Sempra Energy raises 2006 earnings-per-share estimate
New outlook for continuing operations exceeds $4 per share company to sell Argentine utility interests

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Sempra Energy

Sempra Energy

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        SAN DIEGO, Dec. 27, 2006 – Sempra Energy (NYSE: SRE) today announced it expects earnings from continuing operations, excluding impacts related to asset sales, to exceed $4 per share.  The increase from the previous per share estimate of $3.50 to $3.70 is due primarily to increased profitability at its commodities business.  Final year-end and fourth-quarter results will be announced on Feb. 22, 2007.

        The company also announced it has decided to sell its interests in two Argentine natural gas distribution companies.  Sempra Energy owns 37 percent of Camuzzi Gas Pampeana SA and 39 percent of Camuzzi del Sur SA, both based in Buenos Aires.

        “We are extremely pleased with our financial performance this year,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “The decision to sell our Argentine investments is a continuation of our strategy to shed non-strategic assets and focus on growing our natural gas infrastructure and marketing businesses and our California utilities,” he added.

        The asset sales affecting earnings from continuing operations that are excluded from the new earnings guidance are a third-quarter gain of $204 million on the sale of the Topaz Texas power plants and a fourth-quarter non-cash impairment charge of approximately $200 million resulting from the company’s decision to sell its interests in the Argentine natural gas distribution companies.

        Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.


This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” “should” or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas and liquified natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, and on the company’s Web site,