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8-K - FORM 8-K - SAN DIEGO GAS & ELECTRIC COsdge08062013.htm
EX-99 - EXHIBIT 99.2 - SAN DIEGO GAS & ELECTRIC COex992.htm


Exhibit 99.1



NEWS RELEASE



Media Contact:

Doug Kline


Sempra Energy


(877) 340-8875


www.sempra.com


 

Financial Contact:

Victor Vilaplana


Sempra Energy


(877) 736-7727


investor@sempra.com



SEMPRA ENERGY REPORTS HIGHER

SECOND-QUARTER 2013 EARNINGS

 

·

California Utilities Receive Final Rate Case Decision

 

·

$119 Million Charge Recorded on Previously Announced Closure of SONGS

 

·

Company Sets Updated 2013 Earnings-Per-Share Guidance of $4.30 to $4.60, Excluding $119 Million SONGS Charge

 

·

IEnova to Begin Los Ramones I Pipeline Project



SAN DIEGO, Aug. 6, 2013 – Sempra Energy (NYSE: SRE) today reported second-quarter 2013 earnings of $245 million, or $0.98 per diluted share, compared with second-quarter 2012 earnings of $62 million, or $0.25 per diluted share.

On May 9, the California Public Utilities Commission (CPUC) issued a final General Rate Case decision for San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) that included a revenue increase for the full year 2012 and the first quarter 2013.  Due to the rate case decision, second-quarter 2013 earnings included:

·

$77 million, or $0.31 per diluted share, for the 2012 operations of SDG&E and SoCalGas; and

·

$29 million, or $0.11 per diluted share, for the first-quarter 2013 operations of SDG&E and SoCalGas.

Sempra Energy’s second-quarter 2013 earnings also included a $119 million, or $0.48 per diluted share, charge related to Southern California Edison’s decision in June to permanently retire the San Onofre Nuclear Generating Station (SONGS).  SDG&E owns a 20-percent stake in SONGS.  Last year’s second-quarter earnings included a $179 million, or $0.73 per diluted share, non-cash charge related to a write-down on the company’s investment in the Rockies Express Pipeline.  Excluding the charges in both years and the benefits from the General Rate Case related to 2012 and first-quarter 2013 operations, Sempra Energy’s adjusted earnings increased to $258 million, or $1.04 per diluted share, in the second quarter 2013, from $241 million, or $0.98 per diluted share, in last year’s second quarter.

 “We are pleased with our solid second-quarter operating results,” said Debra L. Reed, chairman and CEO of Sempra Energy.  “With our California utilities’ rate case now behind us and the strong performance across all of our businesses, we remain on-track to meet our updated earnings guidance for the year.”  

Sempra Energy’s earnings for the first six months of 2013 were $423 million, or $1.70 per diluted share, up from $298 million, or $1.21 per diluted share.  Excluding the charges in both years and the $77 million benefit from the General Rate Case related to 2012 operations, Sempra Energy’s adjusted earnings for the first six months of 2013 were $465 million, or $1.87 per diluted share, compared with $477 million, or $1.94 per diluted share, in the first half of 2012.   Adjusted earnings in the first six months of 2013 were lower due primarily to the dilutive effect and first-quarter tax impact of the IEnova initial public offering that occurred in March.


CALIFORNIA UTILITIES

San Diego Gas & Electric

Earnings for SDG&E were $65 million in the second quarter 2013, compared with $95 million in last year’s second quarter.  The decrease was due primarily to the $119 million charge taken in the second quarter 2013 associated with the announced closure of SONGS.  This decrease was partially offset by:

·

a $52 million benefit from the General Rate Case for 2012 operations;  

·

a $17 million benefit from the General Rate Case for first-quarter 2013 operations; and

·

higher base margin and a reduction in 2013 tax expense.  

Excluding the charge related to SONGS and the benefits from the General Rate Case for 2012 and first-quarter 2013 operations, SDG&E’s adjusted second-quarter 2013 earnings were $115 million.

SDG&E’s earnings for the first six months of 2013 were $156 million, compared with $200 million in the same period last year.  Excluding the charge related to SONGS and the benefit from the General Rate Case related to 2012 operations, SDG&E’s adjusted earnings for the first six months of 2013 were $223 million.


Southern California Gas Co.

Second-quarter earnings for SoCalGas rose to $118 million in 2013 from $53 million in 2012.  The increase in the quarter was primarily due to:

·

a $25 million benefit from the General Rate Case for 2012 operations;   

·

a $12 million benefit from the General Rate Case for first-quarter 2013 operations;  and

·

higher base margin, higher earnings created by the full recovery of pipeline integrity program costs and increased income-tax benefits.

Excluding the benefits from the General Rate Case for 2012 and first-quarter 2013 operations, SoCalGas’ adjusted second-quarter 2013 earnings were $81 million.

In the first half of 2013, SoCalGas’ earnings increased to $164 million from $119 million in the first half of 2012.  Excluding the benefit from the General Rate Case related to 2012 operations, SoCalGas’ adjusted earnings in the first six months of 2013 were $139 million.


SEMPRA INTERNATIONAL

Sempra South American Utilities

In the second quarter 2013, Sempra South American Utilities had earnings of $34 million, compared with $38 million in the second quarter 2012.   

For the first six months of 2013, earnings for Sempra South American Utilities were $71 million, compared with $78 million in the first half of 2012.

In June, Sempra International completed the sale of its stake in two Argentine natural gas utility holding companies for $13 million in cash.  The company took after-tax write-downs of the Argentine assets of $7 million and $4 million, respectively, in the first and second quarters of 2013.


Sempra Mexico

Sempra Mexico recorded second-quarter earnings of $26 million in 2013, compared with $47 million in 2012.  Earnings in the most recent quarter were lower, due primarily to higher income-tax expense, reduced ownership in IEnova and reduced operating earnings because of planned maintenance at the Mexicali power plant.

For the first six months of 2013, Sempra Mexico had earnings of $57 million, compared with $80 million during the first six months of 2012.

As part of an ongoing joint venture, IEnova recently signed a contract to jointly develop with PEMEX the first phase of the Los Ramones natural gas pipeline project.  Construction on the 70-mile leg of the pipeline, which originates at the U.S.-Mexico border in south Texas, is expected to begin in the fourth quarter 2013 and be completed in the second half of next year.


SEMPRA U.S. GAS & POWER

Sempra Renewables

Second-quarter earnings for Sempra Renewables were $15 million in 2013, compared with $24 million in 2012, due primarily to deferred tax benefits in 2012 from solar assets put into service last year.

In the first six months of 2013, earnings for Sempra Renewables were $19 million, compared with $34 million during the same period last year.


Sempra Natural Gas

Sempra Natural Gas had earnings of $9 million in the second quarter 2013, compared with a loss of $193 million in the second quarter 2012, which included a $179 million impairment charge on the Rockies Express Pipeline.  The increase in 2013 was due primarily to improved earnings from liquefied natural gas and gas storage operations because of changes in natural gas prices.

For the first six months of 2013, Sempra Natural Gas had earnings of $62 million, compared with a loss of $192 million in the first half of 2012, which included last year’s impairment charge on the Rockies Express Pipeline.  Earnings in the first six months of 2013 included a $44 million first-quarter gain on the sale of half of the Mesquite Power plant.


EARNINGS GUIDANCE

Earlier this year, Sempra Energy set 2013 earnings-per-share guidance of $4.30 to $4.60, which included the anticipated retroactive impacts from the California utilities’ General Rate Case.   Today, the company said its updated 2013 guidance of $4.30 to $4.60 continues to include the $0.31-per-share benefit for the retroactive impacts from the General Rate Case, but excludes the $0.48-per-share charge related to the announced closure of SONGS.  


INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT 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 9732661.


NON-GAAP FINANCIAL MEASURES

 

Non-GAAP financial measures include Sempra Energy’s adjusted earnings and adjusted earnings per share for 2013 and 2012, as well as Sempra Energy’s updated earnings-per-share guidance for 2013.  Adjusted earnings for 2013 for SDG&E and SoCalGas also are non-GAAP measures.  Additional information regarding these non-GAAP measures is in the appendix on Table A of the second-quarter financial tables.

 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,” “intends,” “plans,” “forecasts,” “estimates,” “may,” “will,” “would,” ”could,” “should,” “potential,” “target,” “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, Federal Energy Regulatory Commission, U.S. Department of Energy, 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 does business; capital market conditions, including the availability of credit and the liquidity of investments; 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; 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; 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 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 cyber security 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.  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.

We caution you not to 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 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 June 30,

 

Six months ended June 30,

 

(Dollars in millions, except per share amounts)

2013

 

2012

 

2013

 

2012

 

 

(unaudited)

 

REVENUES

 

 

 

 

 

 

 

 

Utilities

$         2,332

 

$         1,838

 

$        4,666

 

$        3,929

 

Energy-related businesses

319

 

251

 

635

 

543

 

    Total revenues

2,651

 

2,089

 

5,301

 

4,472

 

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

 

Utilities:

 

 

 

 

 

 

 

 

    Cost of natural gas

(365)

 

(221)

 

(921)

 

(652)

 

    Cost of electric fuel and purchased power

(477)

 

(349)

 

(924)

 

(737)

 

Energy-related businesses:

 

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(94)

 

(81)

 

(205)

 

(210)

 

    Other cost of sales

(49)

 

(41)

 

(97)

 

(74)

 

Operation and maintenance

(740)

 

(727)

 

(1,464)

 

(1,398)

 

Depreciation and amortization

(247)

 

(266)

 

(542)

 

(523)

 

Franchise fees and other taxes

(81)

 

(79)

 

(187)

 

(175)

 

Loss from plant closure

(200)

 

-

 

(200)

 

-

 

Gain on sale of assets

-

 

7

 

74

 

7

 

Equity earnings (losses), before income tax

8

 

(293)

 

18

 

(281)

 

Other income, net

26

 

18

 

63

 

93

 

Interest income

4

 

4

 

10

 

9

 

Interest expense

(138)

 

(113)

 

(276)

 

(226)

 

Income (losses) before income taxes and equity earnings

 

 

 

 

 

 

 

 

    of certain unconsolidated subsidiaries

298

 

(52)

 

650

 

305

 

Income tax (expense) benefit

(32)

 

118

 

(210)

 

1

 

Equity earnings, net of income tax

1

 

8

 

5

 

19

 

Net income

267

 

74

 

445

 

325

 

Earnings attributable to noncontrolling interests

(21)

 

(11)

 

(19)

 

(24)

 

Preferred dividends of subsidiaries

(1)

 

(1)

 

(3)

 

(3)

 

Earnings

$           245

 

$             62

 

$           423

 

$           298

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$          1.00

 

$          0.26

 

$          1.74

 

$          1.24

 

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

243,603

 

241,141

 

243,449

 

240,853

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$          0.98

 

$          0.25

 

$          1.70

 

$          1.21

 

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

248,515

 

246,260

 

248,279

 

245,766

 

 

 

 

 

 

 

 

 

 

Dividends declared per share of common stock

$          0.63

 

$          0.60

 

$          1.26

 

$          1.20

 











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 CHARGE IN 2012 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share excluding 1) in the three months ended June 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 and $29 million retroactive impact of the 2012 GRC for the full-year 2012 and for the first quarter of 2013, respectively; 2) in the six months ended June 30, 2013, the $119 million loss from plant closure and $77 million retroactive impact of the 2012 GRC for the full-year 2012; and 3) in the three months and six months ended June 30, 2012, a $179 million impairment charge 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 updated 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

 

Six months ended

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

(Dollars in millions, except per share amounts)

2013

 

2012

 

2013

 

2012

 

 

 

 

Sempra Energy GAAP Earnings

$      245

(1)

$        62

 

$      423

 

$      298

 

 

 

 

Add: Loss from plant closure

119

 

-

 

119

 

-

 

 

 

 

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

(77)

 

-

 

(77)

 

-

 

 

 

 

Less: Retroactive impact of 2012 GRC for first quarter of 2013

(29)

 

-

 

-

 

-

 

 

 

 

Add: Impairment charge in 2012

-

 

179

 

-

 

179

 

 

 

 

Sempra Energy Adjusted Earnings

$      258

(2)

$      241

 

$      465

 

$      477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

Sempra Energy GAAP Earnings

$     0.98

 

$     0.25

 

$     1.70

 

$     1.21

 

 

 

 

Sempra Energy Adjusted Earnings

$     1.04

 

$     0.98

 

$     1.87

 

$     1.94

 

 

 

 

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

248,515

 

246,260

 

248,279

 

245,766

 

 

 

 

(1) Percentage increase from second quarter 2012 earnings was 295%.

 

 

 

 

 

 

 

 

 

 

 

(2) Percentage increase from second quarter 2012 earnings was 7%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 1) in the three months ended June 30, 2013, a $119 million loss from plant closure resulting from the early retirement of SONGS and $52 million and $17 million retroactive impact of the 2012 GRC for the full-year 2012 and for the first quarter of 2013, respectively; and 2) in the six months ended June 30, 2013, the $119 million loss from plant closure and $52 million retroactive impact of the 2012 GRC for the full-year 2012 are non-GAAP financial measures. SoCalGas Adjusted Earnings excluding 1) in the three months ended June 30, 2013, $25 million and $12 million retroactive impact of the 2012 GRC for the full-year 2012 and for the first quarter of 2013, respectively; and 2) in the six months ended June 30, 2013, $25 million retroactive impact of the 2012 GRC for the full-year 2012 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

 

Six months ended

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

(Dollars in millions)

2013

 

2012

 

2013

 

2012

 

 

 

 

SDG&E GAAP Earnings

$        65

 

$        95

 

$      156

 

$      200

 

 

 

 

Add: Loss from plant closure

119

 

-

 

119

 

-

 

 

 

 

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

(52)

 

-

 

(52)

 

-

 

 

 

 

Less: Retroactive impact of 2012 GRC for first quarter of 2013

(17)

 

-

 

-

 

-

 

 

 

 

SDG&E Adjusted Earnings

$      115

 

$        95

 

$      223

 

$      200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SoCalGas GAAP Earnings

$      118

 

$        53

 

$      164

 

$      119

 

 

 

 

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

(25)

 

-

 

(25)

 

-

 

 

 

 

Less: Retroactive impact of 2012 GRC for first quarter of 2013

(12)

 

-

 

-

 

-

 

 

 

 

SoCalGas Adjusted Earnings

$        81

 

$        53

 

$      139

 

$      119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 









SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Dollars in millions)

2013

 

2012(1)

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$               954

 

$               475

 

Restricted cash

89

 

46

 

Accounts receivable

1,161

 

1,299

 

Income taxes receivable

129

 

56

 

Deferred income taxes

76

 

148

 

Inventories

357

 

408

 

Regulatory balancing accounts – undercollected

325

 

395

 

Regulatory assets

190

 

62

 

Fixed-price contracts and other derivatives

81

 

95

 

U.S. Treasury grants receivable

164

 

258

 

Asset held for sale, power plant

-

 

296

 

Other

135

 

157

 

 

 

Total current assets

3,661

 

3,695

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

Restricted cash

22

 

22

 

Regulatory assets arising from pension and other postretirement    benefit obligations

1,170

 

1,151

 

Regulatory assets arising from wildfire litigation costs

352

 

364

 

Other regulatory assets

1,872

 

1,227

 

Nuclear decommissioning trusts

938

 

908

 

Investments

1,466

 

1,516

 

Goodwill

1,042

 

1,111

 

Other intangible assets

431

 

436

 

Sundry

895

 

878

 

 

 

Total investments and other assets

8,188

 

7,613

Property, plant and equipment, net

25,171

 

25,191

Total assets

$           37,020

 

$           36,499

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

$               510

 

$               546

 

Accounts payable

1,073

 

1,110

 

Dividends and interest payable

271

 

266

 

Accrued compensation and benefits

235

 

337

 

Regulatory balancing accounts – overcollected

290

 

141

 

Current portion of long-term debt

1,540

 

725

 

Fixed-price contracts and other derivatives

71

 

77

 

Customer deposits

142

 

143

 

Reserve for wildfire litigation

182

 

305

 

Other

411

 

608

 

 

 

Total current liabilities

4,725

 

4,258

Long-term debt

10,530

 

11,621

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

Customer advances for construction

140

 

144

 

Pension and other postretirement benefit obligations, net of plan assets

1,471

 

1,456

 

Deferred income taxes

2,389

 

2,100

 

Deferred investment tax credits

44

 

46

 

Regulatory liabilities arising from removal obligations

2,842

 

2,720

 

Asset retirement obligations

1,949

 

2,033

 

Fixed-price contracts and other derivatives

237

 

252

 

Deferred credits and other

1,066

 

1,107

 

 

 

Total deferred credits and other liabilities

10,138

 

9,858

Contingently redeemable preferred stock of subsidiary

79

 

79

Equity:

 

 

 

 

Total Sempra Energy shareholders’ equity

10,704

 

10,282

 

Preferred stock of subsidiary

20

 

20

 

Other noncontrolling interests

824

 

381

 

 

 

Total equity

11,548

 

10,683

Total liabilities and equity

$           37,020

 

$           36,499

 

 

 

 

 

 

 

(1)

Derived from audited financial statements.






 

 

 

 

 

 

SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Six months ended
June 30,

(Dollars in millions)

 

2013

 

2012

 

 

 

(unaudited)

Cash Flows from Operating Activities

 

 

 

 

Net income

 $

445

  $  

325

Adjustments to reconcile net income to net cash provided

 

 

 

 

  by operating activities:

 

 

 

 

 

Depreciation and amortization

 

542

 

523

 

Deferred income taxes and investment tax credits

 

251

 

(53)

 

Gain on sale of assets

 

(74)

 

(7)

 

Loss from plant closure

 

200

 

-

 

Equity (earnings) losses

 

(23)

 

262

 

Fixed-price contracts and other derivatives

 

(28)

 

1

 

Other

 

1

 

8

Net change in other working capital components

 

20

 

28

Changes in other assets

 

(237)

 

13

Changes in other liabilities

 

8

 

52

 

Net cash provided by operating activities

 

1,105

 

1,152

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

Expenditures for property, plant and equipment

 

(1,130)

 

(1,517)

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

 

(5)

 

(303)

Proceeds from sale of assets and investment

 

384

 

9

Proceeds from U.S. Treasury grants

 

74

 

-

Distributions from investments

 

95

 

31

Purchases of nuclear decommissioning and other trust assets

 

(330)

 

(327)

Proceeds from sales by nuclear decommissioning and other trusts

 

326

 

329

Decrease in restricted cash

 

143

 

68

Increase in restricted cash

 

(186)

 

(61)

Other

 

2

 

(10)

 

Net cash used in investing activities

 

(627)

 

(1,781)

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

Common dividends paid

 

(299)

 

(260)

Preferred dividends paid by subsidiaries

 

(3)

 

(3)

Issuances of common stock

 

22

 

45

Repurchases of common stock

 

(45)

 

(16)

Issuances of debt (maturities greater than 90 days)

 

894

 

1,167

Payments on debt (maturities greater than 90 days)

 

(1,134)

 

(559)

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

 

574

 

-

(Decrease) increase in short-term debt, net

 

(10)

 

241

Distributions to noncontrolling interests

 

(13)

 

(10)

Other

 

18

 

(11)

 

Net cash provided by financing activities

 

4

 

594

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(3)

 

4

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

479

 

(31)

Cash and cash equivalents, January 1

 

475

 

252

Cash and cash equivalents, June 30

 $

954

  $  

221

 

 

 

 

 

 






 

 

 

 

 

 

 

 

 

 

 

SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

 

June 30,

 

June 30,

 

(Dollars in millions)

2013

 

2012

 

2013

 

2012

 

 

 

 

    (unaudited)

Earnings (Losses)

 

 

 

 

 

California Utilities:

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$          65

 

$          95

 

$        156

 

$        200

 

Southern California Gas

118

 

53

 

164

 

119

 

Sempra International:

 

 

 

 

 

 

 

 

Sempra South American Utilities

34

 

38

 

71

 

78

 

Sempra Mexico

26

 

47

 

57

 

80

 

Sempra U.S. Gas & Power:

 

 

 

 

 

 

 

 

Sempra Renewables

15

 

24

 

19

 

34

 

Sempra Natural Gas

9

 

(193)

 

62

 

(192)

 

Parent and other

(22)

 

(2)

 

(106)

 

(21)

 

Earnings

$        245

 

$          62

 

$        423

 

$        298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Three months ended  

 

 Six months ended  

 

 

 

 

June 30,

 

June 30,

 

(Dollars in millions)

2013

 

2012

 

2013

 

2012

 

 

 

 

    (unaudited)

Capital Expenditures and Investments

 

 

 

 

 

 

 

 

California Utilities:

 

 

 

 

 

 

 

 

San Diego Gas & Electric

$        209

 

$        331

 

$        446

 

$        729

 

Southern California Gas

161

 

151

 

340

 

316

 

Sempra International:

 

 

 

 

 

 

 

 

Sempra South American Utilities

44

 

39

 

66

 

59

 

Sempra Mexico

100

 

4

 

161

 

9

 

Sempra U.S. Gas & Power:

 

 

 

 

 

 

 

 

Sempra Renewables

55

 

343

 

66

 

594

 

Sempra Natural Gas

29

 

90

 

55

 

112

 

Parent and other

1

 

-

 

1

 

1

 

Consolidated Capital Expenditures and Investments

$        599

 

$        958

 

$      1,135

 

$      1,820

 

 

 

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

Six months ended June 30,

UTILITIES

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

California Utilities - SDG&E and SoCalGas

Gas Sales (bcf)(1)

 

        74

 

        83

 

      214

 

    217

Transportation (bcf)(1)

 

      162

 

      174

 

      330

 

    345

Total Deliveries (bcf)(1)

 

      236

 

      257

 

      544

 

    562

Total Gas Customers (Thousands)

 

 

 

 

 

    6,692

 

 6,665

 

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)(1)

 

    3,792

 

    3,827

 

    7,816

 

 7,916

Direct Access (Millions of kWhs)

 

      759

 

      820

 

    1,594

 

 1,572

Total Deliveries (Millions of kWhs)(1)

 

    4,551

 

    4,647

 

    9,410

 

 9,488

Total Electric Customers (Thousands)

 

 

 

 

 

    1,405

 

 1,397

 

 

 

 

 

 

 

 

 

 

 

Other Utilities

 

 

 

 

 

 

 

 

Natural Gas Sales (bcf)

 

 

 

 

 

 

 

 

 

Mexico

 

          6

 

          6

 

        12

 

      12

 

Mobile Gas

 

        10

 

        10

 

        21

 

      22

 

Willmut Gas(2)

 

          1

 

          1

 

          2

 

       1

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

 

Mexico

 

 

 

 

 

        95

 

      91

 

Mobile Gas

 

 

 

 

 

        87

 

      88

 

Willmut Gas(2)

 

 

 

 

 

        19

 

      20

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

 

Peru

 

    1,742

 

    1,669

 

    3,488

 

 3,359

 

Chile

 

      689

 

      638

 

    1,450

 

 1,383

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

 

Peru

 

 

 

 

 

      977

 

    941

 

Chile

 

 

 

 

 

      633

 

    617

 

 

 

 

 

 

 

 

 

 

 

ENERGY-RELATED BUSINESSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra International

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

 

 

 

Sempra Mexico

 

      736

 

      894

 

    1,780

 

 1,972

 

 

 

 

 

 

 

 

 

 

 

Sempra U.S. Gas & Power

 

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

 

 

 

Sempra Renewables(3)

      683

 

      253

 

    1,381

 

    526

 

Sempra Natural Gas(4)

 

      795

 

    1,459

 

    1,927

 

 3,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.