PE/SCG 8-02-07 8-K



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 2, 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 August 2, 2007, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated net income of $277 million, or $1.05 per diluted share of common stock, for the second 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 six months ended June 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

August 2, 2007 Sempra Energy News Release (including tables)


          99.2

Sempra Energy's Income Statement Data by Business Unit for the three months and six months ended June 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: August 2, 2007

By: /S/ Dennis V. Arriola

 

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

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: August 2, 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’S INCOME FROM CONTINUING OPERATIONS RISES SHARPLY IN SECOND QUARTER 2007



SAN DIEGO, Aug. 2, 2007 – Sempra Energy (NYSE: SRE) today reported income from continuing operations of $280 million, or $1.06 per diluted share, in the second quarter 2007, up 51 percent from $185 million, or $0.71 per diluted share, in the year-ago period.  Second-quarter 2007 net income was $277 million, or $1.05 per diluted share, compared with net income of $373 million, or $1.43 per diluted share, in last year’s second quarter, which included $188 million, or $0.72 per diluted share, of income primarily from asset sales.

For the first six months of 2007, Sempra Energy’s income from continuing operations was $507 million, or $1.92 per diluted share, an increase of 21 percent over the $419 million, or $1.61 per diluted share, earned during the same period last year.  Net income for the first half of 2007 was $505 million, or $1.91 per diluted share, compared with $628 million, or $2.42 per diluted share, in the first six months of 2006.  


-more-

“I am pleased with our strong operating results through the first half of the year,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “All of our businesses are performing well, putting us on target to meet our 2007 financial plans.  As anticipated, we are beginning to see the strong year-to-date economic performance of our commodities business in our second-quarter results.  Under current accounting rules, our reported results in the first quarter did not reflect this business’ mark-to-market profits on transportation and storage services related to natural gas contracts.”  

Sempra Energy’s revenues increased in the second quarter 2007 to $2.7 billion from $2.5 billion in the prior-year’s quarter, due primarily to higher commodity prices.

On July 9, 2007, Sempra Energy announced a joint venture with The Royal Bank of Scotland to expand Sempra Energy’s commodities business globally.  The joint venture, called RBS Sempra Commodities LLP, will absorb the operations of Sempra Commodities.  RBS will provide the joint venture with all growth capital, credit and liquidity.  As a result of this transaction, Sempra Energy expects to receive a majority of the joint venture’s profits until the business almost doubles its 2006 record earnings.  Upon closing, Sempra Energy will receive net proceeds of $1 billion to $1.2 billion in cash and will keep $1.3 billion invested in the joint venture.

Following the expected close of the transaction in the fourth quarter 2007, Sempra Energy intends to increase its quarterly dividend to $0.35, or $1.40 annually, from the current quarterly dividend of $0.31, or $1.24 annually, and maintain a targeted dividend payout ratio of 35 percent to 40 percent of net income.  Additionally, the company intends to begin purchasing $1.5 billion to $2 billion of its common stock. 


OPERATING HIGHLIGHTS

Sempra Utilities

Second-quarter net income for Sempra Utilities – San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) – was $105 million in 2007, compared with $123 million in 2006.

-more-

SDG&E earned second-quarter 2007 net income of $51 million, compared with $65 million in the year-ago period.  In the most recent quarter, SDG&E benefited from higher transmission earnings, while, in last year’s second quarter, the utility realized a $16-million benefit from the favorable resolution of certain regulatory and tax issues and a positive litigation-reserve adjustment.

SDG&E recently energized its Otay-Metro Powerloop electric-transmission project, a new 52-mile loop around the center of San Diego County designed to improve electric reliability in the region.   

Southern California Gas Co.’s net income in the second quarter 2007 was $54 million, compared with $58 million in the same quarter last year.


Sempra Commodities

Sempra Commodities’ second-quarter 2007 net income more than doubled to $155 million from $69 million in the second quarter 2006, due primarily to improved margins in all its commodity product lines.  During the recent quarter, Sempra Commodities benefited from the recognition of a portion of the profits that were earned in the first quarter 2007 from natural gas storage and transportation contracts, but deferred under current accounting rules.


Sempra Generation

In the second quarter 2007, Sempra Generation’s net income was $10 million, compared with $16 million in last year’s second quarter.  The change was due primarily to mark-to-market losses on forward contracts with Sempra Commodities.

During the quarter, Sempra Generation announced its entry into the renewable-energy business with the acquisition of the development assets associated with the proposed 250-megawatt La Rumorosa Wind Power project in Baja California, Mexico.  




-more-

Sempra Pipelines & Storage

Second-quarter net income for Sempra Pipelines & Storage in 2007 was $17 million, compared with $28 million in 2006.  Prior-year results were impacted favorably by the resolution of tax issues.


Sempra LNG

Sempra LNG reported a net loss of $13 million in the second quarter 2007, down from a net loss of $17 million in the prior-year’s quarter.  


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 2402925.

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.

Income-statement information by business unit is available on Sempra Energy’s Web site at http://www.sempra.com/downloads/2Q2007.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 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; a nd 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.

-more-

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

 

Six months ended

 

 

 

June 30,

 

June 30,

 

(Dollars in millions, except per share amounts)

2007

 

2006

 

2007

 

2006

 

 

 

(Unaudited)

 

Operating revenues

 

 

 

 

 

 

 

 

Sempra Utilities

 $   1,620

 

 $    1,568

 

 $   3,679

 

 $    3,696

 

Sempra Global and parent

      1,041

 

         918

 

      1,986

 

       2,126

 

 

Total operating revenues

      2,661

 

       2,486

 

      5,665

 

       5,822

 

Operating expenses

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

 

Cost of natural gas

         603

 

         535

 

      1,653

 

       1,665

 

 

Cost of electric fuel and purchased power

         163

 

         153

 

        312

 

         363

 

Sempra Global and parent:

 

 

 

 

 

 

 

 

 

Cost of natural gas, electric fuel and purchased power

         278

 

         233

 

        614

 

         531

 

 

Other cost of sales

         221

 

         313

 

        540

 

         689

 

Other operating expenses

         743

 

         680

 

      1,376

 

       1,356

 

Depreciation and amortization

         171

 

         171

 

        340

 

         328

 

Franchise fees and other taxes

          68

 

           64

 

        149

 

         141

 

 

Total operating expenses

      2,247

 

       2,149

 

      4,984

 

       5,073

 

Operating income

         414

 

         337

 

        681

 

         749

 

Other income (expense), net

          45

 

            (5)

 

          56

 

            (1)

 

Interest income

          24

 

           25

 

          50

 

           39

 

Interest expense

         (66)

 

          (87)

 

       (136)

 

        (183)

 

Preferred dividends of subsidiaries

           (3)

 

            (3)

 

           (5)

 

            (5)

 

Income from continuing operations before income taxes and

 

 

 

 

 

 

 

 

 

equity in earnings of certain unconsolidated subsidiaries

         414

 

         267

 

        646

 

         599

 

Income tax expense

         143

 

           96

 

        206

 

         204

 

Equity in earnings of certain unconsolidated subsidiaries

            9

 

           14

 

          67

 

           24

 

Income from continuing operations

         280

 

         185

 

        507

 

         419

 

Discontinued operations, net of income tax

           (3)

 

         188

 

           (2)

 

         209

 

Net income

 $      277

 

 $       373

 

 $      505

 

 $       628

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 $     1.08

 

 $      0.73

 

 $     1.95

 

 $      1.64

 

 

Discontinued operations, net of income tax

       (0.01)

 

        0.73

 

      (0.01)

 

        0.82

 

 

Net income

 $     1.07

 

 $      1.46

 

 $     1.94

 

 $      2.46

 

Weighted-average number of shares outstanding (thousands)

  260,198

 

   255,728

 

  259,830

 

   254,996

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 $     1.06

 

 $      0.71

 

 $     1.92

 

 $      1.61

 

 

Discontinued operations, net of income tax

       (0.01)

 

        0.72

 

      (0.01)

 

        0.81

 

 

Net income

 $     1.05

 

 $      1.43

 

 $     1.91

 

 $      2.42

 

Weighted-average number of shares outstanding (thousands)

  264,963

 

   260,320

 

  264,518

 

   259,804

 

Dividends declared per share of common stock

 $     0.31

 

 $      0.30

 

 $     0.62

 

 $      0.60

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

(Dollars in millions)

 

2007

 

2006

 

 

 

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 $         1,352

 

 $           920

 

 

Restricted cash

 

                  1

 

                  4

 

 

Accounts receivable

 

              772

 

           1,035

 

 

Deferred income taxes

 

              349

 

              270

 

 

Interest receivable

 

                  5

 

                40

 

 

Trading-related receivables and deposits, net

 

           2,346

 

           3,047

 

 

Derivative trading instruments

 

           3,197

 

           4,068

 

 

Commodities owned

 

           1,763

 

           1,845

 

 

Inventories

 

              167

 

              215

 

 

Regulatory assets

 

              136

 

              193

 

 

Other

 

              442

 

              317

 

 

 

Current assets of continuing operations

 

          10,530

 

          11,954

 

 

 

Current assets of discontinued operations

 

                58

 

                62

 

 

 

 

Total current assets

 

          10,588

 

          12,016

 

 

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 

              331

 

              353

 

 

Regulatory assets arising from pension and other postretirement

 

 

 

 

 

 

 

benefit obligations

 

              373

 

              356

 

 

Other regulatory assets

 

              445

 

              472

 

 

Nuclear decommissioning trusts

 

              728

 

              702

 

 

Investments

 

           1,122

 

           1,086

 

 

Sundry

 

              840

 

              789

 

 

 

 

Total investments and other assets

 

           3,839

 

           3,758

 

Property, plant and equipment, net

 

          14,050

 

          13,175

 

Total assets

 

 $       28,477

 

 $       28,949

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

 $           627

 

 $           252

 

 

Accounts payable

 

           1,318

 

           1,587

 

 

Due to unconsolidated affiliate

 

                60

 

                  -

 

 

Income taxes payable

 

                28

 

                  9

 

 

Trading-related payables

 

           2,531

 

           3,211

 

 

Derivative trading instruments

 

           2,243

 

           2,304

 

 

Commodities sold with agreement to repurchase

 

              407

 

              537

 

 

Dividends and interest payable

 

              143

 

              145

 

 

Regulatory balancing accounts, net

 

              555

 

              332

 

 

Fixed-price contracts and other derivatives

 

                53

 

                87

 

 

Current portion of long-term debt

 

              340

 

              681

 

 

Other

 

           1,157

 

           1,197

 

 

 

Current liabilities of continuing operations

 

           9,462

 

          10,342

 

 

 

Current liabilities of discontinued operations

 

                  5

 

                  7

 

 

 

 

Total current liabilities

 

           9,467

 

          10,349

 

Long-term debt

 

           4,219

 

           4,525

 

 

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

 

Due to unconsolidated affiliate

 

              102

 

              162

 

 

Customer advances for construction

 

              127

 

              126

 

 

Pension and other postretirement benefit obligations, net of plan assets

 

              620

 

              609

 

 

Deferred income taxes

 

              437

 

              412

 

 

Deferred investment tax credits

 

                64

 

                67

 

 

Regulatory liabilities arising from removal obligations

 

           2,382

 

           2,330

 

 

Asset retirement obligations

 

           1,204

 

           1,128

 

 

Other regulatory liabilities

 

              228

 

              221

 

 

Fixed-price contracts and other derivatives

 

              343

 

              358

 

 

Deferred credits and other

 

              940

 

              961

 

 

 

 

Total deferred credits and other liabilities

 

           6,447

 

           6,374

 

Preferred stock of subsidiaries

 

              179

 

              179

 

Minority interests

 

              176

 

                11

 

Shareholders' equity

 

           7,989

 

           7,511

 

Total liabilities and shareholders' equity

 

 $       28,477

 

 $       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

 

 

 

 

 

 

Six months ended

 

 

 

 

June 30,

 

(Dollars in millions)

 

2007

 

2006

 

 

 

 

(Unaudited)

 

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

 

 $        505

 

 $      628

 

Adjustments to reconcile net income to net cash  

 

 

 

 

 

  provided by operating activities:

 

 

 

 

 

 

Discontinued operations

 

              2

 

        (209)

 

 

Depreciation and amortization

 

           340

 

         328

 

 

Deferred income taxes and investment tax credits

 

            (39)

 

        (216)

 

 

Equity in income of unconsolidated subsidiaries

 

            (55)

 

            (6)

 

 

Other

 

            (16)

 

           82

 

Net changes in other working capital components

 

           918

 

           79

 

Changes in other assets

 

             33

 

            (2)

 

Changes in other liabilities

 

            (10)

 

           32

 

 

Net cash provided by continuing operations

 

        1,678

 

         716

 

 

Net cash provided by (used in) discontinued operations

 

             (3)

 

           76

 

 

Net cash provided by operating activities

 

        1,675

 

         792

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Expenditures for property, plant and equipment

 

          (889)

 

        (893)

 

Proceeds from sale of assets from continuing operations

 

             61

 

           24

 

Expenditures for investments

 

             (5)

 

        (120)

 

Distributions from investments

 

              -

 

         104

 

Purchases of nuclear decommissioning and other trust assets

 

          (341)

 

        (398)

 

Proceeds from sales by nuclear decommissioning and other trusts

 

           300

 

         371

 

Dividends received from unconsolidated affiliates

 

              4

 

             3

 

Other

 

             (9)

 

            (5)

 

 

Net cash used in continuing operations

 

          (879)

 

        (914)

 

 

Net cash provided by discontinued operations

 

               -

 

         560

 

 

Net cash used in investing activities

 

          (879)

 

        (354)

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Common dividends paid

 

          (152)

 

        (134)

 

Issuances of common stock

 

             28

 

           46

 

Repurchases of common stock

 

               -

 

          (12)

 

Increase (decrease) in short-term debt, net

 

           374

 

        (668)

 

Payments on long-term debt

 

          (654)

 

          (64)

 

Issuance of long-term debt

 

              4

 

         253

 

Financing transaction related to Sempra Financial

 

               -

 

           83

 

Other

 

              7

 

             8

 

 

Net cash used in continuing operations

 

          (393)

 

        (488)

 

 

Net cash provided by discontinued operations

 

               -

 

             2

 

 

Net cash used in financing activities

 

          (393)

 

        (486)

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

           403

 

          (48)

 

Cash and cash equivalents, January 1

 

           920

 

         769

 

Cash assumed in connection with FIN 46(R) consolidation

 

             29

 

             -

 

Cash and cash equivalents, June 30

 

 $     1,352

 

 $      721

 

 

 

 

 

 

 

 

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

 

Six months ended

 

 

 

 

June 30,

 

June 30,

 

(Dollars in millions)

2007

 

2006

 

2007

 

2006

 

Net Income

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $      51

 

 $      65

 

 $      113

 

 $     112

 

 

Southern California Gas

         54

 

         58

 

         109

 

        107

 

 

 

Total Sempra Utilities

       105

 

       123

 

         222

 

        219

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Global:

 

 

 

 

 

 

 

 

 

Sempra Commodities

       155

 

         69

 

         226

 

        185

 

 

Sempra Generation*

         10

 

         16

 

           64

 

          57

 

 

Sempra Pipelines & Storage*

         17

 

         28

 

           33

 

          39

 

 

Sempra LNG

        (13)

 

        (17)

 

          (23)

 

         (22)

 

 

 

Total Sempra Global

       169

 

         96

 

         300

 

        259

 

 

 

 

 

 

 

 

 

 

 

 

Parent & Other

           6

 

        (34)

 

          (15)

 

         (59)

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

       280

 

       185

 

         507

 

        419

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations, Net of Income Tax

          (3)

 

       188

 

           (2)

 

        209

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Income

 $     277

 

 $     373

 

 $      505

 

 $     628

 

 

 

 

 

 

 

 

 

 

 

 

* Excludes amounts now classified as discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

 

June 30,

 

June 30,

 

(Dollars in millions)

2007

 

2006

 

2007

 

2006

 

Capital Expenditures and Investments

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $     148

 

 $     140

 

 $      305

 

 $     723

 

 

Southern California Gas

       105

 

         96

 

         191

 

        193

 

 

   Total Sempra Utilities

       253

 

       236

 

         496

 

        916

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Global:

 

 

 

 

 

 

 

 

 

Sempra Commodities

         12

 

         10

 

           25

 

          30

 

 

Sempra Generation

           3

 

           6

 

            4

 

          35

 

 

Sempra Pipelines & Storage

         58

 

         41

 

         137

 

        146

 

 

Sempra LNG

       138

 

       193

 

         224

 

        345

 

 

   Total Sempra Global

       211

 

       250

 

         390

 

        556

 

 

 

 

 

 

 

 

 

 

 

 

Parent & Other

           2

 

           9

 

            8

 

       (459)

(1)

 

 

 

 

 

 

 

 

 

 

 

Consolidated Capital Expenditures and Investments

 $     466

 

 $     495

 

 $      894

 

 $   1,013

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

Six months ended

 

 

 

 

 

June 30,

 

June 30,

 

 

SEMPRA UTILITIES

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues (Dollars in millions)

 

 

 

 

 

 

 

 

 

 

SDG&E (excludes intercompany sales)

 $    655

 

 $    660

 

 $ 1,360

 

 $ 1,378

 

 

 

SoCalGas (excludes intercompany sales)

 $    965

 

 $    908

 

 $ 2,319

 

 $ 2,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gas Sales Bcf)

 

         84

 

         89

 

       225

 

       230

 

 

Transportation and Exchange (Bcf)

       123

 

       132

 

       243

 

       254

 

 

Total Deliveries (Bcf)

       207

 

       221

 

       468

 

       484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 

 

 

 

    6,501

 

    6,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

    3,869

 

    3,832

 

    8,059

 

    7,875

 

 

Direct Access (Millions of kWhs)

       716

 

       756

 

    1,494

 

    1,654

 

 

Total Deliveries (Millions of kWhs)

    4,585

 

    4,588

 

    9,553

 

    9,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 

 

 

 

    1,360

 

    1,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

    4,148

 

    3,646

(1)

    9,525

 

    8,556

(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

 

         78

 

         67

 

       141

 

       119

 

 

 

Mexico

 

         11

 

         11

 

         22

 

         21

 

 

 

Chile

 

            -

 

            -

 

            -

 

           1

 

 

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

 

    1,568

 

    1,514

 

 

 

Mexico

 

 

 

 

 

         98

 

         99

 

 

 

Chile

 

 

 

 

 

         39

 

         38

 

 

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

Peru

 

    1,258

 

    1,157

 

    2,527

 

    2,322

 

 

 

Chile

 

       621

 

       563

 

    1,286

 

    1,177

 

 

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

       799

 

       777

 

 

 

Chile

 

 

 

 

 

       541

 

       528

 

 

 

 

 

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

 

Table E (Continued)

 

 

 

 

 

 

 

 

 

SEMPRA COMMODITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

Margin* (Dollars in millions)

2007

2006

 

2007

2006

 

Geographical:

 

 

 

 

 

 

 

North America

 $            388

 $            247

 

 $            492

 $            606

 

 

Europe/Asia

                 79

                 18

 

               142

                 24

 

 

  Total

 $            467

 $            265

 

 $            634

 $            630

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

Gas

 $            212

 $            105

 

 $            156

 $            284

 

 

Power

               117

               110

 

               199

               211

 

 

Oil - Crude & Products

                 57

                 33

 

               114

                 86

 

 

Metals

                 64

                  (2)

 

               124

                 25

 

 

Other

                 17

                 19

 

                 41

                 24

 

 

  Total

 $            467

 $            265

 

 $            634

 $            630

 

 

 

 

 

 

 

 

 

* 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 June 30,

 

Six months ended June 30,

 

(Dollars in millions)

2007

2006

 

2007

2006

 

 

Revenues

 $            710

 $            614

 

 $          1,222

 $          1,394

 

 

Cost of sales

              (220)

              (314)

 

              (540)

              (689)

 

 

 

               490

               300

 

               682

               705

 

 

Other related costs

                (23)

                (35)

 

                (48)

                (75)

 

 

Margin

 $            467

 $            265

 

 $            634

 $            630

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

Effect of EITF 02-3  (Dollars in millions)

2007

2006

 

2007

2006

 

 

Mark-to-Market Earnings *

 $            122

 $              83

 

 $            279

 $            243

 

 

Effect of EITF 02-3 **

                 33

                (14)

 

                (53)

                (58)

 

 

GAAP Net Income

 $            155

 $              69

 

 $            226

 $            185

 

 

 

 

 

 

 

 

 

* 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)

June 30, 2007

0 - 12

13 - 24

25 - 36

> 36

 

 

 

 

 

 

 

 

 

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

 $            961

 $            442

 $           306

 $              54

 $            159

 

 

 

 

 

 

 

 

 

 

Maturity of OTC Fair Value - Cumulative Percentages

 

46.0%

77.8%

83.5%

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange Contracts (2)

               428

               418

                 27

                 47

                (64)

 

 

Total Net Unrealized Revenue at June 30, 2007

 $          1,389

 $            860

 $           333

 $            101

 $              95

 

 

 

 

 

 

 

 

 

 

Net Unrealized Revenue - Cumulative Percentages

 

61.9%

85.9%

93.2%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

December 31,

 

 

 

 

Credit Quality of Unrealized Trading Assets (net of margin)

2007

2006

 

 

 

 

Commodity Exchanges

11%

13%

 

 

 

 

Investment Grade

56%

57%

 

 

 

 

Below Investment Grade

33%

30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

Risk Adjusted Performance Indicators (Mark-to-Market Basis)

2007

2006

 

2007

2006

 

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

 $           10.6

 $           14.3

 

 $           10.5

 $           18.1

 

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

 $           15.0

 $           20.1

 

 $           14.8

 $           25.6

 

 

 

 

 

 

 

 

 

(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 June 30,

 

Six months ended June 30,

 

Physical Statistics

2007

2006

 

2007

2006

 

Natural Gas (Bcf/Day)

11.9

11.6

 

12.1

12.1

 

Electric (Billions of kWhs)

122.6

109.0

 

245.5

223.9

 

Oil & Liquid Products (Millions Bbls/Day)

0.6

0.9

 

0.6

0.8

 

 

 

 

 

 

 

 

 

Exhibit 99.2



SEMPRA ENERGY

 

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $        659

 

 $          981

 

 $           710

 

 $         277

 

 $           84

 

 $          (4)

 

 $            (46)

 

 

 $ 2,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

          473

 

             806

 

              457

 

            249

 

              80

 

              11

 

                    -

 

 

    2,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

            75

 

              70

 

                  6

 

              13

 

                3

 

                 -

 

                   4

 

 

       171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

          111

 

             105

 

              247

 

              15

 

                1

 

           (15)

 

               (50)

 

 

       414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

             (2)

 

               (2)

 

                  -

 

             (2)

 

             (2)

 

                 -

 

                 53

 

 

         45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

          109

 

             103

 

              247

 

              13

 

             (1)

 

           (15)

 

                   3

 

 

       459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 

            23

 

              10

 

                  -

 

             (2)

 

             (1)

 

                 -

 

                 15

 

 

         45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

            35

 

              39

 

                86

 

                5

 

             (2)

 

             (2)

 

               (18)

 

 

       143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings (Losses) of Certain Unconsolidated Subsidiaries

 

               -

 

                 -

 

                (6)

 

                -

 

              15

 

                 -

 

                    -

 

 

           9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

               -

 

                 -

 

                  -

 

                -

 

                -

 

                 -

 

                 (3)

 

 

        (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $         51

 

 $            54

 

 $           155

 

 $           10

 

 $           17

 

 $        (13)

 

 $                3

 

 

 $    277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $        664

 

 $          908

 

 $           614

 

 $         257

 

 $           72

 

 $        (20)

 

 $              (9)

 

 

 $ 2,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

          459

 

             735

 

              479

 

            212

 

              69

 

                9

 

                 15

 

 

    1,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

            80

 

              67

 

                  6

 

              11

 

                3

 

                 -

 

                   4

 

 

       171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

          125

 

             106

 

              129

 

              34

 

                -

 

           (29)

 

               (28)

 

 

       337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            11

 

               (1)

 

                  1

 

           (11)

 

                2

 

             (1)

 

                 (6)

 

 

        (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

          136

 

             105

 

              130

 

              23

 

                2

 

           (30)

 

               (34)

 

 

       332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 

            33

 

                4

 

                15

 

             (2)

 

                -

 

                2

 

                 13

 

 

         65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

            38

 

              43

 

                46

 

                9

 

           (12)

 

           (15)

 

               (13)

 

 

         96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Certain Unconsolidated Subsidiaries

 

               -

 

                 -

 

                  -

 

                -

 

              14

 

                 -

 

                    -

 

 

         14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

               -

 

                 -

 

                  -

 

                -

 

                -

 

                 -

 

               188

 

 

       188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $         65

 

 $            58

 

 $             69

 

 $           16

 

 $           28

 

 $        (17)

 

 $            154

 

 

 $    373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $     1,368

 

 $       2,349

 

 $        1,222

 

 $         674

 

 $         161

 

 $        (11)

 

 $            (98)

 

 

 $ 5,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

          987

 

          1,997

 

              931

 

            548

 

            150

 

              21

 

                 10

 

 

    4,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

          150

 

             139

 

                13

 

              25

 

                6

 

                 -

 

                   7

 

 

       340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

          231

 

             213

 

              278

 

            101

 

                5

 

           (32)

 

             (115)

 

 

       681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

              2

 

               (4)

 

                  -

 

             (2)

 

             (2)

 

                 -

 

                 62

 

 

         56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

          233

 

             209

 

              278

 

              99

 

                3

 

           (32)

 

               (53)

 

 

       737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (Income) (2)

 

            47

 

              22

 

                  2

 

             (9)

 

                -

 

                1

 

                 28

 

 

         91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

            73

 

              78

 

                90

 

              44

 

             (3)

 

           (10)

 

               (66)

 

 

       206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Certain Unconsolidated Subsidiaries

 

               -

 

                 -

 

                40

 

                -

 

              27

 

                 -

 

                    -

 

 

         67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

               -

 

                 -

 

                  -

 

                -

 

                -

 

                 -

 

                 (2)

 

 

        (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $        113

 

 $          109

 

 $           226

 

 $           64

 

 $           33

 

 $        (23)

 

 $            (17)

 

 

 $    505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 $     1,386

 

 $       2,333

 

 $        1,394

 

 $         653

 

 $         148

 

 $        (20)

 

 $            (72)

 

 

 $ 5,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Operating Expenses

 

        1,015

 

          1,993

 

           1,057

 

            526

 

            139

 

              19

 

                 (4)

 

 

    4,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

          147

 

             133

 

                13

 

              22

 

                6

 

                 -

 

                   7

 

 

       328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

          224

 

             207

 

              324

 

            105

 

                3

 

           (39)

 

               (75)

 

 

       749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            13

 

               (1)

 

                  -

 

           (10)

 

                3

 

             (2)

 

                 (4)

 

 

        (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Interest & Taxes (1)

 

          237

 

             206

 

              324

 

              95

 

                6

 

           (41)

 

               (79)

 

 

       748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

 

            52

 

              19

 

                31

 

                4

 

                 -

 

                2

 

                 41

 

 

       149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

            73

 

              80

 

              108

 

              34

 

             (9)

 

           (21)

 

               (61)

 

 

       204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Certain Unconsolidated Subsidiaries

 

               -

 

                 -

 

                  -

 

                -

 

              24

 

                 -

 

                    -

 

 

         24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

               -

 

                 -

 

                  -

 

                -

 

                -

 

                 -

 

               209

 

 

       209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 $        112

 

 $          107

 

 $           185

 

 $           57

 

 $           39

 

 $        (22)

 

 $            150

 

 

 $    628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.