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): |
August 2, 2005 |
SEMPRA ENERGY
- ---------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
|
CALIFORNIA |
1-14201 |
33-0732627 |
|
(State of incorporation |
(Commission |
(I.R.S. Employer |
|
101 ASH STREET, SAN DIEGO, CALIFORNIA |
92101 |
|
(Address of principal executive offices) |
(Zip Code) |
|
Registrant's telephone number, including area code |
(619) 696-2034 |
---------------------------------------------------------------------
(Former name or former address, if changed since last report.)
FORM 8-K
Item 2.02 Results of Operations and Financial Condition
The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
On August 2, 2005, Sempra Energy issued a press release announcing consolidated net income of $121 million, or $0.48 per diluted share of common stock, for the second quarter of 2005. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.
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 six months ended June 30, 2005 and 2004. A copy of such information is attached as Exhibit 99.2
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
99.1 August 2, 2005 Sempra Energy News Release (including tables)
99.2 Sempra Energy's Income Statement Data by Business Unit for the three months and the six months ended June 30, 2005 and 2004.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SEMPRA ENERGY
(Registrant)
|
Date: August 2, 2005 |
By: /s/ F. H. Ault |
|
F. H. Ault |
|
Exhibit 99.1
|
News Release |
|
|
Media Contact: |
Doug Kline |
|
Financial Contacts: |
Dennis Arriola/Karen Sedgwick |
SEMPRA ENERGY REPORTS
SECOND-QUARTER 2005 EARNINGS
- Company Increases 2005 Earnings-Per-Share Guidance to $3.20 to $3.40
- Construction to Commence on Louisiana LNG Receipt Terminal
SAN DIEGO, Aug. 2, 2005 - Sempra Energy today reported unaudited second-quarter 2005 earnings of $121 million, or $0.48 per diluted share, compared with $121 million, or $0.52 per diluted share, in the second quarter 2004.
For the first six months of 2005, Sempra Energy's earnings were $344 million, or $1.40 per diluted share, up approximately 8 percent from $318 million, or $1.37 per diluted share, during the same period last year. Earnings per share in 2005 have been affected by a greater number of shares outstanding.
Sempra Energy today also increased its 2005 earnings-per-share guidance to a range of $3.20 to $3.40 from a range of $3.10 to $3.30. The increase is based on expected earnings improvements primarily at the company's utility and commodities businesses during the second half of the year.
"We are pleased with our second-quarter performance and expect improved results from our California utilities, Sempra Commodities and other businesses over the next two quarters to meet our increased earnings guidance for the year," said Stephen L. Baum, chairman and chief executive officer of Sempra Energy. "In addition to our reported earnings, at the end of the second quarter, our commodities group had approximately $50 million of unrecognized mark-to-market, after-tax profits, most of which will be recognized as GAAP net income by the end of this year. Also, during the second half of the year, our California utilities' net income should benefit from approximately $55 million in expected performance-based-ratemaking incentives and a pending settlement with the California Independent System Operator."
Revenues for Sempra Energy were $2.3 billion in the second quarter 2005, compared with $2 billion in the year-ago quarter, due primarily to higher natural gas commodity prices at the California utilities and increased power and natural gas sales by other Sempra Energy businesses.
OPERATING HIGHLIGHTS
Sempra Utilities
Net income for Southern California Gas Co. rose to $58 million during the second quarter 2005 from $50 million in the year-earlier period, due primarily to lower operating expenses.
Net income for San Diego Gas & Electric (SDG&E) in the second quarter 2005 was $29 million, compared with $30 million in last year's second quarter, as a result of reduced revenues and higher operating costs attributable to the company's share of the San Onofre Nuclear Generating Station.
Baum said that, during the final half of the year, the utilities expect approval by the California Public Utilities Commission of performance-based-ratemaking incentive awards for demand-side-management programs, resulting in approximately $30 million in net income. Also in the second half of the year, SDG&E expects to benefit from the favorable settlement of a dispute with the California Independent System Operator over grid-management charges, resulting in approximately $25 million in net income.
Sempra Commodities
Sempra Commodities recorded $26 million in net income during the second quarter 2005, compared with $46 million during the year-ago period. At the end of the second quarter, Sempra Commodities had significant inventories of natural gas and oil that had been sold for future delivery. The company expects most of the approximately $50 million in after-tax profits from these transactions to be recognized before the end of 2005.
Sempra Generation
Sempra Generation's second-quarter net income increased to $27 million in 2005 from $19 million last year. The company benefited from increased power sales from its Texas generating facilities, including the Coleto Creek power plant, which was acquired in July 2004. Second-quarter 2004 results included a provision for litigation expense. Last week, Sempra Generation completed its acquisition of Reliant Energy's 50-percent interest in the 480-megawatt El Dorado Energy power plant in Boulder City, Nev. Sempra Generation now owns the entire plant.
Sempra Pipelines & Storage
Net income for Sempra Pipelines & Storage in the second quarter 2005 was $16 million, compared with $17 million in the year-ago quarter. During the quarter, Sempra Pipelines & Storage recorded a $3 million gain from the sale of a 25-percent ownership interest in its Liberty Gas Storage, a natural gas storage facility under development in Louisiana. In last year's second quarter, the company benefited from $5 million in net income from the sale of a portion of the common stock in its jointly owned Peruvian utility, Luz del Sur.
Sempra LNG
Sempra LNG reported a net loss of $5 million in the second quarter 2005, compared with a net loss of $2 million in the second quarter 2004.
Yesterday, Sempra LNG announced that it had executed a 20-year agreement to provide Eni S.p.A. with approximately 40 percent, or 600 million cubic feet per day, of the capacity of Sempra LNG's Cameron liquefied natural gas (LNG) receipt terminal under development near Lake Charles, La. The terminal is expected to begin operations in 2008.
"With the Eni agreement finalized and additional commercial negotiations underway, we will commence construction on the Cameron LNG terminal this quarter," said Baum. "Construction on our Mexico terminal, Energia Costa Azul, is progressing and it will be the first LNG receipt terminal on the West Coast of North America."
Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with key company executives. Access is available by logging onto the Web site at www.sempra.com. For those unable to log onto the live Webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (706) 645-9291 and entering the passcode 7177131.
Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies' 13,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
Income-statement information by business unit is available on Sempra Energy's Web site at http://www.sempra.com/downloads/2Q2005_Table_F.pdf.
###
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and
legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company's Web site, www.sempra.com.
Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.
|
Table A |
||||||||||
|
STATEMENTS OF CONSOLIDATED INCOME (Unaudited) |
||||||||||
|
Three months ended |
Six months ended |
|||||||||
|
June 30, |
June 30, |
|||||||||
|
(Dollars in millions, except per share amounts) |
2005 |
|
2004 |
2005 |
|
2004 |
||||
|
Operating revenues |
||||||||||
|
California utilities: |
||||||||||
|
Natural gas |
$ 1,055 |
$ 947 |
$ 2,488 |
$ 2,280 |
||||||
|
Electric |
406 |
420 |
800 |
801 |
||||||
|
Other |
811 |
629 |
1,676 |
1,275 |
||||||
|
Total operating revenues |
2,272 |
1,996 |
4,964 |
4,356 |
||||||
|
Operating expenses |
||||||||||
|
California utilities: |
||||||||||
|
Cost of natural gas |
600 |
482 |
1,513 |
1,306 |
||||||
|
Cost of electric fuel and purchased power |
146 |
155 |
291 |
282 |
||||||
|
Other cost of sales |
560 |
375 |
1,144 |
702 |
||||||
|
Other operating expenses |
534 |
546 |
1,076 |
1,067 |
||||||
|
Depreciation and amortization |
163 |
165 |
324 |
330 |
||||||
|
Franchise fees and other taxes |
56 |
53 |
124 |
117 |
||||||
|
Total operating expenses |
2,059 |
1,776 |
4,472 |
3,804 |
||||||
|
Operating income |
213 |
220 |
492 |
552 |
||||||
|
Other income, net |
9 |
13 |
26 |
18 |
||||||
|
Interest income |
12 |
10 |
23 |
33 |
||||||
|
Interest expense |
(72 |
) |
(80 |
) |
(146 |
) |
(160 |
) |
||
|
Preferred dividends of subsidiaries |
(3 |
) |
(3 |
) |
(5 |
) |
(5 |
) |
||
|
Income from continuing operations before income taxes |
159 |
160 |
390 |
438 |
||||||
|
Income tax expense |
36 |
31 |
44 |
88 |
||||||
|
Income from continuing operations |
123 |
129 |
346 |
350 |
||||||
|
Loss from discontinued operations, net of tax |
- |
(6 |
) |
- |
(30 |
) |
||||
|
Loss on disposal of discontinued operations, net of tax |
(2 |
) |
(2 |
) |
(2 |
) |
(2 |
) |
||
|
Net income |
$ 121 |
$ 121 |
$ 344 |
$ 318 |
||||||
|
Basic earnings per share: |
||||||||||
|
Income from continuing operations |
$ 0.51 |
$ 0.56 |
$ 1.45 |
$ 1.53 |
||||||
|
Discontinued operations, net of tax |
(0.01 |
) |
(0.04 |
) |
(0.01 |
) |
(0.14 |
) |
||
|
Net income |
$ 0.50 |
$ 0.52 |
$ 1.44 |
$ 1.39 |
||||||
|
Weighted-average number of shares outstanding (thousands) |
243,898 |
230,432 |
238,448 |
229,245 |
||||||
|
Diluted earnings per share: |
||||||||||
|
Income from continuing operations |
$ 0.49 |
$ 0.55 |
$ 1.41 |
$ 1.51 |
||||||
|
Discontinued operations, net of tax |
(0.01 |
) |
(0.03 |
) |
(0.01 |
) |
(0.14 |
) |
||
|
Net income |
$ 0.48 |
$ 0.52 |
$ 1.40 |
$ 1.37 |
||||||
|
Weighted-average number of shares outstanding (thousands) |
250,073 |
234,312 |
245,772 |
232,738 |
||||||
|
Dividends declared per share of common stock |
$ 0.29 |
$ 0.25 |
$ 0.58 |
$ 0.50 |
||||||
|
Table B |
|||||
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
|
June 30, |
December 31, |
||||
|
(Dollars in millions) |
|
2005 |
|
2004 |
|
|
Assets |
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
$ 726 |
$ 419 |
|||
|
Short-term investments |
12 |
15 |
|||
|
Accounts receivable |
768 |
1,032 |
|||
|
Due from unconsolidated affiliate |
4 |
4 |
|||
|
Deferred income taxes |
62 |
15 |
|||
|
Interest receivable |
22 |
80 |
|||
|
Trading-related receivables and deposits, net |
2,327 |
2,606 |
|||
|
Derivative trading instruments |
3,126 |
2,339 |
|||
|
Commodities owned |
1,531 |
1,547 |
|||
|
Regulatory assets arising from fixed-price contracts and other derivatives |
132 |
152 |
|||
|
Other regulatory assets |
108 |
103 |
|||
|
Inventories |
101 |
172 |
|||
|
Other |
172 |
222 |
|||
|
Current assets of continuing operations |
9,091 |
8,706 |
|||
|
Current assets of discontinued operations |
58 |
70 |
|||
|
Total current assets |
9,149 |
8,776 |
|||
|
Investments and other assets: |
|||||
|
Due from unconsolidated affiliates |
27 |
42 |
|||
|
Regulatory assets arising from fixed-price contracts and other derivatives |
438 |
500 |
|||
|
Other regulatory assets |
577 |
619 |
|||
|
Nuclear decommissioning trusts |
617 |
612 |
|||
|
Investments |
1,109 |
1,164 |
|||
|
Sundry |
854 |
844 |
|||
|
Total investments and other assets |
3,622 |
3,781 |
|||
|
Property, plant and equipment, net |
11,434 |
11,086 |
|||
|
Total assets |
$ 24,205 |
$ 23,643 |
|||
|
Liabilities and Shareholders' Equity |
|||||
|
Current liabilities: |
|||||
|
Short-term debt |
$ 251 |
$ 405 |
|||
|
Accounts payable |
796 |
1,126 |
|||
|
Due to unconsolidated affiliates (mandatorily redeemable preferred securities) |
- |
205 |
|||
|
Income taxes payable |
97 |
187 |
|||
|
Trading-related payables |
2,946 |
3,182 |
|||
|
Derivative trading instruments |
2,376 |
1,484 |
|||
|
Commodities sold with agreement to repurchase |
181 |
513 |
|||
|
Dividends and interest payable |
136 |
123 |
|||
|
Regulatory balancing accounts, net |
577 |
509 |
|||
|
Fixed-price contracts and other derivatives |
135 |
157 |
|||
|
Current portion of long-term debt |
401 |
398 |
|||
|
Other |
863 |
776 |
|||
|
Current liabilities of continuing operations |
8,759 |
9,065 |
|||
|
Current liabilities of discontinued operations |
6 |
17 |
|||
|
Total current liabilities |
8,765 |
9,082 |
|||
|
Long-term debt |
4,369 |
4,192 |
|||
|
Deferred credits and other liabilities: |
|||||
|
Due to unconsolidated affiliates |
162 |
162 |
|||
|
Customer advances for construction |
95 |
97 |
|||
|
Postretirement benefits other than pensions |
125 |
129 |
|||
|
Deferred income taxes |
361 |
420 |
|||
|
Deferred investment tax credits |
76 |
78 |
|||
|
Regulatory liabilities arising from cost of removal obligations |
2,416 |
2,359 |
|||
|
Regulatory liabilities arising from asset retirement obligations |
330 |
333 |
|||
|
Other regulatory liabilities |
63 |
67 |
|||
|
Fixed-price contracts and other derivatives |
438 |
500 |
|||
|
Asset retirement obligations |
332 |
326 |
|||
|
Deferred credits and other |
847 |
854 |
|||
|
Total deferred credits and other liabilities |
5,245 |
5,325 |
|||
|
Preferred stock of subsidiaries |
179 |
179 |
|||
|
Shareholders' equity |
5,647 |
4,865 |
|||
|
Total liabilities and shareholders' equity |
$ 24,205 |
$ 23,643 |
|||
|
SEMPRA ENERGY |
|||||||
|
Table C |
|||||||
|
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) |
|||||||
|
Six months ended |
|||||||
|
June 30, |
|||||||
|
(Dollars in millions) |
|
2005 |
|
2004 |
|||
|
Cash Flows from Operating Activities: |
|||||||
|
Net income |
$ 344 |
$ 318 |
|||||
|
Adjustments to reconcile net income to net cash provided by operating |
|||||||
|
activities: |
|||||||
|
Loss from discontinued operations, net of tax |
- |
30 |
|||||
|
Loss on disposal of discontinued operations, net of tax |
2 |
2 |
|||||
|
Depreciation and amortization |
324 |
330 |
|||||
|
Deferred income taxes and investment tax credits |
(59 |
) |
(12 |
) |
|||
|
Other |
21 |
49 |
|||||
|
Net changes in other working capital components |
(65 |
) |
34 |
||||
|
Changes in other assets |
(1 |
) |
(61 |
) |
|||
|
Changes in other liabilities |
(1 |
) |
8 |
||||
|
Net cash provided by continuing operations |
565 |
698 |
|||||
|
Net cash used in discontinued operations |
- |
(30 |
) |
||||
|
Net cash provided by operating activities |
565 |
668 |
|||||
|
Cash Flows from Investing Activities: |
|||||||
|
Expenditures for property, plant and equipment |
(585 |
) |
(498 |
) |
|||
|
Proceeds from sale of assets |
8 |
363 |
(1) |
||||
|
Proceeds from disposal of discontinued operations |
- |
112 |
|||||
|
Investments in subsidiaries |
(6 |
) |
(13 |
) |
|||
|
Dividends received from affiliates |
43 |
47 |
|||||
|
Other |
6 |
9 |
|||||
|
Net cash provided by (used in) investing activities |
(534 |
) |
20 |
||||
|
Cash Flows from Financing Activities: |
|||||||
|
Common dividends paid |
(119 |
) |
(96 |
) |
|||
|
Issuances of common stock |
666 |
60 |
|||||
|
Repurchases of common stock |
(95 |
) |
(5 |
) |
|||
|
Issuances of long-term debt |
250 |
896 |
|||||
|
Redemption of mandatorily redeemable preferred securities |
(200 |
) |
- |
||||
|
Payments on long-term debt |
(69) |
(877 |
) |
||||
|
Increase (decrease) in short-term debt, net |
(154 |
) |
63 |
||||
|
Other |
(3 |
) |
(3 |
) |
|||
|
Net cash provided by financing activities |
276 |
38 |
|||||
|
Increase in cash and cash equivalents |
307 |
726 |
|||||
|
Cash and cash equivalents, January 1 |
419 |
409 |
|||||
|
Cash and cash equivalents, June 30 |
$ 726 |
$ 1,135 |
|||||
|
(1) |
Proceeds from the sale of U.S. Treasury obligations which previously securitized the Mesquite synthetic lease. |
||||||
|
SEMPRA ENERGY |
||||||||||
|
Table D |
||||||||||
|
BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited) |
||||||||||
|
Three months ended |
Six months ended |
|||||||||
|
June 30, |
June 30, |
|||||||||
|
(Dollars in millions) |
2005 |
|
2004 |
2005 |
|
2004 |
||||
|
Net Income |
||||||||||
|
California Utilities: |
||||||||||
|
San Diego Gas & Electric |
$ 29 |
$ 30 |
$ 88 |
$ 80 |
||||||
|
Southern California Gas |
58 |
50 |
127 |
106 |
||||||
|
Total California Utilities |
87 |
80 |
215 |
186 |
||||||
|
Sempra Global: |
||||||||||
|
Sempra Commodities |
26 |
46 |
55 |
103 |
||||||
|
Sempra Generation |
27 |
19 |
73 |
54 |
||||||
|
Sempra Pipelines & Storage |
16 |
17 |
29 |
28 |
||||||
|
Sempra LNG |
(5 |
) |
(2 |
) |
(10 |
) |
4 |
|||
|
Total Sempra Global |
64 |
80 |
147 |
189 |
||||||
|
Sempra Financial |
7 |
6 |
11 |
16 |
||||||
|
Parent & Other |
(35 |
) |
(37 |
) |
(27 |
) |
(41 |
) |
||
|
Continuing Operations |
123 |
129 |
346 |
350 |
||||||
|
Discontinued Operations (1) |
(2 |
) |
(8 |
) |
(2 |
) |
(32 |
) |
||
|
Consolidated Net Income |
$ 121 |
$ 121 |
$ 344 |
$ 318 |
||||||
|
(1) |
Reflects Atlantic Electric & Gas. |
|||||||||
|
Three months ended |
Six months ended |
|||||||||
|
June 30, |
June 30, |
|||||||||
|
(Dollars in millions) |
2005 |
|
2004 |
|
2005 |
|
2004 |
|||
|
Capital Expenditures and Investments |
||||||||||
|
California Utilities: |
||||||||||
|
San Diego Gas & Electric |
$ 102 |
$ 112 |
$ 196 |
$ 181 |
||||||
|
Southern California Gas |
83 |
82 |
146 |
144 |
||||||
|
Total California Utilities |
185 |
194 |
342 |
325 |
||||||
|
Sempra Global: |
||||||||||
|
Sempra Generation |
45 |
34 |
94 |
48 |
||||||
|
Sempra Commodities |
16 |
36 |
29 |
82 |
||||||
|
Sempra Pipelines & Storage |
3 |
11 |
7 |
16 |
||||||
|
Sempra LNG |
68 |
- |
113 |
22 |
||||||
|
Total Sempra Global |
132 |
81 |
243 |
168 |
||||||
|
Parent & Other |
4 |
10 |
6 |
18 |
||||||
|
Consolidated Capital Expenditures and Investments |
$ 321 |
$ 285 |
$ 591 |
$ 511 |
||||||
|
SEMPRA ENERGY |
|||||||||||||
|
Table E |
|||||||||||||
|
OTHER OPERATING STATISTICS (Unaudited) |
|||||||||||||
|
Three months ended |
Six months ended |
||||||||||||
|
June 30, |
|
June 30, |
|||||||||||
|
CALIFORNIA UTILITIES |
2005 |
|
2004 |
|
2005 |
|
2004 |
||||||
|
Revenues (Dollars in millions) |
|||||||||||||
|
SDG&E (excludes intercompany sales) |
$ 535 |
$ 529 |
$ 1,151 |
$ 1,104 |
|||||||||
|
SoCalGas (excludes intercompany sales) |
$ 926 |
$ 838 |
$ 2,137 |
$ 1,977 |
|||||||||
|
Gas Sales (Bcf) |
86 |
81 |
223 |
221 |
|||||||||
|
Transportation and Exchange (Bcf) |
117 |
128 |
239 |
249 |
|||||||||
|
Total Deliveries (Bcf) |
203 |
209 |
462 |
470 |
|||||||||
|
Total Gas Customers (Thousands) |
6,335 |
6,251 |
|||||||||||
|
Electric Sales (Millions of kWhs) |
3,782 |
3,747 |
7,688 |
7,559 |
|||||||||
|
Direct Access (Millions of kWhs) |
808 |
929 |
1,628 |
1,658 |
|||||||||
|
Total Deliveries (Millions of kWhs) |
4,590 |
4,676 |
9,316 |
9,217 |
|||||||||
|
Total Electric Customers (Thousands) |
1,327 |
1,306 |
|||||||||||
|
SEMPRA GENERATION |
|
|
|
|
|
|
|||||||
|
Power Sold (Millions of kWhs) |
5,010 |
3,884 |
10,649 |
8,361 |
|||||||||
|
SEMPRA PIPELINES & STORAGE |
|||||||||||||
|
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy). |
|||||||||||||
|
Natural Gas Sales (Bcf) |
|||||||||||||
|
Argentina |
71 |
62 |
122 |
113 |
|||||||||
|
Mexico |
11 |
10 |
21 |
20 |
|||||||||
|
Chile |
- |
- |
1 |
1 |
|||||||||
|
Natural Gas Customers (Thousands) |
|||||||||||||
|
Argentina |
1,473 |
1,429 |
|||||||||||
|
Mexico |
98 |
103 |
|||||||||||
|
Chile |
38 |
37 |
|||||||||||
|
Electric Sales (Millions of kWhs) |
|||||||||||||
|
Peru |
1,075 |
1,016 |
2,127 |
2,023 |
|||||||||
|
Chile |
508 |
502 |
1,241 |
1,010 |
|||||||||
|
Electric Customers (Thousands) |
|||||||||||||
|
Peru |
757 |
740 |
|||||||||||
|
Chile |
516 |
502 |
|||||||||||
|
SEMPRA ENERGY |
||||||
|
Table E (Continued) |
||||||
|
SEMPRA COMMODITIES |
|
|
|
|
|
|
|
Three months ended |
Six months ended |
|||||
|
June 30, |
June 30, |
|||||
|
Margin * (Dollars in millions) |
2005 |
2004 |
2005 |
2004 |
||
|
Geographical: |
||||||
|
North America |
$ 169 |
$ 147 |
$ 294 |
$ 267 |
||
|
Europe/Asia |
(35) |
36 |
(6) |
120 |
||
|
Total |
$ 134 |
$ 183 |
$ 288 |
$ 387 |
||
|
Product Line: |
||||||
|
Gas |
$ 16 |
$ 52 |
$ 1 |
$ 94 |
||
|
Power |
82 |
9 |
124 |
54 |
||
|
Oil - Crude & Products |
(9) |
49 |
71 |
91 |
||
|
Metals |
25 |
51 |
39 |
109 |
||
|
Other |
20 |
22 |
53 |
39 |
||
|
Total |
$ 134 |
$ 183 |
$ 288 |
$ 387 |
||
|
* Margin consists of net revenues less related costs (primarily brokerage, transportation and storage) plus or minus net interest expense/income. |
||||||
|
Three months ended |
Six months ended |
|||||
|
June 30, |
June 30, |
|||||
|
Effect of EITF 02-03 (Dollars in millions) |
2005 |
2004 |
2005 |
2004 |
||
|
Mark-to-Market Earnings ** |
$ 77 |
$ 44 |
$ 129 |
$ 99 |
||
|
Effect of EITF 02-03 *** |
(51) |
2 |
(74) |
4 |
||
|
GAAP Net Income |
$ 26 |
$ 46 |
$ 55 |
$ 103 |
||
|
** Represents the fair market value of all commodities transactions. This metric is a useful measurement of profitability because it simultaneously recognizes changes in the various components of transactions and reflects how the business is managed. |
||||||
|
*** Consists of the income statement effect of not recognizing changes in the fair market value of certain physical inventories and capacity contracts for transportation and storage. |
||||||
|
Fair |
||||||
|
Market Value |
||||||
|
June 30, |
Scheduled Maturity (in months) |
|||||
|
Net Unrealized Revenue (Dollars in millions) |
2005 |
0 - 12 |
13 - 24 |
25 - 36 |
> 36 |
|
|
Sources of Over-the-Counter (OTC) Fair Value: |
||||||
|
Prices actively quoted |
$ 718 |
$ 659 |
$ (89) |
$ 61 |
$ 87 |
|
|
Prices provided by other external sources |
25 |
(5) |
1 |
- |
29 |
|
|
Prices based on models and other valuation methods |
(7) |
5 |
- |
- |
(12) |
|
|
Total OTC Fair Value (1) |
$ 736 |
$ 659 |
$ (88) |
$ 61 |
$ 104 |
|
|
Maturity of OTC Fair Value |
||||||
|
Percentage |
100.0% |
89.6% |
(12.0%) |
8.3% |
14.1% |
|
|
Cumulative Percentages |
|
89.6% |
77.6% |
85.9% |
100.0% |
|
|
|
|
|
|
|
|
|
|
Exchange Contracts (2) |
$ 166 |
$ 258 |
$ 25 |
$ (70) |
$ (47) |
|
|
Total Net Unrealized Revenue at June 30, 2005 |
$ 902 |
|||||
|
(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 |
||||||
|
June 30, |
December 31, |
|||||
|
Credit Quality of Unrealized Trading Assets (net of margin) |
2005 |
2004 |
||||
|
Commodity Exchanges |
15% |
10% |
||||
|
Investment Grade |
70% |
66% |
||||
|
Below Investment Grade |
15% |
24% |
||||
|
Three months ended |
Six months ended |
|||||
|
June 30, |
June 30, |
|||||
|
Risk Adjusted Performance Indicators (Mark-to-Market Basis) |
2005 |
2004 |
2005 |
2004 |
||
|
VaR at 95% (Dollars in millions) (1) |
$ 9.6 |
$ 6.4 |
$ 9.1 |
$ 6.1 |
||
|
VaR at 99% (Dollars in millions) (2) |
$ 13.6 |
$ 9.0 |
$ 12.8 |
$ 8.5 |
||
|
Risk Adjusted Return on Capital (RAROC) (3) |
35% |
33% |
36% |
37% |
||
|
(1) Average Daily Value-at-Risk for the period using a 95% confidence level |
||||||
|
(2) Average Daily Value-at-Risk for the period using a 99% confidence level |
||||||
|
(3) Average Daily Trading Margin/Average Daily VaR at 95% confidence level |
||||||
|
Physical Statistics |
||||||
|
Natural Gas (BCF/Day) |
10.6 |
12.8 |
11.4 |
13.3 |
||
|
Electric (Billions of kWhs) |
57.3 |
79.2 |
165.1 |
175.8 |
||
|
Oil & Liquid Products (Millions Bbls/Day) |
2.0 |
1.7 |
2.0 |
1.9 |
||