PE/SCG 5-5-2009 8-K



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):

May 5, 2009




Commission
File Number

 

Name of Registrant, State of
Incorporation, Address and
Telephone Number

 

IRS Employer
Identification
Number

1-40

 

PACIFIC ENTERPRISES
(A California Corporation)
101 Ash Street
San Diego, California 92101
(619) 696-2020

 

94-0743670

 

 

 

 

 

1-1402

 

SOUTHERN CALIFORNIA GAS COMPANY
(A California Corporation)
555 West Fifth Street
Los Angeles, California 90013
(213) 244-1200

 

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:

 

 

[   ]

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))

 

 




2





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 May 5, 2009, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated earnings of $316 million, or $1.29 per diluted share of common stock, for the first quarter of 2009. 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 Statement of Operations Data by Business Unit for the three months ended March 31, 2009 and 2008. 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

May 5, 2009 Sempra Energy News Release (including tables)


          99.2

Sempra Energy's Statement of Operations Data by Business Unit for the three months ended March 31, 2009 and 2008.






3





  

SIGNATURES

  

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.  

  


PACIFIC ENTERPRISES
(Registrant)





Date: May 5, 2009

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 



  

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)

  

  


Date: May 5, 2009

By: /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 

  





4



Exhibit 99.1



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’S FIRST-QUARTER 2009

EARNINGS PER SHARE RISE 40 PERCENT


SAN DIEGO, May 5, 2009 – Boosted by improved results in nearly all of its operations, Sempra Energy (NYSE: SRE) today reported first-quarter 2009 earnings of $316 million, or $1.29 per diluted share, an increase of 40 percent per share over first-quarter 2008 earnings of $242 million, or $0.92 per diluted share.

“We had an outstanding first quarter – a solid step toward meeting our 2009 financial objectives,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “In a tough economy, our businesses are continuing to grow and build long-term value for our shareholders.”


SUBSIDIARY OPERATING RESULTS

San Diego Gas & Electric

First-quarter earnings for San Diego Gas & Electric (SDG&E) rose to $99 million in 2009 from $74 million in 2008.  Earnings were higher primarily due to the favorable impact of SDG&E's rate case, which was approved by the California Public Utilities Commission and went into effect in the third quarter 2008.  This improvement was partially offset by a favorable resolution in 2008 of prior-year’s income-tax issues.

In March, SDG&E expanded the roll-out of smart meters for its 1.4 million customers.  The new digital meters will allow two-way communications between SDG&E and its customers, increasing operational efficiency and giving customers more information with which to manage their energy usage.  All of the new meters are expected to be installed by the end of 2011.


Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in the first quarter 2009 were $59 million, compared with $57 million in the prior-year’s quarter.


RBS Sempra Commodities

First-quarter earnings from Sempra Energy’s commodity operations nearly doubled in 2009 to $114 million.  During the most recent quarter, the RBS Sempra Commodities joint venture benefited from improved results in natural gas and oil marketing.  First-quarter 2008 results of $59 million represented 100 percent of the earnings of Sempra Energy’s commodities-marketing business prior to the formation of the joint venture and reflected a $17 million write-down related to a credit issue with a counterparty.


Sempra Generation

Sempra Generation’s earnings were $43 million in the first quarter 2009, compared with $45 million in last year’s first quarter.

On April 15, Sempra Generation announced its intention to construct a new 48-megawatt (MW) expansion of its existing 10-MW photovoltaic power-generation facility near Las Vegas.  The combined 58-MW installation would become the largest operational photovoltaic solar-power facility in North America.  Construction will commence after Sempra Generation contracts with customers for the facility’s power output.


Sempra Pipelines & Storage

First-quarter earnings for Sempra Pipelines & Storage rose 42 percent to $37 million in 2009 from $26 million in 2008, due primarily to increased contributions from its Mexico pipeline operations and Mobile Gas, offset by the negative effect of foreign currency exchange rates.  Mobile Gas typically reports its highest earnings in the first quarter, when heating demand is stronger due to colder weather.


Sempra LNG

Sempra LNG recorded a loss of $7 million in the first quarter 2009, compared with a loss of $9 million in last year’s first quarter.


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 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 8962347.

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 29 million consumers worldwide.


Complete financial tables, including earnings information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/1Q2009.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, nationa l and international economic, competitive, 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 diffi cult 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 IDEA system without charge at the SEC’s Web site, www.sec.gov and on the company’s 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

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

Three months ended

 

March 31,

(Dollars in millions, except per share amounts)

2009

 

2008*

 

(unaudited)

REVENUES

 

 

 

Sempra Utilities

 $  1,642

 

 $   2,290

Sempra Global and parent

        466

 

         980

    Total revenues

     2,108

 

      3,270

EXPENSES AND OTHER INCOME

 

 

 

Sempra Utilities:

 

 

 

    Cost of natural gas

      (540)

 

    (1,235)

    Cost of electric fuel and purchased power

      (171)

 

       (163)

Sempra Global and parent:

 

 

 

    Cost of natural gas, electric fuel and purchased power

      (268)

 

       (409)

    Other cost of sales

       (17)

 

       (136)

Operation and maintenance

      (516)

 

       (698)

Depreciation and amortization

      (183)

 

       (175)

Franchise fees and other taxes

       (82)

 

        (83)

Equity earnings:

 

 

 

    RBS Sempra Commodities LLP

        153

 

 -  

    Other

           7

 

            6

Other income, net

           3

 

          19

Interest income

           6

 

          14

Interest expense

       (82)

 

        (60)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

        418

 

         350

Income tax expense

      (109)

 

       (127)

Equity earnings, net of income tax

         16

 

          21

Net income

        325

 

         244

Earnings attributable to noncontrolling interests

         (7)

 

             -

Preferred dividends of subsidiaries

         (2)

 

          (2)

Earnings

 $     316

 

 $      242

 

 

 

 

Basic earnings per common share

 $    1.31

 

 $     0.94

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

 241,766

 

  258,624

 

 

 

 

Diluted earnings per common share

 $    1.29

 

 $     0.92

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

 245,017

 

  262,671

Dividends declared per share of common stock

 $    0.39

 

 $     0.32

 

 

 

 

* As adjusted for the retrospective adoption of SFAS 160.







SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

(Dollars in millions)

 

2009

 

2008*

 

 

 

 

 

(unaudited)

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

 $           720

 

 $           331

 

Short-term investments

 

              176

 

              176

 

Restricted cash

 

                27

 

                27

 

Accounts receivable, net

 

              882

 

              981

 

Income taxes receivable

 

                  2

 

              195

 

Deferred income taxes

 

                48

 

                31

 

Inventories

 

              150

 

              320

 

Regulatory assets

 

              122

 

              121

 

Fixed-price contracts and other derivatives

 

              123

 

              160

 

Insurance receivable related to wildfire litigation

 

              900

 

                  -

 

Other

 

              177

 

              134

 

 

 

Total current assets

 

           3,327

 

           2,476

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 

              263

 

              264

 

Regulatory assets arising from pension and other postretirement benefit obligations

 

           1,210

 

           1,188

 

Other regulatory assets

 

              543

 

              534

 

Nuclear decommissioning trusts

 

              537

 

              577

 

Investment in RBS Sempra Commodities LLP

 

           1,958

 

           2,082

 

Other investments

 

           1,228

 

           1,166

 

Goodwill and other intangible assets

 

              531

 

              539

 

Sundry

 

              529

 

              709

 

 

 

Total investments and other assets

 

           6,799

 

           7,059

Property, plant and equipment, net

 

          17,208

 

          16,865

Total assets

 

 $       27,334

 

 $       26,400

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt

 

 $           426

 

 $           503

 

Accounts payable

 

              622

 

              856

 

Due to unconsolidated affiliates

 

                31

 

                38

 

Dividends and interest payable

 

              187

 

              156

 

Accrued compensation and benefits

 

              146

 

              280

 

Regulatory balancing accounts, net

 

              609

 

              335

 

Current portion of long-term debt

 

              921

 

              410

 

Fixed-price contracts and other derivatives

 

              196

 

              180

 

Customer deposits

 

              159

 

              170

 

Reserve for wildfire litigation

 

              900

 

                  -

 

Other

 

              703

 

              684

 

 

 

Total current liabilities

 

           4,900

 

           3,612

Long-term debt

 

           6,044

 

           6,544

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

Due to unconsolidated affiliate

 

              102

 

              102

 

Customer advances for construction

 

              153

 

              155

 

Pension and other postretirement benefit obligations, net of plan assets

 

           1,508

 

           1,487

 

Deferred income taxes

 

              944

 

              946

 

Deferred investment tax credits

 

                55

 

                57

 

Regulatory liabilities arising from removal obligations

 

           2,402

 

           2,430

 

Asset retirement obligations

 

           1,177

 

           1,159

 

Other regulatory liabilities

 

              216

 

              219

 

Fixed-price contracts and other derivatives

 

              366

 

              392

 

Deferred credits and other

 

              875

 

              909

 

 

 

Total deferred credits and other liabilities

 

           7,798

 

           7,856

Preferred stock of subsidiary

 

                79

 

                79

Total Sempra Energy shareholders' equity

 

           8,247

 

           7,969

Preferred stock of subsidiaries

 

              100

 

              100

Other noncontrolling interests

 

              166

 

              240

 

 

 

Total equity

 

           8,513

 

           8,309

Total liabilities and equity

 

 $       27,334

 

 $       26,400

 

 

 

 

 

 

 

 

* As adjusted for the retrospective adoption of SFAS 160.





SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

Three months ended

 

 

 

March 31,

(Dollars in millions)

 

2009

 

2008*

 

 

 

(unaudited)

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

 $        325

 

 $      244

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

 

 

 

 

 

Depreciation and amortization

 

           183

 

         175

 

Deferred income taxes and investment tax credits

 

            (29)

 

          (58)

 

Equity earnings

 

          (176)

 

          (27)

 

Other

 

             49

 

           32

Net changes in other working capital components

 

           491

 

         390

Distribution from RBS Sempra Commodities LLP

 

           305

 

 --

Changes in other assets

 

             10

 

            (3)

Changes in other liabilities

 

            (19)

 

          (22)

 

Net cash provided by operating activities

 

        1,139

 

         731

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

          (492)

 

        (544)

Proceeds from sale of assets

 

 --

 

           10

Expenditures for investments

 

(25)

 

        (579)

Distributions from investments

 

              5

 

             4

Purchases of nuclear decommissioning and other trust assets

 

            (45)

 

        (134)

Proceeds from sales by nuclear decommissioning and other trusts

 

             42

 

         135

Other

 

             (7)

 

            (1)

 

Net cash used in investing activities

 

          (522)

 

     (1,109)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(86)

 

          (82)

Preferred dividends paid by subsidiaries

 

(2)

 

            (2)

Issuances of common stock

 

             10

 

             4

Repurchases of common stock

 

 --

 

            (2)

(Decrease) increase in short-term debt, net

 

            (77)

 

         566

Issuances of long-term debt

 

             22

 

           52

Payments on long-term debt

 

             (6)

 

          (10)

Purchase of noncontrolling interest

 

            (94)

 

 --

Other

 

              5

 

          (10)

 

Net cash (used in) provided by financing activities

 

          (228)

 

         516

 

 

 

 

 

 

Increase in cash and cash equivalents

 

           389

 

         138

Cash and cash equivalents, January 1

 

           331

 

         668

Cash and cash equivalents, March 31

 

 $        720

 

 $      806

 

 

 

 

 

 

* As adjusted for the retrospective adoption of SFAS 160.





SEMPRA ENERGY

 

 

 

 

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

March 31,

 

 

 

(Dollars in millions)

2009

 

2008

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

Earnings (Losses)

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $     99

 

 $     74

 

 

 

 

 

Southern California Gas

        59

 

        57

 

 

 

 

 

Sempra Commodities(1)

      114

 

        59

 

 

 

 

 

Sempra Generation

        43

 

        45

 

 

 

 

 

Sempra Pipelines & Storage

        37

 

        26

 

 

 

 

 

Sempra LNG

        (7)

 

        (9)

 

 

 

 

 

Parent & Other

      (29)

 

      (10)

 

 

 

 

 

Earnings

 $    316

 

 $    242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Results for 2009 include the company's portion of RBS Sempra Commodities' joint venture earnings and interest, income taxes, cost allocations and other items associated with the joint venture. Results for 2008 include 100% of the commodities-marketing businesses. Both 2009 and 2008 include the results of Sempra Rockies Marketing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

March 31,

 

 

 

(Dollars in millions)

2009

 

2008

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

Capital Expenditures and Investments

 

 

 

 

 

 

 

 

San Diego Gas & Electric

 $    229

 

 $    471

(1)

 

 

 

 

Southern California Gas

      112

 

      116

 

 

 

 

 

Sempra Commodities

           -

 

        37

 

 

 

 

 

Sempra Generation

          3

 

        11

 

 

 

 

 

Sempra Pipelines & Storage

      101

 

      209

 

 

 

 

 

Sempra LNG

        71

 

        97

 

 

 

 

 

Parent & Other

          1

 

      182

(1)

 

 

 

 

Consolidated Capital Expenditures and Investments

 $    517

 

 $ 1,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Purchases of industrial development bonds for SDG&E and Parent & Other were $236 and $177, respectively, in the three months ended March 31, 2008.

 

 

 

 

 

 




SEMPRA ENERGY

Table E

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

March 31,

 

SEMPRA UTILITIES

2009

 

2008

 

Revenues (Dollars in millions)

 

 

 

 

SDG&E (excludes intercompany sales)

 $         730

 

 $         742

 

SoCalGas (excludes intercompany sales)

 $         912

 

 $      1,548

 

 

 

 

 

 

 

 

Gas Sales (bcf)

            131

 

            144

 

Transportation and Exchange (bcf)

            128

 

            138

 

Total Deliveries (bcf)

            259

 

            282

 

Total Gas Customers (Thousands)

         6,582

 

         6,543

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

         4,164

 

         4,275

 

Direct Access (Millions of kWhs)

            740

 

            765

 

Total Deliveries (Millions of kWhs)

         4,904

 

         5,040

 

Total Electric Customers (Thousands)

         1,373

 

         1,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

Power Sold (Millions of kWhs)

         5,727

 

         5,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA PIPELINES & STORAGE

 

 

 

 

(Represents 100% of the distribution operations of these subsidiaries, although subsidiaries in Argentina, Chile and Peru are not 100% owned by Sempra Energy. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method).

 

Natural Gas Sales (bcf)

 

 

 

 

 

Argentina

              65

 

              71

 

 

Mexico

               5

 

               5

 

 

Mobile Gas

               9

 

                -

 *

Natural Gas Customers (Thousands)

 

 

 

 

 

Argentina

         1,680

 

         1,613

 

 

Mexico

              94

 

              95

 

 

Mobile Gas

              94

 

                -

 *

Electric Sales (Millions of kWhs)

 

 

 

 

 

Peru

         1,393

 

         1,362

 

 

Chile

            677

 

            664

 

Electric Customers (Thousands)

 

 

 

 

 

Peru

            845

 

            815

 

 

Chile

            566

 

            553

 

 

 

 

 

 

 

 

* Mobile Gas was acquired in October 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 commodity-marketing businesses of Sempra Energy on April 1, 2008.  For the three months ended March 31, 2009, 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

 

 

 

 

months ended

RBS Sempra Commodities LLP - Joint Venture level margin*

 

 

March 31, 2009

 

 

 

 

 

Geographical:

 

 

 

 

North America

 

 

 $               252

 

Europe/Asia

 

 

                  102

 

  Total

 

 

 $               354

 

 

 

 

 

Product Line:

 

 

 

 

Oil - Crude & Products

 

 

 $               123

 

Power

 

 

                    93

 

Natural Gas

 

 

                    78

 

Metals

 

 

                    54

 

Other

 

 

                      6

 

  Total

 

 

 $               354

 

 

 

 

 

* 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 March 31, 2009

 

 

Joint Venture

 

Sempra

 

 

Total

 

Share**

 

Fee income and trading revenue, net of selling costs

 $              354

 

 

 

Operating and other expenses

               (200)

 

 

 

Joint Venture distributable income

 $              154

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred return on capital

 $                77

 

 $                 59

 

1st allocation - 70% Sempra / 30% RBS***

                   77

 

                    55

 

2nd allocation - 30% Sempra / 70% RBS

                     -

 

                      -

 

Distributable income

 $              154

 

 $               114

 

 

 

 

 

Sempra Commodities Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

 

 

months ended

(in millions of US dollars)

 

 

March 31, 2009

 

Sempra share of distributable income - IFRS basis

 

 

 $               114

 

U.S. GAAP conversion impact

 

 

                    39

 

Sempra equity earnings before income taxes - U.S. GAAP basis

 

 

                  153

 

Income tax expense

 

 

                  (37)

 

Sempra equity earnings from RBS Sempra Commodities LLP

 

 

                116

 

Other segment activity

 

 

(2)

 

Sempra Commodities earnings

 

 

$               114

 

 

 

 

 

**

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

Exhibit 99.2





SEMPRA ENERGY

 

 

 

Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Business Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        732

 

 $          920

 

 $             13

 

 $        297

 

 $       132

 

 $          32

 

 $            (18)

 

 

 $2,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (480)

 

            (738)

 

              (12)

 

         (227)

 

          (95)

 

           (43)

 

                   1

 

 

 (1,594)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (77)

 

             (72)

 

                  -

 

           (14)

 

          (10)

 

             (6)

 

                 (4)

 

 

    (183)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

              153

 

                -

 

            10

 

                -

 

                 (3)

 

 

      160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

            17

 

                1

 

                  -

 

                -

 

            (1)

 

                -

 

               (14)

 

 

          3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          192

 

             111

 

              154

 

             56

 

            36

 

           (17)

 

               (38)

 

 

      494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense (2)

 

           (26)

 

             (16)

 

                (3)

 

             (1)

 

            (3)

 

             (2)

 

               (27)

 

 

      (78)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (60)

 

             (36)

 

              (37)

 

           (12)

 

          (12)

 

             12

 

                 36

 

 

    (109)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  -

 

                -

 

            16

 

                -

 

                    -

 

 

        16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Attributable to Noncontrolling Interests

 

             (7)

 

                 -

 

                  -

 

                -

 

               -

 

                -

 

                    -

 

 

        (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $         99

 

 $            59

 

 $           114

 

 $          43

 

 $         37

 

 $          (7)

 

 $            (29)

 

 

 $   316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Commodities

 

Generation

 

Pipelines & Storage

 

LNG

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $        746

 

 $       1,556

 

 $           457

 

 $        446

 

 $         93

 

 $        (10)

 

 $            (18)

 

 

 $3,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales and Other Expenses

 

         (540)

 

         (1,375)

 

            (351)

 

         (357)

 

          (88)

 

           (12)

 

                 (1)

 

 

 (2,724)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

           (77)

 

             (71)

 

                (6)

 

           (14)

 

            (2)

 

                -

 

                 (5)

 

 

    (175)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings (Losses) Recorded Before Income Tax

 

               -

 

                 -

 

                  -

 

               2

 

              8

 

                -

 

                 (4)

 

 

          6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income, Net

 

              3

 

                 -

 

                  -

 

               1

 

               -

 

             15

 

                    -

 

 

        19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Interest & Tax (1)

 

          132

 

             110

 

              100

 

             78

 

            11

 

             (7)

 

               (28)

 

 

      396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest (Expense) Income (2)

 

           (26)

 

             (13)

 

                (5)

 

             (2)

 

              1

 

             (1)

 

                 (2)

 

 

      (48)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

           (32)

 

             (40)

 

              (39)

 

           (31)

 

            (4)

 

             (1)

 

                 20

 

 

    (127)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Earnings Recorded Net of Income Tax

 

               -

 

                 -

 

                  3

 

                -

 

            18

 

                -

 

                    -

 

 

        21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Losses)

 

 $         74

 

 $            57

 

 $             59

 

 $          45

 

 $         26

 

 $          (9)

 

 $            (10)

 

 

 $   242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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