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Sempra Energy Reports Higher First-Quarter 2014 Earnings

May 2, 2014

- Company Reaffirms 2014 Earnings-per-Share Guidance of $4.25 to $4.55

SAN DIEGO, May 2, 2014 /PRNewswire/ — Sempra Energy (NYSE: SRE) today reported first-quarter 2014 earnings of $247 million, or $0.99 per diluted share, compared with first-quarter 2013 earnings of $178 million, or $0.72 per diluted share.

Excluding a $9 million after-tax charge related to the closure of the San Onofre Nuclear Generating Station (SONGS), Sempra Energy’s adjusted earnings were $256 million, or $1.03 per diluted share, in the first quarter 2014.

“We are seeing year-over-year earnings growth consistent with our expectations,” said Debra L. Reed, chairman and CEO of Sempra Energy. “We are on track to meet our 2014 earnings guidance. Our Cameron LNG liquefaction-export project continues to make strong progress toward the start of construction later this year and we have several large projects in Mexico and Peru coming online in the second half of 2014.”

Earlier this week, Cameron LNG received notice that it had completed the environmental review process with the Federal Energy Regulatory Commission. Also, in March, Cameron LNG awarded a construction contract to a joint venture between CB&I and Chiyoda International Corp. Construction on the project is expected to begin later this year, with commercial operations slated to start in 2018.

CALIFORNIA UTILITIES

Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) increased to $78 million in the first quarter 2014 from $46 million in last year’s first quarter, due primarily to higher California Public Utilities Commission (CPUC) base operating margin.

The CPUC General Rate Case decision was delayed until the second quarter last year, so neither SoCalGas nor San Diego Gas & Electric (SDG&E) recorded revenue from that decision in the first quarter 2013.

San Diego Gas & Electric

First-quarter earnings for SDG&E were $99 million in 2014, compared with $91 million in 2013, due to improved CPUC base operating margin and the delay in the General Rate Case decision, offset by the $9 million SONGS charge.

On March 27, SDG&E and Southern California Edison announced that they reached a settlement agreement with key parties on the closure of SONGS. If approved by the CPUC, the agreement resolves all outstanding cost issues related to the plant closure and allows for recovery of replacement power costs, operating and maintenance expenses, and the companies’ non-steam generator replacement investment.

SEMPRA INTERNATIONAL

Sempra South American Utilities

Sempra South American Utilities had earnings of $35 million in the first quarter 2014, compared with $37 million in the first quarter 2013.

Sempra Mexico

Sempra Mexico’s earnings increased to $42 million in the first quarter 2014 from $31 million in last year’s first quarter, due primarily to regulatory earnings for pipeline projects under construction and lower income-tax expense.

On April 21, Sempra Energy’s Mexican subsidiary IEnova announced that it has finalized an agreement to sell InterGen 50 percent of the 155-megawatt Energía Sierra Juarez wind-generation project. The project, which has a 20-year power-purchase agreement with SDG&E, is expected to begin commercial operations in 2015.

SEMPRA U.S. GAS & POWER

Sempra Renewables

Sempra Renewables had first-quarter 2014 earnings of $28 million, compared with $4 million in the first quarter 2013, due primarily to the sale of a 50-percent equity interest in the Copper Mountain Solar 3 project.

Sempra Natural Gas

Earnings for Sempra Natural Gas were $9 million in the first quarter 2014, compared with $53 million in the first quarter 2013. In last year’s first quarter, Sempra Natural Gas recorded a $44 million gain related to the sale of half of the Mesquite Power natural gas-fired power plant.

NON-GAAP FINANCIAL MEASURES

Adjusted first-quarter 2014 earnings and earnings per share are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the first-quarter financial tables.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2722529.


Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2013 revenues of more than $10.5 billion. The Sempra Energy companies’ 17,000 employees serve more than 31 million consumers worldwide.

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,” “plans,” “estimates,” “projects,” “forecasts,” “contemplates,” “intends,” “depends,” “should,” “could,” “would,” “will,” “may,” “potential,” “target,” “pursue,” “goals,” “outlook,” “maintain” or similar expressions, or discussions of guidance, strategies, plans, goals, opportunities, projections, 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, including issuances of permits to construct and licenses for operation, by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, Atomic Safety and Licensing Board, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries in which we operate; capital markets conditions, including the availability of credit and the liquidity of our investments; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining permits, licenses, certificates and other authorizations on a timely basis and risks in obtaining adequate and competitive financing for such projects; inflation, interest and exchange rates; the impact of benchmark interest rates, generally Moody’s A-rated utility bond yields, on our California utilities’ cost of capital; 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 and the decommissioning of San Onofre Nuclear Generating Station (SONGS); weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent with nuclear power facilities and radioactive materials storage, including the catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the nuclear facility due to an extended outage and facility closure, and increased regulatory oversight; risks that partners or counterparties will be unable or unwilling to fulfill their contractual commitments; risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest; wars, terrorist attacks that threaten system operations and critical infrastructure, and cybersecurity threats to the energy grid and the confidentiality of proprietary information and the personal information of customers; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company’s electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through San Diego Gas & Electric Company’s electric transmission and distribution system; 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.

Investors should not rely unduly on any forward-looking statement. 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 the California utilities, 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

    CONDENSED CONSOLIDATED STATEMENTS OF
     OPERATIONS

                                           Three months
                                            ended March
                                                  31,
                                            -------------

    (Dollars in millions, except
     per share amounts)                    2014         2013
    ----------------------------           ----         ----

    REVENUES

    Utilities                            $2,485       $2,334

    Energy-related businesses               310          316
                                            ---          ---

        Total revenues                    2,795        2,650

    EXPENSES AND OTHER INCOME

    Utilities:

        Cost of natural gas                (620)        (556)

        Cost of electric fuel and
         purchased power                   (510)        (447)

    Energy-related businesses:

        Cost of natural gas, electric
         fuel and purchased power          (138)        (111)

        Other cost of sales                 (38)         (48)

    Operation and maintenance              (676)        (724)

    Depreciation and amortization          (286)        (295)

    Franchise fees and other taxes         (105)        (106)

    Gain on sale of equity
     interest and assets                     27           74

    Adjustment to loss from plant
     closure                                 13            -

    Equity earnings, before income
     tax                                     17           10

    Other income, net                        40           37

    Interest income                           4            6

    Interest expense                       (136)        (138)
                                           ----         ----

                                            387          352

    Income before income taxes and
     equity earnings of certain
     unconsolidated subsidiaries

    Income tax expense                     (127)        (178)

    Equity earnings, net of income
     tax                                      6            4
                                            ---          ---

    Net income                              266          178

    (Earnings) losses attributable
     to noncontrolling interests            (19)           2

    Preferred dividends of
     subsidiaries                             -           (2)

    Earnings                               $247         $178
                                           ====         ====

    Basic earnings per common
     share                                $1.01        $0.73
                                          =====

    Weighted-average number of
     shares outstanding, basic
     (thousands)                        245,277      243,294
                                        =======      =======

    Diluted earnings per common
     share                                $0.99        $0.72
                                          =====

    Weighted-average number of
     shares outstanding, diluted
     (thousands)                        249,669      247,534
                                        =======      =======

    Dividends declared per share
     of common stock                      $0.66        $0.63
                                          =====        =====


                             SEMPRA ENERGY

                          Table A (Continued)

    Sempra Energy Consolidated
    --------------------------

    RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY
     ADJUSTED EARNINGS

    EXCLUDING 2014 ADJUSTMENT TO LOSS FROM 2013 PLANT CLOSURE
     (Unaudited)

    In the first quarter of 2014, Sempra Energy Adjusted Earnings
     and Adjusted Diluted Earnings Per Common Share exclude a $9
     million charge ($0.04 per diluted share) to adjust the loss
     from plant closure (in addition to the amount recorded in
     the second quarter of 2013) associated with the investment
     in the San Onofre Nuclear Generating Station (SONGS) based
     upon a proposed settlement agreement filed with the
     California Public Utilities Commission (CPUC) in April 2014.
     These are non-GAAP financial measures (GAAP represents
     accounting principles generally accepted in the United
     States of America). Because of the significance and nature

                                                 Three months
                                                  ended March
                                                        31,

    (Dollars in millions,
     except per share
     amounts)                                    2014        2013
    ---------------------                        ----        ----

    Sempra Energy GAAP
     Earnings                                    $247        $178

    Add: 2014 adjustment to
     loss from 2013 plant
     closure                                        9           -

    Sempra Energy Adjusted
     Earnings                                    $256        $178
                                                 ====        ====

    Diluted earnings per common share:

    Sempra Energy GAAP
     Earnings                                   $0.99       $0.72
                                                =====       =====

    Sempra Energy Adjusted
     Earnings                                   $1.03       $0.72
                                                =====       =====

    Weighted-average number
     of shares outstanding,
     diluted (thousands)                      249,669     247,534
    -----------------------                   -------     -------

    San Diego Gas & Electric Company (SDG&E)
    -------------------------

    RECONCILIATION OF SDG&E GAAP EARNINGS TO ADJUSTED EARNINGS

    EXCLUDING 2014 ADJUSTMENT TO LOSS FROM 2013 PLANT CLOSURE
     (Unaudited)

    SDG&E Adjusted Earnings excluding a $9 million charge in the
     first quarter of 2014 to adjust the loss from plant closure
     (in addition to the amount recorded in the second quarter of
     2013) associated with SDG&E's investment in SONGS based upon
     a proposed settlement agreement filed with the CPUC in April
     2014 is a non-GAAP financial measure. Because of the
     significance and nature of this item, management believes
     that this non-GAAP financial measure provides a more
     meaningful comparison of the performance of SDG&E's business
     operations from 2014 to 2013 and to future periods. Non-
     GAAP financial measures are supplementary information that

                                                 Three months
                                                  ended March
                                                        31,

    (Dollars in millions)                        2014        2013
    --------------------                         ----        ----

    SDG&E GAAP Earnings                           $99         $91

    Add: 2014 adjustment to
     loss from 2013 plant
     closure                                        9           -

    SDG&E Adjusted Earnings                      $108         $91
    -----------------------                      ----         ---

                                                              SEMPRA ENERGY

                                                                 Table B

    CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                               March 31,               December 31,

    (Dollars in millions)                                                                  2014                   2013(1)
    --------------------                                                                   ----                    ------

                                                                              (unaudited)

    Assets

    Current assets:

            Cash and cash
            equivalents                                                  $844                                        $904

            Restricted
            cash                                                           26                       24

            Accounts
            receivable,
            net                                                         1,405                    1,522

            Due from
            unconsolidated
            affiliates                                                      2                        4

            Income taxes
            receivable                                                     88                       85

            Deferred
            income taxes                                                  375                      301

           Inventories                                                    197                      287

            Regulatory
            balancing
            accounts -
            undercollected                                                665                      556

            Other
            regulatory
            assets                                                         35                       38

            Fixed-price
            contracts
            and other
            derivatives                                                   114                      106

            Asset held
            for sale,
            power plant                                                   293                                          -

           Other                                                          180                      170
                                                                          ---

                                            Total current assets                          4,224                     3,997
                                                                                          -----                     -----

    Investments and other assets:

            Restricted
            cash                                                           27                       25

            Due from
            unconsolidated
            affiliate                                                      31                       14

            Regulatory
            assets
            arising from
            pension and
            other
            postretirement

               benefit
                obligations                                               454                      435

            Other
            regulatory
            assets                                                      2,039                    2,113

            Nuclear
            decommissioning
            trusts                                                      1,055                    1,034

           Investments                                                  1,634                    1,575

           Goodwill                                                       999                    1,024

            Other
            intangible
            assets                                                        423                      426

           Sundry                                                       1,146                    1,141

                                             Total investments and other
                                             assets                                       7,808                     7,787
                                                                                          -----                     -----

    Property, plant and
     equipment, net                                                                      25,452                    25,460
                                                                                         ------                    ------

    Total assets                                                                        $37,484                   $37,244
                                                                                        =======                   =======

    Liabilities and Equity

    Current liabilities:

            Short-term
            debt                                                       $1,084                                        $545

            Accounts
            payable                                                     1,200                    1,215

            Dividends and
            interest
            payable                                                       322                      271

            Accrued
            compensation
            and benefits                                                  260                      376

            Regulatory
            balancing
            accounts -
            overcollected                                                  88                       91

            Current
            portion of
            long-term
            debt                                                           97                    1,147

            Fixed-price
            contracts
            and other
            derivatives                                                    54                       55

            Customer
            deposits                                                      155                      154

           Other                                                          615                      515

                                            Total current liabilities                     3,875                     4,369
                                                                                          -----                     -----

    Long-term debt                                                                       11,700                    11,253
                                                                                         ------                    ------

    Deferred credits and other liabilities:

            Customer
            advances for
            construction                                                  158                      155

            Pension and
            other
            postretirement
            benefit
            obligations,
            net of plan
            assets                                                        679                      667

            Deferred
            income taxes                                                2,958                    2,804

            Deferred
            investment
            tax credits                                                    41                       42

            Regulatory
            liabilities
            arising from
            removal
            obligations                                                 2,624                    2,623

            Asset
            retirement
            obligations                                                 2,127                    2,084

            Fixed-price
            contracts
            and other
            derivatives                                                   238                      228

            Deferred
            credits and
            other                                                       1,195                    1,169

                                             Total deferred credits and other
                                             liabilities                                 10,020                     9,772
                                                                                         ------                     -----

    Equity:

            Total Sempra
            Energy
            shareholders'
            equity                                                     11,040                   11,008

            Preferred
            stock of
            subsidiary                                                     20                       20

            Other
            noncontrolling
            interests                                                     829                      822

                                            Total equity                                 11,889                    11,850
                                                                                         ------

    Total liabilities and
     equity                                                                             $37,484                   $37,244
                                                                                        =======                   =======

      (1)   Derived from audited financial
            statements.

                           SEMPRA ENERGY

                              Table C

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                       Three
                                                       months
                                                       ended
                                                     March 31,
                                                    ----------

    (Dollars in millions)                              2014          2013
    --------------------                                             ----

                                                   (unaudited)

    Cash Flows from Operating
     Activities

    Net income                                         $266          $178

    Adjustments to reconcile net income
     to net cash provided by operating
     activities:

      Depreciation and amortization                     286           295

      Deferred income taxes and
       investment tax credits                            95           252

      Gain on sale of equity interest and
       assets                                           (27)          (74)

      Adjustment to loss from plant
       closure                                          (13)            ?

      Equity earnings                                   (23)          (14)

      Fixed-price contracts and other
       derivatives                                       (3)           17

      Other                                             (24)            6

    Net change in other working capital
     components                                         234           149

    Changes in other assets                              94            17

    Changes in other liabilities                         19             9
                                                        ---           ---

      Net cash provided by operating
       activities                                       904           835
                                                        ---           ---

    Cash Flows from Investing
     Activities

    Expenditures for property, plant
     and equipment                                     (801)         (531)

    Expenditures for investments                        (12)           (5)

    Proceeds from sale of equity
     interest and assets, net of cash
     sold                                                66           371

    Distributions from investments                        3            15

    Purchases of nuclear
     decommissioning and other trust
     assets                                            (198)         (136)

    Proceeds from sales by nuclear
     decommissioning and other trusts                   195           134

    Decrease in restricted cash                          23            52

    Increase in restricted cash                         (27)          (60)

    Advances to unconsolidated
     affiliates                                         (17)            ?

    Other                                                (2)           (2)
                                                        ---           ---

      Net cash used in investing
       activities                                      (770)         (162)
                                                       ----          ----

    Cash Flows from Financing
     Activities

    Common dividends paid                              (154)         (145)

    Preferred dividends paid by
     subsidiaries                               ?            (2)

    Issuances of common stock                            11            15

    Repurchases of common stock                         (37)          (45)

    Issuances of debt (maturities
     greater than 90 days)                            1,188           608

    Payments on debt (maturities
     greater than 90 days)                           (1,138)         (645)

    Proceeds from sale of
     noncontrolling interests, net of
     $25 in offering costs                      ?            574

    Decrease in short-term debt, net                    (69)          (43)

    Other                                                 6             3

      Net cash (used in) provided by
       financing activities                            (193)          320
                                                       ----           ---

    Effect of exchange rate changes on
     cash and cash equivalents                           (1)            3
                                                        ---           ---

    (Decrease) increase in cash and
     cash equivalents                                   (60)          996

    Cash and cash equivalents, January
     1                                                  904           475
                                                        ---

    Cash and cash equivalents, March
     31                                                $844        $1,471
                                                       ====          ====

                                     SEMPRA ENERGY

                                        Table D

    SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

                                         Three months
                                          ended March
                                              31,
                                        -------------

    (Dollars in millions)                          2014                  2013
    --------------------                           ----                  ----

                                           (unaudited)

    Earnings (Losses)

    California Utilities:

    San Diego Gas & Electric                        $99                   $91

    Southern California Gas                          78                    46

    Sempra International:

    Sempra South American
     Utilities                                       35                    37

    Sempra Mexico                                    42                    31

    Sempra U.S. Gas & Power:

    Sempra Renewables                                28                     4

    Sempra Natural Gas                                9                    53

    Parent and other                                (44)                  (84)

    Earnings                                       $247                  $178
                                                   ====                  ====

                                         Three months
                                          ended March
                                              31,
                                        -------------

    (Dollars in millions)                          2014                  2013
    --------------------                           ----                  ----

                                           (unaudited)

    Capital Expenditures and Investments

    California Utilities:

    San Diego Gas & Electric                       $294                  $237

    Southern California Gas                         260                   179

    Sempra International:

    Sempra South American
     Utilities                                       32                    22

    Sempra Mexico                                    75                    61

    Sempra U.S. Gas & Power:

    Sempra Renewables                               111                    11

    Sempra Natural Gas                               40                    26

    Parent and other                                  1                     -

    Consolidated Capital
     Expenditures and Investments                  $813                  $536
                                                   ====                  ====

                                        SEMPRA ENERGY

                                           Table E

    OTHER OPERATING STATISTICS (Unaudited)

                                               Three
                                               months
                                               ended
                                             March 31,
                                            ----------

    UTILITIES                                     2014        2013
    ---------                                     ----        ----

    California Utilities -SDG&E and
     SoCalGas

    Gas Sales (bcf)(1)                             112         140

    Transportation (bcf)(1)                        162         168

    Total Deliveries (bcf)(1)                      274         308
                                                   ---         ---

    Total Gas Customers (Thousands)              6,714       6,685

    Electric Sales (Millions of
     kWhs)(1)                                    3,897       4,024

    Direct Access (Millions of kWhs)               888         835

    Total Deliveries (Millions of
     kWhs)(1)                                    4,785       4,859
                                                 -----       -----

    Total Electric Customers
     (Thousands)                                 1,410       1,403

    Other Utilities

    Natural Gas Sales (bcf)

                            Mexico                         6           6

                             Mobile
                             Gas(2)                       11          11

                             Willmut
                             Gas                           1           1

    Natural Gas Customers (Thousands)

                            Mexico                       101          94

                             Mobile
                             Gas                          88          89

                             Willmut
                             Gas                          20          20

    Electric Sales (Millions of kWhs)

                            Peru                       1,851       1,746

                            Chile                        788         761

    Electric Customers (Thousands)

                            Peru                       1,005         968

                            Chile                        644         628

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

    Sempra International

    Power Sold (Millions of kWhs)

                             Sempra
                             Mexico                    1,102       1,099

    Sempra U.S. Gas & Power

    Power Sold (Millions of kWhs)

                             Sempra
                             Renewables(3)               638         698

                             Sempra
                             Natural
                             Gas(4)                    1,252       1,132
    (1)     Includes
            intercompany
            sales.

    (2)     Includes
            transportation.

    (3)     Includes 50%
            of total
            power sold
            related to
            wind
            projects in
            which
            Sempra
            Energy has
            a 50%
            ownership.
            These
            subsidiaries
            are not
            consolidated
            within
            Sempra
            Energy and
            the related
            investments
            are
            accounted
            for under
            the equity
            method.

    (4)     Sempra
            Natural Gas
            sold one
            625-
            megawatt
            (MW) block
            of its
            1,250-MW
            Mesquite
            Power
            natural
            gas-fired
            power plant
            in February
            2013.

                                                                   SEMPRA ENERGY

                                                                 Table F (Unaudited)

    Statement of Operations Data by Segment

    Three Months Ended March 31, 2014

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

    Revenues                                    $987                 $1,085                              $378                   $201                          $6                        $260                              $(122)              $2,795

    Cost of
     sales and
     other
     expenses                    (649)                (851)                  (301)                            (135)                  (12)                        (243)                        104                                (2,087)

    Depreciation
     and
     amortization                (130)                (105)                    (14)                             (16)                   (1)                         (17)                        (3)                                 (286)

    Gain on sale
     of equity
     interest                                     -                      -                                 -                      -                          27                           -                                  -                   27

    Adjustment
     to loss
     from plant
     closure                        13            (1)     -                                                -                      -                           -                           -                                  -                   13

    Equity
     earnings,
     before
     income tax                                   -                      -                                 -                      -                           2                          15                                  -                   17

    Other
     income, net                    13                    4                      1                               10                                           -                           1                                 11                   40
                                   ---                  ---                    ---                              ---                                         ---                         ---                                ---                  ---

    Income
     (loss)
     before
     interest
     and tax (2)                   234                  133                     64                               60                    22                           16                       (10)                                   519

    Net interest
     expense (3)                   (50)                 (17)                    (5)                              (4)                                          -                          (1)                               (55)                (132)

    Income tax
     (expense)
     benefit                       (83)                 (38)                   (15)                             (12)                    6                           (6)                        21                                  (127)

    Equity
     (losses)
     earnings,
     net of
     income tax                                   -                      -                                (2)                     8                           -                           -                                  -                    6

    Earnings
     attributable
     to
     noncontrolling
     interests                      (2)                   -                     (7)                             (10)                                          -                           -                                  -                  (19)

    Earnings
     (losses)                                    $99                    $78                               $35                    $42                         $28                          $9                               $(44)                $247
                                                 ---                    ---                               ---                    ---                         ---                         ---                               ----                 ----

    Three Months Ended March 31, 2013

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

    Revenues                                    $939                   $983                              $384                   $168                         $21                        $253                               $(98)              $2,650

    Cost of
     sales and
     other
     expenses                    (637)                (800)                  (301)                            (113)                  (13)                        (220)                         92                                (1,992)

    Depreciation
     and
     amortization                (134)                (100)                    (15)                             (16)                   (8)                         (20)                        (2)                                 (295)

    Gain on sale
     of assets                                    -                      -                                 -                      -                           -                          74                                  -                   74

    Equity
     earnings,
     before
     income tax                                   -                      -                                 -                      -                           1                           9                                  -                   10

    Other
     income, net                    11                    4                      3                                9                                           -                           2                                  8                   37
                                   ---                  ---                    ---                              ---                                         ---                         ---                                ---                  ---

    Income
     before
     interest
     and tax (2)                   179                   87                     71                               48                     1                           98                                                       -                  484

    Net interest
     expense (3)                   (48)                 (17)                    (2)                              (1)                   (5)                         (12)                      (49)                                  (134)

    Income tax
     (expense)
     benefit                       (51)                 (24)                   (17)                             (26)                    8                          (33)                      (35)                            (4)   (178)

    Equity
     (losses)
     earnings,
     net of
     income tax                                   -                      -                                (7)                    11                           -                           -                                  -                    4

    Losses
     (earnings)
     attributable
     to
     noncontrolling
     interests                      11                    -                     (8)                              (1)                                          -                           -                                  -                    2

    Earnings
     (losses)                                    $91                    $46                               $37                    $31                          $4                         $53                               $(84)                $178
                                                 ---                    ---                               ---                    ---                         ---                         ---                               ----                 ----
    (1)     After taxes,
            including a
            $17 million
            charge to
            reduce
            certain tax
            regulatory
            assets
            attributed to
            SONGS, the
            adjustment to
            loss from
            plant closure
            is a $9
            million
            charge to
            earnings.

    (2)     Management
            believes
            Income (Loss)
            Before
            Interest and
            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 $63
            million
            income tax
            expense
            resulting
            from a
            corporate
            reorganization
            in
            connection
            with the
            IEnova
            stock
            offerings.

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SOURCE Sempra Energy


Source: PR Newswire



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