Sempra Energy Reports First-Quarter 2007 Earnings




 * Company on Track to Meet 2007 Earnings-per-Share Guidance
   of $3.75 to $3.95
 * Sempra Utilities' Quarterly Net Income Increases 22 Percent

SAN DIEGO, May 2, 2007 (PRIME NEWSWIRE) -- Sempra Energy (NYSE:SRE) today reported first-quarter 2007 net income of $228 million, or $0.86 per diluted share, compared with $255 million, or $0.98 per diluted share, in the first quarter 2006. From continuing operations, Sempra Energy earned $227 million, or $0.86 per diluted share, in the first quarter 2007, compared with $234 million, or $0.90 per diluted share, in the year-ago period.

First-quarter 2007 results at Sempra Commodities do not reflect $86 million of natural gas storage and transportation mark-to-market profits, which are deferred under current accounting rules. First-quarter 2006 results did not reflect $44 million for similar items.

"We are pleased with our operating results in the first quarter, led by the solid performance of Sempra Utilities," said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. "At Sempra Commodities, we expect the strong economic benefits from our natural gas storage and transportation contracts to be largely recognized in reported results by year-end. Overall, we remain on track to meet our 2007 earnings-per-share guidance of $3.75 to $3.95."

SUBSIDIARY OPERATING RESULTS

Sempra Utilities

Net income for Sempra Utilities -- San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) -- increased 22 percent to $117 million in the first quarter 2007 from $96 million in the first quarter 2006.

SDG&E's first-quarter net income rose to $62 million in 2007 from $47 million in 2006, due primarily to higher earnings from the Palomar Energy Center and the San Onofre Nuclear Generating Station.

Net income for SoCalGas rose to $55 million in the first quarter 2007 from $49 million in the prior-year's quarter, due to improved operations.

"The majority of our $11 billion, five-year capital plan is being dedicated to investments in new infrastructure and technology for Sempra Utilities," Felsinger said. "These investments will enhance energy reliability, provide access to renewable resources, reduce customer costs and promote conservation."

On April 12, 2007, the California Public Utilities Commission approved SDG&E's "smart meter" project, which will dramatically change how SDG&E delivers services and will help customers manage their energy usage efficiently. SDG&E plans to spend $572 million through 2011 to replace an estimated 1.4 million electric meters with smart meters and to retrofit approximately 900,000 gas meters throughout its service territory.

Sempra Commodities

Sempra Commodities earned $71 million in the first quarter 2007, compared with $116 million in the first quarter 2006. Contributing factors included the effect of accounting rules that defer mark-to-market profits on natural gas storage and transportation contracts used in forward-sale transactions and reduced margins in natural gas and power marketing, offset by higher margins in metals.

Sempra Generation

First-quarter net income for Sempra Generation rose to $54 million in 2007 from $41 million in 2006, due primarily to a favorable change in mark-to-market earnings on long-term contracts with Sempra Commodities and higher interest income.

Sempra Pipelines & Storage

Net income for Sempra Pipelines & Storage in the first quarter 2007 was $16 million, compared with $11 million in the first quarter 2006, due to lower income-tax expense and improved results in its Mexican and South American operations.

On April 19, 2007, Sempra Pipelines & Storage and its partners in the Rockies Express Pipeline project received approval from the Federal Energy Regulatory Commission (FERC) to begin construction on the Rockies Express-West project, which extends the pipeline from Colorado to Missouri. This 713-mile leg of the 1,678-mile natural gas pipeline is expected to be in service in early 2008. Earlier this week, the project partners filed with the FERC for authorization to construct the 638-mile Rockies Express-East pipeline, covering the final leg of the project from Missouri to Ohio. The entire Rockies Express Pipeline project is scheduled for completion in 2009.

Sempra LNG

Sempra LNG recorded a net loss of $10 million in the first quarter 2007, compared with a net loss of $5 million in the first quarter 2006.

Discontinued Operations

Sempra Energy's 2007 first-quarter net income included $1 million in discontinued operations, compared with $21 million, primarily from asset sales, in the year-ago quarter.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company. Access is available by logging onto the Web site at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2247326.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2006 revenues of nearly $12 billion. The Sempra Energy companies' 14,000 employees serve more than 29 million consumers worldwide.

Income-statement information by business unit is available on Sempra Energy's Web site at http://www.sempra.com/downloads/1Q2007.pdf

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is 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: local, regional, national and international 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, the Federal Energy Regulatory Commission and other environmental and regulatory bodies in the United States and other countries; capital market conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the 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 and on the company's Web site, www.sempra.com.

Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.



                             SEMPRA ENERGY
                                Table A

 STATEMENTS OF CONSOLIDATED INCOME
                                                  Three months ended
                                                       March 31,
 (Dollars in millions,                          ----------------------
  except per share amounts)                        2007         2006
 ---------------------------------------------------------------------
                                                      (Unaudited)
 Operating revenues
 Sempra Utilities                               $   2,059    $   2,128
 Sempra Global and parent                             945        1,208
                                                ---------    ---------
     Total operating revenues                       3,004        3,336
                                                ---------    ---------
 Operating expenses
 Sempra Utilities:
   Cost of natural gas                              1,050        1,130
   Cost of electric fuel and purchased power          149          210
 Sempra Global and parent:
   Cost of natural gas, electric fuel and
    purchased power                                   336          298
   Other cost of sales                                319          376
 Other operating expenses                             633          676
 Depreciation and amortization                        169          157
 Franchise fees and other taxes                        81           77
                                                ---------    ---------
     Total operating expenses                       2,737        2,924
                                                ---------    ---------
 Operating income                                     267          412
 Other income, net                                     11            4
 Interest income                                       26           14
 Interest expense                                     (70)         (96)
 Preferred dividends of subsidiaries                   (2)          (2)
                                                ---------    ---------
 Income from continuing operations before
  income taxes and equity in earnings of
  certain unconsolidated subsidiaries                 232          332
 Income tax expense                                    63          108
 Equity in earnings of certain
  unconsolidated subsidiaries                          58           10
                                                ---------    ---------
 Income from continuing operations                    227          234
 Discontinued operations, net of income tax             1           21
                                                ---------    ---------
 Net income                                     $     228    $     255
                                                =========    =========

 Basic earnings per share:
  Income from continuing operations             $    0.88    $    0.92
  Discontinued operations, net of income tax           --         0.08
                                                ---------    ---------
     Net income                                 $    0.88    $    1.00
                                                =========    =========
 Weighted-average number of shares
  outstanding (thousands)                         259,459      254,257
                                                =========    =========

 Diluted earnings per share:
  Income from continuing operations             $    0.86    $    0.90
  Discontinued operations, net of income tax           --         0.08
                                                ---------    ---------
     Net income                                 $    0.86    $    0.98
                                                =========    =========
 Weighted-average number of shares
  outstanding (thousands)                         263,996      259,251
                                                =========    =========
 Dividends declared per share of common stock   $    0.31    $    0.30
                                                =========    =========

 As a result of the decisions in 2006 to dispose of the Twin Oaks
 power plant, Sempra Energy Production Company, and the Energy
 Services and Facilities Management businesses, all within Sempra
 Generation, and Bangor Gas and Frontier Energy, both within Sempra
 Pipelines & Storage, these operations have been reflected above as
 discontinued operations in all periods presented.

                             SEMPRA ENERGY
                                Table B

 CONSOLIDATED BALANCE SHEETS
                                             March 31,    December 31,
 (Dollars in millions)                         2007          2006
 ---------------------------------------------------------------------
 Assets                                    (unaudited)
 Current assets:
  Cash and cash equivalents                  $ 1,658       $   920
  Restricted cash                                  1             4
  Accounts receivable                            917         1,035
  Deferred income taxes                          376           270
  Interest receivable                              7            40
  Trading-related receivables and                       
   deposits, net                               2,452         3,047
  Derivative trading instruments               3,332         4,068
  Commodities owned                            1,399         1,845
  Inventories                                    111           215
  Regulatory assets                              143           193
  Other                                          275           317
                                             -------       -------
   Current assets of continuing operations    10,671        11,954
   Current assets of discontinued operations      60            62
                                             -------       -------
    Total current assets                      10,731        12,016
                                             -------       -------
                                                          
 Investments and other assets:                            
  Regulatory assets arising from fixed-price              
   contracts and other derivatives               339           353
  Regulatory assets arising from pension and              
   other postretirement benefit obligations      367           356
  Other regulatory assets                        462           472
  Nuclear decommissioning trusts                 710           702
  Investments                                  1,138         1,086
  Sundry                                         791           789
                                             -------       -------
    Total investments and other assets         3,807         3,758
                                             -------       -------
 Property, plant and equipment, net           13,486        13,175
                                             -------       -------
 Total assets                                $28,024       $28,949
                                             =======       =======
                                                          
 Liabilities and Shareholders' Equity                     
 Current liabilities:                                     
  Short-term debt                            $   101       $   252
  Accounts payable                             1,013         1,587
  Income taxes payable                           114             9
  Trading-related payables                     2,769         3,211
  Derivative trading instruments               2,450         2,304
  Commodities sold with agreement
   to repurchase                                 144           537
  Dividends and interest payable                 153           145
  Regulatory balancing accounts, net             457           332
  Fixed-price contracts and other derivatives     55            87
  Current portion of long-term debt              656           681
  Other                                        1,283         1,197
                                             -------       -------
   Current liabilities of continuing
    operations                                 9,195        10,342
   Current liabilities of discontinued
    operations                                     5             7
                                             -------       -------
    Total current liabilities                  9,200        10,349
                                             -------       -------
 Long-term debt                                4,520         4,525
                                             -------       -------
                                                          
 Deferred credits and other liabilities:                  
  Due to unconsolidated affiliate                162           162
  Customer advances for construction             124           126
  Pension and other postretirement benefit                
   obligations, net of plan assets               622           609
  Deferred income taxes                          378           412
  Deferred investment tax credits                 66            67
  Regulatory liabilities arising from removal             
   obligations                                 2,353         2,330
  Asset retirement obligations                 1,187         1,128
  Other regulatory liabilities                   224           221
  Fixed-price contracts and other derivatives    346           358
  Deferred credits and other                     954           972
                                             -------       -------
   Total deferred credits and
    other liabilities                          6,416         6,385
                                             -------       -------
 Preferred stock of subsidiaries                 179           179
                                             -------       -------
 Shareholders' equity                          7,709         7,511
                                             -------       -------
 Total liabilities and shareholders'
  equity                                     $28,024       $28,949
                                             =======       =======
                                                             
 As a result of the decisions in 2006 to dispose of the Twin Oaks
 power plant, Sempra Energy Production Company, and the Energy
 Services and Facilities Management businesses, all within Sempra
 Generation, and Bangor Gas and Frontier Energy, both within Sempra
 Pipelines & Storage, these operations have been reflected above as
 discontinued operations in all periods presented.

                             SEMPRA ENERGY
                                Table C

 CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                                                   Three months ended
                                                        March 31,
                                                   ------------------
 (Dollars in millions)                               2007      2006
 ---------------------------------------------------------------------
                                                       (Unaudited)
 Cash Flows from Operating Activities:
 Income from continuing operations                  $   227    $   234
 Adjustments to reconcile income from
  continuing operations to net cash
  provided by operating activities:
   Depreciation and amortization                        169        157
   Deferred income taxes and investment
    tax credits                                        (104)       (44)
   Equity in income of unconsolidated
    subsidiaries                                        (52)        (6)
   Other                                                 20         32
 Net changes in other working capital components      1,115        399
 Changes in other assets                                 16        (18)
 Changes in other liabilities                            (7)         6
                                                    -------    -------
   Net cash provided by continuing operations         1,384        760
   Net cash provided by (used in)
    discontinued operations                              (1)        95
                                                    -------    -------
   Net cash provided by operating activities          1,383        855
                                                    -------    -------

 Cash Flows from Investing Activities:
 Expenditures for property, plant and equipment        (423)      (415)
 Proceeds from sale of assets from continuing
  operations                                             32         22
 Expenditures for investments                            (5)      (103)
 Purchases of nuclear decommissioning and other
  trust assets                                         (211)      (122)
 Proceeds from sales by nuclear decommissioning
  and other trusts                                      213        116
 Other                                                   (6)        (1)
                                                    -------    -------
   Net cash used in continuing operations              (400)      (503)
   Net cash used in discontinued operations              --         (2)
                                                    -------    -------
   Net cash used in investing activities               (400)      (505)
                                                    -------    -------

 Cash Flows from Financing Activities:
 Common dividends paid                                  (79)       (65)
 Issuances of common stock                               16         17
 Repurchases of common stock                             --        (12)
 Decrease in short-term debt, net                      (151)      (369)
 Payments on long-term debt                             (35)       (44)
 Issuance of long-term debt                               2         --
 Other                                                    2          2
                                                    -------    -------
   Net cash used in continuing operations              (245)      (471)
   Net cash provided by discontinued operations          --          2
                                                    -------    -------
   Net cash used in financing activities               (245)      (469)
                                                    -------    -------
 Increase (decrease) in cash and cash equivalents       738       (119)
 Cash and cash equivalents, January 1                   920        769
                                                    -------    -------
 Cash and cash equivalents, March 31                $ 1,658    $   650
                                                    =======    =======

 As a result of the decisions in 2006 to dispose of the Twin Oaks
 power plant, Sempra Energy Production Company, and the Energy
 Services and Facilities Management businesses, all within Sempra
 Generation, and Bangor Gas and Frontier Energy, both within Sempra
 Pipelines & Storage, these operations have been reflected above as
 discontinued operations in all periods presented.

                             SEMPRA ENERGY
                                Table D

 BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS
 (Unaudited)

                                                  Three months ended
                                                       March 31,
                                                ----------------------
 (Dollars in millions)                               2007     2006
 ---------------------------------------------------------------------
 Net Income
 Sempra Utilities:
  San Diego Gas & Electric                           $  62    $  47
  Southern California Gas                               55       49
                                                     -----    -----
    Total Sempra Utilities                             117       96
                                                     -----    -----
 Sempra Global:
  Sempra Commodities                                    71      116
  Sempra Generation*                                    54       41
  Sempra Pipelines & Storage*                           16       11
  Sempra LNG                                           (10)      (5)
                                                     -----    -----
    Total Sempra Global                                131      163
                                                     -----    -----

 Parent & Other                                        (21)     (25)
                                                     -----    -----
 Continuing Operations                                 227      234
 Discontinued Operations, Net of Income Tax              1       21
                                                     -----    -----
 Consolidated Net Income                             $ 228    $ 255
                                                     =====    =====
 
 * Excludes amounts now classified as discontinued operations.
 
                                                  Three months ended
                                                       March 31,
                                                ----------------------
 (Dollars in millions)                               2007     2006
 ---------------------------------------------------------------------
 Capital Expenditures and Investments
 Sempra Utilities:
  San Diego Gas & Electric                           $ 157    $ 583(a)
  Southern California Gas                               86       97
                                                     -----    -----
    Total Sempra Utilities                             243      680
                                                     -----    -----

 Sempra Global:
  Sempra Commodities                                    13       20
  Sempra Generation                                      1       29
  Sempra Pipelines & Storage                            79      105
  Sempra LNG                                            86      152
                                                     -----    -----
    Total Sempra Global                                179      306
                                                     -----    -----

 Parent & Other                                          6     (468)(a)
                                                     -----    -----
 Consolidated Capital Expenditures and Investments   $ 428    $ 518
                                                     =====    =====
 
 (a) Includes the transfer of the Palomar plant.

 As a result of the decisions in 2006 to dispose of the Twin Oaks
 power plant, Sempra Energy Production Company, and the Energy
 Services and Facilities Management businesses, all within Sempra
 Generation, and Bangor Gas and Frontier Energy, both within Sempra
 Pipelines & Storage, these operations have been reflected above as
 discontinued operations in all periods presented.

                             SEMPRA ENERGY
                                Table E

 OTHER OPERATING STATISTICS (Unaudited)
                                              Three months ended
                                                   March 31,
                                              ------------------
 SEMPRA UTILITIES                              2007        2006
 ------------------------------------------------------------------
 Revenues (Dollars in millions)
  SDG&E (excludes intercompany sales)         $  705      $  718
  SoCalGas (excludes intercompany sales)      $1,354      $1,410

 Gas Sales (bcf)                                 141         141
 Transportation and Exchange (bcf)               120         122
                                              ------      ------
 Total Deliveries (bcf)                          261         263
                                              ------      ------
 Total Gas Customers (Thousands)               6,487       6,406

 Electric Sales (Millions of kWhs)             4,190       4,043
 Direct Access (Millions of kWhs)                778         898
                                              ------      ------
 Total Deliveries (Millions of kWhs)           4,968       4,941
                                              ------      ------
 Total Electric Customers (Thousands)          1,357       1,342



 SEMPRA GENERATION
 ------------------------------------------------------------------
 Power Sold (Millions of kWhs)                 5,377       4,910(a)

 (a) Revised to exclude the Twin Oaks, Coleto Creek and Topaz power
     plants

 SEMPRA PIPELINES & STORAGE
 (Represents 100% of these subsidiaries, although only the Mexican
  subsidiaries are 100% owned by Sempra Energy)
 ------------------------------------------------------------------
 Natural Gas Sales (bcf)
  Argentina                                       63          52
  Mexico                                          11          10
  Chile                                           --           1
 Natural Gas Customers (Thousands)
  Argentina                                    1,552       1,511
  Mexico                                         101          99
  Chile                                           39          38
 Electric Sales (Millions of kWhs)
  Peru                                         1,269       1,165
  Chile                                          665         614
 Electric Customers (Thousands)
  Peru                                           793         772
  Chile                                          538         525

 SEMPRA COMMODITIES
 ---------------------------------------------------------------------
                                              Three Months Ended
                                                   March 31,
                                              ------------------
 Margin * (Dollars in millions)                 2007      2006
 ---------------------------------------------------------------------
 Geographical:
  North America                               $  104      $  359
  Europe/Asia                                     63           6
                                              ------------------
      Total                                   $  167      $  365
                                              ------------------
 Product Line:
  Gas                                         $  (56)     $  179
  Power                                           82         101
  Oil - Crude & Products                          57          53
  Metals                                          60          27
  Other                                           24           5
                                              ------------------
      Total                                   $  167      $  365
                                              ------------------

 * Margin consists of net revenues less related costs (primarily
   brokerage, transportation and storage) plus or minus net interest
   expense/income, and is used by management in evaluating its
   geographical and product line performance.


                                              Three months ended
                                                   March 31,
 Effect of EITF 02-03                         ------------------
 (Dollars in millions)                         2007        2006
 ---------------------------------------------------------------------
 Mark-to-Market Earnings *                    $  157      $  160
 Effect of EITF 02-03 **                         (86)        (44)
                                              ------------------
    GAAP Net Income                           $   71      $  116
                                              ------------------

  * Represents earnings from the fair market value of all commodities
    transactions. This metric is a useful measurement of profitability
    because it simultaneously recognizes changes in the various
    components of transactions and reflects how the business is
    managed.
 ** Consists of the income statement effect of not recognizing
    changes in the fair market value of certain physical inventories,
    capacity contracts for transportation and storage, and derivative
    hedging activities related to synthetic fuels tax credits.


                         Fair
  Net Unrealized     Market Value     Scheduled Maturity (in months)
    Revenue            March 31,    ----------------------------------
 (Dollars in millions)   2007       0 - 12   13 - 24   25 - 36   gt. 36
 ---------------------------------------------------------------------
 OTC Fair Value
  of forwards, swaps
  and options(a)        $ 854        369       340        2      143
                        ----------------------------------------------

                                    ----------------------------------
  Maturity of OTC Fair
   Value - Cumulative
   Percentages                      43.2%     83.0%     83.3%   100.0%
                                    ----------------------------------

 ---------------------------------------------------------------------
 Exchange Contracts (b)    49        203      (134)      75      (95)
                        ----------------------------------------------

 Total Net Unrealized
  Revenue at March 31,
  2007                  $ 903      $ 572     $ 206     $ 77    $ 48
                        ----------------------------------------------

                                    ----------------------------------
 Net Unrealized
  Revenue - Cumulative
  Percentages                       63.3%     86.2%    94.7%    100.0%
                                    ----------------------------------

 (a) The present value of unrealized revenue to be received or (paid)
     from outstanding OTC contracts
 (b) Cash received or (paid) associated with open Exchange Contracts


 Credit Quality of Unrealized                March 31,  December 31,
 Trading Assets (net of margin)                2007        2006
 ---------------------------------------------------------------------
 Commodity Exchanges                            8%         13%
 Investment Grade                              62%         57%
 Below Investment Grade                        30%         30%


                                              Three months ended
                                                   March 31,
 Risk Adjusted Performance                    ------------------
  Indicators (Mark-to-Market Basis)            2007        2006
 ---------------------------------------------------------------------
 VaR at 95% (Dollars in millions)(a)          $ 10.3      $ 22.0
 VaR at 99% (Dollars in millions)(b)          $ 14.5      $ 31.1

 (a) Average Daily Value-at-Risk for the period using a 95%
     confidence level

 (b) Average Daily Value-at-Risk for the period using a 99%
     confidence level

 Physical Statistics
 ---------------------------------------------------------------------
 Natural Gas (bcf/Day)                          12.4        12.6
 Electric (Billions of kWhs)                   122.9       114.9
 Oil & Liquid Products (Millions Bbls/Day)       0.6         0.7

            

Mot-clé


Coordonnées