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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
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Commission file number 1-14201
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Sempra Energy
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(Exact name of registrant as specified in its charter)
California 33-0732627
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
101 Ash Street, San Diego, California 92101
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(Address of principal executive offices)
(Zip Code)
(619) 696-2034
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
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Common stock outstanding on July 31, 2000: 204,141,740
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PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
SEMPRA ENERGY
STATEMENTS OF CONSOLIDATED INCOME
Dollars in millions, except per share amounts
Three Months Ended
June 30,
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2000 1999
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Revenues and Other Income
Utility revenues
Natural gas $ 716 $ 706
Electric 473 646
Other operating revenues 298 159
Other income 49 6
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Total 1,536 1,517
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Expenses
Cost of natural gas distributed 316 275
Electric fuel and net purchased power 264 109
Operating expenses 530 485
Depreciation and amortization 144 467
Other taxes and franchise payments 40 41
Preferred dividends of subsidiaries 3 3
Trust preferred distributions by subsidiary 4 --
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Total 1,301 1,380
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Income Before Interest and Income Taxes 235 137
Interest 76 54
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Income Before Income Taxes 159 83
Income Taxes 49 1
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Net Income $ 110 $ 82
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Weighted-average number of shares outstanding (Basic)* 201,386 237,157
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Weighted-average number of shares outstanding (Diluted)* 201,484 237,455
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Net Income Per Share of Common Stock (Basic and Diluted) $0.55 $0.35
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Common Dividends Declared Per Share $0.25 $0.39
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*In thousands of shares
See notes to Consolidated Financial Statements.
SEMPRA ENERGY
STATEMENTS OF CONSOLIDATED INCOME
Dollars in millions, except per share amounts
Six Months Ended
June 30,
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2000 1999
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Revenues and Other Income
Utility revenues
Natural gas $1,537 $1,404
Electric 822 1,006
Other operating revenues 570 270
Other income 73 28
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Total 3,002 2,708
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Expenses
Cost of natural gas distributed 706 566
Electric fuel and net purchased power 397 211
Operating expenses 1,029 873
Depreciation and amortization 278 609
Franchise payments and other taxes 91 86
Preferred dividends of subsidiaries 6 6
Trust preferred distributions by subsidiary 6 --
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Total 2,513 2,351
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Income Before Interest and Income Taxes 489 357
Interest 149 112
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Income Before Income Taxes 340 245
Income Taxes 117 64
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Net Income $ 223 $ 181
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Weighted-average number of shares outstanding (Basic)* 214,834 237,111
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Weighted-average number of shares outstanding (Diluted)* 214,920 237,444
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Net Income Per Share of Common Stock (Basic and Diluted) $1.04 $0.76
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Common Dividends Declared Per Share $0.50 $0.78
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*In thousands of shares
See notes to Consolidated Financial Statements.
SEMPRA ENERGY
CONSOLIDATED BALANCE SHEETS
Dollars in millions
Balance at
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June 30, December 31,
2000 1999
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ASSETS
Current assets
Cash and cash equivalents $ 546 $ 487
Accounts receivable 589 552
Income taxes receivable -- 144
Energy trading assets 3,119 1,539
Inventories 79 147
Other 138 146
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Total current assets 4,471 3,015
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Investments and other assets
Regulatory assets 879 606
Nuclear decommissioning trusts 551 551
Investments 1,245 1,164
Other assets 470 460
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Total investments and other assets 3,145 2,781
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Property, plant and equipment
Property, plant and equipment 11,406 11,127
Less accumulated depreciation and amortization (5,975) (5,733)
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Total property, plant and equipment - net 5,431 5,394
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Total assets $13,047 $11,190
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See notes to Consolidated Financial Statements.
SEMPRA ENERGY
CONSOLIDATED BALANCE SHEETS
Dollars in millions
Balance at
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June 30, December 31,
2000 1999
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt $ -- $ 182
Accounts payable 670 546
Income taxes payable 26 --
Deferred income taxes 76 67
Energy trading liabilities 2,757 1,365
Dividends and interest payable 119 154
Regulatory balancing accounts - net 497 346
Customer refunds payable 388 --
Current portion of long-term debt 153 155
Other 431 421
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Total current liabilities 5,117 3,236
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Long-term debt 3,313 2,902
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Deferred credits and other liabilities
Customer advances for construction 70 72
Post-retirement benefits other than pensions 198 204
Deferred income taxes 641 615
Deferred investment tax credits 104 106
Deferred credits and other liabilities 780 865
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Total deferred credits and other liabilities 1,793 1,862
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Preferred stock of subsidiaries 204 204
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Mandatorily redeemable trust preferred securities 200 --
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Commitments and contingent liabilities (Note 3)
SHAREHOLDERS' EQUITY
Common Stock 1,412 1,966
Retained earnings 1,057 1,101
Deferred compensation relating to ESOP (40) (42)
Accumulated other comprehensive income (9) (39)
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Total shareholders' equity 2,420 2,986
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Total liabilities and shareholders' equity $13,047 $11,190
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See notes to Consolidated Financial Statements.
UT
EXHIBIT 12.1
SEMPRA ENERGY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
For the six
Months Ended
1995 1996 1997 1998 1999 2000
--------- --------- -------- -------- -------- --------
Fixed Charges and Preferred
Stock Dividends:
Interest $ 227 $ 205 $ 209 $ 210 $ 233 165
Interest Portion of
Annual Rentals 32 28 25 20 10 5
Preferred dividends
of subsidiaries (1) 50 37 31 18 16 9
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Total Fixed Charges
and Preferred Stock
Dividends For Purpose
of Ratio $ 309 $ 270 $ 265 $ 248 $ 259 $ 179
========= ======== ======== ======== ======== ========
Earnings:
Pretax income from
continuing operations $ 665 $ 727 $ 733 $ 432 $ 573 $ 340
Add:
Fixed charges
(from above) 309 270 265 248 259 179
Less: Fixed charges
capitalized 6 5 3 3 5 2
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Fixed charges net of
capitalized charges 303 265 262 245 254 177
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Total Earnings for
Purpose of Ratio $ 968 $ 992 $ 995 $ 677 $ 827 $ 517
========= ======== ======== ======== ======== ========
Ratio of Earnings
to Combined Fixed Charges
and Preferred Stock
Dividends 3.13 3.67 3.75 2.73 3.19 2.89
========= ======== ======== ======== ======== ========
(1) In computing this ratio, "Preferred dividends of subsidiaries" represents
the before-tax earnings necessary to pay such dividends, computed at the
effective tax rates for the applicable periods.