenditures and Investments

 $     480

 

 $     454

 

 $   1,374

 

 $   1,467

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

 

 

 

                        SEMPRA ENERGY

 

 

 

 

                               Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

SEMPRA UTILITIES

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

Revenues (Dollars in millions)

 

 

 

 

 

 

 

 

 

SDG&E (excludes intercompany sales)

 $     714

 

 $     700

 

 $   2,074

 

 $   2,078

 

 

SoCalGas (excludes intercompany sales)

 $     801

 

 $     794

 

 $   3,120

 

 $   3,112

 

 

 

 

 

 

 

 

 

 

 

 

Gas Sales (Bcf)

 

         65

 

         62

 

       290

 

       292

 

Transportation and Exchange (Bcf)

       178

 

       165

 

       421

 

       419

 

Total Deliveries (Bcf)

       243

 

       227

 

       711

 

       711

 

 

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 

 

 

 

    6,517

 

    6,446

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

    4,788

 

    5,022

 

  12,847

 

  12,897

 

Direct Access (Millions of kWhs)

       907

 

       915

 

    2,401

 

    2,569

 

Total Deliveries (Millions of kWhs)

    5,695

 

    5,937

 

  15,248

 

  15,466

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 

 

 

 

    1,363

 

    1,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

    5,718

 

    5,470

(1)

  15,243

 

  14,026

(1)

 

 

 

 

 

 

 

 

 

 

 

(1)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA PIPELINES & STORAGE

 

 

 

 

 

 

 

 

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

 

Natural Gas Sales (Bcf)

 

 

 

 

 

 

 

 

 

Argentina

 

       100

 

         89

 

       241

 

       208

 

 

Mexico

 

         13

 

         13

 

         35

 

         34

 

 

Chile

 

           1

 

           1

 

           1

 

           2

 

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

 

    1,589

 

    1,527

 

 

Mexico

 

 

 

 

 

         95

 

       100

 

 

Chile

 

 

 

 

 

         39

 

         39

 

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

Peru

 

    1,273

 

    1,166

 

    3,800

 

    3,488

 

 

Chile

 

       582

 

       385

 

    1,868

 

    1,562

 

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

       803

 

       780

 

 

Chile

 

 

 

 

 

       545

 

       532

 

 

 

 

 

 

 

 

 

 

 

 




SEMPRA ENERGY

 

Table E (Continued)

 

 

 

 

 

 

 

 

 

SEMPRA COMMODITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

Margin* (Dollars in millions)

2007

2006

 

2007

2006

 

Geographical:

 

 

 

 

 

 

 

North America

 $                     288

 $                 233

 

 $               780

 $               839

 

 

Europe/Asia

                         97

                    128

 

                  239

                 152

 

 

  Total

 $                     385

 $                 361

 

 $             1,019

 $               991

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

Gas

 $                     180

 $                 146

 

 $               336

 $               430

 

 

Power

                         91

                    116

 

                  290

                 327

 

 

Oil - Crude & Products

                         35

                      27

 

                  149

                 113

 

 

Metals

                         80

                      53

 

                  204

                   78

 

 

Other

                          (1)

                      19

 

                    40

                   43

 

 

  Total

 $                     385

 $                 361

 

 $             1,019

 $               991

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

(Dollars in millions)

2007

2006

 

2007

2006

 

 

Revenues

 $                     679

 $                 784

 

 $             1,901

 $            2,178

 

 

Cost of sales

                       (256)

                   (384)

 

                 (796)

              (1,073)

 

 

 

                        423

                    400

 

               1,105

               1,105

 

 

Other related costs

                        (38)

                     (39)

 

                   (86)

                (114)

 

 

Margin

 $                     385

 $                 361

 

 $             1,019

 $               991

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

Effect of EITF 02-3  (Dollars in millions)

2007

2006

 

2007

2006

 

 

Mark-to-Market Earnings *

 $                       76

 $                   86

 

 $               355

 $               329

 

 

Effect of EITF 02-3 **

                         11

                      19

 

                   (42)

                  (39)

 

 

GAAP Net Income

 $                       87

 $                 105

 

 $               313

 $               290

 

 

 

 

 

 

 

 

 

* Represents earnings from the fair market value of all commodities transactions.  This metric is a useful measurement of profitability because it simultaneously recognizes changes in the various components of transactions and reflects how the business is managed.

 

** Consists of the income statement effect of not recognizing changes in the fair market value of certain physical inventories, capacity contracts for transportation and storage, and derivative hedging activities related to synthetic fuels tax credits.

 

 

 

 

 

 

 

 

 

 

 

Fair

 

 

 

 

 

 

 

Market Value

Scheduled Maturity (in months)

 

Net Unrealized Revenue (Dollars in millions)

September 30, 2007

0 - 12

13 - 24

25 - 36

> 36

 

 

 

 

 

 

 

 

 

OTC Fair Value of forwards, swaps and options (1)

 $                  1,169

 $                 740

 $           170

 $                 89

 $               170

 

 

 

 

 

 

 

 

 

 

Maturity of OTC Fair Value - Cumulative Percentages

 

63.3%

77.8%

85.5%

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange Contracts (2)

                        176

                    143

                62

                    37

                  (66)

 

 

Total Net Unrealized Revenue at September 30, 2007

 $                  1,345

 $                 883

 $           232

 $               126

 $               104

 

 

 

 

 

 

 

 

 

 

Net Unrealized Revenue - Cumulative Percentages

 

65.7%

82.9%

92.3%

100.0%

 

 

 

 

 

 

 

 

 

(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts

 

(2) Cash received or (paid) associated with open Exchange Contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

December 31,

 

 

 

 

Credit Quality of Unrealized Trading Assets (net of margin)

2007

2006

 

 

 

 

Commodity Exchanges

11%

13%

 

 

 

 

Investment Grade

55%

57%

 

 

 

 

Below Investment Grade

34%

30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Adjusted Performance Indicators

Three months ended September 30,

 

Nine months ended September 30,

 

 (Mark-to-Market Basis)

2007

2006

 

2007

2006

 

VaR at 95% (Dollars in millions) (1)

 $               18.2

 $                11.1

 

 $              13.1

 $              15.8

 

VaR at 99% (Dollars in millions) (2)

 $               25.7

 $                15.6

 

 $              18.4

 $              22.3

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

Physical Statistics

2007

2006

 

2007

2006

 

Natural Gas (Bcf/Day)

14.2

11.8

 

12.8

12.0

 

Electric (Billions of kWhs)

132.2

126.1

 

377.7

350.0

 

Oil & Liquid Products (Millions Bbls/Day)

0.7

0.6

 

0.6

0.7

 

 

 

 

 

 

 

 

 

Exhibit 99.2

Exhibit 99.2




SEMPRA ENERGY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $ 716 

 

 $ 819 

 

 $ 679 

 

 $ 390 

 

 $ 81 

 

 $ - 

 

 $ (22)

 

 

 $ 2,663 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

  472 

 

  629 

 

  454 

 

  293 

 

  77 

 

  9 

 

  (3)

 

 

  1,931 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  2 

 

  2 

 

  52 

 

  1 

 

  - 

 

  - 

 

  2 

 

 

  59 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  75 

 

  71 

 

  6 

 

  16 

 

  3 

 

  - 

 

  3 

 

 

  174 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

  167 

 

  117 

 

  167 

 

  80 

 

  1 

 

  (9)

 

  (24)

 

 

  499 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

  8 

 

  - 

 

  - 

 

  8 

 

  (1)

 

  - 

 

  (10)

 

 

  5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

  175 

 

  117 

 

  167 

 

  88 

 

  - 

 

  (9)

 

  (34)

 

 

  504 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 

  24 

 

  10 

 

  14 

 

  (2)

 

  1 

 

  1 

 

  10 

 

 

  58 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

  28 

 

  44 

 

  66 

 

  32 

 

  1 

 

  (6)

 

  (30)

 

 

  135 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Certain Unconsolidated Subsidiaries

 

  - 

 

  - 

 

  - 

 

  - 

 

  19 

 

  - 

 

  - 

 

 

  19 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  (25)

 

 

  (25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $ 123 

 

 $ 63 

 

 $ 87 

 

 $ 58 

 

 $ 17 

 

 $ (4)

 

 $ (39)

 

 

 $ 305 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended September 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $ 703 

 

 $ 812 

 

 $ 784 

 

 $ 379 

 

 $ 79 

 

 $ (1)

 

 $ (62)

 

 

 $ 2,694 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

  481 

 

  611 

 

  594 

 

  288 

 

  73 

 

  10 

 

  (4)

 

 

  2,053 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  2 

 

  2 

 

  1 

 

  2 

 

  1 

 

  - 

 

  4 

 

 

  12 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  72 

 

  67 

 

  6 

 

  12 

 

  3 

 

  - 

 

  3 

 

 

  163 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

  148 

 

  132 

 

  183 

 

  77 

 

  2 

 

  (11)

 

  (65)

 

 

  466 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

  2 

 

  - 

 

  - 

 

  364 

 

  - 

 

  2 

 

  8 

 

 

  376 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

  150 

 

  132 

 

  183 

 

  441 

 

  2 

 

  (9)

 

  (57)

 

 

  842 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 

  27 

 

  12 

 

  17 

 

  (6)

 

  (2)

 

  1 

 

  9 

 

 

  58 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

  53 

 

  59 

 

  61 

 

  182 

 

  1 

 

  3 

 

  (102)

 

 

  257 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Certain Unconsolidated Subsidiaries

 

  - 

 

  - 

 

  - 

 

  - 

 

  16 

 

  - 

 

  - 

 

 

  16 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  110 

 

 

  110 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $ 70 

 

 $ 61 

 

 $ 105 

 

 $ 265 

 

 $ 19 

 

 $ (13)

 

 $ 146 

 

 

 $ 653 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $ 2,084 

 

 $ 3,168 

 

 $ 1,901 

 

 $ 1,064 

 

 $ 242 

 

 $ (11)

 

 $ (120)

 

 

 $ 8,328 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

  1,453 

 

  2,626 

 

  1,383 

 

  840 

 

  227 

 

  29 

 

  7 

 

 

  6,565 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  8 

 

  2 

 

  54 

 

  2 

 

  - 

 

  1 

 

  2 

 

 

  69 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  225 

 

  210 

 

  19 

 

  41 

 

  9 

 

  - 

 

  10 

 

 

  514 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

  398 

 

  330 

 

  445 

 

  181 

 

  6 

 

  (41)

 

  (139)

 

 

  1,180 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

  10 

 

  (4)

 

  - 

 

  6 

 

  (3)

 

  - 

 

  52 

 

 

  61 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

  408 

 

  326 

 

  445 

 

  187 

 

  3 

 

  (41)

 

  (87)

 

 

  1,241 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 

  71 

 

  32 

 

  16 

 

  (11)

 

  1 

 

  2 

 

  38 

 

 

  149 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

  101 

 

  122 

 

  156 

 

  76 

 

  (2)

 

  (16)

 

  (96)

 

 

  341 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Certain Unconsolidated Subsidiaries

 

  - 

 

  - 

 

  40 

 

  - 

 

  46 

 

  - 

 

  - 

 

 

  86 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  (27)

 

 

  (27)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $ 236 

 

 $ 172 

 

 $ 313 

 

 $ 122 

 

 $ 50 

 

 $ (27)

 

 $ (56)

 

 

 $ 810 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ended September 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $ 2,089 

 

 $ 3,145 

 

 $ 2,178 

 

 $ 1,032 

 

 $ 227 

 

 $ (21)

 

 $ (134)

 

 

 $ 8,516 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

  1,495 

 

  2,609 

 

  1,644 

 

  786 

 

  210 

 

  29 

 

  (6)

 

 

  6,767 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense (Adjustment)

 

  3 

 

  (3)

 

  8 

 

  30 

 

  3 

 

  - 

 

  2 

 

 

  43 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  219 

 

  200 

 

  19 

 

  34 

 

  9 

 

  - 

 

  10 

 

 

  491 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

  372 

 

  339 

 

  507 

 

  182 

 

  5 

 

  (50)

 

  (140)

 

 

  1,215 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

  15 

 

  (1)

 

  - 

 

  354 

 

  3 

 

  - 

 

  4 

 

 

  375 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

  387 

 

  338 

 

  507 

 

  536 

 

  8 

 

  (50)

 

  (136)

 

 

  1,590 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 

  79 

 

  31 

 

  48 

 

  (2)

 

  (2)

 

  3 

 

  50 

 

 

  207 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

  126 

 

  139 

 

  169 

 

  216 

 

  (8)

 

  (18)

 

  (163)

 

 

  461 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Certain Unconsolidated Subsidiaries

 

  - 

 

  - 

 

  - 

 

  - 

 

  40 

 

  - 

 

  - 

 

 

  40 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

  319 

 

 

  319 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $ 182 

 

 $ 168 

 

 $ 290 

 

 $ 322 

 

 $ 58 

 

 $ (35)

 

 $ 296 

 

 

 $ 1,281 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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