SOURCE: Sempra Energy

February 25, 2010 09:00 ET

Sempra Energy Earnings Increase in 2009

SAN DIEGO, CA--(Marketwire - February 25, 2010) - Sempra Energy (NYSE: SRE) today reported 2009 earnings of $1.12 billion, or $4.52 per diluted share, compared with 2008 earnings of $1.11 billion, or $4.43 per diluted share.

Sempra Energy's 2009 earnings per diluted share increased 8 percent over the prior year, excluding the impact of an asset write-off of $64 million, or $0.26 per diluted share, at Sempra Pipelines & Storage in the second quarter.

In the fourth quarter 2009, Sempra Energy's earnings were $288 million, or $1.16 per diluted share, compared with earnings of $319 million, or $1.30 per diluted share in the same quarter of 2008.

"We posted solid financial results in 2009," said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. "Our five-year build-out of natural gas infrastructure projects sets the foundation for the next decade of growth. Together with our California utilities, these projects should enable us to benefit from stable cash flows well into the future."

SUBSIDIARY OPERATING RESULTS

San Diego Gas & Electric

Earnings for San Diego Gas & Electric (SDG&E) rose to $344 million in 2009 from $339 million in 2008. SDG&E's fourth-quarter 2009 earnings were $67 million, compared with $81 million in the prior-year's fourth quarter, due primarily to lower regulatory incentive awards in 2009.

Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in 2009 increased to $273 million from $244 million in 2008. In the fourth quarter 2009, SoCalGas earned $75 million, compared with $54 million in the prior-year's fourth quarter. The fourth-quarter improvement was due primarily to higher authorized operating margins and lower litigation expenses in 2009.

RBS Sempra Commodities

Sempra Energy generated earnings of $345 million in 2009 from its commodity operations, on par with 2008 earnings. Sempra Energy formed its commodities joint venture, RBS Sempra Commodities, with The Royal Bank of Scotland (RBS) at the beginning of the second quarter of 2008. Fourth quarter 2009 earnings were $71 million, compared with $164 million in the fourth quarter 2008, due primarily to reduced margins in natural gas and other product segments.

On Feb. 16, Sempra Energy and RBS agreed to sell certain assets of RBS Sempra Commodities to J.P. Morgan Chase & Co. for an expected $1.7 billion. Sempra Energy's share of the proceeds is expected to be approximately $940 million. The assets being sold include the joint venture's global oil and metals businesses, along with its European power and natural gas businesses. The transaction, which is subject to regulatory approvals, is expected to be completed in the second quarter 2010.

In November 2009, RBS announced its intention to divest its share of the joint venture, following a directive from the European Commission to dispose of certain assets.

Sempra Generation

Sempra Generation's 2009 earnings were $162 million, compared with $222 million in 2008. In the fourth quarter 2009, Sempra Generation's earnings were $43 million, compared with $60 million in the fourth quarter 2008, primarily due to higher foreign-tax benefits in 2008.

In December 2009, Sempra Generation and BP Wind Energy began commercial operations of a 200-megawatt wind farm in Indiana. The two companies are equal partners in the project.

Also in December 2009, the California Public Utilities Commission approved Pacific Gas & Electric's 20-year contract with Sempra Generation to purchase 48 megawatts of solar power from Sempra Generation's Copper Mountain Solar facility under development in Nevada. Last month, Sempra Generation started construction on the plant, which is expected to be completed in late 2010.

Sempra Pipelines & Storage

Sempra Pipelines & Storage earned $101 million in 2009, compared with $106 million in 2008. Sempra Pipelines & Storage's fourth-quarter earnings rose to $37 million in 2009 from $22 million in 2008, due primarily to improvement in the company's Mexican operations and South American investments. Sempra Pipelines & Storage's 2009 results included a second-quarter charge of $64 million for the write-off of certain aFssets at Liberty Gas Storage in Louisiana.

Yesterday, Sempra Pipelines & Storage announced an agreement to acquire the Mexican pipeline and gas infrastructure assets of El Paso Corp. for $300 million ($260 million, net of cash and debt). The transaction includes acquisition of El Paso's natural gas pipeline and compression assets in the Mexican border state of Sonora, as well as a 50-percent ownership in a joint venture with PEMEX (Mexico's state-owned oil company). The joint venture operates natural gas pipelines and a propane system in northern Mexico. The transaction, which should be completed in the second quarter 2010, is expected to add $0.05 per diluted share in earnings for 2010 and $0.10 per diluted share in earnings for 2011.

Sempra LNG

In 2009, Sempra LNG had earnings of $16 million, compared with losses of $46 million in 2008. In the fourth quarter 2009, Sempra LNG had earnings of $35 million, compared with losses of $13 million in the prior-year's fourth quarter. The improvement in the fourth quarter 2009 was due primarily to the start-up of marketing and terminal operations. Both of Sempra LNG's liquefied natural gas receipt terminals are now operational.

2010 Outlook

Sempra Energy today confirmed a 2010 earnings-per-share outlook of $4.25 to $4.50.

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 Web site 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 4889875.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2009 revenues of more than $8 billion. The Sempra Energy companies' 13,800 employees serve more than 29 million consumers worldwide.

Complete financial tables, including income-statement information by business unit, are available on Sempra Energy's Web site at http://www.sempra.com/downloads/4Q2009.pdf.

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," "estimates," "may," "would," "could," "should," or similar expressions, or discussions of strategies, plans 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 by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, and other regulatory and governmental bodies in the United States and other countries where the company does business; capital market conditions and inflation, interest and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied 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 reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system without charge at the SEC's Web site, www.sec.gov and on the company's Web site, at www.sempra.com.

Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Sempra Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Sempra Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not regulated by the California Public Utilities Commission.

                              SEMPRA ENERGY
                                  Table A


                  CONSOLIDATED STATEMENTS OF OPERATIONS


                                    Three months ended     Years ended
                                       December 31,        December 31,
                                    ------------------  ------------------
(Dollars in millions, except per
 share amounts)                       2009      2008*     2009      2008*
                                    --------  --------  --------  --------
                                        (unaudited)
REVENUES
Sempra Utilities                    $  1,838  $  1,782  $  6,220  $  7,972
Sempra Global and parent                 618       511     1,886     2,786
                                    --------  --------  --------  --------
    Total revenues                     2,456     2,293     8,106    10,758
                                    --------  --------  --------  --------

EXPENSES AND OTHER INCOME
Sempra Utilities:
    Cost of natural gas                 (533)     (536)   (1,530)   (3,244)
    Cost of electric fuel and
     purchased power                    (164)     (206)     (672)     (900)
Sempra Global and parent:
    Cost of natural gas, electric
     fuel and purchased power           (301)     (318)     (976)   (1,671)
    Other cost of sales                  (28)      (14)      (80)     (182)
Operation and maintenance               (798)     (720)   (2,474)   (2,536)
Depreciation and amortization           (207)     (179)     (775)     (687)
Franchise fees and other taxes           (68)      (82)     (296)     (312)
Gains on sale of assets                    -         -         3       114
Write-off of long-lived assets             -         -      (132)        -
Equity earnings:
    RBS Sempra Commodities LLP            79       241       463       383
    Other                                  9         8        36        37
Other income (expense), net               52      (139)      149      (109)
Interest income                            5         9        21        45
Interest expense                        (110)      (88)     (367)     (253)
                                    --------  --------  --------  --------
Income before income taxes and
 equity earnings of certain
 unconsolidated subsidiaries             392       269     1,476     1,443
Income tax expense                       (95)      (15)     (422)     (438)
Equity earnings, net of income tax         9         6        68        63
                                    --------  --------  --------  --------
Net income                               306       260     1,122     1,068
(Earnings) losses attributable to
 noncontrolling interests                (15)       62         7        55
Preferred dividends of subsidiaries       (3)       (3)      (10)      (10)
                                    --------  --------  --------  --------
Earnings                            $    288  $    319  $  1,119  $  1,113
                                    ========  ========  ========  ========

Basic earnings per common share     $   1.18  $   1.32  $   4.60  $   4.50
                                    ========  ========  ========  ========
Weighted-average number of shares
 outstanding, basic (thousands)      244,923   241,660   243,339   247,387
                                    ========  ========  ========  ========

Diluted earnings per common share   $   1.16  $   1.30  $   4.52  $   4.43
                                    ========  ========  ========  ========
Weighted-average number of shares
 outstanding, diluted (thousands)    248,749   244,531   247,384   251,159
                                    ========  ========  ========  ========
Dividends declared per share of
 common stock                       $   0.39  $   0.35  $   1.56  $   1.37
                                    ========  ========  ========  ========

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).




                              SEMPRA ENERGY
                                  Table B


CONSOLIDATED BALANCE SHEETS

                                                December 31,  December 31,
(Dollars in millions)                               2009          2008*
                                                ------------- -------------

Assets
Current assets:
   Cash and cash equivalents                    $         110 $         331
   Short-term investments                                   -           176
   Restricted cash                                         35            27
   Accounts receivable, net                             1,130           981
   Due from unconsolidated affiliates                      41             4
   Income taxes receivable                                221           195
   Deferred income taxes                                   10            31
   Inventories                                            197           320
   Regulatory assets                                       54           121
   Fixed-price contracts and other derivatives             77           160
   Insurance receivable related to wildfire
    litigation                                            273             -
   Other                                                  147           130
                                                ------------- -------------
       Total current assets                             2,295         2,476
                                                ------------- -------------

Investments and other assets:
   Regulatory assets arising from fixed-price
    contracts and other derivatives                       241           264
   Regulatory assets arising from pension and
    other postretirement benefit obligations              959         1,188
   Other regulatory assets                                603           534
   Nuclear decommissioning trusts                         678           577
   Investment in RBS Sempra Commodities LLP             2,172         2,082
   Other investments                                    2,151         1,166
   Goodwill and other intangible assets                   524           539
   Sundry                                                 608           709
                                                ------------- -------------
       Total investments and other assets               7,936         7,059
                                                ------------- -------------
Property, plant and equipment, net                     18,281        16,865
                                                ------------- -------------
Total assets                                    $      28,512 $      26,400
                                                ============= =============

Liabilities and Equity
Current liabilities:
   Short-term debt                              $         618 $         503
   Accounts payable                                       693           856
   Due to unconsolidated affiliates                        29            38
   Dividends and interest payable                         190           156
   Accrued compensation and benefits                      264           280
   Regulatory balancing accounts, net                     382           335
   Current portion of long-term debt                      573           410
   Fixed-price contracts and other derivatives             95           180
   Customer deposits                                      145           170
   Reserve for wildfire litigation                        270             -
   Other                                                  629           684
                                                ------------- -------------
       Total current liabilities                        3,888         3,612
                                                ------------- -------------
Long-term debt                                          7,460         6,544
                                                ------------- -------------

Deferred credits and other liabilities:
   Due to unconsolidated affiliate                          2           102
   Customer advances for construction                     146           155
   Pension and other postretirement benefit
    obligations, net of plan assets                     1,252         1,487
   Deferred income taxes                                1,318           946
   Deferred investment tax credits                         54            57
   Regulatory liabilities arising from removal
    obligations                                         2,557         2,430
   Asset retirement obligations                         1,277         1,159
   Other regulatory liabilities                           181           219
   Fixed-price contracts and other derivatives            312           392
   Deferred credits and other                             735           909
                                                ------------- -------------
       Total deferred credits and other
        liabilities                                     7,834         7,856
                                                ------------- -------------
Preferred stock of subsidiary                              79            79
                                                ------------- -------------
Equity:
   Total Sempra Energy shareholders' equity             9,007         7,969
   Preferred stock of subsidiaries                        100           100
   Other noncontrolling interests                         144           240
                                                ------------- -------------
       Total equity                                     9,251         8,309
                                                ------------- -------------
Total liabilities and equity                    $      28,512 $      26,400
                                                ============= =============

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).




                              SEMPRA ENERGY
                                  Table C


CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                                                            Years ended
                                                           December 31,
                                                        ------------------
(Dollars in millions)                                     2009      2008*
                                                        --------  --------

Cash Flows from Operating Activities:
Net income                                              $  1,122  $  1,068
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization                              775       687
  Gains on sale of assets                                     (3)     (114)
  Deferred income taxes and investment tax credits           295       324
  Equity earnings                                           (567)     (483)
  Write-off of long-lived assets                             132         -
  Fixed-price contracts and other derivatives                (30)       46
  Other                                                      (45)      150
Net change in other working capital components              (256)     (483)
Distributions from RBS Sempra Commodities LLP                407        85
Changes in other assets                                      139       (15)
Changes in other liabilities                                 (94)      (74)
                                                        --------  --------
  Net cash provided by operating activities                1,875     1,191
                                                        --------  --------

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment            (1,912)   (2,061)
Proceeds from sale of assets from continuing operations
  net of cash sold                                           179     2,295
Expenditures for investments and acquisition of
 businesses, net of cash acquired                           (939)   (2,675)
Distributions from investments                                23        34
Purchases of nuclear decommissioning and other trust
 assets                                                     (267)     (485)
Proceeds from sales by nuclear decommissioning and
 other trusts                                                230       469
Decrease in notes receivable from unconsolidated
 affiliate                                                   100        60
Purchase of bonds issued by unconsolidated affiliate         (50)        -
Other                                                        (36)      (23)
                                                        --------  --------
  Net cash used in investing activities                   (2,672)   (2,386)
                                                        --------  --------

Cash Flows from Financing Activities:
Common dividends paid                                       (341)     (339)
Preferred dividends paid by subsidiaries                     (10)      (10)
Issuances of common stock                                     73        18
Repurchases of common stock                                  (22)   (1,018)
Issuances of debt (maturities greater than 90 days)        2,151     1,706
Payments on debt (maturities greater than 90 days)          (435)      (19)
(Decrease) increase in short-term debt, net                 (659)      564
Payments on notes payable to unconsolidated affiliate       (100)      (60)
Purchase of noncontrolling interest                          (94)        -
Other                                                         13        16
                                                        --------  --------
  Net cash provided by financing activities                  576       858
                                                        --------  --------

Decrease in cash and cash equivalents                       (221)     (337)
Cash and cash equivalents, January 1                         331       668
                                                        --------  --------
Cash and cash equivalents, December 31                  $    110  $    331
                                                        ========  ========

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).




                              SEMPRA ENERGY
                                  Table D


      BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS



                                      Three months
                                         ended           Years ended
                                      December 31,       December 31,
                                  ----------------     ----------------
(Dollars in millions)               2009    2008         2009     2008
                                  -------- -------     -------  -------
(unaudited)
Earnings (Losses)
San Diego Gas & Electric          $     67 $    81     $   344  $   339
Southern California Gas                 75      54         273      244
Sempra Commodities(1)                   71     164         345      345
Sempra Generation                       43      60         162      222
Sempra Pipelines & Storage              37      22         101      106
Sempra LNG                              35     (13)         16      (46)
Parent & Other                         (40)    (49)       (122)     (97)
                                  -------- -------     -------  -------
Earnings                          $    288 $   319     $ 1,119  $ 1,113
                                  ======== =======     =======  =======

(1) With the exception of the first quarter of 2008, results for 2009 and
    2008 include the company's portion of RBS Sempra Commodities' joint
    venture earnings and interest, income taxes, cost allocations and
    other items associated with the joint venture. Results for the first
    quarter of 2008 include 100% of the commodities-marketing businesses.
    Both 2009 and 2008 include the results of Sempra Rockies Marketing.



                                    Three months
                                        ended            Years ended
                                    December 31,         December 31,
                                  ----------------     ----------------
(Dollars in millions)               2009     2008        2009     2008
                                  -------- -------     -------  -------
                                    (unaudited)
Capital Expenditures and
 Investments(1)
  San Diego Gas & Electric        $    322 $   430 (2) $ 1,107  $ 1,372 (2)
  Southern California Gas              144     104         480      454
  Sempra Commodities                     -       -           -       37
  Sempra Generation                     69      44         276       59
  Sempra Pipelines & Storage(3)        227     564         950      909
  Sempra LNG                             5      55         235      365
  Parent & Other                         1     229 (2)       5      655 (2)
  Eliminations(2)                        -    (411)       (152)    (715)
                                  -------- -------     -------  -------
  Consolidated Capital
   Expenditures and Investments   $    768 $ 1,015     $ 2,901  $ 3,136
                                  ======== =======     =======  =======

(1) Investments do not include the $1.6 billion contribution to RBS Sempra
    Commodities in the second quarter of 2008.

(2) During the year ended December 31, 2008, SDG&E and Parent & Other
    purchased $488 and $640, respectively, of SDG&E's industrial
    development bonds, including purchases and sales between the entities.
    As their cash flow needs changed, SDG&E purchased $184 of the bonds
    from Parent & Other during the three months ended December 31, 2008
    and Parent & Other purchased $227 of the bonds from SDG&E in the
    same period. In the second quarter of 2009, SDG&E purchased $152 of
    the bonds from Parent & Other to facilitate their remarketing.

(3) Amounts for the three months and the year ended December 31, 2008
    include $495 for the acquisition of EnergySouth, which is net of cash
    acquired.

                              SEMPRA ENERGY
                                  Table E



OTHER OPERATING STATISTICS (Unaudited)



                                          Three months
                                              ended         Years ended
                                          December 31,      December 31,
                                        ----------------- -----------------
SEMPRA UTILITIES                          2009     2008     2009     2008
                                        -------- -------- -------- --------

Revenues (Dollars in millions)
  SDG&E (excludes intercompany sales)   $    778 $    801 $  2,908 $  3,240
  SoCalGas (excludes intercompany
   sales)                               $  1,060 $    981 $  3,312 $  4,732

Gas Sales (Bcf)                              108      103      380      391
Transportation (Bcf)                         133      156      554      601
                                        -------- -------- -------- --------
Total Deliveries (Bcf)                       241      259      934      992
                                        -------- -------- -------- --------

Total Gas Customers (Thousands)                              6,607    6,575

Electric Sales (Millions of kWhs)          4,214    4,386   16,982   17,398
Direct Access (Millions of kWhs)             829      939    3,119    3,235
                                        -------- -------- -------- --------
Total Deliveries (Millions of kWhs)        5,043    5,325   20,101   20,633
                                        -------- -------- -------- --------

Total Electric Customers (Thousands)                         1,379    1,372


SEMPRA GENERATION
                                        ======== ======== ======== ========
Power Sold (Millions of kWhs)              5,742    5,903   22,268   22,728


SEMPRA PIPELINES & STORAGE
(Represents 100% of the distribution operations of these subsidiaries,
although subsidiaries in Argentina, Chile and Peru are not 100% owned by
Sempra Energy. These subsidiaries are not consolidated within Sempra Energy
and the related investments are accounted for under the equity method).

Natural Gas Sales (Bcf)
  Argentina                                   81       78      330      332
  Mexico                                       5        5       19       19
  Mobile Gas(1)                                8        9       32        9
Natural Gas Customers (Thousands)
  Argentina                                                  1,710    1,670
  Mexico                                                        91       95
  Mobile Gas                                                    92       93
Electric Sales (Millions of kWhs)
  Peru                                     1,409    1,352    5,560    5,415
  Chile                                      565      620    2,402    2,417
Electric Customers (Thousands)
  Peru                                                         863      837
  Chile                                                        576      562

(1) Mobile Gas was acquired in October 2008.





                              SEMPRA ENERGY
                            Table E (Continued)


SEMPRA COMMODITIES
The following information for the Sempra Commodities segment includes
information related to RBS Sempra Commodities LLP.  RBS Sempra Commodities
LLP acquired the commodity-marketing businesses of Sempra Energy on
April 1, 2008.  For the three months and the year ended December 31, 2009,
the Sempra Commodities segment is composed primarily of the company's
equity interest in RBS Sempra Commodities LLP, but also includes the
results of Sempra Rockies Marketing.  The margin and financial data below
represent the total results of RBS Sempra Commodities LLP as calculated
under International Financial Reporting Standards (IFRS).

RBS Sempra Commodities LLP
--------------------------
Operating Statistics
(in millions of US dollars)


                       Three             Three
                      months            months             Year
RBS Sempra            ended             ended             ended
 Commodities LLP -   December          December          December
 Joint Venture          31,               31,               31,
 level margin*         2009              2008              2009
                      -------           -------           -------

Geographical:
  North America       $   123           $   373           $   695
  Europe/Asia             156               340               473
                      -------           -------           -------
    Total             $   279           $   713           $ 1,168
                      =======           =======           =======

Product Line:
  Oil - Crude &
   Products           $   100           $   243           $   317
  Power                    62               129               257
  Natural Gas             (16)              171               232
  Metals                   88               149               309
  Other                    45                21                53
                      -------           -------           -------
    Total             $   279           $   713           $ 1,168
                      =======           =======           =======

Financial Information
(in millions of US
 dollars)

                        Three months      Three months
                           ended             ended           Year ended
RBS Sempra              December 31,      December 31,      December 31,
 Commodities LLP            2009              2008              2009
                      ----------------  ----------------  ----------------
                       Joint             Joint              Joint
                      Venture  Sempra   Venture  Sempra   Venture  Sempra
                       Total   Share**   Total   Share**   Total   Share**
  Fee income and
   trading revenue,
   net of selling
   costs              $   279           $   713           $ 1,168
  Operating and other
   expenses              (251)             (339)             (761)
                      -------           -------           -------
   Joint Venture
    distributable
    income            $    28           $   374           $   407
                      =======           =======           =======


  Preferred return on
   capital            $    84  $    60  $   103  $    61  $   330  $   240
  1st allocation -
   70% Sempra / 30%
   RBS***                 (56)     (36)     271      192       77       60
  2nd allocation -
   30% Sempra / 70%
   RBS                      -        -        -        -        -        -
                      -------  -------  -------  -------  -------  -------
    Distributable
     income           $    28  $    24  $   374  $   253  $   407  $   300
                      =======  =======  =======  =======  =======  =======

Sempra Commodities
 Earnings
------------------
                               Three             Three
                               months            months             Year
                                ended             ended             ended
                               December          December          December
(in millions of US               31,               31,                31,
 dollars)                       2009              2008               2009
                               -------           -------           -------
  Sempra share of
   distributable
   income - IFRS
   basis                       $    24           $   253           $   300
  U.S. GAAP
   conversion impact                55               (12)              163
                               -------           -------           -------
  Sempra equity
   earnings before
   income taxes -
   U.S. GAAP basis                  79               241               463
  Income tax expense                (5)              (79)             (111)
                               -------           -------           -------
  Sempra equity
   earnings from RBS
   Sempra Commodities
   LLP                              74               162               352
  Other segment
   activity                         (3)                2                (7)
                               -------           -------           -------
    Sempra Commodities
     earnings                  $    71           $   164           $   345
                               =======           =======           =======

*   Margin consists of operating revenues less cost of sales (primarily
    transportation and storage costs) reduced by certain transaction-
    related execution costs (primarily brokerage and other fees) and net
    interest income/expense.
**  After a 15% preferred return to Sempra and then a 15% return to RBS,
    Sempra receives 70% of the next $500 million and 30% of any
    remaining income on an annual basis.
*** Includes certain transition costs specifically allocated to Sempra and
    RBS.

Contact Information

  • Media Contact:
    Doug Kline
    Sempra Energy
    (877) 866-2066
    www.sempra.com

    Financial Contact:
    Glen Donovan
    Sempra Energy
    (877) 736-7727
    Email Contact