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Last updated on April 17, 2014 at 11:32 EDT

Sempra Energy Announces 2012 Financial Results

February 26, 2013

- Earnings-per-Share Guidance Range of $4.30 to $4.80 Set for 2013

SAN DIEGO, Feb. 26, 2013 /PRNewswire/ — Sempra Energy (NYSE: SRE) today reported 2012 earnings of $859 million, or $3.48 per diluted share, compared with $1.3 billion, or $5.51 per diluted share, in 2011.

Earnings in 2012 included $239 million in non-cash charges related to a write-down on Sempra U.S. Gas & Power’s 25-percent ownership stake in the Rockies Express Pipeline. The charges were partially offset by the receipt of a $25 million after-tax cash payment in the fourth quarter 2012 from Kinder Morgan related to the sale of its 50-percent stake in the Rockies Express Pipeline. In 2011, Sempra Energy benefited from a gain of $277 million, reflecting the write-up in value of Sempra International’s South American utility investments. Excluding the net write-down in 2012 and gain in 2011, Sempra Energy’s adjusted earnings were $1.07 billion, or $4.35 per diluted share, in 2012, compared with $1.05 billion, or $4.36 per diluted share, in 2011.

Sempra Energy’s fourth-quarter 2012 earnings were $293 million, or $1.18 per diluted share, compared with fourth-quarter 2011 earnings of $285 million, or $1.18 per diluted share. Excluding the receipt from Kinder Morgan, adjusted earnings in the fourth quarter 2012 were $268 million, or $1.08 per diluted share.

“In 2012, we met our key operational and financial goals and made significant progress in executing on our strategy,” said Debra L. Reed, chairman and CEO of Sempra Energy. “Our domestic and international utilities performed well; San Diego Gas & Electric put its Sunrise Powerlink transmission line into service; we were awarded bids in Mexico to construct and own approximately $1 billion of natural gas pipelines; we more than doubled our renewable energy generation portfolio; and we completed major regulatory filings for our Cameron LNG export project. We remain on track with our goal to deliver compound annual earnings growth of 6 percent to 8 percent, along with an increased dividend.”

Last week, Sempra Energy’s board of directors approved a 5-percent increase in the dividend to $2.52 per share from $2.40 per share, on an annualized basis.

In December 2012, following successful completion of the pre-filing process at the Federal Energy Regulatory Commission (FERC), the company filed its formal FERC permit application seeking approval to begin construction of the Cameron LNG liquefaction and export terminal in Louisiana. The company expects to receive all necessary regulatory permits by the end of this year for the project, which is expected to begin operations in 2017 and process up to 1.7 billion cubic feet per day of natural gas for export to international markets.

CALIFORNIA UTILITIES
As previously reported, the revenue requirement established in the General Rate Cases for San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) will be retroactive to Jan. 1, 2012. Until the California Public Utilities Commission reaches a final decision, both utilities are recording revenues based on 2011 authorized levels, as adjusted for the recovery of incremental wildfire insurance premiums. SoCalGas and SDG&E will record the cumulative change resulting from the decision, retroactive to the beginning of 2012, in the quarter a final decision is approved.

San Diego Gas & Electric
Earnings for SDG&E increased to $484 million in 2012 from $431 million in 2011. In the fourth quarter 2012, SDG&E earned $110 million, compared with $158 million in the prior year’s fourth quarter, primarily due to higher revenues for incremental wildfire insurance premiums in the fourth quarter 2011 and higher expenses with no authorized revenue increase in 2012.

Southern California Gas Co.
SoCalGas earned $289 million in 2012, compared with $287 million in 2011. In the fourth quarter, SoCalGas’ earnings were $99 million in 2012, compared with $79 million in 2011, due to lower income taxes, partially offset by higher depreciation and other operating expenses.

SEMPRA INTERNATIONAL
Sempra South American Utilities
In 2012, earnings for Sempra South American Utilities were $164 million, compared with $425 million in 2011. Earnings in 2011 were higher due to the $277 million second-quarter gain from the write-up in value of the company’s South American utility investments. In the fourth quarter 2012, Sempra South American Utilities had earnings of $46 million, up from $39 million in the prior year’s fourth quarter.

Sempra Mexico
Sempra Mexico’s earnings in 2012 were $157 million, compared with $192 million in 2011. Sempra Mexico’s fourth-quarter earnings were $35 million in 2012, compared with $80 million in 2011. During the fourth quarter 2012, a change in an intercompany agreement resulted in lower earnings at Sempra Mexico and higher earnings at Sempra Natural Gas.

SEMPRA U.S. GAS & POWER
Sempra Renewables
In 2012, earnings for Sempra Renewables increased to $61 million from $7 million in 2011. Fourth-quarter earnings for Sempra Renewables were $14 million in 2012, compared with a loss of $2 million in 2011, due primarily to the addition of solar and wind assets in 2012.

Since the beginning of 2012, Sempra U.S. Gas & Power has put into service more than 500 megawatts (MW) of wind and solar power projects stretching from Hawaii to Pennsylvania. The company’s portfolio of renewable energy now totals nearly 850 MW.

Sempra Natural Gas
Sempra Natural Gas posted a loss of $241 million in 2012, compared with earnings of $115 million in 2011. Sempra Natural Gas’ 2012 results included the $239 million of non-cash charges for the write-down of its investment in the Rockies Express Pipeline, offset by the receipt of the $25 million cash payment from Kinder Morgan related to the sale of its ownership in the pipeline. In the fourth quarter 2012, Sempra Natural Gas earned $19 million, compared with a loss of $36 million in the fourth quarter 2011. The higher fourth-quarter earnings were due primarily to the receipt of the cash payment from Kinder Morgan and the change in the intercompany agreement with Sempra Mexico, partially offset by lower earnings from LNG marketing operations.

2013 EARNINGS GUIDANCE
Sempra Energy today announced an earnings-per-share guidance range for 2013 of $4.30 to $4.80, which includes recording the anticipated 2012 impact of the final decision in SDG&E’s and SoCalGas’ General Rate Cases (expected in the first half of 2013) and approximately $0.30 per share in higher tax expense from repatriation of dividends from international operations.

NON-GAAP FINANCIAL MEASURES
Adjusted earnings for 2012 and 2011 are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the fourth-quarter financial tables.

INTERNET BROADCAST
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST with senior management of the company. Access is available by logging onto the 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 2184727.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2012 revenues of approximately $10 billion. The Sempra Energy companies’ nearly 17,000 employees serve more than 31 million consumers worldwide.

On Jan. 1, 2012, Sempra Energy consolidated Sempra Generation, Sempra Pipelines & Storage and Sempra LNG into two new operating units: Sempra International and Sempra U.S. Gas & Power. Sempra International is comprised of two new reporting segments: Sempra South American Utilities and Sempra Mexico. Sempra U.S. Gas & Power also is comprised of two new reporting segments: Sempra Renewables and Sempra Natural Gas. Beginning in the first quarter 2012, in addition to San Diego Gas & Electric and Southern California Gas Co., Sempra Energy began reporting financial results under each of the above segments.

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,” “outlook,” “depends,” “pursue” or similar expressions, or discussions of guidance, strategies, plans, goals, initiatives, objectives 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 and the timing of actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, U.S. Department of Energy, 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, including the availability of credit and the liquidity of investments; inflation, interest and exchange rates; the impact of benchmark interest rates, generally the U.S. Treasury bond and Moody’s A-rated utility bond yields, on the California utilities’ cost of capital; the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of the granting of, permits, licenses, certificates and other authorizations; 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, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent in nuclear power generation and radioactive materials storage, including catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the generation facility due to an extended outage, and increased regulatory oversight; risks posed by decisions and actions of fourth parties who control the operations of investments in which the company does not have a controlling interest; wars, terrorist attacks and cyber security threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the status of deregulation of retail natural gas and electricity delivery; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements; 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.

These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas) and Sempra International, LLC and Sempra U.S. Gas & Power, LLC are not regulated by the California Public Utilities Commission. Sempra International’s underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power’s underlying entities include Sempra Renewables and Sempra Natural Gas.

                                                     SEMPRA ENERGY
                                                        Table A

                                         CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                Three months ended                   Years ended
                                                                   December 31,                     December 31,
                                                                   ------------                     ------------
    (Dollars in millions, except per share
     amounts)                                                       2012                2011                2012                2011
    --------------------------------------                          ----                ----                ----                ----
                                                                  (unaudited)
    REVENUES
    Utilities                                                     $2,342              $2,389              $8,441              $8,322
    Energy-related businesses                                        326                 215               1,206               1,714
        Total revenues                                             2,668               2,604               9,647              10,036
    EXPENSES AND OTHER INCOME
    Utilities:
        Cost of natural gas                                         (426)               (499)             (1,290)             (1,866)
        Cost of electric fuel and purchased
         power                                                      (508)               (421)             (1,760)             (1,397)
    Energy-related businesses:
        Cost of natural gas, electric fuel and
         purchased power                                            (135)                (52)               (481)               (746)
        Other cost of sales                                          (42)                (14)               (159)               (137)
    Litigation expense                                                (8)                 (7)                (26)                (37)
    Other operation and maintenance                                 (818)               (815)             (2,923)             (2,788)
    Depreciation and amortization                                   (287)               (247)             (1,090)               (976)
    Franchise fees and other taxes                                   (95)                (84)               (359)               (343)
    Equity earnings (losses), before income tax:
        RBS Sempra Commodities LLP                                     -                   -                   -                 (24)
        Rockies Express Pipeline LLC                                  54                  14                (312)                 43
        Other                                                          2                  (1)                 (7)                (10)
    Remeasurement of equity method
     investments                                                       -                   -                   -                 277
    Other income, net                                                 35                  44                 172                 130
    Interest income                                                   10                   5                  24                  26
    Interest expense                                                (141)               (121)               (493)               (465)
                                                                    ----                ----                ----                ----
    Income before income taxes and equity earnings of certain
     unconsolidated subsidiaries
                                                          309        406                 943               1,723
    Income tax expense                                               (11)               (105)                (59)               (394)
    Equity earnings, net of income tax                                 7                   7                  36                  52
                                                                     ---                 ---                 ---                 ---
    Net income                                                       305                 308                 920               1,381
    Earnings attributable to noncontrolling
     interests                                                       (11)                (21)                (55)                (42)
    Preferred dividends of subsidiaries                               (1)                 (2)                 (6)                 (8)
                                                                     ---                 ---                 ---                 ---
    Earnings                                                        $293                $285                $859              $1,331
                                                                    ====                ====                ====              ======

    Basic earnings per common share                                $1.21               $1.19               $3.56               $5.55
                                                                   =====               =====               =====               =====
    Weighted-average number of shares
     outstanding, basic (thousands)                              241,984             239,803             241,347             239,720
                                                                 =======             =======             =======             =======

    Diluted earnings per common share                              $1.18               $1.18               $3.48               $5.51
                                                                   =====               =====               =====               =====
    Weighted-average number of shares
     outstanding, diluted (thousands)                            247,570             241,756             246,693             241,523
                                                                 =======             =======             =======             =======
    Dividends declared per share of common
     stock                                                         $0.60               $0.48               $2.40               $1.92
                                                                   =====               =====               =====               =====

                                                                                                           SEMPRA ENERGY
                                                                                                        Table A (Continued)

    RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS EXCLUDING NET IMPAIRMENT CHARGE AND GAIN FROM REMEASUREMENT OF EQUITY METHOD INVESTMENTS (Unaudited)

    Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share excluding a $214 million impairment charge on our investment in Rockies Express LLC, net of a $25 million Kinder Morgan receipt in the fourth quarter of 2012, and a $277 million gain from the
     remeasurement of equity method investments in Chilquinta Energia and Luz del Sur in the second quarter of 2011 are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). 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 2012 to 2011 and to future periods. 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                Years ended
                                                                                                                                                          December 31,                  December 31,

    (Dollars in millions, except per share amounts)                                                                                                          2012                2011                2012                2011
    ----------------------------------------------                                                                                                           ----                ----                ----                ----
    Sempra Energy GAAP Earnings                                                                                                                              $293                $285                $859              $1,331
    Add: Year-to-Date Impairment Charge, Net of Fourth-Quarter Receipt                                                                                        (25)                  -                 214                   -
    Less: Remeasurement Gain in 2011                                                                                                                            -                   -                   -                (277)
    Sempra Energy Adjusted Earnings                                                                                                                          $268                $285              $1,073              $1,054
                                                                                                                                                             ====                ====              ======              ======

    Diluted earnings per common share:
    Sempra Energy GAAP Earnings                                                                                                                             $1.18               $1.18               $3.48               $5.51
                                                                                                                                                            =====               =====               =====               =====
    Sempra Energy Adjusted Earnings                                                                                                                         $1.08               $1.18               $4.35               $4.36
                                                                                                                                                            =====               =====               =====               =====
    Weighted-average number of shares outstanding, diluted (thousands)                                                                                    247,570             241,756             246,693             241,523
                                                                                                                                                          =======             =======             =======             =======

                                                                         SEMPRA ENERGY
                                                                            Table B

    CONSOLIDATED BALANCE SHEETS

                                                                                           December 31,                                December 31,
    (Dollars in millions)                                                                                     2012                                        2011
    --------------------                                                                                      ----                                        ----

    Assets
    Current assets:
                    Cash and cash
                    equivalents                                           $475                                        $252
                   Restricted cash                                          46                                          24
                    Accounts receivable,
                    net                                                  1,299                                       1,345
                    Income taxes
                    receivable                                              56                                           -
                    Deferred income
                    taxes                                                  148                                           -
                   Inventories                                             408                                         346
                    Regulatory balancing
                    accounts -
                    undercollected                                         395                                          38
                   Regulatory assets                                        62                                          89
                    Fixed-price
                    contracts and other
                    derivatives                                             95                                          85
                    U.S. Treasury grants
                    receivable                                             258                                           -
                    Asset held for sale,
                    power plant                                            296                                           -
                    Settlements
                    receivable related
                    to wildfire
                    litigation                                               5                                          10
                   Other                                                   152                                         143
                                                                           ---
                                          Total current assets                                               3,695                                       2,332
                                                                                                             -----                                       -----

    Investments and other assets:
                   Restricted cash                                          22                                          22
                    Regulatory assets
                    arising from
                    pension and other
                    postretirement
                    benefit obligations
                                   1,151                                                                     1,126
                    Regulatory assets
                    arising from
                    wildfire litigation
                    costs                                                  364                                         594
                    Other regulatory
                    assets                                               1,227                                       1,060
                    Nuclear
                    decommissioning
                    trusts                                                 908                                         804
                   Investments                                           1,516                                       1,671
                   Goodwill                                              1,111                                       1,036
                    Other intangible
                    assets                                                 436                                         448
                   Sundry                                                  878                                         691
                                                                           ---
                                          Total investments and other assets                                 7,613                                       7,452
                                                                                                             -----                                       -----
    Property, plant and equipment, net                                                                      25,191                                      23,465
                                                                                                            ------                                      ------
    Total assets                                                                                           $36,499                                     $33,249
                                                                                                           =======                                     =======

    Liabilities and Equity
    Current liabilities:
                   Short-term debt                                        $546                                        $449
                   Accounts payable                                      1,110                                       1,107
                   Income taxes payable                                      -                                           5
                    Deferred income
                    taxes                                                    -                                         173
                    Dividends and
                    interest payable                                       266                                         219
                    Accrued compensation
                    and benefits                                           337                                         323
                    Regulatory balancing
                    accounts -
                    overcollected                                          141                                         105
                    Current portion of
                    long-term debt                                         725                                         336
                    Fixed-price
                    contracts and other
                    derivatives                                             77                                          92
                   Customer deposits                                       143                                         142
                    Reserve for wildfire
                    litigation                                             305                                         586
                   Other                                                   608                                         615
                                          Total current liabilities                                          4,258                                       4,152
                                                                                                             -----                                       -----
    Long-term debt                                                                                          11,621                                      10,078
                                                                                                            ------                                      ------

    Deferred credits and other liabilities:
                    Customer advances
                    for construction                                       144                                         142
                    Pension and other
                    postretirement
                    benefit
                    obligations, net of
                    plan assets                                          1,456                                       1,423
                    Deferred income
                    taxes                                                2,100                                       1,520
                    Deferred investment
                    tax credits                                             46                                          49
                    Regulatory
                    liabilities arising
                    from removal
                    obligations                                          2,720                                       2,551
                    Asset retirement
                    obligations                                          2,033                                       1,905
                    Other regulatory
                    liabilities                                              1                                          87
                    Fixed-price
                    contracts and other
                    derivatives                                            252                                         301
                    Reserve for wildfire
                    litigation                                              22                                          10
                    Deferred credits and
                    other                                                1,084                                         774
                                           Total deferred credits and other
                                           liabilities                                                       9,858                                       8,762
                                                                                                             -----                                       -----
    Contingently redeemable preferred stock of subsidiary                                                       79                                          79
                                                                                                               ---                                         ---
    Equity:
                    Total Sempra Energy
                    shareholders'
                    equity                                              10,282                                       9,775
                    Preferred stock of
                    subsidiary                                              20                                          20
                    Other noncontrolling
                    interests                                              381                                         383
                                          Total equity                                                      10,683                                      10,178
                                                                                                            ------                                      ------
    Total liabilities and equity                                                                           $36,499                                     $33,249
                                                                                                           =======                                     =======

                                              SEMPRA ENERGY
                                                 Table C

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                  Years ended
                                                                                  December 31,
                                                                                  ------------
    (Dollars in millions)                                                         2012             2011
    --------------------                                                                           ----

    Cash Flows from Operating
     Activities
    Net income                                                             $920          $1,381
    Adjustments to reconcile net
     income to net cash provided by
     operating activities:
                                     Depreciation and amortization               1,090              976
                                      Deferred income taxes and investment
                                      tax credits                                  (43)               3
                                     Equity losses (earnings)                      324              (61)
                                      Remeasurement of equity method
                                      investments                                    -             (277)
                                      Fixed-price contracts and other
                                      derivatives                                  (26)               2
                                     Other                                          34              (15)
    Net change in other working
     capital components                                                           (630)            (224)
    Distributions from RBS Sempra
     Commodities LLP                                                          -              53
    Changes in other assets                                                        219               34
    Changes in other liabilities                                                   130               (5)
                                      Net cash provided by operating
                                      activities                                 2,018            1,867

    Cash Flows from Investing
     Activities
    Expenditures for property, plant
     and equipment                                                              (2,956)          (2,844)
    Proceeds from sale of assets and
     investments                                                                    74                2
    Expenditures for investments and
     acquisition of businesses, net
     of cash acquired
                                                                                  (445)            (941)
    Distributions from RBS Sempra
     Commodities LLP                                                          -             570
    Distributions from other
     investments                                                                   207               64
    Purchases of nuclear
     decommissioning and other trust
     assets                                                                       (738)            (755)
    Proceeds from sales by nuclear
     decommissioning and other
     trusts                                                                        733              753
    Decrease in restricted cash                                                    196              653
    Increase in restricted cash                                                   (218)            (541)
    Other                                                                          (11)             (31)
                                     Net cash used in investing activities      (3,158)          (3,070)

    Cash Flows from Financing
     Activities
    Common dividends paid                                                         (550)            (440)
    Redemption of subsidiary
     preferred stock                                                          -             (80)
    Preferred dividends paid by
     subsidiaries                                                                   (6)              (8)
    Issuances of common stock                                                       78               28
    Repurchases of common stock                                                    (16)             (18)
    Issuances of debt (maturities
     greater than 90 days)                                                       3,097            2,098
    Payments on debt (maturities
     greater than 90 days)                                                      (1,112)            (482)
    Decrease in short-term debt, net                                               (47)            (498)
    Purchase of noncontrolling
     interests                                                                      (7)             (43)
    Distributions to noncontrolling
     interests                                                                     (61)             (16)
    Other                                                                          (21)              (7)
                                      Net cash provided by financing
                                      activities                                 1,355              534

    Effect of exchange rate changes
     on cash and cash equivalents                                                    8                9
                                                                                   ---              ---

    Increase (decrease) in cash and
     cash equivalents                                                              223             (660)
    Cash and cash equivalents,
     January 1                                                                     252              912
                                                                                   ---
    Cash and cash equivalents,
     December 31                                                           $475            $252
                                                                           ====            ====

                                                                  SEMPRA ENERGY
                                                                     Table D

    SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

                                             Three months ended      Years ended
                                                December 31,         December 31,
                                                ------------         ------------
    (Dollars in millions)                                    2012                  2011     2012     2011
    --------------------                                   ----                  ----     ----     ----
                                                (unaudited)
    Earnings (Losses)
    California Utilities:
       San Diego Gas &
        Electric                                           $110                  $158     $484     $431
       Southern California
        Gas                                                  99                    79      289      287
    Sempra International:
       Sempra South American
        Utilities                                            46                    39      164      425
       Sempra Mexico                                         35                    80      157      192
    Sempra U.S. Gas & Power:
       Sempra Renewables                                     14                    (2)      61        7
       Sempra Natural Gas                                    19                   (36)    (241)     115
    Parent & Other                                          (30)                  (33)     (55)    (126)

    Earnings                                               $293                  $285     $859   $1,331
                                                           ====                  ====     ====   ======

                                             Three months ended      Years ended
                                                December 31,         December 31,
                                                ------------         ------------
    (Dollars in millions)                                  2012                  2011     2012     2011
    --------------------                                   ----                  ----     ----     ----
                                                (unaudited)
    Capital Expenditures and Investments
    California Utilities:
       San Diego Gas &
        Electric                                           $239                  $669   $1,237   $1,831
       Southern California
        Gas                                                 177                   184      639      683
    Sempra International:
       Sempra South American
        Utilities                                            67                    47      184     (132)  (1)
       Sempra Mexico                                         32                     5       45       16
    Sempra U.S. Gas & Power:
       Sempra Renewables                                    228                   369    1,089      493
       Sempra Natural Gas                                    58                   (15)     202      241
    Parent & Other                                            -                     4        5      858   (1)
    Eliminations(2)                                           -                  (205)       -     (205)
    Consolidated Capital
     Expenditures and
     Investments                                           $801                $1,058   $3,401   $3,785
                                                           ====                ======   ======   ======
    (1)           The $611
                  million of
                  net cash
                  used to fund
                  the purchase
                  of
                  controlling
                  interests in
                  our
                  investments
                  in Chile and
                  Peru in the
                  second
                  quarter of
                  2011 is
                  recorded as
                  a net
                  expenditure
                  of $852
                  million at
                  Parent and
                  Other,
                  partially
                  offset by
                  $241 million
                  of cash
                  acquired in
                  the
                  purchase,
                  which is
                  recorded at
                  Sempra South
                  American
                  Utilities.

    (2)           Amount
                  represents
                  elimination
                  of
                  intercompany
                  sale of El
                  Dorado power
                  plant in
                  October
                  2011.

                                                                              SEMPRA ENERGY
                                                                                 Table E

                                                                  OTHER OPERATING STATISTICS (Unaudited)

                                                              Three months
                                                                  ended                  Years ended
                                                              December 31,               December 31,
                                                              ------------               ------------
    UTILITIES                                                             2012                       2011                          2012                          2011
    ---------                                                           ----                       ----                          ----                          ----

    California Utilities - SDG&E and SoCalGas
    Gas Sales (bcf)(1)                                                   102                        118                           380                           403
    Transportation (bcf)(1)                                              181                        155                           736                           620
    Total Deliveries (bcf)(1)                                            283                        273                         1,116                         1,023
                                                                         ---                        ---                         -----                         -----

    Total Gas Customers (Thousands)                                                                                             6,678                         6,655

    Electric Sales (Millions of kWhs)(1)                               4,220                      4,026                        16,626                        16,247
    Direct Access (Millions of kWhs)                                     926                        838                         3,399                         3,265
                                                                         ---                        ---                         -----                         -----
    Total Deliveries (Millions of kWhs)(1)                             5,146                      4,864                        20,025                        19,512
                                                                       -----                      -----                        ------                        ------

    Total Electric Customers (Thousands)                                                                                        1,401                         1,394

    Other Utilities(2)
    Natural Gas Sales (bcf)
                                 Argentina                                84                         88                           358                           355
                                 Mexico                                    6                          6                            23                            22
                                 Mobile Gas                               13                         11                            43                            40
                                  Willmut
                                  Gas(3)                                   7                          -                            15                             -
    Natural Gas Customers (Thousands)
                                 Argentina                                                                                      1,859                         1,810
                                 Mexico                                                                                            93                            90
                                 Mobile Gas                                                                                        88                            89
                                 Willmut Gas(3)                                                      20                             -
    Electric Sales (Millions of kWhs)
                                 Peru                                  1,672                      1,596                         6,668                         6,309
                                 Chile                                   683                        658                         2,698                         2,520
    Electric Customers (Thousands)
                                 Peru                                                                                             959                           926
                                 Chile                                                                                            623                           609

    ENERGY-RELATED BUSINESSES
    -------------------------

    Sempra International
    Power Sold (Millions of kWhs)
                                  Sempra
                                  Mexico(4)                              706                      1,085                         3,817                         3,063

    Sempra U.S. Gas & Power
    Power Sold (Millions of kWhs)
                                  Sempra
                                  Renewables(5)                          440                        225                         1,207                           633
                                  Sempra
                                  Natural Gas                          1,179                      1,051                         6,580                        10,621
    (1) Includes 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.
    (3) Acquired in May 2012.
    (4) Sales to Sempra Natural Gas.
    (5) Includes 100% of power sold
     from solar projects and 50% of
     total power sold related to wind
     projects in which Sempra Energy
     has a 50% ownership. The
     50%-owned subsidiaries are not
     consolidated within Sempra
     Energy and the related
     investments are accounted for
     under the equity method.

                                                                                                               SEMPRA ENERGY
                                                                                                            Table F (Unaudited)

    Statement of Operations Data by Segment

    Three Months Ended December 31, 2012

    (Dollars in millions)                   SDG&E        SoCalGas            Sempra South American   Sempra Mexico              Sempra Renewables         Sempra Natural Gas        Consolidating Adjustments, Parent
                                                                                   Utilities                                                                                                     & Other               Total
    --------------------                          -----           --------  ----------------------       -------------                 -----------------       ------------------  ---------------------------------   -----

    Revenues                                       $988               $954                     $380               $170                               $19                     $170                                $(13)       $2,668

    Cost of Sales and Other
     Expenses                                      (660)              (772)                    (291)              (112)                               (9)                    (160)                                (20)       (2,024)

    Litigation Expense                               (5)                (1)                       -                  -                                 -                        -                                  (2)           (8)

    Depreciation & Amortization                    (131)               (94)                     (14)               (16)                               (6)                     (24)                                 (2)         (287)

    Equity Earnings Recorded
     Before Income Tax                                -                  -                        -                  -                                 1                       54                                   1            56

    Other Income (Expense), Net                      10                  3                        6                 (1)                               (1)                       6                                  12            35
                                                    ---                ---                      ---                ---                               ---                      ---                                 ---           ---

    Income (Loss) Before
     Interest & Tax (1)                             202                 90                       81                 41                                 4                       46                                 (24)          440

    Net Interest Expense (2)                        (50)               (17)                      (6)                (1)                               (6)                     (12)                                (40)         (132)

    Income Tax (Expense)
     Benefit                                        (39)                26                      (21)               (12)                               16                      (14)                                 33           (11)

    Equity Earnings Recorded
     Net of Income Tax                                -                  -                        -                  7                                 -                        -                                   -             7

    (Earnings) Losses
     Attributable to
     Noncontrolling Interests                        (3)                 -                       (8)                 -                                 -                       (1)                                  1           (11)

    Earnings (Losses)                              $110                $99                      $46                $35                               $14                      $19                                $(30)         $293
                                                   ----                ---                      ---                ---                               ---                      ---                                ----          ----

    Three Months Ended December 31, 2011

    (Dollars in millions)                   SDG&E        SoCalGas            Sempra South American   Sempra Mexico              Sempra Renewables         Sempra Natural Gas        Consolidating Adjustments, Parent
                                                                                   Utilities                                                                                                     & Other               Total
    --------------------                          -----           --------  ----------------------       -------------                 -----------------       ------------------  ---------------------------------   -----

    Revenues                                       $968             $1,040                     $374               $173                                $5                     $292                               $(248)       $2,604

    Cost of Sales and Other
     Expenses                                      (589)              (824)                    (294)               (57)                               (7)                    (334)                                220        (1,885)

    Litigation (Expense)
     Adjustment                                      (4)                (2)                      (1)                (3)                                -                        -                                   3            (7)

    Depreciation & Amortization                    (106)               (85)                     (13)               (16)                               (2)                     (24)                                 (1)         (247)

    Equity Earnings (Losses)
     Recorded Before Income Tax                       -                  -                        -                  -                                 -                       14                                  (1)           13

    Other Income (Expense), Net                      24                  4                       (1)                 5                                 -                       (1)                                 13            44
                                                    ---                ---                      ---                ---                               ---                      ---                                 ---           ---

    Income (Loss) Before
     Interest & Tax (1)                             293                133                       65                102                                (4)                     (53)                                (14)          522

    Net Interest Expense (2)                        (39)               (17)                      (7)                (4)                               (4)                      (9)                                (38)         (118)

    Income Tax (Expense)
     Benefit                                        (83)               (37)                     (12)               (25)                                6                       25                                  21          (105)

    Equity Earnings Recorded
     Net of Income Tax                                -                  -                        -                  7                                 -                        -                                   -             7

    (Earnings) Losses
     Attributable to
     Noncontrolling Interests                       (13)                 -                       (7)                 -                                 -                        1                                  (2)          (21)

    Earnings (Losses)                              $158                $79                      $39                $80                               $(2)                    $(36)                               $(33)         $285
                                                   ----                ---                      ---                ---                               ---                     ----                                ----          ----
    (1) Management believes "Income
     (Loss) before Interest & Tax" is
     a useful measurement of our
     segments' 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.

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

                                                                                                                       SEMPRA ENERGY
                                                                                                                    Table F (Unaudited)

    Statement of Operations Data by Segment

    Year Ended December 31, 2012

    (Dollars in millions)                   SDG&E         SoCalGas            Sempra South American        Sempra Mexico                Sempra Renewables         Sempra Natural Gas            Consolidating Adjustments, Parent
                                                                                    Utilities                                                                                                                & Other               Total
    --------------------                           -----           --------  ----------------------            -------------                   -----------------       ------------------      ---------------------------------   -----

    Revenues                                      $3,694             $3,282                   $1,441                    $605                                 $68                     $931                                   $(374)        $9,647

    Cost of Sales and Other
     Expenses                                     (2,380)            (2,494)                  (1,111)                   (355)                                (30)                    (889)                                    287         (6,972)

    Litigation Expense                               (15)                (6)                       -                      (4)                                  -                        -                                      (1)           (26)

    Depreciation & Amortization                     (490)              (362)                     (56)                    (62)                                (16)                     (93)                                    (11)        (1,090)

    Equity Losses Recorded
     Before Income Tax                                 -                  -                        -                       -                                  (6)                    (312) (1)                                 (1)          (319)

    Other Income (Expense), Net                       69                 17                       13                      16                                  (2)                       9                                      50            172
                                                     ---                ---                      ---                     ---                                 ---                      ---                                     ---            ---

    Income (Loss) Before
     Interest & Tax (2)                              878                437                      287                     200                                  14                     (354)                                    (50)         1,412

    Net Interest Expense (3)                        (178)               (69)                     (17)                     (6)                                (16)                     (43)                                   (146)          (475)

    Income Tax (Expense)
     Benefit                                        (190)               (79)                     (78)                    (73)                                 63                      157                                     141            (59)

    Equity Earnings Recorded
     Net of Income Tax                                 -                  -                        -                      36                                   -                        -                                       -             36

    Earnings Attributable to
     Noncontrolling Interests                        (26)                 -                      (28)                      -                                   -                       (1)                                      -            (55)

    Earnings (Losses)                               $484               $289                     $164                    $157                                 $61                    $(241)                                   $(55)          $859
                                                    ----               ----                     ----                    ----                                 ---                    -----                                    ----           ----

    Year Ended December 31, 2011

    (Dollars in millions)                   SDG&E         SoCalGas            Sempra South American        Sempra Mexico                Sempra Renewables         Sempra Natural Gas            Consolidating Adjustments, Parent
                                                                                    Utilities                                                                                                                & Other               Total
    --------------------                           -----           --------  ----------------------            -------------                   -----------------       ------------------      ---------------------------------   -----

    Revenues                                      $3,373             $3,816                   $1,080                    $736                                 $22                   $1,632                                   $(623)       $10,036

    Cost of Sales and Other
     Expenses                                     (2,177)            (2,994)                    (859)                   (433)                                (18)                  (1,336)                                    540         (7,277)

    Litigation (Expense)
     Adjustment                                      (19)                (5)                      (1)                     (9)                                  -                       (5)                                      2            (37)

    Depreciation & Amortization                     (422)              (331)                     (40)                    (63)                                 (6)                    (103)                                    (11)          (976)

    Equity (Losses) Earnings
     Recorded Before Income Tax                        -                  -                        -                       -                                  (6)                      43                                     (28)             9

    Other Income (Expense), Net                       79                 13                      299   (4)               (13)                                  -                        1                                      28            407
                                                     ---                ---                      ---  ---                ---                                 ---                      ---                                     ---            ---

    Income (Loss) Before
     Interest & Tax (2)                              834                499                      479                     218                                  (8)                     232                                     (92)         2,162

    Net Interest Expense (3)                        (147)               (69)                     (12)                    (18)                                (13)                     (46)                                   (142)          (447)

    Income Tax (Expense)
     Benefit                                        (237)              (143)                     (42)                    (37)                                 28                      (72)                                    109           (394)

    Equity Earnings Recorded
     Net of Income Tax                                 -                  -                       23                      29                                   -                        -                                       -             52

    (Earnings) Losses
     Attributable to
     Noncontrolling Interests                        (19)                 -                      (23)                      -                                   -                        1                                      (1)           (42)

    Earnings (Losses)                               $431               $287                     $425                    $192                                  $7                     $115                                   $(126)        $1,331
                                                    ----               ----                     ----                    ----                                 ---                     ----                                   -----         ------
    (1) Includes Rockies Express Pipeline
     LLC impairment charge of $400
     million, partially offset by a $41
     million Kinder Morgan receipt.

    (2) Management believes "Income
     (Loss) before Interest & Tax" is a
     useful measurement of our segments'
     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.

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

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SOURCE Sempra Energy


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