Sempra Energy Reports Higher 2011 Earnings, Raises Dividend 25 Percent

- Full-year Adjusted Earnings per Share Increase 14 Percent

- All Businesses Deliver Strong 2011 Performance

- Dividend to Increase to $2.40 per Share from $1.92 per Share, on Annualized Basis

- Company Sets New 2012 Earnings-per-share Guidance Range of $4 to $4.30, Reflecting Change in Accounting Method for Solar Tax Credits

Feb 28, 2012

SAN DIEGO, Feb. 28, 2012 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported 2011 earnings of $1.4 billion, or $5.62 per diluted share, compared with earnings of $739 million, or $2.98 per diluted share, in 2010.

Sempra Energy's adjusted earnings in 2011 were $1.1 billion, or $4.47 per diluted share, up approximately 14 percent from 2010 adjusted earnings of $974 million, or $3.93 per diluted share.  The company's 2011 adjusted earnings excluded a second-quarter 2011 gain of $277 million related to the South American utility acquisitions.  In 2010, Sempra Energy's adjusted earnings excluded a $139 million charge for a write-down on the RBS Sempra Commodities investment and an after-tax litigation charge of $96 million.

In the fourth quarter 2011, Sempra Energy's earnings were $292 million, or $1.21 per diluted share, compared with $280 million, or $1.15 per diluted share, in the prior year's quarter.  

Also this morning, Sempra Energy announced that the company's board of directors has approved a 25-percent increase in the quarterly dividend on shares of the company's common stock to $0.60 per share, or $2.40 per share on an annualized basis, from $0.48 per share, or $1.92 per share on an annualized basis.  While this increase represents a higher payout target than the board previously established, the board reaffirmed a target payout ratio of 45 percent to 50 percent over the long term.  The first quarterly installment of the new dividend is payable April 15, 2012, to shareholders of record on March 26, 2012.

"We are extremely pleased with our 2011 financial results," said Debra L. Reed, chief executive officer of Sempra Energy.  "All of our businesses continue to perform well.  We exceeded our financial objectives for the year and, earlier today, we announced a significant increase in our dividend to shareholders.  We also have restructured our organization to enhance the integration of our assets."

On Jan. 1, as announced previously, Sempra Energy consolidated Sempra Generation, Sempra Pipelines & Storage and Sempra LNG into two new operating units:  Sempra International and Sempra U.S. Gas & Power.  Beginning in the first quarter 2012 and going forward, Sempra Energy will report earnings from its four principal operating units:  San Diego Gas & Electric (SDG&E), Southern California Gas Co. (SoCalGas), Sempra International and Sempra U.S. Gas & Power.

SUBSIDIARY OPERATING RESULTS

San Diego Gas & Electric

Earnings for SDG&E increased to $431 million in 2011 from $369 million in 2010.   SDG&E's fourth-quarter 2011 earnings were $158 million, up from $105 million in 2010, primarily due to favorable resolution of regulatory matters, earnings from construction projects in progress and higher authorized margin.  The higher authorized margin in the fourth quarter reflected the transfer of the El Dorado Energy natural gas-fired power plant to SDG&E from Sempra Generation in October 2011.  

Southern California Gas Co.

SoCalGas earned $287 million in 2011, compared with $286 million in 2010.  In the fourth quarter 2011, SoCalGas earned $79 million, compared with $74 million in the fourth quarter 2010.    

Sempra Generation

Sempra Generation's 2011 earnings were $137 million, up from $103 million in 2010.  Sempra Generation recorded a loss of $6 million in the fourth quarter 2011, compared with earnings of $43 million in the fourth quarter 2010, due primarily to the expiration of the 10-year California Department of Water Resources power-supply contract in September 2011.

In December 2011, the California Public Utilities Commission approved a 25-year contract for Sempra Generation to sell 150 megawatts (MW) of renewable power from its Copper Mountain Solar 2 project in Nevada to Pacific Gas and Electric.  Construction has begun on the 1,100-acre solar project and the first 92 MW of solar panels are expected to be installed by the end of January 2013.

Last month, Sempra U.S. Gas & Power announced an expansion of its strategic relationship with BP Wind Energy to develop wind farms in Pennsylvania and Kansas representing a combined investment by both companies of more than $1 billion.  The two wind farms are expected to be completed by the end of 2012 and have a combined total output of 560 MW.

Sempra Pipelines & Storage

Earnings for Sempra Pipelines & Storage increased to $527 million in 2011 from $159 million in 2010.   Sempra Pipelines & Storage recorded a $277 million gain in the second quarter 2011 from the South American utility acquisitions.  Fourth-quarter earnings for Sempra Pipelines & Storage were $70 million, up from $39 million in 2010.   The higher fourth-quarter earnings were due primarily to additional earnings from Sempra Pipelines & Storage's acquisition of the controlling interest in the South American utilities in April 2011.

Sempra LNG

In 2011, Sempra LNG earnings increased to $99 million from $68 million in 2010.  In 2011, Sempra LNG benefited from marketing activities and additional revenues from contracted cargoes that were not delivered.

In the fourth quarter 2011, Sempra LNG's earnings rose to $24 million from $18 million in the prior-year's fourth quarter.  

2012 Guidance

Effective Jan. 1, Sempra Energy adopted the deferral accounting method for the company's solar-generation projects.  Previously, Sempra Energy employed flow-through accounting for its solar projects, recognizing the tax benefits in the year each project was placed into service.  Now, the tax benefits will be recognized over the life of the projects.  This change in accounting will have no impact on the economics of the projects and will result in a more even earnings profile.  

Reflecting the impact of this accounting change, Sempra Energy today announced a new 2012 earnings-per-share guidance range of $4.00 to $4.30.

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 passcode 3475513.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2011 revenues of $10 billion.  The Sempra Energy companies' 17,500 employees serve more than 31 million consumers worldwide.

Non-GAAP Financial Measures

Unless otherwise indicated, earnings discussions in this press release refer to earnings that are calculated under generally accepted accounting principles (GAAP) used in the U.S.  The 2011 and 2010 full-year adjusted earnings and earnings per share are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the company's year-end financial tables.  

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.  These statements can be identified by words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "would," "could," "should," "potential," "target," "depends," or similar expressions, or discussions of guidance, strategies, plans or intentions. These forward-looking statements represent our estimates and assumptions only as of the date of this news release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. 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, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of our investments; inflation, interest and exchange rates; the impact of benchmark interest rates, generally the U.S. Treasury bond and Moody's A-rated utility bond yields, on the cost of capital for SDG&E and SoCalGas; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent in nuclear power generation and radioactive materials storage, including catastrophic release of such materials; wars, terrorist attacks and cyber security threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the status of deregulation of retail natural gas  and electricity delivery; the timing and success of business development efforts and construction, maintenance and capital projects; the inability or determination not to enter into long-term supply and sales agreements or long-term capacity agreements; 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 reports that Sempra Energy has filed with the Securities and Exchange Commission (SEC).  These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.

Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas) and Sempra International and Sempra U.S. Gas & Power are not regulated by the California Public Utilities Commission.  

Note: Formerly known as entities Sempra Generation, Sempra LNG and Sempra Pipelines & Storage have now been realigned under Sempra International and Sempra U.S. Gas & Power.

SEMPRA ENERGY

Table A









CONSOLIDATED STATEMENTS OF OPERATIONS








Three months ended


Years ended


December 31,


December 31,

(Dollars in millions, except per share amounts)

2011


2010


2011


2010


(unaudited)





REVENUES








Utilities

$   2,389


$   1,869


$   8,322


$   7,019

Energy-related businesses

215


476


1,714


1,984

   Total revenues

2,604


2,345


10,036


9,003

EXPENSES AND OTHER INCOME








Utilities:








   Cost of natural gas

(499)


(523)


(1,866)


(2,012)

   Cost of electric fuel and purchased power

(421)


(157)


(1,397)


(637)

Energy-related businesses:








   Cost of natural gas, electric fuel and purchased power

(52)


(245)


(746)


(1,046)

   Other cost of sales

(14)


(21)


(137)


(88)

Litigation expense

(7)


15


(37)


(169)

Other operation and maintenance

(815)


(717)


(2,788)


(2,499)

Depreciation and amortization

(248)


(224)


(978)


(867)

Franchise fees and other taxes

(84)


(84)


(343)


(327)

Equity earnings (losses), before income tax:








   RBS Sempra Commodities LLP

-


(24)


(24)


(314)

   Other

13


(2)


33


22

Remeasurement of equity method investments

-


-


277


-

Other income, net

44


58


130


140

Interest income

5


3


26


16

Interest expense

(121)


(113)


(465)


(436)

Income before income taxes and equity earnings of certain








   unconsolidated subsidiaries

405


311


1,721


786

Income tax expense

(97)


(17)


(366)


(102)

Equity earnings, net of income tax

7


7


52


49

Net income

315


301


1,407


733

(Earnings) losses attributable to noncontrolling interests

(21)


(18)


(42)


16

Preferred dividends of subsidiaries

(2)


(3)


(8)


(10)

Earnings

$      292


$      280


$   1,357


$      739









Basic earnings per common share

$     1.22


$     1.17


$     5.66


$     3.02

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

239,803


239,465


239,720


244,736









Diluted earnings per common share

$     1.21


$     1.15


$     5.62


$     2.98

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

241,756


242,519


241,523


247,942

Dividends declared per share of common stock

$     0.48


$     0.39


$     1.92


$     1.56



SEMPRA ENERGY

Table A (Continued)









RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED

EARNINGS AND 2011 EARNINGS PER SHARE GUIDANCE EXCLUDING GAIN FROM

REMEASUREMENT OF EQUITY METHOD INVESTMENTS (Unaudited)









Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share and earnings per share guidance in 2011 excluding a $277 million gain from the remeasurement of equity method investments in Chilquinta Energia and Luz del Sur in the second quarter of 2011 are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). Adjusted Earnings and Adjusted Earnings Per Share in 2010 exclude a $139 million write-down of our investment in RBS Sempra Commodities in the third quarter and a $96 million charge for a litigation settlement in the first quarter. Statistics using these amounts, including percentage changes from period to period, also result in non-GAAP measures. Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of Sempra Energy's business operations from 2011 to 2010 and to future periods. Accordingly, 2011 guidance of $4 to $4.30 per diluted share excludes the second quarter gain of $277 million, or $1.15 per diluted share, based on shares outstanding through December 31, 2011. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.










Three months ended December 31,


Years ended December 31,

(Dollars in millions, except per share amounts)

2011


2010


2011


2010

Sempra Energy GAAP Earnings

$      292


$      280


$   1,357


$      739

Less: Remeasurement Gain in 2011

-


-


(277)


-

Add: Write-down of Joint Venture Investment in 2010

-


-


-


139

Add: Litigation Settlement Charge in 2010

-


-


-


96

Sempra Energy Adjusted Earnings

$      292


$      280


$   1,080


$      974









Diluted earnings per common share:








Sempra Energy GAAP Earnings

$     1.21

(1)

$     1.15


$     5.62

(1)

$     2.98

Sempra Energy Adjusted Earnings

$     1.21

(2)

$     1.15


$     4.47

(2)

$     3.93

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

241,756


242,519


241,523


247,942









(1) Percentage increases from fourth quarter and year-to-date 2010 earnings per share were 5% and 89%, respectively.

(2) Percentage increases from fourth quarter and year-to-date 2010 earnings per share were 5% and 14%, respectively.



SEMPRA ENERGY

Table B








CONSOLIDATED BALANCE SHEETS











December 31,


December 31,

(Dollars in millions)

2011


2010








Assets


Current assets:





Cash and cash equivalents

$             252


$             912


Restricted cash

24


131


Accounts receivable, net

1,345


1,032


Due from unconsolidated affiliates

-


34


Income taxes receivable

-


248


Deferred income taxes

-


75


Inventories

346


258


Regulatory balancing accounts – undercollected

38


-


Regulatory assets

89


90


Fixed-price contracts and other derivatives

85


81


Settlements receivable related to wildfire litigation

10


300


Other

143


192




Total current assets

2,332


3,353








Investments and other assets:





Restricted cash

22


27


Regulatory assets arising from pension and other postretirement






benefit obligations

1,126


869


Regulatory assets arising from wildfire litigation costs

594


364


Other regulatory assets

1,060


934


Nuclear decommissioning trusts

804


769


Investment in RBS Sempra Commodities LLP

126


787


Other investments

1,545


2,164


Goodwill

1,036


87


Other intangible assets

448


453


Sundry

691


600




Total investments and other assets

7,452


7,054

Property, plant and equipment, net

23,572


19,876

Total assets

$        33,356


$        30,283








Liabilities and Equity




Current liabilities:





Short-term debt

$             449


$             158


Accounts payable

1,107


864


Due to unconsolidated affiliates

-


36


Income taxes payable

16


-


Deferred income taxes

173


-


Dividends and interest payable

219


188


Accrued compensation and benefits

323


311


Regulatory balancing accounts – overcollected

105


241


Current portion of long-term debt

336


349


Fixed-price contracts and other derivatives

92


106


Customer deposits

142


129


Reserve for wildfire litigation

586


639


Other

615


765




Total current liabilities

4,163


3,786

Long-term debt

10,078


8,980








Deferred credits and other liabilities:





Customer advances for construction

142


154


Pension and other postretirement benefit obligations, net of plan assets

1,423


1,105


Deferred income taxes

1,554


1,561


Deferred investment tax credits

49


50


Regulatory liabilities arising from removal obligations

2,551


2,630


Asset retirement obligations

1,905


1,449


Other regulatory liabilities

87


138


Fixed-price contracts and other derivatives

301


290


Deferred credits and other

783


823




Total deferred credits and other liabilities

8,795


8,200

Contingently redeemable preferred stock of subsidiary

79


79

Equity:





Total Sempra Energy shareholders' equity

9,838


9,027


Preferred stock of subsidiaries

20


100


Other noncontrolling interests

383


111




Total equity

10,241


9,238

Total liabilities and equity

$        33,356


$        30,283



SEMPRA ENERGY

Table C






CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS








Years ended
December 31,

(Dollars in millions)

2011


2010




Cash Flows from Operating Activities




Net income

$ 1,407


$   733

Adjustments to reconcile net income to net cash  




 provided by operating activities:





Depreciation and amortization

978


867


Deferred income taxes and investment tax credits

(24)


48


Equity (earnings) losses

(61)


243


Remeasurement of equity method investments

(277)


-


Fixed-price contracts and other derivatives

2


13


Other

(15)


(55)

Net change in other working capital components

(225)


58

Distributions from RBS Sempra Commodities LLP

53


198

Changes in other assets

34


54

Changes in other liabilities

(5)


(5)


Net cash provided by operating activities

1,867


2,154






Cash Flows from Investing Activities




Expenditures for property, plant and equipment

(2,844)


(2,062)

Proceeds from sale of assets

2


303

Expenditures for investments and acquisition of businesses,




 net of cash acquired

(941)


(611)

Distributions from RBS Sempra Commodities LLP

570


849

Distributions from other investments

64


371

Purchases of nuclear decommissioning and other trust assets

(755)


(371)

Proceeds from sales by nuclear decommissioning and other trusts

753


372

Decrease in restricted cash

653


195

Increase in restricted cash

(541)


(318)

Other

(31)


(11)


Net cash used in investing activities

(3,070)


(1,283)






Cash Flows from Financing Activities




Common dividends paid

(440)


(364)

Redemption of subsidiary preferred stock

(80)


-

Preferred dividends paid by subsidiaries

(8)


(10)

Issuances of common stock

28


40

Repurchases of common stock

(18)


(502)

Issuances of debt (maturities greater than 90 days)

2,098


1,125

Payments on debt (maturities greater than 90 days)

(482)


(905)

(Decrease) increase in short-term debt, net

(498)


568

Purchase of noncontrolling interests

(43)


-

Other

(23)


(21)


Net cash provided by (used in) financing activities

534


(69)






Effect of exchange rate changes on cash and cash equivalents

9


-






(Decrease) increase in cash and cash equivalents

(660)


802

Cash and cash equivalents, January 1

912


110

Cash and cash equivalents, December 31

$    252


$   912



SEMPRA ENERGY

Table D










BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS












Three months ended


Years ended



December 31,


December 31,

(Dollars in millions)

2011


2010


2011


2010



(unaudited)





Earnings (Losses)








San Diego Gas & Electric

$    158


$ 105


$    431


$    369

Southern California Gas

79


74


287


286

Sempra Generation

(6)


43


137


103

Sempra Pipelines & Storage

70


39


527


159

Sempra LNG

24


18


99


68

Parent & Other

(33)


1


(124)


(246)

Earnings

$    292


$ 280


$ 1,357


$    739












Three months ended


Years ended



December 31,


December 31,

(Dollars in millions)

2011


2010


2011


2010



(unaudited)





Capital Expenditures and Investments








San Diego Gas & Electric

$    669


$ 388


$ 1,831


$ 1,210

Southern California Gas

184


166


683


503

Sempra Generation

344


314


512


346

Sempra Pipelines & Storage

60


55


947


590

Sempra LNG

2


9


11


18

Parent & Other

4


2


6


6

Eliminations(1)

(205)


-


(205)


-

Consolidated Capital Expenditures and Investments

$ 1,058


$ 934


$ 3,785


$ 2,673










(1)  Amount represents elimination of intercompany sale of El Dorado power plant in October 2011.



SEMPRA ENERGY

Table E










OTHER OPERATING STATISTICS (Unaudited)








Three months ended


Years ended



December 31,


December 31,

UTILITIES

2011


2010


2011


2010









Sempra Utilities – SDG&E and SoCalGas








Gas Sales (bcf)(1)

118


111


403


392

Transportation (bcf)(1)

155


176


620


641

Total Deliveries (bcf)(1)

273


287


1,023


1,033

Total Gas Customers (Thousands)





6,655


6,635










Electric Sales (Millions of kWhs)(1)

4,026


4,170


16,247


16,281

Direct Access (Millions of kWhs)

838


837


3,265


3,202

Total Deliveries (Millions of kWhs)(1)

4,864


5,007


19,512


19,483

Total Electric Customers (Thousands)





1,394


1,386










Sempra Pipelines & Storage – Utilities (2)








Natural Gas Sales (bcf)









Argentina

88


80


355


331


Mexico

6


5


22


21


Mobile Gas

11


10


40


37

Natural Gas Customers (Thousands)









Argentina





1,810


1,756


Mexico





90


89


Mobile Gas





89


91

Electric Sales (Millions of kWhs)









Peru

1,596


1,513


6,309


5,958


Chile

658


613


2,520


2,349

Electric Customers (Thousands)









Peru





926


890


Chile





609


593










(1) Includes intercompany sales

(2) Represents 100% of the distribution operations of the subsidiary, although the subsidiary in Argentina is not consolidated within Sempra Energy and the related investments are accounted for under the equity method.  The subsidiaries in Peru and Chile were also accounted for under the equity method until April 6, 2011, when they became consolidated entities upon our acquisition of additional ownership interests.










ENERGY-RELATED BUSINESSES

















Sempra Generation








Power Sold (Millions of kWhs)

2,165


5,614


13,814


20,886



SEMPRA ENERGY




Table F (Unaudited)




















Statement of Operations Data by Business Unit















Three Months Ended December 31, 2011

















(Dollars in millions)


SDG&E


SoCalGas


Generation


Pipelines & Storage


LNG


Consolidating Adjustments, Parent & Other



Total

















Revenues


$  968


$   1,040


$          90


$        463


$ 162


$                     (119)



$ 2,604

















Cost of Sales and Other Expenses


(589)


(824)


(108)


(348)


(108)


92



(1,885)

















Litigation (Expense) Adjustment


(4)


(2)


-


(1)


(2)


2



(7)

















Depreciation & Amortization


(106)


(85)


(15)


(26)


(13)


(3)



(248)

















Equity Earnings Recorded Before Income Tax


-


-


-


13


-


-



13

















Other Income (Expense), Net


24


4


(1)


1


4


12



44

















Income (Loss) Before Interest & Tax (1)


293


133


(34)


102


43


(16)



521

















Net Interest Expense (2)


(39)


(17)


(1)


(14)


(9)


(38)



(118)

















Income Tax (Expense) Benefit


(83)


(37)


29


(18)


(10)


22



(97)

















Equity Earnings Recorded Net of Income Tax


-


-


-


7


-


-



7

















Earnings Attributable to Noncontrolling Interests


(13)


-


-


(7)


-


(1)



(21)

















Earnings (Losses)


$  158


$        79


$          (6)


$          70


$   24


$                       (33)



$    292
















Three Months Ended December 31, 2010






























(Dollars in millions)


SDG&E


SoCalGas


Generation


Pipelines & Storage


LNG


Consolidating Adjustments, Parent & Other



Total

















Revenues


$  804


$   1,030


$        293


$          88


$ 157


$                       (27)



$ 2,345

















Cost of Sales and Other Expenses


(525)


(832)


(217)


(59)


(110)


(4)



(1,747)

















Litigation (Expense) Adjustment


(6)


11


(2)


-


-


12



15

















Depreciation & Amortization


(98)


(79)


(18)


(12)


(13)


(4)



(224)

















Equity (Losses) Earnings Recorded Before Income Tax


-


-


(10)


11


-


(27)



(26)

















Other Income (Expense), Net


28


4


(1)


2


1


24



58

















Income (Loss) Before Interest & Tax (1)


203


134


45


30


35


(26)



421

















Net Interest (Expense) Income (2)


(38)


(16)


3


(8)


(11)


(43)



(113)

















Income Tax (Expense) Benefit


(42)


(44)


(5)


10


(6)


70



(17)

















Equity Earnings Recorded Net of Income Tax


-


-


-


7


-


-



7

















Earnings Attributable to Noncontrolling Interests


(18)


-


-


-


-


-



(18)

















Earnings


$  105


$        74


$          43


$          39


$   18


$                           1



$    280

















(1) Management believes "Income (Loss) before Interest & Tax" 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 tax, 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)




















Statement of Operations Data by Business Unit















Year Ended December 31, 2011

















(Dollars in millions)


SDG&E


SoCalGas


Generation


Pipelines & Storage


LNG


Consolidating Adjustments, Parent & Other



Total

















Revenues


$ 3,373


$   3,816


$        886


$     1,443


$ 714


$                     (196)



$ 10,036

















Cost of Sales and Other Expenses


(2,177)


(2,994)


(667)


(1,076)


(479)


116



(7,277)

















Litigation (Expense) Adjustment


(19)


(5)


(4)


(2)


(8)


1



(37)

















Depreciation & Amortization


(422)


(331)


(70)


(92)


(51)


(12)



(978)

















Equity (Losses) Earnings Recorded Before Income Tax


-


-


(6)


43


-


(28)



9

















Other Income, Net


79


13


-


297

(1)

3


15



407

















Income (Loss) Before Interest & Tax (2)


834


499


139


613


179


(104)



2,160

















Net Interest Expense (3)


(147)


(69)


(5)


(46)


(38)


(142)



(447)

















Income Tax (Expense) Benefit


(237)


(143)


3


(70)


(42)


123



(366)

















Equity Earnings Recorded Net of Income Tax


-


-


-


52


-


-



52

















Earnings Attributable to Noncontrolling Interests


(19)


-


-


(22)


-


(1)



(42)

















Earnings (Losses)


$    431


$      287


$        137


$        527


$   99


$                     (124)



$   1,357
















Year Ended December 31, 2010






























(Dollars in millions)


SDG&E


SoCalGas


Generation


Pipelines & Storage


LNG


Consolidating Adjustments, Parent & Other



Total

















Revenues


$ 3,049


$   3,822


$     1,172


$        350


$ 711


$                     (101)



$   9,003

















Cost of Sales and Other Expenses


(1,993)


(3,007)


(866)


(246)


(519)


22



(6,609)

















Litigation (Expense) Adjustment


(18)


10


(145)


(1)


(4)


(11)



(169)

















Depreciation & Amortization


(381)


(309)


(65)


(44)


(51)


(17)



(867)

















Equity (Losses) Earnings Recorded Before Income Tax


-


-


(12)


43


-


(323)

(4)


(292)

















Other Income, Net


10


12


9


55


3


51



140

















Income (Loss) Before Interest & Tax (2)


667


528


93


157


140


(379)



1,206

















Net Interest (Expense) Income (3)


(141)


(66)


3


(21)


(47)


(158)



(430)

















Income Tax (Expense) Benefit


(173)


(176)


7


(26)


(25)


291



(102)

















Equity Earnings Recorded Net of Income Tax


-


-


-


49


-


-



49

















Losses Attributable to Noncontrolling Interests


16


-


-


-


-


-



16

















Earnings (Losses)


$    369


$      286


$        103


$        159


$   68


$                     (246)



$      739

















(1) Includes gain of $277 million related to remeasurement of equity method investments.

















(2) Management believes "Income (Loss) before Interest & Tax" 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 tax, neither of which is directly relevant to the efficiency of those operations.

















(3) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.

















(4) Includes $305 million write-down of our investment in RBS Sempra Commodities.



(Logo:  http://photos.prnewswire.com/prnh/20110108/SEMPRAENERGYLOGO)

SOURCE Sempra Energy

For further information: Media, Doug Kline of Sempra Energy, 1-877-340-8875, www.sempra.com, or Financial, Scott Tomayko, or Victor Vilaplana, both of Sempra Energy, 1-877-736-7727, investor@sempra.com


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