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): | February 24, 2009 |
|
| Name of Registrant, State of |
| IRS Employer |
1-40 |
| PACIFIC ENTERPRISES |
| 94-0743670 |
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|
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|
1-1402 |
| SOUTHERN CALIFORNIA GAS COMPANY |
| 95-1240705 |
|
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |
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[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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FORM 8-K
Item 2.02 Results of Operations and Financial Condition
The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Pacific Enterprises or Southern California Gas Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
On February 24, 2009, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated net income of $319 million, or $1.30 per diluted share of common stock, for the fourth quarter of 2008 and $1.11 billion, or $4.43 per diluted share of common stock, for the fiscal year 2008. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.
Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Income Statement Data by Business Unit for the three months and the years ended December 31, 2008 and 2007. A copy of such information is attached as Exhibit 99.2.
The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding Pacific Enterprises' and Southern California Gas Company's results of operations and financial condition.
Item 9.01 Financial Statements and Exhibits.
Exhibits
99.1
February 24, 2009 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, 2008 and 2007.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
PACIFIC ENTERPRISES
(Registrant)
Date: February 24, 2009 | By: /s/ Robert Schlax |
| Robert Schlax |
|
SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)
Date: February 24, 2009 | By: /s/ Robert Schlax |
| Robert Schlax |
|
Exhibit 99.1
NEWS RELEASE
Media Contact: | Doug Kline |
| Sempra Energy |
| (877) 866-2066 |
| www.sempra.com |
Financial Contact: | Glen Donovan |
| Sempra Energy |
| (877) 736-7727 |
| investor@sempra.com |
SEMPRA ENERGY EARNINGS PER SHARE
RISE 6.5 PERCENT IN 2008
Company Reaffirms 2009 Earnings-per-share Outlook of
$4.35 per Share to $4.60 per Share
SAN DIEGO, Feb. 24, 2009 Sempra Energy (NYSE: SRE) today reported net income of $1.11 billion, or $4.43 per diluted share, up 6.5 percent per share from 2007 net income of $1.10 billion, or $4.16 per diluted share.
Fourth-quarter 2008 net income rose to $319 million, or $1.30 per diluted share, from $289 million, or $1.10 per diluted share in 2007.
Despite the challenging economic environment, our businesses have excelled and weve achieved major milestones in our long-term strategy, said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. We launched operations at our Mexican liquefied natural gas terminal, completed our commodities joint venture and added new Gulf Coast natural gas assets with the acquisition of EnergySouth. We also received state regulatory approval on San Diego Gas & Electrics Sunrise Powerlink transmission line and both of our utilities rate cases. Additionally, we completed a $1 billion share-repurchase program, increased our dividend and maintained a strong balance sheet.
SUBSIDIARY OPERATING RESULTS
San Diego Gas & Electric
San Diego Gas & Electric (SDG&E) recorded net income of $339 million in 2008, up from $283 million in 2007. SDG&Es fourth-quarter 2008 net income was $81 million, compared with $47 million in the year-ago quarter, due primarily to higher operating margin and a lower tax rate.
In December 2008, the California Public Utilities Commission approved SDG&Es application to build the $1.9 billion, 500-kilovolt Sunrise Powerlink transmission-line project. Pre-construction activities on the project have begun, with completion of the power line expected in 2012.
After three years of thorough regulatory review, we are pleased that the Sunrise Powerlink project is moving forward, said Felsinger. California policymakers have set aggressive environmental goals for the states utilities, mandating a significant increase in renewable energy and reduction in greenhouse-gas emissions over the next decade. The Sunrise Powerlink will help SDG&E meet these environmental mandates, while increasing system reliability.
Southern California Gas Co.
In 2008, Southern California Gas Co. (SoCalGas) net income increased to $244 million from $230 million. Fourth-quarter net income for SoCalGas was $54 million in 2008, compared with $58 million in 2007.
RBS Sempra Commodities
Sempra Energy generated net income of $345 million from its commodity operations in the full-year 2008, including nine months of net income from its equity share of the RBS Sempra Commodities joint venture, and $164 million in the fourth quarter 2008. In 2007, Sempra Commodities earned $499 million in net income and $186 million in fourth-quarter net income. Results for 2007 represented 100 percent of the earnings from the commodities-marketing business prior to the formation of RBS Sempra Commodities. In the fourth quarter 2008, RBS Sempra Commodities performed well in all of its major product segments, led by crude oil and petroleum products.
Sempra Generation
Sempra Generations net income rose to $222 million in 2008 from $162 million in 2007. In the fourth quarter 2008, Sempra Generations net income increased to $60 million from $40 million in the same quarter of 2007, due primarily to lower income-tax expense.
In December 2008, Sempra Generation completed its first solar-power project. The 10-megawatt facility, located outside of Las Vegas, is the largest thin-film solar generating plant in North America.
Sempra Pipelines & Storage
Sempra Pipelines & Storage earned $106 million in 2008 net income, up from $64 million in 2007. In the fourth quarter 2008, Sempra Pipelines & Storage had net income of $22 million, compared with $14 million in the prior years quarter, due primarily to the operation of the western portion of the Rockies Express Pipeline and the companys Mexico pipelines.
Sempra LNG
In 2008, Sempra LNG recorded a net loss of $46 million, unchanged from 2007. For the fourth quarter 2008, Sempra LNG had a net loss of $13 million, compared with a net loss of $19 million in the same period of 2007, due primarily to a tax benefit related to currency and inflation adjustments.
2009 Outlook
Sempra Energy today reaffirmed its previous earnings-per-share outlook for 2009 of a range of $4.35 per share to $4.60 per share.
Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST with senior management of the company. Access is available by logging onto the Web site at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2137643.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2008 revenues of nearly $11 billion. The Sempra Energy companies 13,600 employees serve about 24 million consumers worldwide.
Complete financial tables, including income-statement information by business unit, are available on Sempra Energys Web site at http://www.sempra.com/downloads/4Q2008.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. These statements can be identified by words like believes, expects, anticipates, intends, plans, estimates, may, would, could, should, or similar expressions, or discussions of strategies, plans 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, com petitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, and other regulatory and governmental bodies in the United States, the United Kingdom and other countries; capital market conditions and inflation, interest and exchange rates; energy and trading 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 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 reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system without charge at the SECs Web site, www.sec.gov and on the companys Web site, at www.sempra.com.
Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not regulated by the California Public Utilities Commission.
###
SEMPRA ENERGY | ||||||||
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) | 2008 |
| 2007 |
| 2008 |
| 2007 | |
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| (unaudited) |
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| ||
Revenues |
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| |
Sempra Utilities | $ 1,782 |
| $ 1,859 |
| $ 7,972 |
| $ 7,053 | |
Sempra Global and parent | 511 |
| 1,251 |
| 2,786 |
| 4,385 | |
| Total revenues | 2,293 |
| 3,110 |
| 10,758 |
| 11,438 |
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Expenses and Other Income |
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Sempra Utilities: |
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| Cost of natural gas | (536) |
| (721) |
| (3,244) |
| (2,763) |
| Cost of electric fuel and purchased power | (206) |
| (203) |
| (900) |
| (699) |
Sempra Global and parent: |
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| |
| Cost of natural gas, electric fuel and purchased power | (318) |
| (357) |
| (1,671) |
| (1,302) |
| Other cost of sales | (14) |
| (192) |
| (182) |
| (988) |
Operation and maintenance | (720) |
| (892) |
| (2,536) |
| (3,032) | |
Depreciation and amortization | (179) |
| (172) |
| (687) |
| (686) | |
Franchise fees and other taxes | (82) |
| (74) |
| (312) |
| (295) | |
Gains on sale of assets | - |
| - |
| 114 |
| 6 | |
Equity earnings (losses): |
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| RBS Sempra Commodities LLP | 241 |
| - |
| 383 |
| - |
| Other | 8 |
| 2 |
| 37 |
| (9) |
Other income (expense), net | (77) |
| 18 |
| (54) |
| 90 | |
Interest income | 9 |
| 10 |
| 45 |
| 72 | |
Interest expense | (88) |
| (68) |
| (253) |
| (272) | |
Preferred dividends of subsidiaries | (3) |
| (3) |
| (10) |
| (10) | |
Income from continuing operations before income taxes and equity earnings of certain unconsolidated subsidiaries | 328 |
| 458 |
| 1,488 |
| 1,550 | |
Income tax expense | (15) |
| (183) |
| (438) |
| (524) | |
Equity earnings, net of income tax | 6 |
| 13 |
| 63 |
| 99 | |
Income from continuing operations | 319 |
| 288 |
| 1,113 |
| 1,125 | |
Discontinued operations, net of income tax | - |
| 1 |
| - |
| (26) | |
Net income | $ 319 |
| $ 289 |
| $ 1,113 |
| $ 1,099 | |
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Basic earnings per share: |
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| Income from continuing operations | $ 1.32 |
| $ 1.12 |
| $ 4.50 |
| $ 4.34 |
| Discontinued operations, net of income tax | - |
| - |
| - |
| (0.10) |
| Net income | $ 1.32 |
| $ 1.12 |
| $ 4.50 |
| $ 4.24 |
Weighted-average number of shares outstanding (thousands) | 241,660 |
| 257,864 |
| 247,387 |
| 259,269 | |
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Diluted earnings per share: |
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| Income from continuing operations | $ 1.30 |
| $ 1.10 |
| $ 4.43 |
| $ 4.26 |
| Discontinued operations, net of income tax | - |
| - |
| - |
| (0.10) |
| Net income | $ 1.30 |
| $ 1.10 |
| $ 4.43 |
| $ 4.16 |
Weighted-average number of shares outstanding (thousands) | 244,531 |
| 262,839 |
| 251,159 |
| 264,004 | |
Dividends declared per share of common stock | $ 0.35 |
| $ 0.31 |
| $ 1.37 |
| $ 1.24 | |
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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, |
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(Dollars in millions) |
| 2008 |
| 2007 |
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Assets |
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Current assets: |
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| Cash and cash equivalents |
| $ 331 |
| $ 668 |
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| Short-term investments |
| 176 |
| - |
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| Restricted cash |
| 27 |
| 1 |
| ||
| Accounts receivable, net |
| 981 |
| 1,074 |
| ||
| Income taxes receivable |
| 195 |
| 99 |
| ||
| Deferred income taxes |
| 31 |
| 247 |
| ||
| Trading-related receivables and deposits, net |
| - |
| 2,719 | * | ||
| Derivative trading instruments |
| - |
| 2,170 | * | ||
| Commodities owned |
| - |
| 2,231 |
| ||
| Inventories |
| 320 |
| 224 |
| ||
| Regulatory assets |
| 121 |
| 106 |
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| Fixed-price contracts and other derivatives |
| 160 |
| 28 | * | ||
| Other |
| 134 |
| 397 |
| ||
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| Total current assets |
| 2,476 |
| 9,964 |
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Investments and other assets: |
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| Regulatory assets arising from fixed-price contracts and other derivatives |
| 264 |
| 309 |
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| Regulatory assets arising from pension and other postretirement benefit obligations |
| 1,188 |
| 162 |
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| Other regulatory assets |
| 534 |
| 460 |
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| Nuclear decommissioning trusts |
| 577 |
| 739 |
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| Investment in RBS Sempra Commodities LLP |
| 2,082 |
| - |
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| Other investments |
| 1,166 |
| 1,243 |
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| Goodwill and intangible assets |
| 539 |
| 179 |
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| Sundry |
| 709 |
| 777 |
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| Total investments and other assets |
| 7,059 |
| 3,869 |
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Property, plant and equipment, net |
| 16,865 |
| 14,884 |
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Total assets |
| $ 26,400 |
| $ 28,717 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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| Short-term debt |
| $ 503 |
| $ 1,064 |
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| Accounts payable |
| 856 |
| 1,563 |
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| Due to unconsolidated affiliates |
| 38 |
| 60 |
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| Trading-related payables |
| - |
| 2,265 | * | ||
| Derivative trading instruments |
| - |
| 1,672 | * | ||
| Commodities sold with agreement to repurchase |
| - |
| 500 |
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| Dividends and interest payable |
| 156 |
| 145 |
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| Accrued compensation and benefits |
| 280 |
| 265 |
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| Regulatory balancing accounts, net |
| 335 |
| 481 |
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| Current portion of long-term debt |
| 410 |
| 7 |
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| Fixed-price contracts and other derivatives |
| 180 |
| 53 | * | ||
| Customer deposits |
| 170 |
| 143 |
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| Other |
| 684 |
| 802 |
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| Total current liabilities |
| 3,612 |
| 9,020 |
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Long-term debt |
| 6,544 |
| 4,553 |
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Deferred credits and other liabilities: |
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| Due to unconsolidated affiliate |
| 102 |
| 102 |
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| Customer advances for construction |
| 155 |
| 153 |
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| Pension and other postretirement benefit obligations, net of plan assets |
| 1,487 |
| 434 |
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| Deferred income taxes |
| 946 |
| 531 |
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| Deferred investment tax credits |
| 57 |
| 61 |
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| Regulatory liabilities arising from removal obligations |
| 2,430 |
| 2,522 |
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| Asset retirement obligations |
| 1,159 |
| 1,129 |
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| Other regulatory liabilities |
| 219 |
| 265 |
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| Fixed-price contracts and other derivatives |
| 392 |
| 332 |
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| Deferred credits and other |
| 909 |
| 949 |
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| Total deferred credits and other liabilities |
| 7,856 |
| 6,478 |
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Preferred stock of subsidiaries |
| 179 |
| 179 |
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Minority interests |
| 240 |
| 148 |
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Shareholders' equity |
| 7,969 |
| 8,339 |
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Total liabilities and shareholders' equity |
| $ 26,400 |
| $ 28,717 |
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* December 31, 2007 amounts have been reclassified due to the adoption of FASB Staff Position FIN 39-1. |
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SEMPRA ENERGY | |||||
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) |
| 2008 |
| 2007 | |
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Cash Flows from Operating Activities: |
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Net income |
| $ 1,113 |
| $ 1,099 | |
Adjustments to reconcile net income to net cash |
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provided by operating activities: |
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| Discontinued operations |
| -- |
| 26 |
| Depreciation and amortization |
| 687 |
| 686 |
| Gains on sale of assets, net |
| (114) |
| (6) |
| Deferred income taxes and investment tax credits |
| 324 |
| 149 |
| Noncash rate-reduction bond expense |
| -- |
| 55 |
| Equity earnings |
| (483) |
| (90) |
| Other |
| 141 |
| 46 |
Net changes in other working capital components |
| (483) |
| 25 | |
Distributions from RBS Sempra Commodities LLP |
| 85 |
| -- | |
Changes in other assets |
| (15) |
| 22 | |
Changes in other liabilities |
| (74) |
| 79 | |
| Net cash provided by continuing operations |
| 1,181 |
| 2,091 |
| Net cash used in discontinued operations |
| - |
| (3) |
| Net cash provided by operating activities |
| 1,181 |
| 2,088 |
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Cash Flows from Investing Activities: |
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Expenditures for property, plant and equipment |
| (2,061) |
| (2,011) | |
Proceeds from sale of assets from continuing operations, net of cash sold |
| 2,295 |
| 103 | |
Expenditures for investments and acquisition of business, net of cash acquired |
| (2,675) |
| (121) | |
Distributions from investments |
| 34 |
| 18 | |
Purchases of nuclear decommissioning and other trust assets |
| (485) |
| (646) | |
Proceeds from sales by nuclear decommissioning and other trusts |
| 469 |
| 613 | |
Decrease in notes receivable from unconsolidated affiliates |
| 60 |
| -- | |
Other |
| (23) |
| (29) | |
| Net cash used in investing activities |
| (2,386) |
| (2,073) |
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Cash Flows from Financing Activities: |
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Common dividends paid |
| (339) |
| (316) | |
Issuances of common stock |
| 18 |
| 40 | |
Repurchases of common stock |
| (1,018) |
| (185) | |
Issuance of long-term debt |
| 1,706 |
| 404 | |
Payments on long-term debt |
| (79) |
| (1,072) | |
Increase in short-term debt, net |
| 564 |
| 812 | |
Other |
| 16 |
| 21 | |
| Net cash provided by (used in) financing activities |
| 868 |
| (296) |
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Decrease in cash and cash equivalents |
| (337) |
| (281) | |
Cash and cash equivalents, January 1 |
| 668 |
| 920 | |
Cash assumed in connection with FIN 46(R) initial consolidation |
| - |
| 29 | |
Cash and cash equivalents, December 31 |
| $ 331 |
| $ 668 | |
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SEMPRA ENERGY |
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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 |
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| December 31, |
| December 31, |
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(Dollars in millions) | 2008 |
| 2007 |
| 2008 |
| 2007 |
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| (unaudited) |
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Net Income (Loss) |
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San Diego Gas & Electric | $ 81 |
| $ 47 |
| $ 339 |
| $ 283 |
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Southern California Gas | 54 |
| 58 |
| 244 |
| 230 |
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Sempra Commodities(1) | 164 |
| 186 |
| 345 |
| 499 |
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Sempra Generation | 60 |
| 40 |
| 222 |
| 162 |
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Sempra Pipelines & Storage | 22 |
| 14 |
| 106 |
| 64 |
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Sempra LNG | (13) |
| (19) |
| (46) |
| (46) |
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Parent & Other | (49) |
| (38) |
| (97) |
| (67) |
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Continuing Operations | 319 |
| 288 |
| 1,113 |
| 1,125 |
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Discontinued Operations, Net of Income Tax | - |
| 1 |
| - |
| (26) |
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Consolidated Net Income | $ 319 |
| $ 289 |
| $ 1,113 |
| $ 1,099 |
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(1) | Includes the company's portion of RBS Sempra Commodities' joint venture earnings since the formation of the joint venture on April 1, 2008, and 100% of the commodities-marketing businesses prior to April 1, 2008. Also includes the operating results of Sempra Rockies Marketing, as well as interest, income taxes, cost allocations and other items associated with the joint venture. |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended |
| Years ended |
| ||||
|
|
| December 31, |
| December 31, |
| ||||
(Dollars in millions) | 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||
|
|
| (unaudited) |
|
|
|
|
| ||
Capital Expenditures and Investments(1) |
|
|
|
|
|
|
|
| ||
San Diego Gas & Electric | $ 430 | (2) | $ 235 |
| $ 1,372 | (2) | $ 714 |
| ||
Southern California Gas | 104 |
| 157 |
| 454 |
| 457 |
| ||
Sempra Commodities | - |
| 15 |
| 37 |
| 64 |
| ||
Sempra Generation | 44 |
| 5 |
| 59 |
| 13 |
| ||
Sempra Pipelines & Storage(3) | 564 |
| 187 |
| 909 |
| 367 |
| ||
Sempra LNG | 55 |
| 152 |
| 365 |
| 498 |
| ||
Parent & Other | 229 | (2) | 7 |
| 655 | (2) | 19 |
| ||
Eliminations | (411) | (4) | - |
| (715) | (4) | - |
| ||
Consolidated Capital Expenditures and Investments | $ 1,015 |
| $ 758 |
| $ 3,136 |
| $ 2,132 |
| ||
|
|
|
|
|
|
|
|
|
|
|
(1) | Investments do not include the $1.6 billion contribution to RBS Sempra Commodities in the second quarter of 2008. |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
(2) | Purchases of industrial development bonds for SDG&E and Parent & Other were $184 and $227, respectively, in the three months ended December 31, 2008 and $488 and $640, respectively, for year ended December 31, 2008. |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
(3) | Amounts for the three months and the year ended December 31, 2008 include $495 for the acquisition of EnergySouth, which is net of cash acquired. |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
(4) | Represents purchases and sales of industrial development bonds between SDG&E and Parent & Other. |
|
|
|
|
|
|
|
|
|
|
|
SEMPRA ENERGY |
|
|
| ||||||
Table E |
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING STATISTICS (Unaudited) |
|
|
|
|
| ||||
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
|
|
| Three months ended |
| Years ended | ||||
|
|
| December 31, |
| December 31, | ||||
SEMPRA UTILITIES | 2008 |
| 2007 |
| 2008 |
| 2007 | ||
|
|
|
|
|
|
|
|
|
|
Revenues (Dollars in millions) |
|
|
|
|
|
|
| ||
SDG&E (excludes intercompany sales) | $ 801 |
| $ 765 |
| $ 3,240 |
| $ 2,839 | ||
SoCalGas (excludes intercompany sales) | $ 981 |
| $ 1,094 |
| $ 4,732 |
| $ 4,214 | ||
|
|
|
|
|
|
|
|
|
|
Gas Sales (Bcf) | 103 |
| 114 |
| 391 |
| 404 | ||
Transportation and Exchange (Bcf) | 156 |
| 145 |
| 601 |
| 566 | ||
Total Deliveries (Bcf) | 259 |
| 259 |
| 992 |
| 970 | ||
|
|
|
|
|
|
|
|
|
|
Total Gas Customers (Thousands) |
|
|
|
| 6,575 |
| 6,531 | ||
|
|
|
|
|
|
|
|
|
|
Electric Sales (Millions of kWhs) | 4,386 |
| 4,198 |
| 17,398 |
| 17,045 | ||
Direct Access (Millions of kWhs) | 939 |
| 819 |
| 3,235 |
| 3,220 | ||
Total Deliveries (Millions of kWhs) | 5,325 |
| 5,017 |
| 20,633 |
| 20,265 | ||
|
|
|
|
|
|
|
|
|
|
Total Electric Customers (Thousands) |
|
|
|
| 1,372 |
| 1,365 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMPRA GENERATION |
|
|
|
|
|
|
| ||
Power Sold (Millions of kWhs) | 5,903 |
| 5,613 |
| 22,728 |
| 20,856 | ||
|
|
|
|
|
|
|
|
|
|
SEMPRA PIPELINES & STORAGE |
|
|
|
|
|
|
| ||
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.) | |||||||||
Natural Gas Sales (Bcf) |
|
|
|
|
|
|
| ||
| Argentina |
| 78 |
| 79 |
| 332 |
| 320 |
| Mexico |
| 11 |
| 11 |
| 47 |
| 46 |
| Chile |
| - |
| - |
| - |
| 1 |
Natural Gas Customers (Thousands) |
|
|
|
|
|
|
| ||
| Argentina |
|
|
|
|
| 1,670 |
| 1,603 |
| Mexico |
|
|
|
|
| 95 |
| 96 |
| Chile |
|
|
|
|
| - | * | 39 |
Electric Sales (Millions of kWhs) |
|
|
|
|
|
|
| ||
| Peru |
| 1,352 |
| 1,278 |
| 5,415 |
| 5,078 |
| Chile |
| 620 |
| 632 |
| 2,417 |
| 2,500 |
Electric Customers (Thousands) |
|
|
|
|
|
|
| ||
| Peru |
|
|
|
|
| 837 |
| 809 |
| Chile |
|
|
|
|
| 562 |
| 549 |
|
|
|
|
|
|
|
|
|
|
* | The decrease from 2007 is due to the sale of interests in certain South American operations in the fourth quarter of 2008. | ||||||||
|
|
|
|
|
|
|
|
|
SEMPRA ENERGY | ||||
Table E (Continued) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMPRA COMMODITIES |
|
|
| |
The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP. RBS Sempra Commodities LLP acquired the commodities-marketing businesses of Sempra Energy on April 1, 2008. For the three and nine months ended December 31, 2008, the Sempra Commodities segment is composed primarily of the company's equity interest in RBS Sempra Commodities LLP, but also includes the results of Sempra Rockies Marketing. The margin and financial data below represent the total results of RBS Sempra Commodities LLP as calculated under International Financial Reporting Standards (IFRS). | ||||
|
|
|
|
|
RBS Sempra Commodities LLP |
|
|
| |
|
|
|
|
|
Operating Statistics |
|
|
| |
(in millions of US dollars) |
|
|
| |
|
| Three |
| Nine |
|
| months ended |
| months ended |
RBS Sempra Commodities LLP - Joint Venture level margin* | December 31, 2008 |
| December 31, 2008 | |
|
|
|
|
|
Geographical: |
|
|
| |
| North America | $ 373 |
| $ 816 |
| Europe/Asia | 340 |
| 603 |
| Total | $ 713 |
| $ 1,419 |
|
|
|
|
|
Product Line: |
|
|
| |
| Natural Gas | $ 171 |
| $ 534 |
| Oil - Crude & Products | 243 |
| 357 |
| Metals | 149 |
| 253 |
| Power | 129 |
| 222 |
| Other | 21 |
| 53 |
| Total | $ 713 |
| $ 1,419 |
|
|
|
|
|
* Margin consists of operating revenues less cost of sales (primarily transportation and storage costs) reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense. | ||||
|
|
|
|
|
Financial Information |
|
|
| |
(in millions of US dollars) |
|
|
| |
|
|
|
|
|
RBS Sempra Commodities LLP | Three months ended December 31, 2008 | |||
|
| Joint Venture |
| Sempra |
|
| Total |
| Share** |
| Fee income and trading revenue, net of selling costs | $ 713 |
|
|
| Operating and other expenses | (339) |
|
|
| Joint Venture distributable income | $ 374 |
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred return on capital | $ 103 |
| $ 61 |
| 1st allocation - 70% Sempra / 30% RBS*** | 271 |
| 192 |
| 2nd allocation - 30% Sempra / 70% RBS | - |
| - |
| Distributable income | $ 374 |
| $ 253 |
|
|
|
|
|
|
| Nine months ended December 31, 2008 | ||
|
| Joint Venture |
| Sempra |
|
| Total |
| Share** |
| Fee income and trading revenue, net of selling costs | $ 1,419 |
|
|
| Operating and other expenses | (744) |
|
|
| Joint Venture distributable income | $ 675 |
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred return on capital | $ 382 |
| $ 181 |
| 1st allocation - 70% Sempra / 30% RBS*** | 293 |
| 208 |
| 2nd allocation - 30% Sempra / 70% RBS | - |
| - |
| Distributable income | $ 675 |
| $ 389 |
|
|
|
|
|
Sempra Earnings from RBS Sempra Commodities LLP |
|
|
| |
|
|
|
|
|
|
| Three |
| Nine |
|
| months ended |
| months ended |
(in millions of US dollars) | December 31, 2008 |
| December 31, 2008 | |
| Sempra share of distributable income - IFRS basis | $ 253 |
| $ 389 |
| U.S. GAAP conversion impact | (12) |
| (6) |
| Sempra equity earnings - U.S. GAAP basis | 241 |
| 383 |
| Income tax expense | (79) |
| (131) |
| Sempra equity earnings from RBS Sempra Commodities LLP | $ 162 |
| $ 252 |
|
|
|
|
|
** | After a 15% preferred return to Sempra and then a 15% return to RBS, Sempra receives 70% of the next $500 million and 30% of any remaining income on an annual basis. | |||
|
|
|
|
|
*** | Includes certain transition costs specifically allocated to Sempra and RBS. |
|
|
|
Exhibit 99.2
SEMPRA ENERGY |
|
|
| ||||||||||||||
Table F (Unaudited) |
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Data by Business Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 802 |
| $ 992 |
| $ 14 |
| $ 358 |
| $ 119 |
| $ 30 |
| $ (22) |
|
| $ 2,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (590) |
| (829) |
| (18) |
| (278) |
| (99) |
| (55) |
| (7) |
|
| (1,876) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (75) |
| (71) |
| - |
| (14) |
| (10) |
| (7) |
| (2) |
|
| (179) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings (Losses) Recorded Before Income Tax |
| - |
| - |
| 241 |
| (2) |
| 13 |
| - |
| (3) |
|
| 249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| 7 |
| 1 |
| - |
| (2) |
| - |
| (2) |
| (81) |
|
| (77) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 144 |
| 93 |
| 237 |
| 62 |
| 23 |
| (34) |
| (115) |
|
| 410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Expense (2) |
| (23) |
| (16) |
| (4) |
| - |
| (4) |
| (2) |
| (33) |
|
| (82) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (40) |
| (23) |
| (69) |
| (2) |
| (3) |
| 23 |
| 99 |
|
| (15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings Recorded Net of Income Tax |
| - |
| - |
| - |
| - |
| 6 |
| - |
| - |
|
| 6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 81 |
| $ 54 |
| $ 164 |
| $ 60 |
| $ 22 |
| $ (13) |
| $ (49) |
|
| $ 319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 768 |
| $ 1,114 |
| $ 773 |
| $ 412 |
| $ 72 |
| $ (11) |
| $ (18) |
|
| $ 3,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (590) |
| (936) |
| (469) |
| (327) |
| (70) |
| (14) |
| (33) |
|
| (2,439) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (76) |
| (71) |
| (7) |
| (15) |
| (2) |
| - |
| (1) |
|
| (172) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings (Losses) Recorded Before Income Tax |
| - |
| - |
| - |
| 3 |
| 1 |
| - |
| (2) |
|
| 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| 1 |
| 1 |
| - |
| - |
| 1 |
| - |
| 15 |
|
| 18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 103 |
| 108 |
| 297 |
| 73 |
| 2 |
| (25) |
| (39) |
|
| 519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest (Expense) Income (2) |
| (22) |
| (12) |
| (15) |
| 2 |
| (1) |
| - |
| (13) |
|
| (61) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (34) |
| (38) |
| (96) |
| (35) |
| - |
| 6 |
| 14 |
|
| (183) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings Recorded Net of Income Tax |
| - |
| - |
| - |
| - |
| 13 |
| - |
| - |
|
| 13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| 1 |
|
| 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 47 |
| $ 58 |
| $ 186 |
| $ 40 |
| $ 14 |
| $ (19) |
| $ (37) |
|
| $ 289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes "Income (Loss) before Interest & Taxes" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations. | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |
SEMPRA ENERGY |
|
|
| ||||||||||||||
Table F (Unaudited) |
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Data by Business Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 3,251 |
| $ 4,768 |
| $ 500 |
| $ 1,784 |
| $ 457 |
| $ 74 |
| $ (76) |
|
| $10,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (2,386) |
| (4,054) |
| (428) |
| (1,409) |
| (413) |
| (130) |
| (25) |
|
| (8,845) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (298) |
| (280) |
| (6) |
| (56) |
| (20) |
| (15) |
| (12) |
|
| (687) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) on Sale of Assets |
| 3 |
| - |
| 110 |
| 2 |
| - |
| - |
| (1) |
|
| 114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings (Losses) Recorded Before Income Tax |
| - |
| - |
| 383 |
| 8 |
| 43 |
| - |
| (14) |
|
| 420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| 25 |
| 2 |
| - |
| (1) |
| 2 |
| 11 |
| (93) |
|
| (54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 595 |
| 436 |
| 559 |
| 328 |
| 69 |
| (60) |
| (221) |
|
| 1,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest (Expense) Income (2) |
| (95) |
| (52) |
| (16) |
| (6) |
| - |
| (7) |
| (42) |
|
| (218) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (161) |
| (140) |
| (201) |
| (100) |
| (23) |
| 21 |
| 166 |
|
| (438) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings Recorded Net of Income Tax |
| - |
| - |
| 3 |
| - |
| 60 |
| - |
| - |
|
| 63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 339 |
| $ 244 |
| $ 345 |
| $ 222 |
| $ 106 |
| $ (46) |
| $ (97) |
|
| $ 1,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
Year Ended December 31, 2007 |
|
|
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|
|
|
|
|
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|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 2,852 |
| $ 4,282 |
| $ 2,674 |
| $ 1,476 |
| $ 314 |
| $ (22) |
| $ (138) |
|
| $11,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (2,053) |
| (3,566) |
| (1,906) |
| (1,169) |
| (297) |
| (44) |
| (44) |
|
| (9,079) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (301) |
| (281) |
| (26) |
| (56) |
| (11) |
| - |
| (11) |
|
| (686) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on Sale of Assets |
| 2 |
| 2 |
| - |
| - |
| - |
| - |
| 2 |
|
| 6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings (Losses) Recorded Before Income Tax |
| - |
| - |
| - |
| 9 |
| (4) |
| - |
| (14) |
|
| (9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| 11 |
| (3) |
| - |
| - |
| 3 |
| - |
| 79 |
|
| 90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 511 |
| 434 |
| 742 |
| 260 |
| 5 |
| (66) |
| (126) |
|
| 1,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest (Expense) Income (2) |
| (93) |
| (44) |
| (31) |
| 13 |
| (2) |
| (2) |
| (51) |
|
| (210) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (135) |
| (160) |
| (252) |
| (111) |
| 2 |
| 22 |
| 110 |
|
| (524) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings Recorded Net of Income Tax |
| - |
| - |
| 40 |
| - |
| 59 |
| - |
| - |
|
| 99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| (26) |
|
| (26) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 283 |
| $ 230 |
| $ 499 |
| $ 162 |
| $ 64 |
| $ (46) |
| $ (93) |
|
| $ 1,099 |
|
|
|
|
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(1) Management believes "Income (Loss) before Interest & Taxes" 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) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |