Sempra Energy Reports 2013 Financial Results

-- Company Reaffirms 2014 Consolidated Earnings-per-Share Guidance Range of $4.25 to $4.55

-- Dividend Increased 5 Percent to $2.64 Per Share Annually

-- Cameron LNG Project Advances with Key Permit for Exports to Non-FTA Countries, FERC Environmental Review

News provided by

Sempra Energy

Feb 27, 2014, 09:00 ET

SAN DIEGO, Feb. 27, 2014 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported 2013 earnings of $1 billion, or $4.01 per diluted share, compared with 2012 earnings of $859 million, or $3.48 per diluted share. 

As previously announced, full-year 2013 results included $77 million for the 2012 retroactive benefit from the California Public Utilities Commission (CPUC) General Rate Case decision for San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas), offset by a $119 million charge related to the closure of the San Onofre Nuclear Generating Station (SONGS).  Sempra Energy's 2012 results included $239 million of non-cash charges for the write-down of its investment in the Rockies Express Pipeline, offset by the receipt of a $25 million after-tax cash payment from Kinder Morgan related to the sale of its ownership in the pipeline.

Sempra Energy's fourth-quarter earnings were $282 million, or $1.13 per diluted share, in 2013, compared with $293 million, or $1.18 per diluted share, in 2012.

Earnings for Guidance Comparison

For comparison with 2013 earnings-per-share guidance of $4.30 to $4.60, Sempra Energy's full-year diluted earnings per share in 2013 were $4.49, which excluded the $119 million charge related to SONGS, but included the $77 million retroactive benefit for 2012 from the CPUC General Rate Case. 

"In 2013, we laid the foundation for our future growth, while continuing to achieve our financial and operational objectives," said Debra L. Reed, chairman and CEO of Sempra Energy.  "We launched the first successful initial public offering for an energy company in Mexico.  We also advanced several key projects, including Cameron LNG, new Mexican pipelines, and hydropower and electric transmission in South America.  Additionally, our California utilities resolved their 2012 General Rate Case and continued to make significant investments in critical new infrastructure, technology and safety programs for their customers.  All of these activities support earnings growth and an increasing dividend."

Last week, Sempra Energy's board of directors approved a 5-percent increase in the company's dividend to $2.64 per share from $2.52 per share, on an annualized basis.

On Feb. 11, Sempra Energy received a conditional permit from the U.S. Department of Energy to export natural gas to non-Free-Trade-Agreement countries from the company's Cameron LNG facility in Louisiana.  Cameron LNG is one of only six U.S. projects to date to receive an export permit.  Among natural gas export projects currently under federal regulatory review, Cameron LNG is the first to have received a schedule for environmental review from the Federal Energy Regulatory Commission (FERC).  The FERC schedule calls for issuance of a Final Environmental Impact Statement on or before April 30, the last major regulatory step before Cameron LNG receives a FERC order authorizing construction and operation of the project.  The company expects to break ground on the project later this year, with the first LNG being produced for export in 2018 and the first full year of commercial operations of all three liquefaction trains in 2019.

"Exporting natural gas will lead to the creation of thousands of new jobs and bolster U.S. economic growth," Reed said.

CALIFORNIA UTILITIES

San Diego Gas & Electric

Earnings for SDG&E in 2013 were $404 million, compared with $484 million in 2012.  The decrease in earnings for the year was due primarily to the $119 million charge related to the closure of SONGS and lower authorized rates of return.  The lower earnings were offset partially by higher CPUC base operating margin and increased operating efficiencies in 2013, as well as a $52 million retroactive benefit in 2013 for 2012 operations as a result of the General Rate Case decision.

SDG&E's fourth-quarter earnings increased to $119 million in 2013 from $110 million in 2012, due primarily to higher CPUC base margin, partially offset by lower authorized rates of return and reduced revenues related to the closure of SONGS. 

Southern California Gas Co.

SoCalGas' earnings rose to $364 million in 2013 from $289 million in 2012, due primarily to higher CPUC base operating margin and recovery of certain costs associated with the utility's pipeline integrity program.  In 2013, SoCalGas also recorded a $25 million retroactive benefit for 2012 operations as a result of the General Rate Case decision.  In the fourth quarter 2013, SoCalGas' earnings were $98 million, compared with earnings of $99 million in the fourth quarter 2012.

SEMPRA INTERNATIONAL

Sempra South American Utilities

In 2013, earnings for Sempra South American Utilities were $153 million, compared with $164 million in 2012, due primarily to $11 million in losses related to the 2013 sale of the company's Argentine investments.  In the fourth quarter 2013, Sempra South American Utilities had earnings of $43 million, compared with $46 million in the fourth quarter 2012.

Sempra Mexico

Sempra Mexico's earnings in 2013 were $122 million, compared with $157 million in 2012.  Sempra Mexico's fourth-quarter earnings were $26 million in 2013, compared with $35 million in 2012.  The decrease in Sempra Mexico's earnings for both the quarter and the year was due primarily to dilution from the effect of the IEnova initial public offering and a change in Mexican tax law that resulted in a $13 million increase in deferred tax expense.

SEMPRA U.S. GAS & POWER

Sempra Natural Gas

Sempra Natural Gas earned $64 million in 2013, compared with a loss of $241 million in 2012.  In 2013, Sempra Natural Gas recorded a $44 million gain on the sale of a 625-megawatt block of the Mesquite Power Plant.  Sempra Natural Gas' 2012 results included the $239 million charge related to the Rockies Express Pipeline, partially offset by the $25 million after-tax cash payment from Kinder Morgan.  In the fourth quarter 2013, Sempra Natural Gas earned $9 million, compared with earnings of $19 million in the fourth quarter 2012, due primarily to the $25 million Kinder Morgan payment in 2012, offset by lower LNG operating costs in 2013.

Sempra Renewables

In 2013, earnings for Sempra Renewables were $62 million, compared with $61 million in 2012.  Fourth-quarter earnings for Sempra Renewables were $6 million in 2013, compared with $14 million in 2012, due primarily to deferred tax benefits in 2012 from assets placed into service.

2014 EARNINGS GUIDANCE

Sempra Energy today reaffirmed its consolidated earnings-per-share guidance range for 2014 of $4.25 to $4.55.

NON-GAAP FINANCIAL MEASURES

Non-GAAP financial measures for Sempra Energy include 2013 earnings-per-share guidance and 2013 earnings per share for guidance comparison.  Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the fourth-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 8066611.

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," "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, 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; 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; 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 we do 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 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 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.  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.

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
















CONSOLIDATED STATEMENTS OF OPERATIONS









Three months ended

Years ended

December 31,

December 31,

(Dollars in millions, except per share amounts)

2013

2012

2013

2012

(unaudited)



REVENUES






Utilities

$  2,420

$  2,342

$  9,309

$  8,441

Energy-related businesses

285

326

1,248

1,206

    Total revenues

2,705

2,668

10,557

9,647

EXPENSES AND OTHER INCOME






Utilities:






    Cost of natural gas

(464)

(426)

(1,646)

(1,290)

    Cost of electric fuel and purchased power

(471)

(508)

(1,932)

(1,760)

Energy-related businesses:






    Cost of natural gas, electric fuel and purchased power

(110)

(135)

(435)

(481)

    Other cost of sales

(34)

(42)

(178)

(159)

Operation and maintenance

(833)

(826)

(2,995)

(2,956)

Depreciation and amortization

(285)

(287)

(1,113)

(1,090)

Franchise fees and other taxes

(91)

(95)

(374)

(359)

Loss from plant closure

-

-

(200)

-

Gain on sale of assets

1

-

114

7

Equity earnings (losses), before income tax 

10

56

31

(319)

Other income, net

61

35

140

172

Interest income

5

10

20

24

Interest expense

(146)

(141)

(559)

(493)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

348

309

1,430

943

Income tax expense

(39)

(11)

(366)

(59)

Equity earnings, net of income tax

11

7

24

36

Net income

320

305

1,088

920

Earnings attributable to noncontrolling interests

(38)

(11)

(79)

(55)

Call premium on preferred stock of subsidiary

-

-

(3)

-

Preferred dividends of subsidiaries

-

(1)

(5)

(6)

Earnings

$     282

$     293

$  1,001

$     859








Basic earnings per common share

$    1.15

$    1.21

$    4.10

$    3.56

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

244,398

241,984

243,863

241,347








Diluted earnings per common share

$    1.13

$    1.18

$    4.01

$    3.48

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

249,946

247,570

249,332

246,693








Dividends declared per share of common stock

$    0.63

$    0.60

$    2.52

$    2.40

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 NET IMPAIRMENT CHARGE IN 2012 (Unaudited)

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share excluding 1) in the year ended December 31, 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 impacts of the 2012 GRC for the full-year 2012 and 2) in the year ended December 31, 2012, a $214 million impairment charge on our investment in Rockies Express Pipeline LLC, net of a $25 million Kinder Morgan receipt in the fourth quarter, 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. 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 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

Years ended

December 31,

December 31,

(Dollars in millions, except per share amounts)

2013

2012

2013

2012

Sempra Energy GAAP Earnings

$ 282

$ 293

$ 1,001

$ 859

Add: Loss from plant closure

-

-

119

-

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

-

-

(77)

-

Add: Year-to-date impairment charge in 2012, net of fourth-quarter receipt

-

(25)

-

214

Sempra Energy Adjusted Earnings

$ 282

$ 268

$ 1,043

$ 1,073








Diluted earnings per common share:






Sempra Energy GAAP Earnings

$ 1.13

$ 1.18

$ 4.01

$ 3.48

Sempra Energy Adjusted Earnings

$ 1.13

$ 1.08

$ 4.18

$ 4.35

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

249,946

247,570

249,332

246,693
















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 for the year ended December 31, 2013 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 2013 is a non-GAAP financial measure. SoCalGas Adjusted Earnings for the year ended December 31, 2013 excluding $25 million retroactive impact of the 2012 GRC for the full-year 2012 in 2013 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 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

Years ended

December 31,

December 31,

(Dollars in millions)

2013

2012

2013

2012

SDG&E GAAP Earnings

$ 119

$ 110

$ 404

$ 484

Add: Loss from plant closure

-

-

119

-

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

-

-

(52)

-

SDG&E Adjusted Earnings

$ 119

$ 110

$ 471

$ 484








SoCalGas GAAP Earnings

$ 98

$ 99

$ 364

$ 289

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

-

-

(25)

-

SoCalGas Adjusted Earnings

$ 98

$ 99

$ 339

$ 289

SEMPRA ENERGY

Table B







CONSOLIDATED BALANCE SHEETS











December 31,

December 31,

(Dollars in millions)

2013

2012







Assets


Current assets:



Cash and cash equivalents

$           904

$           475

Restricted cash

24

46

Accounts receivable, net

1,522

1,299

Due from unconsolidated affiliates

4

-

Income taxes receivable

85

56

Deferred income taxes

301

148

Inventories

287

408

Regulatory balancing accounts – undercollected

556

395

Regulatory assets 

38

62

Fixed-price contracts and other derivatives

106

95

U.S. Treasury grants receivable

-

258

Asset held for sale, power plant

-

296

Other

170

157



Total current assets

3,997

3,695







Investments and other assets:



Restricted cash

25

22

Due from unconsolidated affiliate

14

-

Regulatory assets arising from pension and other postretirement benefit obligations

435

1,151

Other regulatory assets

2,113

1,591

Nuclear decommissioning trusts

1,034

908

Investments

1,575

1,516

Goodwill

1,024

1,111

Other intangible assets

426

436

Sundry

1,141

878



Total investments and other assets

7,787

7,613

Property, plant and equipment, net

25,460

25,191

Total assets

$       37,244

$       36,499







Liabilities and Equity


Current liabilities:



Short-term debt

$           545

$           546

Accounts payable

1,215

1,110

Dividends and interest payable

271

266

Accrued compensation and benefits

376

337

Regulatory balancing accounts – overcollected

91

141

Current portion of long-term debt

1,147

725

Fixed-price contracts and other derivatives

55

77

Customer deposits

154

143

Reserve for wildfire litigation

63

305

Other

452

608



Total current liabilities

4,369

4,258

Long-term debt

11,253

11,621







Deferred credits and other liabilities:



Customer advances for construction

155

144

Pension and other postretirement benefit obligations, net of plan assets

667

1,456

Deferred income taxes

2,804

2,100

Deferred investment tax credits

42

46

Regulatory liabilities arising from removal obligations

2,623

2,720

Asset retirement obligations

2,084

2,033

Fixed-price contracts and other derivatives

228

252

Deferred credits and other 

1,169

1,107



Total deferred credits and other liabilities

9,772

9,858

Contingently redeemable preferred stock of subsidiary

-

79

Equity:



Total Sempra Energy shareholders' equity

11,008

10,282

Preferred stock of subsidiary

20

20

Other noncontrolling interests

822

381



Total equity

11,850

10,683

Total liabilities and equity

$       37,244

$       36,499

SEMPRA ENERGY

Table C






CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 









Years ended
December 31,

(Dollars in millions)

2013

2012




Cash Flows from Operating Activities



Net income

$1,088

$  920

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




Depreciation and amortization

1,113

1,090

Deferred income taxes and investment tax credits

334

(43)

Gain on sale of assets

(114)

(7)

Loss from plant closure

200

-

Equity (earnings) losses

(55)

324

Fixed-price contracts and other derivatives

(21)

(26)

Other

13

41

Net change in other working capital components

(620)

(630)

Changes in other assets

(171)

219

Changes in other liabilities

17

130

Net cash provided by operating activities

1,784

2,018






Cash Flows from Investing Activities



Expenditures for property, plant and equipment

(2,572)

(2,956)

Proceeds from sale of assets and investments

570

74

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

(22)

(445)

Proceeds from U.S. Treasury grants

238

-

Distributions from RBS Sempra Commodities LLP

50

-

Distributions from other investments

102

207

Purchases of nuclear decommissioning and other trust assets

(697)

(738)

Proceeds from sales by nuclear decommissioning and other trusts

695

733

Decrease in restricted cash

329

196

Increase in restricted cash

(356)

(218)

Advances to unconsolidated affiliates

(14)

-

Other 

(12)

(11)

Net cash used in investing activities

(1,689)

(3,158)






Cash Flows from Financing Activities



Common dividends paid

(606)

(550)

Redemption of preferred stock of subsidiary

(82)

-

Preferred dividends paid by subsidiaries

(5)

(6)

Issuances of common stock

62

78

Repurchases of common stock

(45)

(16)

Issuances of debt (maturities greater than 90 days)

2,081

3,097

Payments on debt (maturities greater than 90 days)

(1,788)

(1,112)

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

574

-

Increase (decrease) in short-term debt, net

256

(47)

Purchase of noncontrolling interests

-

(7)

Distributions to noncontrolling interests

(69)

(61)

Other 

(40)

(21)

Net cash provided by financing activities

338

1,355






Effect of exchange rate changes on cash and cash equivalents

(4)

8






Increase in cash and cash equivalents

429

223

Cash and cash equivalents, January 1

475

252

Cash and cash equivalents, December 31

$   904

$  475

SEMPRA ENERGY

Table D




















SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS 























Three months ended

Years ended



December 31,

December 31,

(Dollars in millions)

2013

2012

2013

2012



(unaudited)



Earnings (Losses) 






California Utilities:






San Diego Gas & Electric

$119

$110

$   404

$   484

Southern California Gas

98

99

364

289

Sempra International:






Sempra South American Utilities

43

46

153

164

Sempra Mexico

26

35

122

157

Sempra U.S. Gas & Power:






Sempra Renewables

6

14

62

61

Sempra Natural Gas

9

19

64

(241)

Parent & Other 

(19)

(30)

(168)

(55)

Earnings

$282

$293

$1,001

$   859













Three months ended

Years ended



December 31,

December 31,

(Dollars in millions)

2013

2012

2013

2012



(unaudited)



Capital Expenditures and Investments






California Utilities:






San Diego Gas & Electric

$299

$239

$   978

$1,237

Southern California Gas

241

177

762

639

Sempra International:






Sempra South American Utilities

80

67

200

184

Sempra Mexico

91

32

371

45

Sempra U.S. Gas & Power:






Sempra Renewables

58

228

193

1,089

Sempra Natural Gas

18

58

87

202

Parent & Other

1

-

3

5

Consolidated Capital Expenditures and Investments

$788

$801

$2,594

$3,401

SEMPRA ENERGY

Table E






















OTHER OPERATING STATISTICS (Unaudited)

























Three months ended

Years ended




December 31,

December 31,

UTILITIES

2013

2012

2013

2012









California Utilities – SDG&E and SoCalGas







Gas Sales (bcf)(1)

104

102

380

380

Transportation (bcf)(1)

172

181

699

736

Total Deliveries (bcf)(1)

276

283

1,079

1,116

Total Gas Customers (Thousands)




6,706

6,678











Electric Sales (Millions of kWhs)(1)

3,858

4,220

16,163

16,626

Direct Access (Millions of kWhs)

912

926

3,593

3,399

Total Deliveries (Millions of kWhs)(1)

4,770

5,146

19,756

20,025

Total Electric Customers (Thousands)




1,408

1,401











Other Utilities







Natural Gas Sales (bcf)








Mexico

6

6

24

23

Mobile Gas

11

10

40

43

Willmut Gas(2)

1

-

3

1

Natural Gas Customers (Thousands)








Mexico




99

93

Mobile Gas




87

88

Willmut Gas(2)


19

20

Electric Sales (Millions of kWhs)








Peru

1,763

1,672

6,984

6,668

Chile

729

683

2,856

2,698

Electric Customers (Thousands)








Peru




996

959

Chile




640

623











ENERGY-RELATED BUSINESSES


















Sempra International







Power Sold (Millions of kWhs)








Sempra Mexico

850

706

3,752

3,817











Sempra U.S. Gas & Power







Power Sold (Millions of kWhs)








Sempra Renewables(3)

628

440

2,470

1,207

Sempra Natural Gas(4)

1,261

1,179

4,328

6,580











(1) Includes intercompany sales.

(2) Acquired in May 2012.

(3) Includes 50% of total power sold related to solar and 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 December 31, 2013


































(Dollars in millions)

SDG&E

SoCalGas

Sempra South American Utilities

Sempra Mexico

Sempra Renewables

Sempra Natural Gas

Consolidating Adjustments, Parent & Other

Total


















Revenues

$ 1,000

$    1,042

$             376

$    156

$              6

$          225

$             (100)

$ 2,705


















Cost of Sales and Other Expenses

(647)

(817)

(292)

(110)

(15)

(195)

74

(2,002)


















Depreciation & Amortization

(127)

(103)

(15)

(16)

(1)

(21)

(2)

(285)


















Equity Earnings (Losses) Recorded Before Income Tax

-

-

-

-

-

14

(4)

10


















Other Income (Expense), Net

10

2

3

19

-

(4)

31

61


















Income (Loss) Before Interest & Tax (1)

236

124

72

49

(10)

19

(1)

489


















Net Interest (Expense) Income (2)

(50)

(17)

(4)

(11)

5

(5)

(59)

(141)


















Income Tax (Expense) Benefit

(44)

(9)

(17)

(16)

11

(5)

41

(39)


















Equity (Losses) Earnings Recorded Net of Income Tax

-

-

(1)

12

-

-

-

11


















Earnings Attributable to Noncontrolling Interests

(23)

-

(7)

(8)

-

-

-

(38)


















Earnings (Losses)

$    119

$         98

$               43

$     26

$              6

$             9

$              (19)

$    282




































Three Months Ended December 31, 2012


































(Dollars in millions)

SDG&E

SoCalGas

Sempra South American Utilities

Sempra Mexico

Sempra Renewables

Sempra Natural Gas

Consolidating Adjustments, Parent & Other

Total


















Revenues

$    988

$       954

$             380

$    170

$            19

$          170

$              (13)

$ 2,668


















Cost of Sales and Other Expenses

(665)

(773)

(291)

(112)

(9)

(160)

(22)

(2,032)


















Depreciation & Amortization

(131)

(94)

(14)

(16)

(6)

(24)

(2)

(287)


















Equity Earnings Recorded Before Income Tax

-

-

-

-

1

54

1

56


















Other Income (Expense), Net

10

3

6

(1)

(1)

6

12

35


















Income (Loss) Before Interest & Tax (1)

202

90

81

41

4

46

(24)

440


















Net Interest Expense (2)

(50)

(17)

(6)

(1)

(6)

(12)

(40)

(132)


















Income Tax (Expense) Benefit

(39)

26

(21)

(12)

16

(14)

33

(11)


















Equity Earnings Recorded Net of Income Tax

-

-

-

7

-

-

-

7


















(Earnings) Losses Attributable to Noncontrolling Interests

(3)

-

(8)

-

-

(1)

1

(11)


















Earnings (Losses)

$    110

$         99

$               46

$     35

$            14

$           19

$              (30)

$    293


















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

SEMPRA ENERGY

Table F (Unaudited)


















Statement of Operations Data by Segment


































Year Ended December 31, 2013


































(Dollars in millions)

SDG&E

SoCalGas

Sempra South American Utilities

Sempra Mexico

Sempra Renewables

Sempra Natural Gas

Consolidating Adjustments, Parent & Other

Total


















Revenues

$ 4,066

$    3,736

$          1,495

$    675

$            82

$          908

$             (405)

$  10,557


















Cost of Sales and Other Expenses

(2,590)

(2,814)

(1,169)

(452)

(52)

(818)

335

(7,560)


















Depreciation & Amortization

(494)

(383)

(59)

(63)

(21)

(81)

(12)

(1,113)


















Loss From Plant Closure

(200)

-

-

-

-

-

-

(200)


















Gain on Sale of Assets

-

-

-

-

40

74

-

114


















Equity (Losses) Earnings Recorded Before Income Tax

-

-

-

-

(12)

47

(4)

31


















Other Income, Net

40

11

9

24

9

3

44

140


















Income (Loss) Before Interest & Tax (1)

822

550

276

184

46

133

(42)

1,969


















Net Interest Expense (2)

(203)

(70)

(13)

(15)

(3)

(28)

(215)

(547)


















Income Tax (Expense) Benefit

(191)

(116)

(67)

(60)

19

(40)

89

(366)


















Equity (Losses) Earnings Recorded Net of Income Tax

-

-

(15)

39

-

-

-

24


















Earnings Attributable to Noncontrolling Interests

(24)

-

(28)

(26)

-

(1)

-

(79)


















Earnings (Losses)

$    404

$       364

$             153

$    122

$            62

$           64

$             (168)

$   1,001




































Year Ended December 31, 2012


































(Dollars in millions)

SDG&E

SoCalGas

Sempra South American Utilities

Sempra Mexico

Sempra Renewables

Sempra Natural Gas

Consolidating Adjustments, Parent & Other

Total


















Revenues

$ 3,694

$    3,282

$          1,441

$    605

$            68

$          931

$             (374)

$   9,647


















Cost of Sales and Other Expenses

(2,395)

(2,500)

(1,111)

(359)

(37)

(889)

286

(7,005)


















Depreciation & Amortization

(490)

(362)

(56)

(62)

(16)

(93)

(11)

(1,090)


















Gain on Sale of Assets

-

-

-

-

7

-

-

7


















Equity Losses Recorded Before Income Tax

-

-

-

-

(6)

(312)

 (3)

(1)

(319)


















Other Income (Expense), Net

69

17

13

16

(2)

9

50

172


















Income (Loss) Before Interest & Tax (1)

878

437

287

200

14

(354)

(50)

1,412


















Net Interest Expense (2)

(178)

(69)

(17)

(6)

(16)

(43)

(146)

(475)


















Income Tax (Expense) Benefit

(190)

(79)

(78)

(73)

63

157

141

(59)


















Equity Earnings Recorded Net of Income Tax

-

-

-

36

-

-

-

36


















Earnings Attributable to Noncontrolling Interests

(26)

-

(28)

-

-

(1)

-

(55)


















Earnings (Losses)

$    484

$       289

$             164

$    157

$            61

$         (241)

$              (55)

$      859


















(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 Rockies Express Pipeline LLC impairment charge of $400 million, partially offset by a $41 million Kinder Morgan receipt.

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SOURCE Sempra Energy

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