SDG&E 8-K 11/03/2011



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


FORM 8-K

CURRENT REPORT



Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

  

  

  

  

Date of Report

 

(Date of earliest event reported):

November 3, 2011


  

  

SAN DIEGO GAS & ELECTRIC COMPANY

(Exact name of registrant as specified in its charter)

  

  

CALIFORNIA

 

1-3779

 

95-1184800

(State or other jurisdiction of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

  

  

8326 CENTURY PARK COURT, SAN DIEGO, CA

 

92123

(Address of principal executive offices)

 

(Zip Code)

  

  


Registrant's telephone number, including area code

(619) 696-2000

  

  

 

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

  

  





  

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

 

 

[   ]

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

 

 

[   ]

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

 

 

[   ]

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

 

 

[   ]

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

 

 


  







FORM 8-K


Item 2.02   Results of Operations and Financial Condition.


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


On November 3, 2011, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated earnings of $296 million, or $1.22 per diluted share of common stock, for the third quarter of 2011. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.


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


The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding San Diego Gas & Electric Company's results of operations and financial condition.



Item 9.01  Financial Statements and Exhibits.  

  

         Exhibits  


          99.1

November 3, 2011 Sempra Energy News Release (including tables)


          99.2

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







SIGNATURE

  

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

  

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)

  

  


Date: November 3, 2011

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 

  







Exhibit 99.1


Exhibit 99.1


NEWS RELEASE



Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 340-8875

 

www.sempra.com

 

 

Financial Contacts:

Scott Tomayko/Victor Vilaplana

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com







SEMPRA ENERGY’S THIRD-QUARTER 2011 EARNINGS PER SHARE RISE


·

Quarterly Earnings per Share of $1.22 Reflect Strong Operating Results, Growth Across Businesses

·

Company Reaffirms 2011 Earnings-per-Share Guidance of $4 to $4.30, Excluding Gain on South American Utility Acquisitions



SAN DIEGO, Nov. 3, 2011 – Sempra Energy (NYSE: SRE) today reported

third-quarter 2011 earnings of $296 million, or $1.22 per diluted share, up from $131 million, or $0.53 per diluted share, in the third quarter 2010.

Third-quarter 2010 results included an after-tax charge of $139 million, or $0.56 per diluted share, from the write-down of Sempra Energy’s investment in the RBS Sempra Commodities joint venture, which was sold last year.

Sempra Energy’s earnings for the first nine months of 2011 were $1.1 billion, or $4.40 per diluted share, up from $459 million, or $1.84 per diluted share, in the same period last year.  Excluding a second-quarter 2011 gain of $277 million related to the South American utility acquisitions, Sempra Energy’s nine-month earnings in 2011 were $788 million, or $3.26 per diluted share.  

“Based on our excellent results in the third quarter and continued progress on our major projects, we expect to meet our financial and operational objectives for the year,” said Debra L. Reed, chief executive officer of Sempra Energy.

In September, Sempra Energy announced several key executive appointments.  Additionally, the company announced that, effective Jan. 1, 2012, its Sempra Generation, Sempra Pipelines & Storage and Sempra LNG subsidiaries will be consolidated into two new operating units:  Sempra International and Sempra U.S. Gas & Power.  


OPERATING HIGHLIGHTS

San Diego Gas & Electric

Earnings for San Diego Gas & Electric (SDG&E) increased to $113 million in the third quarter 2011 from $106 million in last year’s third quarter, due primarily to higher earnings for construction projects in progress, including the Sunrise Powerlink transmission line.   

For the first nine months of 2011, SDG&E’s earnings were $273 million, compared with $264 million in the first nine months of 2010.


Southern California Gas Co.

 Southern California Gas Co. (SoCalGas) earnings were $81 million in the third quarter 2011, compared with $78 million in the third quarter 2010.

For the nine-month period, SoCalGas’ earnings were $208 million in 2011, compared with $212 million last year.  


Sempra Generation

In the third quarter 2011, Sempra Generation’s earnings were $49 million, compared with $59 million in the prior-year’s quarter, primarily due to lower earnings from the company’s natural gas-fired power plants, partially offset by an income-tax benefit.

For the first nine months of 2011, Sempra Generation’s earnings rose to $143 million from $60 million in the first nine months of 2010.   The nine-month results in 2010 included a charge of $86 million related to a litigation settlement.


Sempra Pipelines & Storage

Third-quarter earnings for Sempra Pipelines & Storage increased to $66 million in 2011 from $43 million last year, due primarily to the company’s increased ownership in the South American utilities and a foreign-currency gain in Chile.  

For the nine-month period, earnings for Sempra Pipelines & Storage rose to $457 million in 2011 from $120 million in 2010.   The nine-month earnings for 2011 included the second-quarter gain of $277 million related to the South American utility acquisitions.


Sempra LNG

Sempra LNG earned $24 million in the third quarter 2011, up from $5 million in last year’s third quarter, due primarily to additional revenues for contracted cargoes that were not delivered.  

In the first nine months of 2011, Sempra LNG earnings rose to $75 million from $50 million in the same period last year.


Earnings Outlook


Sempra Energy today reaffirmed its earnings-per-share guidance for 2011 of $4 to $4.30, excluding the gain related to the South American utility acquisitions in the second quarter 2011.  On a GAAP basis, the company’s earnings-per-share guidance for 2011 is $5.14 to $5.44.


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 1645521.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2010 revenues of $9 billion.  The Sempra Energy companies’ 17,500 employees serve more than 31 million consumers worldwide.


Non-GAAP Financial Measures

The 2011 nine-month earnings for Sempra Energy and Sempra Energy’s 2011 earnings-per-share guidance excluding the gain on the South American utility acquisitions are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the third-quarter financial tables.


###


This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” ”will,” “would,” ”could,” “should,” “potential,” “target,” “depends,” or similar expressions, or discussions of strategies, plans or intentions. These forward-looking statements represent our estimates and assumptions only as of the date of this news release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of our investments; inflation, interest and exchange rates; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; wars, terrorist attacks and cybersecurity threats; 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 and construction, maintenance and capital projects; the inability or determination not to enter into long-term supply and sales agreements or long-term 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.


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








SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 September 30,

 

September 30,

(Dollars in millions, except per share amounts)

2011

 

2010

 

2011

 

2010

 

                            (unaudited)

REVENUES

 

 

 

 

 

 

 

Utilities

$       2,065

 

$        1,609

 

$       5,933

 

$         5,150

Energy-related businesses

511

 

507

 

1,499

 

1,508

    Total revenues

2,576

 

2,116

 

7,432

 

6,658

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

Utilities:

 

 

 

 

 

 

 

    Cost of natural gas

(322)

 

(305)

 

(1,367)

 

(1,489)

    Cost of electric fuel and purchased power

(408)

 

(203)

 

(976)

 

(480)

Energy-related businesses:

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(252)

 

(273)

 

(694)

 

(801)

    Other cost of sales

(68)

 

(22)

 

(123)

 

(67)

Litigation expense

(17)

 

(17)

 

(30)

 

(184)

Other operation and maintenance

(674)

 

(590)

 

(1,973)

 

(1,782)

Depreciation and amortization

(251)

 

(218)

 

(730)

 

(643)

Franchise fees and other taxes

(84)

 

(76)

 

(259)

 

(243)

Equity losses, before income tax

(12)

 

(273)

 

(4)

 

(266)

Remeasurement of equity method investments

-

 

-

 

277

 

-

Other income, net

12

 

66

 

86

 

82

Interest income

6

 

5

 

21

 

13

Interest expense

(118)

 

(111)

 

(344)

 

(323)

Income before income taxes and equity earnings (losses) of certain unconsolidated subsidiaries

388

 

99

 

1,316

 

475

Income tax (expense) benefit

(68)

 

32

 

(269)

 

(85)

Equity earnings (losses), net of income tax

6

 

(4)

 

45

 

42

Net income

326

 

127

 

1,092

 

432

(Earnings) losses attributable to noncontrolling interests

(29)

 

6

 

(21)

 

34

Preferred dividends of subsidiaries

(1)

 

(2)

 

(6)

 

(7)

Earnings

$          296

 

$           131

 

$       1,065

 

$            459

 

 

 

 

 

 

 

 

Basic earnings per common share

$         1.23

 

$          0.53

 

$         4.44

 

$           1.86

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

239,545

 

246,668

 

239,693

 

246,513

 

 

 

 

 

 

 

 

Diluted earnings per common share

$         1.22

 

$          0.53

 

$         4.40

 

$           1.84

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

241,880

 

249,811

 

241,955

 

249,773

Dividends declared per share of common stock

$         0.48

 

$          0.39

 

$         1.44

 

$           1.17

 

 

 

 

 

 

 

 




SEMPRA ENERGY

 

Table A (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED

 

EARNINGS AND 2011 EARNINGS PER SHARE GUIDANCE EXCLUDING GAIN FROM

 

 

 

REMEASUREMENT OF EQUITY METHOD INVESTMENTS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share in the nine months ended September 30, 2011 and 2011 earnings per share guidance excluding a $277 million gain from the remeasurement of equity method investments in Chilquinta Energía and Luz del Sur in the second quarter of 2011 are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). Adjusted Earnings and Adjusted Earnings Per Share in 2010 exclude a $139 million write-down of our investment in RBS Sempra Commodities in the third quarter and a $96 million charge for a litigation settlement in the first quarter. Statistics using these amounts, including percentage changes from period to period, also result in non-GAAP measures. Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of Sempra Energy's business operations from 2011 to 2010 and to future periods. Accordingly, 2011 guidance of $4 to $4.30 per diluted share excludes the second quarter gain of $277 million, or $1.14 per diluted share, based on shares outstanding through September 30, 2011. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

(Dollars in millions, except per share amounts)

2011

 

2010

 

2011

 

2010

 

Sempra Energy GAAP Earnings

$       296

 

$      131

 

$    1,065

 

$       459

 

Less: Remeasurement Gain in 2011

-

 

-

 

(277)

 

-

 

Add: Write-down of Joint Venture Investment in 2010

-

 

139

 

-

 

139

 

Add: Litigation Settlement Charge in 2010

-

 

-

 

-

 

96

 

Sempra Energy Adjusted Earnings

$       296

 

$      270

 

$       788

 

$       694

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

Sempra Energy GAAP Earnings

$      1.22

(1)

$     0.53

 

$      4.40

(1)

$      1.84

 

Sempra Energy Adjusted Earnings

$      1.22

(2)

$     1.09

 

$      3.26

(2)

$      2.78

 

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

241,880

 

249,811

 

241,955

 

249,773

 

 

 

 

 

 

 

 

 

 

(1) Percentage increases from third quarter and year-to-date 2010 earnings per share were 130% and 139%, respectively.

 

(2) Percentage increases from third quarter and year-to-date 2010 earnings per share were 12% and 17%, respectively.

 

 

 

 

 

 

 

 

 

 

 




SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

(Dollars in millions)

2011

 

2010(1)

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 $               657

 

 $               912

 

Restricted cash

                  133

 

                  131

 

Accounts receivable

               1,097

 

               1,032

 

Due from unconsolidated affiliates

                      -

 

                    34

 

Income taxes receivable

                  301

 

                  248

 

Deferred income taxes

                      -

 

                    75

 

Inventories

                  369

 

                  258

 

Regulatory assets

                    83

 

                    90

 

Fixed-price contracts and other derivatives

                    77

 

                    81

 

Settlement receivable related to wildfire litigation

                      -

 

                  300

 

Other

                  221

 

                  192

 

 

 

Total current assets

               2,938

 

               3,353

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

Restricted cash

                     2

 

                    27

 

Regulatory assets arising from pension and other postretirement benefit obligations

                  824

 

                  869

 

Regulatory assets arising from wildfire litigation costs

                  500

 

                  364

 

Other regulatory assets

                  952

 

                  934

 

Nuclear decommissioning trusts

                  760

 

                  769

 

Investment in RBS Sempra Commodities LLP

                  322

 

                  787

 

Other investments

               1,485

 

               2,164

 

Goodwill

               1,013

 

                    87

 

Other intangible assets

                  448

 

                  453

 

Sundry

                  669

 

                  600

 

 

 

Total investments and other assets

               6,975

 

               7,054

Property, plant and equipment, net

             22,703

 

             19,876

Total assets

 $           32,616

 

 $           30,283

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 $               641

 

 $               158

 

Accounts payable

               1,008

 

                  864

 

Due to unconsolidated affiliates

                      -

 

                    36

 

Deferred income taxes

                    94

 

                    -   

 

Dividends and interest payable

                  261

 

                  188

 

Accrued compensation and benefits

                  266

 

                  311

 

Regulatory balancing accounts, net

                  226

 

                  241

 

Current portion of long-term debt

                  137

 

                  349

 

Fixed-price contracts and other derivatives

                    86

 

                  106

 

Customer deposits

                  137

 

                  129

 

Reserve for wildfire litigation

                  507

 

                  639

 

Other

                  632

 

                  765

 

 

 

Total current liabilities

               3,995

 

               3,786

Long-term debt

             10,033

 

               8,980

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

Customer advances for construction

                  142

 

                  154

 

Pension and other postretirement benefit obligations, net of plan assets

               1,085

 

               1,105

 

Deferred income taxes

               1,852

 

               1,561

 

Deferred investment tax credits

                    47

 

                    50

 

Regulatory liabilities arising from removal obligations

               2,658

 

               2,630

 

Asset retirement obligations

               1,510

 

               1,449

 

Other regulatory liabilities

                  103

 

                  138

 

Fixed-price contracts and other derivatives

                  310

 

                  290

 

Deferred credits and other

                  818

 

                  823

 

 

 

Total deferred credits and other liabilities

               8,525

 

               8,200

Contingently redeemable preferred stock of subsidiary

                    79

 

                    79

Equity:

 

 

 

 

Total Sempra Energy shareholders' equity

               9,630

 

               9,027

 

Preferred stock of subsidiaries

                    20

 

                  100

 

Other noncontrolling interests

                  334

 

                  111

 

 

 

Total equity

               9,984

 

               9,238

Total liabilities and equity

 $           32,616

 

 $           30,283

 

 

 

 

 

 

 

(1)

Derived from audited financial statements.




SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Nine months ended
September 30,

(Dollars in millions)

 

2011

 

2010

 

 

 

            (unaudited)

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

$         1,092

 

$           432

Adjustments to reconcile net income to net cash provided

 

 

 

 

  by operating activities:

 

 

 

 

 

Depreciation and amortization

 

730

 

643

 

Deferred income taxes and investment tax credits

 

224

 

133

 

Equity (earnings) losses

 

(41)

 

224

 

Remeasurement of equity method investments

 

(277)

 

-

 

Fixed-price contracts and other derivatives

 

(7)

 

19

 

Other

 

(43)

 

(24)

Net change in other working capital components

 

(108)

 

(77)

Distributions from RBS Sempra Commodities LLP

 

53

 

198

Changes in other assets

 

31

 

76

Changes in other liabilities

 

(11)

 

(22)

 

Net cash provided by operating activities

 

1,643

 

1,602

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

(2,031)

 

(1,354)

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

 

(696)

 

(385)

Distributions from RBS Sempra Commodities LLP

 

374

 

849

Distributions from other investments

 

47

 

259

Purchases of nuclear decommissioning and other trust assets

 

(399)

 

(261)

Proceeds from sales by nuclear decommissioning and other trusts

 

398

 

261

Decrease in restricted cash

 

473

 

55

Increase in restricted cash

 

(450)

 

(51)

Other

 

(20)

 

(6)

 

Net cash used in investing activities

 

(2,304)

 

(633)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(325)

 

(269)

Redemption of subsidiary preferred stock

 

(80)

 

-

Preferred dividends paid by subsidiaries

 

(6)

 

(7)

Issuances of common stock

 

22

 

29

Repurchases of common stock

 

(18)

 

(502)

Issuances of debt (maturities greater than 90 days)

 

1,525

 

771

Payments on debt (maturities greater than 90 days)

 

(366)

 

(727)

(Decrease) increase in short-term debt, net

 

(300)

 

184

Purchase of noncontrolling interests

 

(43)

 

-

Other

 

(5)

 

(11)

 

Net cash provided by (used in) financing activities

 

404

 

(532)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

2

 

-

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(255)

 

437

Cash and cash equivalents, January 1

 

912

 

110

Cash and cash equivalents, September 30

 

$           657

 

$           547

 

 

 

 

 

 




SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

(Dollars in millions)

2011

 

2010

 

2011

 

2010

 

 

 

                                (unaudited)

Earnings (Losses)

 

 

 

 

 

 

 

San Diego Gas & Electric

$                113

 

$                106

 

$             273

 

$             264

Southern California Gas

81

 

78

 

208

 

212

Sempra Generation

49

 

59

 

143

 

60

Sempra Pipelines & Storage

66

 

43

 

457

 

120

Sempra LNG

24

 

5

 

75

 

50

Parent & Other

(37)

 

(160)

 

(91)

 

(247)

Earnings

$                296

 

$                131

 

$          1,065

 

$             459

 

 

 

 

 

 

 

 

 

 

 

 

 

 Three months ended  

 

Nine months ended

 

 

 

September 30,

 

September 30,

(Dollars in millions)

2011

 

2010

 

2011

 

2010

 

 

 

                                (unaudited)

Capital Expenditures and Investments

 

 

 

 

 

 

 

San Diego Gas & Electric

$                448

 

$                300

 

$          1,162

 

$             822

Southern California Gas

174

 

121

 

499

 

337

Sempra Generation

92

 

27

 

168

 

32

Sempra Pipelines & Storage

102

 

75

 

887

 

535

Sempra LNG

3

 

5

 

9

 

9

Parent & Other

1

 

2

 

2

 

4

Consolidated Capital Expenditures and Investments

$                820

 

$                530

 

$          2,727

 

$          1,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




SEMPRA ENERGY

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

UTILITIES

 

2011

 

2010

 

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

Sempra Utilities - SDG&E and SoCalGas

Gas Sales (bcf)(1)

 

         62

 

      64

 

 

        285

 

      281

Transportation (bcf)(1)

 

       171

 

    171

 

 

        465

 

      465

Total Deliveries (bcf)(1)

 

       233

 

    235

 

 

        750

 

      746

 

 

 

 

 

 

 

 

 

 

 

 

Total Gas Customers (Thousands)

 

 

 

 

 

 

     6,649

 

   6,629

 

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)(1)

 

    4,246

 

 4,282

 

 

   12,221

 

 12,111

Direct Access (Millions of kWhs)

 

       859

 

    881

 

 

     2,427

 

   2,365

Total Deliveries (Millions of kWhs)(1)

 

    5,105

 

 5,163

 

 

   14,648

 

 14,476

 

 

 

 

 

 

 

 

 

 

 

 

Total Electric Customers (Thousands)

 

 

 

 

 

 

     1,393

 

   1,385

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Pipelines & Storage - Utilities (2)

Natural Gas Sales (bcf)

 

 

 

 

 

 

 

 

 

 

Argentina

 

       110

 

    104

 

 

        267

 

      251

 

Mexico

 

          5

 

       5

 

 

         16

 

       16

 

Mobile Gas

 

         10

 

       9

 

 

         29

 

       27

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

 

 

     1,799

 

   1,747

 

Mexico

 

 

 

 

 

 

         89

 

       89

 

Mobile Gas

 

 

 

 

 

 

         90

 

       90

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

 

Peru

 

    1,549

 

 1,483

 

 

     4,713

 

   4,445

 

Chile

 

       597

 

    566

 

 

     1,881

 

   1,736

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

 

        917

 

      884

 

Chile

 

 

 

 

 

 

        606

 

      589

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

 

 

 

 

 

 

 

 

ENERGY - RELATED BUSINESSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Generation

 

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

    4,008

 

 5,350

 

 

   11,649

 

 15,272

 

 

 

 

 

 

 

 

 

 

 

 




Exhibit 99.2


Exhibit 99.2


Table F QTD


         SEMPRA ENERGY

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 $ 868 

 

 $ 844 

 

 $ 259 

 

 $ 426 

 

 $ 207 

 

 $ (28)

 

 

 $ 2,576 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

  (540)

 

  (624)

 

  (188)

 

  (324)

 

  (146)

 

  14 

 

 

  (1,808)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

  (10)

 

  (2)

 

  (2)

 

  (1)

 

  (2)

 

  - 

 

 

  (17)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

  (108)

 

  (83)

 

  (18)

 

  (27)

 

  (13)

 

  (2)

 

 

  (251)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

  - 

 

  - 

 

  (6)

 

  11 

 

  - 

 

  (17)

 

 

  (12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

  26 

 

  3 

 

  - 

 

  19 

 

  (4)

 

  (32)

 

 

  12 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

  236 

 

  138 

 

  45 

 

  104 

 

  42 

 

  (65)

 

 

  500 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

  (39)

 

  (16)

 

  (4)

 

  (14)

 

  (9)

 

  (31)

 

 

  (113)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

  (63)

 

  (41)

 

  8 

 

  (23)

 

  (9)

 

  60 

 

 

  (68)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

  - 

 

  - 

 

  - 

 

  6 

 

  - 

 

  - 

 

 

  6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Attributable to Noncontrolling Interests

  (21)

 

  - 

 

  - 

 

  (7)

 

  - 

 

  (1)

 

 

  (29)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 $ 113 

 

 $ 81 

 

 $ 49 

 

 $ 66 

 

 $ 24 

 

 $ (37)

 

 

 $ 296 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 $ 811 

 

 $ 776 

 

 $ 293 

 

 $ 77 

 

 $ 183 

 

 $ (24)

 

 

 $ 2,116 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

  (505)

 

  (564)

 

  (199)

 

  (55)

 

  (150)

 

  4 

 

 

  (1,469)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

  (12)

 

  - 

 

  (2)

 

  - 

 

  (2)

 

  (1)

 

 

  (17)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

  (96)

 

  (78)

 

  (16)

 

  (11)

 

  (13)

 

  (4)

 

 

  (218)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

  - 

 

  - 

 

  (1)

 

  10 

 

  - 

 

  (282)

(3)

 

  (273)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Expense) Income, Net

  (2)

 

  2 

 

  2 

 

  55 

 

  2 

 

  7 

 

 

  66 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

  196 

 

  136 

 

  77 

 

  76 

 

  20 

 

  (300)

 

 

  205 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

  (39)

 

  (16)

 

  2 

 

  (6)

 

  (12)

 

  (37)

 

 

  (108)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

  (56)

 

  (42)

 

  (20)

 

  (23)

 

  (3)

 

  176 

 

 

  32 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Losses Recorded Net of Income Tax

  - 

 

  - 

 

  - 

 

  (4)

 

  - 

 

  - 

 

 

  (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses Attributable to Noncontrolling Interests

  5 

 

  - 

 

  - 

 

  - 

 

  - 

 

  1 

 

 

  6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 $ 106 

 

 $ 78 

 

 $ 59 

 

 $ 43 

 

 $ 5 

 

 $ (160)

 

 

 $ 131 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) Includes $305 million related to the write-down of our investment in RBS Sempra Commodities.





         SEMPRA ENERGY

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 2,405 

 

 $ 2,776 

 

 $ 796 

 

 $ 980 

 

 $ 552 

 

 $ (77)

 

 

 $ 7,432 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

  (1,588)

 

  (2,170)

 

  (559)

 

  (728)

 

  (371)

 

  24 

 

 

  (5,392)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  (15)

 

  (3)

 

  (4)

 

  (1)

 

  (6)

 

  (1)

 

 

  (30)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  (316)

 

  (246)

 

  (55)

 

  (66)

 

  (38)

 

  (9)

 

 

  (730)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

  - 

 

  - 

 

  (6)

 

  30 

 

  - 

 

  (28)

 

 

  (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

  55 

 

  9 

 

  1 

 

  296 

(1)

  (1)

 

  3 

 

 

  363 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

  541 

 

  366 

 

  173 

 

  511 

 

  136 

 

  (88)

 

 

  1,639 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

  (108)

 

  (52)

 

  (4)

 

  (32)

 

  (29)

 

  (104)

 

 

  (329)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

  (154)

 

  (106)

 

  (26)

 

  (52)

 

  (32)

 

  101 

 

 

  (269)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

  - 

 

  - 

 

  - 

 

  45 

 

  - 

 

  - 

 

 

  45 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Attributable to Noncontrolling Interests

 

  (6)

 

  - 

 

  - 

 

  (15)

 

  - 

 

  - 

 

 

  (21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $ 273 

 

 $ 208 

 

 $ 143 

 

 $ 457 

 

 $ 75 

 

 $ (91)

 

 

 $ 1,065 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 2,245 

 

 $ 2,792 

 

 $ 879 

 

 $ 262 

 

 $ 554 

 

 $ (74)

 

 

 $ 6,658 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

  (1,468)

 

  (2,175)

 

  (649)

 

  (187)

 

  (409)

 

  26 

 

 

  (4,862)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Litigation Expense

 

  (12)

 

  (1)

 

  (143)

 

  (1)

 

  (4)

 

  (23)

 

 

  (184)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

  (283)

 

  (230)

 

  (47)

 

  (32)

 

  (38)

 

  (13)

 

 

  (643)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (Losses) Earnings Recorded Before Income Tax

 

  - 

 

  - 

 

  (2)

 

  32 

 

  - 

 

  (296)

 

 

  (266)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Expense) Income, Net

 

  (18)

 

  8 

 

  10 

 

  53 

 

  2 

 

  27 

 

 

  82 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (2)

 

  464 

 

  394 

 

  48 

 

  127 

 

  105 

 

  (353)

 

 

  785 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (3)

 

  (103)

 

  (50)

 

  - 

 

  (13)

 

  (36)

 

  (115)

 

 

  (317)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

  (131)

 

  (132)

 

  12 

 

  (36)

 

  (19)

 

  221 

 

 

  (85)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

  - 

 

  - 

 

  - 

 

  42 

 

  - 

 

  - 

 

 

  42 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses Attributable to Noncontrolling Interests

 

  34 

 

  - 

 

  - 

 

  - 

 

  - 

 

  - 

 

 

  34 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $ 264 

 

 $ 212 

 

 $ 60 

 

 $ 120 

 

 $ 50 

 

 $ (247)

 

 

 $ 459 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4) Includes $305 million related to the write-down of our investment in RBS Sempra Commodities.