What is the overall financial performance of Sempra Energy for the reported period?

Sempra Energy reported a strong increase in net income for both the nine months and the third quarter ended September 30, 2004, compared to the same periods in 2003. This growth was driven by improved performance across key business segments, including its trading and resource development divisions, as well as the regulated utility operations.

How did the California Utilities (SoCalGas and SDG&E) perform?

Both SoCalGas and SDG&E contributed positively to the overall results. SoCalGas saw increased net income due to reversals of prior year charges related to litigation and sublease losses, alongside improved margins. SDG&E's net income decreased compared to the prior year's very strong results, which benefited from a significant power contract settlement, but it still contributed positively to the overall company performance.

What are the key areas of investment and strategic focus for Sempra Energy?

Sempra Energy is actively investing in expanding its energy infrastructure, particularly in the development of LNG receiving terminals in Mexico, Louisiana, and Texas, as well as natural gas storage facilities. These strategic investments aim to capitalize on growing energy demands and market opportunities.

Are there any significant regulatory or legal matters that investors should be aware of?

Yes, Sempra Energy operates in a heavily regulated environment. Key ongoing matters include proceedings before the California Public Utilities Commission (CPUC) regarding cost of service, electric and natural gas rates, and affiliate transactions. Additionally, the company is involved in various FERC proceedings and continues to address litigation stemming from the California energy crisis. While many of these matters are complex, the company believes it has adequately reserved for potential liabilities.

SRE/SREA 10-Q Quarterly Report Q3 FY2004 — Revenue, Net Income, EPS

Summary

Sempra Energy reported solid financial results for the nine months and third quarter ended September 30, 2004. Net income for the nine months increased to $549 million ($2.36 per diluted share) from $415 million ($1.98 per diluted share) in the prior year, driven by improved performance across several segments, particularly Sempra Energy Trading (SET) and Sempra Energy Resources (SER). The California utilities, SoCalGas and SDG&E, also showed improved net income for the nine-month period, with SoCalGas benefiting from litigation and sublease loss reversals and SDG&E seeing a decrease due to prior year's favorable settlements. The company's balance sheet reflects growth in trading assets and liabilities, indicative of increased trading activity. While total assets grew, a notable shift occurred in current assets with a decrease in cash and short-term investments, balanced by an increase in trading assets and inventories. Liabilities also saw changes, with an increase in long-term debt and trading liabilities, while current liabilities decreased overall. The company maintains a strong liquidity position with significant available credit lines. Key operational highlights include the successful disposal of Atlantic Electric & Gas (AEG) and ongoing progress in expanding energy infrastructure, including LNG terminals and natural gas storage facilities. Regulatory matters remain a significant focus, with ongoing proceedings before the CPUC and FERC concerning rates, cost allocations, and market conduct. Despite these complexities, Sempra Energy's diversified business model and strategic investments position it for continued performance.

Key Highlights

1Net income for the nine months ended September 30, 2004, increased to $549 million ($2.36/diluted share) from $415 million ($1.98/diluted share) in 2003.
2Third-quarter net income rose to $231 million ($0.98/diluted share) from $211 million ($1.00/diluted share) in the prior year.
3Operating revenues for the nine months increased to $6.52 billion from $5.82 billion in the prior year.
4The company successfully disposed of its interest in Atlantic Electric & Gas (AEG) in April 2004.
5Significant investments were made in expanding LNG receiving terminals and natural gas storage facilities.
6Sempra Energy Trading (SET) and Sempra Energy Resources (SER) showed substantial increases in net income.
7The company maintained a strong liquidity position with $267 million in cash and $3.3 billion in available credit lines as of September 30, 2004.

SEMPRA Quarterly Report for Q3 Ended Sep 30, 2004

Summary

Key Highlights

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