Sempra Energy Announces Third-Quarter 2012 Earnings

             Sempra Energy Announces Third-Quarter 2012 Earnings

PR Newswire

SAN DIEGO, Nov. 6, 2012

SAN DIEGO, Nov. 6, 2012 /PRNewswire/ --Sempra Energy (NYSE: SRE) today
reported third-quarter 2012 earnings of $268 million, or $1.09 per diluted
share, compared with third-quarter 2011 earnings of $289 million, or $1.20 per
diluted share.

Third-quarter 2012 earnings included a $60 million non-cash charge related to
a write-down on Sempra U.S. Gas & Power's 25-percent stake in the Rockies
Express Pipeline. This $60 million charge, in addition to a $179 million
charge taken in the second quarter 2012, totaled $239 million for the first
nine months of 2012. Nine-month results in 2011 included a gain of $277
million in the second quarter 2011, reflecting the write-up in value of Sempra
International's South American utility investments.

Excluding the $60 million charge in 2012, adjusted third-quarter earnings
increased to $328 million, or $1.33 per diluted share, in 2012 from $289
million, or $1.20 per diluted share, in 2011.

Sempra Energy's earnings for the first nine months of 2012 were $566 million,
or $2.31 per diluted share, compared with $1 billion, or $4.32 per diluted
share, during the first nine months of 2011. For the nine-month period,
adjusted earnings increased to $805 million, or $3.29 per diluted share, in
2012 from $769 million, or $3.18 per diluted share, in 2011.

"Our solid operating performance in the third quarter and through the first
nine months keeps us on track to meet our 2012 earnings-per-share guidance of
$4 to $4.30, excluding the impairment charges and assuming a final California
Public Utilities Commission rate decision for our California utilities comes
by year-end," said Debra L. Reed, chief executive officer of Sempra Energy.

As announced previously, on Jan. 1, 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.

CALIFORNIA UTILITIES

San Diego Gas & Electric

Earnings for San Diego Gas & Electric (SDG&E) in the third quarter 2012 rose
to $174 million from $113 million in the year-ago quarter, due primarily to
lower taxes, higher transmission earnings and reduced expenses related to the
2007 wildfires. 

For the first nine months of 2012, SDG&E's earnings were $374 million, up from
$273 million in the first nine months last year.

Southern California Gas Co.

Southern California Gas Co. (SoCalGas) earnings were $71 million in the third
quarter 2012, compared with $81 million in the third quarter 2011.

For the nine-month period, SoCalGas' earnings were $190 million in 2012,
compared with $208 million in 2011.

As previously reported, the revenue requirement established in the General
Rate Cases for SDG&E and 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 in revenues, retroactive to the
beginning of 2012, in the quarter a final decision is approved.

SEMPRA INTERNATIONAL

Sempra South American Utilities

In the third quarter 2012, Sempra South American Utilities had earnings of $40
million, compared with earnings of $50 million in last year's third quarter.
In the third quarter 2011, Sempra South American Utilities had a
foreign-currency benefit of $19 million.

For the first nine months of 2012, earnings for Sempra South American
Utilities were $118 million, compared with $386 million in the first nine
months of 2011. Nine-month 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.

Sempra Mexico

Sempra Mexico recorded third-quarter earnings of $54 million in 2012, up from
$47 million in 2011, due primarily to improved operating performance.

For the first nine months of 2012, Sempra Mexico had earnings of $134 million,
compared with $121 million in the first nine months of 2011.

Last month, Sempra Mexico was awarded two bids by Comisión Federal
Electricidad (CFE), Mexico's state-owned electric utility, to construct a $1
billion natural gas pipeline network in northwestern Mexico. The new pipeline
will be comprised of two segments that will interconnect with the U.S.
interstate pipeline system and provide natural gas to existing CFE power
plants. The capacity for each segment is fully contracted by the CFE for a
25-year term. The first pipeline is expected to begin operations in late
2014.

SEMPRA U.S. GAS & POWER

Sempra Renewables

Third-quarter earnings for Sempra Renewables increased to $13 million in 2012
from $1 million last year, due primarily to an increase in solar and wind
assets.

During the first nine months of 2012, earnings for Sempra Renewables were $47
million, up from $9 million in the same period of 2011.

Sempra Natural Gas

Sempra Natural Gas posted a third-quarter loss of $68 million in 2012,
compared with earnings of $41 million in last year's third quarter. Excluding
the $60 million charge related to the Rockies Express Pipeline, Sempra Natural
Gas recorded an $8 million loss in the third quarter 2012.

For the first nine months of 2012, Sempra Natural Gas recorded a loss of $260
million, including the Rockies Express Pipeline charges. Excluding the
charges, Sempra Natural Gas had a $21 million loss in the first nine months of
2012, compared with $151 million in earnings for the first nine months last
year.

Kinder Morgan, a 50-percent owner of Rockies Express Pipeline, is in the
process of selling its interest in the pipeline. In the third quarter 2012,
Kinder Morgan provided more details about the sale transaction, which resulted
in additional information on the fair value of the pipeline.

Excluding the Rockies Express Pipeline charges, both the quarterly and
nine-month results for Sempra Natural Gas were impacted by lower natural gas
and power prices, including the expiration of the 10-year California
Department of Water Resources power-supply contract in the third quarter 2011.

EARNINGS GUIDANCE

Sempra Energy today said it expects to meet its 2012 earnings-per-share
guidance of $4 to $4.30, excluding the charges related to the Rockies Express
Pipeline (a $0.98-per-share year-to-date negative impact) and a second-quarter
deferred tax benefit at the parent company related to life-insurance contracts
(a $0.19-per-share year-to-date positive impact). This guidance also assumes
that the California Public Utilities Commission issues a final decision in the
general rate cases for SDG&E and SoCalGas by year-end. On a GAAP basis, the
company's earnings-per-share guidance for 2012 is $3.21 to $3.51.

NON-GAAP FINANCIAL MEASURES

Adjusted earnings for 2012 and 2011, and 2012 earnings-per-share guidance, are
non-GAAP financial measures. Additional information regarding these non-GAAP
financial measures is in the appendix on Table A of the third-quarter
financial tables.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over
the Internet today at 1 p.m. EST with senior management of the company.
Access is available by logging onto the 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 7834926.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding
company with 2011 revenues of $10 billion. The Sempra Energy companies'
17,500 employees serve more than 31 million consumers worldwide.

This press release contains statements that are not historical fact and
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements can be identified
by words like "believes," "expects," "anticipates," "intends," "plans,"
"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 third
parties who control the operations of investments in which the company does
not have a controlling interest; wars, terrorist attacks and cyber security
threats; business, regulatory, environmental and legal decisions and
requirements; expropriation of assets by foreign governments and title and
other property disputes; the 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 ENERGY
Table A
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                    Three months ended    Nine months ended
                                    September 30,         September 30,
(Dollars in millions, except per    2012       2011(1)    2012       2011(1)
share amounts)
                                    (unaudited)
REVENUES
Utilities                           $ 2,170   $ 2,065   $ 6,099   $ 5,933
Energy-related businesses           337        511        880        1,499
 Total revenues                  2,507      2,576      6,979      7,432
EXPENSES AND OTHER INCOME
Utilities:
 Cost of natural gas             (212)      (322)      (864)      (1,367)
 Cost of electric fuel and       (515)      (408)      (1,252)    (976)
purchased power
Energy-related businesses:
 Cost of natural gas, electric   (136)      (252)      (346)      (694)
fuel and purchased power
 Other cost of sales             (43)       (68)       (117)      (123)
Operation and maintenance           (732)      (691)      (2,123)    (2,003)
Depreciation and amortization       (280)      (251)      (803)      (729)
Franchise fees and other taxes      (89)       (84)       (264)      (259)
Equity (losses) earnings, before
income tax:
 Rockies Express Pipeline LLC    (87)       10         (366)      29
 Other                          (7)        (22)       (9)        (33)
Remeasurement of equity method      -          -          -          277
investments
Other income, net                   44         12         137        86
Interest income                     5          6          14         21
Interest expense                    (126)      (118)      (352)      (344)
Income before income taxes and
equity earningsof certain          329        388        634        1,317
unconsolidated subsidiaries
Income tax expense                  (49)       (75)       (48)       (289)
Equity earnings, net of income tax  10         6          29         45
Net income                          290        319        615        1,073
Earnings attributable to            (20)       (29)       (44)       (21)
noncontrolling interests
Preferred dividends of subsidiaries (2)        (1)        (5)        (6)
Earnings                            $   268  $   289  $   566  $ 1,046
Basic earnings per common share     $  1.11  $  1.21  $  2.35  $  4.36
Weighted-average number of shares   241,689    239,545    241,133    239,693
outstanding, basic (thousands)
Diluted earnings per common share   $  1.09  $  1.20  $  2.31  $  4.32
Weighted-average number of shares   245,802    241,880    245,013    241,955
outstanding, diluted (thousands)
Dividends declared per share of     $  0.60  $  0.48  $  1.80  $  1.44
common stock

(1) As adjusted for the retrospective effect of a change in accounting
principle.

SEMPRA ENERGY
Table A (Continued)
RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED
EARNINGS EXCLUDING IMPAIRMENT CHARGES AND GAIN FROM REMEASUREMENT OF
EQUITY METHOD
INVESTMENTS
(Unaudited)
Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share excluding a
$60 million impairment charge and a $239 million impairment charge on our
investment in Rockies Express LLC in the third quarter and first nine months
of 2012, respectively, and a $277 million gain from the remeasurement of
equity method investments in Chilquinta Energía 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. Also, 2012 guidance of $4 to $4.30 per diluted share excludes
the $239 million impairment charges, or $0.98 per diluted share, as well as a
$47 million tax benefit from a change in the expected holding period of life
insurance contracts, or $0.19 per diluted share, for the nine months ended
September 30, 2012, based on shares outstanding through September 30, 2012.
Management believes that excluding the impact of the impairment charges and
tax benefit from current guidance provides a more meaningful measure of Sempra
Energy's expected financial performance in 2012 in comparison to previously
issued guidance. Non-GAAP financial measures are supplementary information
that should be considered in addition to, but not as a substitute for, the
information prepared in accordance with GAAP. The table below reconciles for
historical periods these non-GAAP financial measures to Sempra Energy Earnings
and Diluted Earnings Per Common Share, which we consider to be the most
directly comparable financial measures calculated in accordance with GAAP.



                                    Three months ended    Nine months ended
                                    September 30,         September 30,
(Dollars in millions, except per    2012       2011       2012       2011
share amounts)
Sempra Energy GAAP Earnings         $   268  $   289  $   566  $ 1,046
Add: Impairment Charges in 2012     60         -          239        -
Less: Remeasurement Gain in 2011    -          -          -          (277)
Sempra Energy Adjusted Earnings     $   328  $   289  $   805  $   769
Diluted earnings per common share:
 Sempra Energy GAAP Earnings       $  1.09  $  1.20  $  2.31  $  4.32
 Sempra Energy Adjusted Earnings   $  1.33  $  1.20  $  3.29  $  3.18
Weighted-average number of shares   245,802    241,880    245,013    241,955
outstanding, diluted (thousands)







SEMPRA ENERGY
Table B
CONDENSED CONSOLIDATED BALANCE SHEETS
                                             September 30,      December 31,
(Dollars in millions)                        2012               2011(1)(2)
                                             (unaudited)
Assets
Current assets:
 Cash and cash equivalents                   $       530  $     
                                                                252
 Restricted cash                             42                 24
 Accounts receivable                         1,074              1,345
 Income taxes receivable                     18                 -
 Inventories                                 398                346
 Regulatory balancing accounts –             301                38
 undercollected
 Regulatory assets                          88                 89
 Fixed-price contracts and other derivatives 74                 85
 U.S. Treasury grants receivable             181                -
 Settlements receivable related to wildfire  180                10
 litigation
 Other                                       192                143
                Total current assets         3,078              2,332
Investments and other assets:
 Restricted cash                             20                 22
 Regulatory assets arising from pension and  1,027              1,126
 other postretirementbenefit obligations
 Regulatory assets arising from wildfire     326                594
 litigation costs
 Other regulatory assets                     1,155              1,060
 Nuclear decommissioning trusts              892                804
 Investments                                 1,585              1,671
 Goodwill                                   1,109              1,036
 Other intangible assets                     441                448
 Sundry                                      767                691
                Total investments and other  7,322              7,452
                assets
Property, plant and equipment, net           24,990             23,465
Total assets                                 $    35,390    $    33,249
Liabilities and Equity
Current liabilities:
 Short-term debt                             $       584  $     
                                                                449
 Accounts payable                            1,096              1,107
 Income taxes payable                        -                  5
 Deferred income taxes                       155                173
 Dividends and interest payable              309                219
 Accrued compensation and benefits           273                323
 Regulatory balancing accounts –             117                105
 overcollected
 Current portion of long-term debt           709                336
 Fixed-price contracts and other derivatives 82                 92
 Customer deposits                           150                142
 Reserve for wildfire litigation             284                586
 Other                                       590                615
                Total current liabilities    4,349              4,152
Long-term debt                               11,193             10,078
Deferred credits and other liabilities:
 Customer advances for construction          146                142
 Pension and other postretirement benefit    1,337              1,423
 obligations, net of plan assets
 Deferred income taxes                       1,609              1,520
 Deferred investment tax credits             47                 49
 Regulatory liabilities arising from removal 2,673              2,551
 obligations
 Asset retirement obligations                1,981              1,905
 Other regulatory liabilities                55                 87
 Fixed-price contracts and other derivatives 270                301
 Reserve for wildfire litigation             127                10
 Deferred credits and other                 1,028              774
                Total deferred credits and   9,273              8,762
                other liabilities
Contingently redeemable preferred stock of   79                 79
subsidiary
Equity:
 Total Sempra Energy shareholders' equity    10,082             9,775
 Preferred stock of subsidiary               20                 20
 Other noncontrolling interests              394                383
                Total equity                 10,496             10,178
Total liabilities and equity                 $    35,390    $    33,249

(1) As adjusted for the retrospective effect of a change in accounting
    principle.
(2) Derived from audited financial statements.





SEMPRA ENERGY
Table C
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                             Nine months ended
                                                             September 30,
(Dollars in millions)                                        2012      2011(1)
                                                             (unaudited)
Cash Flows from Operating Activities
Net income                                                   $ 615    $1,073
Adjustments to reconcile net income to net cash providedby
operating activities:
         Depreciation and amortization                       803       729
         Deferred income taxes and investment tax credits    (45)      211
         Equity losses (earnings)                            346       (41)
         Remeasurement of equity method investments          -         (277)
         Fixed-price contracts and other derivatives         1         (7)
         Other                                               (8)       (43)
Net change in other working capital components               (373)     (75)
Distributions from RBS Sempra Commodities LLP                -         53
Changes in other assets                                      202       31
Changes in other liabilities                                 147       (11)
         Net cash provided by operating activities           1,688     1,643
Cash Flows from Investing Activities
Expenditures for property, plant and equipment               (2,241)   (2,031)
Expenditures for investments and acquisition of businesses,  (359)     (696)
net of cash acquired
Proceeds from sale of joint venture interest                 9         -
Distributions from RBS Sempra Commodities LLP                -         374
Distributions from other investments                         43        47
Purchases of nuclear decommissioning and other trust assets  (534)     (399)
Proceeds from sales by nuclear decommissioning and other     534       398
trusts
Decrease in restricted cash                                  89        473
Increase in restricted cash                                  (105)     (450)
Other                                                       (12)      (20)
         Net cash used in investing activities               (2,576)   (2,304)
Cash Flows from Financing Activities
Common dividends paid                                        (405)     (325)
Redemption of subsidiary preferred stock                     -         (80)
Preferred dividends paid by subsidiaries                     (5)       (6)
Issuances of common stock                                    50        22
Repurchases of common stock                                  (16)      (18)
Issuances of debt (maturities greater than 90 days)          2,294     1,525
Payments on debt (maturities greater than 90 days)           (563)     (366)
Decrease in short-term debt, net                             (142)     (300)
Purchase of noncontrolling interests                         -         (43)
Distributions to noncontrolling interests                    (36)      (10)
Other                                                       (20)      5
         Net cash provided by financing activities           1,157     404
Effect of exchange rate changes on cash and cash             9         2
equivalents
Increase (decrease) in cash and cash equivalents             278       (255)
Cash and cash equivalents, January 1                         252       912
Cash and cash equivalents, September 30                      $ 530    $  657

(1) As adjusted for the retrospective effect of a change in accounting
principle.





SEMPRA ENERGY
Table D
SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS
                                      Three months ended  Nine months ended
                                      September 30,        September 30,
(Dollars in millions)                 2012        2011     2012        2011
                                       (unaudited)
Earnings (Losses)
California Utilities:
 San Diego Gas & Electric            $174        $113     $  374     $  273
 Southern California Gas             71          81       190         208
Sempra International:
 Sempra South American Utilities     40          50       118         386
 Sempra Mexico                       54          47       134         121
Sempra U.S. Gas & Power:
 Sempra Renewables                   13          1        47          9
 Sempra Natural Gas                  (68)        41       (260)       151
Parent and other                      (16)        (44)     (37)        (102)
Earnings                              $268        $289     $  566     $1,046
                                      Three months        Nine months ended
                                      ended
                                      September 30,        September 30,
(Dollars in millions)                 2012        2011     2012        2011
                                       (unaudited)
Capital Expenditures and Investments
California Utilities:
 San Diego Gas & Electric            $269        $448     $  998     $1,162
 Southern California Gas             146         174      462         499
Sempra International:
 Sempra South American Utilities     58          35       117         (179)
 Sempra Mexico                       4           4        13          11
Sempra U.S. Gas & Power:
 Sempra Renewables                   267         69       861         124
 Sempra Natural Gas                  32          89       144         256
Parent and other                      4           1        5           854
Consolidated Capital Expenditures and $780        $820     $2,600      $2,727
Investments

(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.

SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS (Unaudited)
                                          Three months ended Nine months ended
                                          September 30,      September 30,
UTILITIES                                    2012     2011     2012     2011
California Utilities - SDG&E and SoCalGas
Gas Sales (bcf)^(1)                          61       62       278      285
Transportation (bcf)^(1)                     210      171      555      465
Total Deliveries (bcf)^(1)                   271      233      833      750
Total Gas Customers (Thousands)                                6,672    6,649
Electric Sales (Millions of kWhs)^(1)        4,490    4,246    12,406   12,221
Direct Access (Millions of kWhs)             901      859      2,473    2,427
Total Deliveries (Millions of kWhs)^(1)      5,391    5,105    14,879   14,648
Total Electric Customers (Thousands)                           1,399    1,393
Other Utilities^(2)
Natural Gas Sales (bcf)
         Argentina                           114      110      274      267
         Mexico                              5        5        17       16
         Mobile Gas                          7        10       30       29
         Willmut Gas^(3)                     4        -        8        -
Natural Gas Customers (Thousands)
         Argentina                                             1,848    1,799
         Mexico                                                92       89
         Mobile Gas                                            88       90
         Willmut Gas^(3)                                       19       -
Electric Sales (Millions of kWhs)
         Peru                                1,637    1,549    4,996    4,713
         Chile                               632      597      2,015    1,862
Electric Customers (Thousands)
         Peru                                                  949      917
         Chile                                                 620      606
ENERGY-RELATED BUSINESSES
Sempra International
Power Sold (Millions of kWhs)
         Sempra Mexico^(4)                   1,139    450      3,111    1,978
Sempra U.S. Gas & Power
Power Sold (Millions of kWhs)
         Sempra Renewables^(5)               241      131      767      408
         Sempra Natural Gas                  2,002    3,526    5,401    9,570

^(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 50% of total power sold related to wind projects in which Sempra
Energy has a 50% ownership. These subsidiaries are not consolidated within
Sempra Energy and the related investments are accounted for under the equity
method.



 SEMPRA ENERGY
 Table F (Unaudited)
Statement of Operations Data by Segment
Three Months Ended September 30, 2012
                                  Sempra                         Sempra       Consolidating
(Dollars in     SDG&E   SoCalGas  South      Sempra  Sempra      Natural      Adjustments,    Total
millions)                         American   Mexico  Renewables  Gas          Parent &
                                  Utilities                                   Other
Revenues        $1,092  $       $   356  $ 181  $       $         $           $2,507
                        728                         27         294         (171)
Cost of Sales
and Other       (694)   (518)     (269)      (107)   (11)        (288)        160             (1,727)
Expenses
Depreciation &  (128)   (91)      (15)       (15)    (4)         (24)         (3)             (280)
Amortization
Equity Losses
Recorded        -       -         -          -       (6)         (87)    ^(1) (1)             (94)
Before Income
Tax
Other Income    5       6         5          6       (1)         3            20              44
(Expense), Net
Income (Loss)
Before          275     125       77         65      5           (102)        5               450
Interest & Tax
^(2)
Net Interest    (51)    (17)      (3)        -       (4)         (11)         (37)            (123)
Expense ^(3)
Income Tax
(Expense)       (38)    (37)      (27)       (21)    12          45           17              (49)
Benefit
Equity
Earnings        -       -         -          10      -           -            -               10
Recorded Net
of Income Tax
Earnings
Attributable
to              (12)    -         (7)        -       -           -            (1)             (20)
Noncontrolling
Interests
Earnings        $      $      $       $      $       $         $          $  268
(Losses)        174     71       40         54     13          (68)       (16)
Three Months Ended September 30, 2011
                                  Sempra                         Sempra       Consolidating
(Dollars in     SDG&E   SoCalGas  South      Sempra  Sempra      Natural      Adjustments,    Total
millions)                         American   Mexico  Renewables  Gas          Parent &
                                  Utilities                                   Other
Revenues        $      $       $   345  $ 183  $       $         $           $2,576
                868     844                          7        455         (126)
Cost of Sales
and Other       (550)   (626)     (276)      (125)   (4)         (359)        115             (1,825)
Expenses
Depreciation &  (108)   (83)      (14)       (15)    (1)         (26)         (4)             (251)
Amortization
Equity
(Losses)
Earnings        -       -         -          -       (6)         10           (16)            (12)
Recorded
Before Income
Tax
Other Income    26      3         24         (8)     -           2            (35)            12
(Expense), Net
Income (Loss)
Before          236     138       79         35      (4)         82           (66)            500
Interest & Tax
^(2)
Net Interest    (39)    (16)      (3)        (1)     (4)         (14)         (36)            (113)
Expense ^(3)
Income Tax
(Expense)       (63)    (41)      (18)       7       9           (27)         58              (75)
Benefit
Equity
Earnings        -       -         -          6       -           -            -               6
Recorded Net
of Income Tax
Earnings
Attributable
to              (21)    -         (8)        -       -           -            -               (29)
Noncontrolling
Interests
Earnings        $      $      $       $      $       $         $          $  289
(Losses)        113     81       50         47      1         41        (44)

^(1)Includes impairment charge of $100 million related to our investment in
Rockies Express Pipeline LLC.
^(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 ouroperations 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 Segment
Nine Months Ended September 30, 2012
                                   Sempra                             Sempra       Consolidating
(Dollars in     SDG&E    SoCalGas  South          Sempra  Sempra      Natural      Adjustments,    Total
millions)                          American       Mexico  Renewables  Gas          Parent &
                                   Utilities                                       Other
Revenues        $2,706   $        $ 1,061       $ 434  $       $         $          $6,979
                         2,328                            49         761         (360)
Cost of Sales
and Other       (1,730)  (1,727)   (820)          (247)   (21)        (729)        308             (4,966)
Expenses
Depreciation &  (359)    (268)     (42)           (46)    (10)        (69)         (9)             (803)
Amortization
Equity Losses
Recorded        -        -         -              -       (7)         (366)   ^(1) (2)             (375)
Before Income
Tax
Other Income    59       14        7              8       (1)         3            47              137
(Expense), Net
Income (Loss)
Before          676      347       206            149     10          (400)        (16)            972
Interest & Tax
^(2)
Net Interest    (128)    (52)      (11)           -       (10)        (31)         (111)           (343)
Expense ^(3)
Income Tax
(Expense)       (151)    (105)     (57)           (44)    47          171          91              (48)
Benefit
Equity
Earnings        -        -         -              29      -           -            -               29
Recorded Net
of Income Tax
Earnings
Attributable
to              (23)     -         (20)           -       -           -            (1)             (44)
Noncontrolling
Interests
Earnings        $  374  $       $   118      $ 134  $       $         $         $  566
(Losses)                 190                             47         (260)        (37)
Nine Months Ended September 30, 2011
                                   Sempra                             Sempra       Consolidating
(Dollars in     SDG&E    SoCalGas  South          Sempra  Sempra      Natural      Adjustments,    Total
millions)                          American       Mexico  Renewables  Gas          Parent &
                                   Utilities                                       Other
Revenues        $2,405   $        $   706      $ 561  $       $          $          $7,432
                         2,776                            17         1,340       (373)
Cost of Sales
and Other       (1,603)  (2,173)   (565)          (382)   (11)        (1,007)      319             (5,422)
Expenses
Depreciation &  (316)    (246)     (27)           (46)    (4)         (79)         (11)            (729)
Amortization
Equity
(Losses)
Earnings        -        -         -              -       (6)         29           (27)            (4)
Recorded
Before Income
Tax
Other Income    55       9         300       ^(4) (2)     -           2            (1)             363
(Expense), Net
Income (Loss)
Before          541      366       414            131     (4)         285          (93)            1,640
Interest & Tax
^(2)
Net Interest    (108)    (52)      (5)            (8)     (9)         (37)         (110)           (329)
Expense ^(3)
Income Tax
(Expense)       (154)    (106)     (30)           (24)    22          (97)         100             (289)
Benefit
Equity
Earnings        -        -         23             22      -           -            -               45
Recorded Net
of Income Tax
(Earnings)
Losses
Attributable    (6)      -         (16)           -       -           -            1               (21)
to
Noncontrolling
Interests
Earnings        $  273  $       $   386      $ 121  $       $         $          $1,046
(Losses)                 208                              9        151         (102)

^(1)Includes impairment charge of $400 million related to our investment in
Rockies Express Pipeline LLC.
^(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 ouroperations 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.

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SOURCE Sempra Energy

Website: http://www.sempra.com
Contact: Media, Doug Kline, Sempra Energy, 1-877-340-8875, www.sempra.com,
Financial, Victor Vilaplana, Sempra Energy, 1-877-736-7727,
investor@sempra.com
 
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