SE 8-K 08-09-2011



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):

August 9, 2011


  

  

SEMPRA ENERGY

(Exact name of registrant as specified in its charter)

  

  

CALIFORNIA

 

1-14201

 

33-0732627

(State or other jurisdiction of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

  

  

101 ASH STREET, SAN DIEGO, CALIFORNIA

 

92101

(Address of principal executive offices)

 

(Zip Code)

  

  


Registrant's telephone number, including area code

(619) 696-2000

  

  

 

(Former name or former address, if changed since last report.)

  

    





Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

[   ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 







  

FORM 8-K

  

Item 2.02  Results of Operations and Financial Condition.


The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


On August 9, 2011, Sempra Energy issued a press release announcing consolidated earnings of $511 million, or $2.12 per diluted share of common stock, for the second quarter of 2011. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.


Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Statements of Operations Data by Business Unit for the three months and six months ended June 30, 2011 and 2010. A copy of such information is attached as Exhibit 99.2.




Item 9.01  Financial Statements and Exhibits.

  

         Exhibits


          99.1

August 9, 2011 Sempra Energy News Release (including tables).


          99.2

Sempra Energy's Statements of Operations Data by Business Unit for the three months and six months ended June 30, 2011 and 2010.













 

  

SIGNATURE

  

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  

  

  

SEMPRA ENERGY
(Registrant)

  

  


Date: August 9, 2011

By:  /s/ Joseph A. Householder

 

Joseph A. Householder
Senior Vice President, Controller and Chief Accounting Officer

 

  







Exhibit 99.1

Exhibit 99.1




NEWS RELEASE



Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 340-8875

 

www.sempra.com

 

 

Financial Contacts:

Scott Tomayko/Victor Vilaplana

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com



SEMPRA ENERGY ANNOUNCES INCREASED SECOND-QUARTER 2011 EARNINGS


·

Excluding $277 Million Gain on South American Acquisition:

§

Second-Quarter Earnings per Share Rise 9 Percent

§

Company Reaffirms 2011 Earnings-per-Share Guidance of $4 to $4.30

·

Generation Unit Halfway Toward 2016 Target of 1,000 MW in Renewable Power Contracts


SAN DIEGO, Aug. 9, 2011 – Sempra Energy (NYSE: SRE) today reported second-quarter 2011 earnings of $511 million, or $2.12 per diluted share, up from earnings of $222 million, or $0.89 per diluted share, in the second quarter 2010.

This year’s second-quarter earnings included a gain of $277 million, or $1.15 per diluted share, reflecting the write-up in the value of the company’s original investments in Chile and Peru as a result of the acquisition of a controlling interest in those utilities earlier this year.   

Excluding this gain, Sempra Energy’s diluted earnings per share in the second quarter 2011 increased approximately 9 percent to $0.97 over second-quarter 2010 earnings per share of $0.89.

Sempra Energy’s earnings through the first six months of 2011 were $769 million, or $3.19 per diluted share, compared with $328 million, or $1.31 per diluted share, in 2010.   First-quarter 2010 earnings included an after-tax charge of $96 million, or $0.38 per diluted share, related to a litigation settlement.

 “Through the first half of the year, we are performing well across the board and are on track to meet our 2011 earnings guidance,” said Debra L. Reed, chief executive officer of Sempra Energy.  “Our utility and pipeline acquisitions are providing strong contributions to our earnings.  We also are making excellent progress on our major California utility projects and our build-out of contracted renewable energy infrastructure.”

As previously announced, Reed was elected chief executive officer of Sempra Energy June 27, succeeding Donald E. Felsinger.  Felsinger will continue to serve as executive chairman.

Sempra Energy today reaffirmed its 2011 earnings-per-share guidance of $4 to $4.30, excluding the $1.15 related to the company’s acquisition of controlling interests in the Chile and Peru utilities (earnings-per-share guidance of $5.15 to $5.45, on a GAAP basis).


SUBSIDIARY OPERATING RESULTS

San Diego Gas & Electric

In the second quarter 2011, earnings for San Diego Gas & Electric (SDG&E) were $71 million, compared with $75 million in the second quarter 2010.

For the first six months of 2011, SDG&E earned $160 million, up from $158 million in the same period last year.


Southern California Gas Co.

Southern California Gas Co. (SoCalGas) had second-quarter earnings of $59 million in 2011, compared with $69 million in the prior-year’s second quarter, due primarily to lower natural gas storage revenues, and higher employee benefit costs and other expenses.  

SoCalGas’ earnings in the first half of 2011 were $127 million, compared with $134 million in the first half of 2010.


Sempra Pipelines & Storage

In the second quarter 2011, Sempra Pipelines & Storage earned $337 million, up from $39 million in the prior year’s quarter.  Second-quarter 2011 results included a non-cash gain of $277 million from the write-up in the value of the original investments in Sempra Pipelines & Storage’s electric utilities in Chile and Peru and $14 million in higher earnings primarily from increased ownership in these companies.  

For the first six months of 2011, Sempra Pipelines & Storage’s earnings increased to $391 million from $77 million in the same period last year, due primarily to the gain on the Chile and Peru utility acquisitions and higher earnings from those utilities, as well as from a Mexican pipeline acquired in the second quarter 2010.


Sempra LNG

Sempra LNG’s earnings in the second quarter 2011 rose to $18 million from $13 million in last year’s second quarter, due primarily to payments by customers for contracted cargoes that were not delivered.

In the first half of 2011, Sempra LNG earned $51 million, compared with $45 million in the first half of 2010.


Sempra Generation

Sempra Generation’s second-quarter 2011 earnings were $50 million, compared with $52 million in last year’s second quarter.    

During the first six months of 2011, Sempra Generation had earnings of $94 million, up from $1 million during the same period last year.   In the first quarter 2010, Sempra Generation took a charge of $84 million related to a litigation settlement.

Last week, Sempra Generation announced a 25-year contract with Pacific Gas & Electric to supply renewable power from a 150-megawatt (MW) expansion of Sempra Generation’s Copper Mountain Solar complex in Nevada.  The contract is subject to approval by the California Public Utilities Commission.

Additionally, in July, Sempra Generation and BP Wind Energy commenced operations of the 250-MW Cedar Creek 2 Wind Farm in Colorado.  The renewable energy from the facility has been sold under a long-term power-purchase agreement to the Public Service Company of Colorado.


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 website 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 7671494.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2010 revenues of $9 billion.  The Sempra Energy companies’ nearly 16,000 employees serve about 26 million consumers worldwide.


NON-GAAP FINANCIAL MEASURES

The 9-percent increase in second-quarter 2011 earnings per share and the 2011 earnings-per-share guidance, excluding the gain on the Chile and Peru utility acquisitions, are non-GAAP financial measures.  Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the second-quarter financial tables.


###


This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” ”will,” “would,” ”could,” “should,” “potential,” “target,” “depends,” or similar expressions, or discussions of guidance, strategies, plans or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions and inflation, interest and exchange rates; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; 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 free-of-charge on the SEC’s website, www.sec.gov, and on the company’s website at www.sempra.com.


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









SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 June 30,

 

June 30,

(Dollars in millions, except per share amounts)

2011

 

2010

 

2011

 

2010

 

                      (unaudited)

REVENUES

 

 

 

 

 

 

 

Utilities

$       1,922

 

$       1,550

 

$       3,868

 

$       3,541

Energy-related businesses

500

 

458

 

988

 

1,001

    Total revenues

2,422

 

2,008

 

4,856

 

4,542

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

Utilities:

 

 

 

 

 

 

 

    Cost of natural gas

(403)

 

(381)

 

(1,045)

 

(1,184)

    Cost of electric fuel and purchased power

(397)

 

(129)

 

(568)

 

(277)

Energy-related businesses:

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(212)

 

(235)

 

(442)

 

(528)

    Other cost of sales

(32)

 

(20)

 

(55)

 

(45)

Litigation expense

(6)

 

1

 

(13)

 

(167)

Other operation and maintenance

(667)

 

(616)

 

(1,299)

 

(1,192)

Depreciation and amortization

(248)

 

(215)

 

(479)

 

(425)

Franchise fees and other taxes

(80)

 

(77)

 

(175)

 

(167)

Equity earnings (losses), before income tax

7

 

(8)

 

8

 

7

Remeasurement of equity method investments

277

 

-

 

277

 

-

Other income, net

31

 

8

 

74

 

16

Interest income

12

 

4

 

15

 

8

Interest expense

(118)

 

(103)

 

(226)

 

(212)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

586

 

237

 

928

 

376

Income tax expense

(92)

 

(59)

 

(201)

 

(117)

Equity earnings, net of income tax

8

 

27

 

39

 

46

Net income

502

 

205

 

766

 

305

Losses attributable to noncontrolling interests

12

 

20

 

8

 

28

Preferred dividends of subsidiaries

(3)

 

(3)

 

(5)

 

(5)

Earnings

$          511

 

$          222

 

$          769

 

$          328

 

 

 

 

 

 

 

 

Basic earnings per common share

$         2.14

 

$         0.90

 

$         3.21

 

$         1.33

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

239,415

 

246,784

 

239,769

 

246,435

 

 

 

 

 

 

 

 

Diluted earnings per common share

$         2.12

 

$         0.89

 

$         3.19

 

$         1.31

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

240,761

 

249,727

 

241,154

 

249,835

Dividends declared per share of common stock

$         0.48

 

$         0.39

 

$         0.96

 

$         0.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SEMPRA ENERGY EARNINGS TO SEMPRA ENERGY EARNINGS EXCLUDING GAIN

FROM REMEASUREMENT OF EQUITY METHOD INVESTMENTS AND LITIGATION SETTLEMENT (Unaudited)

 

 

 

 

 

 

 

 

Sempra Energy Earnings, Earnings Per Share and 2011 earnings per share guidance excluding a $277 million gain from the remeasurement of equity method investments in Chilquinta Energía and Luz del Sur in the second quarter of 2011 and a $96 million charge for a litigation settlement in the first quarter of 2010 are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). Statistics using these amounts, including percentage changes from period to period, also result in non-GAAP measures. Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of Sempra Energy's business operations from 2011 to 2010 and to future periods. Accordingly, 2011 guidance of $4 to $4.30 per diluted share excludes the second quarter gain of $277 million, or $1.15 per diluted share, based on shares outstanding through June 30, 2011. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

(Dollars in millions, except per share amounts)

2011

 

2010

 

2011

 

2010

Sempra Energy Earnings (GAAP)

$             511

 

$             222

 

$             769

 

$             328

Less: Remeasurement Gain in 2011

(277)

 

-

 

(277)

 

-

Add: Litigation Settlement Charge in 2010

-

 

-

 

-

 

96

Sempra Energy Earnings Excluding Gain and Litigation Settlement Charge

$             234

 

$             222

 

$             492

 

$             424

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

Sempra Energy Earnings (GAAP)

$            2.12

(1)

$            0.89

 

$            3.19

(1)

$            1.31

Sempra Energy Earnings Excluding Gain and Litigation Settlement Charge

$            0.97

(2)

$            0.89

 

$            2.04

(2)

$            1.69

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

240,761

 

249,727

 

241,154

 

249,835

 

 

 

 

 

 

 

 

(1) Percentage increases from second quarter and year-to-date 2010 earnings per share were 138% and 144%, respectively.

 

 

(2) Percentage increases from second quarter and year-to-date 2010 earnings per share were 9% and 21%, respectively.

 

 

 

 






SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Dollars in millions)

2011

 

2010(1)

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 $                 392

 

 $                 912

 

Restricted cash

                   188

 

                   131

 

Accounts receivable

                 1,176

 

                 1,032

 

Due from unconsolidated affiliates

                        -

 

                     34

 

Income taxes receivable

                   243

 

                   248

 

Deferred income taxes

                        -

 

                     75

 

Inventories

                   211

 

                   258

 

Regulatory assets

                     69

 

                     90

 

Fixed-price contracts and other derivatives

                     87

 

                     81

 

Settlement receivable related to wildfire litigation

                        -

 

                   300

 

Other

                   185

 

                   192

 

 

 

Total current assets

                 2,551

 

                 3,353

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

Restricted cash

                       2

 

                     27

 

Regulatory assets arising from pension and other postretirement

 

 

 

 

    benefit obligations

                   868

 

                   869

 

Regulatory assets arising from wildfire litigation costs

                   397

 

                   364

 

Other regulatory assets

                   948

 

                   934

 

Nuclear decommissioning trusts

                   808

 

                   769

 

Investment in RBS Sempra Commodities LLP

                   439

 

                   787

 

Other investments

                 1,513

 

                 2,164

 

Goodwill

                 1,059

 

                     87

 

Intangible assets

                   450

 

                   453

 

Sundry

                   645

 

                   600

 

 

 

Total investments and other assets

                 7,129

 

                 7,054

Property, plant and equipment, net

               22,156

 

               19,876

Total assets

 $            31,836

 

 $            30,283

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 $                 453

 

 $                 158

 

Accounts payable

                   915

 

                   864

 

Due to unconsolidated affiliates

                        -

 

                     36

 

Deferred income taxes

                     31

 

                      -   

 

Dividends and interest payable

                   217

 

                   188

 

Accrued compensation and benefits

                   269

 

                   311

 

Regulatory balancing accounts, net

                   277

 

                   241

 

Current portion of long-term debt

                   144

 

                   349

 

Fixed-price contracts and other derivatives

                     85

 

                   106

 

Customer deposits

                   135

 

                   129

 

Reserve for wildfire litigation

                   422

 

                   639

 

Other

                   627

 

                   765

 

 

 

Total current liabilities

                 3,575

 

                 3,786

Long-term debt

                 9,648

 

                 8,980

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

Customer advances for construction

                   139

 

                   154

 

Pension and other postretirement benefit obligations, net of plan assets

                 1,106

 

                 1,105

 

Deferred income taxes

                 1,826

 

                 1,561

 

Deferred investment tax credits

                     48

 

                     50

 

Regulatory liabilities arising from removal obligations

                 2,692

 

                 2,630

 

Asset retirement obligations

                 1,490

 

                 1,449

 

Other regulatory liabilities

                   115

 

                   138

 

Fixed-price contracts and other derivatives

                   279

 

                   290

 

Deferred credits and other

                   867

 

                   823

 

 

 

Total deferred credits and other liabilities

                 8,562

 

                 8,200

Contingently redeemable preferred stock of subsidiary

                     79

 

                     79

Equity:

 

 

 

 

Total Sempra Energy shareholders' equity

                 9,579

 

                 9,027

 

Preferred stock of subsidiaries

                     20

 

                   100

 

Other noncontrolling interests

                   373

 

                   111

 

 

 

Total equity

                 9,972

 

                 9,238

Total liabilities and equity

 $            31,836

 

 $            30,283

 

 

 

 

 

 

 

(1)

Derived from audited financial statements.






SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Six months ended June 30,

(Dollars in millions)

 

2011

 

2010

 

 

 

      (unaudited)

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

$                 766

 

$                 305

Adjustments to reconcile net income to net cash provided

 

 

 

 

  by operating activities:

 

 

 

 

 

Depreciation and amortization

 

479

 

425

 

Deferred income taxes and investment tax credits

 

147

 

96

 

Equity earnings

 

(47)

 

(53)

 

Remeasurement of equity method investments

 

(277)

 

-

 

Fixed-price contracts and other derivatives

 

(2)

 

14

 

Other

 

(23)

 

(6)

Net change in other working capital components

 

53

 

294

Distributions from RBS Sempra Commodities LLP

 

53

 

198

Changes in other assets

 

2

 

53

Changes in other liabilities

 

(12)

 

(19)

 

Net cash provided by operating activities

 

1,139

 

1,307

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

(1,225)

 

(839)

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

 

(682)

 

(370)

Distributions from RBS Sempra Commodities LLP

 

276

 

-

Distributions from other investments

 

29

 

36

Purchases of nuclear decommissioning and other trust assets

 

(97)

 

(159)

Proceeds from sales by nuclear decommissioning and other trusts

 

94

 

159

Decrease in restricted cash

 

388

 

45

Increase in restricted cash

 

(420)

 

(40)

Other

 

(16)

 

1

 

Net cash used in investing activities

 

(1,653)

 

(1,167)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(210)

 

(172)

Redemption of subsidiary preferred stock

 

(80)

 

-

Preferred dividends paid by subsidiaries

 

(5)

 

(5)

Issuances of common stock

 

20

 

22

Repurchases of common stock

 

(18)

 

(2)

Issuances of debt (maturities greater than 90 days)

 

870

 

270

Payments on debt (maturities greater than 90 days)

 

(270)

 

(710)

(Decrease) increase in short-term debt, net

 

(319)

 

534

Other

 

10

 

1

 

Net cash used in financing activities

 

(2)

 

(62)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(4)

 

-

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(520)

 

78

Cash and cash equivalents, January 1

 

912

 

110

Cash and cash equivalents, June 30

 

$                 392

 

$                 188

 

 

 

 

 

 






SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

(Dollars in millions)

2011

 

2010

 

2011

 

2010

 

                        (unaudited)

Earnings (Losses)

 

 

 

 

 

 

 

San Diego Gas & Electric

$       71

 

$       75

 

$     160

 

$     158

Southern California Gas

59

 

69

 

127

 

134

Sempra Generation

50

 

52

 

94

 

1

Sempra Pipelines & Storage

337

 

39

 

391

 

77

Sempra LNG

18

 

13

 

51

 

45

Parent & Other

(24)

 

(26)

 

(54)

 

(87)

Earnings

$     511

 

$     222

 

$     769

 

$     328

 

 

 

 

 

 

 

 

 

 Three months ended  

 

Six months ended

 

June 30,

 

June 30,

(Dollars in millions)

2011

 

2010

 

2011

 

2010

 

                        (unaudited)

Capital Expenditures and Investments

 

 

 

 

 

 

 

San Diego Gas & Electric

$     366

 

$     232

 

$     714

 

$     522

Southern California Gas

157

 

102

 

325

 

216

Sempra Generation

24

 

1

 

76

 

5

Sempra Pipelines & Storage

745

 

350

 

785

 

460

Sempra LNG

3

 

2

 

6

 

4

Parent & Other

1

 

2

 

1

 

2

Consolidated Capital Expenditures and Investments

$   1,296

 

$     689

 

$   1,907

 

$   1,209

 

 

 

 

 

 

 

 






SEMPRA ENERGY

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

UTILITIES

 

2011

 

2010

 

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

Sempra Utilities - SDG&E and SoCalGas

 

 

 

 

 

 

 

 

 

Gas Sales (bcf) (1)

 

       85

 

       85

 

 

      223

 

      217

Transportation (bcf) (1)

 

      112

 

      113

 

 

      235

 

      230

Total Deliveries (bcf) (1)

 

      197

 

      198

 

 

      458

 

      447

 

 

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 

 

 

 

 

 

   6,644

 

   6,622

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs) (1)

 

   3,825

 

   3,763

 

 

   7,970

 

   7,818

Direct Access (Millions of kWhs)

 

      782

 

      764

 

 

   1,568

 

   1,484

Total Deliveries (Millions of kWhs) (1)

 

   4,607

 

   4,527

 

 

   9,538

 

   9,302

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 

 

 

 

 

 

   1,390

 

   1,383

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Pipelines & Storage - Utilities (2)

 

 

 

 

 

 

 

 

 

Natural Gas Sales (bcf)

 

 

 

 

 

 

 

 

 

 

Argentina

 

       87

 

       83

 

 

      157

 

      147

 

Mexico

 

         5

 

         5

 

 

       11

 

       11

 

Mobile Gas

 

         9

 

         8

 

 

       19

 

       18

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

 

 

   1,781

 

   1,731

 

Mexico

 

 

 

 

 

 

       89

 

       90

 

Mobile Gas

 

 

 

 

 

 

       90

 

       90

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

Peru

 

   1,570

 

   1,483

 

 

   3,164

 

   2,962

 

Chile

 

      604

 

      570

 

 

   1,284

 

   1,170

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

 

      907

 

      877

 

Chile

 

 

 

 

 

 

      603

 

      586

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes intercompany sales

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

 

 

 

 

 

 

 

 

 

 

 

 

ENERGY - RELATED BUSINESSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Generation

 

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

  3,518

 

   5,553

 

 

  7,641

 

 10,505

 

 

 

 

 

 

 

 

 

 

 

 




Exhibit 99.2



Exhibit 99.2


         SEMPRA ENERGY

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 697 

 

 $ 876 

 

 $ 268 

 

 $ 445 

 

 $ 159 

 

 $ (23)

 

 

 $ 2,422 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

  (477)

 

  (690)

 

  (184)

 

  (335)

 

  (106)

 

  1 

 

 

  (1,791)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  (2)

 

  (1)

 

  (1)

 

  - 

 

  (2)

 

  - 

 

 

  (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  (105)

 

  (82)

 

  (18)

 

  (26)

 

  (12)

 

  (5)

 

 

  (248)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

 

  - 

 

  - 

 

  (1)

 

  10 

 

  - 

 

  (2)

 

 

  7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

  13 

 

  3 

 

  1 

 

  277 

  (1)

  1 

 

  13 

 

 

  308 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

  126 

 

  106 

 

  65 

 

  371 

 

  40 

 

  (16)

 

 

  692 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense(3)

 

  (32)

 

  (19)

 

  (3)

 

  (12)

 

  (10)

 

  (33)

 

 

  (109)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

  (42)

 

  (28)

 

  (12)

 

  (22)

 

  (12)

 

  24 

 

 

  (92)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

  - 

 

  - 

 

  - 

 

  8 

 

  - 

 

  - 

 

 

  8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses (Earnings) Attributable to Noncontrolling Interests

 

  19 

 

  - 

 

  - 

 

  (8)

 

  - 

 

  1 

 

 

  12 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $ 71 

 

 $ 59 

 

 $ 50 

 

 $ 337 

 

 $ 18 

 

 $ (24)

 

 

 $ 511 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 692 

 

 $ 834 

 

 $ 268 

 

 $ 75 

 

 $ 166 

 

 $ (27)

 

 

 $ 2,008 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

  (458)

 

  (638)

 

  (197)

 

  (54)

 

  (123)

 

  12 

 

 

  (1,458)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Adjustment (Expense)

 

  7 

 

  (1)

 

  (2)

 

  (1)

 

  (1)

 

  (1)

 

 

  1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  (95)

 

  (77)

 

  (16)

 

  (10)

 

  (13)

 

  (4)

 

 

  (215)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

 

  - 

 

  - 

 

  (1)

 

  12 

 

  - 

 

  (19)

 

 

  (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Expense) Income, Net

 

  (16)

 

  2 

 

  6 

 

  (1)

 

  - 

 

  17 

 

 

  8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

  130 

 

  120 

 

  58 

 

  21 

 

  29 

 

  (22)

 

 

  336 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

  (32)

 

  (17)

 

  - 

 

  (2)

 

  (12)

 

  (39)

 

 

  (102)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

  (44)

 

  (34)

 

  (6)

 

  (7)

 

  (4)

 

  36 

 

 

  (59)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

  - 

 

  - 

 

  - 

 

  27 

 

  - 

 

  - 

 

 

  27 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses (Earnings) Attributable to Noncontrolling Interests

 

  21 

 

  - 

 

  - 

 

  - 

 

  - 

 

  (1)

 

 

  20 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $ 75 

 

 $ 69 

 

 $ 52 

 

 $ 39 

 

 $ 13 

 

 $ (26)

 

 

 $ 222 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 








         SEMPRA ENERGY

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 1,537 

 

 $ 1,932 

 

 $ 537 

 

 $ 554 

 

 $ 345 

 

 $ (49)

 

 

 $ 4,856 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

  (1,048)

 

  (1,546)

 

  (371)

 

  (404)

 

  (225)

 

  10 

 

 

  (3,584)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  (5)

 

  (1)

 

  (2)

 

  - 

 

  (4)

 

  (1)

 

 

  (13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  (208)

 

  (163)

 

  (37)

 

  (39)

 

  (25)

 

  (7)

 

 

  (479)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

  - 

 

  - 

 

  - 

 

  19 

 

  - 

 

  (11)

 

 

  8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

  29 

 

  6 

 

  1 

 

  277 

  (1)

  3 

 

  35 

 

 

  351 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

  305 

 

  228 

 

  128 

 

  407 

 

  94 

 

  (23)

 

 

  1,139 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense(3)

 

  (69)

 

  (36)

 

  - 

 

  (18)

 

  (20)

 

  (73)

 

 

  (216)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

  (91)

 

  (65)

 

  (34)

 

  (29)

 

  (23)

 

  41 

 

 

  (201)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

  - 

 

  - 

 

  - 

 

  39 

 

  - 

 

  - 

 

 

  39 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses (Earnings) Attributable to Noncontrolling Interests

 

  15 

 

  - 

 

  - 

 

  (8)

 

  - 

 

  1 

 

 

  8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $ 160 

 

 $ 127 

 

 $ 94 

 

 $ 391 

 

 $ 51 

 

 $ (54)

 

 

 $ 769 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 1,434 

 

 $ 2,016 

 

 $ 586 

 

 $ 185 

 

 $ 371 

 

 $ (50)

 

 

 $ 4,542 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

  (963)

 

  (1,611)

 

  (450)

 

  (132)

 

  (259)

 

  22 

 

 

  (3,393)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  - 

 

  (1)

 

  (141)

 

  (1)

 

  (2)

 

  (22)

 

 

  (167)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  (187)

 

  (152)

 

  (31)

 

  (21)

 

  (25)

 

  (9)

 

 

  (425)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

 

  - 

 

  - 

 

  (1)

 

  22 

 

  - 

 

  (14)

 

 

  7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Expense) Income, Net

 

  (16)

 

  6 

 

  8 

 

  (2)

 

  - 

 

  20 

 

 

  16 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

  268 

 

  258 

 

  (29)

 

  51 

 

  85 

 

  (53)

 

 

  580 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

  (64)

 

  (34)

 

  (2)

 

  (7)

 

  (24)

 

  (78)

 

 

  (209)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

  (75)

 

  (90)

 

  32 

 

  (13)

 

  (16)

 

  45 

 

 

  (117)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

  - 

 

  - 

 

  - 

 

  46 

 

  - 

 

  - 

 

 

  46 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses (Earnings) Attributable to Noncontrolling Interests

 

  29 

 

  - 

 

  - 

 

  - 

 

  - 

 

  (1)

 

 

  28 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $ 158 

 

 $ 134 

 

 $ 1 

 

 $ 77 

 

 $ 45 

 

 $ (87)

 

 

 $ 328 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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