2015 Statistical Report Unaudited Supplement to the Financial Report

2015

Shareholder Services

Statistical Report

Unaudited Supplement to the 2015 Financial Report

Sempra Energy® is a San Diego-based Fortune 500 energy services holding company with 2015 revenues of more than $10 billion. The Sempra Energy companies’ approximately 17,000 employees serve more than 32 million consumers worldwide. The company develops energy infrastructure, operates utilities and provides energy-related services to customers around the world. Sempra Energy common shares trade on the New York Stock Exchange (NYSE) under the symbol “SRE.” Additional information is available on the web at www.sempra.com.

Investors with general questions regarding Sempra Energy, San Diego Gas & Electric Company or Southern California Gas Company securities should contact the company at: Sempra Energy Shareholder Services 488 8th Avenue San Diego, CA 92101-7123 Telephone: (877) 736-7727 Fax: (619) 696-1868 Email: [email protected] Internet: www.sempra.com

Investor Relations Security analysts, portfolio managers and other members of the financial community should contact: Kendall Helm Director - Investor Relations Telephone: 619-696-2901 Sempra Energy Common Stock: Ticker Symbol: SRE New York Stock Exchange Southern California Gas Co. Preferred Stock: SoCalGas preferred stock is not listed on any exchange and trades over-the-counter.

Table of Contents Sempra Energy

Sempra International

Selected Financial Data 2013 - 2015 .................................................. 2 Consolidated Statements of Operations .............................................. 3 Consolidated Balance Sheets ............................................................. 4 Consolidated Statements of Cash Flows ............................................ 6 Consolidated Statements of Comprehensive Income (Loss) and Changes in Equity ........................................................................... 8 Segment Earnings and Capital Expenditures and Investments ........ 10 Schedule of Capitalization ................................................................. 11 Schedule of Coverage Ratios and Common Stock ........................... 12 Schedule of Long-Term Debt….........................................….……….13 Reconciliation of Sempra Energy Earnings to Sempra Energy Adjusted Earnings….. ....................................................….……….15

Selected Financial Data and Comparative Statistics 2013 - 2015 .....29

Sempra South American Utilities Consolidated Statements of Operations ............................................30 Consolidated Balance Sheets ...........................................................31 Consolidated Statements of Cash Flows ...........................................32

Sempra Mexico Consolidated Statements of Operations ............................................33 Consolidated Balance Sheets ...........................................................34 Consolidated Statements of Cash Flows ...........................................35

Sempra U.S. Gas & Power San Diego Gas & Electric Company (SDG&E®) Selected Financial Data and Comparative Statistics 2013 - 2015 ..... 17 Consolidated Statements of Operations ............................................ 19 Consolidated Balance Sheets ........................................................... 20 Consolidated Statements of Cash Flows .......................................... 22

Selected Financial Data and Comparative Statistics 2013 - 2015 .....36

Sempra Renewables Consolidated Statements of Operations ............................................37 Consolidated Balance Sheets ...........................................................38 Consolidated Statements of Cash Flows ...........................................39

Southern California Gas Company (SoCalGas®)

Sempra Natural Gas

Selected Financial Data and Comparative Statistics 2013 - 2015 ..... 24 Consolidated Statements of Operations ............................................ 25 Consolidated Balance Sheets ........................................................... 26 Consolidated Statements of Cash Flows .......................................... 28

Consolidated Statements of Operations ............................................40 Consolidated Balance Sheets ...........................................................41 Consolidated Statements of Cash Flows ...........................................42

Shareholder Information and Research Coverage.....43

[PAGE INTENTIONALLY LEFT BLANK]

1

Selected Financial Data 2013 - 2015 At December 31 or for the years then ended 2015 2014 2013

(In millions, except per share amounts) Revenues Utilities: Electric Natural gas Energy-related businesses Total revenues

$

Income from continuing operations Earnings from continuing operations attributable to noncontrolling interests Call premium on preferred stock of subsidiary Preferred dividends of subsidiaries Earnings/Income from continuing operations attributable to common shares

$

$

5,158 4,096 977 10,231

$

$

5,209 4,549 1,277 11,035

$

4,911 4,398 1,248 10,557

$

1,448

$

1,262

$

1,088

(98) ― (1)

(100) ― (1)

(79) (3) (5)

$

1,349

$

1,161

$

1,001

Attributable to common shares: Earnings/Income from continuing operations Basic Diluted

$ $

5.43 5.37

$ $

4.72 4.63

$ $

4.10 4.01

Adjusted earnings(1)

$

1,308

$

1,182

$

1,043

Adjusted earnings per share, diluted(1)

$

5.21

$

4.71

$

4.18

Weighted-average number of common shares outstanding (diluted, in millions)

250.9 $

Dividends declared per common share

2.80

250.7 $

11.7% 20%

Return on common equity Effective income tax rate

2.64

249.3 $

10.4% 20%

2.52 9.4% 26%

$

116.2189.44

$

116.3086.73

$

93.0070.61

Total assets(2)

$

41,150

$

39,651

$

37,165

Long-term debt (excludes current portion)(2)(3)

$

13,134

$

12,086

$

11,174

Short-term debt(4) Sempra Energy shareholders' equity Common shares outstanding Book value per common share

$ $

1,529 11,809 248.3 47.56

$ $

2,202 11,326 246.3 45.98

$ $

1,692 11,008 244.5 45.03

Price range of common shares At December 31,

(1) (2) (3) (4)

$

$

$

Please refer to page 15 for an explanation of these non-GAAP measures. As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." Includes capital lease obligations. Includes long-term debt due within one year and current portion of capital lease obligations.

2

Consolidated Statements of Operations

2015

(Dollars in millions, except per share amounts) Revenues Utilities Energy-related businesses Total revenues Expenses and Other Income Utilities: Cost of natural gas Cost of electric fuel and purchased power Energy-related businesses: Cost of natural gas, electric fuel and purchased power Other cost of sales Operation and maintenance Depreciation and amortization Franchise fees and other taxes Plant closure adjustment (loss) Gain on sale of equity interests and assets Equity earnings, before income tax Other income, net Interest income Interest expense Income before income taxes and equity earnings of certain unconsolidated subsidiaries Income tax expense Equity earnings, net of income tax Net income Earnings attributable to noncontrolling interests Call premium on preferred stock of subsidiary Preferred dividends of subsidiaries Earnings Basic earnings per common share

$

Years ended December 31, 2014

9,254 977 10,231

$

(1,646) (1,932)

(335) (148) (2,895) (1,250) (423) 26 70 104 126 29 (561)

(552) (163) (2,935) (1,156) (408) (6) 62 81 137 22 (554)

(435) (178) (2,995) (1,113) (374) (200) 114 31 140 20 (559)

$

1,704 (341) 85 1,448 (98) ― (1) 1,349

$

1,524 (300) 38 1,262 (100) ― (1) 1,161

$

1,430 (366) 24 1,088 (79) (3) (5) 1,001

$

5.43

$

4.72

$

4.10

$

Weighted-average number of shares outstanding, diluted (thousands)

5.37

245,891 $

250,923 $ 3

9,309 1,248 10,557

(1,758) (2,281)

248,249

Dividends declared per share of common stock

$

(1,134) (2,136)

Weighted-average number of shares outstanding, basic (thousands) Diluted earnings per common share

9,758 1,277 11,035

2013

2.80

4.63

243,863 $

250,655 $

2.64

4.01 249,332

$

2.52

Consolidated Balance Sheets

2015

(Dollars in millions) Assets Current assets: Cash and cash equivalents Restricted cash Trade accounts receivable, net Other accounts receivable, net Due from unconsolidated affiliates Income taxes receivable Deferred income taxes Inventories Regulatory balancing accounts – undercollected Fixed-price contracts and other derivatives Assets held for sale, power plant Other Total current assets

$

Investments and other assets: Restricted cash Due from unconsolidated affiliates Deferred taxes recoverable in rates Regulatory assets arising from pension and other postretirement benefit plan obligations Regulatory assets arising from wildfire litigation costs Regulatory asset arising from plant closure Regulatory balancing accounts – undercollected Other regulatory assets Nuclear decommissioning trusts Investments Goodwill Other intangible assets Dedicated assets in support of certain benefit plans Insurance receivable for Aliso Canyon costs Sundry Total investments and other assets Property, plant and equipment: Property, plant and equipment Less accumulated depreciation and amortization Property, plant and equipment, net Total assets

$

403 27 1,283 190 6 30 ― 298 307 80 ― 267 2,891

December 31, (1) 2014

$

570 11 1,242 152 38 45 305 396 746 93 293 293 4,184

2013(1)

$

904 24 1,308 214 4 85 301 287 556 106 ― 208 3,997

20 186 1,277

29 188 1,042

25 14 906

889 362 215 215 315 1,063 2,905 819 404 464 325 761 10,220

797 373 308 173 338 1,131 2,848 931 415 512 ― 480 9,565

435 330 303 213 361 1,034 1,575 1,024 426 506 ― 556 7,708

38,200 (10,161) 28,039 41,150

35,407 (9,505) 25,902 39,651

34,407 (8,947) 25,460 37,165

$

$

(1) As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs".

4

Consolidated Balance Sheets (continued)

2015

(Dollars in millions) Liabilities and Equity Current liabilities: Short-term debt Accounts payable – trade Accounts payable – other Due to unconsolidated affiliates Dividends and interest payable Accrued compensation and benefits Regulatory balancing accounts – overcollected Current portion of long-term debt Fixed-price contracts and other derivatives Customer deposits Reserve for Aliso Canyon costs Other Total current liabilities

$

622 1,133 142 14 303 423 34 907 56 153 274 551 4,612

December 31, (1) 2014

$

1,733 1,198 155 2 282 373 ― 469 55 153 ― 649 5,069

2013(1)

$

545 1,088 127 ― 271 376 91 1,147 55 154 ― 515 4,369

Long-term debt

13,134

12,086

11,174

Deferred credits and other liabilities: Customer advances for construction Pension and other postretirement benefit plan obligations, net of plan assets Deferred income taxes Deferred investment tax credits Regulatory liabilities arising from removal obligations Asset retirement obligations Fixed-price contracts and other derivatives Deferred credits and other Total deferred credits and other liabilities

149 1,152 3,157 32 2,793 2,126 240 1,176 10,825

144 1,064 3,003 37 2,741 2,048 255 1,104 10,396

155 667 2,804 42 2,623 2,084 228 1,169 9,772

Equity: Preferred stock Common stock Retained earnings Accumulated other comprehensive income (loss) Total Sempra Energy shareholders' equity Preferred stock of subsidiary Other noncontrolling interests Total equity Total liabilities and equity

― 2,621 9,994 (806) 11,809 20 750 12,579 41,150

― 2,484 9,339 (497) 11,326 20 754 12,100 39,651

― 2,409 8,827 (228) 11,008 20 822 11,850 37,165

$

$

$

(1) As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

5

Consolidated Statements of Cash Flows

(Dollars in millions) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes and investment tax credits Gain on sale of equity interests and assets Plant closure (adjustment) loss Equity earnings Fixed-price contracts and other derivatives Other Net change in other working capital components Insurance receivable for Aliso Canyon costs Changes in other assets Changes in other liabilities Net cash provided by operating activities

2015 $

Years ended December 31, 2014 2013

1,448

$

1,262

$

1,088

1,250 239 (70) (26) (189) (10) 75 699 (325) (162) (24) 2,905

1,156 146 (62) 6 (119) (25) 108 (375) ― 19 45 2,161

1,113 334 (114) 200 (55) (21) 13 (620) ― (171) 17 1,784

Cash Flows from Investing Activities Expenditures for property, plant and equipment Expenditures for investments and acquisition of businesses Proceeds from sale of equity interests and assets, net of cash sold Proceeds from U.S. Treasury grants Distributions from investments Proceeds from sales by nuclear decommissioning and other trusts Purchases of nuclear decommissioning and other trust assets Increases in restricted cash Decreases in restricted cash Advances to unconsolidated affiliates Repayments of advances to unconsolidated affiliates Other Net cash used in investing activities

(3,156) (200) 373 ― 15 577 (531) (100) 93 (31) 74 1 (2,885)

(3,123) (240) 149 ― 13 601 (613) (152) 155 (185) 18 35 (3,342)

(2,572) (22) 570 238 152 695 (697) (356) 329 (14) ― (12) (1,689)

Cash Flows from Financing Activities Common dividends paid Redemption of preferred stock of subsidiary Preferred dividends paid by subsidiaries Issuances of common stock Repurchases of common stock Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) Proceeds from sale of noncontrolling interests, net of $25 in offering costs (Decrease) increase in short-term debt, net Purchase of noncontrolling interests Net distributions to noncontrolling interests Tax benefit related to share-based compensation Other Net cash (used in) provided by financing activities

(628) ― (1) 52 (74) 2,992 (1,854) ― (622) ― (73) 52 (17) (173)

(598) ― (1) 56 (38) 3,272 (2,034) ― 412 (74) (104) ― (37) 854

(606) (82) (5) 62 (45) 2,081 (1,788) 574 256 ― (69) ― (40) 338

Effect of exchange rate changes on cash and cash equivalents (Decrease) increase in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31

$

6

(14)

(7)

(167) 570 403

(334) 904 570

$

(4)

$

429 475 904

Consolidated Statements of Cash Flows (continued)

(Dollars in millions)

2015

Changes in Other Working Capital Components (Excluding cash and cash equivalents, and debt due within one year) Accounts receivable Income taxes receivable, net Inventories Regulatory balancing accounts Regulatory assets and liabilities Other current assets Accounts payable Reserve for Aliso Canyon costs Other current liabilities Net change in other working capital components

$

$

Supplemental Disclosure of Cash Flow Information Interest payments, net of amounts capitalized Income tax payments, net of refunds

$

7

Years ended December 31, 2014 2013

(99) 39 65 586 (4) (18) (157) 274 13 699

537 67

$

44 62 (133) (317) 8 (10) 109 ― (138)

$

(273) (38) 116 (198) 1 15 (28) ― (215)

$

(375)

$

(620)

$

536 102

$

544 120

Consolidated Statements of Comprehensive Income (Loss) and Changes in Equity

(Dollars in millions) Balance at December 31, 2012

$

Common stock 2,217

$

1,009

Net income Other comprehensive income (loss): Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Comprehensive income

111 9 28 148

Share-based compensation expense Common stock dividends declared Preferred dividends of subsidiaries Issuances of common stock Repurchases of common stock Sale of noncontrolling interests, net of offering costs Distributions to noncontrolling interests Call premium on preferred stock of subsidiary Balance at December 31, 2013

40

62 (45) 135 (3) 8,827

2,409

(228)

1,162 (193) (64) (12) (269)

97 (38)

(32) 2,484

$

9,339

8

1,088

111 9 28 1,157

(27) 19

84 28 28 1,228

71

(3) 11,008

842

40 (615) (5) 62 (45) 574 (69) (3) 11,850

1,162

100

1,262

439 (69)

(20) (1)

(213) (65) (12) 972

79

48 (649) (1) 97 (38)

(649) (1)

$

79

(193) (64) (12) 893

48

$

$

(497)

$

Total equity 10,683

1,009

40 (615) (5) 62 (45) 135

(615) (5)

Net income Other comprehensive income (loss): Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Comprehensive income Share-based compensation expense Common stock dividends declared Preferred dividends of subsidiary Issuances of common stock Repurchases of common stock Distributions to noncontrolling interests Equity contributed by noncontrolling interests Purchase of noncontrolling interests in subsidiary Balance at December 31, 2014

Years ended December 31, 2015, 2014 and 2013 Accumulated Sempra Energy Nonother Retained comprehensive shareholders' controlling earnings income (loss) equity interests 8,441 $ (376) $ 10,282 $ 401

(32) 11,326

$

(107) 1 (41) 774

$

48 (649) (1) 97 (38) (107) 1 (73) 12,100

Consolidated Statements of Comprehensive Income (Loss) and Changes in Equity (continued)

(Dollars in millions) Balance at December 31, 2014

$

Common stock 2,484

$

1,350

Net income Other comprehensive income (loss): Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Comprehensive income Share-based compensation expense Common stock dividends declared Preferred dividends of subsidiary Issuances of common stock Repurchases of common stock Tax benefit related to share-based compensation Distributions to noncontrolling interests Equity contributed by noncontrolling interests Balance at December 31, 2015

Years ended December 31, 2015, 2014 and 2013 Accumulated Sempra other Energy NonRetained comprehensive shareholders' controlling earnings income (loss) equity interests 9,339 $ (497) $ 11,326 $ 774

(260) (47) (2) (309) 52

107 (74) 52

2,621

$

9,994

9

1,350

98

1,448

(260) (47) (2) 1,041

(30) 5 73

(290) (42) (2) 1,114

(80) 3 770

52 (694) (1) 107 (74) 52 (80) 3 12,579

52 (694) (1) 107 (74) 52

(694) (1)

$

$

$

(806)

$

Total equity 12,100

11,809

$

$

Segment Earnings and Capital Expenditures and Investments

(Dollars in millions)

2015

Earnings (Losses) California Utilities: (1) San Diego Gas & Electric (2) Southern California Gas Sempra International: Sempra South American Utilities Sempra Mexico Sempra U.S. Gas & Power: Sempra Renewables Sempra Natural Gas Parent and Other Earnings

$

$

Capital Expenditures and Investments California Utilities: San Diego Gas & Electric Southern California Gas Sempra International: Sempra South American Utilities Sempra Mexico Sempra U.S. Gas & Power: Sempra Renewables Sempra Natural Gas Parent and Other Consolidated Capital Expenditures and Investments

$

$

(1)

For 2013, amount is after preferred dividends and call premium on preferred stock.

(2)

After preferred dividends.

10

Years ended December 31, 2014

587 419

$

507 332

$

2013

404 364

175 213

172 192

153 122

63 44 (152) 1,349

81 50 (173) 1,161

62 64 (168) 1,001

1,133 1,352

$

$

1,100 1,104

$

$

978 762

154 302

174 325

200 371

105 260 50 3,356

404 230 26 3,363

193 87 3 2,594

$

$

Schedule of Capitalization

(Dollars in millions)

December 31, 2014

2015

2013

Capitalization Short-term debt Current portion of long-term debt Long-term debt Total debt

$

Equity: Common stock Retained earnings Accumulated other comprehensive income (loss) Total Sempra Energy shareholders' equity Preferred stock of subsidiary Other noncontrolling interests Total equity Total capitalization

$

622 907 13,134 14,663

2.3 % 3.3 48.2 53.8

2,621 9,994 (806) 11,809 20 750 12,579

9.6 36.7 (3.0) 43.3 0.1 2.8 46.2

27,242

11

100.0 %

$

$

1,733 469 12,086 14,288

6.5 % 1.8 45.8 54.1

2,484 9,339 (497) 11,326 20 754 12,100

9.4 35.4 (1.9) 42.9 0.1 2.9 45.9

26,388

100.0 %

$

$

545 1,147 11,174 12,866

2.2 % 4.7 45.2 52.1

2,409 8,827 (228) 11,008 20 822 11,850

9.7 35.7 (0.9) 44.5 0.1 3.3 47.9

24,716

100.0 %

Schedule of Coverage Ratios and Common Stock

2015 Interest coverage ratios(1) Before income taxes After income taxes

4.19 3.58

Market price of common stock High Low Close Dividends declared per common share Dividend yield on common stock (at December 31) Dividend payout ratio (diluted) Book value at December 31

$ $ $

116.30 86.73 111.36

$ $ $

93.00 70.61 89.76

$

2.80 3.0% 52.1% 47.56

$

2.64 2.4% 57.0% 45.98

$

2.52 2.8% 62.8% 45.03

248.3 250.9 1,171,375 210,000

Excludes interest expense.

12

3.60 2.95

116.21 89.44 94.01

11.7% 1.98

Common shares outstanding at December 31 (millions) Weighted average number of shares outstanding (diluted, in millions) Average daily trading volume (shares) Common shareholders at December 31 (estimate)

3.82 3.28

2013

$ $ $

$

Return on common equity Ratio of market price to book value per share at December 31

(1)

Years ended December 31, 2014

$

10.4% 2.42 246.3 250.7 1,116,535 205,000

$

9.4% 1.99 244.5 249.3 1,057,314 230,000

Schedule of Long-Term Debt Outstanding at 12/31/15

(Dollars in millions) SDG&E First mortgage bonds (secured by plant assets): Bonds at variable rates (0.68% at December 31, 2015) March 9, 2017 1.65% July 1, 2018(1) 3% August 15, 2021 1.914% payable 2015 through February 2022 3.6% September 1, 2023 6% June 1, 2026 5% payable 2015 through December 2027(1) 5.875% January and February 2034(1) 5.35% May 15, 2035 6.125% September 15, 2037 4% May 1, 2039(1) 6% June 1, 2039 5.35% May 15, 2040 4.5% August 15, 2040 3.95% November 15, 2041 4.3% April 1, 2042 Other long-term debt: 5.2925% OMEC LLC loan payable 2013 through April 2019 (secured by OMEC plant assets) Capital lease obligations: Purchased-power agreements Other

$

140 161 350 232 450 250 105 176 250 250 75 300 250 500 250 250

Redemption prices (at 12/31/15 unless otherwise noted)

100.00%

102% 100% at 06/01/19

100% at 09/13/17

315 243 1

SoCalGas First mortgage bonds (secured by plant assets): 5.45% April 15, 2018 1.55% June 15, 2018 3.15% September 15, 2024 3.2% June 15, 2025 5.75% November 15, 2035 5.125% November 15, 2040 3.75% September 15, 2042 4.45% March 15, 2044 Other long-term debt (unsecured): 4.75% Notes May 14, 2016(1) 5.67% Notes January 18, 2028 Capital lease obligations

250 250 500 350 250 300 350 250 8 5 1

Sempra Energy Other long-term debt (unsecured): 6.5% Notes June 1, 2016, including $300 at variable rates after fixed-to-floating rate swaps effective January 2011 (4.77% at December 31, 2015) 2.3% Notes April 1, 2017 6.15% Notes June 15, 2018 9.8% Notes February 15, 2019 2.4% Notes March 15, 2020 2.85% Notes November 15, 2020 2.875% Notes October 1, 2022 4.05% Notes December 1, 2023 3.55% Notes June 15, 2024 3.75% Notes November 15, 2025 6% Notes October 15, 2039 Market value adjustments for interest rate swaps, net Build-to-suit lease

750 600 500 500 500 400 500 500 500 350 750 (2) 136

13

100%(2) at 05/14/16

Schedule of Long-Term Debt (continued) Outstanding at 12/31/15

(Dollars in millions) Sempra South American Utilities(3) Other long-term debt (unsecured): Chilquinta Energía 4.25% Series B Bonds payable 2014 through October 30, 2030(1) Luz del Sur Bank loans 5.05% to 6.7% payable 2016 through December 2018 Notes at 4.75% to 8.75% payable 2014 through September 2029 Other bonds at 3.77% to 4.61% payable 2020 through May 2022 Capital lease

170

75 227

Sempra Renewables Other long-term debt (secured by project assets): Loan at variable rates (2.24% at December 31, 2015) payable 2012 through December 2028, except for $69 at 4.54% after floating-to-fixed rate swaps effective June 2012(1)

91

Sempra Natural Gas First mortgage bonds (Mobile Gas, secured by plant assets): 4.14% September 30, 2021 5% September 30, 2031 Other long-term debt (unsecured unless otherwise noted): Notes at 2.87% to 3.51% October 1, 2016(1) 8.45% Notes payable 2012 through December 2017 (secured by parent guarantee) 3.1% Notes December 30, 2018 (secured by plant assets)(1)

(3)

100.00%

20 42 19 11 5

Total long-term debt outstanding Current portion of long-term debt Unamortized discount on long-term debt Unamortized premium on long-term debt Unamortized debt issuance costs Total (2)

100.00%

136 292 8 6

Sempra Mexico(3) Other long-term debt (unsecured): Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency swaps effective February 2013) 6.3% Notes February 2, 2023 (4.12% after cross-currency swap)

(1)

Redemption prices (at 12/31/15 unless otherwise noted)

$

100.00% 100.00%

14,148 (907) (27) 5 (85) 13,134

Callable long-term debt not subject to make-whole provisions. Denominated in Swiss Francs. Redemption price varies based on exchange rate. Amounts at December 31, 2015 include foreign currency fluctuations.

At the option of Sempra Energy, SDG&E and SoCalGas, $810 million of debt is callable subject to premiums at various dates: $34 million in 2016, $7 million in 2017, $173 million in 2018, $7 million in 2019, $7 million in 2020 and $582 million thereafter. In addition, $12.6 billion of bonds are callable subject to make-whole provisions, and the OMEC LLC project financing loan may be prepaid at the borrower's option. Excluding capital lease obligations, build-to-suit lease and market value adjustments for interest rate swaps, maturities of long-term debt are $897 million in 2016, $854 million in 2017, $1.4 billion in 2018, $854 million in 2019, $968 million in 2020 and $8.8 billion thereafter.

14

Reconciliation of Sempra Energy Earnings to Sempra Energy Adjusted Earnings

Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share exclude the following: in 2015, a $36 million gain on the sale of the remaining block of the Mesquite Power plant and $10 million of liquefied natural gas (LNG) liquefaction development expenses; and in 2013, $77 million retroactive impact of the 2012 General Rate Case (GRC) for the full-year 2012. Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share also exclude the following amounts related to San Diego Gas & Electric Company’s (SDG&E) San Onofre Nuclear Generating Station (SONGS): in 2013, a $119 million plant closure loss from the early retirement of SONGS; in 2014, a $21 million charge to adjust the total plant closure loss; and in 2015, a $15 million reduction to the total plant closure loss, primarily due to the California Public Utilities Commission approval of SDG&E’s compliance filing for authorized recovery of its investment in SONGS. Sempra Energy Adjusted Earnings and Adjusted Earnings Per Share are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). 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 2015 to prior and 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. Years ended December 31, (Dollars in millions, except per share amounts)

2015

Sempra Energy Earnings (GAAP)

$

2014

1,349

$

2013

1,161

$

1,001

Exclude: Gain on sale of Mesquite Power block 2

(36)

―

―

Plant closure (adjustment) loss

(15)

21

119

LNG liquefaction development expenses

10

―

―

―

―

(77)

Retroactive impact of 2012 GRC for full-year 2012 Sempra Energy Adjusted Earnings

$

1,308

$

1,182

$

1,043

Diluted earnings per common share: Sempra Energy Earnings (GAAP)

$

5.37

$

4.63

$

4.01

Sempra Energy Adjusted Earnings

$

5.21

$

4.71

$

4.18

Weighted-average number of shares outstanding, diluted (thousands)

250,923

15

250,655

249,332

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16

Selected Financial Data and Comparative Statistics 2013 - 2015

(Dollars in millions) Net income (before preferred dividends and call premium on preferred stock, and including earnings attributable to noncontrolling interest) Earnings attributable to common shares Common dividends to parent Capital expenditures Weighted average rate base Authorized rate of return on: Rate base Common equity Achieved return on common equity

2015 $ $ $ $ $

Years ended December 31, 2014

606 587 300 1,133 7,671

$ $ $ $ $

7.79% 10.30% 11.56%

Electric revenues Residential Commercial Industrial Other

$

Electric revenues in rates CAISO shared transmission revenue - net(1) Other revenues Balancing accounts Total electric revenues

$

Electric volumes (millions of kWhs) Residential Commercial Industrial Other Total Cooling degree days Electric customers at December 31, Residential Commercial Industrial Other Total number of electric customers

1,486 1,508 380 245 3,619 292 213 (405) 3,719

527 507 200 1,100 7,253 7.79% 10.30% 10.61%

$

$

435 404 ― 978 7,244 7.79% 10.30% 9.13%

1,370 1,418 342 220 3,350 162 205 68

$

1,283 1,080 257 163 2,783 268 172 314

3,785

$

3,537

7,143 6,877 2,161 3,735

7,338 6,974 2,067 3,736

7,392 6,722 1,962 3,680

19,916

20,115

19,756

1,722

1,561

908

1,268,684 150,101 466 7,117

1,259,784 149,058 457 7,313

1,252,434 148,039 453 7,478

1,426,368

1,416,612

1,408,404

(1) California Independent System Operator (CAISO) shared transmission revenue changes are primarily due to timing differences offset by corresponding changes in balancing accounts.

17

$ $ $ $ $

2013

Selected Financial Data and Comparative Statistics 2013 - 2015 (continued)

2015

(Dollars in millions, except average cost of natural gas) Natural gas revenues Residential Commercial and industrial Electric generation plants Natural gas revenues in rates Other revenues Balancing accounts Total natural gas revenues

$

$

Natural gas volumes delivered (billion cubic feet) Residential Commercial and industrial Electric generation plants Total Core Noncore Total Average cost of natural gas (per thousand cubic feet)

$

Heating degree days Natural gas customers at December 31, Residential Commercial Off-system sales and transportation Total number of natural gas customers

18

Years ended December 31, 2014 297 110 1 408 40 52 500

$

$

306 116 2 424 40 80 544

$

$

2013 324 111 15 450 42 37 529

24 22 27 73

25 22 26 73

31 24 25 80

42 31 73

43 30 73

50 30 80

4.05

$

5.44

$

4.49

733

698

1,334

839,617 28,530 4,736 872,883

825,913 28,613 12,923 867,449

831,793 28,618 3,746 864,157

Consolidated Statements of Operations

(Dollars in millions) Operating revenues Electric Natural gas Total operating revenues

2015 $

Operating expenses Cost of electric fuel and purchased power Cost of natural gas Operation and maintenance Depreciation and amortization Franchise fees and other taxes Plant closure (adjustment) loss Total operating expenses Operating income

Years ended December 31, 2014

3,719 500 4,219

$

1,151 153 1,017 604 262 (26) 3,161 1,058

Other income (expense), net Allowance for equity funds used during construction Regulatory interest income, net Sundry, net Total other income, net Interest income Interest expense Income before income taxes Income tax expense Net income Earnings attributable to noncontrolling interest Earnings Call premium on preferred stock Preferred dividend requirements Earnings attributable to common shares

$

19

3,785 544 4,329

$

1,309 208 1,076 530 241 6 3,370 959

2013 3,537 529 4,066

1,019 204 1,157 494 210 200 3,284 782

37 3 (4) 36

37 6 (3) 40

39 4 (3) 40

― (204) 890 (284) 606 (19) 587 ― ― 587

― (202) 797 (270) 527 (20) 507 ― ― 507

1 (197) 626 (191) 435 (24) 411 (3) (4) 404

$

$

Consolidated Balance Sheets

(Dollars in millions) Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable - trade, net Accounts receivable - other, net Due from unconsolidated affiliates Income taxes receivable Deferred income taxes Inventories Regulatory balancing accounts - net undercollected Regulatory assets Fixed-price contracts and other derivatives Other Total current assets

$

Other assets: Restricted cash Deferred taxes recoverable in rates Regulatory assets arising from pension and other postretirement benefit obligations Regulatory assets arising from wildfire litigation costs Regulatory assets arising from plant closure Regulatory balancing accounts - undercollected Other regulatory assets Nuclear decommissioning trusts Sundry Total other assets Property, plant and equipment: Property, plant and equipment Less accumulated depreciation and amortization Property, plant and equipment, net Total assets (1)

December 31, 2014(1)

2015

$

20 23 331 17 1 ― ― 75 307 107 53 70 1,004

$

8 8 285 35 1 ― ― 73 711 54 44 125 1,344

2013(1)

$

27 6 266 28 1 32 103 86 556 29 61 75 1,270

― 914

11 824

25 788

180 362 215 ― 220 1,063 301 3,255

171 373 308 ― 234 1,131 246 3,298

106 330 303 161 260 1,034 214 3,221

16,458 (4,202) 12,256 16,515

15,478 (3,860) 11,618 16,260

14,346 (3,500) 10,846 15,337

$

$

As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

20

Consolidated Balance Sheets (continued)

(Dollars in millions) Liabilities and Equity Current liabilities: Short-term debt Accounts payable Due to unconsolidated affiliates Income taxes payable Deferred income taxes Interest payable Accrued compensation and benefits Accrued franchise fees Current portion of long-term debt Asset retirement obligations Fixed-price contracts and other derivatives Customer deposits Other Total current liabilities

2015

$

168 377 55 ― ― 39 129 66 50 99 51 72 101 1,207

December 31, 2014(1)

$

246 441 21 30 53 40 124 71 365 120 40 71 166 1,788

2013(1)

$

59 420 39 ― ― 39 113 52 29 51 38 71 168 1,079

Long-term debt

4,455

4,283

4,485

Deferred credits and other liabilities: Customer advances for construction Pension and other postretirement benefit plan obligations, net of plan assets Deferred income taxes Deferred investment tax credits Regulatory liabilities arising from removal obligations Asset retirement obligations Fixed-price contracts and other derivatives Deferred credits and other Total deferred credits and other liabilities

46 212 2,472 19 1,629 729 106 364 5,577

41 216 2,121 22 1,557 754 153 333 5,197

34 132 2,021 24 1,403 861 175 404 5,054

1,338 3,893 (8) 5,223 53 5,276 16,515

1,338 3,606 (12) 4,932 60 4,992 16,260

1,338 3,299 (9) 4,628 91 4,719 15,337

Equity: Common stock (255 million shares authorized, 117 million shares outstanding) Retained earnings Accumulated other comprehensive income (loss) Total SDG&E shareholder's equity Noncontrolling interest Total equity Total liabilities and equity (1)

$

$

$

As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

21

Consolidated Statements of Cash Flows

(Dollars in millions) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes and investment tax credits Plant closure (adjustment) loss Fixed-price contracts and other derivatives Other Changes in other assets Changes in other liabilities Changes in working capital components: Accounts receivable Due to/from affiliates, net Inventories Other current assets Income taxes Accounts payable Regulatory balancing accounts Interest payable Other current liabilities Net cash provided by operating activities

2015 $

Cash Flows from Investing Activities Expenditures for property, plant and equipment Proceeds from sales by nuclear decommissioning trusts Purchases of nuclear decommissioning trust assets Proceeds from sale of assets Increase in restricted cash Decrease in restricted cash Expenditures related to long-term service agreement Net cash used in investing activities Cash Flows from Financing Activities Common dividends paid Redemption of preferred stock Preferred dividends paid Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) (Decrease) increase in short-term debt, net Capital distributions made by Otay Mesa VIE Other Net cash (used in) provided by financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31

$

Supplemental Disclosure of Cash Flow Information Interest payments, net of amounts capitalized Income tax payments (refunds), net

$

22

Years ended December 31, 2014 606

$

527

2013 $

435

604 195 (26) (4) (16) (122) 13

530 223 6 (6) (23) 191 18

494 171 200 (8) (37) (150) 19

(10) 21 (2) (24) ― (28) 474 (1) (16) 1,664

(47) (10) 4 (16) 35 (23) (208) ― (104) 1,097

(40) 38 (14) 7 (50) 50 (140) 4 (260) 719

(1,133) 577 (526) ― (39) 35 ― (1,086)

(1,100) 601 (609) ― (84) 96 (30) (1,126)

(978) 685 (692) 11 (81) 82 ― (973)

(300) ― ― 444 (547) (131) (30) (2) (566)

(200) ― ― 100 (24) 187 (53) ― 10

― (82) (5) 450 (199) 59 (26) (3) 194

12 8 20

(19) 27 8

(60) 87 27

199 88

$ $

196 (4)

$ $

187 84

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23

Selected Financial Data and Comparative Statistics 2013 - 2015 Years ended December 31, (Dollars in millions, except average cost of natural gas) Net income (before preferred dividends) Earnings attributable to common shares Common dividends to parent Capital expenditures Weighted average rate base Authorized rate of return on: Rate base Common equity Achieved return on common equity

2015 $ $ $ $ $

2014

420 419 50 1,352 4,269

$ $ $ $ $

8.02% 10.10% 14.24%

Natural gas revenues Residential Commercial and industrial Electric generation plants Wholesale Natural gas revenues in rates Other revenues Balancing accounts Total operating revenues

$

$

Natural gas volumes delivered (billion cubic feet) Residential Commercial and industrial Electric generation plants Wholesale Total Core Noncore Total Average cost of natural gas (per thousand cubic feet)

$

Heating degree days Customers at December 31, Residential Commercial Industrial Electric generation plants and wholesale Total number of customers 24

2,052 893 41 27 3,013 181 295 3,489

2013

333 332 100 1,104 3,879

$ $ $ $ $

8.02% 10.10% 12.56% $

$

2,186 1,003 42 24 3,255 103 497 3,855

365 364 50 762 3,499 8.02% 10.10% 15.36%

$

$

2,212 933 44 27 3,216 101 419 3,736

201 375 193 156 925

198 385 211 150 944

236 393 200 170 999

310 615 925

305 639 944

350 649 999

3.18

$

5.06

$

4.08

969

766

1,210

5,621,600 252,861 26,325 48 5,900,834

5,594,129 246,839 26,685 49 5,867,702

5,568,155 246,683 27,007 44 5,841,889

Consolidated Statements of Operations

(Dollars in millions)

2015 $

Operating revenues Operating expenses Cost of natural gas Operation and maintenance Depreciation and amortization Franchise fees and other taxes Total operating expenses Operating income

Years ended December 31, 2014

3,489

$

921 1,370 461 129 2,881 608

Other income (expense), net Allowance for equity funds used during construction Regulatory interest income, net Sundry, net Total other income, net Interest income Interest expense Income before income taxes Income tax expense Net income Preferred dividend requirements Earnings attributable to common shares

$

25

3,855

$

1,449 1,321 431 133 3,334 521

2013 3,736

1,362 1,324 383 128 3,197 539

36 ― (6) 30

26 ― (6) 20

17 1 (7) 11

4 (84) 558 (138) 420 (1) 419

― (69) 472 (139) 333 (1) 332

― (69) 481 (116) 365 (1) 364

$

$

Consolidated Balance Sheets

(Dollars in millions) Assets Current assets: Cash and cash equivalents Accounts receivable - trade, net Accounts receivable - other, net Due from unconsolidated affiliates Income taxes receivable Inventories Regulatory balancing accounts - net undercollected Regulatory assets Other Total current assets

December 31, (1) 2014

2015

$

58 635 99 48 ― 79 ― 7 40 966

Other assets: Regulatory assets arising from pension obligations Deferred taxes recoverable in rates Other regulatory assets Insurance receivable for Aliso Canyon costs Sundry Total other assets Property, plant and equipment: Property, plant and equipment Less accumulated depreciation and amortization Property, plant and equipment, net Total assets

$

$

85 586 51 4 5 181 35 5 36 988

699 330 306 325 207 1,867

617 195 277 ― 125 1,214

14,171 (4,900) 9,271 12,104

12,886 (4,642) 8,244 10,446

$

2013(1)

$

27 595 97 21 25 69 ― 5 34 873

326 110 152 ― 210 798

$

11,831 (4,364) 7,467 9,138

(1) As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

26

Consolidated Balance Sheets (continued)

(Dollars in millions) Liabilities and Shareholders' Equity Current liabilities: Short-term debt Accounts payable - trade Accounts payable - other Due to unconsolidated affiliate Income taxes payable Deferred income taxes Accrued compensation and benefits Regulatory balancing accounts - net overcollected Current portion of long-term debt Customer deposits Reserve for Aliso Canyon costs Other Total current liabilities

December 31, (1) 2014

2015

$

― 422 76 ― 3 ― 160 34 9 76 274 184 1,238

$

50 532 88 13 ― 53 129 ― ― 75 ― 149 1,089

2013(1)

$

42 346 79 16 ― 45 141 91 252 75 ― 125 1,212

Long-term debt

2,481

1,891

1,150

Deferred credits and other liabilities: Customer advances for construction Pension obligation, net of plan assets Deferred income taxes Deferred investment tax credits Regulatory liabilities arising from removal obligations Asset retirement obligations Deferred credits and other Total deferred credits and other liabilities

103 716 1,532 14 1,145 1,354 372 5,236

102 633 1,212 16 1,167 1,255 300 4,685

108 339 993 18 1,205 1,182 382 4,227

22

22

22

Shareholders' equity: Preferred stock Common stock (100 million shares authorized; 91 million shares outstanding; no par value) Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity

$

866 2,280 (19) 3,149 12,104

$

866 1,911 (18) 2,781 10,446

$

866 1,679 (18) 2,549 9,138

(1) As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

27

Consolidated Statements of Cash Flows

(Dollars in millions) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes and investment tax credits Other Insurance receivable for Aliso Canyon costs Changes in other assets Changes in other liabilities Changes in working capital components: Accounts receivable Inventories Other current assets Accounts payable Income taxes Due to/from affiliates, net Regulatory balancing accounts Customer deposits Reserve for Aliso Canyon costs Other current liabilities Net cash provided by operating activities

2015 $

Years ended December 31, 2014 420

$

333

$

2013 365

461 127 (11) (325) (91) (7)

431 130 (7) ― (131) 29

383 117 (5) ― (52) (4)

(90) 102 8 (143) 8 (11) 112 1 274 45 880

30 (113) (3) 156 17 (1) (109) ― ― 3 765

(113) 82 3 (54) 51 (57) (58) (1) ― 24 681

(1,352) (50) (1,402)

(1,104) ― (1,104)

(762) 34 (728)

Cash Flows from Financing Activities Common dividends paid Preferred dividends paid Issuances of long-term debt Payments on long-term debt Debt issuance costs (Decrease) increase in short-term debt, net Net cash provided by (used in) financing activities

(50) (1) 599 ― (3) (50) 495

(100) (1) 747 (250) (7) 8 397

(50) (1) ― ― ― 42 (9)

(Decrease) increase in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31

(27) 85 58

58 27 85

(56) 83 27

Cash Flows from Investing Activities Expenditures for property, plant and equipment (Increase) decrease in loans to affiliate, net Net cash used in investing activities

$

Supplemental Disclosure of Cash Flow Information Interest payments, net of amounts capitalized Income tax payments (refunds), net

$

28

79 1

$

$

62 (10)

$

$

65 (52)

Selected Financial Data and Comparative Statistics 2013 - 2015

(Dollars in millions) Earnings Sempra South American Utilities(1) Sempra Mexico Total

2015 $ $

Natural gas distribution operations Volumes delivered (billion cubic feet) Sempra Mexico Customers (in thousands, at December 31) Sempra Mexico Electric distribution operations Volumes (millions of kWhs) Peru Chile Total Customers (in thousands, at December 31) Peru Chile Total Power Sold Volumes (millions of kWhs) Sempra Mexico (1)

Years ended December 31, 2014 175 213 388

$ $

172 192 364

2013

$ $

153 122 275

25

24

24

113

106

99

7,549 2,887 10,436

7,287 2,944 10,231

6,984 2,856 9,840

1,053 672 1,725

1,029 657 1,686

996 640 1,636

3,821

4,225

3,752

In 2013, includes $11 million equity losses ($7 million impairment and $4 million loss on sale) associated with Sempra South American Utilities' Argentine investments, which were sold in the second quarter of 2013.

Sempra International is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra International is not regulated by the California Public Utilities Commission.

29

Sempra South American Utilities Consolidated Statements of Operations

2015

(Dollars in millions) Revenues Utilities - electric Energy-related businesses Total revenues Expenses and other income Utilities: Cost of electric fuel and purchased power Energy-related businesses: Cost of sales Operation and maintenance Depreciation and amortization Other operating income (expense) Other income, net Interest income Interest expense Income before income taxes and equity losses of certain unconsolidated subsidiaries Income tax expense Equity losses, net of income tax Net income Earnings attributable to noncontrolling interests Earnings

$

$

Years ended December 31, 2014

1,447 97 1,544

$

1,434 100 1,534

$

2013 1,383 112 1,495

(985)

(972)

(913)

(86) (160) (50) ― 22 19 (32)

(79) (173) (55) 1 30 14 (33)

(84) (170) (59) (2) 9 14 (27)

272 (67) (4) 201 (26) 175

267 (58) (4) 205 (33) 172

263 (67) (15) 181 (28) 153

$

$

Sempra South American Utilities is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra South American Utilities is not regulated by the California Public Utilities Commission.

30

Sempra South American Utilities Consolidated Balance Sheets

(Dollars in millions) Assets

December 31, 2014

2015

Current assets: Cash and cash equivalents Accounts receivable Due from unconsolidated affiliates Deferred income taxes Inventories Other Total current assets

$

Due from unconsolidated affiliates Goodwill and other intangible assets Property, plant and equipment, net Other Total assets

$

Liabilities and Equity Current liabilities: Short-term debt Accounts payable Due to unconsolidated affiliates Income taxes payable Current portion of long-term debt Other Total current liabilities

$

233 253 237 ― 30 10 763 72 724 1,656 20 3,235

28 168 63 5 64 69 397

$

$

$

338 240 116 2 33 6 735 41 836 1,744 23 3,379

24 128 63 14 41 65 335

2013

$

$

$

384 257 26 80 40 7 794 15 929 1,777 16 3,531

55 153 114 12 55 70 459

Long-term debt

552

603

523

Other noncurrent liabilities: Due to unconsolidated affiliates Deferred income taxes Other liabilities Total other noncurrent liabilities

67 131 43 241

355 137 49 541

329 159 62 550

1,856 189 2,045 3,235

1,696 204 1,900 3,379

1,747 252 1,999 3,531

Equity Shareholders' equity Noncontrolling interests Total equity Total liabilities and equity

$

$

$

Sempra South American Utilities is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra South American Utilities is not regulated by the California Public Utilities Commission.

31

Sempra South American Utilities Consolidated Statements of Cash Flows

(Dollars in millions) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Equity losses Other Changes in other assets Changes in other liabilities Net change in working capital components Net cash provided by operating activities

2015 $

Years ended December 31, 2014 201

$

205

$

2013 181

50 17 4 5 (5) ― (44) 228

55 (6) 4 16 (14) ― (35) 225

59 3 15 1 (7) 5 (31) 226

Cash Flows from Investing Activities Expenditures for property, plant and equipment Proceeds from sale of investments (Increase) decrease in loans to affiliates, net Decrease in restricted cash Increase in restricted cash Net cash (used in) provided by investing activities

(154) ― (151) 8 (8) (305)

(174) ― (26) 9 (9) (200)

(200) 13 344 8 (9) 156

Cash Flows from Financing Activities Dividends paid Capital contributed Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) Increase in short-term debt, net Increase (decrease) in loans from affiliates, net Purchase of noncontrolling interests Distributions to noncontrolling interests Net cash used in financing activities

(75) ― 123 (80) 12 16 ― (14) (18)

(13) ― 291 (219) ― (35) (74) (21) (71)

(222) 99 191 (168) 1 72 ― (22) (49)

Effect of exchange rate changes on cash and cash equivalents

(10)

―

(105) 338 233

(46) 384 338

(Decrease) increase in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31

$

$

(3)

$

330 54 384

Sempra South American Utilities is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra South American Utilities is not regulated by the California Public Utilities Commission. 32

Sempra Mexico Consolidated Statements of Operations

2015

(Dollars in millions)

Years ended December 31, 2014

2013

Revenues Utility – natural gas

$

Energy-related businesses Total revenues

81

$

109

$

97

588

709

578

669

818

675

(49)

(74)

(63)

(221) (15) (126) (70) ― (4) 20 7 (23)

(350) (14) (121) (64) 19 (3) 4 4 (17)

(253) (10) (124) (63) ― (2) 24 2 (17)

188 (11) 89 266 (53) 213

202 (5) 42 239 (47) 192

169 (60) 39 148 (26) 122

Expenses and other income Utility: Cost of natural gas Energy-related businesses: Cost of natural gas, electric fuel and purchased power Other cost of sales Operation and maintenance Depreciation and amortization Gain on sale of equity interest Other taxes Other income, net Interest income Interest expense Income before income taxes and equity earnings of certain unconsolidated subsidiaries Income tax expense Equity earnings, net of income tax Net income Earnings attributable to noncontrolling interests Earnings attributable to common shares (1)

(1)

$

$

$

In the first quarter of 2013, Sempra Energy’s subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), completed a private offering in the U.S. and outside of Mexico and a concurrent public offering in Mexico of common stock. The aggregate shares of common stock sold in the offerings represent approximately 18.9 percent of IEnova’s outstanding ownership interest. IEnova is reported within the Sempra Mexico reportable segment.

Sempra Mexico is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Mexico is not regulated by the California Public Utilities Commission.

33

Sempra Mexico Consolidated Balance Sheets

(Dollars in millions) Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable Due from unconsolidated affiliates Income taxes receivable Deferred income taxes Inventories Fixed-price contracts and other derivatives Other Total current assets

December 31, (1) 2014

2015

$

Restricted cash Investments Goodwill and other intangible assets Due from unconsolidated affiliates Deferred income taxes Fixed-price contracts and other derivatives Property, plant and equipment, net Other Total assets

$

Liabilities and Equity Current liabilities: Short-term debt Accounts payable Due to unconsolidated affiliates Current portion of long-term debt Income taxes payable Other Total current liabilities

$

60 ― 88 133 6 ― 13 2 22 324 20 519 30 111 89 ― 2,642 48 3,783

91 44 476 ― ― 45 656

$

$

$

114 ― 87 97 26 12 18 12 52 418 18 434 30 147 ― 27 2,387 25 3,486

145 60 139 51 ― 77 472

2013(1)

$

$

$

311 12 104 93 ― ― 12 18 23 573 ― 379 30 ― ― 22 2,218 21 3,243

― 51 128 ― 16 56 251

Long-term debt

300

351

395

Other noncurrent liabilities: Due to unconsolidated affiliates Deferred income taxes Fixed-price contracts and other derivatives Other Total other noncurrent liabilities

99 145 133 48 425

81 108 100 40 329

65 149 54 39 307

1,934 468 2,402 3,783

1,882 452 2,334 3,486

1,848 442 2,290 3,243

Equity: Sempra Mexico shareholders' equity Noncontrolling interests Total equity Total liabilities and equity (1)

$

$

$

As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

Sempra Mexico is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Mexico is not regulated by the California Public Utilities Commission.

34

Sempra Mexico Consolidated Statements of Cash Flows

(Dollars in millions) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Equity earnings Fixed-price contracts and other derivatives Gain on sale of equity interest Foreign currency loss Other Changes in other assets Changes in other liabilities Net changes in working capital components Net cash provided by operating activities

2015 $

Years ended December 31, 2014 266

$

239

$

2013 148

70 (47) (89) 4 ― 14 9 5 (22) (77) 133

64 (81) (42) ― (19) 18 4 (18) ― (46) 119

63 16 (39) 4 ― 2 (16) (12) (1) (41) 124

Cash Flows from Investing Activities Expenditures for property, plant and equipment Proceeds from sale of equity interest, net of cash sold Decrease (increase) in loans to affiliates, net Decrease in restricted cash Increase in restricted cash Other Net cash used in investing activities

(302) ― 41 29 (31) (2) (265)

(325) 24 (107) 26 (34) (6) (422)

(371) ― 20 15 (27) (7) (370)

Cash Flows from Financing Activities Issuances of debt (maturities greater than 90 days) Payments on debt (maturities greater than 90 days) Proceeds from sale of noncontrolling interest, net of $25 in offering costs(1) Dividends paid Decrease in short-term debt, net Increase (decrease) in loans from affiliates, net Distributions to noncontrolling interests Other Net cash provided by financing activities

495 (600) ― (138) ― 358 (32) ― 83

277 ― ― (133) ― 11 (31) (11) 113

408 ― 574 (134) (1) (349) (22) (3) 473

(5)

(7)

(1)

(54) 114 60

(197) 311 114

Effect of exchange rate changes on cash and cash equivalents (Decrease) increase in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 (1)

$

$

$

Proceeds from IEnova IPO.

Sempra Mexico is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Mexico is not regulated by the California Public Utilities Commission.

35

226 85 311

Selected Financial Data and Comparative Statistics 2013 - 2015

(Dollars in millions) Earnings Sempra Renewables Sempra Natural Gas Total

2015 $ $

Natural gas distribution operations Volumes delivered (billion cubic feet) Mobile Gas Willmut Gas Total Customers (in thousands, at December 31) Mobile Gas Willmut Gas Total Power Sold Volumes (millions of kWhs) Sempra Renewables(1) (2) Sempra Natural Gas Total

Years ended December 31, 2014 63 44 107

$ $

81 50 131

2013

$

62 64 126

$

47 3 50

38 3 41

40 3 43

85 19 104

86 19 105

87 19 106

2,851 3,129 5,980

2,536 5,309 7,845

2,470 4,328 6,798

(1)

Includes 50 percent of total power sold related to solar and wind projects in which Sempra Energy has 50-percent ownership. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method.

(2)

Sempra Natural Gas sold one 625-megawatt (MW) block of its 1,250-MW Mesquite Power natural gas-fired power plant in February 2013 and the remaining 625MW block in April 2015.

Sempra U.S. Gas & Power is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra U.S. Gas & Power is not regulated by the California Public Utilities Commission.

36

Sempra Renewables Consolidated Statements of Operations

(Dollars in millions) Revenues Expenses and other income Cost of sales Operation and maintenance Depreciation and amortization Gain on sale of equity interests and assets Equity earnings (losses) Other taxes Other income, net Interest income Interest expense Income before income taxes Income tax benefit Earnings/net income

$

Years ended December 31, 2014 2013 $ $ 36 35 82

$

― (50) (6) 8 24 (1) 2 4 (3) 14 49 63

2015

$

― (50) (5) 41 20 (1) 1 1 (5) 37 44 81

$

Sempra Renewables is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Renewables is not regulated by the California Public Utilities Commission.

37

(3) (46) (21) 40 (12) (3) 9 20 (23) 43 19 62

Sempra Renewables Consolidated Balance Sheets

(Dollars in millions) Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable Due from unconsolidated affiliates Income taxes receivable Other Total current assets

$

Investments in unconsolidated affiliates Due from unconsolidated affiliates Property, plant and equipment, net Other Total assets

$

Liabilities and Equity Current liabilities: Accounts payable Due to unconsolidated affiliates Current portion of long-term debt Other Total current liabilities

$

Long-term debt Other noncurrent liabilities: Due to unconsolidated affiliates Deferred income taxes Asset retirement obligations Other Total other noncurrent liabilities Equity Total liabilities and equity (1)

December 31, 2014(1)

2015

$

― 4 2 178 25 4 213 855 11 356 6 1,441

93 46 7 5 151

$

$

$

― 3 3 131 66 3 206 911 6 207 4 1,334

3 144 7 7 161

2013(1)

$

$

$

2 6 16 29 40 3 96 707 ― 370 41 1,214

62 87 7 10 166

79

86

92

― 581 7 11 599

― 518 6 12 536

4 454 6 16 480

612 1,441

$

551 1,334

$

476 1,214

As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

Sempra Renewables is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Renewables is not regulated by the California Public Utilities Commission. 38

Sempra Renewables Consolidated Statements of Cash Flows

(Dollars in millions) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Gain on sale of equity interests and assets Equity (earnings) losses Other Distributions from investments Changes in other assets Changes in other liabilities Net change in working capital components Net cash provided by operating activities

2015 $

Years ended December 31, 2014 2013 63

$

81

$

62

6 64 (8) (24) ― 29 1 ― 129 260

5 79 (41) (20) ― 12 ― 1 (47) 70

21 ― (40) 12 (9) 4 ― 3 (21) 32

Cash Flows from Investing Activities Expenditures for property, plant and equipment Expenditures for investments Proceeds from sale of equity interests and assets, net of cash sold Proceeds from U.S. Treasury grants Distributions from investments Increase in loans to affiliates, net Increase in restricted cash Decrease in restricted cash Net cash (used in) provided by investing activities

(81) (24) 26 ― 15 (88) (22) 21 (153)

(190) (214) 124 ― 11 (38) (25) 22 (310)

(176) (17) 175 238 67 (169) (238) 222 102

Cash Flows from Financing Activities Dividends paid Issuances of long-term debt Payments on long-term debt (Decrease) increase in loans from affiliates, net Other Net cash (used in) provided by financing activities

― 1 (7) (98) (3) (107)

― 169 (7) 72 4 238

(188) 158 (9) (89) (4) (132)

Change in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31

$

― ― ―

$

(2) 2 ―

$

2 ― 2

Sempra Renewables is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Renewables is not regulated by the California Public Utilities Commission. 39

Sempra Natural Gas Consolidated Statements of Operations

2015

(Dollars in millions) Revenues Utilities – natural gas

$

Energy-related businesses Total revenues Expenses and other income Utilities: Cost of natural gas Energy-related businesses: Cost of natural gas, electric fuel and purchased power Other cost of sales Operation and maintenance Depreciation and amortization Gain on sale of assets Other taxes Equity earnings Other income, net Interest expense Interest income Income before income taxes Income tax (expense) benefit Net income Losses (earnings) attributable to noncontrolling interests Earnings

$

Years ended December 31, 2014 103

$

113

2013

$

550 653

866 979

799 908

(31)

(44)

(35)

(375) (79) (177) (49) 61 (19) 84 ― (72) 75 71 (28) 43 1 44

(617) (89) (181) (61) ― (24) 62 2 (111) 115 31 20 51 (1) 50

(497) (91) (167) (81) 74 (28) 47 3 (116) 88 105 (40) 65 (1) 64

$

$

Sempra Natural Gas is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Natural Gas is not regulated by the California Public Utilities Commission. 40

109

Sempra Natural Gas Consolidated Balance Sheets

(Dollars in millions) Assets Current assets: Cash and cash equivalents Accounts receivable Due from unconsolidated affiliates Income taxes receivable Inventories Fixed-price contracts and other derivatives Asset held for sale, power plant Other Total current assets

December 31, (1) 2014

2015

$

Investments Goodwill Other intangible assets Deferred income taxes Due from unconsolidated affiliates Property, plant and equipment, net Other assets

20 48 606 41 98 20 ― 12 845

$

1,460 72 397 31 1,023 1,657 81

Total assets

$

Liabilities and Equity Current liabilities: Accounts payable Due to unconsolidated affiliates Current portion of long-term debt Other Total current liabilities

$

5 105 260 102 89 28 293 15 897

2013(1)

$

1,424 72 407 ― 1,985 1,599 51

5,566

$

6,435

73 109 25 68 275

$

85 101 5 107 298

8 173 543 54 78 16 ― 20 892 406 72 418 ― 2,604 2,747 60

$

$

7,199

87 106 5 66 264

72

228

232

Other noncurrent liabilities: Due to unconsolidated affiliates Deferred income taxes Other liabilities Total other noncurrent liabilities

2,427 457 105 2,989

3,197 445 116 3,758

3,163 416 53 3,632

Equity Shareholder's equity Noncontrolling interests Total equity

2,190 40 2,230

2,113 38 2,151

3,034 37 3,071

Long-term debt

Total liabilities and equity

$

5,566

$

6,435

$

7,199

(1) As adjusted for the retrospective adoption of Accounting Standards Update 2015-03, "Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."

Sempra Natural Gas is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Natural Gas is not regulated by the California Public Utilities Commission.

41

Sempra Natural Gas Consolidated Statements of Cash Flows

(Dollars in millions) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization Gain on sale of assets Deferred income taxes Equity earnings Fixed-price contracts and other derivatives Other Distributions from investments Changes in other assets Changes in other liabilities Net change in working capital components Net cash provided by (used in) operating activities

2015 $

Cash Flows from Investing Activities Expenditures for property, plant and equipment Expenditures for investments Proceeds from sale of assets Distributions from investments Increase in loans to affiliates, net Other Net cash used in investing activities Cash Flows from Financing Activities Capital contributions Dividends paid Issuances of long-term debt Payments on long-term debt Increase in loans from affiliates, net Other Net cash provided by financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31

$

Years ended December 31, 2014 43

$

51

2013

$

65

49 (61) 7 (84) (10) 23 54 (26) ― 68 63

61 ― 52 (62) (12) ― 49 (18) (1) 20 140

81 (74) 31 (47) (7) 8 68 (6) (1) (312) (194)

(87) (173) 347 ― (461) 2 (372)

(212) (18) 1 ― (563) 70 (722)

(83) (4) 371 31 (1,692) (3) (1,380)

128 (72) 2 (60) 326 ― 324

3 (33) ― (5) 614 ― 579

3 (183) 8 (4) 1,770 (17) 1,577

15 5 20

$

(3) 8 5

$

Sempra Natural Gas is not the same company as the California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and Sempra Natural Gas is not regulated by the California Public Utilities Commission. 42

3 5 8

Shareholder Information and Research Coverage

Corporate Headquarters

Research Coverage

Sempra Energy 488 8th Avenue San Diego, California 92101-7123

The following firms provide equity investment research coverage of Sempra Energy: Argus Research Company Bank of America Merrill Lynch Barclays Capital, Inc. BMO Capital Markets Corp. Citi Investment Research & Analysis Evercore ISI Goldman Sachs Group, Inc. J.P. Morgan Securities LLC Morgan Stanley & Co. LLC Morningstar, Inc. RBC Capital Markets Wealth Management Tudor, Pickering, Holt & Co., LLC UBS Securities LLC U.S. Capital Advisors, LLC Value Line, Inc. Wells Fargo Securities, LLC Wolfe Research, LLC

Transfer Agent American Stock Transfer & Trust Company, LLC 6201 15th Avenue Brooklyn, NY 11219 Telephone: 877-773-6772

Annual Report Sempra Energy’s Annual Report to the Securities and Exchange Commission on Form 10-K is available to shareholders at no charge through the Investors section of Sempra Energy's website (www.sempra.com) or by writing to Shareholder Services at our Corporate Headquarters.

 

 

43

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