Sempra Energy Reports Solid Third-Quarter 2013 Earnings

Nov 5, 2013

SAN DIEGO, Nov. 5, 2013 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported third-quarter 2013 earnings of $296 million, or $1.19 per diluted share, up from $268 million, or $1.09 per diluted share in the third quarter 2012.

Sempra Energy's third-quarter 2012 earnings included a charge of $60 million, or $0.24 per diluted share, related to a write-down on Sempra U.S. Gas & Power's minority stake in the Rockies Express Pipeline.  On an adjusted basis, third-quarter 2012 earnings were $328 million, or $1.33 per diluted share.

For the first nine months of 2013, Sempra Energy's earnings were $719 million, or $2.89 per diluted share, compared with $566 million, or $2.31 per diluted share, in the first nine months of 2012.

Nine-month 2013 earnings included $77 million, or $0.31 per diluted share, in earnings recorded in the second quarter from the retroactive impact of the final decision in the California Public Utilities Commission (CPUC) General Rate Case for San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas).  Nine-month 2013 earnings also reflected the impact of a $119 million, or $0.48-per-diluted-share, charge taken in the second quarter related to the closure of the San Onofre Nuclear Generating Station (SONGS). Nine-month 2012 earnings included $239 million, or $0.98 per diluted share, in charges on the write-down related to the Rockies Express Pipeline.  

For comparison with 2013 earnings-per-share guidance of $4.30 to $4.60, Sempra Energy's nine-month earnings -- excluding the charge related to SONGS -- were $838 million, or $3.37 per diluted share, in 2013.

"During the quarter, we continued to make progress on several of our key infrastructure projects and also entered into new joint ventures consistent with our strategy for our growing renewable energy business," said Debra L. Reed, chairman and CEO of Sempra Energy. 

CALIFORNIA UTILITIES
San Diego Gas & Electric
Earnings for SDG&E in the third quarter 2013 were $129 million, compared with $174 million in the third quarter 2012.  In last year's third quarter, SDG&E had a $33 million tax benefit from adopting a tax treatment change for deducting certain repairs.  In the third quarter 2013, higher CPUC base operating margin and higher electric transmission margin were largely offset by the lower authorized rate of return for cost of capital and the loss of revenue from SONGS..

For the first nine months of 2013, SDG&E's earnings were $285 million, compared with $374 million in the first nine months of 2012, primarily due to the impact of the $119 million charge related to SONGS in 2013.

Southern California Gas Co.
Third-quarter earnings for SoCalGas increased to $102 million in 2013 from $71 million in 2012, due primarily to higher CPUC base operating margin and a reduction in the income-tax rate.

For the nine-month period, SoCalGas' earnings rose to $266 million in 2013 from $190 million in 2012.

 

SEMPRA INTERNATIONAL
Sempra South American Utilities
In the third quarter 2013, Sempra South American Utilities had earnings of $39 million, compared with $40 million in last year's third quarter.

For the first nine months of 2013, earnings for Sempra South American Utilities were $110 million -- including a loss on the previously announced sale of the company's Argentine utility interests -- compared with earnings of $118 million in the same period last year.

 

Sempra Mexico
Sempra Mexico recorded third-quarter earnings of $39 million in 2013, compared with $42 million in 2012.

For the first nine months of 2013, Sempra Mexico had earnings of $96 million, compared with $122 million in the same period in 2012.  Earnings for the most recent quarter and first nine months of 2013 were lower, primarily due to Sempra Energy's reduced ownership in IEnova, the company's Mexican operating subsidiary.  In March, Sempra Energy successfully completed an initial public offering for nearly 19 percent of IEnova.

Last month, Mexico's state-owned oil company, Pemex, announced that its joint venture with IEnova would participate in the development and operation of the 275-mile northern segment of the Los Ramones II natural gas pipeline in Nuevo Leon, Mexico.  Terms of the joint venture's participation still are being finalized, but the northern segment is expected to be completed in 2015 at a cost of approximately $1 billion.  IEnova's joint venture with Pemex previously was awarded a contract to develop and operate the 70-mile Los Ramones I natural gas pipeline, which is expected to be completed in the second half of 2014.

SEMPRA U.S. GAS & POWER
Sempra Renewables
Third-quarter earnings for Sempra Renewables increased to $37 million in 2013 from $13 million in 2012, due primarily to $24 million in gains associated with the contribution of assets to 50-50 solar joint ventures with Consolidated Edison Development.  The formation of the joint ventures is consistent with Sempra U.S. Gas & Power's strategy to project-finance and own 50 percent of its renewable energy facilities.

During the first nine months of 2013, earnings for Sempra Renewables were $56 million compared with $47 million in the same period last year.

 

Sempra Natural Gas
Sempra Natural Gas posted a third-quarter loss of $7 million in 2013, compared with a loss of $68 million in 2012.  Third-quarter 2012 results reflected a $60 million charge related to the Rockies Express Pipeline.

For the first nine months of 2013, Sempra Natural Gas had earnings of $55 million, compared with a loss of $260 million in 2012, which included $239 million in charges related to the Rockies Express Pipeline.

EARNINGS GUIDANCE 
Today, Sempra Energy affirmed that it still expects annual earnings to be within the company's existing earnings-per-share guidance range for 2013 of $4.30 to $4.60.  The company said that pending Mexican tax reform legislation is expected to reduce 2013 earnings per share by approximately $0.05.  Without the reform, Sempra Energy anticipated full-year results to be near the mid-point of its 2013 earnings guidance range.  The company also is working actively to complete a joint venture for the Energia Sierra Juarez wind project.  If the joint venture is not formed as planned this year, approximately $0.05 per share of earnings would be deferred from 2013.

As stated previously, the current guidance range for 2013 includes the $0.31-per-share benefit for the retroactive impacts from the General Rate Case for SDG&E and SoCalGas, but excludes the $0.48-per-share charge related to the announced closure of SONGS.

 

NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures for Sempra Energy include:  third-quarter 2012 adjusted earnings; nine-month 2013 earnings, excluding the charge related to SONGS; and 2013 earnings-per-share guidance.  Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the third-quarter financial tables.

 

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 website 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 8281617.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2012 revenues of approximately $10 billion.  The Sempra Energy companies' nearly 17,000 employees serve more than 31 million consumers worldwide.

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," "plans," "estimates," "forecasts," "contemplates," "intends," "depends," "should," "could," "would," "will," "may," "would," "could," "should," "potential," "target," "pursue," "goals," "outlook," "project," "maintain," "depends," "pursue" or similar expressions, or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions.  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 and the timing of actions by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, Atomic Safety and Licensing Board, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company operates; capital market conditions, including the availability of credit and the liquidity of investments; the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of the granting of, permits, licenses, certificates and other authorizations; inflation, interest and exchange rates; the impact of benchmark interest rates, generally Moody's A-rated utility bond yields, on the California utilities' cost of capital; 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, equipment failure and the decommissioning of SONGS; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent with nuclear power facilities and radioactive materials storage, including the catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the nuclear facility due to an extended outage and facility closure, and increased regulatory oversight; risks posed by decisions and actions of third parties who control the operations of investments in which the company does not have a controlling interest; wars, terrorist attacks and cybersecurity threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of SDG&E's electric transmission and distribution system due to increased power supply from renewable energy sources; the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through our electric transmission and distribution system; the inability or determination not to enter into long-term supply and sales agreements or long-term firm 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.  The company cautions not to unduly rely on these forward-looking statements. These risks and uncertainties are further discussed in the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q that Sempra Energy has filed with the Securities and Exchange Commission. 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.

These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC and Sempra U.S. Gas & Power, LLC are not regulated by the California Public Utilities Commission. Sempra International's underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power's underlying entities include Sempra Renewables and Sempra Natural Gas.

SEMPRA ENERGY

Table A

 
 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

             
 

Three months ended

Nine months ended

 

  September 30,

 September 30,

(Dollars in millions, except per share amounts)

2013

 

2012

2013

 

2012

 

(unaudited)

REVENUES

           

Utilities

$  2,223

 

$  2,170

$  6,889

 

$  6,099

Energy-related businesses

328

 

337

963

 

880

    Total revenues

2,551

 

2,507

7,852

 

6,979

EXPENSES AND OTHER INCOME

           

Utilities:

           

    Cost of natural gas

(261)

 

(212)

(1,182)

 

(864)

    Cost of electric fuel and purchased power

(537)

 

(515)

(1,461)

 

(1,252)

Energy-related businesses:

           

    Cost of natural gas, electric fuel and purchased power

(120)

 

(136)

(325)

 

(346)

    Other cost of sales

(47)

 

(43)

(144)

 

(117)

Operation and maintenance

(698)

 

(732)

(2,162)

 

(2,130)

Depreciation and amortization

(286)

 

(280)

(828)

 

(803)

Franchise fees and other taxes

(96)

 

(89)

(283)

 

(264)

Loss from plant closure

-

 

-

(200)

 

-

Gain on sale of assets

39

 

-

113

 

7

Equity earnings (losses), before income tax

3

 

(94)

21

 

(375)

Other income, net

16

 

44

79

 

137

Interest income

5

 

5

15

 

14

Interest expense

(137)

 

(126)

(413)

 

(352)

Income before income taxes and equity earnings 

           

    of certain unconsolidated subsidiaries

432

 

329

1,082

 

634

Income tax expense

(117)

 

(49)

(327)

 

(48)

Equity earnings, net of income tax

8

 

10

13

 

29

Net income

323

 

290

768

 

615

Earnings attributable to noncontrolling interests

(22)

 

(20)

(41)

 

(44)

Call premium on preferred stock of subsidiary

(3)

 

-

(3)

 

-

Preferred dividends of subsidiaries

(2)

 

(2)

(5)

 

(5)

Earnings

$     296

 

$     268

$     719

 

$     566

             

Basic earnings per common share

$    1.21

 

$    1.11

$    2.95

 

$    2.35

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

244,140

 

241,689

243,682

 

241,133

             

Diluted earnings per common share

$    1.19

 

$    1.09

$    2.89

 

$    2.31

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

249,259

 

245,802

248,723

 

245,013

             

Dividends declared per share of common stock

$    0.63

 

$    0.60

$    1.89

 

$    1.80

 

 

SEMPRA ENERGY

Table A (Continued)

 

Sempra Energy Consolidated

 

RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS EXCLUDING LOSS FROM PLANT CLOSURE AND

RETROACTIVE IMPACTS OF 2012 GENERAL RATE CASE (GRC) IN 2013, AND IMPAIRMENT CHARGES IN 2012 (Unaudited)

 

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share excluding 1) in the nine months ended September 30, 2013, a $119 million loss from plant closure resulting from the early retirement of the San Onofre Nuclear Generating Station (SONGS) and $77 million retroactive impact of the 2012 GRC for the full-year 2012 and 2) in the third quarter and the first nine months of 2012, impairment charges of $60 million and $239 million, respectively, on our investment in Rockies Express Pipeline LLC are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). 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 2013 to 2012 and to future periods, and also as a base for projection of future compounded annual growth rate. Our 2013 guidance of $4.30 to $4.60 per diluted share also excludes the $119 million loss from plant closure, or $0.48 per diluted share based on forecasted weighted-average diluted shares outstanding for the year 2013. Management believes that excluding the impact of the loss from plant closure from current year guidance provides a more meaningful measure of Sempra Energy's expected financial performance in 2013 in comparison to previously issued guidance. 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

 

Nine months ended

 

September 30,

 

September 30,

(Dollars in millions, except per share amounts)

2013

 

2012

 

2013

 

2012

Sempra Energy GAAP Earnings

$      296

 

$      268

 

$      719

 

$      566

Add: Impairment charges in 2012

-

 

60

 

-

 

239

Add: Loss from plant closure

-

 

-

 

119

 

-

Less: Retroactive impact of 2012 GRC for full-year 2012

-

 

-

 

(77)

 

-

Sempra Energy Adjusted Earnings

$      296

 

$      328

 

$      761

 

$      805

               

Diluted earnings per common share:

             

  Sempra Energy GAAP Earnings

$     1.19

 

$     1.09

 

$     2.89

 

$     2.31

  Sempra Energy Adjusted Earnings

$     1.19

 

$     1.33

 

$     3.06

 

$     3.29

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

249,259

 

245,802

 

248,723

 

245,013

 

 

San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas)

 

RECONCILIATION OF SDG&E AND SOCALGAS GAAP EARNINGS TO ADJUSTED EARNINGS EXCLUDING LOSS FROM PLANT CLOSURE AT SDG&E AND

RETROACTIVE IMPACTS OF 2012 GRC AT BOTH SDG&E AND SOCALGAS IN 2013 (Unaudited)

 

SDG&E Adjusted Earnings excluding a $119 million loss from plant closure resulting from the early retirement of SONGS and $52 million retroactive impact of the 2012 GRC for the full-year 2012 in the nine months ended September 30, 2013 are non-GAAP financial measures. SoCalGas Adjusted Earnings excluding $25 million retroactive impact of the 2012 GRC for the full-year 2012 in the nine months ended September 30, 2013 are non-GAAP financial 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 SDG&E's and SoCalGas' business operations from 2013 to 2012 and to future periods. 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 SDG&E Earnings and SoCalGas Earnings, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

               
 

Three months ended

 

Nine months ended 

 

September 30,

 

September 30,

(Dollars in millions)

2013

 

2012

 

2013

 

2012

SDG&E GAAP Earnings

$      129

 

$      174

 

$      285

 

$      374

Add: Loss from plant closure

-

 

-

 

119

 

-

Less: Retroactive impact of 2012 GRC for full-year 2012

-

 

-

 

(52)

 

-

SDG&E Adjusted Earnings

$      129

 

$      174

 

$      352

 

$      374

               

SoCalGas GAAP Earnings

$      102

 

$        71

 

$      266

 

$      190

Less: Retroactive impact of 2012 GRC for full-year 2012

-

 

-

 

(25)

 

-

SoCalGas Adjusted Earnings

$      102

 

$        71

 

$      241

 

$      190

 

 

 

SEMPRA ENERGY

Table B

             

CONDENSED CONSOLIDATED BALANCE SHEETS

             
       

September 30,

 

December 31,

(Dollars in millions)

2013

 

2012(1)

       

(unaudited)

   

Assets

     

Current assets:

     
 

Cash and cash equivalents

$          1,061

 

$           475

 

Restricted cash

28

 

46

 

Accounts receivable

1,176

 

1,299

 

Income taxes receivable

132

 

56

 

Deferred income taxes

119

 

148

 

Inventories

463

 

408

 

Regulatory balancing accounts – undercollected

346

 

395

 

Regulatory assets 

100

 

62

 

Fixed-price contracts and other derivatives

76

 

95

 

U.S. Treasury grants receivable

-

 

258

 

Asset held for sale, power plant

-

 

296

 

Other

211

 

157

     

Total current assets

3,712

 

3,695

             

Investments and other assets:

     
 

Restricted cash

21

 

22

 

Regulatory assets arising from pension and other postretirement 

     
 

    benefit obligations

1,173

 

1,151

 

Regulatory assets arising from wildfire litigation costs

339

 

364

 

Other regulatory assets

1,947

 

1,227

 

Nuclear decommissioning trusts

981

 

908

 

Investments

1,564

 

1,516

 

Goodwill 

1,045

 

1,111

 

Other intangible assets

428

 

436

 

Sundry

928

 

878

     

Total investments and other assets

8,426

 

7,613

Property, plant and equipment, net

24,763

 

25,191

Total assets

$        36,901

 

$       36,499

             

Liabilities and Equity

     

Current liabilities:

     
 

Short-term debt

$             522

 

$           546

 

Accounts payable

990

 

1,110

 

Dividends and interest payable

314

 

266

 

Accrued compensation and benefits

286

 

337

 

Regulatory balancing accounts – overcollected

82

 

141

 

Current portion of long-term debt

1,441

 

725

 

Fixed-price contracts and other derivatives

64

 

77

 

Customer deposits

155

 

143

 

Reserve for wildfire litigation

127

 

305

 

Other

549

 

608

     

Total current liabilities

4,530

 

4,258

Long-term debt

10,478

 

11,621

             

Deferred credits and other liabilities:

     
 

Customer advances for construction

145

 

144

 

Pension and other postretirement benefit obligations, net of plan assets

1,472

 

1,456

 

Deferred income taxes

2,543

 

2,100

 

Deferred investment tax credits

43

 

46

 

Regulatory liabilities arising from removal obligations

2,541

 

2,720

 

Asset retirement obligations

2,111

 

2,033

 

Fixed-price contracts and other derivatives

239

 

252

 

Deferred credits and other 

1,045

 

1,107

     

Total deferred credits and other liabilities

10,139

 

9,858

Contingently redeemable preferred stock of subsidiary

-

 

79

Equity:

     
 

Total Sempra Energy shareholders' equity

10,909

 

10,282

 

Preferred stock of subsidiary

20

 

20

 

Other noncontrolling interests

825

 

381

     

Total equity

11,754

 

10,683

Total liabilities and equity

$        36,901

 

$       36,499

             

(1)

Derived from audited financial statements.

 

SEMPRA ENERGY

Table C

           

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

           
     

Nine months ended
September 30,

(Dollars in millions)

 

2013

 

2012

     

(unaudited)

Cash Flows from Operating Activities

       

Net income

$

768

$

615

Adjustments to reconcile net income to net cash provided

       

  by operating activities:

       
 

Depreciation and amortization

 

828

 

803

 

Deferred income taxes and investment tax credits

 

327

 

(45)

 

Gain on sale of assets

 

(113)

 

(7)

 

Loss from plant closure

 

200

 

       ―

 

Equity (earnings) losses

 

(34)

 

346

 

Fixed-price contracts and other derivatives

 

(25)

 

1

 

Other

 

23

 

(1)

Net change in other working capital components

 

(454)

 

(373)

Changes in other assets

 

(203)

 

202

Changes in other liabilities

 

13

 

147

 

Net cash provided by operating activities

 

1,330

 

1,688

           

Cash Flows from Investing Activities

       

Expenditures for property, plant and equipment

 

(1,785)

 

(2,241)

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

 

(21)

 

(359)

Proceeds from sale of assets and investment

 

566

 

9

Proceeds from U.S. Treasury grants

 

238

 

       ―

Distributions from investments

 

141

 

43

Purchases of nuclear decommissioning and other trust assets

 

(514)

 

(534)

Proceeds from sales by nuclear decommissioning and other trusts

 

510

 

534

Decrease in restricted cash

 

285

 

89

Increase in restricted cash

 

(311)

 

(105)

Other 

 

(10)

 

(12)

 

Net cash used in investing activities

 

(901)

 

(2,576)

           

Cash Flows from Financing Activities

       

Common dividends paid

 

(452)

 

(405)

Preferred dividends paid by subsidiaries

 

(5)

 

(5)

Issuances of common stock

 

57

 

50

Repurchases of common stock

 

(45)

 

(16)

Issuances of debt (maturities greater than 90 days)

 

1,404

 

2,294

Payments on debt (maturities greater than 90 days)

 

(1,444)

 

(563)

Proceeds from sale of noncontrolling interests, net of $25 in offering costs

 

574

 

       ―

Increase (decrease) in short-term debt, net

 

81

 

(142)

Distributions to noncontrolling interests

 

(28)

 

(36)

Other 

 

15

 

(20)

 

Net cash provided by financing activities

 

157

 

1,157

           

Effect of exchange rate changes on cash and cash equivalents

 

       ―

 

9

           

Increase in cash and cash equivalents

 

586

 

278

Cash and cash equivalents, January 1

 

475

 

252

Cash and cash equivalents, September 30

$

1,061

$

530

 

SEMPRA ENERGY

Table D

 
 

SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS 

               
 

Three months ended 

 

Nine months ended 

 

September 30,

 

September 30,

(Dollars in millions)

2013

 

2012

 

2013

 

2012

 

    (unaudited)

Earnings (Losses) 

         

California Utilities:

             

  San Diego Gas & Electric

$129

 

$174

 

$285

 

$374

  Southern California Gas

102

 

71

 

266

 

190

Sempra International:

             

  Sempra South American Utilities

39

 

40

 

110

 

118

  Sempra Mexico

39

 

42

 

96

 

122

Sempra U.S. Gas & Power:

             

  Sempra Renewables

37

 

13

 

56

 

47

  Sempra Natural Gas

(7)

 

(68)

 

55

 

(260)

Parent and other

(43)

 

(4)

 

(149)

 

(25)

Earnings

$296

 

$268

 

$719

 

$566

               
 

 Three months ended  

 

 Nine months ended  

 

September 30,

 

September 30,

(Dollars in millions)

2013

 

2012

 

2013

 

2012

 

    (unaudited)

Capital Expenditures and Investments

             

California Utilities:

             

  San Diego Gas & Electric

$233

 

$269

 

$679

 

$998

  Southern California Gas

181

 

146

 

521

 

462

Sempra International:

             

  Sempra South American Utilities

54

 

58

 

120

 

117

  Sempra Mexico

119

 

4

 

280

 

13

Sempra U.S. Gas & Power:

             

  Sempra Renewables

69

 

267

 

135

 

861

  Sempra Natural Gas

14

 

32

 

69

 

144

Parent and other

1

 

4

 

2

 

5

Consolidated Capital Expenditures and Investments

$671

 

$780

 

$1,806

 

$2,600

 

 

 

SEMPRA ENERGY

Table E

 
 

OTHER OPERATING STATISTICS (Unaudited)

 
             
     

Three months ended September 30,

Nine months ended September 30,

UTILITIES

 

2013

 

2012

 

2013

 

2012

                 

California Utilities - SDG&E and SoCalGas

               

Gas Sales (bcf)(1)

 

62

 

61

 

276

 

278

Transportation (bcf)(1)

 

197

 

210

 

527

 

555

Total Deliveries (bcf)(1)

 

259

 

271

 

803

 

833

Total Gas Customers (Thousands)

         

6,699

 

6,672

                     

Electric Sales (Millions of kWhs)(1)

 

4,489

 

4,490

 

12,305

 

12,406

Direct Access (Millions of kWhs)

 

1,087

 

901

 

2,681

 

2,473

Total Deliveries (Millions of kWhs)(1)

 

5,576

 

5,391

 

14,986

 

14,879

Total Electric Customers (Thousands)

         

1,407

 

1,399

                     

Other Utilities

               

Natural Gas Sales (bcf)

               
 

Mexico

 

6

 

5

 

18

 

17

 

Mobile Gas

 

8

 

11

 

29

 

33

 

Willmut Gas(2)

 

-

 

-

 

2

 

1

Natural Gas Customers (Thousands) 

               
 

Mexico

         

97

 

92

 

Mobile Gas

         

87

 

88

 

Willmut Gas(2)

         

19

 

19

Electric Sales (Millions of kWhs)

               
 

Peru

 

1,733

 

1,637

 

5,221

 

4,996

 

Chile

 

677

 

632

 

2,127

 

2,015

Electric Customers (Thousands)

               
 

Peru

         

986

 

949

 

Chile

         

636

 

620

                     

ENERGY-RELATED BUSINESSES

               
                     

Sempra International

               

Power Sold (Millions of kWhs)

               
 

Sempra Mexico

 

1,122

 

1,139

 

2,902

 

3,111

                     

Sempra U.S. Gas & Power

               

Power Sold (Millions of kWhs)

               
 

Sempra Renewables(3)

461

 

241

 

1,842

 

767

 

Sempra Natural Gas(4)

 

1,140

 

2,002

 

3,067

 

5,401

                     

(1) Includes intercompany sales.

       

(2) Acquired in May 2012.

       

(3) Includes 50% of total power sold related to wind projects in which Sempra Energy has a 50% ownership. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method.

(4) Sempra Natural Gas sold one 625-megawatt (MW) block of its 1,250-MW Mesquite Power natural gas-fired power plant in February 2013.

 

 

 

SEMPRA ENERGY

Table F (Unaudited)

                                   

Statement of Operations Data by Segment

                         
                                   

Three Months Ended September 30, 2013

                         
                                   

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South American Utilities

 

Sempra Mexico

 

Sempra Renewables

 

Sempra Natural Gas

 

Consolidating Adjustments, Parent & Other

   

Total

                                   

Revenues

 

$1,063

 

$      807

 

$     364

 

$  188

 

$          25

 

$        212

 

$          (108)

   

$2,551

                                   

Cost of Sales and Other Expenses

 

(674)

 

(552)

 

(286)

 

(117)

 

(10)

 

(211)

 

91

   

(1,759)

                                   

Gain (Loss) on Sale of Assets

 

-

 

-

 

-

 

-

 

40

 

-

 

(1)

   

39

                                   

Depreciation & Amortization

 

(126)

 

(100)

 

(14)

 

(16)

 

(5)

 

(20)

 

(5)

   

(286)

                                   

Equity (Losses) Earnings Recorded Before Income Tax

 

-

 

-

 

-

 

-

 

(10)

 

13

 

-

   

3

                                   

Other Income (Expense), Net

 

10

 

2

 

3

 

1

 

4

 

3

 

(7)

   

16

                                   

Income (Loss) Before Interest & Tax (1)

 

273

 

157

 

67

 

56

 

44

 

(3)

 

(30)

   

564

                                   

Net Interest (Expense) Income (2)

 

(55)

 

(17)

 

(5)

 

-

 

2

 

(8)

 

(54)

   

(137)

                                   

Income Tax (Expense) Benefit

 

(84)

 

(38)

 

(16)

 

(16)

 

(9)

 

4

 

42

   

(117)

                                   

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

8

 

-

 

-

 

-

   

8

                                   

Earnings Attributable to Noncontrolling Interests

 

(5)

 

-

 

(7)

 

(9)

 

-

 

-

 

(1)

   

(22)

                                   

Earnings (Losses)

 

$   129

 

$      102

 

$       39

 

$    39

 

$          37

 

$           (7)

 

$           (43)

   

$   296

                                   
                                   

Three Months Ended September 30, 2012

                         
                                   

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South American Utilities

 

Sempra Mexico

 

Sempra Renewables

 

Sempra Natural Gas

 

Consolidating Adjustments, Parent & Other

   

Total

                                   

Revenues

 

$1,092

 

$      728

 

$     356

 

$  181

 

$          27

 

$        294

 

$          (171)

   

$2,507

                                   

Cost of Sales and Other Expenses

 

(694)

 

(518)

 

(269)

 

(106)

 

(11)

 

(288)

 

159

   

(1,727)

                                   

Depreciation & Amortization

 

(128)

 

(91)

 

(15)

 

(15)

 

(4)

 

(24)

 

(3)

   

(280)

                                   

Equity Losses Recorded Before Income Tax

 

-

 

-

 

-

 

-

 

(6)

 

(87)

(3)

(1)

   

(94)

                                   

Other Income (Expense), Net

 

5

 

6

 

5

 

6

 

(1)

 

3

 

20

   

44

                                   

Income (Loss) Before Interest & Tax (1)

 

275

 

125

 

77

 

66

 

5

 

(102)

 

4

   

450

                                   

Net Interest Expense (2)

 

(51)

 

(17)

 

(3)

 

(3)

 

(4)

 

(11)

 

(34)

   

(123)

                                   

Income Tax (Expense) Benefit

 

(38)

 

(37)

 

(27)

 

(31)

 

12

 

45

 

27

   

(49)

                                   

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

10

 

-

 

-

 

-

   

10

                                   

Earnings Attributable to Noncontrolling Interests

 

(12)

 

-

 

(7)

 

-

 

-

 

-

 

(1)

   

(20)

                                   

Earnings (Losses)

 

$   174

 

$        71

 

$       40

 

$    42

 

$          13

 

$         (68)

 

$             (4)

   

$   268

                                   
                                   
                                   
                                   
                                   

(1) Management believes "Income (Loss) Before Interest & Tax" is a useful measurement of our segments' 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 includes Interest Income, Interest Expense, Preferred Dividends of Subsidiaries and Call Premium on Preferred Stock.

 

(3)Includes impairment loss of $100 million related to our investment in Rockies Express Pipeline LLC.

 

 

 

SEMPRA ENERGY

Table F (Unaudited)

                                   

Statement of Operations Data by Segment

                         
                                   

Nine Months Ended September 30, 2013

                       
                                   

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South American Utilities

 

Sempra Mexico

 

Sempra Renewables

 

Sempra Natural Gas

 

Consolidating Adjustments, Parent & Other

   

Total

                                   

Revenues

 

$3,066

 

$   2,694

 

$  1,119

 

$  519

 

$          76

 

$        683

 

$            (305)

   

$7,852

                                   

Cost of Sales and Other Expenses

 

(1,943)

 

(1,997)

 

(877)

 

(342)

 

(37)

 

(623)

 

262

   

(5,557)

                                   

Loss From Plant Closure

 

(200)

 

-

 

-

 

-

 

-

 

-

 

-

   

(200)

                                   

Gain (Loss) on Sale of Assets

 

-

 

-

 

-

 

-

 

40

 

74

 

(1)

   

113

                                   

Depreciation & Amortization

 

(367)

 

(280)

 

(44)

 

(47)

 

(20)

 

(60)

 

(10)

   

(828)

                                   

Equity (Losses) Earnings Recorded Before Income Tax

 

-

 

-

 

-

 

-

 

(12)

 

33

 

-

   

21

                                   

Other Income, Net

 

30

 

9

 

6

 

5

 

9

 

7

 

13

   

79

                                   

Income (Loss) Before Interest & Tax (1)

 

586

 

426

 

204

 

135

 

56

 

114

 

(41)

   

1,480

                                   

Net Interest Expense (2)

 

(153)

 

(53)

 

(9)

 

(4)

 

(8)

 

(23)

 

(156)

   

(406)

                                   

Income Tax (Expense) Benefit

 

(147)

 

(107)

 

(50)

 

(44)

 

8

 

(35)

 

48

   

(327)

                                   

Equity (Losses) Earnings Recorded Net of Income Tax

 

-

 

-

 

(14)

 

27

 

-

 

-

 

-

   

13

                                   

Earnings Attributable to Noncontrolling Interests

 

(1)

 

-

 

(21)

 

(18)

 

-

 

(1)

 

-

   

(41)

                                   

Earnings (Losses)

 

$   285

 

$      266

 

$     110

 

$    96

 

$          56

 

$          55

 

$            (149)

   

$   719

                                   
                                   

Nine Months Ended September 30, 2012

                         
                                   

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South American Utilities

 

Sempra Mexico

 

Sempra Renewables

 

Sempra Natural Gas

 

Consolidating Adjustments, Parent & Other

   

Total

                                   

Revenues

 

$2,706

 

$   2,328

 

$  1,061

 

$  435

 

$          49

 

$        761

 

$            (361)

   

$6,979

                                   

Cost of Sales and Other Expenses

 

(1,730)

 

(1,727)

 

(820)

 

(247)

 

(21)

 

(729)

 

308

   

(4,966)

                                   

Depreciation & Amortization

 

(359)

 

(268)

 

(42)

 

(46)

 

(10)

 

(69)

 

(9)

   

(803)

                                   

Equity Losses Recorded Before Income Tax

 

-

 

-

 

-

 

-

 

(7)

 

(366)

(3)

(2)

   

(375)

                                   

Other Income (Expense), Net

 

59

 

14

 

7

 

17

 

(1)

 

3

 

38

   

137

                                   

Income (Loss) Before Interest & Tax (1)

 

676

 

347

 

206

 

159

 

10

 

(400)

 

(26)

   

972

                                   

Net Interest Expense (2)

 

(128)

 

(52)

 

(11)

 

(5)

 

(10)

 

(31)

 

(106)

   

(343)

                                   

Income Tax (Expense) Benefit

 

(151)

 

(105)

 

(57)

 

(61)

 

47

 

171

 

108

   

(48)

                                   

Equity Earnings Recorded Net of Income Tax

 

-

 

-

 

-

 

29

 

-

 

-

 

-

   

29

                                   

Earnings Attributable to Noncontrolling Interests

 

(23)

 

-

 

(20)

 

-

 

-

 

-

 

(1)

   

(44)

                                   

Earnings (Losses)

 

$   374

 

$      190

 

$     118

 

$  122

 

$          47

 

$       (260)

 

$              (25)

   

$   566

                                   

(1) Management believes "Income (Loss) Before Interest & Tax" is a useful measurement of our segments' 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 includes Interest Income, Interest Expense, Preferred Dividends of Subsidiaries and Call Premium on Preferred Stock.

 

(3) Includes impairment loss of $400 million related to our investment in Rockies Express Pipeline LLC.

 

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

 

SOURCE Sempra Energy

For further information: Media Contact: Doug Kline, Sempra Energy, (877) 340-8875, www.sempra.com, or Financial Contact: Victor Vilaplana, Sempra Energy, (877) 736-7727, investor@sempra.com


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