Sempra Energy 2nd Quarter Earnings

1
Sempra Energy2nd Quarter Earnings

• Steve Baum
• Vice Chairman, President CEO
• Neal Schmale
• Executive Vice President CFO
• Frank Ault
• Vice President Controller

July 27, 2000
2
Safe Harbor Statement

• This presentation contains statements that are
  not historical fact and constitute
  forward-looking statements within the meaning
  of Section 21E of the Securities Exchange Act of
  1934, as amended (the Exchange Act).. When we
  use words like believes, expects,
  anticipates, intends, plans, estimates,
  may, should or similar expressions, or when
  we discuss our strategy or plans, we are making
  forward-looking statements.
• Forward-looking statements are not guarantees of
  performance. They involve risks, uncertainties
  and assumptions that could cause the Companys
  future results to differ materially from those
  expressed in these forward-looking statements.
  Many of the factors that will determine these
  results are beyond the Companys ability to
  control or predict. These statements are
  necessarily based upon various assumptions
  involving judgments with respect to the future.
  These risk and uncertainties, include among
  others national, international, regional and
  local economic, competitive and regulatory
  conditions and developments capital market
  conditions, inflation rates and interest rates
  energy markets, including the timing and extent
  of changes in commodity prices weather
  conditions business, regulatory and legal
  decisions the pace of deregulation of retail
  natural gas and electricity delivery
  technological developments the timing and
  success of business development efforts and
  other uncertainties, all of which are difficult
  to predict and many of which are beyond the
  Companys control. These risks and uncertainties
  are further discussed in the Companys Annual
  Report on Form 10-K for the fiscal year ended
  December 31, 1999.

3
Second Quarter Net Income

• Net income up 34
• Unregulated units provide 21 of net income
• Trading and International are major contributors

1st Qtr
2nd Qtr
4
Recent Accomplishments

• Trading reports net income of 40 million
• International net income up by 9 million
• Retail CI revenues doubled
• Energy Americas customer count at 425,000
• Share repurchase program activated

5
California Update

• Electric commodity rates are passed through to
  customers with no mark up
• SDGE recommended solutions
• Implement Western region wholesale price cap
• Install time-of-use meters for all customers
• Aggregate small customers

6
Earnings by Business Unit
7
Sempra Energy Trading

• Net income increased 37 million
• Physical natural gas volume increased by 91
• Value at risk remains low at 6 million

2nd Qtr Margin
In Millions
8
Sempra Energy International

• Successfully exporting our utility knowledge
  internationally
• Increasing our interests in Argentina
• North Baja Pipeline well received
• Rosarito Pipeline complete

In Millions
9
Conclusion

• Current earnings outlook remains 1.95
• Trading earnings based on volatile market
• California utilities remain flat to slightly down
• Growth goal of 8 to 10 achievable

Measure us as a company that sets realistic
goals and achieves them