Sempra Energy Announces Increased Second-Quarter 2011 Earnings

- Excluding $277 Million Gain on South American Acquisition:

* Second-Quarter Earnings per Share Rise 9 Percent

* Company Reaffirms 2011 Earnings-per-Share Guidance of $4 to $4.30

- Generation Unit Halfway Toward 2016 Target of 1,000 MW in Renewable Power Contracts

Aug 09, 2011, 09:00 ET from Sempra Energy

SAN DIEGO, Aug. 9, 2011 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported second-quarter 2011 earnings of $511 million, or $2.12 per diluted share, up from earnings of $222 million, or $0.89 per diluted share, in the second quarter 2010.

(Logo:  http://photos.prnewswire.com/prnh/20110108/SEMPRAENERGYLOGO)

This year's second-quarter earnings included a gain of $277 million, or $1.15 per diluted share, reflecting the write-up in the value of the company's original investments in Chile and Peru as a result of the acquisition of a controlling interest in those utilities earlier this year.  

Excluding this gain, Sempra Energy's diluted earnings per share in the second quarter 2011 increased approximately 9 percent to $0.97 over second-quarter 2010 earnings per share of $0.89.

Sempra Energy's earnings through the first six months of 2011 were $769 million, or $3.19 per diluted share, compared with $328 million, or $1.31 per diluted share, in 2010.   First-quarter 2010 earnings included an after-tax charge of $96 million, or $0.38 per diluted share, related to a litigation settlement.

"Through the first half of the year, we are performing well across the board and are on track to meet our 2011 earnings guidance," said Debra L. Reed, chief executive officer of Sempra Energy.  "Our utility and pipeline acquisitions are providing strong contributions to our earnings.  We also are making excellent progress on our major California utility projects and our build-out of contracted renewable energy infrastructure."

As previously announced, Reed was elected chief executive officer of Sempra Energy June 27, succeeding Donald E. Felsinger.  Felsinger will continue to serve as executive chairman.

Sempra Energy today reaffirmed its 2011 earnings-per-share guidance of $4 to $4.30, excluding the $1.15 related to the company's acquisition of controlling interests in the Chile and Peru utilities (earnings-per-share guidance of $5.15 to $5.45, on a GAAP basis).

SUBSIDIARY OPERATING RESULTS

San Diego Gas & Electric

In the second quarter 2011, earnings for San Diego Gas & Electric (SDG&E) were $71 million, compared with $75 million in the second quarter 2010.

For the first six months of 2011, SDG&E earned $160 million, up from $158 million in the same period last year.

Southern California Gas Co.

Southern California Gas Co. (SoCalGas) had second-quarter earnings of $59 million in 2011, compared with $69 million in the prior-year's second quarter, due primarily to lower natural gas storage revenues, and higher employee benefit costs and other expenses.  

SoCalGas' earnings in the first half of 2011 were $127 million, compared with $134 million in the first half of 2010.

Sempra Pipelines & Storage

In the second quarter 2011, Sempra Pipelines & Storage earned $337 million, up from $39 million in the prior year's quarter.  Second-quarter 2011 results included a non-cash gain of $277 million from the write-up in the value of the original investments in Sempra Pipelines & Storage's electric utilities in Chile and Peru and $14 million in higher earnings primarily from increased ownership in these companies.  

For the first six months of 2011, Sempra Pipelines & Storage's earnings increased to $391 million from $77 million in the same period last year, due primarily to the gain on the Chile and Peru utility acquisitions and higher earnings from those utilities, as well as from a Mexican pipeline acquired in the second quarter 2010.

Sempra LNG

Sempra LNG's earnings in the second quarter 2011 rose to $18 million from $13 million in last year's second quarter, due primarily to payments by customers for contracted cargoes that were not delivered.

In the first half of 2011, Sempra LNG earned $51 million, compared with $45 million in the first half of 2010.

Sempra Generation

Sempra Generation's second-quarter 2011 earnings were $50 million, compared with $52 million in last year's second quarter.  

During the first six months of 2011, Sempra Generation had earnings of $94 million, up from $1 million during the same period last year.   In the first quarter 2010, Sempra Generation took a charge of $84 million related to a litigation settlement.

Last week, Sempra Generation announced a 25-year contract with Pacific Gas & Electric to supply renewable power from a 150-megawatt (MW) expansion of Sempra Generation's Copper Mountain Solar complex in Nevada.  The contract is subject to approval by the California Public Utilities Commission.

Additionally, in July, Sempra Generation and BP Wind Energy commenced operations of the 250-MW Cedar Creek 2 Wind Farm in Colorado.  The renewable energy from the facility has been sold under a long-term power-purchase agreement to the Public Service Company of Colorado.

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 7671494.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2010 revenues of $9 billion.  The Sempra Energy companies' nearly 16,000 employees serve about 26 million consumers worldwide.

NON-GAAP FINANCIAL MEASURES

The 9-percent increase in second-quarter 2011 earnings per share and the 2011 earnings-per-share guidance, excluding the gain on the Chile and Peru utility acquisitions, are non-GAAP financial measures.  Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the second-quarter financial tables.

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," "will," "would," "could," "should," "potential," "target," "depends," or similar expressions, or discussions of guidance, 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, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, 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 and inflation, interest and exchange rates; 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; 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 free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.

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

SEMPRA ENERGY

Table A

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended

Six months ended

June 30,

June 30,

(Dollars in millions, except per share amounts)

2011

2010

2011

2010

(unaudited)

REVENUES

Utilities

$   1,922

$   1,550

$   3,868

$   3,541

Energy-related businesses

500

458

988

1,001

   Total revenues

2,422

2,008

4,856

4,542

EXPENSES AND OTHER INCOME

Utilities:

   Cost of natural gas

(403)

(381)

(1,045)

(1,184)

   Cost of electric fuel and purchased power

(397)

(129)

(568)

(277)

Energy-related businesses:

   Cost of natural gas, electric fuel and purchased power

(212)

(235)

(442)

(528)

   Other cost of sales

(32)

(20)

(55)

(45)

Litigation expense

(6)

1

(13)

(167)

Other operation and maintenance

(667)

(616)

(1,299)

(1,192)

Depreciation and amortization

(248)

(215)

(479)

(425)

Franchise fees and other taxes

(80)

(77)

(175)

(167)

Equity earnings (losses), before income tax

7

(8)

8

7

Remeasurement of equity method investments

277

-

277

-

Other income, net

31

8

74

16

Interest income

12

4

15

8

Interest expense

(118)

(103)

(226)

(212)

Income before income taxes and equity earnings of certain

   unconsolidated subsidiaries

586

237

928

376

Income tax expense

(92)

(59)

(201)

(117)

Equity earnings, net of income tax

8

27

39

46

Net income

502

205

766

305

Losses attributable to noncontrolling interests

12

20

8

28

Preferred dividends of subsidiaries

(3)

(3)

(5)

(5)

Earnings

$      511

$      222

$      769

$      328

Basic earnings per common share

$     2.14

$     0.90

$     3.21

$     1.33

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

239,415

246,784

239,769

246,435

Diluted earnings per common share

$     2.12

$     0.89

$     3.19

$     1.31

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

240,761

249,727

241,154

249,835

Dividends declared per share of common stock

$     0.48

$     0.39

$     0.96

$     0.78

RECONCILIATION OF SEMPRA ENERGY EARNINGS TO SEMPRA ENERGY EARNINGS EXCLUDING GAIN

FROM REMEASUREMENT OF EQUITY METHOD INVESTMENTS AND LITIGATION SETTLEMENT (Unaudited)

Sempra Energy Earnings, Earnings Per Share and 2011 earnings per share guidance excluding a $277 million gain from the remeasurement of equity method investments in Chilquinta Energia and Luz del Sur in the second quarter of 2011 and a $96 million charge for a litigation settlement in the first quarter of 2010 are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). Statistics using these amounts, including percentage changes from period to period, also result in non-GAAP 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 Sempra Energy's business operations from 2011 to 2010 and to future periods. Accordingly, 2011 guidance of $4 to $4.30 per diluted share excludes the second quarter gain of $277 million, or $1.15 per diluted share, based on shares outstanding through June 30, 2011. 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 June 30,

Six months ended June 30,

(Dollars in millions, except per share amounts)

2011

2010

2011

2010

Sempra Energy Earnings (GAAP)

$      511

$      222

$      769

$      328

Less: Remeasurement Gain in 2011

(277)

-

(277)

-

Add: Litigation Settlement Charge in 2010

-

-

-

96

Sempra Energy Earnings Excluding Gain and Litigation Settlement Charge

$      234

$      222

$      492

$      424

Diluted earnings per common share:

Sempra Energy Earnings (GAAP)

$     2.12

(1)

$     0.89

$     3.19

(1)

$     1.31

Sempra Energy Earnings Excluding Gain and Litigation Settlement Charge

$     0.97

(2)

$     0.89

$     2.04

(2)

$     1.69

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

240,761

249,727

241,154

249,835

(1) Percentage increases from second quarter and year-to-date 2010 earnings per share were 138% and 144%, respectively.

(2) Percentage increases from second quarter and year-to-date 2010 earnings per share were 9% and 21%, respectively.

SEMPRA ENERGY

Table B

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,

December 31,

(Dollars in millions)

2011

2010(1)

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$         392

$             912

Restricted cash

188

131

Accounts receivable

1,176

1,032

Due from unconsolidated affiliates

-

34

Income taxes receivable

243

248

Deferred income taxes

-

75

Inventories

211

258

Regulatory assets

69

90

Fixed-price contracts and other derivatives

87

81

Settlement receivable related to wildfire litigation

-

300

Other

185

192

Total current assets

2,551

3,353

Investments and other assets:

Restricted cash

2

27

Regulatory assets arising from pension and other postretirement

   benefit obligations

868

869

Regulatory assets arising from wildfire litigation costs

397

364

Other regulatory assets

948

934

Nuclear decommissioning trusts

808

769

Investment in RBS Sempra Commodities LLP

439

787

Other investments

1,513

2,164

Goodwill

1,059

87

Intangible assets

450

453

Sundry

645

600

Total investments and other assets

7,129

7,054

Property, plant and equipment, net

22,156

19,876

Total assets

$    31,836

$        30,283

Liabilities and Equity

Current liabilities:

Short-term debt

$         453

$             158

Accounts payable

915

864

Due to unconsolidated affiliates

-

36

Deferred income taxes

31

-

Dividends and interest payable

217

188

Accrued compensation and benefits

269

311

Regulatory balancing accounts, net

277

241

Current portion of long-term debt

144

349

Fixed-price contracts and other derivatives

85

106

Customer deposits

135

129

Reserve for wildfire litigation

422

639

Other

627

765

Total current liabilities

3,575

3,786

Long-term debt

9,648

8,980

Deferred credits and other liabilities:

Customer advances for construction

139

154

Pension and other postretirement benefit obligations, net of plan assets

1,106

1,105

Deferred income taxes

1,826

1,561

Deferred investment tax credits

48

50

Regulatory liabilities arising from removal obligations

2,692

2,630

Asset retirement obligations

1,490

1,449

Other regulatory liabilities

115

138

Fixed-price contracts and other derivatives

279

290

Deferred credits and other

867

823

Total deferred credits and other liabilities

8,562

8,200

Contingently redeemable preferred stock of subsidiary

79

79

Equity:

Total Sempra Energy shareholders' equity

9,579

9,027

Preferred stock of subsidiaries

20

100

Other noncontrolling interests

373

111

Total equity

9,972

9,238

Total liabilities and equity

$    31,836

$        30,283

(1)

Derived from audited financial statements.

SEMPRA ENERGY

Table C

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended June 30,

(Dollars in millions)

2011

2010

(unaudited)

Cash Flows from Operating Activities:

Net income

$   766

$   305

Adjustments to reconcile net income to net cash provided

 by operating activities:

Depreciation and amortization

479

425

Deferred income taxes and investment tax credits

147

96

Equity earnings

(47)

(53)

Remeasurement of equity method investments

(277)

-

Fixed-price contracts and other derivatives

(2)

14

Other

(23)

(6)

Net change in other working capital components

53

294

Distributions from RBS Sempra Commodities LLP

53

198

Changes in other assets

2

53

Changes in other liabilities

(12)

(19)

Net cash provided by operating activities

1,139

1,307

Cash Flows from Investing Activities:

Expenditures for property, plant and equipment

(1,225)

(839)

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

(682)

(370)

Distributions from RBS Sempra Commodities LLP

276

-

Distributions from other investments

29

36

Purchases of nuclear decommissioning and other trust assets

(97)

(159)

Proceeds from sales by nuclear decommissioning and other trusts

94

159

Decrease in restricted cash

388

45

Increase in restricted cash

(420)

(40)

Other

(16)

1

Net cash used in investing activities

(1,653)

(1,167)

Cash Flows from Financing Activities:

Common dividends paid

(210)

(172)

Redemption of subsidiary preferred stock

(80)

-

Preferred dividends paid by subsidiaries

(5)

(5)

Issuances of common stock

20

22

Repurchases of common stock

(18)

(2)

Issuances of debt (maturities greater than 90 days)

870

270

Payments on debt (maturities greater than 90 days)

(270)

(710)

(Decrease) increase in short-term debt, net

(319)

534

Other

10

1

Net cash used in financing activities

(2)

(62)

Effect of exchange rate changes on cash and cash equivalents

(4)

-

(Decrease) increase in cash and cash equivalents

(520)

78

Cash and cash equivalents, January 1

912

110

Cash and cash equivalents, June 30

$   392

$   188

SEMPRA ENERGY

Table D

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

Three months ended

Six months ended

June 30,

June 30,

(Dollars in millions)

2011

2010

2011

2010

   (unaudited)

Earnings (Losses)

San Diego Gas & Electric

$      71

$   75

$    160

$    158

Southern California Gas

59

69

127

134

Sempra Generation

50

52

94

1

Sempra Pipelines & Storage

337

39

391

77

Sempra LNG

18

13

51

45

Parent & Other

(24)

(26)

(54)

(87)

Earnings

$    511

$ 222

$    769

$    328

Three months ended  

Six months ended

June 30,

June 30,

(Dollars in millions)

2011

2010

2011

2010

   (unaudited)

Capital Expenditures and Investments

San Diego Gas & Electric

$    366

$ 232

$    714

$    522

Southern California Gas

157

102

325

216

Sempra Generation

24

1

76

5

Sempra Pipelines & Storage

745

350

785

460

Sempra LNG

3

2

6

4

Parent & Other

1

2

1

2

Consolidated Capital Expenditures and Investments

$ 1,296

$ 689

$ 1,907

$ 1,209

SEMPRA ENERGY

Table E

OTHER OPERATING STATISTICS (Unaudited)

Three months ended June 30,

Six months ended June 30,

UTILITIES

2011

2010

2011

2010

Sempra Utilities - SDG&E and SoCalGas

Gas Sales (bcf)(1)

85

85

223

217

Transportation (bcf)(1)

112

113

235

230

Total Deliveries (bcf)(1)

197

198

458

447

Total Gas Customers (Thousands)

6,644

6,622

Electric Sales (Millions of kWhs)(1)

3,825

3,763

7,970

7,818

Direct Access (Millions of kWhs)

782

764

1,568

1,484

Total Deliveries (Millions of kWhs)(1)

4,607

4,527

9,538

9,302

Total Electric Customers (Thousands)

1,390

1,383

Sempra Pipelines & Storage - Utilities (2)

Natural Gas Sales (bcf)

Argentina

87

83

157

147

Mexico

5

5

11

11

Mobile Gas

9

8

19

18

Natural Gas Customers (Thousands)

Argentina

1,781

1,731

Mexico

89

90

Mobile Gas

90

90

Electric Sales (Millions of kWhs)

Peru

1,570

1,483

3,164

2,962

Chile

604

570

1,284

1,170

Electric Customers (Thousands)

Peru

907

877

Chile

603

586

(1) Excludes intercompany sales

(2) Represents 100% of the distribution operations of the subsidiary, although the subsidiary in Argentina is not consolidated within Sempra Energy and the related investments are accounted for under the equity method.  The subsidiaries in Peru and Chile were also accounted for under the equity method until April 6, 2011, when they became consolidated entities upon our acquisition of additional ownership interests.

ENERGY - RELATED BUSINESSES

Sempra Generation

Power Sold (Millions of kWhs)

3,518

5,553

7,641

10,505

SEMPRA ENERGY

Table F (Unaudited)

Statement of Operations Data by Business Unit

Three Months Ended June 30, 2011

(Dollars in millions)

SDG&E

SoCalGas

Generation

Pipelines & Storage

LNG

Consolidating Adjustments, Parent & Other

Total

Revenues

$  697

$      876

$        268

$         445

$ 159

$              (23)

$ 2,422

Cost of Sales and Other Expenses

(477)

(690)

(184)

(335)

(106)

1

(1,791)

Litigation Expense

(2)

(1)

(1)

-

(2)

-

(6)

Depreciation & Amortization

(105)

(82)

(18)

(26)

(12)

(5)

(248)

Equity (Losses) Earnings Recorded Before Income Tax

-

-

(1)

10

-

(2)

7

Other Income, Net

13

3

1

277

 (1)

1

13

308

Income (Loss) Before Interest & Tax (2)

126

106

65

371

40

(16)

692

Net Interest Expense(3)

(32)

(19)

(3)

(12)

(10)

(33)

(109)

Income Tax (Expense) Benefit

(42)

(28)

(12)

(22)

(12)

24

(92)

Equity Earnings Recorded Net of Income Tax

-

-

-

8

-

-

8

Losses (Earnings) Attributable to Noncontrolling Interests

19

-

-

(8)

-

1

12

Earnings (Losses)

$    71

$        59

$          50

$         337

$   18

$              (24)

$    511

Three Months Ended June 30, 2010

(Dollars in millions)

SDG&E

SoCalGas

Generation

Pipelines & Storage

LNG

Consolidating Adjustments, Parent & Other

Total

Revenues

$  692

$      834

$        268

$           75

$ 166

$              (27)

$ 2,008

Cost of Sales and Other Expenses

(458)

(638)

(197)

(54)

(123)

12

(1,458)

Litigation Adjustment (Expense)

7

(1)

(2)

(1)

(1)

(1)

1

Depreciation & Amortization

(95)

(77)

(16)

(10)

(13)

(4)

(215)

Equity (Losses) Earnings Recorded Before Income Tax

-

-

(1)

12

-

(19)

(8)

Other (Expense) Income, Net

(16)

2

6

(1)

-

17

8

Income (Loss) Before Interest & Tax (2)

130

120

58

21

29

(22)

336

Net Interest Expense (3)

(32)

(17)

-

(2)

(12)

(39)

(102)

Income Tax (Expense) Benefit

(44)

(34)

(6)

(7)

(4)

36

(59)

Equity Earnings Recorded Net of Income Tax

-

-

-

27

-

-

27

Losses (Earnings) Attributable to Noncontrolling Interests

21

-

-

-

-

(1)

20

Earnings (Losses)

$    75

$        69

$          52

$           39

$   13

$              (26)

$    222

(1) Includes gain of $277 million related to remeasurement of equity method investments.

(2) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

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

SEMPRA ENERGY

Table F (Unaudited)

Statement of Operations Data by Business Unit

Six Months Ended June 30, 2011

(Dollars in millions)

SDG&E

SoCalGas

Generation

Pipelines & Storage

LNG

Consolidating Adjustments, Parent & Other

Total

Revenues

$ 1,537

$   1,932

$        537

$         554

$ 345

$              (49)

$ 4,856

Cost of Sales and Other Expenses

(1,048)

(1,546)

(371)

(404)

(225)

10

(3,584)

Litigation Expense

(5)

(1)

(2)

-

(4)

(1)

(13)

Depreciation & Amortization

(208)

(163)

(37)

(39)

(25)

(7)

(479)

Equity Earnings (Losses) Recorded Before Income Tax

-

-

-

19

-

(11)

8

Other Income, Net

29

6

1

277

 (1)

3

35

351

Income (Loss) Before Interest & Tax (2)

305

228

128

407

94

(23)

1,139

Net Interest Expense(3)

(69)

(36)

-

(18)

(20)

(73)

(216)

Income Tax (Expense) Benefit

(91)

(65)

(34)

(29)

(23)

41

(201)

Equity Earnings Recorded Net of Income Tax

-

-

-

39

-

-

39

Losses (Earnings) Attributable to Noncontrolling Interests

15

-

-

(8)

-

1

8

Earnings (Losses)

$    160

$      127

$          94

$         391

$   51

$              (54)

$    769

Six Months Ended June 30, 2010

(Dollars in millions)

SDG&E

SoCalGas

Generation

Pipelines & Storage

LNG

Consolidating Adjustments, Parent & Other

Total

Revenues

$ 1,434

$   2,016

$        586

$         185

$ 371

$              (50)

$ 4,542

Cost of Sales and Other Expenses

(963)

(1,611)

(450)

(132)

(259)

22

(3,393)

Litigation Expense

-

(1)

(141)

(1)

(2)

(22)

(167)

Depreciation & Amortization

(187)

(152)

(31)

(21)

(25)

(9)

(425)

Equity (Losses) Earnings Recorded Before Income Tax

-

-

(1)

22

-

(14)

7

Other (Expense) Income, Net

(16)

6

8

(2)

-

20

16

Income (Loss) Before Interest & Tax (2)

268

258

(29)

51

85

(53)

580

Net Interest Expense (3)

(64)

(34)

(2)

(7)

(24)

(78)

(209)

Income Tax (Expense) Benefit

(75)

(90)

32

(13)

(16)

45

(117)

Equity Earnings Recorded Net of Income Tax

-

-

-

46

-

-

46

Losses (Earnings) Attributable to Noncontrolling Interests

29

-

-

-

-

(1)

28

Earnings (Losses)

$    158

$      134

$            1

$           77

$   45

$              (87)

$    328

(1) Includes gain of $277 million related to remeasurement of equity method investments.

(2) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

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

SOURCE Sempra Energy



RELATED LINKS

http://www.sempra.com