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): | August 7, 2008 |
|
| Name of Registrant, State of |
| IRS Employer |
1-40 |
| PACIFIC ENTERPRISES |
| 94-0743670 |
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|
1-1402 |
| SOUTHERN CALIFORNIA GAS COMPANY |
| 95-1240705 |
|
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |
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[ ] | 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 Pacific Enterprises or Southern California Gas Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
On August 7, 2008, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated net income of $244 million, or $0.98 per diluted share of common stock, for the second quarter of 2008. 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 six months ended June 30, 2008 and 2007. A copy of such information is attached as Exhibit 99.2.
The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding Pacific Enterprises' and Southern California Gas Company's results of operations and financial condition.
Item 9.01 Financial Statements and Exhibits.
Exhibits
99.1
August 7, 2008 Sempra Energy News Release (including tables)
99.2
Sempra Energy's Income Statement Data by Business Unit for the three months and six months ended June 30, 2008 and 2007.
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.
PACIFIC ENTERPRISES
(Registrant)
Date: August 7, 2008 | By: /s/ Dennis V. Arriola |
| Dennis V. Arriola |
|
SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)
Date: August 7, 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
SECOND-QUARTER RESULTS,
RAISES EARNINGS GUIDANCE FOR 2008
Earnings-Per-Share Outlook Increased to Range of $3.80 to $4
SAN DIEGO, Aug. 7, 2008 Sempra Energy (NYSE: SRE) today reported second-quarter 2008 net income of $244 million, or $0.98 per diluted share, compared with $277 million, or $1.05 per diluted share, in the second quarter 2007. Second-quarter 2008 results reflected Sempra Energys reduced ownership in its commodities business as the result of the formation on April 1 of RBS Sempra Commodities, the joint venture with The Royal Bank of Scotland (RBS).
For the first six months of 2008, Sempra Energys net income was $486 million, or $1.90 per diluted share, compared with $505 million, or $1.91 per diluted share during the same period last year.
Sempra Energy today also announced an increase in its earnings guidance for 2008 to a range of $3.80 to $4 per share from the previous range of $3.65 to $3.85 per share.
Through the first half of the year, we are ahead of plan in meeting our 2008 financial goals and have made significant progress in the expansion of our natural gas business, said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. Additionally, our planned acquisition of EnergySouth, Inc. will increase our presence in the fastest-growing U.S. energy markets.
OPERATING HIGHLIGHTS
Sempra Utilities
Net income for Sempra Utilities San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) increased 11 percent to $117 million in the second quarter 2008 from $105 million in last years second quarter.
SDG&Es second-quarter 2008 net income rose to $61 million from $51 million in the second quarter 2007, primarily due to performance incentive awards approved during the quarter by the California Public Utilities Commission (CPUC).
SoCalGas net income in the second quarter 2008 was $56 million, compared with $54 million in the second quarter last year.
On July 31, 2008, the CPUC approved the four-year rate-case filed by SDG&E and SoCalGas. The terms of the approved rate-case allow for recovery of the forecasted operating costs and capital requirements necessary to operate the utilities. The rate adjustment for both utilities was retroactive to Jan. 1, 2008.
Sempra Commodities
Second-quarter net income for Sempra Commodities was $130 million in 2008, compared with net income of $155 million in 2007. Second-quarter 2008 net income included $93 million in equity earnings from the RBS Sempra Commodities joint venture and a $67 million gain on the transaction with RBS, offset by $30 million in charges, primarily for litigation and tax issues.
Results for 2007 and the first quarter 2008 represented 100 percent of the earnings from the commodity-marketing business prior to the formation of RBS Sempra Commodities.
Our global commodities joint venture with RBS is off to a great start, said Felsinger. The integration of operations has been seamless and early financial results have exceeded expectations.
Sempra Generation
In the second quarter 2008, Sempra Generations net income increased to $23 million from $10 million in the same quarter last year, due primarily to higher scheduled maintenance expenses in 2007.
Last month, Sempra Generation announced its first solar power project, a 10-megawatt, thin-film solar facility adjacent to the companys El Dorado Energy natural gas-fueled power plant in Boulder City, Nev. Sempra Generation expects construction to be complete and the plant operational by year-end.
Sempra Pipelines & Storage
Second-quarter net income for Sempra Pipelines & Storage rose to $24 million in 2008 from $17 million in 2007, due primarily to the start-up of western operations of the Rockies Express natural gas pipeline during the recent quarter.
On July 28, Sempra Energy agreed to acquire Mobile, Ala.-based EnergySouth, Inc. for $510 million in cash. The acquisition, which is expected to close by year-end, includes majority ownership in two high-turn, salt-dome storage facilities on the Gulf Coast that, when fully developed, will have capacity of 57 billion cubic feet (Bcf) of natural gas serving the U.S. Southeast. Sempra Pipelines & Storage will be responsible for development and operation of the storage assets, as well as management of EnergySouths Mobile Gas distribution utility.
Sempra LNG
Sempra LNG reported a net loss of $28 million in the second quarter 2008, compared with a $13 million loss in the second quarter 2007, due primarily to higher income-tax expense, as well as a higher mark-to-market loss on a marketing agreement with RBS Sempra Commodities.
Parent & Other
During the second quarter 2008, Sempra Energy incurred a $22 million loss in Parent & Other, compared with $6 million in net income in last years second quarter when the company benefited from an $18 million gain from an interest-rate swap.
Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company. Access is available by logging onto the Web site at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering the passcode 2594824.
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 13,500 employees serve more than 29 million consumers worldwide.
Income-statement information by business unit is available on Sempra Energys Web site at http://www.sempra.com/downloads/2Q2008.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 an d 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, 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 electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are 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 Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not regulated by the California Public Utilities Commission.
###
SEMPRA ENERGY | ||||||||
Table A | ||||||||
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STATEMENTS OF CONSOLIDATED INCOME |
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| Three months ended |
| Six months ended | ||||
|
| June 30, |
| June 30, | ||||
(Dollars in millions, except per share amounts) | 2008 |
| 2007 |
| 2008 |
| 2007 | |
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| (unaudited) | ||||||
Revenues |
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| |
Sempra Utilities | $ 1,887 |
| $ 1,620 |
| $ 4,177 |
| $ 3,679 | |
Sempra Global and parent | 616 |
| 1,041 |
| 1,596 |
| 1,986 | |
| Total revenues | 2,503 |
| 2,661 |
| 5,773 |
| 5,665 |
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Expenses and Other Income |
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Sempra Utilities: |
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| |
| Cost of natural gas | (784) |
| (603) |
| (2,019) |
| (1,653) |
| Cost of electric fuel and purchased power | (220) |
| (163) |
| (383) |
| (312) |
Sempra Global and parent: |
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| |
| Cost of natural gas, electric fuel and purchased power | (513) |
| (278) |
| (922) |
| (614) |
| Other cost of sales | (17) |
| (221) |
| (153) |
| (540) |
Operation and maintenance | (549) |
| (747) |
| (1,252) |
| (1,382) | |
Depreciation and amortization | (171) |
| (171) |
| (346) |
| (340) | |
Franchise fees and other taxes | (71) |
| (68) |
| (154) |
| (149) | |
Gains on sale of assets | 109 |
| 4 |
| 114 |
| 6 | |
Equity earnings (losses): |
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| |
| RBS Sempra Commodities LLP | 146 |
| - |
| 146 |
| - |
| Other | 9 |
| (6) |
| 15 |
| (12) |
Other income, net | 17 |
| 51 |
| 36 |
| 68 | |
Interest income | 10 |
| 24 |
| 24 |
| 50 | |
Interest expense | (38) |
| (66) |
| (98) |
| (136) | |
Preferred dividends of subsidiaries | (3) |
| (3) |
| (5) |
| (5) | |
Income from continuing operations before income taxes and equity earnings of certain unconsolidated subsidiaries | 428 |
| 414 |
| 776 |
| 646 | |
Income tax expense | (202) |
| (143) |
| (329) |
| (206) | |
Equity earnings, net of income tax | 18 |
| 9 |
| 39 |
| 67 | |
Income from continuing operations | 244 |
| 280 |
| 486 |
| 507 | |
Discontinued operations, net of income tax | - |
| (3) |
| - |
| (2) | |
Net income | $ 244 |
| $ 277 |
| $ 486 |
| $ 505 | |
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Basic earnings per share: |
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| Income from continuing operations | $ 0.99 |
| $ 1.08 |
| $ 1.93 |
| $ 1.95 |
| Discontinued operations, net of income tax | - |
| (0.01) |
| - |
| (0.01) |
| Net income | $ 0.99 |
| $ 1.07 |
| $ 1.93 |
| $ 1.94 |
Weighted-average number of shares outstanding (thousands) | 245,576 |
| 260,198 |
| 252,100 |
| 259,830 | |
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Diluted earnings per share: |
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| Income from continuing operations | $ 0.98 |
| $ 1.06 |
| $ 1.90 |
| $ 1.92 |
| Discontinued operations, net of income tax | - |
| (0.01) |
| - |
| (0.01) |
| Net income | $ 0.98 |
| $ 1.05 |
| $ 1.90 |
| $ 1.91 |
Weighted-average number of shares outstanding (thousands) | 249,677 |
| 264,963 |
| 256,169 |
| 264,518 | |
Dividends declared per share of common stock | $ 0.35 |
| $ 0.31 |
| $ 0.67 |
| $ 0.62 | |
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SEMPRA ENERGY |
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Table B |
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CONSOLIDATED BALANCE SHEETS |
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| June 30, |
| December 31, |
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(Dollars in millions) |
| 2008 |
| 2007 |
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| (unaudited) |
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Assets |
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Current assets: |
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| Cash and cash equivalents |
| $ 230 |
| $ 668 |
| ||
| Short-term investments |
| 413 |
| - |
| ||
| Restricted cash |
| - |
| 1 |
| ||
| Accounts receivable, net |
| 997 |
| 1,074 |
| ||
| Income taxes receivable |
| 180 |
| 99 |
| ||
| Deferred income taxes |
| 147 |
| 247 |
| ||
| Trading-related receivables and deposits, net |
| - |
| 2,719 |
| ||
| Derivative trading instruments |
| - |
| 2,170 | * | ||
| Commodities owned |
| - |
| 2,231 | * | ||
| Inventories |
| 125 |
| 224 |
| ||
| Regulatory assets |
| 39 |
| 106 |
| ||
| Fixed-price contracts and other derivatives |
| 285 |
| 28 |
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| Other |
| 94 |
| 397 | * | ||
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| Total current assets |
| 2,510 |
| 9,964 |
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Investments and other assets: |
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| Regulatory assets arising from fixed-price contracts and other derivatives |
| 274 |
| 309 |
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| Regulatory assets arising from pension and other postretirement |
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| benefit obligations |
| 166 |
| 162 |
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| Other regulatory assets |
| 497 |
| 460 |
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| Nuclear decommissioning trusts |
| 685 |
| 739 |
| ||
| Investment in RBS Sempra Commodities LLP |
| 1,985 |
| - |
| ||
| Other investments |
| 1,261 |
| 1,243 |
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| Sundry |
| 806 |
| 956 |
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| Total investments and other assets |
| 5,674 |
| 3,869 |
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Property, plant and equipment, net |
| 15,571 |
| 14,884 |
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Total assets |
| $ 23,755 |
| $ 28,717 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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| Short-term debt |
| $ 829 |
| $ 1,064 |
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| Accounts payable |
| 879 |
| 1,563 |
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| Due to unconsolidated affiliates |
| 54 |
| 60 |
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| Trading-related payables |
| - |
| 2,265 | * | ||
| Derivative trading instruments |
| - |
| 1,672 | * | ||
| Commodities sold with agreement to repurchase |
| - |
| 500 |
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| Dividends and interest payable |
| 145 |
| 145 |
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| Regulatory balancing accounts, net |
| 604 |
| 481 |
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| Current portion of long-term debt |
| 302 |
| 7 |
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| Fixed-price contracts and other derivatives |
| 317 |
| 53 |
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| Other |
| 1,146 |
| 1,210 | * | ||
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| Total current liabilities |
| 4,276 |
| 9,020 |
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Long-term debt |
| 4,809 |
| 4,553 |
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Deferred credits and other liabilities: |
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| Due to unconsolidated affiliate |
| 102 |
| 102 |
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| Customer advances for construction |
| 153 |
| 153 |
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| Pension and other postretirement benefit obligations, net of plan assets |
| 433 |
| 434 |
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| Deferred income taxes |
| 668 |
| 531 |
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| Deferred investment tax credits |
| 59 |
| 61 |
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| Regulatory liabilities arising from removal obligations |
| 2,516 |
| 2,522 |
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| Asset retirement obligations |
| 1,148 |
| 1,129 |
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| Other regulatory liabilities |
| 250 |
| 265 |
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| Fixed-price contracts and other derivatives |
| 312 |
| 332 |
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| Deferred credits and other |
| 958 |
| 949 |
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| Total deferred credits and other liabilities |
| 6,599 |
| 6,478 |
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Preferred stock of subsidiaries |
| 179 |
| 179 |
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Minority interests |
| 209 |
| 148 |
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Shareholders' equity |
| 7,683 |
| 8,339 |
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Total liabilities and shareholders' equity |
| $ 23,755 |
| $ 28,717 |
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* December 31, 2007 amounts have been reclassified due to the adoption of FASB Staff Position FIN 39-1. |
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SEMPRA ENERGY | |||||
Table C | |||||
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CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
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| Six months ended | ||
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| June 30, | ||
(Dollars in millions) |
| 2008 |
| 2007 | |
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| (unaudited) | ||
Cash Flows from Operating Activities: |
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Net income |
| $ 486 |
| $ 505 | |
Adjustments to reconcile net income to net cash |
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provided by operating activities: |
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| Discontinued operations |
| - |
| 2 |
| Depreciation and amortization |
| 346 |
| 340 |
| Deferred income taxes and investment tax credits |
| 51 |
| (39) |
| Equity earnings |
| (200) |
| (55) |
| Gains on sale of assets |
| (114) |
| (6) |
| Fixed-price contracts and other derivatives |
| 62 |
| (28) |
| Other |
| 40 |
| 18 |
Net changes in other working capital components |
| 226 |
| 918 | |
Changes in other assets |
| (10) |
| 33 | |
Changes in other liabilities |
| (27) |
| (10) | |
| Net cash provided by continuing operations |
| 860 |
| 1,678 |
| Net cash used in discontinued operations |
| - |
| (3) |
| Net cash provided by operating activities |
| 860 |
| 1,675 |
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Cash Flows from Investing Activities: |
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Expenditures for property, plant and equipment |
| (1,114) |
| (889) | |
Proceeds from sale of assets, net of cash sold |
| 2,071 |
| 61 | |
Expenditures for investments |
| (2,180) |
| (5) | |
Distributions from investments |
| 16 |
| - | |
Purchases of nuclear decommissioning and other trust assets |
| (173) |
| (341) | |
Proceeds from sales by nuclear decommissioning and other trusts |
| 177 |
| 300 | |
Decrease in notes receivable from unconsolidated affiliates |
| 60 |
| - | |
Dividends received from unconsolidated affiliates |
| - |
| 4 | |
Other |
| (15) |
| (9) | |
| Net cash used in investing activities |
| (1,158) |
| (879) |
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Cash Flows from Financing Activities: |
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Common dividends paid |
| (166) |
| (152) | |
Issuances of common stock |
| 11 |
| 28 | |
Repurchases of common stock |
| (1,002) |
| - | |
Increase in short-term debt, net |
| 496 |
| 374 | |
Issuance of long-term debt |
| 593 |
| 4 | |
Payments on long-term debt |
| (73) |
| (654) | |
Other |
| 1 |
| 7 | |
| Net cash used in financing activities |
| (140) |
| (393) |
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Increase (decrease) in cash and cash equivalents |
| (438) |
| 403 | |
Cash and cash equivalents, January 1 |
| 668 |
| 920 | |
Cash assumed in connection with FIN 46(R) consolidation |
| - |
| 29 | |
Cash and cash equivalents, June 30 |
| $ 230 |
| $ 1,352 | |
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SEMPRA ENERGY |
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Table D |
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BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited) | ||||||||||
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| Three months ended |
| Six months ended |
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| June 30, |
| June 30, |
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(Dollars in millions) | 2008 |
| 2007 |
| 2008 |
| 2007 |
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Net Income |
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Sempra Utilities: |
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| San Diego Gas & Electric | $ 61 |
| $ 51 |
| $ 135 |
| $ 113 |
| |
| Southern California Gas | 56 |
| 54 |
| 113 |
| 109 |
| |
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| Total Sempra Utilities | 117 |
| 105 |
| 248 |
| 222 |
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Sempra Global: |
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| Sempra Commodities | 130 |
| 155 |
| 189 |
| 226 |
| |
| Sempra Generation | 23 |
| 10 |
| 68 |
| 64 |
| |
| Sempra Pipelines & Storage | 24 |
| 17 |
| 50 |
| 33 |
| |
| Sempra LNG | (28) |
| (13) |
| (37) |
| (23) |
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| Total Sempra Global | 149 |
| 169 |
| 270 |
| 300 |
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|
|
Parent & Other | (22) |
| 6 |
| (32) |
| (15) |
| ||
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations | 244 |
| 280 |
| 486 |
| 507 |
| ||
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations, Net of Income Tax | - |
| (3) |
| - |
| (2) |
| ||
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Income | $ 244 |
| $ 277 |
| $ 486 |
| $ 505 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended |
| Six months ended |
| ||||
|
|
| June 30, |
| June 30, |
| ||||
(Dollars in millions) | 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||
Capital Expenditures and Investments* |
|
|
|
|
|
|
|
| ||
Sempra Utilities: |
|
|
|
|
|
|
|
| ||
| San Diego Gas & Electric | $ 194 |
| $ 148 |
| $ 665 | ** | $ 305 |
| |
| Southern California Gas | 126 |
| 105 |
| 242 |
| 191 |
| |
| Total Sempra Utilities | 320 |
| 253 |
| 907 |
| 496 |
| |
|
|
|
|
|
|
|
|
|
|
|
Sempra Global: |
|
|
|
|
|
|
|
| ||
| Sempra Commodities | - |
| 12 |
| 37 |
| 25 |
| |
| Sempra Generation | 2 |
| 3 |
| 13 |
| 4 |
| |
| Sempra Pipelines & Storage | 93 |
| 58 |
| 302 |
| 137 |
| |
| Sempra LNG | 152 |
| 138 |
| 249 |
| 224 |
| |
| Total Sempra Global | 247 |
| 211 |
| 601 |
| 390 |
| |
|
|
|
|
|
|
|
|
|
|
|
Parent & Other | 4 |
| 2 |
| 186 | ** | 8 |
| ||
|
|
|
|
|
|
|
|
|
|
|
Consolidated Capital Expenditures and Investments | $ 571 |
| $ 466 |
| $ 1,694 |
| $ 894 |
| ||
|
|
|
|
|
|
|
|
|
|
|
* | Investments do not include the $1.6 billion contribution to RBS Sempra Commodities in the second quarter of 2008. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
** | Amounts for SDG&E and Parent & Other include the purchase of $236 and $177, respectively, of industrial development bonds purchased in the first quarter of 2008. In the second quarter of 2008, Parent & Other purchased $75 of these bonds from SDG&E. | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMPRA ENERGY |
|
|
| ||||||
Table E |
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING STATISTICS (Unaudited) |
|
|
|
|
| ||||
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
|
|
| Three months ended |
| Six months ended | ||||
|
|
| June 30, |
| June 30, | ||||
SEMPRA UTILITIES | 2008 |
| 2007 |
| 2008 |
| 2007 | ||
|
|
|
|
|
|
|
|
|
|
Revenues (Dollars in millions) |
|
|
|
|
|
|
| ||
| SDG&E (excludes intercompany sales) | $ 752 |
| $ 655 |
| $ 1,494 |
| $ 1,360 | |
| SoCalGas (excludes intercompany sales) | $ 1,135 |
| $ 965 |
| $ 2,683 |
| $ 2,319 | |
|
|
|
|
|
|
|
|
|
|
Gas Sales (Bcf) | 81 |
| 84 |
| 225 |
| 225 | ||
Transportation and Exchange (Bcf) | 136 |
| 123 |
| 274 |
| 243 | ||
Total Deliveries (Bcf) | 217 |
| 207 |
| 499 |
| 468 | ||
|
|
|
|
|
|
|
|
|
|
Total Gas Customers (Thousands) |
|
|
|
| 6,553 |
| 6,501 | ||
|
|
|
|
|
|
|
|
|
|
Electric Sales (Millions of kWhs) | 4,021 |
| 3,869 |
| 8,296 |
| 8,059 | ||
Direct Access (Millions of kWhs) | 750 |
| 716 |
| 1,515 |
| 1,494 | ||
Total Deliveries (Millions of kWhs) | 4,771 |
| 4,585 |
| 9,811 |
| 9,553 | ||
|
|
|
|
|
|
|
|
|
|
Total Electric Customers (Thousands) |
|
|
|
| 1,367 |
| 1,360 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMPRA GENERATION |
|
|
|
|
|
|
| ||
Power Sold (Millions of kWhs) | 5,506 |
| 4,148 |
| 11,118 |
| 9,525 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMPRA PIPELINES & STORAGE |
|
|
|
|
|
|
| ||
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.) | |||||||||
Natural Gas Sales (Bcf) |
|
|
|
|
|
|
| ||
| Argentina |
| 81 |
| 78 |
| 152 |
| 141 |
| Mexico |
| 12 |
| 11 |
| 24 |
| 22 |
| Chile |
| - |
| - |
| - |
| - |
Natural Gas Customers (Thousands) |
|
|
|
|
|
|
| ||
| Argentina |
|
|
|
|
| 1,637 |
| 1,568 |
| Mexico |
|
|
|
|
| 95 |
| 98 |
| Chile |
|
|
|
|
| 39 |
| 39 |
Electric Sales (Millions of kWhs) |
|
|
|
|
|
|
| ||
| Peru |
| 1,354 |
| 1,258 |
| 2,716 |
| 2,527 |
| Chile |
| 568 |
| 621 |
| 1,232 |
| 1,286 |
Electric Customers (Thousands) |
|
|
|
|
|
|
| ||
| Peru |
|
|
|
|
| 822 |
| 799 |
| Chile |
|
|
|
|
| 557 |
| 541 |
SEMPRA ENERGY | ||||
Table E (Continued) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMPRA COMMODITIES |
|
|
| |
The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP. RBS Sempra Commodities LLP acquired the commodity-marketing businesses of Sempra Energy on April 1, 2008. For the three months ended June 30, 2008, 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 Marketing. The margin and financial data below represents the total results of RBS Sempra Commodities LLP as calculated under International Financial Reporting Standards (IFRS). | ||||
|
|
|
|
|
RBS Sempra Commodities LLP |
|
|
| |
|
|
|
|
|
Operating Statistics |
|
|
| |
(in millions of US dollars) |
|
|
| |
|
| Three |
|
|
|
| months ended |
|
|
RBS Sempra Commodities LLP - Joint Venture level margin* | June 30, 2008 |
|
| |
|
|
|
|
|
Geographical: |
|
|
| |
| North America | $ 522 |
|
|
| Europe/Asia | 124 |
|
|
| Total | $ 646 |
|
|
|
|
|
|
|
Product Line: |
|
|
| |
| Natural Gas | $ 306 |
|
|
| Power | 174 |
|
|
| Oil - Crude & Products | 92 |
|
|
| Metals | 42 |
|
|
| Other | 32 |
|
|
| Total | $ 646 |
|
|
|
|
|
|
|
* Margin consists of operating revenues less cost of sales (primarily transportation and storage costs) reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense. | ||||
|
|
|
|
|
Financial Information |
|
|
| |
(in millions of US dollars) |
|
|
| |
|
|
|
|
|
RBS Sempra Commodities LLP | Three months ended June 30, 2008 | |||
|
| Joint Venture |
| Sempra |
|
| Total |
| Share* |
| Fee income and trading revenue, net of selling costs | $ 646 |
|
|
| Operating and other expenses | (312) |
|
|
| Joint Venture distributable income | $ 334 |
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred return on capital | $ 148 |
| $ 60 |
| 1st allocation - 70% Sempra / 30% RBS | 125 |
| 87 |
| 2nd allocation - 30% Sempra / 70% RBS | 61 |
| 18 |
| Distributable income | $ 334 |
| $ 165 |
|
|
|
|
|
Sempra Earnings from RBS Sempra Commodities LLP |
|
|
| |
|
|
|
|
|
|
|
|
| Three |
|
|
|
| months ended |
(in millions of US dollars) |
|
| June 30, 2008 | |
| Sempra share of distributable income - IFRS basis |
|
| $ 165 |
| U.S. GAAP conversion impact |
|
| (19) |
| Sempra equity earnings - U.S. GAAP basis |
|
| 146 |
| Income tax expense |
|
| (53) |
| Sempra equity earnings from RBS Sempra Commodities LLP |
|
| $ 93 |
|
|
|
|
|
* After payment of the preferred return, Sempra receives 70% of the first $500 million and 30% of any remaining income. The preferred return and the $500 million tranche are prorated over the year. |
Exhibit 99.2
SEMPRA ENERGY |
|
|
| ||||||||||||||
Table F (Unaudited) |
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Data by Business Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 754 |
| $ 1,143 |
| $ 16 |
| $ 482 |
| $ 118 |
| $ 5 |
| $ (15) |
|
| $ 2,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (564) |
| (971) |
| (43) |
| (423) |
| (114) |
| (32) |
| (7) |
|
| (2,154) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (78) |
| (71) |
| - |
| (14) |
| (3) |
| (2) |
| (3) |
|
| (171) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on Sale of Assets |
| - |
| - |
| 109 |
| - |
| - |
| - |
| - |
|
| 109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings (Losses) Recorded Before Income Tax |
| - |
| - |
| 146 |
| - |
| 12 |
| - |
| (3) |
|
| 155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income, Net |
| 5 |
| 2 |
| - |
| 1 |
| 3 |
| - |
| 6 |
|
| 17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 117 |
| 103 |
| 228 |
| 46 |
| 16 |
| (29) |
| (22) |
|
| 459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest (Expense) Income (2) |
| (21) |
| (11) |
| (4) |
| (2) |
| 1 |
| (1) |
| 7 |
|
| (31) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (35) |
| (36) |
| (94) |
| (21) |
| (11) |
| 2 |
| (7) |
|
| (202) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings Recorded Net of Income Tax |
| - |
| - |
| - |
| - |
| 18 |
| - |
| - |
|
| 18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 61 |
| $ 56 |
| $ 130 |
| $ 23 |
| $ 24 |
| $ (28) |
| $ (22) |
|
| $ 244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 659 |
| $ 981 |
| $ 710 |
| $ 277 |
| $ 84 |
| $ (4) |
| $ (46) |
|
| $ 2,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (473) |
| (808) |
| (457) |
| (249) |
| (80) |
| (11) |
| (2) |
|
| (2,080) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (75) |
| (70) |
| (6) |
| (13) |
| (3) |
| - |
| (4) |
|
| (171) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on Sale of Assets |
| - |
| 2 |
| - |
| - |
| - |
| - |
| 2 |
|
| 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Losses Recorded Before Income Tax |
| - |
| - |
| - |
| - |
| (3) |
| - |
| (3) |
|
| (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| (2) |
| (2) |
| - |
| (2) |
| 1 |
| - |
| 56 |
|
| 51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 109 |
| 103 |
| 247 |
| 13 |
| (1) |
| (15) |
| 3 |
|
| 459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest (Expense) Income (2) |
| (23) |
| (10) |
| - |
| 2 |
| 1 |
| - |
| (15) |
|
| (45) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (35) |
| (39) |
| (86) |
| (5) |
| 2 |
| 2 |
| 18 |
|
| (143) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings (Losses) Recorded Net of Income Tax |
| - |
| - |
| (6) |
| - |
| 15 |
| - |
| - |
|
| 9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| (3) |
|
| (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 51 |
| $ 54 |
| $ 155 |
| $ 10 |
| $ 17 |
| $ (13) |
| $ 3 |
|
| $ 277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes "Income (Loss) before Interest & Taxes" 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 1,500 |
| $ 2,699 |
| $ 473 |
| $ 928 |
| $ 211 |
| $ (5) |
| $ (33) |
|
| $ 5,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (1,107) |
| (2,346) |
| (395) |
| (782) |
| (202) |
| (44) |
| (7) |
|
| (4,883) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (155) |
| (142) |
| (6) |
| (28) |
| (5) |
| (2) |
| (8) |
|
| (346) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) on Sale of Assets |
| 3 |
| - |
| 110 |
| 2 |
| - |
| - |
| (1) |
|
| 114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings (Losses) Recorded Before Income Tax |
| - |
| - |
| 146 |
| 2 |
| 20 |
| - |
| (7) |
|
| 161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income, Net |
| 8 |
| 2 |
| - |
| 2 |
| 3 |
| 15 |
| 6 |
|
| 36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 249 |
| 213 |
| 328 |
| 124 |
| 27 |
| (36) |
| (50) |
|
| 855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest (Expense) Income (2) |
| (47) |
| (24) |
| (9) |
| (4) |
| 2 |
| (2) |
| 5 |
|
| (79) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (67) |
| (76) |
| (133) |
| (52) |
| (15) |
| 1 |
| 13 |
|
| (329) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings Recorded Net of Income Tax |
| - |
| - |
| 3 |
| - |
| 36 |
| - |
| - |
|
| 39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 135 |
| $ 113 |
| $ 189 |
| $ 68 |
| $ 50 |
| $ (37) |
| $ (32) |
|
| $ 486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
(Dollars in millions) |
| SDG&E |
| SoCalGas |
| Commodities |
| Generation |
| Pipelines & Storage |
| LNG |
| Consolidating Adjustments, Parent & Other |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
| $ 1,368 |
| $ 2,349 |
| $ 1,222 |
| $ 674 |
| $ 161 |
| $ (11) |
| $ (98) |
|
| $ 5,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales and Other Expenses |
| (989) |
| (1,999) |
| (931) |
| (548) |
| (150) |
| (21) |
| (12) |
|
| (4,650) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization |
| (150) |
| (139) |
| (13) |
| (25) |
| (6) |
| - |
| (7) |
|
| (340) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on Sale of Assets |
| 2 |
| 2 |
| - |
| - |
| - |
| - |
| 2 |
|
| 6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Losses Recorded Before Income Tax |
| - |
| - |
| - |
| (1) |
| (3) |
| - |
| (8) |
|
| (12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
| 2 |
| (4) |
| - |
| (1) |
| 1 |
| - |
| 70 |
|
| 68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Interest & Tax (1) |
| 233 |
| 209 |
| 278 |
| 99 |
| 3 |
| (32) |
| (53) |
|
| 737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest (Expense) Income (2) |
| (47) |
| (22) |
| (2) |
| 9 |
| - |
| (1) |
| (28) |
|
| (91) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Expense) Benefit |
| (73) |
| (78) |
| (90) |
| (44) |
| 3 |
| 10 |
| 66 |
|
| (206) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Earnings Recorded Net of Income Tax |
| - |
| - |
| 40 |
| - |
| 27 |
| - |
| - |
|
| 67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Discontinued Operations |
| - |
| - |
| - |
| - |
| - |
| - |
| (2) |
|
| (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
| $ 113 |
| $ 109 |
| $ 226 |
| $ 64 |
| $ 33 |
| $ (23) |
| $ (17) |
|
| $ 505 |
|
|
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(1) Management believes "Income (Loss) before Interest & Taxes" 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. | |||||||||||||||||
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(2) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |