Sempra Energy Reports Increased First-Quarter Earnings on New Business Growth; 2001 Earnings Guidance Raised to $2.50 Per Share

Apr 26, 2001, 01:00 ET from Sempra Energy

    SAN DIEGO, April 26 /PRNewswire/ -- Sempra Energy (NYSE:   SRE) today
 reported earnings for the first quarter of 2001 of $178 million, or $0.88 per
 diluted share, compared with $113 million, or $0.49 per diluted share, for the
 same period of 2000.
     The 58-percent growth in corporate earnings was driven by newer
 subsidiaries that are broadening Sempra Energy's earnings base and extending
 its global reach.  The earnings of the California utility operations, San
 Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas), were
 essentially unchanged from the first quarter of 2000.
     Sempra Energy Trading contributed $86 million to Sempra Energy's net
 income, or 48 percent of Sempra Energy's first-quarter 2001 total.  This
 represents an increase of $68 million over the same period a year ago, driven
 by both increased volatility in energy commodity markets worldwide and higher
 trading volumes.  Based in Stamford, Conn., Sempra Energy Trading is one of
 the fastest growing wholesale commodity traders in the United States,
 marketing natural gas, electricity, crude oil and risk-management products
 worldwide.
     Sempra Energy's first-quarter earnings also benefited from a one-time
 $0.10-per-share gain from the sale of the company's stake in Energy America, a
 retail energy-marketing firm.  The transaction closed Jan. 22, 2001.
     Revenues for Sempra Energy increased 136 percent to $3.3 billion in the
 first quarter, compared with $1.4 billion in the same period of 2000.  About
 three-quarters of the revenue increase was due to higher electricity and
 natural gas costs incurred by SDG&E and SoCalGas.  The remainder was due
 primarily to the doubling of revenues to $570 million by Sempra Energy's
 unregulated businesses, specifically Sempra Energy Solutions and Sempra Energy
 Trading.
     "We are encouraged by the success of our newer energy businesses -- a
 critical part of our strategy to develop diverse and complementary enterprises
 that fuel our earnings growth and increase shareholder returns," said Stephen
 L. Baum, chairman, president and chief executive officer of Sempra Energy.
 "These new directions translate directly into increased shareholder value.
     "Our utilities remain strong and we continue to work with state and
 federal officials to propose solutions to the serious supply-demand imbalance
 and the structural inefficiencies in the California energy market," said Baum.
 "Long-term solutions to these issues are vital to the economic health of
 California and its utilities.  Among other initiatives, we are negotiating
 with the state for the sale of SDG&E's electric-transmission assets.  Although
 we currently have no compelling financial need to sell these assets, we
 believe an agreement could be one among a series of positive steps toward
 restructuring California's energy market and helping Calif. Gov. Gray Davis
 implement his recovery plan for the state."
     To address California's power crisis, Sempra Energy has urged state and
 federal officials to:
 
     -- Expedite the permitting process for new power plant construction;
     -- Increase energy conservation and efficiency statewide through a variety
        of incentives and programs;
     -- Support credit-restoration efforts of the utilities through
        securitization of debts and/or the state purchase of
        electric-transmission assets;
     -- Impose temporary cost-based rates on certain existing power generating
        facilities; and,
     -- Re-impose limits on natural gas transportation rates to California.
 
     Energy Delivery Services
     Net income for SDG&E for the first quarter 2001 was $52 million, unchanged
 from the first quarter 2000.
     Earlier this month, SDG&E signed an amended agreement under which the
 California Department of Water Resources (CDWR) will continue to purchase
 power for all of SDG&E's customers, who are paying 6.5 cents per kilowatt-hour
 (kWh).  Under the agreement, CDWR assumes responsibility for SDG&E's full
 net-short position through 2002.  CDWR is expected to be able to secure power
 at more favorable prices in the wholesale market because it can negotiate
 contracts with a duration of up to 10 years, with better credit terms.
     The effect of the agreement is to limit the growth of SDG&E's regulatory
 balancing account that captures the undercollection of power costs for
 customers.  This account, which totaled $747 million as of March 31, 2001,
 represents the difference between the wholesale electricity costs that SDG&E
 has incurred and the 6.5-cents-per-kWh rate that the utility has been allowed
 to charge its customers.  On April 12, 2001, California law AB 43X took
 effect, extending the 6.5-cent rate cap to include SDG&E's larger commercial
 and industrial customers, retroactive to Feb. 7, 2001.  This law should not
 add to SDG&E's undercollection, since the revenue shortfall it creates will be
 covered by CDWR.  SDG&E does not expect further significant growth in the
 undercollection as long as CDWR continues to purchase power on behalf of all
 the utility's customers.
     "SDG&E is best positioned among California's investor-owned electric
 utilities, operating under a different law that provides for SDG&E to recover
 its prudently incurred undercollected power costs," Baum said.   "Nonetheless,
 SDG&E and SoCalGas are not immune to the problems of California's
 dysfunctional energy marketplace, and we believe strong regulatory and
 legislative actions are required to create a workable energy market.  SDG&E
 has a rate-surcharge request pending with the California Public Utilities
 Commission (CPUC) to help recover its undercollected costs in a more orderly
 and predictable manner."
     SoCalGas net income for the first quarter of 2001 was $51 million,
 essentially unchanged from $50 million in the same period of 2000.
     To help meet record-setting natural gas demand by electric generators in
 Southern California, SoCalGas in the first quarter announced plans to increase
 customer access to natural gas supplies through improvements to its
 transmission and storage system.  The improvements would allow it to deliver
 an additional 5 percent (175 million cubic feet) of natural gas per day into
 its pipeline system by year-end.
 
     Energy Trading
     Sempra Energy Trading's sharp rise in first-quarter net income reflected
 continuing market volatility, higher trading volumes and growing demand for
 the company's structured price risk-management products.
     Sempra Energy Trading continues to strengthen the capacity of its
 operations to deliver sustainable, organic growth.  Since the company was
 acquired in 1997, it has grown from 100 to approximately 350 employees and
 expanded its geographic reach to serve nearly a dozen markets in North
 America, Europe and Asia.
     For the first quarter of 2001, Sempra Energy Trading's physical trading
 volumes of natural gas were 12.2 billion cubic feet per day (bcfd), up
 51 percent from 8.1 bcfd in the first quarter of 2000.  Trading volumes of
 crude oil and liquid products were 2.4 million barrels per day (mbd) in the
 quarter, up 14 percent from 2.1 mbd in the same period a year ago.  The
 company traded 18 billion kWh of electricity in the United States and Europe,
 up 154 percent from 7.1 billion kWh in the first quarter of 2000.
     During the first quarter, Sempra Energy Trading announced the acquisition
 of a 49-percent stake in Risk Capital Management Partners, LLC (RCM), a
 risk-advisory consulting firm based in New York that provides educational and
 advisory services to help clients manage their energy risk and credit risk.
 
     Independent Power Generation
     Sempra Energy Resources, the wholesale power-generation subsidiary of
 Sempra Energy, reported net income of $4 million in the first quarter 2001.
 The subsidiary broke even during the same period last year.
     The increased earnings reflect the contribution of the 480-megawatt (MW)
 El Dorado facility near Las Vegas, which is jointly owned with Reliant Energy
 and had not begun operations in the first quarter of 2000.
     In March and April 2001, Sempra Energy Resources broke ground on two new
 gas-fired power plants in Phoenix and Bakersfield, Calif.  Together, the
 plants will serve Southwestern markets with 1,770 MW of generating capacity
 when completed in 2003.
     Also during the quarter, the company announced plans to build a
 $350-million, 600 MW generating plant near Mexicali, Baja California, Mexico.
 The plant will supply power to the U.S. electric grid via a new 230-kilovolt
 transmission line and is scheduled to begin operations in 2003.
     "Sempra Energy Resources now is beginning to fulfill our expectation that
 it can become an important complement to our diversified energy services
 strategy -- as well as a source of needed power in the Western United States,"
 Baum said.
 
     International Operations
     Sempra Energy International, which is focused on developing utility
 operations in faster growing international markets, recorded net income of
 $5 million in the first quarter 2001, unchanged from the first quarter 2000.
     During the quarter, Sempra Energy International fully subscribed the
 capacity of the 215-mile North Baja Pipeline.  The project, which is scheduled
 for completion in late 2002, is designed to transport more than 500 million
 cubic feet a day of natural gas from Arizona to power plants and industrial
 customers in Baja California, Mexico -- including the Sempra Energy Resources
 Mexicali plant.
 
     Retail Energy Services
     Sempra Energy's retail energy services sector reported net income of
 $12 million compared with a net loss of $6 million in the comparable period
 last year.
     The increase was due to Sempra Energy's sale in January 2001 of its
 72.5-percent ownership interest in Energy America for $56 million.  Excluding
 the one-time gain from the sale, Sempra Energy's retail energy services sector
 reported a net loss of $8 million.
     Sempra Energy's retail energy marketing efforts now are concentrated
 primarily in Sempra Energy Solutions, which offers energy services outsourcing
 and risk-management services to commercial, industrial and institutional
 customers in the United States and in Western Europe.  Sempra Energy Solutions
 is on track with its growth goals, more than tripling its revenues in the
 first-quarter 2001 to $153 million from $46 million in the same quarter last
 year.
 
     Parent Company
     Sempra Energy reported that corporate expenses were $39 million in the
 first quarter 2001, compared with $12 million in the prior year's first
 quarter.  The increase resulted primarily from increases in interest expense
 and tax expense.
     Higher interest expenses resulted from Sempra Energy and its subsidiaries
 borrowing against existing credit lines.
 
     Earnings Outlook
     Sempra Energy now anticipates earnings per share for 2001 of approximately
 $2.50, compared with its previous guidance of $2.20 per share.  The increase
 primarily reflects an expectation of continued robust results from Sempra
 Energy Trading, but does not reflect the effects of a potential sale of SDG&E
 electric-transmission assets to the state.  These results may vary
 significantly -- higher or lower -- depending on market conditions.
 Regulatory and political developments, particularly at the CPUC, Federal
 Energy Regulatory Commission and California State Legislature, could also
 impact earnings positively or negatively.
 
     Internet Broadcast
     Sempra Energy will broadcast a live discussion of its earnings results
 over the Internet today at 1 p.m. Eastern Time with Baum and other Sempra
 Energy officers, including Neal E. Schmale, executive vice president and chief
 financial officer, and Frank H. Ault, vice president and controller. For
 access, log onto the Web site at www.sempra.com.  For those unable to access
 the live Webcast, the teleconference will be available on replay a few hours
 after its conclusion by dialing (719) 457-0820 and entering passcode number
 435372.
 
     Sempra Energy (NYSE:   SRE), based in San Diego, is a Fortune 500 energy
 services holding company with 12,000 employees and revenues of $7 billion.
 Through its eight principal subsidiaries -- Southern California Gas Company,
 San Diego Gas & Electric, Sempra Energy Solutions, Sempra Energy Trading,
 Sempra Energy International, Sempra Energy Resources, Sempra Communications
 and Sempra Energy Financial -- Sempra Energy serves more than 9 million
 customers in the United States, Europe, Canada, Mexico, South America and
 Asia.
 
     This press release contains statements that are not historical fact and
 constitute forward-looking statements within the meaning of the Private
 Securities Legislation Reform Act of 1995.  When we use words like "believes,"
 "expects," "anticipates," "intends," "plans," "estimates," "may," "would,"
 "should" or similar expressions, or when we discuss our strategy or plans, we
 are making forward-looking statements. Forward-looking statements are not
 guarantees of performance.  They involve risks, uncertainties and assumptions.
 Future results may differ materially from those expressed in the
 forward-looking statements.  Forward-looking statements are necessarily based
 upon various assumptions involving judgments with respect to the future and
 other risks, including, among others: national, international, regional and
 local economic, competitive, political, legislative and regulatory conditions
 and developments; actions by the California Public Utilities Commission, the
 California State Legislature, the California Department of Water Resources and
 the Federal Energy Regulatory Commission; capital market conditions, inflation
 rates and interest rates; energy markets, including the timing and extent of
 changes in commodity prices; weather conditions; business, regulatory and
 legal decisions; the pace of deregulation of retail natural gas and
 electricity delivery; the timing and success of business development efforts;
 and other uncertainties, all of which are difficult to predict and many of
 which are beyond the company's control. These risks and uncertainties are
 further discussed in the company's reports filed with the Securities and
 Exchange Commission that are available through the EDGAR system without charge
 at its Web site, www.sec.gov.
 
 
                                 SEMPRA ENERGY
                                                         TABLE A
 
     CONSOLIDATED INCOME STATEMENT (Unaudited)
 
     In Millions of Dollars, Except                 Three Months Ended
      Per Share Amounts                                  March 31
                                                   2001            2000
     Revenues and Other Income
     California utility revenues
       Natural Gas                              $  1,881        $    814
       Electric                                      804             349
     Other operating revenues                        570             279
     Other income                                     64              18
         Total                                     3,319           1,460
 
     Expenses
     Cost of natural gas distributed               1,391             390
     Electric fuel and net purchased power           585             133
     Operating expenses                              736             493
     Depreciation and amortization                   142             134
     Franchise payments and other taxes               58              51
     Preferred dividends / distributions
      by subsidiaries                                  7               5
         Total                                     2,919           1,206
 
     Income Before Interest and Income
     Taxes                                           400             254
     Interest expense                                 90              73
     Income Before Income Taxes                      310             181
     Income taxes                                    132              68
     Net Income                                 $    178        $    113
 
     Weighted Average Shares Outstanding
      (Basic)*                                   202,285         228,291
     Weighted Average Shares Outstanding
      (Diluted)*                                 203,033         228,371
     Net Income Per Share of Common Stock
      (Basic & Diluted)                         $   0.88        $   0.49
     Dividends Declared Per Common Share        $   0.25        $   0.25
 
     * In thousands of shares
 
 
     KEY CONSOLIDATED BALANCE SHEET STATISTICS (Unaudited)
 
     In Millions of Dollars, Except                       March 31
      Per Share Amounts                            2001             2000
 
     Short-Term Debt                            $  1,532        $     --
     Current Portion of Long-Term Debt               280             153
     Long-Term Debt                                3,280           3,349
         Total Debt                                5,092           3,502
     Preferred Stock of Subsidiaries                 204             204
     Mandatorily Redeemable Trust
     Preferred Securities                            200             200
     Common Equity                                 2,629           2,400
 
         Total Capitalization                   $  8,125        $  6,306
 
     Debt to Total Capitalization                     63%             56%
     Book Value per Share                       $  12.97        $  11.92
     Cash and Cash Equivalents                  $  1,438        $    640
 
 
                                 SEMPRA ENERGY
 
                                                         TABLE B
 
     BUSINESS UNIT EARNINGS (Unaudited)
                                           Three Months Ended
                                                  March 31
                                            2001           2000        Change
     Delivery Services:
       SoCal Gas                         $    51        $    50      $     1
       SDG&E                                  52             52           --
         Subtotal                            103            102            1
 
     Energy Trading                           86             18           68
     International                             5              5           --
     Generation                                4             --            4
     Retail Services                          12             (6)          18
     Technology Ventures                      (1)            (2)           1
     Financial                                 8              8           --
     Parent and Other                        (39)           (12)         (27)
       Subtotal                               75             11           64
 
       Total Net Income                  $   178        $   113      $    65
 
       Shares Outstanding (diluted,
        in thousands)                    203,033        228,371
 
       Net Income Per Share of
        Common Stock                     $  0.88        $  0.49      $  0.39
 
 
     FINANCIAL HIGHLIGHTS (Unaudited)
                                                          March 31
                                                    2001             2000
     Capital Expenditures (in millions)
       SoCalGas                                   $   46           $   40
       SDG&E                                      $   68           $   65
     Authorized Return on Common Equity
       SoCalGas                                    11.60%           11.60%
       SDG&E                                       10.60%           10.60%
     Achieved Return on Common Equity
      (Annualized)
       SoCalGas                                    16.42%           15.61%
       SDG&E                                       19.17%           16.76%
       Sempra                                      27.80%           16.78%
 
 
 
                                 SEMPRA ENERGY
                                                         TABLE C
 
     OPERATING STATISTICS (Unaudited)                Three Months Ended
                                                          March 31,
                                                   2001              2000
     Delivery Services (California Utilities)
      Revenues ($ Millions)
        SDG&E                                      1,142               471
        SoCalGas (excludes intercompany sales)     1,543               692
 
      Gas Sales (BCF)                                152               133
      Transportation and Exchange (BCF)              192               138
      Total Deliveries (BCF)                         344               271
      Total Gas Customers (Thousands)              5,830             5,753
 
      Electric Sales (Millions of Kwhs)            4,417             3,794
      Direct Access (Millions of Kwhs)               587               879
      Total Deliveries (Millions of Kwhs)          5,004             4,673
      Total Electric Customers (Thousands)         1,243             1,223
 
     Energy Trading
 
      Operating Margins ($ Millions)
        North America                                217                42
        Europe/Asia                                   32                31
      Natural Gas (Physical, BCF/Day)               12.2               8.1
      Electric (Physical, Billions of Kwhs)         18.0               7.1
      Oil & Liquid Products
       (Physical, Millions Bbls/Day)                 2.4               2.1
 
     International (1)
      Revenues ($ Millions)                          225               197
      Natural Gas Sales (BCF)
        Argentina                                     45                42
        Mexico                                         7                 4
        Chile                                         18                14
      Natural Gas Customers (Thousands)
        Argentina                                  1,306             1,268
        Mexico                                        55                18
        Chile                                         31                20
      Electric Sales (Millions of Kwhs)
        Chile                                        418               395
        Peru                                         933               891
      Electric Customers (Thousands)
        Chile                                        395               386
        Peru                                         694               681
 
     Retail Services
      Revenues ($ Millions)
        Commercial and Industrial                    153                46
 
     (1)  Represents 100 percent of these subsidiaries, although all are less
          than 100 percent owned by Sempra
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X69141924
 
 

SOURCE Sempra Energy
    SAN DIEGO, April 26 /PRNewswire/ -- Sempra Energy (NYSE:   SRE) today
 reported earnings for the first quarter of 2001 of $178 million, or $0.88 per
 diluted share, compared with $113 million, or $0.49 per diluted share, for the
 same period of 2000.
     The 58-percent growth in corporate earnings was driven by newer
 subsidiaries that are broadening Sempra Energy's earnings base and extending
 its global reach.  The earnings of the California utility operations, San
 Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas), were
 essentially unchanged from the first quarter of 2000.
     Sempra Energy Trading contributed $86 million to Sempra Energy's net
 income, or 48 percent of Sempra Energy's first-quarter 2001 total.  This
 represents an increase of $68 million over the same period a year ago, driven
 by both increased volatility in energy commodity markets worldwide and higher
 trading volumes.  Based in Stamford, Conn., Sempra Energy Trading is one of
 the fastest growing wholesale commodity traders in the United States,
 marketing natural gas, electricity, crude oil and risk-management products
 worldwide.
     Sempra Energy's first-quarter earnings also benefited from a one-time
 $0.10-per-share gain from the sale of the company's stake in Energy America, a
 retail energy-marketing firm.  The transaction closed Jan. 22, 2001.
     Revenues for Sempra Energy increased 136 percent to $3.3 billion in the
 first quarter, compared with $1.4 billion in the same period of 2000.  About
 three-quarters of the revenue increase was due to higher electricity and
 natural gas costs incurred by SDG&E and SoCalGas.  The remainder was due
 primarily to the doubling of revenues to $570 million by Sempra Energy's
 unregulated businesses, specifically Sempra Energy Solutions and Sempra Energy
 Trading.
     "We are encouraged by the success of our newer energy businesses -- a
 critical part of our strategy to develop diverse and complementary enterprises
 that fuel our earnings growth and increase shareholder returns," said Stephen
 L. Baum, chairman, president and chief executive officer of Sempra Energy.
 "These new directions translate directly into increased shareholder value.
     "Our utilities remain strong and we continue to work with state and
 federal officials to propose solutions to the serious supply-demand imbalance
 and the structural inefficiencies in the California energy market," said Baum.
 "Long-term solutions to these issues are vital to the economic health of
 California and its utilities.  Among other initiatives, we are negotiating
 with the state for the sale of SDG&E's electric-transmission assets.  Although
 we currently have no compelling financial need to sell these assets, we
 believe an agreement could be one among a series of positive steps toward
 restructuring California's energy market and helping Calif. Gov. Gray Davis
 implement his recovery plan for the state."
     To address California's power crisis, Sempra Energy has urged state and
 federal officials to:
 
     -- Expedite the permitting process for new power plant construction;
     -- Increase energy conservation and efficiency statewide through a variety
        of incentives and programs;
     -- Support credit-restoration efforts of the utilities through
        securitization of debts and/or the state purchase of
        electric-transmission assets;
     -- Impose temporary cost-based rates on certain existing power generating
        facilities; and,
     -- Re-impose limits on natural gas transportation rates to California.
 
     Energy Delivery Services
     Net income for SDG&E for the first quarter 2001 was $52 million, unchanged
 from the first quarter 2000.
     Earlier this month, SDG&E signed an amended agreement under which the
 California Department of Water Resources (CDWR) will continue to purchase
 power for all of SDG&E's customers, who are paying 6.5 cents per kilowatt-hour
 (kWh).  Under the agreement, CDWR assumes responsibility for SDG&E's full
 net-short position through 2002.  CDWR is expected to be able to secure power
 at more favorable prices in the wholesale market because it can negotiate
 contracts with a duration of up to 10 years, with better credit terms.
     The effect of the agreement is to limit the growth of SDG&E's regulatory
 balancing account that captures the undercollection of power costs for
 customers.  This account, which totaled $747 million as of March 31, 2001,
 represents the difference between the wholesale electricity costs that SDG&E
 has incurred and the 6.5-cents-per-kWh rate that the utility has been allowed
 to charge its customers.  On April 12, 2001, California law AB 43X took
 effect, extending the 6.5-cent rate cap to include SDG&E's larger commercial
 and industrial customers, retroactive to Feb. 7, 2001.  This law should not
 add to SDG&E's undercollection, since the revenue shortfall it creates will be
 covered by CDWR.  SDG&E does not expect further significant growth in the
 undercollection as long as CDWR continues to purchase power on behalf of all
 the utility's customers.
     "SDG&E is best positioned among California's investor-owned electric
 utilities, operating under a different law that provides for SDG&E to recover
 its prudently incurred undercollected power costs," Baum said.   "Nonetheless,
 SDG&E and SoCalGas are not immune to the problems of California's
 dysfunctional energy marketplace, and we believe strong regulatory and
 legislative actions are required to create a workable energy market.  SDG&E
 has a rate-surcharge request pending with the California Public Utilities
 Commission (CPUC) to help recover its undercollected costs in a more orderly
 and predictable manner."
     SoCalGas net income for the first quarter of 2001 was $51 million,
 essentially unchanged from $50 million in the same period of 2000.
     To help meet record-setting natural gas demand by electric generators in
 Southern California, SoCalGas in the first quarter announced plans to increase
 customer access to natural gas supplies through improvements to its
 transmission and storage system.  The improvements would allow it to deliver
 an additional 5 percent (175 million cubic feet) of natural gas per day into
 its pipeline system by year-end.
 
     Energy Trading
     Sempra Energy Trading's sharp rise in first-quarter net income reflected
 continuing market volatility, higher trading volumes and growing demand for
 the company's structured price risk-management products.
     Sempra Energy Trading continues to strengthen the capacity of its
 operations to deliver sustainable, organic growth.  Since the company was
 acquired in 1997, it has grown from 100 to approximately 350 employees and
 expanded its geographic reach to serve nearly a dozen markets in North
 America, Europe and Asia.
     For the first quarter of 2001, Sempra Energy Trading's physical trading
 volumes of natural gas were 12.2 billion cubic feet per day (bcfd), up
 51 percent from 8.1 bcfd in the first quarter of 2000.  Trading volumes of
 crude oil and liquid products were 2.4 million barrels per day (mbd) in the
 quarter, up 14 percent from 2.1 mbd in the same period a year ago.  The
 company traded 18 billion kWh of electricity in the United States and Europe,
 up 154 percent from 7.1 billion kWh in the first quarter of 2000.
     During the first quarter, Sempra Energy Trading announced the acquisition
 of a 49-percent stake in Risk Capital Management Partners, LLC (RCM), a
 risk-advisory consulting firm based in New York that provides educational and
 advisory services to help clients manage their energy risk and credit risk.
 
     Independent Power Generation
     Sempra Energy Resources, the wholesale power-generation subsidiary of
 Sempra Energy, reported net income of $4 million in the first quarter 2001.
 The subsidiary broke even during the same period last year.
     The increased earnings reflect the contribution of the 480-megawatt (MW)
 El Dorado facility near Las Vegas, which is jointly owned with Reliant Energy
 and had not begun operations in the first quarter of 2000.
     In March and April 2001, Sempra Energy Resources broke ground on two new
 gas-fired power plants in Phoenix and Bakersfield, Calif.  Together, the
 plants will serve Southwestern markets with 1,770 MW of generating capacity
 when completed in 2003.
     Also during the quarter, the company announced plans to build a
 $350-million, 600 MW generating plant near Mexicali, Baja California, Mexico.
 The plant will supply power to the U.S. electric grid via a new 230-kilovolt
 transmission line and is scheduled to begin operations in 2003.
     "Sempra Energy Resources now is beginning to fulfill our expectation that
 it can become an important complement to our diversified energy services
 strategy -- as well as a source of needed power in the Western United States,"
 Baum said.
 
     International Operations
     Sempra Energy International, which is focused on developing utility
 operations in faster growing international markets, recorded net income of
 $5 million in the first quarter 2001, unchanged from the first quarter 2000.
     During the quarter, Sempra Energy International fully subscribed the
 capacity of the 215-mile North Baja Pipeline.  The project, which is scheduled
 for completion in late 2002, is designed to transport more than 500 million
 cubic feet a day of natural gas from Arizona to power plants and industrial
 customers in Baja California, Mexico -- including the Sempra Energy Resources
 Mexicali plant.
 
     Retail Energy Services
     Sempra Energy's retail energy services sector reported net income of
 $12 million compared with a net loss of $6 million in the comparable period
 last year.
     The increase was due to Sempra Energy's sale in January 2001 of its
 72.5-percent ownership interest in Energy America for $56 million.  Excluding
 the one-time gain from the sale, Sempra Energy's retail energy services sector
 reported a net loss of $8 million.
     Sempra Energy's retail energy marketing efforts now are concentrated
 primarily in Sempra Energy Solutions, which offers energy services outsourcing
 and risk-management services to commercial, industrial and institutional
 customers in the United States and in Western Europe.  Sempra Energy Solutions
 is on track with its growth goals, more than tripling its revenues in the
 first-quarter 2001 to $153 million from $46 million in the same quarter last
 year.
 
     Parent Company
     Sempra Energy reported that corporate expenses were $39 million in the
 first quarter 2001, compared with $12 million in the prior year's first
 quarter.  The increase resulted primarily from increases in interest expense
 and tax expense.
     Higher interest expenses resulted from Sempra Energy and its subsidiaries
 borrowing against existing credit lines.
 
     Earnings Outlook
     Sempra Energy now anticipates earnings per share for 2001 of approximately
 $2.50, compared with its previous guidance of $2.20 per share.  The increase
 primarily reflects an expectation of continued robust results from Sempra
 Energy Trading, but does not reflect the effects of a potential sale of SDG&E
 electric-transmission assets to the state.  These results may vary
 significantly -- higher or lower -- depending on market conditions.
 Regulatory and political developments, particularly at the CPUC, Federal
 Energy Regulatory Commission and California State Legislature, could also
 impact earnings positively or negatively.
 
     Internet Broadcast
     Sempra Energy will broadcast a live discussion of its earnings results
 over the Internet today at 1 p.m. Eastern Time with Baum and other Sempra
 Energy officers, including Neal E. Schmale, executive vice president and chief
 financial officer, and Frank H. Ault, vice president and controller. For
 access, log onto the Web site at www.sempra.com.  For those unable to access
 the live Webcast, the teleconference will be available on replay a few hours
 after its conclusion by dialing (719) 457-0820 and entering passcode number
 435372.
 
     Sempra Energy (NYSE:   SRE), based in San Diego, is a Fortune 500 energy
 services holding company with 12,000 employees and revenues of $7 billion.
 Through its eight principal subsidiaries -- Southern California Gas Company,
 San Diego Gas & Electric, Sempra Energy Solutions, Sempra Energy Trading,
 Sempra Energy International, Sempra Energy Resources, Sempra Communications
 and Sempra Energy Financial -- Sempra Energy serves more than 9 million
 customers in the United States, Europe, Canada, Mexico, South America and
 Asia.
 
     This press release contains statements that are not historical fact and
 constitute forward-looking statements within the meaning of the Private
 Securities Legislation Reform Act of 1995.  When we use words like "believes,"
 "expects," "anticipates," "intends," "plans," "estimates," "may," "would,"
 "should" or similar expressions, or when we discuss our strategy or plans, we
 are making forward-looking statements. Forward-looking statements are not
 guarantees of performance.  They involve risks, uncertainties and assumptions.
 Future results may differ materially from those expressed in the
 forward-looking statements.  Forward-looking statements are necessarily based
 upon various assumptions involving judgments with respect to the future and
 other risks, including, among others: national, international, regional and
 local economic, competitive, political, legislative and regulatory conditions
 and developments; actions by the California Public Utilities Commission, the
 California State Legislature, the California Department of Water Resources and
 the Federal Energy Regulatory Commission; capital market conditions, inflation
 rates and interest rates; energy markets, including the timing and extent of
 changes in commodity prices; weather conditions; business, regulatory and
 legal decisions; the pace of deregulation of retail natural gas and
 electricity delivery; the timing and success of business development efforts;
 and other uncertainties, all of which are difficult to predict and many of
 which are beyond the company's control. These risks and uncertainties are
 further discussed in the company's reports filed with the Securities and
 Exchange Commission that are available through the EDGAR system without charge
 at its Web site, www.sec.gov.
 
 
                                 SEMPRA ENERGY
                                                         TABLE A
 
     CONSOLIDATED INCOME STATEMENT (Unaudited)
 
     In Millions of Dollars, Except                 Three Months Ended
      Per Share Amounts                                  March 31
                                                   2001            2000
     Revenues and Other Income
     California utility revenues
       Natural Gas                              $  1,881        $    814
       Electric                                      804             349
     Other operating revenues                        570             279
     Other income                                     64              18
         Total                                     3,319           1,460
 
     Expenses
     Cost of natural gas distributed               1,391             390
     Electric fuel and net purchased power           585             133
     Operating expenses                              736             493
     Depreciation and amortization                   142             134
     Franchise payments and other taxes               58              51
     Preferred dividends / distributions
      by subsidiaries                                  7               5
         Total                                     2,919           1,206
 
     Income Before Interest and Income
     Taxes                                           400             254
     Interest expense                                 90              73
     Income Before Income Taxes                      310             181
     Income taxes                                    132              68
     Net Income                                 $    178        $    113
 
     Weighted Average Shares Outstanding
      (Basic)*                                   202,285         228,291
     Weighted Average Shares Outstanding
      (Diluted)*                                 203,033         228,371
     Net Income Per Share of Common Stock
      (Basic & Diluted)                         $   0.88        $   0.49
     Dividends Declared Per Common Share        $   0.25        $   0.25
 
     * In thousands of shares
 
 
     KEY CONSOLIDATED BALANCE SHEET STATISTICS (Unaudited)
 
     In Millions of Dollars, Except                       March 31
      Per Share Amounts                            2001             2000
 
     Short-Term Debt                            $  1,532        $     --
     Current Portion of Long-Term Debt               280             153
     Long-Term Debt                                3,280           3,349
         Total Debt                                5,092           3,502
     Preferred Stock of Subsidiaries                 204             204
     Mandatorily Redeemable Trust
     Preferred Securities                            200             200
     Common Equity                                 2,629           2,400
 
         Total Capitalization                   $  8,125        $  6,306
 
     Debt to Total Capitalization                     63%             56%
     Book Value per Share                       $  12.97        $  11.92
     Cash and Cash Equivalents                  $  1,438        $    640
 
 
                                 SEMPRA ENERGY
 
                                                         TABLE B
 
     BUSINESS UNIT EARNINGS (Unaudited)
                                           Three Months Ended
                                                  March 31
                                            2001           2000        Change
     Delivery Services:
       SoCal Gas                         $    51        $    50      $     1
       SDG&E                                  52             52           --
         Subtotal                            103            102            1
 
     Energy Trading                           86             18           68
     International                             5              5           --
     Generation                                4             --            4
     Retail Services                          12             (6)          18
     Technology Ventures                      (1)            (2)           1
     Financial                                 8              8           --
     Parent and Other                        (39)           (12)         (27)
       Subtotal                               75             11           64
 
       Total Net Income                  $   178        $   113      $    65
 
       Shares Outstanding (diluted,
        in thousands)                    203,033        228,371
 
       Net Income Per Share of
        Common Stock                     $  0.88        $  0.49      $  0.39
 
 
     FINANCIAL HIGHLIGHTS (Unaudited)
                                                          March 31
                                                    2001             2000
     Capital Expenditures (in millions)
       SoCalGas                                   $   46           $   40
       SDG&E                                      $   68           $   65
     Authorized Return on Common Equity
       SoCalGas                                    11.60%           11.60%
       SDG&E                                       10.60%           10.60%
     Achieved Return on Common Equity
      (Annualized)
       SoCalGas                                    16.42%           15.61%
       SDG&E                                       19.17%           16.76%
       Sempra                                      27.80%           16.78%
 
 
 
                                 SEMPRA ENERGY
                                                         TABLE C
 
     OPERATING STATISTICS (Unaudited)                Three Months Ended
                                                          March 31,
                                                   2001              2000
     Delivery Services (California Utilities)
      Revenues ($ Millions)
        SDG&E                                      1,142               471
        SoCalGas (excludes intercompany sales)     1,543               692
 
      Gas Sales (BCF)                                152               133
      Transportation and Exchange (BCF)              192               138
      Total Deliveries (BCF)                         344               271
      Total Gas Customers (Thousands)              5,830             5,753
 
      Electric Sales (Millions of Kwhs)            4,417             3,794
      Direct Access (Millions of Kwhs)               587               879
      Total Deliveries (Millions of Kwhs)          5,004             4,673
      Total Electric Customers (Thousands)         1,243             1,223
 
     Energy Trading
 
      Operating Margins ($ Millions)
        North America                                217                42
        Europe/Asia                                   32                31
      Natural Gas (Physical, BCF/Day)               12.2               8.1
      Electric (Physical, Billions of Kwhs)         18.0               7.1
      Oil & Liquid Products
       (Physical, Millions Bbls/Day)                 2.4               2.1
 
     International (1)
      Revenues ($ Millions)                          225               197
      Natural Gas Sales (BCF)
        Argentina                                     45                42
        Mexico                                         7                 4
        Chile                                         18                14
      Natural Gas Customers (Thousands)
        Argentina                                  1,306             1,268
        Mexico                                        55                18
        Chile                                         31                20
      Electric Sales (Millions of Kwhs)
        Chile                                        418               395
        Peru                                         933               891
      Electric Customers (Thousands)
        Chile                                        395               386
        Peru                                         694               681
 
     Retail Services
      Revenues ($ Millions)
        Commercial and Industrial                    153                46
 
     (1)  Represents 100 percent of these subsidiaries, although all are less
          than 100 percent owned by Sempra
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X69141924
 
 SOURCE  Sempra Energy