Sempra Energy Earnings Rise In Third Quarter

- Company Expects 2014 Results Near High End of Earnings-Per-Share Guidance Range of $4.25 to $4.55

- Cameron LNG Joint Venture Breaks Ground on Louisiana Liquefaction-Export Project

Nov 4, 2014

SAN DIEGO, Nov. 4, 2014 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported increased third-quarter 2014 earnings of $348 million, or $1.39 per diluted share, up from $296 million, or $1.19 per diluted share, in the third quarter 2013.

For the first nine months of 2014, Sempra Energy's earnings were $864 million, or $3.45 per diluted share, up from $719 million, or $2.89 per diluted share, in the first nine months of 2013.  Nine-month 2013 results included retroactive impacts of $77 million for the 2012 operations of San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas), based on the final California Public Utilities Commission (CPUC) General Rate Case decision issued in May 2013.  Offsetting the retroactive earnings from the General Rate Case was a $119 million charge in the second quarter 2013 related to Southern California Edison's decision to permanently retire the San Onofre Nuclear Generating Station (SONGS).  

"Based on solid financial results across all of our businesses in the third quarter and through the first nine months of the year, we are confident we will be near the high end of our 2014 earnings-per-share guidance range," said Debra L. Reed, chairman and CEO of Sempra Energy.  "We continue to accomplish new milestones in our growth plan.  Last month, the Cameron LNG joint venture broke ground on its liquefaction-export project, which should be operational in 2018.  Our Mexican unit, IEnova, completed the first phase of the Sonora pipeline and is nearing completion of the first phase of the Los Ramones pipeline.  In addition, we will be bidding later this year on several additional pipeline projects under Mexico's energy privatization plan." 

CALIFORNIA UTILITIES
San Diego Gas & Electric
Earnings for SDG&E in the third quarter 2014 were $157 million, compared with $129 million in the third quarter of last year, due primarily to higher CPUC base operating margin and favorable resolution of prior-years' income tax items.   

For the first nine months of 2014, SDG&E's earnings were $379 million, compared with $285 million in the first nine months of 2013.  Excluding charges related to SONGS in both years and 2013 retroactive earnings from the General Rate Case related to 2012 operations, SDG&E's adjusted earnings for the first nine months of 2014 were $388 million, compared with adjusted earnings of $352 million in the first nine months of 2013.

Southern California Gas Co.
Third-quarter earnings for SoCalGas were $98 million in 2014, compared with $102 million in 2013.

For the nine-month period, SoCalGas' earnings were $256 million in 2014, compared with $266 million in 2013.  Excluding retroactive earnings from the General Rate Case related to 2012 operations, SoCalGas' adjusted earnings in the first nine months of 2013 were $241 million.

SEMPRA INTERNATIONAL
Sempra South American Utilities
In the third quarter 2014, Sempra South American Utilities had earnings of $32 million, compared with $39 million in last year's third quarter, due primarily to higher taxes.

For the first nine months of 2014, earnings for Sempra South American Utilities were $109 million, compared with $110 million for the first nine months of 2013.

Sempra Mexico
Third-quarter earnings for Sempra Mexico were $63 million in 2014, compared with $39 million in 2013.  The increase in quarterly earnings was due primarily to the gain on the sale of 50 percent of the first phase of the Energia Sierra Juarez wind-power project, as well as regulatory earnings from projects in construction.

For the first nine months of 2014, Sempra Mexico had earnings of $139 million compared with $96 million during the same period last year. 

SEMPRA U.S. GAS & POWER
Sempra Renewables
Earnings for Sempra Renewables in the third quarter 2014 were $17 million compared with $37 million in the third quarter 2013, due primarily to $24 million in gains recorded in last year's third quarter associated with the contribution of assets to 50-50 solar joint ventures with Consolidated Edison Development. 

During the first nine months of 2014, earnings for Sempra Renewables were $63 million, up from $56 million in the same period last year.

Last month, Sempra U.S. Gas & Power put into service Broken Bow II, a 75-megawatt wind farm in Nebraska.  The power from the facility is being sold to the Nebraska Public Power District under a 25-year contract.

Sempra Natural Gas
Sempra Natural Gas had third-quarter earnings of $26 million in 2014, compared with losses of $7 million in 2013, due primarily to a Louisiana income-tax benefit. 

For the first nine months of 2014, Sempra Natural Gas had earnings of $39 million, compared with $55 million in the first nine months of 2013.  Earnings in the first nine months of 2013 included a $44 million gain on the sale of half the Mesquite Power plant.

EARNINGS GUIDANCE    
Sempra Energy today said that, based on results to date and the outlook for the fourth quarter, the company expects to achieve earnings near the high end of its 2014 earnings-per-share guidance range of $4.25 to $4.55.

NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures include adjusted earnings for the nine-month periods in 2014 and 2013 for SDG&E and 2013 for SoCalGas.  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 9612952.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2013 revenues of more than $10.5 billion.  The Sempra Energy companies' 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,"  "projects," "forecasts," "contemplates," "intends," "depends," "should," "could," "would," "will," "confident," "may," "potential," "target," "pursue," "goals," "outlook," "maintain" 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, including issuances of permits to construct and licenses for operation, 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, U.S. Environmental Protection Agency, California Air Resources Board and other regulatory, governmental and environmental bodies in the United States and other countries in which we operate; capital markets conditions, including the availability of credit and the liquidity of our investments; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining permits, licenses, certificates and other authorizations on a timely basis and risks in obtaining adequate and competitive financing for such projects; delays in the timing of costs incurred and the timing of regulatory agency authorization to recover such costs in rates from customers; inflation, interest and exchange rates; the impact of benchmark interest rates, generally Moody's A-rated utility bond yields, on our 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 and equipment failures and the decommissioning of San Onofre Nuclear Generating Station (SONGS); weather conditions, natural disasters, catastrophic accidents, and conservation efforts; cybersecurity threats to the energy grid and the confidentiality of our proprietary information and the personal information of our customers, terrorist attacks that threaten system operations and critical infrastructure, and wars; 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 that partners or counterparties will be unable or unwilling to fulfill their contractual commitments; risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest; 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 San Diego Gas & Electric Company's electric transmission and distribution system due to increased amount and variability of 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 San Diego Gas & Electric Company's 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, due to insufficient market interest, unattractive pricing or other factors; 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. 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.

Investors should not rely unduly on any forward-looking statement. 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)

2014


2013


2014


2013


(unaudited)

REVENUES








Utilities

$        2,463


$        2,223


$        7,318


$        6,889

Energy-related businesses

352


328


970


963

    Total revenues

2,815


2,551


8,288


7,852

EXPENSES AND OTHER INCOME








Utilities:








    Cost of natural gas

(293)


(261)


(1,308)


(1,182)

    Cost of electric fuel and purchased power

(680)


(537)


(1,761)


(1,461)

Energy-related businesses:








    Cost of natural gas, electric fuel and purchased power

(163)


(120)


(427)


(325)

    Other cost of sales

(42)


(47)


(122)


(144)

Operation and maintenance

(726)


(698)


(2,131)


(2,162)

Depreciation and amortization

(292)


(286)


(866)


(828)

Franchise fees and other taxes

(104)


(96)


(301)


(283)

Plant closure adjustment (loss)

               ―


               ―


13


(200)

Gain on sale of equity interests and assets

19


39


48


113

Equity earnings, before income tax

22


3


62


21

Other income, net

29


16


118


79

Interest income

6


5


15


15

Interest expense

(144)


(137)


(418)


(413)

Income before income taxes and equity earnings 








    of certain unconsolidated subsidiaries

447


432


1,210


1,082

Income tax expense

(71)


(117)


(291)


(327)

Equity earnings, net of income tax

7


8


22


13

Net income

383


323


941


768

Earnings attributable to noncontrolling interests

(35)


(22)


(76)


(41)

Call premium on preferred stock of subsidiary

               ―


(3)


               ―


(3)

Preferred dividends of subsidiaries

               ―


(2)


(1)


(5)

Earnings

$           348


$           296


$           864


$           719









Basic earnings per common share

$          1.41


$          1.21


$          3.52


$          2.95

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

246,137


244,140


245,703


243,682









Diluted earnings per common share

$          1.39


$          1.19


$          3.45


$          2.89

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

250,771


249,259


250,278


248,723









Dividends declared per share of common stock

$          0.66


$          0.63


$          1.98


$          1.89

 

 

SEMPRA ENERGY

Table A (Continued)










Sempra Energy Consolidated


















RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS EXCLUDING 

PLANT CLOSURE LOSS IN 2013 AND 2014 AND RETROACTIVE IMPACTS OF 2012 GENERAL RATE CASE (GRC) IN 2013 (Unaudited)










Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share exclude 1) in the nine months ended September 30, 2014, a $9 million charge to adjust the total loss from plant closure resulting from the early retirement of San Onofre Nuclear Generating Station (SONGS) (in addition to the amount recorded in the second quarter of 2013) based upon a proposed settlement agreement filed with the California Public Utilities Commission (CPUC) in April 2014; and 2) in the nine months ended September 30, 2013, a $119 million loss from plant closure and $77 million retroactive impact of the 2012 GRC for the full-year 2012. These are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). 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 2014 to 2013 and to future periods, and also as a base for projection of future compounded annual growth rate. 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)


2014


2013


2014


2013

Sempra Energy GAAP Earnings


$            348


$            296


$            864


$            719

Add: Plant closure loss


                 ―


                 ―


9


119

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


                 ―


                 ―


                 ―


(77)

Sempra Energy Adjusted Earnings


$            348


$            296


$            873


$            761










Diluted earnings per common share:









Sempra Energy GAAP Earnings


$           1.39


$           1.19


$           3.45


$           2.89

Sempra Energy Adjusted Earnings


$           1.39


$           1.19


$           3.49


$           3.06

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

250,771


249,259


250,278


248,723















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 PLANT CLOSURE LOSS

AT SDG&E IN 2013 AND 2014 AND RETROACTIVE IMPACTS OF 2012 GRC AT BOTH SDG&E AND SOCALGAS IN 2013 (Unaudited)










SDG&E Adjusted Earnings exclude 1) in the nine months ended September 30, 2014, a $9 million charge to adjust the total loss from plant closure resulting from the early retirement of SONGS (in addition to the amount recorded in the second quarter of 2013) based upon a proposed settlement agreement filed with the CPUC in April 2014; and 2) in the nine months ended September 30, 2013, the $119 million loss from plant closure and $52 million retroactive impact of the 2012 GRC for the full-year 2012. These are non-GAAP financial measures. SoCalGas Adjusted Earnings for the nine months ended September 30, 2013 exclude a $25 million retroactive impact of the 2012 GRC for the full-year 2012, which is a non-GAAP financial measure. 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 2014 to 2013 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)


2014


2013


2014


2013

SDG&E GAAP Earnings


$            157


$            129


$            379


$            285

Add: Plant closure loss


                 ―


                 ―


9


119

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


                 ―


                 ―


                 ―


(52)

SDG&E Adjusted Earnings


$            157


$            129


$            388


$            352










SoCalGas GAAP Earnings


$              98


$            102


$            256


$            266

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


                 ―


                 ―


                 ―


(25)

SoCalGas Adjusted Earnings


$              98


$            102


$            256


$            241

 

 

SEMPRA ENERGY

Table B








CONDENSED CONSOLIDATED BALANCE SHEETS












September 30,


December 31,

(Dollars in millions)

2014


2013(1)





(unaudited)



Assets




Current assets:





Cash and cash equivalents

$               667


$               904


Restricted cash

22


24


Accounts receivable, net

1,264


1,522


Due from unconsolidated affiliates

3


4


Income taxes receivable

91


85


Deferred income taxes

452


301


Inventories

472


287


Regulatory balancing accounts – undercollected

821


556


Other regulatory assets 

59


38


Fixed-price contracts and other derivatives

83


106


Asset held for sale, power plant

293


                    ―


Other

187


170




Total current assets

4,414


3,997








Investments and other assets:





Restricted cash

10


25


Due from unconsolidated affiliate

133


14


Regulatory assets arising from pension and other postretirement benefit obligations

435


435


Other regulatory assets

2,048


2,113


Nuclear decommissioning trusts

1,087


1,034


Investments

1,797


1,575


Goodwill 

951


1,024


Other intangible assets

418


426


Sundry

1,280


1,141




Total investments and other assets

8,159


7,787

Property, plant and equipment, net

26,409


25,460

Total assets

$           38,982


$           37,244








Liabilities and Equity




Current liabilities:





Short-term debt

$            1,309


$               545


Accounts payable

1,282


1,215


Dividends and interest payable

327


271


Accrued compensation and benefits

345


376


Regulatory balancing accounts – overcollected

                    ―


91


Current portion of long-term debt

188


1,147


Fixed-price contracts and other derivatives

49


55


Customer deposits

149


154


Other

643


515




Total current liabilities

4,292


4,369

Long-term debt

12,437


11,253








Deferred credits and other liabilities:





Customer advances for construction

144


155


Pension and other postretirement benefit obligations, net of plan assets

659


667


Deferred income taxes

3,113


2,804


Deferred investment tax credits

38


42


Regulatory liabilities arising from removal obligations

2,725


2,623


Asset retirement obligations

2,043


2,084


Fixed-price contracts and other derivatives

220


228


Deferred credits and other 

1,154


1,169




Total deferred credits and other liabilities

10,096


9,772

Equity:





Total Sempra Energy shareholders' equity

11,333


11,008


Preferred stock of subsidiary

20


20


Other noncontrolling interests

804


822




Total equity

12,157


11,850

Total liabilities and equity

$           38,982


$           37,244








(1)

Derived from audited financial statements.

 

 

SEMPRA ENERGY

Table C







CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 










Nine months ended
September 30,

(Dollars in millions)


2014


2013




(unaudited)

Cash Flows from Operating Activities





Net income

$

941

$

768

Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization


866


828


Deferred income taxes and investment tax credits


131


327


Gain on sale of equity interests and assets


(48)


(113)


Plant closure (adjustment) loss


(13)


200


Equity earnings


(84)


(34)


Fixed-price contracts and other derivatives


(19)


(25)


Other


32


23

Net change in other working capital components


(215)


(454)

Changes in other assets


28


(203)

Changes in other liabilities


42


13


Net cash provided by operating activities


1,661


1,330







Cash Flows from Investing Activities





Expenditures for property, plant and equipment


(2,320)


(1,785)

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


(192)


(21)

Proceeds from sale of equity interests and assets, net of cash sold


92


566

Proceeds from U.S. Treasury grants


                ―


238

Distributions from investments


15


141

Purchases of nuclear decommissioning and other trust assets


(505)


(514)

Proceeds from sales by nuclear decommissioning and other trusts


498


510

Decrease in restricted cash


156


285

Increase in restricted cash


(139)


(311)

Advances to unconsolidated affiliates


(81)


                ―

Other


10


(10)


Net cash used in investing activities


(2,466)


(901)







Cash Flows from Financing Activities





Common dividends paid


(450)


(452)

Preferred dividends paid by subsidiaries


(1)


(5)

Issuances of common stock


43


57

Repurchases of common stock


(38)


(45)

Issuances of debt (maturities greater than 90 days)


3,063


1,404

Payments on debt (maturities greater than 90 days)


(1,845)


(1,444)

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


                ―


574

(Decrease) increase in short-term debt, net


(111)


81

Net distributions to noncontrolling interests


(84)


(28)

Other 


(5)


15


Net cash provided by financing activities


572


157







Effect of exchange rate changes on cash and cash equivalents


(4)


                ―







(Decrease) increase in cash and cash equivalents


(237)


586

Cash and cash equivalents, January 1


904


475

Cash and cash equivalents, September 30

$

667

$

1,061







 

 

SEMPRA ENERGY

Table D





















SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS 






















Three months ended 


Nine months ended 




September 30,


September 30,

(Dollars in millions)

2014


2013


2014


2013




    (unaudited)

Earnings (Losses) 








California Utilities:








San Diego Gas & Electric

$              157


$               129


$              379


$             285

Southern California Gas

98


102


256


266

Sempra International:








Sempra South American Utilities

32


39


109


110

Sempra Mexico

63


39


139


96

Sempra U.S. Gas & Power:








Sempra Renewables

17


37


63


56

Sempra Natural Gas

26


(7)


39


55

Parent and other

(45)


(43)


(121)


(149)

Earnings

$              348


$               296


$              864


$             719














Three months ended 


Nine months ended 




September 30,


September 30,

(Dollars in millions)

2014


2013


2014


2013




    (unaudited)

Capital Expenditures and Investments








California Utilities:








San Diego Gas & Electric

$              247


$               233


$              790


$             679

Southern California Gas

264


181


764


521

Sempra International:








Sempra South American Utilities

36


54


126


120

Sempra Mexico

73


119


262


280

Sempra U.S. Gas & Power:








Sempra Renewables

83


69


359


135

Sempra Natural Gas

125


14


192


69

Parent and other

11


1


19


2

Consolidated Capital Expenditures and Investments

$              839


$               671


$           2,512


$          1,806

 

 


SEMPRA ENERGY

Table E

























OTHER OPERATING STATISTICS (Unaudited)




















Three months ended
September 30,


Nine months ended

 September 30,

UTILITIES


2014


2013



2014


2013











California Utilities - SDG&E and SoCalGas










Gas Sales (Bcf)(1)


59


62



239


276

Transportation (Bcf)(1)


192


197



512


527

Total Deliveries (Bcf)(1)


251


259



751


803

Total Gas Customers (Thousands)







6,727


6,699













Electric Sales (Millions of kWhs)(1)


4,644


4,489



12,368


12,305

Direct Access (Millions of kWhs)


1,057


1,087



2,761


2,681

Total Deliveries (Millions of kWhs)(1)


5,701


5,576



15,129


14,986

Total Electric Customers (Thousands)







1,415


1,407













Other Utilities










Natural Gas Sales (Bcf)











Mexico


7


6



18


18


Mobile Gas(2)


9


8



29


29


Willmut Gas


         ―  


         ―  



2


2

Natural Gas Customers (Thousands) 











Mexico







104


97


Mobile Gas







86


87


Willmut Gas







19


19

Electric Sales (Millions of kWhs)











Peru


1,790


1,733



5,458


5,221


Chile


696


677



2,192


2,127

Electric Customers (Thousands)











Peru







1,021


986


Chile







654


636













ENERGY-RELATED BUSINESSES






















Sempra International










Power Sold (Millions of kWhs)











Sempra Mexico


1,149


1,067



3,081


2,902













Sempra U.S. Gas & Power










Power Sold (Millions of kWhs)











Sempra Renewables(3)

540


461



1,819


1,842


Sempra Natural Gas(4)


1,435


1,140



3,870


3,067













(1)

Includes intercompany sales.

(2)

Includes transportation.

(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, 2014




















(Dollars in millions)


SDG&E


SoCalGas


Sempra South American Utilities


Sempra Mexico


Sempra Renewables


Sempra Natural Gas


Consolidating Adjustments, Parent & Other



Total




















Revenues


$        1,233


$       855


$            379


$           234


$            10


$         252


$               (148)



$     2,815




















Cost of sales and other expenses


(823)


(593)


(305)


(156)


(13)


(255)


137



(2,008)




















Depreciation and amortization


(134)


(109)


(14)


(16)


(1)


(17)


(1)



(292)




















Gain on sale of equity interest


-


-


-


19


-


-


-



19




















Equity earnings, before income tax


-


-


-


-


7


15


-



22




















Other income (expense), net


9


6


10


5


-


1


(2)



29




















Income (loss) before interest and tax (1)


285


159


70


86


3


(4)


(14)



585




















Net interest expense (2)


(51)


(17)


(3)


(4)


(2)


(1)


(60)



(138)




















Income tax (expense) benefit


(65)


(44)


(26)


(13)


16


31


30



(71)




















Equity (losses) earnings, net of income tax


-


-


(2)


9


-


-


-



7




















Earnings attributable to noncontrolling interests


(12)


-


(7)


(15)


-


-


(1)



(35)




















Earnings (losses)


$          157


$         98


$              32


$            63


$            17


$           26


$                 (45)



$        348







































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)




















Depreciation and amortization


(126)


(100)


(14)


(16)


(5)


(20)


(5)



(286)




















Gain (loss) on sale of equity interests and assets


-


-


-


-


40


-


(1)



39




















Equity (losses) earnings, before income tax


-


-


-


-


(10)


13


-



3




















Other income (expense), net


10


2


3


1


4


3


(7)



16




















Income (loss) before interest and 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, 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


(1)

Management believes Income (Loss) Before Interest and 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)

Includes interest income and interest expense. In 2013, also includes call premium on preferred stock of subsidiary and preferred dividends of subsidiaries.

 

 



         SEMPRA ENERGY


           Table F (Unaudited)




















Statement of Operations Data by Segment




















Nine Months Ended September 30, 2014




















(Dollars in millions)


SDG&E


SoCalGas


Sempra South American Utilities


Sempra Mexico


Sempra Renewables


Sempra Natural Gas


Consolidating Adjustments, Parent & Other



Total




















Revenues


$       3,283


$    2,857


$         1,147


$           621


$            25


$         748


$               (393)



$     8,288




















Cost of sales and other expenses


(2,162)


(2,132)


(916)


(425)


(36)


(723)


344



(6,050)




















Depreciation and amortization


(395)


(321)


(41)


(47)


(4)


(50)


(8)



(866)




















Plant closure adjustment


13

(1)

-


-


-


-


-


-



13




















Gain on sale of equity interests and assets


-


-


2


19


27


-


-



48




















Equity earnings, before income tax


-


-


-


-


18


44


-



62




















Other income, net


29


13


15


27


1


2


31



118




















Income (loss) before interest and tax (2)


768


417


207


195


31


21


(26)



1,613




















Net interest expense (3)


(152)


(51)


(14)


(11)


(3)


(3)


(170)



(404)




















Income tax (expense) benefit


(217)


(110)


(59)


(37)


35


22


75



(291)




















Equity (losses) earnings, net of income tax


-


-


(4)


26


-


-


-



22




















Earnings attributable to noncontrolling interests


(20)


-


(21)


(34)


-


(1)


-



(76)




















Earnings (losses)


$          379


$       256


$            109


$           139


$            63


$          39


$               (121)



$        864







































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)




















Depreciation and amortization


(367)


(280)


(44)


(47)


(20)


(60)


(10)



(828)




















Plant closure loss


(200)


-


-


-


-


-


-



(200)




















Gain (loss) on sale of equity interests and assets


-


-


-


-


40


74


(1)



113




















Equity (losses) earnings, before income tax


-


-


-


-


(12)


33


-



21




















Other income, net


30


9


6


5


9


7


13



79




















Income (loss) before interest and tax (2)


586


426


204


135


56


114


(41)



1,480




















Net interest expense (3)


(153)


(53)


(9)


(4)


(8)


(23)


(156)



(406)




















Income tax (expense) benefit


(147)


(107)


(50)


(44)


8


(35)


48



(327)




















Equity (losses) earnings, 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


(1)

After taxes, including a $17 million charge to reduce certain tax regulatory assets attributed to SONGS, the adjustment to loss from plant closure is a $9 million charge to earnings.




















(2)

Management believes Income (Loss) Before Interest and 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.




















(3)

Includes interest income, interest expense and preferred dividends of subsidiaries. In 2013, also includes call premium on preferred stock of subsidiary.

 

 

Sempra Energy Logo.

Logo - http://photos.prnewswire.com/prnh/20110108/SEMPRAENERGYLOGO

SOURCE Sempra Energy

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


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