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Press release from PR Newswire

Sempra Energy Announces 2012 Financial Results

Tuesday, February 26, 2013

Sempra Energy Announces 2012 Financial Results09:00 EST Tuesday, February 26, 2013- Earnings-per-Share Guidance Range of $4.30 to $4.80 Set for 2013 - Company Advances Strategic Plan With 2012 Accomplishments: - Sunrise Powerlink Transmission Line Energized - Mexican Pipeline Projects Added - Renewable Energy Generation Portfolio More Than Doubled - Cameron LNG Export Project Achieved Key MilestonesSAN DIEGO, Feb. 26, 2013 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported 2012 earnings of $859 million, or $3.48 per diluted share, compared with $1.3 billion, or $5.51 per diluted share, in 2011.  Earnings in 2012 included $239 million in non-cash charges related to a write-down on Sempra U.S. Gas & Power's 25-percent ownership stake in the Rockies Express Pipeline.  The charges were partially offset by the receipt of a $25 million after-tax cash payment in the fourth quarter 2012 from Kinder Morgan related to the sale of its 50-percent stake in the Rockies Express Pipeline.  In 2011, Sempra Energy benefited from a gain of $277 million, reflecting the write-up in value of Sempra International's South American utility investments.  Excluding the net write-down in 2012 and gain in 2011, Sempra Energy's adjusted earnings were $1.07 billion, or $4.35 per diluted share, in 2012, compared with $1.05 billion, or $4.36 per diluted share, in 2011.Sempra Energy's fourth-quarter 2012 earnings were $293 million, or $1.18 per diluted share, compared with fourth-quarter 2011 earnings of $285 million, or $1.18 per diluted share.  Excluding the receipt from Kinder Morgan, adjusted earnings in the fourth quarter 2012 were $268 million, or $1.08 per diluted share."In 2012, we met our key operational and financial goals and made significant progress in executing on our strategy," said Debra L. Reed, chairman and CEO of Sempra Energy.  "Our domestic and international utilities performed well; San Diego Gas & Electric put its Sunrise Powerlink transmission line into service; we were awarded bids in Mexico to construct and own approximately $1 billion of natural gas pipelines; we more than doubled our renewable energy generation portfolio; and we completed major regulatory filings for our Cameron LNG export project. We remain on track with our goal to deliver compound annual earnings growth of 6 percent to 8 percent, along with an increased dividend."Last week, Sempra Energy's board of directors approved a 5-percent increase in the dividend to $2.52 per share from $2.40 per share, on an annualized basis.In December 2012, following successful completion of the pre-filing process at the Federal Energy Regulatory Commission (FERC), the company filed its formal FERC permit application seeking approval to begin construction of the Cameron LNG liquefaction and export terminal in Louisiana.  The company expects to receive all necessary regulatory permits by the end of this year for the project, which is expected to begin operations in 2017 and process up to 1.7 billion cubic feet per day of natural gas for export to international markets. CALIFORNIA UTILITIESAs previously reported, the revenue requirement established in the General Rate Cases for San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) will be retroactive to Jan. 1, 2012.  Until the California Public Utilities Commission reaches a final decision, both utilities are recording revenues based on 2011 authorized levels, as adjusted for the recovery of incremental wildfire insurance premiums.  SoCalGas and SDG&E will record the cumulative change resulting from the decision, retroactive to the beginning of 2012, in the quarter a final decision is approved.   San Diego Gas & ElectricEarnings for SDG&E increased to $484 million in 2012 from $431 million in 2011.  In the fourth quarter 2012, SDG&E earned $110 million, compared with $158 million in the prior year's fourth quarter, primarily due to higher revenues for incremental wildfire insurance premiums in the fourth quarter 2011 and higher expenses with no authorized revenue increase in 2012.  Southern California Gas Co.SoCalGas earned $289 million in 2012, compared with $287 million in 2011. In the fourth quarter, SoCalGas' earnings were $99 million in 2012, compared with $79 million in 2011, due to lower income taxes, partially offset by higher depreciation and other operating expenses.SEMPRA INTERNATIONALSempra South American UtilitiesIn 2012, earnings for Sempra South American Utilities were $164 million, compared with $425 million in 2011.  Earnings in 2011 were higher due to the $277 million second-quarter gain from the write-up in value of the company's South American utility investments.  In the fourth quarter 2012, Sempra South American Utilities had earnings of $46 million, up from $39 million in the prior year's fourth quarter. Sempra MexicoSempra Mexico's earnings in 2012 were $157 million, compared with $192 million in 2011.  Sempra Mexico's fourth-quarter earnings were $35 million in 2012, compared with $80 million in 2011.  During the fourth quarter 2012, a change in an intercompany agreement resulted in lower earnings at Sempra Mexico and higher earnings at Sempra Natural Gas.SEMPRA U.S. GAS & POWERSempra RenewablesIn 2012, earnings for Sempra Renewables increased to $61 million from $7 million in 2011.  Fourth-quarter earnings for Sempra Renewables were $14 million in 2012, compared with a loss of $2 million in 2011, due primarily to the addition of solar and wind assets in 2012.Since the beginning of 2012, Sempra U.S. Gas & Power has put into service more than 500 megawatts (MW) of wind and solar power projects stretching from Hawaii to Pennsylvania.  The company's portfolio of renewable energy now totals nearly 850 MW. Sempra Natural GasSempra Natural Gas posted a loss of $241 million in 2012, compared with earnings of $115 million in 2011.  Sempra Natural Gas' 2012 results included the $239 million of non-cash charges for the write-down of its investment in the Rockies Express Pipeline, offset by the receipt of the $25 million cash payment from Kinder Morgan related to the sale of its ownership in the pipeline.  In the fourth quarter 2012, Sempra Natural Gas earned $19 million, compared with a loss of $36 million in the fourth quarter 2011.  The higher fourth-quarter earnings were due primarily to the receipt of the cash payment from Kinder Morgan and the change in the intercompany agreement with Sempra Mexico, partially offset by lower earnings from LNG marketing operations.2013 EARNINGS GUIDANCESempra Energy today announced an earnings-per-share guidance range for 2013 of $4.30 to $4.80, which includes recording the anticipated 2012 impact of the final decision in SDG&E's and SoCalGas' General Rate Cases (expected in the first half of 2013) and approximately $0.30 per share in higher tax expense from repatriation of dividends from international operations.NON-GAAP FINANCIAL MEASURESAdjusted earnings for 2012 and 2011 are non-GAAP financial measures.  Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the fourth-quarter financial tables.INTERNET BROADCASTSempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST with senior management of the company.  Access is available by logging onto the website at www.sempra.com.  For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2184727. Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2012 revenues of approximately $10 billion.  The Sempra Energy companies' nearly 17,000 employees serve more than 31 million consumers worldwide.On Jan. 1, 2012, Sempra Energy consolidated Sempra Generation, Sempra Pipelines & Storage and Sempra LNG into two new operating units: Sempra International and Sempra U.S. Gas & Power. Sempra International is comprised of two new reporting segments:  Sempra South American Utilities and Sempra Mexico.  Sempra U.S. Gas & Power also is comprised of two new reporting segments:  Sempra Renewables and Sempra Natural Gas. Beginning in the first quarter 2012, in addition to San Diego Gas & Electric and Southern California Gas Co., Sempra Energy began reporting financial results under each of the above segments.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," "outlook," "depends," "pursue" or similar expressions, or discussions of guidance, strategies, plans, goals, initiatives, objectives or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions and the timing of actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, U.S. Department of Energy, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of investments; inflation, interest and exchange rates; the impact of benchmark interest rates, generally the U.S. Treasury bond and Moody's A-rated utility bond yields, on the California utilities' cost of capital; the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of the granting of, permits, licenses, certificates and other authorizations; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent in nuclear power generation and radioactive materials storage, including catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the generation facility due to an extended outage, and increased regulatory oversight; risks posed by decisions and actions of fourth parties who control the operations of investments in which the company does not have a controlling interest; wars, terrorist attacks and cyber security threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the status of deregulation of retail natural gas and electricity delivery; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas) and Sempra International, LLC and Sempra U.S. Gas & Power, LLC are not regulated by the California Public Utilities Commission. Sempra International's underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power's underlying entities include Sempra Renewables and Sempra Natural Gas.SEMPRA ENERGYTable ACONSOLIDATED STATEMENTS OF OPERATIONSThree months endedYears endedDecember 31,December 31,(Dollars in millions, except per share amounts)2012201120122011(unaudited)REVENUESUtilities$  2,342$  2,389$  8,441$  8,322Energy-related businesses3262151,2061,714    Total revenues2,6682,6049,64710,036EXPENSES AND OTHER INCOMEUtilities:    Cost of natural gas(426)(499)(1,290)(1,866)    Cost of electric fuel and purchased power(508)(421)(1,760)(1,397)Energy-related businesses:    Cost of natural gas, electric fuel and purchased power(135)(52)(481)(746)    Other cost of sales(42)(14)(159)(137)Litigation expense(8)(7)(26)(37)Other operation and maintenance(818)(815)(2,923)(2,788)Depreciation and amortization(287)(247)(1,090)(976)Franchise fees and other taxes(95)(84)(359)(343)Equity earnings (losses), before income tax:     RBS Sempra Commodities LLP---(24)    Rockies Express Pipeline LLC5414(312)43    Other2(1)(7)(10)Remeasurement of equity method investments---277Other income, net3544172130Interest income1052426Interest expense(141)(121)(493)(465)Income before income taxes and equity earnings of certain unconsolidated subsidiaries3094069431,723Income tax expense(11)(105)(59)(394)Equity earnings, net of income tax773652Net income3053089201,381Earnings attributable to noncontrolling interests(11)(21)(55)(42)Preferred dividends of subsidiaries(1)(2)(6)(8)Earnings$     293$     285$     859$  1,331Basic earnings per common share$    1.21$    1.19$    3.56$    5.55Weighted-average number of shares outstanding, basic (thousands)241,984239,803241,347239,720Diluted earnings per common share$    1.18$    1.18$    3.48$    5.51Weighted-average number of shares outstanding, diluted (thousands)247,570241,756246,693241,523Dividends declared per share of common stock$    0.60$    0.48$    2.40$    1.92           SEMPRA ENERGYTable A (Continued)RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS EXCLUDING NET IMPAIRMENT CHARGE AND GAIN FROM REMEASUREMENT OF EQUITY METHOD INVESTMENTS (Unaudited)Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share excluding a $214 million impairment charge on our investment in Rockies Express LLC, net of a $25 million Kinder Morgan receipt in the fourth quarter of 2012, and a $277 million gain from the remeasurement of equity method investments in Chilquinta Energia and Luz del Sur in the second quarter of 2011 are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). Because of the significance and nature of these items, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of Sempra Energy's business operations from 2012 to 2011 and to future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.Three months endedDecember 31,Years endedDecember 31,(Dollars in millions, except per share amounts)2012201120122011Sempra Energy GAAP Earnings$     293$     285$     859$  1,331Add: Year-to-Date Impairment Charge, Net of Fourth-Quarter Receipt(25)-214-Less: Remeasurement Gain in 2011---(277)Sempra Energy Adjusted Earnings$     268$     285$  1,073$  1,054Diluted earnings per common share:Sempra Energy GAAP Earnings$    1.18$    1.18$    3.48$    5.51Sempra Energy Adjusted Earnings$    1.08$    1.18$    4.35$    4.36Weighted-average number of shares outstanding, diluted (thousands)247,570241,756246,693241,523     SEMPRA ENERGYTable BCONSOLIDATED BALANCE SHEETSDecember 31,December 31,(Dollars in millions)20122011AssetsCurrent assets:Cash and cash equivalents$           475$           252Restricted cash4624Accounts receivable, net1,2991,345Income taxes receivable56-Deferred income taxes148-Inventories408346Regulatory balancing accounts ? undercollected39538Regulatory assets 6289Fixed-price contracts and other derivatives9585U.S. Treasury grants receivable258-Asset held for sale, power plant296-Settlements receivable related to wildfire litigation510Other152143Total current assets3,6952,332Investments and other assets:Restricted cash2222Regulatory assets arising from pension and other postretirement benefit obligations1,1511,126Regulatory assets arising from wildfire litigation costs364594Other regulatory assets1,2271,060Nuclear decommissioning trusts908804Investments1,5161,671Goodwill1,1111,036Other intangible assets436448Sundry878691Total investments and other assets7,6137,452Property, plant and equipment, net25,19123,465Total assets$       36,499$       33,249Liabilities and EquityCurrent liabilities:Short-term debt$           546$           449Accounts payable1,1101,107Income taxes payable-5Deferred income taxes-173Dividends and interest payable266219Accrued compensation and benefits337323Regulatory balancing accounts ? overcollected141105Current portion of long-term debt725336Fixed-price contracts and other derivatives7792Customer deposits143142Reserve for wildfire litigation305586Other608615Total current liabilities4,2584,152Long-term debt11,62110,078Deferred credits and other liabilities:Customer advances for construction144142Pension and other postretirement benefit obligations, net of plan assets1,4561,423Deferred income taxes2,1001,520Deferred investment tax credits4649Regulatory liabilities arising from removal obligations2,7202,551Asset retirement obligations2,0331,905Other regulatory liabilities187Fixed-price contracts and other derivatives252301Reserve for wildfire litigation2210Deferred credits and other 1,084774Total deferred credits and other liabilities9,8588,762Contingently redeemable preferred stock of subsidiary7979Equity:Total Sempra Energy shareholders' equity10,2829,775Preferred stock of subsidiary2020Other noncontrolling interests381383Total equity10,68310,178Total liabilities and equity$       36,499$       33,249     SEMPRA ENERGYTable CCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Years endedDecember 31,(Dollars in millions)20122011Cash Flows from Operating ActivitiesNet income$  920$1,381Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization1,090976Deferred income taxes and investment tax credits(43)3Equity losses (earnings)324(61)Remeasurement of equity method investments-(277)Fixed-price contracts and other derivatives(26)2Other34(15)Net change in other working capital components(630)(224)Distributions from RBS Sempra Commodities LLP-53Changes in other assets21934Changes in other liabilities130(5)Net cash provided by operating activities2,0181,867Cash Flows from Investing ActivitiesExpenditures for property, plant and equipment(2,956)(2,844)Proceeds from sale of assets and investments742Expenditures for investments and acquisition of businesses, net of cash acquired(445)(941)Distributions from RBS Sempra Commodities LLP-570Distributions from other investments20764Purchases of nuclear decommissioning and other trust assets(738)(755)Proceeds from sales by nuclear decommissioning and other trusts733753Decrease in restricted cash196653Increase in restricted cash(218)(541)Other (11)(31)Net cash used in investing activities(3,158)(3,070)Cash Flows from Financing ActivitiesCommon dividends paid(550)(440)Redemption of subsidiary preferred stock-(80)Preferred dividends paid by subsidiaries(6)(8)Issuances of common stock7828Repurchases of common stock(16)(18)Issuances of debt (maturities greater than 90 days)3,0972,098Payments on debt (maturities greater than 90 days)(1,112)(482)Decrease in short-term debt, net(47)(498)Purchase of noncontrolling interests(7)(43)Distributions to noncontrolling interests(61)(16)Other (21)(7)Net cash provided by financing activities1,355534Effect of exchange rate changes on cash and cash equivalents89Increase (decrease) in cash and cash equivalents223(660)Cash and cash equivalents, January 1252912Cash and cash equivalents, December 31$  475$   252     SEMPRA ENERGYTable DSEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS Three months endedYears endedDecember 31,December 31,(Dollars in millions)2012201120122011(unaudited)Earnings (Losses) California Utilities:   San Diego Gas & Electric$110$   158$   484$   431   Southern California Gas9979289287Sempra International:   Sempra South American Utilities4639164425   Sempra Mexico3580157192Sempra U.S. Gas & Power:   Sempra Renewables14(2)617   Sempra Natural Gas19(36)(241)115Parent & Other (30)(33)(55)(126)Earnings$293$   285$   859$1,331Three months endedYears endedDecember 31,December 31,(Dollars in millions)2012201120122011(unaudited)Capital Expenditures and InvestmentsCalifornia Utilities:   San Diego Gas & Electric$239$   669$1,237$1,831   Southern California Gas177184639683Sempra International:   Sempra South American Utilities6747184(132)(1)   Sempra Mexico3254516Sempra U.S. Gas & Power:   Sempra Renewables2283691,089493   Sempra Natural Gas58(15)202241Parent & Other-45858(1)Eliminations(2)-(205)-(205)Consolidated Capital Expenditures and Investments$801$1,058$3,401$3,785(1)The $611 million of net cash used to fund the purchase of controlling interests in our investments in Chile and Peru in the second quarter of 2011 is recorded as a net expenditure of $852 million at Parent and Other, partially offset by $241 million of cash acquired in the purchase, which is recorded at Sempra South American Utilities.(2)Amount represents elimination of intercompany sale of El Dorado power plant in October 2011.     SEMPRA ENERGYTable EOTHER OPERATING STATISTICS (Unaudited)Three months endedYears endedDecember 31,December 31,UTILITIES2012201120122011California Utilities ? SDG&E and SoCalGasGas Sales (bcf)(1)102118380403Transportation (bcf)(1)181155736620Total Deliveries (bcf)(1)2832731,1161,023Total Gas Customers (Thousands)6,6786,655Electric Sales (Millions of kWhs)(1)4,2204,02616,62616,247Direct Access (Millions of kWhs)9268383,3993,265Total Deliveries (Millions of kWhs)(1)5,1464,86420,02519,512Total Electric Customers (Thousands)1,4011,394Other Utilities(2)Natural Gas Sales (bcf)Argentina8488358355Mexico662322Mobile Gas13114340Willmut Gas(3)7-15-Natural Gas Customers (Thousands)Argentina1,8591,810Mexico9390Mobile Gas8889Willmut Gas(3)20-Electric Sales (Millions of kWhs)Peru1,6721,5966,6686,309Chile6836582,6982,520Electric Customers (Thousands)Peru959926Chile623609ENERGY-RELATED BUSINESSESSempra InternationalPower Sold (Millions of kWhs)Sempra Mexico(4)7061,0853,8173,063Sempra U.S. Gas & PowerPower Sold (Millions of kWhs)Sempra Renewables(5)4402251,207633Sempra Natural Gas1,1791,0516,58010,621(1) Includes 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.(3) Acquired in May 2012.(4) Sales to Sempra Natural Gas.(5) Includes 100% of power sold from solar projects and 50% of total power sold related to wind projects in which Sempra Energy has a 50% ownership. The 50%-owned subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method.     SEMPRA ENERGYTable F (Unaudited)Statement of Operations Data by SegmentThree Months Ended December 31, 2012(Dollars in millions)SDG&ESoCalGasSempra South American UtilitiesSempra MexicoSempra RenewablesSempra Natural GasConsolidating Adjustments, Parent & OtherTotalRevenues$   988$      954$     380$  170$          19$        170$           (13)$2,668Cost of Sales and Other Expenses(660)(772)(291)(112)(9)(160)(20)(2,024)Litigation Expense (5)(1)----(2)(8)Depreciation & Amortization(131)(94)(14)(16)(6)(24)(2)(287)Equity Earnings Recorded Before Income Tax----154156Other Income (Expense), Net1036(1)(1)61235Income (Loss) Before Interest & Tax (1)202908141446(24)440Net Interest Expense (2)(50)(17)(6)(1)(6)(12)(40)(132)Income Tax (Expense) Benefit(39)26(21)(12)16(14)33(11)Equity Earnings Recorded Net of Income Tax---7---7(Earnings) Losses Attributable to Noncontrolling Interests(3)-(8)--(1)1(11)Earnings (Losses)$   110$        99$       46$    35$          14$          19$           (30)$   293Three Months Ended December 31, 2011(Dollars in millions)SDG&ESoCalGasSempra South American UtilitiesSempra MexicoSempra RenewablesSempra Natural GasConsolidating Adjustments, Parent & OtherTotalRevenues$   968$   1,040$     374$  173$            5$        292$          (248)$2,604Cost of Sales and Other Expenses(589)(824)(294)(57)(7)(334)220(1,885)Litigation (Expense) Adjustment (4)(2)(1)(3)--3(7)Depreciation & Amortization(106)(85)(13)(16)(2)(24)(1)(247)Equity Earnings (Losses) Recorded Before Income Tax-----14(1)13Other Income (Expense), Net244(1)5-(1)1344Income (Loss) Before Interest & Tax (1)29313365102(4)(53)(14)522Net Interest Expense (2)(39)(17)(7)(4)(4)(9)(38)(118)Income Tax (Expense) Benefit(83)(37)(12)(25)62521(105)Equity Earnings Recorded Net of Income Tax---7---7(Earnings) Losses Attributable to Noncontrolling Interests(13)-(7)--1(2)(21)Earnings (Losses)$   158$        79$       39$    80$           (2)$         (36)$           (33)$   285(1) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.(2) Net Interest Expense includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.     SEMPRA ENERGYTable F (Unaudited)Statement of Operations Data by SegmentYear Ended December 31, 2012(Dollars in millions)SDG&ESoCalGasSempra South American UtilitiesSempra MexicoSempra RenewablesSempra Natural GasConsolidating Adjustments, Parent & OtherTotalRevenues$3,694$   3,282$  1,441$  605$          68$        931$          (374)$  9,647Cost of Sales and Other Expenses(2,380)(2,494)(1,111)(355)(30)(889)287(6,972)Litigation Expense(15)(6)-(4)--(1)(26)Depreciation & Amortization(490)(362)(56)(62)(16)(93)(11)(1,090)Equity Losses Recorded Before Income Tax----(6)(312) (1)(1)(319)Other Income (Expense), Net69171316(2)950172Income (Loss) Before Interest & Tax (2)87843728720014(354)(50)1,412Net Interest Expense (3)(178)(69)(17)(6)(16)(43)(146)(475)Income Tax (Expense) Benefit(190)(79)(78)(73)63157141(59)Equity Earnings Recorded Net of Income Tax---36---36Earnings Attributable to Noncontrolling Interests(26)-(28)--(1)-(55)Earnings (Losses)$   484$      289$     164$  157$          61$       (241)$           (55)$     859Year Ended December 31, 2011(Dollars in millions)SDG&ESoCalGasSempra South American UtilitiesSempra MexicoSempra RenewablesSempra Natural GasConsolidating Adjustments, Parent & OtherTotalRevenues$3,373$   3,816$  1,080$  736$          22$      1,632$          (623)$10,036Cost of Sales and Other Expenses(2,177)(2,994)(859)(433)(18)(1,336)540(7,277)Litigation (Expense) Adjustment (19)(5)(1)(9)-(5)2(37)Depreciation & Amortization(422)(331)(40)(63)(6)(103)(11)(976)Equity (Losses) Earnings Recorded Before Income Tax----(6)43(28)9Other Income (Expense), Net7913299 (4)(13)-128407Income (Loss) Before Interest & Tax (2)834499479218(8)232(92)2,162Net Interest Expense (3)(147)(69)(12)(18)(13)(46)(142)(447)Income Tax (Expense) Benefit(237)(143)(42)(37)28(72)109(394)Equity Earnings Recorded Net of Income Tax--2329---52(Earnings) Losses Attributable to Noncontrolling Interests(19)-(23)--1(1)(42)Earnings (Losses)$   431$      287$     425$  192$            7$        115$          (126)$  1,331(1) Includes Rockies Express Pipeline LLC impairment charge of $400 million, partially offset by a $41 million Kinder Morgan receipt.(2) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.(3) Net Interest Expense includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.(4) Includes gain of $277 million related to remeasurement of equity method investments.(Logo: http://photos.prnewswire.com/prnh/20110108/SEMPRAENERGYLOGO) SOURCE Sempra EnergyFor further information: Media, Doug Kline, Sempra Energy, 1-877-340-8875, www.sempra.com, or Financial Contact, Victor Vilaplana, Sempra Energy, 1-877-736-7727, investor@sempra.com