EX-99 2 exhibit991.htm EX 99.1 Exhibit 99.1

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 company’s Argentine utility investments.

Sempra Energy’s 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 company’s 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 year’s 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&E’s 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-year’s 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 Generation’s net income in 2007 was $162 million, compared with $375 million in 2006.  The company’s 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 company’s 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 company’s 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 LNG’s 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 company’s 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 Energy’s 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 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 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 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.


###







SEMPRA ENERGY

 

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENTS OF CONSOLIDATED INCOME  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

December 31,

 

December 31,

 

(Dollars in millions, except per share amounts)

2007

 

2006

 

2007

 

2006

 

 

 

(Unaudited)

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

 

 

Cost of natural gas

         721

 

          679

 

       2,763

 

     2,756

 

 

Cost of electric fuel and purchased power

         203

 

          155

 

          699

 

        721

 

Sempra Global and parent:

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

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 B

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

(Dollars in millions)

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

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

 

 

Commodities owned

 

           2,231

 

           1,845

 

 

Inventories

 

              224

 

              215

 

 

Regulatory assets

 

              106

 

              193

 

 

Other

 

              430

 

              317

 

 

 

Current assets of continuing operations

 

          11,338

 

          11,954

 

 

 

Current assets of discontinued operations

 

 -

 

                62

 

 

 

 

Total current assets

 

          11,338

 

          12,016

 

 

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

 

Regulatory assets arising from fixed-price contracts and other derivatives

 

              309

 

              353

 

 

Regulatory assets arising from pension and other postretirement

 

 

 

 

 

 

 

benefit obligations

 

              162

 

              356

 

 

Other regulatory assets

 

              460

 

              472

 

 

Nuclear decommissioning trusts

 

              739

 

              702

 

 

Investments

 

           1,243

 

           1,086

 

 

Sundry

 

              956

 

              789

 

 

 

 

Total investments and other assets

 

           3,869

 

           3,758

 

Property, plant and equipment, net

 

          14,884

 

          13,175

 

Total assets

 

 $       30,091

 

 $       28,949

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

 $         1,064

 

 $           252

 

 

Accounts payable

 

           1,563

 

           1,587

 

 

Due to unconsolidated affiliate

 

                60

 

                  -

 

 

Income taxes payable

 

 -

 

                  9

 

 

Trading-related payables

 

           3,328

 

           3,211

 

 

Derivative trading instruments

 

           1,974

 

           2,304

 

 

Commodities sold with agreement to repurchase

 

              500

 

              537

 

 

Dividends and interest payable

 

              145

 

              145

 

 

Regulatory balancing accounts, net

 

              481

 

              332

 

 

Fixed-price contracts and other derivatives

 

                62

 

                87

 

 

Current portion of long-term debt

 

                  7

 

              681

 

 

Other

 

           1,210

 

           1,197

 

 

 

Current liabilities of continuing operations

 

          10,394

 

          10,342

 

 

 

Current liabilities of discontinued operations

 

 -

 

                  7

 

 

 

 

Total current liabilities

 

          10,394

 

          10,349

 

Long-term debt

 

           4,553

 

           4,525

 

 

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

 

Due to unconsolidated affiliate

 

              102

 

              162

 

 

Customer advances for construction

 

              153

 

              126

 

 

Pension and other postretirement benefit obligations, net of plan assets

 

              434

 

              609

 

 

Deferred income taxes

 

              531

 

              412

 

 

Deferred investment tax credits

 

                61

 

                67

 

 

Regulatory liabilities arising from removal obligations

 

           2,522

 

           2,330

 

 

Asset retirement obligations

 

           1,129

 

           1,128

 

 

Other regulatory liabilities

 

              265

 

              221

 

 

Fixed-price contracts and other derivatives

 

              332

 

              358

 

 

Deferred credits and other

 

              949

 

              961

 

 

 

 

Total deferred credits and other liabilities

 

           6,478

 

           6,374

 

Preferred stock of subsidiaries

 

              179

 

              179

 

Minority interests

 

              148

 

                11

 

Shareholders' equity

 

           8,339

 

           7,511

 

Total liabilities and shareholders' equity

 

 $       30,091

 

 $       28,949

 

 

 

 

 

 

 

 

 

 

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 C

 

 

 

 

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

 

 

Years ended

 

 

 

 

 

December 31,

 

 

(Dollars in millions)

 

2007

 

2006

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income

 

 $     1,099

 

 $    1,406

 

 

Adjustments to reconcile net income to net cash provided by

 

 

 

 

 

 

  operating activities:

 

 

 

 

 

 

 

Discontinued operations

 

             26

 

        (315)

 

 

 

Depreciation and amortization

 

           686

 

         657

 

 

 

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

 

 

 

Equity in income of unconsolidated subsidiaries

 

            (90)

 

        (156)

 

 

 

Other

 

             41

 

           38

 

 

Quasi-reorganization resolution

 

               -

 

           12

 

 

Net changes in other working capital components

 

             25

 

        (183)

 

 

Changes in other assets

 

             22

 

           20

 

 

Changes in other liabilities

 

             79

 

           42

 

 

 

Net cash provided by continuing operations

 

        2,091

 

      1,666

 

 

 

Net cash used in discontinued operations

 

             (3)

 

          (37)

 

 

 

Net cash provided by operating activities

 

        2,088

 

      1,629

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Expenditures for property, plant and equipment

 

       (2,011)

 

     (1,907)

 

 

Proceeds from sale of assets from continuing operations

 

           103

 

           40

 

 

Expenditures for investments

 

          (121)

 

        (257)

 

 

Distributions from investments

 

             18

 

         104

 

 

Purchases of nuclear decommissioning and other trust assets

 

          (646)

 

        (546)

 

 

Proceeds from sales by nuclear decommissioning and other trusts

 

           613

 

         503

 

 

Dividends received from unconsolidated affiliates

 

               -

 

         431

 

 

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