How did Sempra Energy's earnings perform in the first nine months of 2009 compared to the same period in 2008?

For the nine months ended September 30, 2009, Sempra Energy reported net income attributable to common shareholders of $831 million, a modest increase from $808 million in the comparable period of 2008. Diluted earnings per share also improved to $3.37 from $3.13.

What were the primary drivers for the decrease in total revenues?

The decrease in total revenues was primarily attributed to lower natural gas and electricity prices in 2009 compared to 2008. This impacted revenue generation across both the Sempra Utilities and the Sempra Global segments.

How did the SDG&E 2007 wildfire litigation affect the company's financial position during this quarter?

The company established a reserve of $940 million for wildfire litigation claims in the first six months of 2009, which was fully offset by a receivable from its liability insurers. Following insurer payments, the reserve was reduced to $289 million by September 30, 2009. While settlements were reached with a significant portion of homeowner insurers, the company's ultimate liability for remaining claims is uncertain and could exceed insurance coverage. Without rate recovery authorization for any excess costs, the financial results could be adversely impacted.

What is the company's outlook regarding liquidity and future capital expenditures?

Sempra Energy maintained a strong liquidity position with substantial available unused credit. The company expects cash flows from operations, distributions from investments, and security issuances to adequately fund capital expenditures and dividends. Planned capital expenditures for 2009 were approximately $2.9 billion, focused on infrastructure and renewable energy projects, with an expectation that financing will be secured to maintain investment-grade ratings.

SRE/SREA 10-Q Quarterly Report Q3 FY2009 — Revenue, Net Income, EPS

Summary

Sempra Energy (SRE) reported solid financial results for the third quarter and the first nine months of 2009, demonstrating resilience amidst a challenging economic environment. Net income attributable to common shareholders for the nine months ended September 30, 2009, reached $831 million, a slight increase from $808 million in the same period of 2008. Earnings per diluted share also saw a positive trend. The company's diversified business segments, including regulated utilities (SDG&E and SoCalGas) and global energy operations, contributed to this performance. Despite lower revenues driven by decreased natural gas and electricity prices, effective cost management and strong operational execution within the utility segments helped offset some of the pressure.

Key Highlights

1Net income attributable to common shareholders for the nine months ended September 30, 2009, was $831 million, up from $808 million in the prior year period.
2Diluted earnings per share increased to $3.37 for the nine months ended September 30, 2009, from $3.13 in the same period of 2008.
3Total revenues decreased year-over-year, primarily due to lower natural gas and electricity prices, impacting both utility and global segments.
4Sempra Utilities (SDG&E and SoCalGas) demonstrated stable performance, benefiting from regulatory mechanisms and cost control efforts.
5Sempra Commodities showed a significant improvement in earnings, driven by higher equity earnings from the RBS Sempra Commodities joint venture.
6The company maintained a strong liquidity position with substantial available unused credit facilities.
7Significant capital expenditures were planned for 2009, totaling $2.9 billion, focused on infrastructure improvements and renewable energy projects.

SEMPRA Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Key Highlights

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