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 26, 2008 |
SAN DIEGO GAS & ELECTRIC COMPANY |
(Exact name of registrant as specified in its charter) |
CALIFORNIA |
| 1-3779 |
| 95-1184800 |
(State of incorporation |
| (Commission |
| (IRS Employer |
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) |
|
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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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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 San Diego Gas & Electric Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
On February 26, 2008, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated net income of $289 million, or $1.10 per diluted share of common stock, for the fourth quarter of 2007 and $1.1 billion, or $4.16 per diluted share of common stock, for the fiscal year 2007. 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, 2007 and 2006. 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
February 26, 2008 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, 2007 and 2006.
3
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: February 26, 2008 | By: /S/ Dennis V. Arriola |
| Dennis V. Arriola |
|
4
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 REPORTS
RECORD INCOME FROM CONTINUING
OPERATIONS IN 2007
SAN DIEGO, Feb. 26, 2008 Sempra Energy (NYSE: SRE) today reported 2007 income from continuing operations of $1.13 billion, or $4.26 per diluted share, up from $1.09 billion, or $4.17 per diluted share, in 2006.
Income from continuing operations in 2006 included a $204 million gain on asset sales and a fourth-quarter write-down of $221 million on the companys Argentine utility investments.
Sempra Energys 2007 net income was $1.10 billion, or $4.16 per diluted share, compared with 2006 net income of $1.41 billion, or $5.38 per diluted share. The companys 2006 results included $315 million in after-tax income from discontinued operations primarily related to asset sales.
Fourth-quarter 2007 net income was $289 million, or $1.10 per diluted share, compared with $125 million, or $0.47 per diluted share, in 2006.
We are pleased that we achieved record results and exceeded our financial goals in 2007, said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. In 2008, Sempra Energy will mark its 10th anniversary and we will complete several of our major natural gas infrastructure projects. We also expect to launch our joint venture with The Royal Bank of Scotland. This transaction will significantly expand the global footprint of our commodities business, while, at the same time, enable us to raise our dividend and begin our share-repurchase program.
Revenues for Sempra Energy in 2007 were $11.4 billion, compared with $11.8 billion in 2006, due primarily to lower revenues from commodity operations. Fourth-quarter 2007 revenues were $3.1 billion, compared with $3.2 billion in the prior years quarter.
SUBSIDIARY OPERATING RESULTS
Sempra Utilities
Sempra Utilities San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) had net income of $513 million in 2007, up 12 percent from $460 million in 2006. The utilities fourth-quarter 2007 net income was $105 million, compared with $110 million in 2006.
Net income for SDG&E rose to $283 million in 2007, from $237 million in 2006, due primarily to the favorable resolution of tax issues, and higher electric transmission and generation earnings. SDG&Es fourth-quarter 2007 net income was $47 million, compared with $55 million quarterly net income in 2006, primarily due to lower taxes in 2006.
SoCalGas 2007 net income increased to $230 million from $223 million in 2006, due primarily to higher operating margin. Fourth-quarter net income for SoCalGas was $58 million in 2007, compared with $55 million in 2006.
Sempra Commodities
Sempra Commodities 2007 net income was $499 million, compared with the prior-years net income of $504 million. Fourth-quarter 2007 net income for Sempra Commodities was $186 million, compared with $214 million in the fourth quarter 2006, primarily due to reduced margins in natural gas.
In the third quarter 2007, Sempra Energy and The Royal Bank of Scotland announced their intention to form a global commodities-marketing joint venture, RBS Sempra Commodities, which will absorb the operations of Sempra Commodities. The transaction is expected to be completed in April 2008. RBS will provide the joint venture with all growth capital, credit and liquidity.
Sempra Generation
Sempra Generations net income in 2007 was $162 million, compared with $375 million in 2006. The companys 2006 net income included $204 million from the sale of its jointly owned Texas power plants. Fourth-quarter 2007 net income for Sempra Generation was $40 million, compared with $53 million in the fourth quarter 2006, due primarily to higher taxes and a three-month outage at the companys El Dorado Energy plant in Nevada.
Sempra Pipelines & Storage
Sempra Pipelines & Storage earned $64 million in 2007 net income, compared with a net loss of $165 million in 2006. In the fourth quarter 2007, Sempra Pipelines & Storage had $14 million in net income, compared with a net loss of $223 million in the fourth quarter 2006. Both the quarter and full-year results for Sempra Pipelines & Storage in 2006 were impacted by the companys write-down on its Argentine investments.
REX-West, the western leg of the Rockies Express Pipeline a joint-venture project of Kinder Morgan Energy Partners, Sempra Pipelines & Storage and ConocoPhilips -- has been put into interim service. Permitting is underway on the eastern leg of the 1,600-mile transcontinental pipeline project. During the quarter, the project partners completed a successful non-binding open-season solicitation that could extend the pipeline from its original eastern terminus in Clarington, Ohio, to Princeton, N.J.
Sempra LNG
Sempra LNG recorded a net loss of $46 million in 2007, compared with a net loss of $42 million in 2006. For the fourth quarter, Sempra LNGs 2007 net loss was $19 million, compared with $7 million in 2006, due primarily to a mark-to-market loss on an inter-company marketing agreement.
For its Energía Costa Azul receipt terminal in Baja California, Mexico, Sempra LNG expects to receive start-up liquefied natural gas (LNG) cargoes early in the second quarter 2008, with commercial operations beginning later in the same quarter. Construction on the Cameron LNG receipt terminal in Louisiana is expected to be complete and ready for commercial operations by year-end.
2008 Outlook
Sempra Energy today reaffirmed its prior 2008 earnings-per-share guidance of $3.65 to $3.85. The 2008 guidance reflects the companys reduced ownership in the commodity-marketing business when the joint venture with RBS commences, partially offset by the anticipated improved performance at other operating units and the positive impact of the share-repurchase program.
As announced previously, following the close of the transaction with RBS, Sempra Energy intends to increase its quarterly dividend to $0.35, or $1.40 annually, from the current quarterly dividend of $0.32, or $1.28 annually, and maintain a targeted dividend payout ratio of 35 percent to 40 percent of net income. Additionally, in 2008, Sempra Energy intends to repurchase $1 billion of its common stock, the first phase of its $1.5 billion to $2 billion stock-repurchase program.
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 the passcode 3144385.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2007 revenues of more than $11 billion. The Sempra Energy companies 14,000 employees serve more than 29 million consumers worldwide.
Complete financial tables, including income-statement information by business unit, is available on Sempra Energys Web site at http://www.sempra.com/downloads/4Q2007.pdf.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like believes, expects, anticipates, intends, plans, estimates, may, would, could, should or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other ris ks, 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, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, U.K. Financial Services Authority, and other regulatory bodies in the United States and other countries; capital market conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas, electric power 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 unc ertainties, 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 companys reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the companys Web site, www.sempra.com. Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.
###
SEMPRA ENERGY |
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Table A |
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STATEMENTS OF CONSOLIDATED INCOME |
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| Three months ended |
| Years ended |
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| December 31, |
| December 31, |
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(Dollars in millions, except per share amounts) | 2007 |
| 2006 |
| 2007 |
| 2006 |
| |
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| (Unaudited) |
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Operating revenues |
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|
|
|
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| |
Sempra Utilities | $ 1,859 |
| $ 1,709 |
| $ 7,053 |
| $ 6,899 |
| |
Sempra Global and parent | 1,251 |
| 1,536 |
| 4,385 |
| 4,862 |
| |
| Total operating revenues | 3,110 |
| 3,245 |
| 11,438 |
| 11,761 |
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Operating expenses |
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Sempra Utilities: |
|
|
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|
|
|
| |
| Cost of natural gas | 721 |
| 679 |
| 2,763 |
| 2,756 |
|
| Cost of electric fuel and purchased power | 203 |
| 155 |
| 699 |
| 721 |
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Sempra Global and parent: |
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| Cost of natural gas, electric fuel and purchased power | 357 |
| 358 |
| 1,302 |
| 1,221 |
|
| Other cost of sales | 192 |
| 395 |
| 988 |
| 1,468 |
|
Litigation expense | 4 |
| 13 |
| 73 |
| 56 |
| |
Other operating expenses | 883 |
| 838 |
| 2,954 |
| 2,814 |
| |
Depreciation and amortization | 172 |
| 166 |
| 686 |
| 657 |
| |
Franchise fees and other taxes | 74 |
| 67 |
| 295 |
| 275 |
| |
Gains on sale of assets, net | - |
| (2) |
| (6) |
| (1) |
| |
Impairment losses | 5 |
| 6 |
| 5 |
| 9 |
| |
| Total operating expenses | 2,611 |
| 2,675 |
| 9,759 |
| 9,976 |
|
Operating income | 499 |
| 570 |
| 1,679 |
| 1,785 |
| |
Other income, net | 20 |
| 6 |
| 81 |
| 381 |
| |
Interest income | 10 |
| 36 |
| 72 |
| 109 |
| |
Interest expense | (68) |
| (78) |
| (272) |
| (351) |
| |
Preferred dividends of subsidiaries | (3) |
| (3) |
| (10) |
| (10) |
| |
Income from continuing operations before income taxes and |
|
|
|
|
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| |
| equity in earnings (losses) of certain unconsolidated subsidiaries | 458 |
| 531 |
| 1,550 |
| 1,914 |
|
Income tax expense | 183 |
| 180 |
| 524 |
| 641 |
| |
Equity in earnings (losses) of certain unconsolidated subsidiaries | 13 |
| (222) |
| 99 |
| (182) |
| |
Income from continuing operations | 288 |
| 129 |
| 1,125 |
| 1,091 |
| |
Discontinued operations, net of income tax | 1 |
| (4) |
| (26) |
| 315 |
| |
Net income | $ 289 |
| $ 125 |
| $ 1,099 |
| $ 1,406 |
| |
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Basic earnings per share: |
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| Income from continuing operations | $ 1.12 |
| $ 0.50 |
| $ 4.34 |
| $ 4.25 |
|
| Discontinued operations, net of income tax | - |
| (0.02) |
| (0.10) |
| 1.23 |
|
| Net income | $ 1.12 |
| $ 0.48 |
| $ 4.24 |
| $ 5.48 |
|
Weighted-average number of shares outstanding (thousands) | 257,864 |
| 258,385 |
| 259,269 |
| 256,477 |
| |
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Diluted earnings per share: |
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| Income from continuing operations | $ 1.10 |
| $ 0.49 |
| $ 4.26 |
| $ 4.17 |
|
| Discontinued operations, net of income tax | - |
| (0.02) |
| (0.10) |
| 1.21 |
|
| Net income | $ 1.10 |
| $ 0.47 |
| $ 4.16 |
| $ 5.38 |
|
Weighted-average number of shares outstanding (thousands) | 262,839 |
| 263,429 |
| 264,004 |
| 261,368 |
| |
Dividends declared per share of common stock | $ 0.31 |
| $ 0.30 |
| $ 1.24 |
| $ 1.20 |
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As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented. |
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SEMPRA ENERGY |
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Table B |
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CONSOLIDATED BALANCE SHEETS |
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| December 31, |
| December 31, |
|
(Dollars in millions) |
| 2007 |
| 2006 |
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Assets |
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Current assets: |
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| Cash and cash equivalents |
| $ 668 |
| $ 920 |
| ||
| Restricted cash |
| 1 |
| 4 |
| ||
| Accounts receivable, net |
| 1,074 |
| 1,035 |
| ||
| Income taxes receivable |
| 99 |
| - |
| ||
| Deferred income taxes |
| 247 |
| 270 |
| ||
| Interest receivable |
| 4 |
| 40 |
| ||
| Trading-related receivables and deposits, net |
| 2,887 |
| 3,047 |
| ||
| Derivative trading instruments |
| 3,367 |
| 4,068 |
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| Commodities owned |
| 2,231 |
| 1,845 |
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| Inventories |
| 224 |
| 215 |
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| Regulatory assets |
| 106 |
| 193 |
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| Other |
| 430 |
| 317 |
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| Current assets of continuing operations |
| 11,338 |
| 11,954 |
| |
|
| Current assets of discontinued operations |
| - |
| 62 |
| |
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| Total current assets |
| 11,338 |
| 12,016 |
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Investments and other assets: |
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| Regulatory assets arising from fixed-price contracts and other derivatives |
| 309 |
| 353 |
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| Regulatory assets arising from pension and other postretirement |
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| benefit obligations |
| 162 |
| 356 |
| |
| Other regulatory assets |
| 460 |
| 472 |
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| Nuclear decommissioning trusts |
| 739 |
| 702 |
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| Investments |
| 1,243 |
| 1,086 |
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| Sundry |
| 956 |
| 789 |
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| Total investments and other assets |
| 3,869 |
| 3,758 |
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Property, plant and equipment, net |
| 14,884 |
| 13,175 |
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Total assets |
| $ 30,091 |
| $ 28,949 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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| Short-term debt |
| $ 1,064 |
| $ 252 |
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| Accounts payable |
| 1,563 |
| 1,587 |
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| Due to unconsolidated affiliate |
| 60 |
| - |
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| Income taxes payable |
| - |
| 9 |
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| Trading-related payables |
| 3,328 |
| 3,211 |
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| Derivative trading instruments |
| 1,974 |
| 2,304 |
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| Commodities sold with agreement to repurchase |
| 500 |
| 537 |
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| Dividends and interest payable |
| 145 |
| 145 |
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| Regulatory balancing accounts, net |
| 481 |
| 332 |
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| Fixed-price contracts and other derivatives |
| 62 |
| 87 |
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| Current portion of long-term debt |
| 7 |
| 681 |
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| Other |
| 1,210 |
| 1,197 |
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| Current liabilities of continuing operations |
| 10,394 |
| 10,342 |
| |
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| Current liabilities of discontinued operations |
| - |
| 7 |
| |
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| Total current liabilities |
| 10,394 |
| 10,349 |
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Long-term debt |
| 4,553 |
| 4,525 |
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Deferred credits and other liabilities: |
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| Due to unconsolidated affiliate |
| 102 |
| 162 |
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| Customer advances for construction |
| 153 |
| 126 |
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| Pension and other postretirement benefit obligations, net of plan assets |
| 434 |
| 609 |
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| Deferred income taxes |
| 531 |
| 412 |
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| Deferred investment tax credits |
| 61 |
| 67 |
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| Regulatory liabilities arising from removal obligations |
| 2,522 |
| 2,330 |
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| Asset retirement obligations |
| 1,129 |
| 1,128 |
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| Other regulatory liabilities |
| 265 |
| 221 |
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| Fixed-price contracts and other derivatives |
| 332 |
| 358 |
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| Deferred credits and other |
| 949 |
| 961 |
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| Total deferred credits and other liabilities |
| 6,478 |
| 6,374 |
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Preferred stock of subsidiaries |
| 179 |
| 179 |
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Minority interests |
| 148 |
| 11 |
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Shareholders' equity |
| 8,339 |
| 7,511 |
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Total liabilities and shareholders' equity |
| $ 30,091 |
| $ 28,949 |
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As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented. |
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SEMPRA ENERGY |
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Table C |
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CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
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| Years ended |
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| December 31, |
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(Dollars in millions) |
| 2007 |
| 2006 |
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Cash Flows from Operating Activities: |
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Net income |
| $ 1,099 |
| $ 1,406 |
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Adjustments to reconcile net income to net cash provided by |
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operating activities: |
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| Discontinued operations |
| 26 |
| (315) |
|
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| Depreciation and amortization |
| 686 |
| 657 |
|
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| Gains on sale of assets, net |
| (6) |
| (1) |
|
|
| Impairment losses |
| 5 |
| 9 |
|
|
| Deferred income taxes and investment tax credits |
| 149 |
| 77 |
|
|
| Noncash rate-reduction bond expense |
| 55 |
| 60 |
|
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| Equity in income of unconsolidated subsidiaries |
| (90) |
| (156) |
|
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| Other |
| 41 |
| 38 |
|
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Quasi-reorganization resolution |
| - |
| 12 |
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| |
Net changes in other working capital components |
| 25 |
| (183) |
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| |
Changes in other assets |
| 22 |
| 20 |
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Changes in other liabilities |
| 79 |
| 42 |
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| |
| Net cash provided by continuing operations |
| 2,091 |
| 1,666 |
|
|
| Net cash used in discontinued operations |
| (3) |
| (37) |
|
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| Net cash provided by operating activities |
| 2,088 |
| 1,629 |
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Cash Flows from Investing Activities: |
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Expenditures for property, plant and equipment |
| (2,011) |
| (1,907) |
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Proceeds from sale of assets from continuing operations |
| 103 |
| 40 |
|
| |
Expenditures for investments |
| (121) |
| (257) |
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Distributions from investments |
| 18 |
| 104 |
|
| |
Purchases of nuclear decommissioning and other trust assets |
| (646) |
| (546) |
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Proceeds from sales by nuclear decommissioning and other trusts |
| 613 |
| 503 |
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| |
Dividends received from unconsolidated affiliates |
| - |
| 431 |
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Other |
| (29) |
| (27) |
|
| |
| Net cash used in continuing operations |
| (2,073) |
| (1,659) |
|
|
| Net cash provided by discontinued operations |
| - |
| 793 |
|
|
| Net cash used in investing activities |
| (2,073) |
| (866) |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
| |
Common dividends paid |
| (316) |
| (283) |
|
| |
Issuances of common stock |
| 40 |
| 97 |
|
| |
Repurchases of common stock |
| (185) |
| (37) |
|
| |
Issuance of long-term debt |
| 404 |
| 552 |
|
| |
Payments on long-term debt |
| (1,072) |
| (263) |
|
| |
Increase (decrease) in short-term debt, net |
| 812 |
| (791) |
|
| |
Financing transaction related to Sempra Financial |
| - |
| 83 |
|
| |
Other |
| 21 |
| 28 |
|
| |
| Net cash used in continuing operations |
| (296) |
| (614) |
|
|
| Net cash provided by discontinued operations |
| - |
| 2 |
|
|
| Net cash used in financing activities |
| (296) |
| (612) |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
| (281) |
| 151 |
|
| |
Cash and cash equivalents, January 1 |
| 920 |
| 769 |
|
| |
Cash assumed in connection with FIN 46(R) initial consolidation |
| 29 |
| - |
|
| |
Cash and cash equivalents, December 31 |
| $ 668 |
| $ 920 |
|
| |
|
|
|
|
|
|
|
|
As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented. |
|
|
SEMPRA ENERGY |
| |||||||||
Table D |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS |
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended |
| Years ended |
| ||||
|
|
| December 31, |
| December 31, |
| ||||
(Dollars in millions) | 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||
Net Income | (unaudited) |
|
|
|
|
| ||||
Sempra Utilities: |
|
|
|
|
|
|
|
| ||
| San Diego Gas & Electric | $ 47 |
| $ 55 |
| $ 283 |
| $ 237 |
| |
| Southern California Gas | 58 |
| 55 |
| 230 |
| 223 |
| |
|
| Total Sempra Utilities | 105 |
| 110 |
| 513 |
| 460 |
|
|
|
|
|
|
|
|
|
|
|
|
Sempra Global: |
|
|
|
|
|
|
|
| ||
| Sempra Commodities | 186 |
| 214 |
| 499 |
| 504 |
| |
| Sempra Generation* | 40 |
| 53 |
| 162 |
| 375 |
| |
| Sempra Pipelines & Storage* | 14 |
| (223) |
| 64 |
| (165) |
| |
| Sempra LNG | (19) |
| (7) |
| (46) |
| (42) |
| |
|
| Total Sempra Global | 221 |
| 37 |
| 679 |
| 672 |
|
|
|
|
|
|
|
|
|
|
|
|
Parent & Other | (38) |
| (18) |
| (67) |
| (41) |
| ||
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations | 288 |
| 129 |
| 1,125 |
| 1,091 |
| ||
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations, Net of Income Tax | 1 |
| (4) |
| (26) |
| 315 |
| ||
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Income | $ 289 |
| $ 125 |
| $ 1,099 |
| $ 1,406 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| * Excludes amounts now classified as discontinued operations. |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended |
| Years ended |
| ||||
|
|
| December 31, |
| December 31, |
| ||||
(Dollars in millions) | 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||
Capital Expenditures and Investments | (unaudited) |
|
|
|
|
| ||||
Sempra Utilities: |
|
|
|
|
|
|
|
| ||
| San Diego Gas & Electric | $ 235 |
| $ 190 |
| $ 714 |
| $ 1,070 |
| |
| Southern California Gas | 157 |
| 129 |
| 457 |
| 413 |
| |
| Total Sempra Utilities | 392 |
| 319 |
| 1,171 |
| 1,483 |
| |
|
|
|
|
|
|
|
|
|
|
|
Sempra Global: |
|
|
|
|
|
|
|
| ||
| Sempra Commodities | 15 |
| 10 |
| 64 |
| 53 |
| |
| Sempra Generation | 5 |
| 3 |
| 13 |
| 40 |
| |
| Sempra Pipelines & Storage | 187 |
| 202 |
| 367 |
| 414 |
| |
| Sempra LNG | 152 |
| 153 |
| 498 |
| 619 |
| |
| Total Sempra Global | 359 |
| 368 |
| 942 |
| 1,126 |
| |
|
|
|
|
|
|
|
|
|
|
|
Parent & Other | 7 |
| 10 |
| 19 |
| (445) | (1) | ||
|
|
|
|
|
|
|
|
|
|
|
Consolidated Capital Expenditures and Investments | $ 758 |
| $ 697 |
| $ 2,132 |
| $ 2,164 |
| ||
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects the transfer of the Palomar plant to SDG&E from Sempra Generation. |
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented. |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||
SEMPRA ENERGY |
|
|
|
| ||||||||
Table E |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
OTHER OPERATING STATISTICS (Unaudited) |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
| ||||||
|
|
| Three months ended |
| Years ended |
| ||||||
|
|
| December 31, |
| December 31, |
| ||||||
SEMPRA UTILITIES | 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||
Revenues (Dollars in millions) |
|
|
|
|
|
|
|
| ||||
| SDG&E (excludes intercompany sales) | $ 765 |
| $ 692 |
| $ 2,839 |
| $ 2,770 |
| |||
| SoCalGas (excludes intercompany sales) | $ 1,094 |
| $ 1,017 |
| $ 4,214 |
| $ 4,129 |
| |||
|
|
|
|
|
|
|
|
|
|
| ||
Gas Sales (Bcf) |
| 114 |
| 110 |
| 404 |
| 402 |
| |||
Transportation and Exchange (Bcf) | 145 |
| 127 |
| 566 |
| 546 |
| ||||
Total Deliveries (Bcf) | 259 |
| 237 |
| 970 |
| 948 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||
Total Gas Customers (Thousands) |
|
|
|
| 6,531 |
| 6,468 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||
Electric Sales (Millions of kWhs) | 4,198 |
| 3,939 |
| 17,045 |
| 16,836 |
| ||||
Direct Access (Millions of kWhs) | 819 |
| 821 |
| 3,220 |
| 3,390 |
| ||||
Total Deliveries (Millions of kWhs) | 5,017 |
| 4,760 |
| 20,265 |
| 20,226 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||
Total Electric Customers (Thousands) |
|
|
|
| 1,365 |
| 1,355 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
SEMPRA GENERATION |
|
|
|
|
|
|
|
| ||||
Power Sold (Millions of kWhs) | 5,613 |
| 5,734 | (1) | 20,856 |
| 19,760 | (1) | ||||
|
|
|
|
|
|
|
|
|
|
| ||
(1) | Revised to exclude the Twin Oaks, Coleto Creek and Topaz power plants. |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||
SEMPRA PIPELINES & STORAGE |
|
|
|
|
|
|
|
| ||||
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.) |
| |||||||||||
Natural Gas Sales (Bcf) |
|
|
|
|
|
|
|
| ||||
| Argentina |
| 79 |
| 70 |
| 320 |
| 278 |
| ||
| Mexico |
| 11 |
| 10 |
| 46 |
| 44 |
| ||
| Chile |
| - |
| - |
| 1 |
| 2 |
| ||
Natural Gas Customers (Thousands) |
|
|
|
|
|
|
|
| ||||
| Argentina |
|
|
|
|
| 1,603 |
| 1,542 |
| ||
| Mexico |
|
|
|
|
| 96 |
| 101 |
| ||
| Chile |
|
|
|
|
| 39 |
| 39 |
| ||
Electric Sales (Millions of kWhs) |
|
|
|
|
|
|
|
| ||||
| Peru |
| 1,278 |
| 1,620 |
| 5,078 |
| 5,108 |
| ||
| Chile |
| 632 |
| 762 |
| 2,500 |
| 2,324 |
| ||
Electric Customers (Thousands) |
|
|
|
|
|
|
|
| ||||
| Peru |
|
|
|
|
| 809 |
| 788 |
| ||
| Chile |
|
|
|
|
| 549 |
| 534 |
|
SEMPRA ENERGY | ||||||
Table E (Continued) | ||||||
|
|
|
|
|
|
|
SEMPRA COMMODITIES |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Three months ended December 31, |
| Years ended December 31, | ||
Margin* (Dollars in millions) | 2007 | 2006 |
| 2007 | 2006 | |
Geographical: |
|
|
|
|
| |
| North America | $ 422 | $ 474 |
| $ 1,202 | $ 1,313 |
| Europe/Asia | 120 | 173 |
| 359 | 325 |
| Total | $ 542 | $ 647 |
| $ 1,561 | $ 1,638 |
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
| |
| Gas | $ 234 | $ 362 |
| $ 570 | $ 792 |
| Power | 170 | 104 |
| 460 | 431 |
| Oil - Crude & Products | 46 | 85 |
| 195 | 198 |
| Metals | 88 | 60 |
| 292 | 138 |
| Other | 4 | 36 |
| 44 | 79 |
| Total | $ 542 | $ 647 |
| $ 1,561 | $ 1,638 |
|
|
|
|
|
|
|
* Margin is a non-GAAP financial measure, consisting of operating revenues less cost of sales (primarily transportation and storage costs), both GAAP financial measures, reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense, as follows: | ||||||
|
|
|
|
|
|
|
|
| Three months ended December 31, |
| Years ended December 31, | ||
(Dollars in millions) | 2007 | 2006 |
| 2007 | 2006 | |
| Revenues | $ 773 | $ 1,078 |
| $ 2,674 | $ 3,256 |
| Cost of sales | (192) | (395) |
| (988) | (1,468) |
|
| 581 | 683 |
| 1,686 | 1,788 |
| Other related costs | (39) | (36) |
| (125) | (150) |
| Margin | $ 542 | $ 647 |
| $ 1,561 | $ 1,638 |
|
|
|
|
|
|
|
|
| Three months ended December 31, |
| Years ended December 31, | ||
Effect of EITF 02-3 (Dollars in millions) | 2007 | 2006 |
| 2007 | 2006 | |
| Mark-to-Market Earnings * | $ 139 | $ 158 |
| $ 494 | $ 487 |
| Effect of EITF 02-3 ** | 47 | 56 |
| 5 | 17 |
| GAAP Net Income | $ 186 | $ 214 |
| $ 499 | $ 504 |
|
|
|
|
|
|
|
* Represents earnings from the fair market value of all commodities transactions. This metric is a useful measurement of profitability because it simultaneously recognizes changes in the various components of transactions and reflects how the business is managed. | ||||||
** Consists of the income statement effect of not recognizing changes in the fair market value of certain physical inventories, capacity contracts for transportation and storage, and derivative hedging activities related to synthetic fuels tax credits. | ||||||
|
|
|
|
|
|
|
|
| Fair |
|
|
|
|
|
| Market Value | Scheduled Maturity (in months) | |||
Net Unrealized Revenue (Dollars in millions) | December 31, 2007 | 0 - 12 | 13 - 24 | 25 - 36 | > 36 | |
|
|
|
|
|
|
|
OTC Fair Value of forwards, swaps and options (1) | $ 1,381 | $ 1,074 | $ 95 | $ 23 | $ 189 | |
|
|
|
|
|
|
|
| Maturity of OTC Fair Value - Cumulative Percentages |
| 77.8% | 84.6% | 86.3% | 100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Contracts (2) | (178) | (274) | 118 | (7) | (15) | |
| Total Net Unrealized Revenue at December 31, 2007 | $ 1,203 | $ 800 | $ 213 | $ 16 | $ 174 |
|
|
|
|
|
|
|
| Net Unrealized Revenue - Cumulative Percentages |
| 66.5% | 84.2% | 85.5% | 100.0% |
|
|
|
|
|
|
|
(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts |
|
|
| |||
(2) Cash received or (paid) associated with open Exchange Contracts |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, | December 31, |
|
|
|
Credit Quality of Unrealized Trading Assets (net of margin) | 2007 | 2006 |
|
|
| |
Commodity Exchanges | 9% | 13% |
|
|
| |
Investment Grade | 54% | 57% |
|
|
| |
Below Investment Grade | 37% | 30% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended December 31, |
| Years ended December 31, | ||
Risk Adjusted Performance Indicators (Mark-to-Market Basis) | 2007 | 2006 |
| 2007 | 2006 | |
VaR at 95% (Dollars in millions) (1) | $ 16.5 | $ 17.3 |
| $ 13.9 | $ 16.2 | |
VaR at 99% (Dollars in millions) (2) | $ 23.3 | $ 24.3 |
| $ 19.7 | $ 22.8 | |
|
|
|
|
|
|
|
(1) Average Daily Value-at-Risk for the period using a 95% confidence level |
|
|
|
| ||
(2) Average Daily Value-at-Risk for the period using a 99% confidence level |
|
|
|
| ||
|
|
|
|
|
|
|
|
| Three months ended December 31, |
| Years ended December 31, | ||
Physical Statistics | 2007 | 2006 |
| 2007 | 2006 | |
Natural Gas (Bcf/Day) | 15 | 12.2 |
| 13.4 | 12.0 | |
Electric (Billions of kWhs) | 141.4 | 125.5 |
| 519.1 | 475.5 | |
Oil & Liquid Products (Millions Bbls/Day) | 0.7 | 0.7 |
| 0.7 | 0.7 |
Exhibit 99.2
SEMPRA ENERGY |
|
|
|
| ||||||||||||||
Table F (Unaudited) |
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Data by Business Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
| $ 768 |
| $ 1,114 |
| $ 773 |
| $ 412 |
| $ 72 |
| $ (11) |
| $ (18) |
|
| $ 3,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Operating Expenses |
| 588 |
| 937 |
| 465 |
| 328 |
| 70 |
| 13 |
| 34 |
|
| 2,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation Expense (Adjustment) |
| 2 |
| (1) |
| 4 |
| (1) |
| - |
| 1 |
| (1) |
|
| 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| 76 |
| 71 |
| 7 |
| 15 |
| 2 |
| - |
| 1 |
|
| 172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
| 102 |
| 107 |
| 297 |
| 70 |
| - |
| (25) |
| (52) |
|
| 499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income, Net |
| 1 |
| 1 |
| - |
| 3 |
| 2 |
| - |
| 13 |
|
| 20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before Interest & Taxes (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 in Earnings of Certain Unconsolidated Subsidiaries |
| - |
| - |
| - |
| - |
| 13 |
| - |
| - |
|
| 13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| 1 |
|
| 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 47 |
| $ 58 |
| $ 186 |
| $ 40 |
| $ 14 |
| $ (19) |
| $ (37) |
|
| $ 289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
| $ 696 |
| $ 1,036 |
| $ 1,078 |
| $ 422 |
| $ 68 |
| $ (1) |
| $ (54) |
|
| $ 3,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Operating Expenses |
| 519 |
| 868 |
| 701 |
| 334 |
| 62 |
| 8 |
| 4 |
|
| 2,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation Expense |
| - |
| 1 |
| 2 |
| 8 |
| 1 |
| 1 |
| - |
|
| 13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| 72 |
| 67 |
| 6 |
| 12 |
| 3 |
| - |
| 6 |
|
| 166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
| 105 |
| 100 |
| 369 |
| 68 |
| 2 |
| (10) |
| (64) |
|
| 570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| (7) |
| - |
| - |
| 1 |
| (1) |
| - |
| 13 |
|
| 6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before Interest & Taxes (1) |
| 98 |
| 100 |
| 369 |
| 69 |
| 1 |
| (10) |
| (51) |
|
| 576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Expense (Income) (2) |
| 17 |
| 11 |
| 14 |
| (11) |
| (2) |
| (3) |
| 19 |
|
| 45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit) |
| 26 |
| 34 |
| 125 |
| 27 |
| 20 |
| - |
| (52) |
|
| 180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Losses of Certain Unconsolidated Subsidiaries |
| - |
| - |
| (16) |
| - |
| (206) |
| - |
| - |
|
| (222) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| (4) |
|
| (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 55 |
| $ 55 |
| $ 214 |
| $ 53 |
| $ (223) |
| $ (7) |
| $ (22) |
|
| $ 125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes "Income (Loss) before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations. |
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net Interest Expense (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, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
| $ 2,852 |
| $ 4,282 |
| $ 2,674 |
| $ 1,476 |
| $ 314 |
| $ (22) |
| $ (138) |
|
| $11,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Operating Expenses |
| 2,041 |
| 3,563 |
| 1,848 |
| 1,168 |
| 297 |
| 42 |
| 41 |
|
| 9,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation Expense |
| 10 |
| 1 |
| 58 |
| 1 |
| - |
| 2 |
| 1 |
|
| 73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| 301 |
| 281 |
| 26 |
| 56 |
| 11 |
| - |
| 11 |
|
| 686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
| 500 |
| 437 |
| 742 |
| 251 |
| 6 |
| (66) |
| (191) |
|
| 1,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| 11 |
| (3) |
| - |
| 9 |
| (1) |
| - |
| 65 |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before Interest & Taxes (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 in Earnings of Certain Unconsolidated Subsidiaries |
| - |
| - |
| 40 |
| - |
| 59 |
| - |
| - |
|
| 99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| (26) |
|
| (26) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 283 |
| $ 230 |
| $ 499 |
| $ 162 |
| $ 64 |
| $ (46) |
| $ (93) |
|
| $ 1,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
| $ 2,785 |
| $ 4,181 |
| $ 3,256 |
| $ 1,454 |
| $ 295 |
| $ (22) |
| $ (188) |
|
| $11,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Operating Expenses |
| 2,014 |
| 3,477 |
| 2,345 |
| 1,120 |
| 272 |
| 37 |
| (2) |
|
| 9,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation Expense (Adjustment) |
| 3 |
| (2) |
| 10 |
| 38 |
| 4 |
| 1 |
| 2 |
|
| 56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| 291 |
| 267 |
| 25 |
| 46 |
| 12 |
| - |
| 16 |
|
| 657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
| 477 |
| 439 |
| 876 |
| 250 |
| 7 |
| (60) |
| (204) |
|
| 1,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| 8 |
| (1) |
| - |
| 355 |
| 2 |
| - |
| 17 |
|
| 381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before Interest & Taxes (1) |
| 485 |
| 438 |
| 876 |
| 605 |
| 9 |
| (60) |
| (187) |
|
| 2,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Expense (Income) (2) |
| 96 |
| 42 |
| 62 |
| (13) |
| (4) |
| - |
| 69 |
|
| 252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit) |
| 152 |
| 173 |
| 294 |
| 243 |
| 12 |
| (18) |
| (215) |
|
| 641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Losses of Certain Unconsolidated Subsidiaries |
| - |
| - |
| (16) |
| - |
| (166) |
| - |
| - |
|
| (182) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| 315 |
|
| 315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 237 |
| $ 223 |
| $ 504 |
| $ 375 |
| $ (165) |
| $ (42) |
| $ 274 |
|
| $ 1,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes "Income (Loss) before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations. | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net Interest Expense (Income) includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |
|
|
|