SEMPRA ENERGY

Table A

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended

Six months ended

June 30,

June 30,

(Dollars in millions, except per share amounts)

2010 

2009 

2010 

2009 

(unaudited)

REVENUES

Sempra Utilities

$ 1,512

$ 1,316

$ 3,424

$ 2,958

Sempra Global and parent

496

373

1,118

839

    Total revenues

2,008

1,689

4,542

3,797

EXPENSES AND OTHER INCOME

Sempra Utilities:

    Cost of natural gas

(359)

(249)

(1,117)

(789)

    Cost of electric fuel and purchased power

(129)

(277)

(300)

Sempra Global and parent:

    Cost of natural gas, electric fuel and purchased power

(257)

(187)

(595)

(455)

    Other cost of sales

(20)

(16)

(45)

(33)

Li tigation expense

1

(4)

(167)

3

Other operation and maintenance

(616)

(582)

(1,192)

(1,105)

Depreciation and amortization

(215)

(189)

(425)

(372)

Franchise fees and other taxes

(77)

(69)

(167)

(1 51)

Write-off of long-lived assets

-

(132)

-

(132)

Equity earnings (losses):

    RBS Sempra Commodities LLP

(16)

126

(9)

279

    Other

8

2

16

9

Other income, net

8

70

16

73

Interest income

4

5

8

11

Interest expense

(103)

(79)

(212)

(161)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

237

256

376

674

Income tax expense

(59)

(90)

(117)

(199)

Equity earnings, net of income tax

27

23

46

39

Net income

205

189

305

514

Losses attributable to noncontrolling interests

20

12

28

5

Preferred dividends of subsidiaries

(3)

(3)

(5)

(5)

Earnings

$ 222

$ 198

$ 328

$ 514

Basic earnings per common share

$ 0.90

$ 0.82

$ 1.33

$ 2.12

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

246,784

242,718

246,435

242,245

Diluted earnings per common share

$ 0.89

$ 0.80

$ 1.31

$ 2.09

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

249,727

247,090

249,835

246,039

Dividends declared per share of common stock

$ 0.39

$ 0.39

$ 0.78

$ 0.78

SEMPRA ENERGY

Table B

CONDENSED CONSOLIDATED BALANCE SHEETS

&nbs p;

June 30,

December 31,

(Dollars in millions)

2010 

2009 

(unaudited)

Assets

Current assets:

&nb sp;

Cash and cash equivalents

$ 188

$ 110

Restricted cash

3

35

Accounts receivable

818

1,130

Due from unconsolidated affiliates

32

41

Income taxes receivable

196

221

Deferred income taxes

-

10

Inventories

151

197

Regulatory assets

82

54

Fixed-price contracts and other derivatives

77

77

Insurance receivable related to wildfire litigation

150

273

Other

176

147

Total current assets

1,873

2,295

Investments and other assets:

Restricted cash

27

-

Re gulatory assets arising from fixed-price contracts and other derivatives

243

241

Regulatory assets arising from pension and other postretirement benefit obligations

967

959

Other regulatory assets

836

603

Nuclear decommissioning trusts

675

678

Investment in RBS Sempra Commodities LLP

1,956

2,172

Other investments

2,451

2 ,151

Goodwill and other intangible assets

538

524

Sundry

596

608

Total investments and other assets

8,289

7,936

Property, plant and equipment, net

18,924

18,281

Total assets

$ 29,086

$ 28,512

Liabilities and Equity

Current liabilities:

Short-term debt

$ 923

$ 618

Accounts payable

649

693

Due to unconsolidated affiliates

12

29

Deferred income taxes

2

-

Dividends and interest payable

181

190

Accrued compensation and benefits

220

&nbs p;

264

Regulatory balancing accounts, net

525

382

&n bsp;

Current portion of long-term debt

307

573

Fixed-price contracts and other derivatives

99

95

Customer deposits

138

145

Reserve for wildfire litigation

241

270

Other

754

629

Total current liabilities

4,051

3,888

Long-term debt

7,562

7,460

Deferred credits and other liabilities:

Due to unconsolidated affiliate

-

2

Customer advances for construction

147

146

Pension and other postretirement benefit obligations, net of plan assets

1,242

1,252

Deferred income taxes

1,466

1,318

Deferred investment tax credits

53

54

Regulatory liabilities arising from removal obligations

2,588

2,557

Asset retirement obligations

1,319

1,277

Other regulatory liabilities

156

181

Fixed-price contracts and other derivatives

326

312

Deferred credits and other

687

735

&nbs p;

Total deferred credits and other liabilities

7,984

7,834

Contingently redeemable preferred stock of subsidiary

79

79

Equity:

Total Sempra Energy shareholders' equity

9,190

9,007

Preferred stock of subsidiaries

100

100

Other noncontrolling interests

120

144

Total equity

9,410

9,251

Total liabilities and equity

$ 29,086

$ 28,512

SEMPRA ENERGY

Table C

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

Six months ended

June 30,

(Dollars in millions)

2010 

2009 

(unaudited)

Cash Flows from Operating Activities:

Net income

$ 305

$ 514

Adjustments to reconcile net income to net cash  

  provided by operating activities:

Depreciation and amortization

425

372

Deferred income taxes and investment tax credits

96

90

Equity earnings

(53)

(327)

Write-off of long-lived assets

-

132

Fixed-price contracts and other derivatives

14

(38)

Other

(6)

48

Net change in other working capital components

294

364

Distributions from RBS Sempra Commodities LLP

198

375

Changes in other assets

53

21

Changes in other liabilities

(19)

(26)

Net cash provided by operating activities

1,307

1,525

Cash Flows from Investing Activities:

Expenditures for property, plant and equipment

(839)

(938)

Proceeds from sale of assets

-

179

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

(370)

(217)

Distributions from investments

36

9

Purchases of nuclear decommissioning and other trust assets

(159)

(99)

Proceeds from sales by nuclear decommissioning and other trusts

159

93

Other

6

(14)

Net cash used in investing activities

(1,167)

(987)

Cash Flows from Financing Activities:

Common dividends paid

(172)

(170)

Preferred dividends paid by subsidiaries

(5)

(5)

Issuances of common stock

22

28

Repurchases of common stock

(2)

-

Increase (decre ase) in short-term debt, net

534

(612)

Issuances of debt (maturities greater than 90 days)

270

1,108

Payments on debt (maturities greater than 90 days)

(710)

(311)

Purchase of noncontrolling interes t

-

(94)

Other

1

5

Net cash used in financing activities

(62)

(51)

Increase in cash and cash equivalents

78

487

Cash and cash equivalents, January 1

110

331

Cash and cash equivalents, June 30

$ 188

$ 818

SEMPRA ENERGY

Table D

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

Three months ended

Six months ended

June 30,

June 30,

(Dollars in millions)

2010 

2009 

2010 

2009 

&n bsp;

(unaudited)

Earnings (Losses)

 < /p>

San Diego Gas & Electric

$ 75

$ 70

$ 158

$ 169

Southern California Gas

69

65

134

124

Sempra Generation

48

33

(5)

76

Sempra Pipelines & Storage

39

(27)

77

10

Sempra LNG

13

(12)

45

(19)

Parent & Other

(22)

(16)

(76)

(45)

Earnings before Sempra Commodities

222

113

333

315

Sempra Commodities

-

85

(5)

199

Earnings

$ 222

$ 198

$ 328

$ 514

Three months ended

Six months ended

June 30,

June 30,

(Dollars in millions)

2010 

2009 

2010 

2009 

(unaudited)

Capital Expenditures and Investments

San Diego Gas & Electric

$ 232

$ 366

$ 522

$ 595

Southern California Gas

102

115

216

227

Sempra Generation

1

10

5

13

Sempra Pipelines & Storage

350

227

460

328

Sempra LNG

2

71

4

142

Parent & Other

2

1

2

2

Eliminations(1)

-

(152)

-

(152)

Consolidated Capita l Expenditures and Investments

$ 689

$ 638

$ 1,209

$ 1,155

(1)

In the second quarter of 2009, SDG&E purchased $152 industrial development bonds from Parent and Other.

SEMPRA ENERGY

Table E

OTHER OPERATING STATISTICS (Unaudited)

Three months ended

Six months ended

June 30,

June 30,

SEMPRA UTILITIES

2010 

2009 

2010 

2009 

Revenues (Dollars in millions)

SDG&E (excludes intercompany sales)

$ 688

$ 629

$ 1,429

$ 1,359

SoCalGas (excludes intercompany sales)

$ 824

$ 687

$ 1,995

$ 1,599

Gas Sales (bcf)

85

80

217

211

Transportatio n (bcf)

113

123

230

251

Total Deliveries (bcf)

198

203

447

462

Total Gas Customers (Thousands)

6,622

6,590

Electric Sales (Millions of kWhs)

3,763

3,968

7,818

8,132

Direct Access (Millions of kWhs)

764

750

1,484

1,490

Total Deliveries (Millions of kWhs)

4,527

4,718< /p>

9,302

9,622

Total Electric Customers (Thousands)

1,383

1,375

SEMPRA GENERATION

Power Sold (Millions of kWhs)

5,553

5,482

10,505

11,209

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

83

83

147

148

Mexico

5

4

11

9

Mobile Gas

8

7

18

16

Natural Gas Customers (Thousands)

Argentina

1,731

1,693

Mexico

90

93

Mobile Gas

90

94

Electric Sales (Millions of kWhs)

Peru

1,483

1,380

2,962

2,773

Chile

570

593

1,170

1,270

Electric Customers (Thousands)

Peru

877

851

Chile

586

569

SEMPRA ENERGY

Table E (Continued)

SEMPRA COMMODITIES

The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP. 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 June 30,

Six months ended June 30,

RBS Sempra Commodities LLP - Joint Venture level margin(1)

2010

2009

2010

2009

Geographical:

North America

$ 180

$ 220

$ 292

$ 472

Europe/Asia

10

103

105

205

$ 190

$ 323

$ 397

$ 677

Product Line:

Oil - Crude & Products

$ 9

$ 70

$ (4)

$ 193

Power

160

94

265

187

Natural Gas

(44)

67

(11)

145

Metals

41

81

102

135

Other

24

11

45

17

  Total

$ 190

$ 323

$ 397

$ 677

Financial Information

(in millions of US dollars)

Three months ended June 30,

Six months ended June 30,

RBS Sempra Commodities LLP

2010

2009

2010

2009

Fee income and trading revenue, net of selling costs

$ 190

$ 323

$ 397

$ 677

Operating and other expenses

(163)

(181)

(371)

(381)

Joint Venture distributable income

$ 27

$ 142

$ 26

$ 296

Joint Venture Total:

Preferred return on capital

$ 26

$ 84

$ 26

$ 161

Reversal of Q1 2010 loss

1

-

-

-

1st allocation - 70% Sempra / 30% RBS

-

58

-

135

Distributable income

$ 27

$ 142

$ 26

$ 296

Sempra's Share(2):

Preferred return on capital

$ 26

$ 60

$ 26

$ 119

Reversal of Q1 2010 loss

1

-

-

-

1st allocation - 70% Sempra / 30% RBS

-

41

-

94

Certain allocated costs

5

1

5

3

Distributable income

$ 32

$ 102

$ 31

$ 216

Sempra Commodities Earnings

Three months ended June 30,

Six months ended June 30,

(in millions of US dollars)

2010

2009

2010

2009

Sempra share of distributable income - IFRS basis

$ 32

$ 102

$ 31

$ 216

U.S. GAAP conversion impact

(48)

24

(40)

63

Sempra equity earnings (losse s) before income taxes - U.S. GAAP basis

(16)

126

(9)

279

Income tax (expense) benefit

14

(39)

15

(76)

Sempra equity earnings (losses) from RBS Sempra Commodities LLP

(2)

87

6

203

Other segment activity

2

(2)

(11)

(4)

Sempra Commodities earnings (losses)

$ -

$ 85

$ (5)

$ 199

(1)

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.

(2)

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. Losses are shared equally between Sempra and RBS.

  ;