SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
|
Date of Report |
|
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(Date of earliest event reported): |
February 22, 2006 |
SEMPRA ENERGY
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(Exact name of registrant as specified in its charter)
|
CALIFORNIA |
1-14201 |
33-0732627 |
|
(State of incorporation |
(Commission |
(I.R.S. Employer |
|
101 ASH STREET, SAN DIEGO, CALIFORNIA |
92101 |
|
(Address of principal executive offices) |
(Zip Code) |
|
Registrant's telephone number, including area code |
(619) 696-2034 |
---------------------------------------------------------------------
(Former name or former address, if changed since last report.)
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
|
|
[ ] |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
[ ] |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
[ ] |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
[ ] |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
FORM 8-K
Item 2.02 Results of Operations and Financial Condition
The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
On February 22, 2006, Sempra Energy issued a press release announcing consolidated net income of $355 million, or $1.38 per diluted share of common stock, for the fourth quarter of 2005. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.
In addition to reporting net income for the three months and the years ended December 31, 2005 and 2004, the press release states what net income would have been for the three-month periods excluding the impact of discontinued operations and specified unusual factors. Management believes that this presentation assists the reader and the company in understanding trends in earnings.
Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Income Statement Data by Business Unit for the three months and the years ended December 31, 2005 and 2004. A copy of such information is attached as Exhibit 99.2
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
99.1 February 22, 2006 Sempra Energy News Release (including tables)
99.2 Sempra Energy's Income Statement Data by Business Unit for the three months and the years ended December 31, 2005 and 2004.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SEMPRA ENERGY
(Registrant)
|
Date: February 22, 2006 |
By: /s/ F. H. Ault |
|
F. H. Ault |
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|
Exhibit 99.1 |
|
Media Contact: |
Doug Kline |
|
Financial Contact: |
Karen Sedgwick |
SEMPRA ENERGY REPORTS
RECORD 2005 NET INCOME
SAN DIEGO, Feb. 22, 2006 - Based on strong results in its commodities and utility businesses, Sempra Energy (NYSE: SRE) today reported 2005 net income of $920 million, or $3.65 per diluted share, compared with $895 million, or $3.83 per diluted share, in 2004.
Sempra Energy's fourth-quarter 2005 net income was $355 million, or $1.38 per diluted share, compared with $346 million, or $1.46 per diluted share, in 2004.
In 2005, Sempra Energy incurred $311 million after tax in litigation costs related to the Western U.S. energy crisis of 2000-01, compared with $84 million in 2004. In the fourth quarter 2005, the company took an after-tax charge of $116 million for energy-crisis-related litigation costs compared with $74 million in the prior-year quarter.
-more-
"We are pleased to report record net income in 2005 and a strong fourth quarter, driven by the outstanding operating results in our commodities and power generation businesses, as well as our California utilities," said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. "We continue to execute our strategy, expanding our competitive businesses in liquefied natural gas (LNG) and natural gas pipelines and storage, while building upon a solid foundation with our utilities, generation and commodities units."
Yesterday, Sempra Energy's board of directors announced an increase in the dividend on common shares on an annualized basis to $1.20 from $1.16.
Revenues for Sempra Energy in 2005 increased to $11.7 billion from $9.4 billion in 2004, due primarily to higher natural gas costs and increased commodities marketing activity. Fourth-quarter 2005 revenues were $4 billion, compared with $2.9 billion in the year-earlier period.
SUBSIDIARY OPERATING RESULTS
Sempra Utilities
Net income for San Diego Gas & Electric (SDG&E) rose to $262 million in 2005 from $208 million in the previous year. SDG&E's fourth-quarter 2005 net income was $72 million, up from $68 million in the fourth quarter 2004, due primarily to regulatory approval of demand-side-management incentives. In the fourth quarter 2004, SDG&E benefited from the settlement of its rate case at the California Public Utilities Commission (CPUC).
Net income for Southern California Gas Co. (SoCalGas) was $211 million in 2005, compared with $232 million in 2004. Fourth-quarter 2005 net income for SoCalGas was $48 million, compared with $58 million earned in the year-earlier period. In the fourth quarter 2005, SoCalGas received regulatory approval of demand-side-management incentives. In the previous-year quarter, SoCalGas benefited from the settlement of its rate case at the CPUC.
-more-
Sempra Commodities
Sempra Commodities had record net income of $460 million in 2005, an increase of 44 percent over 2004 net income of $320 million. Fourth-quarter 2005 net income for Sempra Commodities rose to $244 million from $171 million in the same quarter in 2004, due primarily to increased activity in natural gas, power and oil marketing in both Europe and North America.
"Sempra Commodities has built an enviable track record of growth to become an industry leader, achieving 28 consecutive quarters of profitability," Felsinger said.
Sempra Generation
Sempra Generation's 2005 net income was $164 million, up from $137 million the previous year. Fourth-quarter net income for Sempra Generation increased to $61 million in 2005 from $19 million in 2004, due primarily to improved operating results for the company's Western U.S. power-generating fleet.
Sempra Generation announced plans in December 2005 to sell or refinance all of its Texas-based power-generation assets. Last month, the company entered into an agreement to sell one of its Texas power plants, the 305-megawatt coal-fired Twin Oaks Power facility, for $480 million in cash. The sale is expected to close in the second quarter 2006 and result in an after-tax gain of approximately $215 million.
Sempra Pipelines & Storage
Net income for Sempra Pipelines & Storage in 2005 was $64 million, compared with $63 million in 2004. Fourth-quarter 2005 net income for Sempra Pipelines & Storage was $16 million, compared with $28 million in the previous year's quarter. In the fourth quarter 2004, Sempra Pipelines & Storage benefited from the favorable resolution of foreign-tax issues.
-more-
Sempra LNG
Sempra LNG recorded a loss of $25 million in 2005, compared with a loss of $8 million in 2004. For the fourth quarter, Sempra LNG's loss was $10 million in 2005, compared with a loss of $8 million in 2004.
"Construction of our Mexico and Louisiana LNG receipt facilities is on schedule and we expect to receive final regulatory approvals of our Texas receipt facility by the middle of this year," said Felsinger.
2006 Earnings Outlook
Sempra Energy today updated its 2006 earnings-per-share guidance to $3.40 to $3.60 from previous guidance of $3.20 to $3.40. The updated guidance for 2006 excludes any gains from asset sales.
Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. Eastern Time with senior management of the company. Access is available by logging onto the Web site at www.sempra.com. For those unable to log onto the live Webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (706) 645-9291 and entering the passcode, 5624328.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion. The Sempra Energy companies' 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
Income-statement information by business unit is available on Sempra Energy's Web site at
http://www.sempra.com/downloads/4Q2005_Table_All.pdf.###
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California P ublic Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site,
www.sec.gov and on the company's Web site, www.sempra.com.Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.
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SEMPRA ENERGY |
|||||||||
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Table A |
|||||||||
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STATEMENTS OF CONSOLIDATED INCOME |
|||||||||
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Three months ended |
Years ended |
||||||||
|
December 31, |
December 31, |
||||||||
|
(Dollars in millions, except per share amounts) |
2005 |
|
2004 |
2005 |
|
2004 |
|||
|
(Unaudited) |
|||||||||
|
Operating revenues |
|||||||||
|
California utilities |
$ 2,259 |
$ 1,760 |
$ 7,042 |
$ 6,195 |
|||||
|
Sempra Global and parent |
1,735 |
1,146 |
4,695 |
3,239 |
|||||
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Total operating revenues |
3,994 |
2,906 |
11,737 |
9,434 |
|||||
|
Operating expenses |
|||||||||
|
California utilities: |
|||||||||
|
Cost of natural gas |
1,172 |
849 |
3,232 |
2,593 |
|||||
|
Cost of electric fuel and purchased power |
187 |
151 |
624 |
576 |
|||||
|
Other cost of sales |
828 |
555 |
2,715 |
1,741 |
|||||
|
Litigation expense |
210 |
126 |
551 |
150 |
|||||
|
Other operating expenses |
854 |
663 |
2,634 |
2,243 |
|||||
|
Depreciation and amortization |
165 |
120 |
646 |
621 |
|||||
|
Franchise fees and other taxes |
66 |
65 |
251 |
236 |
|||||
|
Gains on sale of assets, net |
(8 |
) |
(1 |
) |
(112 |
) |
(15 |
) |
|
|
Impairment losses |
71 |
1 |
85 |
8 |
|||||
|
Total operating expenses |
3,545 |
2,529 |
10,626 |
8,153 |
|||||
|
Operating income |
449 |
377 |
1,111 |
1,281 |
|||||
|
Other income, net |
27 |
31 |
51 |
33 |
|||||
|
Interest income |
23 |
11 |
75 |
69 |
|||||
|
Interest expense |
(90 |
) |
(88 |
) |
(311 |
) |
(322 |
) |
|
|
Preferred dividends of subsidiaries |
(3 |
) |
(3 |
) |
(10 |
) |
(10 |
) |
|
|
Income from continuing operations before income taxes and |
|||||||||
|
equity in earnings of certain unconsolidated subsidiaries |
406 |
328 |
916 |
1,051 |
|||||
|
Income tax expense |
58 |
2 |
42 |
193 |
|||||
|
Equity in income of certain unconsolidated subsidiaries |
13 |
13 |
55 |
62 |
|||||
|
Income from continuing operations |
361 |
339 |
929 |
920 |
|||||
|
Discontinued operations, net of tax |
(6 |
) |
7 |
(9 |
) |
(25 |
) |
||
|
Net income |
$ 355 |
$ 346 |
$ 920 |
$ 895 |
|||||
|
Basic earnings per share: |
|||||||||
|
Income from continuing operations |
$ 1.42 |
$ 1.47 |
$ 3.78 |
$ 4.03 |
|||||
|
Discontinued operations, net of tax |
(0.02 |
) |
0.03 |
(0.04 |
) |
(0.11 |
) |
||
|
Net income |
$ 1.40 |
$ 1.50 |
$ 3.74 |
$ 3.92 |
|||||
|
Weighted-average number of shares outstanding (thousands) |
253,516 |
230,832 |
245,906 |
228,271 |
|||||
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Diluted earnings per share: |
|||||||||
|
Income from continuing operations |
$ 1.40 |
$ 1.43 |
$ 3.69 |
$ 3.93 |
|||||
|
Discontinued operations, net of tax |
(0.02 |
) |
0.03 |
(0.04 |
) |
(0.10 |
) |
||
|
Net income |
$ 1.38 |
$ 1.46 |
$ 3.65 |
$ 3.83 |
|||||
|
Weighted-average number of shares outstanding (thousands) |
257,845 |
237,500 |
252,088 |
233,852 |
|||||
|
Dividends declared per share of common stock |
$ 0.29 |
$ 0.25 |
$ 1.16 |
$ 1.00 |
|||||
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SEMPRA ENERGY |
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Table B |
||||||
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CONSOLIDATED BALANCE SHEETS |
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December 31, |
December 31, |
|||||
|
(Dollars in millions) |
|
2005 |
|
2004 |
||
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Assets |
||||||
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Current assets: |
||||||
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Cash and cash equivalents |
$ 772 |
$ 419 |
||||
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Short-term investments |
12 |
15 |
||||
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Accounts receivable |
1,192 |
1,032 |
||||
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Due from unconsolidated affiliates |
3 |
4 |
||||
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Deferred income taxes |
132 |
15 |
||||
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Interest receivable |
29 |
80 |
||||
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Trading-related receivables and deposits, net |
3,370 |
2,606 |
||||
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Derivative trading instruments |
4,502 |
2,339 |
||||
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Commodities owned |
2,498 |
1,547 |
||||
|
Regulatory assets |
255 |
255 |
||||
|
Inventories |
212 |
172 |
||||
|
Other |
291 |
222 |
||||
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Current assets of continuing operations |
13,268 |
8,706 |
||||
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Current assets of discontinued operations |
50 |
70 |
||||
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Total current assets |
13,318 |
8,776 |
||||
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Investments and other assets: |
||||||
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Due from unconsolidated affiliates |
21 |
42 |
||||
|
Regulatory assets arising from fixed-price contracts and other derivatives |
398 |
500 |
||||
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Other regulatory assets |
713 |
751 |
||||
|
Nuclear decommissioning trusts |
638 |
612 |
||||
|
Investments |
1,104 |
1,164 |
||||
|
Sundry |
920 |
844 |
||||
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Total investments and other assets |
3,794 |
3,913 |
||||
|
Property, plant and equipment, net |
12,101 |
11,086 |
||||
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Total assets |
$ 29,213 |
$ 23,775 |
||||
|
Liabilities and Shareholders' Equity |
||||||
|
Current liabilities: |
||||||
|
Short-term debt |
$ 1,062 |
$ 405 |
||||
|
Accounts payable |
1,412 |
1,126 |
||||
|
Income taxes payable |
68 |
187 |
||||
|
Trading-related payables |
4,127 |
3,182 |
||||
|
Derivative trading instruments |
3,246 |
1,484 |
||||
|
Commodities sold with agreement to repurchase |
634 |
513 |
||||
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Dividends and interest payable |
140 |
123 |
||||
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Regulatory balancing accounts, net |
192 |
509 |
||||
|
Fixed-price contracts and other derivatives |
130 |
157 |
||||
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Current portion of long-term debt |
101 |
398 |
||||
|
Due to unconsolidated affiliates (mandatorily redeemable preferred securities) |
- |
205 |
||||
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Other |
1,035 |
776 |
||||
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Current liabilities of continuing operations |
12,147 |
9,065 |
||||
|
Current liabilities of discontinued operations |
10 |
17 |
||||
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Total current liabilities |
12,157 |
9,082 |
||||
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Long-term debt |
4,823 |
4,192 |
||||
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Deferred credits and other liabilities: |
||||||
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Due to unconsolidated affiliate |
162 |
162 |
||||
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Customer advances for construction |
110 |
97 |
||||
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Postretirement benefits other than pensions |
121 |
129 |
||||
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Deferred income taxes |
245 |
420 |
||||
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Deferred investment tax credits |
73 |
78 |
||||
|
Regulatory liabilities arising from removal obligations |
2,313 |
2,692 |
||||
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Asset retirement obligations |
958 |
326 |
||||
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Other regulatory liabilities |
200 |
199 |
||||
|
Fixed-price contracts and other derivatives |
400 |
500 |
||||
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Deferred credits and other |
1,312 |
854 |
||||
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Total deferred credits and other liabilities |
5,894 |
5,457 |
||||
|
Preferred stock of subsidiaries |
179 |
179 |
||||
|
Shareholders' equity |
6,160 |
4,865 |
||||
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Total liabilities and shareholders' equity |
$ 29,213 |
$ 23,775 |
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Table C |
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CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
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Years ended |
|||||||
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December 31, |
|||||||
|
(Dollars in millions) |
|
2005 |
|
2004 |
|||
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Cash Flows from Operating Activities: |
|||||||
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Net income |
$ 920 |
$ 895 |
|||||
|
Adjustments to reconcile net income to net cash provided by operating |
|||||||
|
|
activities: |
||||||
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Loss from discontinued operations, net of tax |
9 |
25 |
|||||
|
Depreciation and amortization |
646 |
621 |
|||||
|
Gains on sale of assets, net |
(112 |
) |
(15 |
) |
|||
|
Impairment losses |
85 |
8 |
|||||
|
Deferred income taxes and investment tax credits |
(283 |
) |
13 |
||||
|
Other |
(48 |
) |
33 |
||||
|
Net changes in other working capital components |
(1,169 |
) |
(395 |
) |
|||
|
Changes in other assets |
27 |
(127 |
) |
||||
|
Changes in other liabilities |
451 |
(27 |
) |
||||
|
Net cash provided by continuing operations |
526 |
1,031 |
|||||
|
Net cash used in discontinued operations |
(5 |
) |
(30 |
) |
|||
|
Net cash provided by operating activities |
521 |
1,001 |
|||||
|
Cash Flows from Investing Activities: |
|||||||
|
Expenditures for property, plant and equipment |
(1,404 |
) |
(1,083 |
) |
|||
|
Proceeds from sale of assets |
277 |
377 |
|||||
|
Proceeds from disposal of discontinued operations |
5 |
157 |
|||||
|
Investments in and acquisitions of subsidiaries, net of cash acquired |
(86 |
) |
(74 |
) |
|||
|
Purchases of nuclear decommissioning and other trust assets |
(299 |
) |
(319 |
) |
|||
|
Proceeds from sales by nuclear decommissioning and other trusts |
262 |
262 |
|||||
|
Dividends received from unconsolidated affiliates |
72 |
59 |
|||||
|
Other |
(12 |
) |
10 |
||||
|
Net cash used in investing activities |
(1,185 |
) |
(611 |
) |
|||
|
Cash Flows from Financing Activities: |
|||||||
|
Common dividends paid |
(268 |
) |
(195 |
) |
|||
|
Issuances of common stock |
694 |
110 |
|||||
|
Repurchases of common stock |
(95 |
) |
(5 |
) |
|||
|
Issuances of long-term debt |
762 |
997 |
|||||
|
Payments on long-term debt |
(532 |
) |
(1,670 |
) |
|||
|
Redemption of mandatorily redeemable preferred securities |
(200 |
) |
- |
||||
|
Increase in short-term debt, net |
662 |
397 |
|||||
|
Other |
(6 |
) |
(14 |
) |
|||
|
Net cash provided by (used in) financing activities |
1,017 |
(380 |
) |
||||
|
Increase in cash and cash equivalents |
353 |
10 |
|||||
|
Cash and cash equivalents, January 1 |
419 |
409 |
|||||
|
Cash and cash equivalents, December 31 |
$ 772 |
$ 419 |
|||||
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Table D |
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BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS |
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|
Three months ended |
Years ended |
|||||||||
|
December 31, |
|
December 31, |
||||||||
|
(Dollars in millions) |
2005 |
|
2004 |
|
2005 |
|
2004 |
|||
|
Net Income |
(Unaudited) |
|||||||||
|
California Utilities: |
||||||||||
|
San Diego Gas & Electric |
$ 72 |
$ 68 |
$ 262 |
$ 208 |
||||||
|
Southern California Gas |
48 |
58 |
211 |
232 |
||||||
|
Total California Utilities |
120 |
126 |
473 |
440 |
||||||
|
Sempra Global: |
||||||||||
|
Sempra Commodities |
244 |
171 |
460 |
320 |
||||||
|
Sempra Generation |
61 |
19 |
164 |
137 |
||||||
|
Sempra Pipelines & Storage |
16 |
28 |
64 |
63 |
||||||
|
Sempra LNG |
(10 |
) |
(8 |
) |
(25 |
) |
(8 |
) |
||
|
Total Sempra Global |
311 |
210 |
663 |
512 |
||||||
|
Sempra Financial |
4 |
10 |
23 |
36 |
||||||
|
Parent & Other (1) |
(74 |
) |
(7 |
) |
(230 |
) |
(68 |
) |
||
|
Continuing Operations |
361 |
339 |
929 |
920 |
||||||
|
Discontinued Operations (Atlantic Electric & Gas) |
(6 |
) |
7 |
(9 |
) |
(25 |
) |
|||
|
Consolidated Net Income |
$ 355 |
$ 346 |
$ 920 |
$ 895 |
||||||
|
(1) Reflects after-tax litigation costs of $103 million and $193 million recorded in the three months and the year |
||||||||||
|
ended December 31, 2005, respectively. |
||||||||||
|
Three months ended |
Years ended |
|||||||||
|
December 31, |
December 31, |
|||||||||
|
(Dollars in millions) |
2005 |
|
2004 |
2005 |
|
2004 |
||||
|
Capital Expenditures and Investments: |
(Unaudited) |
|||||||||
|
California Utilities: |
||||||||||
|
San Diego Gas & Electric |
$ 122 |
$ 131 |
$ 464 |
$ 414 |
||||||
|
Southern California Gas |
116 |
77 |
361 |
311 |
||||||
|
Total California Utilities |
238 |
208 |
825 |
725 |
||||||
|
Sempra Global: |
||||||||||
|
Sempra Generation |
46 |
40 |
255 |
194 |
||||||
|
Sempra Commodities |
11 |
28 |
72 |
131 |
||||||
|
Sempra Pipelines & Storage |
8 |
4 |
19 |
22 |
||||||
|
Sempra LNG |
137 |
20 |
293 |
55 |
||||||
|
Total Sempra Global |
202 |
92 |
639 |
402 |
||||||
|
Parent & Other |
13 |
5 |
26 |
30 |
||||||
|
Consolidated Capital Expenditures and Investments |
$ 453 |
$ 305 |
$ 1,490 |
$ 1,157 |
||||||
|
SEMPRA ENERGY |
|||||||||
|
Table E |
|||||||||
|
OTHER OPERATING STATISTICS (Unaudited) |
|||||||||
|
Three months ended |
Years ended |
||||||||
|
December 31, |
|
December 31, |
|||||||
|
CALIFORNIA UTILITIES |
2005 |
|
2004 |
|
2005 |
|
2004 |
||
|
Revenues (Dollars in millions) |
|||||||||
|
SDG&E (excludes intercompany sales) |
$ 746 |
$ 599 |
$ 2,493 |
$ 2,248 |
|||||
|
SoCalGas (excludes intercompany sales) |
$ 1,513 |
$ 1,161 |
$ 4,549 |
$ 3,947 |
|||||
|
Gas Sales |
105 |
125 |
395 |
413 |
|||||
|
Transportation and Exchange |
113 |
139 |
494 |
550 |
|||||
|
Total Deliveries (Bcf) |
218 |
264 |
889 |
963 |
|||||
|
Total Gas Customers (Thousands) |
6,383 |
6,297 |
|||||||
|
Electric Sales |
4,002 |
3,993 |
15,990 |
15,799 |
|||||
|
Direct Access |
720 |
881 |
3,213 |
3,441 |
|||||
|
Total Deliveries (Millions of kWhs) |
4,722 |
4,874 |
19,203 |
19,240 |
|||||
|
Total Electric Customers (Thousands) |
1,338 |
1,319 |
|||||||
|
SEMPRA GENERATION |
|
|
|
|
|
|
|
||
|
Power Sold (Millions of kWhs) |
6,418 |
5,943 |
23,384 |
20,739 |
|||||
|
SEMPRA PIPELINES & STORAGE |
|||||||||
|
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy). |
|
||||||||
|
Natural Gas Sales (Bcf) |
|||||||||
|
Argentina |
62 |
60 |
272 |
251 |
|||||
|
Mexico |
9 |
9 |
42 |
42 |
|||||
|
Chile |
1 |
1 |
3 |
3 |
|||||
|
Natural Gas Customers (Thousands) |
|||||||||
|
Argentina |
1,495 |
1,449 |
|||||||
|
Mexico |
98 |
97 |
|||||||
|
Chile |
38 |
37 |
|||||||
|
Electric Sales (Millions of kWhs) |
|||||||||
|
Peru |
1,113 |
1,024 |
4,298 |
4,044 |
|||||
|
Chile |
537 |
475 |
2,289 |
1,959 |
|||||
|
Electric Customers (Thousands) |
|||||||||
|
Peru |
767 |
748 |
|||||||
|
Chile |
521 |
508 |
|||||||
|
Table E (Continued) |
|||||||
|
SEMPRA COMMODITIES |
|
|
|
|
|
||
|
Three months ended |
Years ended |
||||||
|
December 31, |
December 31, |
||||||
|
Margin * (Dollars in millions) |
2005 |
2004 |
2005 |
2004 |
|||
|
Geographical: |
|||||||
|
North America |
$ 543 |
$ 293 |
$ 1,091 |
$ 689 |
|||
|
Europe/Asia |
142 |
165 |
255 |
338 |
|||
|
Total |
$ 685 |
$ 458 |
$ 1,346 |
$ 1,027 |
|||
|
Product Line: |
|||||||
|
Gas |
$ 317 |
$ 235 |
$ 439 |
$ 318 |
|||
|
Power |
209 |
79 |
443 |
170 |
|||
|
Oil - Crude & Products |
132 |
70 |
292 |
268 |
|||
|
Metals |
12 |
55 |
54 |
180 |
|||
|
Other |
15 |
19 |
118 |
91 |
|||
|
Total |
$ 685 |
$ 458 |
$ 1,346 |
$ 1,027 |
|||
|
* Margin consists of net revenues less related costs (primarily brokerage, transportation and storage) plus or minus net interest expense/income, and is used by management in evaluating its geographical and product line performance. |
|||||||
|
Three months ended |
Years ended |
||||||
|
December 31, |
December 31, |
||||||
|
Effect of EITF 02-03 (Dollars in millions) |
2005 |
2004 |
2005 **** |
2004 |
|||
|
Mark-to-Market Earnings ** |
$ 209 |
$ 105 |
$ 491 |
$ 288 |
|||
|
Effect of EITF 02-03 *** |
35 |
66 |
(31) |
32 |
|||
|
GAAP Net Income |
$ 244 |
$ 171 |
$ 460 |
$ 320 |
|||
|
** Represents the fair market value of all commodities transactions. This metric is a useful measurement of profitability because it simultaneously recognizes changes in the various components of transactions and reflects how the business is managed. |
|||||||
|
*** Consists of the income statement effect of not recognizing changes in the fair market value of certain physical inventories and capacity contracts for transportation and storage. |
|||||||
|
**** Includes after-tax gain of $41 million related to the sale of certain storage assets. |
|||||||
|
Fair |
|||||||
|
Market Value |
|||||||
|
December 31, |
Scheduled Maturity (in months) |
||||||
|
Net Unrealized Revenue (Dollars in millions) |
2005 |
0 - 12 |
13 - 24 |
25 - 36 |
> 36 |
||
|
Sources of Over-the-Counter (OTC) Fair Value: |
|||||||
|
Prices actively quoted |
$ 1,188 |
$ 725 |
$ 92 |
$ 297 |
$ 74 |
||
|
Prices provided by other external sources |
52 |
3 |
2 |
- |
47 |
||
|
Prices based on models and other valuation methods |
(12) |
- |
- |
- |
(12) |
||
|
Total OTC Fair Value (1) |
$ 1,228 |
$ 728 |
$ 94 |
$ 297 |
$ 109 |
||
|
Maturity of OTC Fair Value |
|||||||
|
Percentage |
100.0% |
59.3% |
7.6% |
24.2% |
8.9% |
||
|
Cumulative Percentages |
|
59.3% |
66.9% |
91.1% |
100.0% |
||
|
|
|
|
|
|
|
||
|
Exchange Contracts (2) |
$ 260 |
$ 464 |
$ 71 |
$ (272) |
$ (3) |
||
|
Total Net Unrealized Revenue at December 31, 2005 |
$ 1,488 |
||||||
|
(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts |
|||||||
|
(2) Cash received or (paid) associated with open Exchange Contracts |
|||||||
|
December 31, |
|||||||
|
Credit Quality of Unrealized Trading Assets (net of margin) |
2005 |
2004 |
|||||
|
Commodity Exchanges |
2% |
10% |
|||||
|
Investment Grade |
75% |
66% |
|||||
|
Below Investment Grade |
23% |
24% |
|||||
|
Three months ended |
Years ended |
||||||
|
December 31, |
December 31, |
||||||
|
Risk Adjusted Performance Indicators (Mark-to-Market Basis) |
2005 |
2004 |
2005 |
2004 |
|||
|
VaR at 95% (Dollars in millions) (1) |
$ 14.2 |
$ 11.2 |
$ 11.3 |
$ 7.9 |
|||
|
VaR at 99% (Dollars in millions) (2) |
$ 20.0 |
$ 15.7 |
$ 15.9 |
$ 11.2 |
|||
|
Risk Adjusted Return on Capital (RAROC) (3) |
63% |
34% |
46% |
38% |
|||
|
(1) Average Daily Value-at-Risk for the period using a 95% confidence level |
|||||||
|
(2) Average Daily Value-at-Risk for the period using a 99% confidence level |
|||||||
|
(3) Average Daily Trading Margin/Average Daily VaR at 95% confidence level |
|||||||
|
Physical Statistics |
|
|
|
|
|||
|
Natural Gas (BCF/Day) |
12.1 |
11.9 |
11.7 |
13.0 |
|||
|
Electric (Billions of kWhs) |
112.4 |
108.1 |
413.2 |
373.7 |
|||
|
Oil & Liquid Products (Millions Bbls/Day) |
2.0 |
2.1 |
2.0 |
2.1 |
|||
|
Table F (Unaudited) |
||||||||||||||||||||
|
Income Statement Data by Business Unit |
||||||||||||||||||||
|
Three Months Ended December 31, 2005 |
||||||||||||||||||||
|
(Dollars in millions) |
SDG&E |
SoCalGas |
Commodities |
Generation |
Pipelines & Storage |
LNG |
Financial |
Consolidating Adjustments, Parent & Other |
|
Total |
||||||||||
|
|
||||||||||||||||||||
|
Operating Revenues |
$ 751 |
$ 1,526 |
$ 1,029 |
$ 668 |
$ 93 |
$ - |
$ - |
$ (73 |
) |
|
$ 3,994 |
|||||||||
|
|
|
|||||||||||||||||||
|
Cost of Sales and Other Operating Expenses |
542 |
1,348 |
678 |
463 |
91 |
11 |
- |
(26 |
) |
|
3,107 |
|||||||||
|
|
||||||||||||||||||||
|
Litigation Expense |
9 |
11 |
(7 |
) |
25 |
1 |
1 |
- |
170 |
|
210 |
|||||||||
|
|
||||||||||||||||||||
|
Depreciation & Amortization |
67 |
66 |
7 |
16 |
4 |
- |
3 |
2 |
|
165 |
||||||||||
|
|
||||||||||||||||||||
|
Gains on Sale of Assets, Net |
- |
- |
(8 |
) |
- |
- |
- |
- |
- |
|
(8 |
) |
||||||||
|
|
||||||||||||||||||||
|
Impairment Losses |
2 |
- |
- |
66 |
- |
- |
2 |
1 |
|
71 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Operating Income |
131 |
101 |
359 |
98 |
(3 |
) |
(12 |
) |
(5 |
) |
(220 |
) |
|
449 |
||||||
|
|
||||||||||||||||||||
|
Other Income, Net |
9 |
|
1 |
|
- |
|
11 |
|
4 |
|
1 |
|
1 |
|
- |
|
|
27 |
||
|
|
||||||||||||||||||||
|
Income before Interest & Taxes (1) |
140 |
102 |
359 |
109 |
1 |
(11 |
) |
(4) |
(220 |
) |
|
476 |
||||||||
|
|
||||||||||||||||||||
|
Net Interest Expense (2) |
18 |
12 |
15 |
5 |
(1 |
) |
1 |
1 |
19 |
|
70 |
|||||||||
|
|
||||||||||||||||||||
|
Income Tax Expense/(Benefit) |
50 |
42 |
100 |
43 |
(1 |
) |
(2 |
) |
(9) |
(165 |
) |
|
58 |
|||||||
|
|
||||||||||||||||||||
|
Equity in Income of Certain Unconsolidated Subsidiaries |
- |
- |
- |
- |
13 |
- |
- |
- |
|
13 |
||||||||||
|
|
||||||||||||||||||||
|
Discontinued Operations |
- |
- |
- |
- |
- |
- |
- |
(6 |
) |
|
(6 |
) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Net Income |
$ 72 |
|
$ 48 |
|
$ 244 |
|
$ 61 |
|
$ 16 |
|
$ (10 |
) |
$ 4 |
|
$ (80 |
) |
|
$ 355 |
||
|
Three Months Ended December 31, 2004 |
||||||||||||||||||||
|
(Dollars in millions) |
SDG&E |
SoCalGas |
Commodities |
Generation |
Pipelines & Storage |
LNG |
Financial |
Consolidating Adjustments, Parent & Other |
|
Total |
||||||||||
|
|
||||||||||||||||||||
|
Operating Revenues |
$ 608 |
$ 1,176 |
$ 664 |
$ 488 |
$ 69 |
$ - |
$ - |
$ (99 |
) |
|
$ 2,906 |
|||||||||
|
|
||||||||||||||||||||
|
Cost of Sales and Other Operating Expenses |
442 |
1,027 |
395 |
413 |
62 |
14 |
1 |
(71 |
) |
|
2,283 |
|||||||||
|
|
||||||||||||||||||||
|
Litigation Expense |
19 |
41 |
4 |
17 |
- |
- |
- |
45 |
|
126 |
||||||||||
|
|
||||||||||||||||||||
|
Depreciation & Amortization |
56 |
30 |
7 |
12 |
3 |
- |
10 |
2 |
|
120 |
||||||||||
|
|
||||||||||||||||||||
|
Gains on Sale of Assets, Net |
(1 |
) |
- |
- |
- |
- |
- |
- |
- |
|
(1 |
) |
||||||||
|
|
||||||||||||||||||||
|
Impairment Losses (Adjustments) |
(6 |
) |
2 |
- |
- |
- |
- |
5 |
- |
|
1 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Operating Income |
98 |
76 |
258 |
46 |
4 |
(14 |
) |
(16 |
) |
(75 |
) |
|
377 |
|||||||
|
|
||||||||||||||||||||
|
Other Income, Net |
7 |
|
12 |
|
- |
|
5 |
|
(2 |
) |
- |
|
(1 |
) |
10 |
|
|
31 |
||
|
|
||||||||||||||||||||
|
Income before Interest & Taxes (1) |
105 |
88 |
258 |
51 |
2 |
(14 |
) |
(17 |
) |
(65 |
) |
|
408 |
|||||||
|
|
||||||||||||||||||||
|
Net Interest Expense (2) |
17 |
9 |
8 |
8 |
(1 |
) |
- |
2 |
37 |
|
80 |
|||||||||
|
|
||||||||||||||||||||
|
Income Tax Expense/(Benefit) |
20 |
21 |
79 |
24 |
(12 |
) |
(6 |
) |
(29 |
) |
(95 |
) |
|
2 |
||||||
|
|
||||||||||||||||||||
|
Equity in Income of Certain Unconsolidated Subsidiaries |
- |
- |
- |
- |
13 |
- |
- |
- |
|
13 |
||||||||||
|
|
||||||||||||||||||||
|
Discontinued Operations |
- |
- |
- |
- |
- |
- |
- |
7 |
|
7 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Net Income |
$ 68 |
|
$ 58 |
|
$ 171 |
|
$ 19 |
|
$ 28 |
|
$ (8 |
) |
$ 10 |
|
$ - |
|
|
$ 346 |
||
|
(1) Management believes "Income before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations. |
||||||||||||||||||||
|
(2) Net Interest Expense includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |
||||||||||||||||||||
|
Table F (Unaudited) (continued) |
||||||||||||||||||||
|
Income Statement Data by Business Unit |
||||||||||||||||||||
|
Year Ended December 31, 2005 |
||||||||||||||||||||
|
(Dollars in millions) |
SDG&E |
SoCalGas |
Commodities |
Generation |
Pipelines & Storage |
LNG |
Financial |
Consolidating Adjustments, Parent & Other |
|
Total |
||||||||||
|
|
||||||||||||||||||||
|
Operating Revenues |
$ 2,512 |
$ 4,617 |
$ 2,724 |
$ 1,921 |
$ 329 |
$ - |
$ - |
$ (366 |
) |
|
$ 11,737 |
|||||||||
|
|
||||||||||||||||||||
|
Cost of Sales and Other Operating Expenses |
1,802 |
3,905 |
2,077 |
1,486 |
308 |
34 |
2 |
(158 |
) |
|
9,456 |
|||||||||
|
|
||||||||||||||||||||
|
Litigation Expense |
52 |
99 |
38 |
43 |
2 |
1 |
- |
316 |
|
551 |
||||||||||
|
|
||||||||||||||||||||
|
Depreciation & Amortization |
264 |
264 |
28 |
57 |
14 |
- |
10 |
9 |
|
646 |
||||||||||
|
|
||||||||||||||||||||
|
Gains on Sale of Assets, Net |
(1 |
) |
- |
(106 |
) |
- |
(4 |
) |
- |
- |
(1 |
) |
(112 |
) |
||||||
|
|
||||||||||||||||||||
|
Impairment Losses |
2 |
2 |
- |
66 |
6 |
- |
7 |
2 |
|
85 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Operating Income |
393 |
347 |
687 |
269 |
3 |
(35 |
) |
(19 |
) |
(534 |
) |
|
1,111 |
|||||||
|
|
||||||||||||||||||||
|
Other Income, Net |
14 |
|
(2 |
) |
- |
|
26 |
|
7 |
|
1 |
|
(8 |
) |
13 |
|
|
51 |
||
|
|
||||||||||||||||||||
|
Income before Interest & Taxes (1) |
407 |
345 |
687 |
295 |
10 |
(34 |
) |
(27 |
) |
(521 |
) |
|
1,162 |
|||||||
|
|
||||||||||||||||||||
|
Net Interest Expense (2) |
56 |
37 |
35 |
20 |
(2 |
) |
2 |
6 |
92 |
|
246 |
|||||||||
|
|
||||||||||||||||||||
|
Income Tax Expense/(Benefit) |
89 |
97 |
192 |
111 |
3 |
(11 |
) |
(56 |
) |
(383 |
) |
|
42 |
|||||||
|
|
||||||||||||||||||||
|
Equity in Income of Certain Unconsolidated Subsidiaries |
- |
- |
- |
- |
55 |
- |
- |
- |
|
55 |
||||||||||
|
|
||||||||||||||||||||
|
Discontinued Operations |
- |
- |
- |
- |
- |
- |
- |
(9 |
) |
|
(9 |
) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Net Income |
$ 262 |
|
$ 211 |
|
$ 460 |
|
$ 164 |
|
$ 64 |
|
$ (25 |
) |
$ 23 |
|
$ (239 |
) |
|
$ 920 |
||
|
Year Ended December 31, 2004 |
||||||||||||||||||||
|
(Dollars in millions) |
SDG&E |
SoCalGas |
Commodities |
Generation |
Pipelines & Storage |
LNG |
Financial |
Consolidating Adjustments, Parent & Other |
|
Total |
||||||||||
|
|
||||||||||||||||||||
|
Operating Revenues |
$ 2,274 |
$ 3,997 |
$ 1,689 |
$ 1,662 |
$ 269 |
$ - |
$ - |
$ (457 |
) |
|
$ 9,434 |
|||||||||
|
|
||||||||||||||||||||
|
Cost of Sales and Other Operating Expenses |
1,610 |
3,305 |
1,153 |
1,338 |
252 |
26 |
3 |
(298 |
) |
|
7,389 |
|||||||||
|
|
||||||||||||||||||||
|
Litigation Expense |
19 |
41 |
17 |
29 |
- |
- |
- |
44 |
|
150 |
||||||||||
|
|
||||||||||||||||||||
|
Depreciation & Amortization |
259 |
255 |
23 |
44 |
14 |
- |
17 |
9 |
|
621 |
||||||||||
|
|
||||||||||||||||||||
|
Gains on Sale of Assets, Net |
(1 |
) |
(15 |
) |
- |
- |
- |
- |
- |
1 |
|
(15 |
) |
|||||||
|
|
||||||||||||||||||||
|
Impairment Losses (Adjustments) |
(6 |
) |
2 |
- |
- |
- |
- |
12 |
- |
|
8 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Operating Income |
393 |
409 |
496 |
251 |
3 |
(26 |
) |
(32 |
) |
(213 |
) |
|
1,281 |
|||||||
|
|
||||||||||||||||||||
|
Other Income, Net |
11 |
|
13 |
|
- |
|
4 |
|
3 |
|
13 |
|
(20 |
) |
9 |
|
|
33 |
||
|
|
||||||||||||||||||||
|
Income before Interest & Taxes (1) |
404 |
422 |
496 |
255 |
6 |
(13 |
) |
(52 |
) |
(204 |
) |
|
1,314 |
|||||||
|
|
||||||||||||||||||||
|
Net Interest Expense (2) |
48 |
36 |
15 |
27 |
- |
- |
8 |
129 |
|
263 |
||||||||||
|
|
||||||||||||||||||||
|
Income Tax Expense/(Benefit) |
148 |
154 |
161 |
91 |
5 |
(5 |
) |
(96) |
(265 |
) |
|
193 |
||||||||
|
|
||||||||||||||||||||
|
Equity in Income of Certain Unconsolidated Subsidiaries |
- |
- |
- |
- |
62 |
- |
- |
- |
|
62 |
||||||||||
|
|
||||||||||||||||||||
|
Discontinued Operations |
- |
- |
- |
- |
- |
- |
- |
(25 |
) |
|
(25 |
) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Net Income |
$ 208 |
|
$ 232 |
|
$ 320 |
|
$ 137 |
|
$ 63 |
|
$ (8 |
) |
$ 36 |
|
$ (93 |
) |
|
$ 895 |
||
|
(1) Management believes "Income before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations. |
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|
(2) Net Interest Expense includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |
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