Sempra (SRE) Options

SRE

I like it

$SRE Sempra Energy posts statement on Cameron development

Sempra Energy (NYSE:SRE) updates on the new Cameron LNG agreement with McDermott and Chiyoda for three liquefaction trains.

"We believe it is reasonable to expect that the overall economics of Cameron LNG will not significantly change as a result of this agreement.

Sempra Energy's projected share of full-year run-rate earnings from the first three trains at Cameron LNG continues to range between $400 million and $450 million annually."

"Cameron LNG Phase 1 is one of five LNG export projects Sempra Energy is developing in North America: Cameron LNG Phase 2, previously authorized by FERC, encompasses up to two additional liquefaction trains and up to two additional LNG storage tanks, Port Arthur LNG in Texas and Energía Costa Azul (NYSE:ECA) LNG Phase 1 and Phase 2 in Mexico."

Sempra Energy (SRE) indirectly owns 50.2% of Cameron LNG.

Are you saying they have net income of $57 million on revenues of $2.7 billion? That seems abysmal.

A visual shock of Sempra Energy Q3 Earnings

Sempra Energy reported a plunge in 3Q17 earnings due to impairment of wildfire regulatory asset and last year's remeasurement gain of equity method investment in IEnova Pipelines.

Net income was $57 million or $0.22 per share from $622 million or $2.46 per share last year. Revenue grew 6% to $2.7 billion. Adjusted EPS increased 2% to $1.04.

A graphical representation of the earnings alphastreet.com/b18f6c58

Heat wave to test Southern California natural gas supplies

The heat wave sweeping the western U.S. will offer the first big test of the summer for the natural gas market in Southern California, where supplies have been limited since the leak at the massive Aliso Canyon storage field.

Regulators have been warning for months that Southern California could be at risk of energy shortages with Sempra Energy’s (SRE -0.3%) Aliso Canyon field largely offline following a leak that was plugged there last year.

Higher prices will be needed to attract gas flows into California as the heat will also boost demand by generators serving customers from west Texas to Arizona, says Genscape's director of its west coast power desk, which is "going to cause some problems with getting gas to units out in Southern California."

The premium for wholesale gas in the Los Angeles area relative to the U.S. benchmark Henry Hub in Louisiana yesterday reached the highest since December 2015.

The FERC approves construction of a pipeline project that will supply natural gas to Sempra Energy's (SRE +0.9%) Cameron LNG export facility in southwest Louisiana

The Cameron Access Project by Columbia Pipeline Group (CPGX -1.6%) and Columbia Pipeline Partners (CPPL -2.3%) involves an investment of ~$310M; construction is expected to begin in spring 2016, with service starting in Q1 2018.

Sempra Energy (NYSE:SRE) says it plans to pursue the formation of an MLP to be called Sempra Partners LP.

Sempra Energy (NYSE:SRE) says it has signed an MOU with Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY) to begin discussions and assessments for the potential development of Sempra LNG's proposed Port Arthur liquefaction project in Port Arthur, Tex.

$SRE DD Notes ~ http://www.ddnotesmaker.com/SRE

bullish

$SRE recent news/filings

## source: finance.yahoo.com

Thu, 18 Dec 2014 18:00:00 GMT ~ SDG&E's Sunrise Powerlink Reaches 1,000 Megawatt Renewable Energy Goal

[PR Newswire] - SAN DIEGO, Dec. 18, 2014 /PRNewswire/ -- San Diego Gas & Electric (SDG&E) announced today that more than 1,000 megawatts (MW) of renewable power is being delivered to the San Diego region made possible by the Sunrise Powerlink transmission line. Before the nearly $1.9 billion infrastructure project was approved, SDG&E pledged that Sunrise would be used to deliver substantial amounts of Imperial Valley renewable power to the California market. The 500-kV Sunrise Powerlink, which was completed in 2012, connects the Imperial Valley Substation in Imperial County to the Sycamore Canyon Substation in San Diego County. The recent addition of the 150-MW Solar Gen 2 Imperial Valley solar project now brings to more than 1,000 MW the total amount of solar and wind power being transmitted to SDG&E customers from the Imperial Valley.

read full: http://finance.yahoo.com/news/sdg-es-sunrise-powerlink-reaches-180000159.html
*********************************************************

Wed, 17 Dec 2014 16:00:00 GMT ~ Sempra U.S. Gas & Power Wins 2014 Platts Global Energy Award

[PR Newswire] - SAN DIEGO, Dec. 17, 2014 /PRNewswire/ -- Sempra U.S. Gas & Power received the Industry Leadership – Electricity Generation award at the 2014 Platts Global Energy Awards this month in New York. Hosted by ...

read full: http://finance.yahoo.com/news/sempra-u-gas-power-wins-160000192.html
*********************************************************

Mon, 15 Dec 2014 21:44:30 GMT ~ Where is Santa rally?


read full: http://finance.yahoo.com/tumblr/blog-where-is-santa-rally-214432485.html
*********************************************************

Mon, 15 Dec 2014 14:23:00 GMT ~ Will Sempra Energy (SRE) Stock React Today to This Analyst Action?


read full: http://www.thestreet.com/story/12985175/1/will-sempra-energy-sre-stock-react-today-to-this-analyst-action.html?puc=yahoo&cm_ven=YAHOO
*********************************************************

Tue, 09 Dec 2014 19:35:13 GMT ~ Sempra Energy Declares Common Dividend

[at noodls] - SAN DIEGO , Dec. 9, 2014 /PRNewswire/ -- The board of directors of Sempra Energy (NYSE:SRE) today declared a quarterly dividend of $0.66 per share of common stock. The current dividend is payable Jan. ...

read full: http://www.noodls.com/view/DC861BBDA42E8CDE77E60A8DC10229A42BD63E89
*********************************************************


$SRE charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com


$SRE company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/SRE/company-info
Ticker: $SRE
OTC Market Place: Not Available
CIK code: 0001032208
Company name: Sempra Energy
Company website: http://www.sempra.com
Incorporated In: CA, USA


$SRE share structure

## source: otcmarkets.com

Market Value: $28,280,628,195 a/o Dec 26, 2014
Shares Outstanding: 246,218,250 a/o Oct 31, 2014
Float: Not Available
Authorized Shares: Not Available
Par Value: No Par Value
$SRE extra dd links

Company name: Sempra Energy
Company website: http://www.sempra.com

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/SRE/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/SRE/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=SRE+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=SRE+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=SRE+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/SRE/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/SRE/news - http://finance.yahoo.com/q/h?s=SRE+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/SRE/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/SRE/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/SRE/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/SRE/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/SRE/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/SRE/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/SRE/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/SRE/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=SRE+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/SRE
DTCC (dtcc.com): http://search2.dtcc.com/?q=Sempra+Energy&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Sempra+Energy
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Sempra+Energy&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.sempra.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.sempra.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.sempra.com

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/SRE/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/SRE
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/SRE/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/SRE/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/SRE/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001032208&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/SRE/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/SRE/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/SRE/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/SRE/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=SRE&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=SRE
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/SRE/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=SRE+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=SRE+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=SRE
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=SRE
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=SRE+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/SRE/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=SRE+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/SRE.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=SRE
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/SRE/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/SRE/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/SRE/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/SRE/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/SRE
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/SRE
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/SRE:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=SRE
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=SRE



$SRE DD Notes ~ http://www.ddnotesmaker.com/SRE

~ Tuesday! $SRE ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $SRE ~ Earnings expected on Tuesday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=SRE&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=SRE&p=W&b=3&g=0&id=p54550695994



~ Google Finance: http://www.google.com/finance?q=SRE
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=SRE#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=SRE+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=SRE
Finviz: http://finviz.com/quote.ashx?t=SRE
~ BusyStock: http://busystock.com/i.php?s=SRE&v=2


<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=SRE >>>>>>



http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.

$70 within sight?
I think so. Actually, I hope so, got a boat load.
Oh S*&%T, now I'm pumping ?
GlTA.

SRE. Sempra is sold on solar
Company expanding Nevada photovoltaic operations

http://www3.signonsandiego.com/stories/2009/apr/16/1b16solar213337-sempra-sold-solar/?uniontrib

By Onell R. Soto


STAFF WRITER
2:00 a.m. April 16, 2009
Sempra Energy unveiled its new solar facility, which uses thin-film technology, outside of Boulder City, Nev. Several measures are being taken to save money in building the facility. (Tiffany Brown / Las Vegas Sun) - Jorge Uribe, a construction supervisor for the project, inspected solar panels at the Boulder City facility. (Sempra)
Sempra Energy says it has proven that it can inexpensively produce solar power and is greatly expanding its photovoltaic power operations in Nevada to supply customers in the Southwest.
“This project will provide the lowest-cost electricity from solar power ever delivered anywhere in the world,” Michael Allman, chief executive of subsidiary Sempra Generation, said yesterday in announcing a nearly five-fold increase in photovoltaic generation.
The San Diego company said that by the end of next year, it will complete construction of a 48-megawatt photovoltaic plant next to two other plants – a 10-megawatt solar facility and a 480-megawatt natural gas generator – that it owns in the desert.
He said the company wants to be the first to own more than 500 megawatts of solar generation. Engineers believe there is the potential for about 300 megawatts of solar next to the gas-fired Mesquite plant it runs west of Phoenix.
Sempra is also working on generating power using large wind turbines in northern Baja.
The Nevada solar plant, to be called Copper Mountain Solar, will power about 30,000 homes at peak production, the company said.
Allman wouldn't say how much the new solar plant will cost to build or how much the electricity it generates will cost. Electricity in California cost, on average, just under 13 cents a kilowatt-hour last year, the federal Energy Information Administration said.
First Solar of Tempe, Ariz., is expected to begin building the 380-acre plant this year. The 10-megawatt plant, which opened last year, took about six months to build.
Allman said costs are low because land is cheap, its nearly 830,000 solar panels will be installed assembly-line style and it is being built next to existing transmission lines. The plant will use thin-film technology, which produces less power per square inch, but is cheaper to manufacture.
The solar power will still be more expensive than the electricity generated by burning natural gas next door, Sempra said.
The company hasn't decided who will receive the power from the new 48-megawatt plant in Boulder City, Nev., about 40 miles southeast of Las Vegas.
It is talking with utilities in California, Nevada and Arizona, where government mandates are requiring that an ever-larger share of electricity comes from sources that don't burn fossil fuel.
Sempra also owns San Diego Gas & Electric, but the utility is operated independently from Sempra Generation. While SDG&E says it is looking to buy solar power, it's unclear whether it would make a deal with its sister company.
Such deals have to be done at arm's length through a bidding process, said SDG&E spokeswoman Jennifer Ramp.
To meet state mandates, SDG&E is counting on receiving 900 megawatts from Stirling Energy Systems of Phoenix. That company is working on a massive solar plant in Imperial County using solar-powered engines – a technology that has never been proven at large scale.
The utility is well behind meeting a state requirement that it get 20 percent of its power from renewable sources by 2010.
“SDG&E needs to get further down the renewable path,” said Mark Bachman, an analyst with Pacific Crest Securities, in San Francisco.
Pacific Gas & Electric in Northern California has a 20-year deal to purchase power from the 10-megawatt plant in Boulder City, where energy zoning has led to the development and planning of large solar plants.
On Tuesday night, Boulder City approved a lease of 1,000 acres to another company, NextLight, for a 100-megawatt photovoltaic plant.
And a Spanish-owned company, Acciona, operates a 68-megawatt solar plant that generates electricity by heating oil that then boils water to run a steam turbine.
In addition, much larger plants are in the works in California, including a 550-megawatt photovoltaic plant being planned for San Luis Obispo County. PG&E will buy power from that plant, also being built by First Solar.
Onell Soto: (619) 293-1280; onell.soto@uniontrib.com

Sempra filled the gap from mid Jan...current short-term chart pattern is bullish...

Double top or inverse head and shoulder pattern forming?

Exemplary Sempra Energy
Sempra Energy (SRE: NYSE)
By Banc of America Securities ($60, Nov. 13, 2007)

WE ARE INITIATING COVERAGE OF Sempra Energy with a Buy rating and $72 price target. Despite its rally from recent lows, we believe Sempra represents a compelling investment opportunity, given its transparent long-term growth opportunity, reduced risk profile and potential to monetize assets through a master limited partnership.

Long-term growth projects are set to drive an earnings-per-share compounded annual growth rate of 7%-8% through 2011. Importantly, we believe a large portion of this growth will come from fairly predictable earnings streams (utilities, pipeline, storage and liquefied natural gas [LNG] receipt terminal fees). In line with our industry thesis, we favor transparent project-driven growth.

Sempra's announced Sempra Commodities joint venture with Royal Bank of Scotland Group (expected to close in the first quarter of 2008) lowers Sempra's risk profile while maintaining significant upside, in our view. Sempra maintains $1.3 billion of regulatory capital in the joint venture, but will no longer need to tie up its balance sheet, enabling it to pursue other shareholder-friendly initiatives (share buyback and dividend increases), while still sharing in most of the Commodities business upside until it almost doubles from 2006 levels.

Moreover, Sempra earns a 15% return per year on its capital. This return is guaranteed and should the commodities business not generate enough earnings in a given year to pay out the 15% return, there is a "catch-up" provision that enables Sempra to recoup that return in the following year in addition to that year's return. We believe the structure of this joint venture greatly improves Sempra's overall risk profile. The 15% return (or $195 million) can almost be viewed as an annuity.

Potential opportunity to drop new projects into a master limited partnership (MLP) can unlock greater value longer term, in our view. We estimate that, over time, this could add $4-$5 to Sempra's share price.


We forecast EPS of $4.04 in 2007 and EPS of $3.85 in 2008. The lower 2008 EPS reflects the new Commodities joint venture, but we expect growth to resume beyond 2008.

Sempra is currently trading at 15.6 times our 2008 EPS estimate. This is toward the higher end of its five-year trading range, but at the low end of its trading range year-to-date. Our price target of $72 implies a forward price-to-earnings multiple of 18.7 times, at the high end of Sempra's historical trading range. We believe this to be appropriate, given its lower-risk-profile post forming the commodities joint venture and transparent project-driven earnings growth.

Sempra is a diversified-energy company that operates two utilities in Southern California, and a power-generation facility. Sempra also develops and operates natural-gas pipelines (has a 25% interest in Rockies Express), storage, and two LNG receipt terminals. Sempra maintains an interest in a commodities marketing and trading joint venture.

-- Elvira Scotto

MarketGrader currently has a HOLD rating on SEMPRA ENERGY (SRE), based on a final overall grade of 58.1 scored by the company's fundamental analysis. SEMPRA ENERGY scores at the 76th percentile among all 5440 U.S. listed equities currently followed by MarketGrader. Our present rating dates to September 6, 2007, when it was upgraded from a SELL. Relative to the Multi-Utilities sub-industry, which is comprised of 32 companies, SEMPRA ENERGY's grade of 58.1 ranks fourth. The industry grade leader is NATIONAL GRID (NGG) with an overall grade of 80.2. The stock has performed poorly in the last six months in relative terms, down 8.89% compared with the Multi-Utilities sub-industry, down 5.43% and the S&P 500 Index, up 7.58%.

Sempra stays strong through
ahead-of-the-curve investments
By JERAN WITTENSTEIN, The Daily Transcript
Friday, July 7, 2006

Eight years ago when Sempra Energy formed, many observers viewed the company as just another utility with aspirations to diversify into energy services.

Today the company has achieved diversification and is now focused on its next goal: investing in the future.

Drawing from a lucrative commodities trading branch and infrastructure operations outside of its utilities, San Diego Gas and Electric and Southern California Gas Co., Sempra (NYSE: SRE) has managed to recruit more than half of its $11.7 billion in 2005 revenues and nearly three quarters of its $920 million net income from outside its core utility business.

But the real story behind Sempra's success rests in its ability to forecast industry trends through internal research and to invest in a "counter-cyclical" manner that has enabled the company to secure profits by investing in assets other energy companies have passed over. Example: In 2002 Sempra bought Twin Oaks, a coal-fired power plant in Texas for $120 million. Earlier this year the company sold the plant for $480 million.

"(Sempra) bought coal-fired plants when nobody wanted them and they sold them when everybody wanted them," said Rebecca Followill, an analyst with Howard Weil Inc.

"One of the things that has made us successful is that we are not absolutely wedded to any of the assets," said Neal Schmale, president and chief operating officer of Sempra. "We've always said that at the right price, anything's for sale."

"When everybody's doing something it ends up being the wrong thing," observed Schmale with a sly smile. Schmale has been with Sempra for eight years, serving as chief financial officer before he assumed his current position the beginning of this year.

A lean man in his late 50s, Schmale articulated the company's position in a calm and thorough manner in his corner office, overlooking San Diego Bay, in Sempra's Ash Street building, in which the energy company occupies all 19 floors. "When we see very low prices that people are forecasting are going to last forever, we will tend to see that as a buying opportunity."

Sempra's playbook appears to have worked well for the Fortune 500 company. It has achieved an average annual earnings growth of more than 17 percent since 1998. Sempra has 14,000 employees worldwide and a market capitalization of $11.85 billion, making it the second largest company based in the San Diego-area after Qualcomm (Nasdaq: QCOM).

Commodity investment key
Part of Sempra's ability to get in on the ground floor of an investment lies in its relationship with Sempra Commodities, the company's marketing and trading branch. Schmale explains that being able to source physical commodities and transact in the natural gas and electrical markets are critical components of Sempra's business. Analysts agree.

"(The sale of Coleto Creek) is an example of how the energy marketing and trading business has strategic values for Sempra," said Sam Brothwell, director of power and gas equity research at Wachovia Securities. "Having that presence in the energy market provides synergy to other pieces of the business."

Another important resource the trading branch adds to Sempra is cash flow. In fact, in 2005 Sempra Commodities reported net income of $460 million, half of Sempra's total $920 million.

Unlike many commodities operations forced out of business after Wall Street became disillusioned with the business following the collapse of Enron -- and its cash cow commodities branch -- Sempra Commodities has managed to turn a profit for 29 consecutive quarters.

"A lot of (Sempra's) competitors had to leave the business. They were able to grow that business as others were getting out of it," said Brothwell.

Sempra's operation managed to be profitable, according to Schmale, because it maintained a short dated book, transacting on futures positions no more than a few years out. He also added that Sempra Commodities trades oil, natural gas, powers and metals, making it diversified and less subject to risk.

But while Sempra Commodities is a major contributor to Sempra's bottom line, according to Brothwell and other analysts, it has had a negative impact on the company's stock price.

"The earnings from the commodities business are inherently more volatile and risky than those that come from the utility," Brothwell said. "Sempra started out as a utility. And I would say its core investor base remains utility investors. Utility investors are looking for stability and predictability in the earnings stream. You don't find that in a commodities business."

Despite outperforming the Dow Jones industrial average by 50 percent over the last five years, Brothwell described Sempra's stock as "languishing." Yet he added that his target price for Sempra shares is "high $40s, low $50s."

Followill said she currently has a Buy rating on Sempra's stock and has set a target price of $55. At close on Thursday, shares of Sempra were trading at $45.99.

Schmale agreed that investors have been skeptical of the commodities business because of problems that competitors were having in the market, but added he thinks those feelings are going away. "At some point in time, people little by little get more comfortable with the business."

Full article

LNG Facilities a key topic of Wall Street Transcript Exploration & Production Issue
Wednesday February 1, 3:35 pm ET


67 WALL STREET, New York--February 1, 2006--The Wall Street Transcript has just published its Integrated Oil & Gas E&P issue, a report offering a timely review of the sector to serious investors and industry executives. This 106-page feature contains an expert roundtable forum of leading industry analysts, 4 interviews with analysts on specific sectors, and industry commentary through in-depth interviews with top management from 20 firms. The issue also contains an "Off-The-Record" Review of management by management. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
ADVERTISEMENT

Flowers Jewelry Lingerie
Electronics Chocolate Game Consoles



Topics covered: Outlook for oil and gas prices, Drilling activity outlook, Hedging activity, Management performance, Production-sharing contracts, Mergers & Acquisitions, Reinvestment of capital, Environmental issues, Potential of ANWR, Demand destruction, Natural gas exploration, Geopolitical risk factors, Gulf Coast hurricane impact, Supply and demand for LNG, Pipeline sector.

Companies include: Anadarko Petroleum Corporation (APC), Abraxas Petroleum Corporation (ABP), Apache Corporation (APA), ATP Oil & Gas Corporation (ATPG), Berry Petroleum Company (BRY), BP (BP), Burlington Resources, Inc. (BR), Carrizo Oil & Gas Inc. (CRZO), Deep Well Oil & Gas Inc. (DWOG), Devon Energy Corporation (DVN), ConocoPhillips (COP), Encana Corporation (ECA), Equitable Resources (EQT), ExxonMobil (XOM), Murphy Oil (MUR), Petrohawk Energy (HAWK), Ultra Petroleum (UPL), Houston Exploration (THX), Newfield Exploration Company (NFX), Pioneer Natural Resources (PXD), Energy Partners Ltd. (EPL), Goodrich Petroleum Corporation (GDP), Williams Companies (WMB), Questar (STR), Cheniere Energy (LNG), Sempra (SRE), AGL Resources (ATG), Northwest Natural (NWN), Atmos (ATO), KeySpan (KSE), Chevron (CVX), Arctic National Wildlife Refuge (ANWR), Newfield Exploration Company (NFX), NGAS Resources Inc. (NGAS), Occidental Petroleum (OXY), Peyto Energy Trust (PEY:TSX), Range Resources Corporation (RRC), Swift Energy Company (SFY), Petrel Resources PLC (PET.L), Royale Energy Inc. (ROYL), Western Gas Resources INC. (WGR), Storm Cat Energy Corporation (SCU), Vaalco Energy Inc. (EGY), W&T Offshore Inc. (WTI), Tri-Valley Corporation (TIV), Kinder Morgan (KMI) and McMoRan Exploration (MMR). Analysts Include: Raymond Deacon, Harris Nesbitt Corp.; C. Van Levy, Dahlman Rose & Company, Bruce Lanni, A.G. Edwards & Sons, Inc., Fadel Gheit, Oppenheimer & Co., Faisel Kahn, Citigroup Global Markets, Anatol Feygin, Bank of America Securities.

In the following brief excerpt from the 106 page report, Faisel Kahn discusses the outlook for developing LNG facilities and also the prospects for investors.

TWST: In terms of LNG, is the constraining factor the infrastructure or the availability?

Mr. Khan: The constraining factor is building the liquefaction infrastructure. So the stranded gas is certainly there, but the limiting factor is going to be how fast these countries that own the stranded gas are going to be able to bring those facilities online. And that's basically a choice that they can make at any point in time, and it also might be a way for them to maximize the value of their stranded gas. They won't bring too much supply online all at once because that would drive down the price of LNG. There are enough tankers being built and there are enough proposed regas facilities in the US, Europe and the Far East. So the limiting factor clearly is going to be how fast these countries that own the stranded gas are going to want to develop those reserves.

TWST: And that's a political decision?

Mr. Khan: I think it's economic and somewhat political. I think economic because you don't want to open the spigot too much, otherwise the price will come down. In order to maximize the price of LNG, you want to have an adequate supply of liquefaction in the market, but not an excess amount of supply.

TWST: As you say, the US market is stable and attractive. What's the difficulty of getting the offloading facilities built here?

Mr. Khan: We are seeing new regas facilities being built in the US right now. Right now, Cheniere has two facilities under construction in the Gulf of Mexico, one at Sabine and one at Freeport. You have Sempra that's got a facility under construction in Cameron, Louisiana, and one on the West Coast in Mexico. You also have Exxon Mobil (XOM) that received permission to build a facility in Louisiana, and Occidental (OXY) that's building a facility in Texas. So facilities are being developed and built. The existing facilities in the US along the Eastern Seaboard and in Louisiana are also expanding their current facilities. So I don't think that there is going to be a problem in terms of building these regas facilities in the US. In our models, we are saying that by 2010, the US is going to need about 10 Bcf a day of baseload LNG. We think that by 2010, there will probably be a total of 20 Bcf a day of capacity within the Continental US. So there is more than enough regas capacity for the base amount of LNG demand we need.

TWST: As that builds up and you get some excess out, is that going to put pressure on pricing?

Mr. Khan: You've got 10 Bcf a day of demand for LNG, but you're also competing for some of that LNG demand across the globe. What happens is that you start to look at the highest cost natural gas producer in the US and compare his price to produce domestic gas to LNG prices around the globe. There has to be some equilibrium price that is met between this marginal producer and LNG to meet supply in the US, Europe and the Far East. So if we look at the US, that marginal well is going to be in the Gulf of Mexico. Assuming we get our allocation of global LNG supplies in the US, the US is still going to need to continue to drill for natural gas. You are still going to need to drill for gas in the Gulf of Mexico, and finding and development costs in the Gulf are fairly high. So I think a $5.50 or $6 NYMEX gas price would make sense to continue to produce gas out of the Gulf of Mexico. But to the extent that global prices are volatile, that could have a different impact on overall pricing in the US and abroad. So essentially you could continue to have a volatile pricing environment in the US. If there is not enough LNG across the globe, then the US will end up competing for LNG based on price.

TWST: When you talk with investors at this point, what's the level of interest you're finding in this space?

Mr. Khan: Generally, in our specific space, there seems to be a tremendous amount of renewed interest in this sector. After the merchant energy collapse, a lot of investors had basically ignored these names for a long time. But, most of these companies are still major pipeline companies and given the changing dynamics of flow of natural gas in the US, capital needs to be committed to move more gas out of the Rockies and build more LNG facilities in the Gulf of Mexico. Many of the companies in our sector have tremendous capital expansion programs.

If you look at Sempra, they are building two new LNG terminals with a third one in the permitting stage. They're also building a pipeline from the Rockies all the way to the East Coast and that's a $4.5 billion project. Unlike in the past where earnings were driven through trading and marketing, today earnings are growing through expansion capital on the pipeline system, rate base at the gas and electric utilities, and increased drilling.

TWST: So getting back to basics.

Mr. Khan: Yes. They have been back to basics for a long time now. It's back to basics, but now you've got a growing industry. So if you went back to 2002 through 2004, you had declining capital expansion programs every year in the industry. We went from roughly $4 billion in capital expansion programs on the entire North American pipeline system down to less than $2 billion in 2004. As you look at 2005, 2006, 2007, 2008, all those numbers are in a steep incline right now and that should continue throughout the next decade. You have the Mackenzie pipeline getting built from Northern Canada, an Alaska pipeline getting built, LNG terminals getting built and new Rockies pipelines getting built. There is an enormous amount of capital being deployed to this industry.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 106-page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

For Information on subscribing to The Wall Street Transcript, please call 800/246-7673

SDG&E Asks Regulators to Approve Help for Customers
Wednesday October 12, 3:04 pm ET


SAN DIEGO, Oct. 12, 2005 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) has asked the California Public Utilities Commission (CPUC) for expedited approval of two new programs to help its customers manage expected record-high natural gas costs this winter. Utilities nationwide are experiencing increased natural gas costs due to a number of market factors including increased demand and tighter supplies.
``We expect that the nationwide increase in natural gas prices will pose a very real hardship for our customers this winter,'' said Anne Smith, senior vice president of customer services for SDG&E. ``We are making these requests to the CPUC so that we can help buffer our customers from these escalating costs.''

In its first filing, SDG&E has asked for approval of new and streamlined procedures this winter to enable more customers to take advantage of special assistance programs. SDG&E is seeking CPUC approval to:


-- Suspend requirements for certain customer documentation in
order to expedite and increase enrollment in the California
Alternate Rates for Energy program (CARE). CARE provides
a 20-percent energy bill discount to income-qualified
customers.

-- Revise CARE income guidelines for seniors and disabled
customers to enable an additional 18,000 customers to
qualify for the CARE discounts.

-- Expand CARE outreach to include a targeted campaign to
enroll eligible customers by phone.

-- Allow for more replacement of low-efficiency natural
gas forced-air furnaces to provide energy and cost savings
for customers eligible for its Energy Team program. The
Energy Team is an energy-efficiency program that provides
weatherization services at no cost to income-qualified
customers.

ADVERTISEMENT


In its second filing, SDG&E has asked for CPUC approval of a natural gas hedging plan that will help mitigate the impact of severe price spikes this winter. A portion of this insurance plan will be dedicated to its CARE customers. This hedging insurance plan is needed to help protect customers against price run-ups in the event unforeseen conditions in the market should develop.

Given the urgent need for consumer help, driven by the national rise in natural gas prices, SDG&E has asked the CPUC to consider both filing requests at its upcoming meeting Oct. 27, 2005.

Meanwhile, SDG&E has assembled a comprehensive array of programs and services to help consumers prepare for and manage increases in natural gas prices expected this winter. SDG&E is initiating for the winter flexible credit procedures for low-income customers experiencing difficulties paying their bills, including a no shut-off policy for those customers who make minimum payments and the waiver of certain fees, and increasing its contribution to funds to help needy customers pay bills.

SDG&E continues to urge all customers to conserve the use of energy, and take advantage of all available programs and services it offers to assist customers in managing energy costs this winter. Customers can visit SDG&E's Web site, at http://www.sdge.com for information on energy-efficiency rebates, conservation tips and customer-assistance program eligibility and application information. In addition, customers can call SDG&E at (800) 411-SDGE (7343).

SDG&E is a regulated public utility that provides safe and reliable energy service to 3.3 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. The utility's area spans 4,100 square miles. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE - News). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to http://www.sdge.com.

New Orleans passes resolution
in support of Crescent City Power

Today, the Board of Commissioners at the Port of New Orleans passed a resolution in support of Crescent City Power, Sempra Generation’s proposed 1,250-megawatt natural gas-fired power project. This endorsement signals support for the project, which will provide the city of New Orleans with a clean, reliable, safe, competitive and cost-effective power option.

“The project will bring many economic benefits to the community,” says Deborah Reyes Castro, project development manager for Crescent City Power. “The plant would employ more than 300 construction workers over two years and up to 35 full-time positions. The company will also pay about $215 million in property taxes during the 30-year life of the project.”

The project would supply enough power for about 750,000 area homes.

Agreements ahead
Generation signed a three-year, property-option agreement with the port in June 2004. The lease will become final once all permits and power-purchase agreements are in place. Generation is also talking with Entergy New Orleans, and the Louisiana Board of Commissioners has urged Entergy New Orleans to think about using Crescent City Power to meet its energy needs.

2008 start date
Generation will build Crescent City Power at the Port of New Orleans, close to the Mississippi River and Intercoastal Waterway. Construction could begin as early as this year, with an operational start date of 2008.

Sempra Mexico Termoelectrica power unit back
Tue May 24, 2005 07:57 AM ET
NEW YORK, May 24 (Reuters) - Sempra Energy's (SRE.N: Quote, Profile, Research) 600-megawatt Termoelectrica de Mexicali natural gas-fired power station in Mexico returned to service by late Monday, the California Independent System Operator said in a report.
The company curtailed the unit by just 13 MW for planned reasons by late Monday after exiting the weekend shutdown.

The Termoelectrica de Mexicali combined-cycle station is located near Mexicali in Baja California about 115 miles east of San Diego. The station, just south of the California border, can supply electricity to customers in both the United States and Mexico.

One MW powers about 800 homes, according to the North American average.

California-based energy company Sempra's unregulated Sempra Generation subsidiary owns and operates the station.

Sempra subsidiaries own and operate more than 3,500 MW of generating capacity, market energy and other commodities around the world, and transmit and distribute electricity (1.3 million) and natural gas (6.2 million) to customers in California.

Press Release Source: Sempra Energy


Southern California Gas Company, SDG&E Declare Preferred Dividends
Monday May 23, 6:00 pm ET


SAN DIEGO, May 23, 2005 (PRIMEZONE) -- The boards of directors of Southern California Gas Company (The Gas Company) and San Diego Gas & Electric (SDG&E) have declared regular quarterly dividends for the preferred and preference series stock of the companies as follows:

Southern California Gas Company:
6% Preferred Series $0.375 per share
6% Series "A" Preferred $0.375 per share

San Diego Gas & Electric:
Cumulative Preferred 5% Series $0.25 per share
Cumulative Preferred 4.60% Series $0.23 per share
Cumulative Preferred 4.50% Series $0.225 per share
Cumulative Preferred 4.40% Series $0.22 per share
Preference Stock (Cumulative) $1.7625 Series $0.440625 per share
Preference Stock (Cumulative) $1.70 Series $0.425 per share
Preference Stock (Cumulative) $1.82 Series $0.455 per share

Each of the dividends is payable on July 15, 2005, to shareholders of record on June 23, 2005.

The Gas Company is the nation's largest natural gas distribution utility, serving 19.5 million consumers through 5.5 million meters. SDG&E is a regulated public utility that provides service to 3.3 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties.

The Gas Company and SDG&E are regulated subsidiaries of Sempra Energy (NYSE:SRE - News). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company.

Press Release Source: Southern California Gas Company


The Gas Company Working to Ensure Reliable, Long-Term Gas Supplies at Reasonable Cost
Monday May 23, 4:05 pm ET


LOS ANGELES, May 23, 2005 (PRIMEZONE) -- Ensuring a reliable supply of reasonably priced natural gas continues to be a key goal of Southern California Gas Co. (The Gas Company). With domestic gas production not keeping pace with growing demand for natural gas, Gas Company officials say energy conservation, an increased use of renewable energy resources, and new supplies from non-traditional sources, such as liquefied natural gas (LNG), will be required to meet customers' future energy needs.
ADVERTISEMENT


California's long-term economic livelihood will require a growing supply of natural gas. That is because a large number of residents and businesses in the region depend on natural gas to heat their homes and fuel their processes. In fact, the percentage of homes, businesses and electric power plants fueled by natural gas is greater in Southern California than anywhere else in the nation.

The Gas Company believes that customer access to new supply sources and a diverse supply portfolio will increase reliability and competition among suppliers, helping to reduce price volatility and create lower prices for all customers. The Gas Company is working to increase supply diversity and its access to additional gas supply basins in the western United States.

The California Public Utilities Commission last year approved The Gas Company's proposal to establish new receipt points on its extensive pipeline system to accept natural gas supplies from LNG and other new supply sources. Industry experts estimate that the total savings in gas costs for consumers from bringing LNG into the West Coast could be as much as $1 billion a year or more.

With increased reliability and competition, there will be less risk of a supply shortfall or price spikes that might occur if there is an unanticipated supply interruption on an existing pipeline or in an existing supply basin, according to The Gas Company.

The Gas Company is the nation's largest natural gas distribution utility, providing safe and reliable energy to 19.5 million consumers through 5.5 million meters. The company's service territory encompasses approximately 20,000 square miles in most of central and Southern California. The Gas Company strives to provide exceptional customer service to enhance the quality of life in the community. The Gas Company is a regulated subsidiary of Sempra Energy (NYSE:SRE - News). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to http://www.socalgas.com.



Contact:

Error about Coleto Creek getting fixed on Environment Integrity Web site
In a report published not long ago, EnvironmentalIntegrity.org (EI) by mistake ranked Sempra Generation/Carlyle Riverstone's Coleto Creek Power Station as one of the dirtiest power plants in the United States in terms of carbon-dioxide (CO2) emissions. The group will correct the faulty information in its report--and on all materials that follow.

“Coleto Creek Power Station is among the top-performing, baseload, coal-fired power-generating units in Texas,” says Michael Fields, plant manager. “The plant has a long record of environmental achievements, including the U.S. Environmental Protection Agency’s Environmental Excellence Award.”

EI’s calculations for Coleto Creek reflected an error that meant Coleto Creek was erroneously rated first on the Top 50 carbon-dioxide-emission-producing plants list. In fact, the plant should not have been included on the list.

Sempra Generation and Carlyle Riverstone acquired Coleto Creek from AEP in July 2004.

Sempra Generation to acquire
full ownership of El Dorado Energy

Sempra Generation today announced it has entered into an agreement to purchase Reliant Energy’s 50-percent interest in El Dorado Energy, a 480-megawatt (MW) natural gas fired, combined-cycle power plant in Boulder City, Nev., for a total value of $132 million. The payment to Reliant Energy, net of project debt and closing adjustments, is expected to be approximately $75 million.

“The acquisition of the second half of the El Dorado Energy facility is a natural extension for Sempra Generation, because the plant is located in the heart of the southwestern U.S. marketplace, an area where we have an established presence,” said Michael R. Niggli, president of Sempra Generation. “Since El Dorado Energy commenced operations in May 2000, Sempra Generation’s power assets have grown from that initial 240 megawatts to more than 3,800 megawatts in Nevada, Arizona, California, Texas and Mexico.”

Sempra Generation and Reliant Energy originally announced their joint 50-50 ownership in the El Dorado Energy project in 1997.

El Dorado Energy
The plant is located about 40 miles southeast of Las Vegas and has unrestricted access to multiple power markets. In addition to providing clean, efficient energy to the Southwest markets, El Dorado Energy also is equipped with a 100-kilowatt solar field, comprised of 256 panels that track the sun’s path through the Nevada sky.

Sempra Energy Services wins approval
for second White Oak project
Sempra Energy Services was awarded an additional $20 million construction delivery order with the General Services Administration (GSA) to the already existing contract at White Oak, the Food and Drug Administration (FDA) campus located in Silver Spring, Md. Nearly $73.5 million in total payments will be paid to Sempra Energy over the 23-year performance period for this new delivery order.

Second contract
“The General Services Administration is always looking for ways to meet our energy savings goals and to be good stewards of how the agency uses energy." said Harry Debes, GSA project manager. "The second contract with Sempra Energy Services goes a long way in helping GSA meet those goals.”

The new order is the first award made on the Department of Energy’s (DOE) contracts to any energy services company since the Energy Savings Performing Contract (ESPC) authority was reinstated after expiring in 2003. ESPCs allow federal agencies, such as the Department of Health and Human Services (which oversees the FDA) to pay for energy efficiency improvements with the resultant savings.

New construction
The multi-year construction schedule at White Oak will consolidate the majority of the FDA’s research and development offices and 7,600 employees at the 700-acre former Naval facility.

Sempra Energy Services is providing design engineering, construction, financing, and building operations and maintenance for the campus. This includes construction of a central utility plant using energy-saving combined heating and power technology and renewable energy through photovoltaic panels which convert sunlight into electricity.

Sempra Energy Services initial 20-year contract with White Oak will reduce energy, operations, and maintenance costs to the government by about $4 million annually. With the addition of the second contract, annual savings increase by nearly $1.8 million.

White Oak's recognitions
Though only three years into the multi-staged development effort, the White Oak project has already been recognized with an Energy and Water Management Award from the Department of Health and Human Services; a Craftsman Award from the Washington Building Congress; and a Combined Heat and Power Certificate of Recognition from the EPA.

Bank of America: Naming SRE Our Top Pick Ahead of Today's MEDS Conversion
"SRE replaces ATG as our Top Pick, given the ebbing headwind of its mandatory convertible securities, which convert today (5/17/05). While our fundamental view of SRE remains unchanged, we would view any weakness from today's conversion as an ample buying opportunity for investors to build/add to a position in SRE.

"Recall our Buy rating is predicated on SRE's favorable growth opportunities and that it trades at an increasingly unwarranted discount to its peers. We also highlight the company's rapidly subsiding regulatory risks, including the positive conclusion of Phase I of its rate case and the CPUC's favorable ruling in the border price investigation.

"Our target price of $46 assumes a 14x multiple on our FY06 EPS estimate of $3.30, implying a potential return to target of ~24%, including SRE's below average 2.9% dividend yield."

Sempra Pipelines & Storage and ProLiance Transportation and Storage, LLC, the asset development and ownership affiliate of ProLiance Energy, LLC, a natural gas marketing company, announced an agreement to construct, own and operate the Liberty Gas Storage natural gas storage facility presently under development in Calcasieu Parish, La.

Under the terms of the agreement, ProLiance Transportation & Storage will acquire a 25-percent ownership in the project with Sempra Pipelines & Storage retaining 75 percent ownership, along with responsibility for development and operation of the facility.

Additionally, ProLiance Energy has entered into a binding precedent agreement with Liberty that requires both parties to sign a long-term contract for 5 billion cubic feet (Bcf) to 6 Bcf of storage capacity, upon receipt of Liberty Gas Storage’s permit from the Federal Energy Regulatory Commission (FERC).

Partnership with ProLiance
“Working together with ProLiance Transportation & Storage to develop Liberty Gas Storage will enhance the success of the project,” said George Liparidis, president of Sempra Pipelines & Storage. “ProLiance Energy is a substantial purchaser and transporter of natural gas in the Gulf Coast region, and clearly understands the value of well-located, high-deliverability salt-cavern storage.”

Liparidis added that the Liberty project is in a strategic location to serve the gas storage needs off of several existing interstate and intrastate pipelines, and could facilitate future LNG supplies that are expected to be coming into the region in just a few years.

John Talley, president of ProLiance Energy said: “This partnership will unite the strengths of the two companies. Sempra Energy has a proven track record in successful asset development and the Liberty Project will provide an enhancement to ProLiance’s existing gas supply, transportation and storage portfolio that we utilize daily to serve our customer base of utilities, municipals, power generators, and commercial and industrial customers throughout the Midwest and Southeast."

More on Liberty Gas Storage
Liberty Gas Storage will be located near the town of Sulphur, La., and will provide firm storage and related services to customers transporting natural gas on various interstate pipelines in the region, which serves markets in the U.S. Southeast, Midwest and Northeast. Liberty Gas Storage petitioned for authorization from the FERC to construct and operate the facility Mar. 25, 2005.

The facility, which will provide 17 Bcf of working gas capacity for storage, is expected to be in service in the second quarter of 2006. The project also will include surface facilities to allow for a maximum injection of 500 million cubic feet per day and maximum withdrawals of 1 Bcf per day.

Additionally, Liberty Gas Storage will be located near the Cameron and Port Arthur Pipelines, two new pipelines under development by Sempra Pipelines & Storage, connecting area LNG regasification terminals to the interstate gas transmission system. FERC has granted Sempra a 7(c) permit to construct and operate the Cameron Pipeline, which recently concluded an open season to determine market interest.

North Baja Pipeline operators seek shipper interest in expanded pipeline to move LNG into U.S. markets
TransCanada Corp. and Sempra Energy yesterday announced a joint open season to solicit shipper interest in a potential expansion of the current North Baja pipeline system.

FPRIVATE "TYPE=PICT;ALT=Open map in Acrobat reader..."
View in Acrobat reader
The system is comprised of TransCanada’s North Baja Pipeline (NBP), and Gasoducto Bajanorte Pipeline (GB) and Transportadora de Gas Natural de Baja California (TGN), both owned by Sempra Energy. These pipelines now serve natural gas demand in the Southwestern United States and Baja California, Mexico.

Proposed expansion
Shippers already have contracted for capacity to move natural gas from Sempra Energy’s Energía Costa Azul liquefied natural gas (LNG) receipt terminal now under construction in Baja California to downstream markets.

The proposed expansions contemplated by this open season would provide more pipeline capacity for the potential expansion of the Energía Costa Azul terminal or any other LNG terminals planned for the area. The open season will gauge shipper interest in moving volumes away from any other or expanded LNG regasification facilities.

The open season procedures offer a nondiscriminatory means of providing transportation access to markets throughout Baja California and to the Southwestern United States for any added installed regasification capacity. The two owners are working together to jointly market capacity on their respective pipelines. NBP will administer the open season; however, contracts will be executed by each pipeline as required.

Strong open season results expected
“North Baja is ideally situated to play a major role in transporting regasified LNG from an expanded terminal facility into various U.S. markets,” said Jeff Rush, general manager of TransCanada’s GTN and North Baja systems.

“With the high energy demand growth on both sides of the border and the increasing role of LNG, we expect a strong market response to this open season,” said Ryan O’Neal, vice president of Sempra Pipelines & Storage.

Current North Baja pipeline
The current 220-mile North Baja pipeline system, comprised of NBP and GB, went into service in 2002, while TGN went into service in 2000. It begins at an interconnection with El Paso Corp. natural gas pipelines near Ehrenberg, Ariz., and crosses into Southern California before entering the Mexican state of Northern Baja California.

The line parallels the U.S.-Mexico border for 140 miles before reaching an interconnection with TGN near Tijuana, Mexico.

As the result of a prior open season, the operators are getting needed permits and will reverse the flow direction of the pipeline. They will add the needed facilities to transport regasified LNG when the Energía Costa Azul LNG terminal comes online, perhaps as early as 2007.

This information is provided solely for informational purposes. Although Southern California Gas Co. (SoCalGas) and San Diego Gas & Electric (SDG&E) have used reasonable efforts to assure its accuracy, no representation is made that the contents are free from error or suitable for use for any particular purpose. SoCalGas and SDG&E assume no responsibility for use of, or reliance on, this information by any party, and specifically advise such parties to discuss any decisions or actions related hereto with their own advisors and experts.

Prices
According to the Dow Jones Report, May 10, natural gas prices have increased because of high crude oil prices and weather forecasts indicating warming in the Northeast and Midcontinent.

The Associated Press, May 10, reported that world oil prices rose strongly amid forecasts of higher global demand later this year that could outstrip supply despite increased output by the Organization of Petroleum Exporting Countries. Prices were winning support also from concern about supplies of gasoline, as the approaching American driving season put the spotlight on forthcoming US crude inventories data.

According to Department of Energy's Energy Information Administration (EIA), in April, high crude oil prices, combined with the unusually cold March weather for much of the nation, increased heating demand and boosted spot prices for natural gas to levels above $7.00.

The May 10 EIA Short-Term Energy Outlook says that although natural gas storage remains above the 5-year average, high world oil prices, continued strength in the economy, the expectation that Pacific Northwest hydroelectric resources will be well below normal through mid-summer, and limited prospects for growth in domestic natural gas production all support the natural gas price projections.

EIA projects that Henry Hub prices will remain relatively high, with averages of over $7.00 per mcf in 2005 and 2006.

The Dow Jones Report, May 9, reported that Western wholesale spot power prices remain high because of a rise in natural gas prices and nuclear plant outages. In addition, moderate weather prevailed through most of the West otherwise prices would have been higher to reflect normal weather.

The following tables and charts show the current prices and price trends:

Natural Gas Prices ($/mmbtu) California-Arizona border (closest trading hub to Southern California) Henry Hub (Major gas trading center in United States, located in Louisiana) San Juan (One of the producing areas feeding Southern California, located in New Mexico) Rockies (One of the producing areas feeding Southern California, located in Wyoming)

May 10 daily spot-cash gas price* $6.20 $6.69 $5.88 $5.99
Bidweek Gas Price for May** $6.61 $6.77 $6.30 $6.33
Apr. 2005 daily average spot price* $6.70 $7.19 $6.35 $6.49
May 2004 daily average spot price* $5.98 $6.33 $5.45 $5.40
June 2005 future gas price*** $6.28 $6.71 $5.95 $5.96
12-month future average gas price*** $6.94 $6.94 $6.65 $6.58
Sources:
/*Dow Jones, Btu's Daily Gas Wire
**Inside FERC; NGI for Rockies
***NYMEX and Prebon Energy, represents estimation of the market, 05/10/2005
Western Electricity Prices So. Cal. (SP15) On-peak Price ($/MWh) Equivalent gas price at 10,000 HR ($/mmbtu) No. Cal. (NP15) On-peak Price($/MWh) Equivalent gas price at 10,000 HR $/mmbtu)

May 9 daily spot-cash electricity price* $54.52 $5.45 $54.48 $5.45
Apr. 2005 daily average electricity price* $59.18 $5.92 $58.66 $5.87
May 2004 daily average electricity price* $59.43 $5.94 $59.71 $5.97
12 month average future wholesale electricity price** $74.63 $7.46 $71.54 $7.15
Sources:
*Dow Jones, BTU Daily
**Prebon Energy, represents estimation of the market, 05/09/2005
Oil Prices ($/Bbl) West Texas Intermediate (WTI) crude oil
May 9 daily WTI oil price* $52.01
Apr. 2005 daily average price* $53.04
May 2004 daily average price* $40.25
NYMEX crude contract for June** $54.45
Sources:
*Dow Jones
**NYMEX

Wholesale Natural Gas and Electricity Price Comparison


Natural Gas and Electricity Future Price Outlook


NYMEX Crude (Oil) Futures


Oil Prices vs. Natural Gas Prices


Natural gas

Gas demand

... in U.S.
(source: EIA's Short-Term Energy Outlook, May 10, 2005)

Natural gas demand in the U.S. is expected to exhibit an increase of 2.1 percent in 2005.

In 2006, natural gas demand is projected to rise by 2.3 percent due largely to weather-related factors and continued strength in gas-intensive industrial production.

... in Southern California
(source: SoCalGas Preliminary Daily Operating Sheet, as of May 9, 2005)

Southern California Gas Company’s (SoCalGas) May 1-9 daily average total demand is about 3% lower than April's daily average total demand and about the same as May, 2004 usage.

SoCalGas' May daily average demand for gas-fired electricity wholesale generation (EWG) and utility electricity generation (UEG) is about 7% higher than April's EWG/UEG demand and about 24% lower than May, 2004 usage.

Southern California Gas Company’s (SoCalGas) April daily average total demand was about 9% lower than March's daily average total demand and about 4% lower than April, 2004 usage.

SoCalGas' April daily average demand for gas-fired electricity wholesale generation (EWG) and utility electricity generation (UEG) was about 7% lower than March's EWG/UEG demand. SoCalGas' April daily average EWG and UEG demand was about 23% lower than April, 2004 usage mainly due to fewer nuclear plant outages.

Gas supply
National Storage 25.2% above five-year average

EIA's Weekly Natural Gas Storage Report for the week ending Friday, April 29, reported working gas in underground storage increased to 1,455 Bcf. Inventories now stand 25.2 percent above the 5-year average of 1,162 Bcf. Stocks are 238 Bcf higher than last year at this time.

Western storage 14.6% above the five-year average

The same EIA report pegged inventories in the West region at 227 Bcf or 14.6 percent above the 5-year average.

SoCalGas storage levels at 64-percent full
(source: SoCalGas Preliminary Daily Operating Sheet)
As of May 9, 2005, total SoCalGas system storage inventory was 76 Bcf. This is about 22 Bcf higher than storage at the same time last year and about 20 Bcf higher than the prior five-year average levels.

Transwestern Pipeline Expansion start-up
(source: CERA Report, April 25)
The San Juan expansion will provide about 375 million cubic feet per day of additional firm transportation capacity. Transwestern's expansion entails modifications at existing compressor stations and constructing 72.6 miles of underground pipeline from the Blanco Hub located in San Juan County, N.M., to the point of interconnection with Transwestern's mainline. The pipeline expansion went into service May 1.

Production outlook
(source: EIA's Short-Term Energy Outlook, May 10, 2005)
Baker Hughes Inc. announced that the North American rig count for the week ending May 6, 2005 was 1,518. This is 33 higher than the prior week and an increase of 180 from last year's count at the same time.

According to Lehman Brothers, as reported in Platts' Gas Daily, April 26, first-quarter production declined 0.3% from the previous quarter but was down a sharp 4.4% form the same period of 2004.

Domestic natural gas production in 2005 is expected to remain near the 2004 level, despite an expected 13-percent increase in gas-directed drilling.

Electricity

Electricity demand reported in California
On May 10, the CAISO projected the peak load at 28,188 MW. The CAISO calls for a Wednesday peak load of 28,828 MW.

California's electricity situation
This summer, southern California may have possible supply shortages and service disruptions under extreme weather conditions, according to a presentation to FERC by its staff on May 4. The presentation is consistent with the ISO and CEC assessments issued earlier this year.

On May 5, the WECC 2005 Summer Assessment of Loads and Resources said, "Although Southern California is an area of concern this summer, it appears that options are available to meet firm load needs during normal summer conditions, as well as unusually hot weather conditions".

Conservation will be very important this summer.

Projected Power Plant Development
According to the Platts' NewGen, April, 2005, since 2001, 41,300 MW of new plants have been built in the Western United States. 12,600 MW of new plants in the West are currently under construction. 7,300 MW of new plants are located in California.

In Southern California, some of the major new plants include:

Calpine's Pastoria Power Plant, 250 MW - started up in May, another 500 megawatts in June, located in Bakersfield.
SCE's Mountainview Power Plant, 1,100 MW, located in San Bernardino (expected in operation closer to year-end),
LADWP's Haynes Plant, 575 MW new unit, located in Seal Beach (started operation)
City of Burbank's Magnolia Plant, 328 MW, located in Burbank (expected to start up in end of June)
City of Vernon's Malburg Plant, 120 MW, located in City of Vernon (expected in early fall)
Sempra's Palomar Plant, 570 MW, located in Escondido (expected in mid-2006)


Projected Power Plant Development

Power Plant Development Charts...click here to see larger view -- in PowerPoint
[click here to see larger image (PowerPoint, size: 468kb)]

Electricity generation plants' outages reported
On May 10, the Western Electricity Coordinating Council (WECC) reported that 16% percent or 24,476 MW of total WECC electric generation capacity was off-line.

On May 10, the WECC reported that 23 percent or 12,573 MW of total California and Baja California electric generation capacity was off-line. About 12 percent of the capacity off-line (1,547 MW) is served by SoCalGas and San Diego (SDG&E).

Current outages reported by the CA ISO and NRC include:

Mohave coal-fired Unit 1 (130 MW outage) and 2 (60 MW outage), in Nevada, started an unplanned outage on March 8.
Four Corner coal-fired unit 5 (405 MW outage), in New Mexico, reported a planned outage on April 22.
Palo Verde nuclear Unit 2 (1,270 MW outage), in Arizona, started a planned refueling outage on April 2.
Intermountain Power Plant coal-fired Unit 1 (900 MW), in Utah, started a planned outage on May 7.
Columbia Generating nuclear Station (1,158 MW), in Washington started a refueling outage on May 7. The unit should return to service on May 11.
San Onofre nuclear Unit 3 (1,108 MW), in Southern California, was shut down for a maintenance outage on May 5. The unit is now expected to return to service on May 10. The unit will go on line at 20% power (55 MWG) and ramp up at 9% per hour reaching full power on May 11.


Future Nuclear Plant Outages

Unit Plant Location MW Offline Date Offline Date Expected Back Online
Palo Verde Unit 1 Arizona 1270 9/30/2005 11/9/2005
SONGS 2 California 1180 1/3/2006 3/4/2006
SONGS 3 California 1180 4/1/2006 5/1/2006
SONGS 3 California 1180 10/16/2006 12/25/2006
Diablo Canyon Unit 1 California 1100 1/10/2006 2/19/2006
Palo Verde Unit 3 Arizona 1270 3/15/2006 4/24/2006

Electricity transmission facilities out of service
or with limited service reported
On May 10, the Western Electricity Coordinating Council (WECC) reported the following electricity transmission facilities out of service or limited that impact California:




From 0000-1500 the California Oregon Intertie (Path 66 - COI), a major transmission line that moves power from the Northwest to California, is limited to 4,350 MW north to south and 2,450 MW south to north due to outage of the BPA area resources. From 0500-1900 the COI is further limited to 3,000 MW north to south due to the Round Mountain-Table Mountain #2 500-kV line outage.
From 0000-1500 Pacific DC Intertie (Path 65 - PDCI), a major transmission line that moves power from the Northwest to Southern California, is limited to 2,720 MW north to south and 1,904 MW south to north due to BPA area resources. From 0500-1900 Round Mountain-Table Mountain #2 500-kV line is out of service but there is no additional limitation on the PDCI.
From 0000-2400 the Path 44, to San Onofre nuclear plant, is limited to 1,650 MW north to south due to the Mission-Miguel/Miguel-Sycamore Canyon limits.

Oil
Oil prices expected to stay high
(source: EIA's Short-Term Energy Outlook, May 10, 2005)
Monthly average WTI prices are projected to remain above $50 per barrel for the rest of 2005 and 2006.

Several factors have contributed to the recent high crude oil prices and are likely to keep prices at or near present highs:

Worldwide petroleum demand growth is projected to remain robust, despite high oil prices.
Expected growth in non-Organization of Petroleum Exporting Countries (OPEC) supplies is not expected to accommodate worldwide demand growth.
Worldwide spare crude oil production capacity has recently diminished. Only Saudi Arabia has spare production capacity.
Downstream sectors such as refining and shipping are expected to remain tight.
Geo-political risks, such as the continued insurgency in Iraq and political unrest in Nigeria and Venezuela, are expected to keep the uncertainty premium high.

Market Impacts

Hydro
The weighted average runoff forecast for the Western U.S. for Water Year 2005 is 81% of normal. Although this forecast is below average, it is higher than last year's runoff and much higher than the 2001 runoff.

On May 6, the Northwest River Forecast Center's updated runoff forecast was 70% of normal at the Dalles in January through July. Beneficial rains continued during April with warm temperatures. The warm temperatures and rain depleted an already deficient snowpack.

On May 9, the California Department of Water Resources (CDWR) predicted the runoff to be at California rivers 117% of normal in April through July.
Winter storms and the healthy Sierra snowpack they produced should help with hydroelectric power generation in the state this summer, especially in Southern California, utilities say.

On May 1, the Colorado River Basin's inflow for water year 2005 was forecasted to be 134 percent of average by the Colorado Basin River Forecast Center.

Weather
According to the National Weather Service, May 10, 2005, the outlook for May 16-20 called for above normal temperatures for most of the Western states, and mostly normal temperatures for the rest of the nation.

The National Weather Service is forecasting above normal temperatures in the Western U.S. for the period of June to September.

April temperatures were above average for most of the U.S. Heating degrees in Southern California were almost 16% below normal in April.

Economy
Real gross domestic product--the output of goods and services produced by labor and property located in the United States--increased at an annual rate of 3.1 percent in the first quarter of 2005, according to advance estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 3.8 percent.



_____


Related Info:

Some of these links point to resources outside our control. Use them accordingly. These links (except SempraNet items) are set up to open a new browser window. Close it to return here.




California Independent System Operator (Internet)

DOE Energy Information Administration (Internet)

FERC (Internet)

National Petroleum Council (Internet)

10-Day Temperature Outlook for the U.S. (Internet)

SNOTEL - River Basin Snow Content (Internet)

Northwest River Forecast Center (Internet)

Western Energy Market Update - available only to Sempra utilities and Corporate Center employees (via the CandI intranet)

_____

Plans for new SDG&E transmission line reach
a milestone with the results of a comparison study
San Diego Gas & Electric (SDG&E) has chosen an eastern connection for its proposed, new 500-kilovolt (kV) transmission line that will improve grid reliability, reduce energy costs and provide access to renewable energy sources.

While no specific route has been identified at this point, the line, if approved, would tie into SDG&E’s current power grid through an eastern connection from the utility’s Imperial Valley substation to an as-yet-undetermined point in the middle of SDG&E’s service territory or load center.

Broad-based review
Over the past six months, a subcommittee of the Southwest Transmission Expansion Study (STEP) group, made up of a cross-section of community, regulatory and market stakeholders, evaluated 18 different potential interconnections based on criteria that included reliability, access to renewable resources, timing, and cost and economic benefits. No specific routes were considered.

“The selection of a preferred direction for this transmission line is a milestone in our effort to build this vital link to our region’s electricity network,” says David Geier, SDG&E’s vice president of Electric Transmission and Distribution.

“The STEP Technical Working Group reviewed the technical merits of each of the possible alternatives in an open, collaborative, stakeholder process and narrowed the options to four that provide the greatest benefits to the region," he adds. "SDG&E identified the eastern connection as the most feasible in terms of cost, timing and benefits to customers, including access to renewables and the ability to get it in service by 2010.”

ISO support
“There’s no question that the addition of a major interconnection in Southern California will help ease the transmission congestion that continues to pose economic problems for the region,” says Armie Perez, chairman of the STEP group and the director of grid planning for the California Independent System Operator (Cal-ISO). “We are pleased to be part of the STEP process, and we look forward to the next steps for this project.”

The next phase of the process to license this new major transmission line is to begin the specific routing studies and preparations for the needed regulatory filings. The California Public Utilities Commission (CPUC) must approve the project to allow construction of the new line.

“We have completed a key technical step toward building a new line for our region that will bring with it multiple benefits for customers,” says Geier. “Next, we must continue to work proactively with the communities we serve in a collaborative process to gather feedback to ensure we arrive at the best solution for our region’s energy future.”

More about the STEP process
STEP’s Technical Working Group consists of 22 stakeholder members and 13 separate entities, such as state agencies, regulators and market participants, including utilities from California, Arizona and Mexico, along with independent consultants and generators.

Besides the Cal-ISO, the group includes: the California Energy Commission, the Comision Federal de Electricidad in Baja California, Southern California Edison, the Imperial Irrigation District and Arizona Public Service.

In October 2004, SDG&E first presented nine possible interconnections for study, which grew to 18 choices, based on the feedback from the Technical Working Group.

On April 27, 2005, SDG&E presented the results of the technical studies and economic analysis of the options to the full STEP group.

The utility will submit a final report of the findings to the group by the end of this month.

Citigroup Smith Barney: Tracking SRE's Trading Earnings
"We are adjusting our 2005 EPS estimate to $3.29 to take into account 1Q'05 results and about $62 million in pretax performance based awards (DSM settlement) that SRE will book during the year. We are adjusting our 2006 & 2007 EPS estimates to $3.39 and $3.49, respectively, after adding $25 million (over 24 months) in PBRs and making adjustments to interest expense. Maintain $44 price target.

"After conducting further research into SRE's trading results over the last 13 quarters, we have established some parameters around the gas trading business to help us understand the volatility we are likely to experience from this business going forward. Some of these indicators and assumptions, which are mostly related to the natural gas trading book, include: Comparing natural gas prices at the end of the current quarter to the previous quarter and monitoring the unrealized revenue stream from the trading book excluding exchange related derivatives.

"Our analysis lacks precision given the nature of the business and may not be helpful during shoulder months when SRE is injecting gas into storage."

Jefferies: 1Q05 Operating EPS of $0.68 Below Expectations; Reduce Estimates
"We are maintaining our Hold rating on Sempra Energy with a price target of $41.00 (previously $42.00). Based on Friday's closing price of $39.13, our $41.00 target represents 12-month price appreciation potential of 4.8% and 12-month total return potential of 7.8%, including the company's current yield of 3.0%.

"Based on P/E valuation, we value Sempra at 40.50. Applying a 15.3 P/E multiple (equivalent to a 5% premium to our average electric utility multiple for 2005) to projected utility earnings of $1.72 per share results in $26.35. Applying a 10.0x multiple to remaining non-regulated earnings of $1.43 results in $14.30, for a total of $40.50.

Sempra's 1Q05 operating EPS was $0.68, below our estimate of $0.85 and consensus of $0.88, and versus $0.96 earned a year ago. We have excluded from 1Q05 earnings a $0.24 ($59 million) benefit from the favorable resolution of prior year federal and state income tax issues at the parent and the California utilities.

"We are reducing our 2005 EPS estimate by $0.15 to $3.05. The revision largely reflects first-quarter results and the DSM settlement. We are reducing our 2006 estimate by $0.15 to $3.15. The revision reflects the effects of the DSM settlement, lower assumed tax credits and other modest adjustments to our forecast model."

Gas Attack
by Seth Lubove
No good deed goes unpunished for a utility trying to deliver cheaper energy to its customers.
Back in 2001, when gas was relatively cheap and plentiful, Stephen Baum sounded alarm bells that the nation was facing an impending shortage of natural gas. His prediction was on the mark. The spot market price for gas in southern California has climbed from less than $3 per million British thermal units in 2001 to just shy of $7 now.

But instead of applause Baum is getting scorched, turning into the poster boy for angry environmentalists. His crime: As chief executive officer of Sempra Energy, the San Diego gas and electric utility holding company, he's building an $800 million terminal for liquefied natural gas in Mexico to export to southern California to make up for the gas shortage. (Sempra is also building terminals in Texas and Louisiana at $700 million each.)

Greenpeace, which has staged a protest outside Sempra's headquarters, says the company is pitching "dirty energy." Other enviro-protest groups, such as the Utility Reform Network and Ratepayers for Affordable Clean Energy, accuse Sempra of "promoting further dependence on foreign fossil fuels." The Save the Waves Coalition declares that Sempra's planned LNG facility, 56 miles south of the border in Baja California, will ruin a "world-class wave known as Harry's" and wipe out lobster and tuna.

"Give me one hour under oath with these guys and they're either going to retract a lot of this stuff or play shuffleboard in a white-collar prison," warns William Powers, the self-employed advocate behind the Border Power Plant Working Group, which cautions that Sempra's and other proposed LNG terminals place "existing communities at risk."

Baum sees a hidden agenda behind the complaints. The longer LNG opponents can delay imports, the more expensive domestic sources of gas become. Which in turn will make the price of wind power, solar, geothermal, biomass and other costly green energy schemes look reasonable. "One hand washes the other," says Baum.

FYI-to whom it may concern. I am a (union member) employee of Sempra Energy Utilities 35 years experience. Have my 401-K in Sempra so have a strong vested and financial interest.
Believe we are a strong company. Decent dividends and solid future and market , of course. We have branched out in different directions to diversify and seem to be profitable in nearly all areas. Some parts, utilities, are regulated by PUC, others are independant. A stable, solid long-term investment, imho. A good place to diversify some of your holdings. I can only post public news info. , not privy to inside information in any case. I cannot post empoyer to employee information either. Not that there are any major news that would affect the stock that regular employees would have advanced knowledge of or could profit from insider-type trading. Certainly hasn't done anything for me. Steady long term investment in solid companies is the key to a nest egg.
Will entertain questions addressed to me if I can.
Good hunting. TP

California Elk Hills power unit shut
Tue May 17, 2005 11:25 AM ET
NEW YORK, May 17 (Reuters) - The 525-megawatt Elk Hills natural gas-fired power station in California shut for planned reasons by early Tuesday, the California Independent System Operator said in a report.
Late Tuesday, the unit was fully available for service.

The Elk Hills combined-cycle station is located in Taft in Kern County about 120 miles northwest of Los Angeles. The station consists of two 156 MW gas turbines and one 213 MW steam turbine.

One megawatt powers about 1,000 homes, according to the North American average.

Elk Hills Power LLC operates the station for its owners: the Sempra Energy Global Enterprises unit of California-based Sempra Energy's (SRE.N: Quote, Profile, Research) Sempra Energy Resources subsidiary (50 percent) and Los Angeles-based oil company Occidental Petroleum Corp.'s (OXY.N: Quote, Profile, Research) Occidental Energy Corp. subsidiary (50 percent).

Sempra's subsidiaries own and operate more than 3,500 MW of generating capacity, market energy and other commodities around the world, and transmit and distribute electricity (1.3 million) and natural gas (6.2 million) to customers in California.


© Reuters 2005. All Rights Reserved.

NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq and all other quotes delayed by at least 15 minutes. Reuters does not endorse the views or opinions given by any third party content provider.

Sempra says Northeast's LNG port will be US Gulf
Tue May 17, 2005 08:55 AM ET
By Timothy Gardner
LA JOLLA, Calif., May 17 (Reuters) - The U.S. Gulf of Mexico's existing petroleum infrastructure and comparative lack of local opposition make it the best place to locate LNG ports and storage that will supply the densely populated U.S. Northeast, a Sempra Energy (SRE.N: Quote, Profile, Research) executive said on Tuesday.

Sempra, which is building the first LNG plant in the North American West in Baja California, Mexico, has learned to find places that welcome LNG ports rather than wage slow permitting wars against communities that oppose the ports for security and environmental reasons.

Currently 3 percent of the natural gas used in the United States, the world's largest energy consumer, is liquefied natural gas, the super-cooled, transportable form of the fuel exported from Trinidad, Qatar, Indonesia and elsewhere.

In 15 years, LNG is expected to make up 25 percent of the gas burned in the United States, according to the federal Energy Information Administration.

There are more than 40 LNG terminal projects being proposed in the United States, with BP (BP.L: Quote, Profile, Research) , Excelerate Energy, Hess LNG and others proposing terminals in northeastern states.

LNG ports can cost between $500 million and $1 billion. "For infrastructure projects of this size, time is money," Sempra President and COO Donald Felsinger said at conference on Latin American energy. "Every year of delay, every month of delay has a big impact."

San Diego-based Sempra learned the lesson from trying to site an LNG port in the U.S. West. "We looked all up and down the West Coast ... and we just knew because of the fact that we live here you can't get anything done in California," he said, referring to groups that fought energy development even during the period of historically high gas prices during the 2000-2001 California energy crisis.

So Sempra turned to the Mexican government, which he said was open to the idea of LNG ports because it had bitter memories of the U.S. cutting gas imports to it during the 2000-2001 energy crimp.

In the U.S. Northeast, the world's largest heating fuel hub, Sempra saw LNG opposition similar to California's. "So we came back around and focused on the Gulf Coast," said Felsinger.

He said the gulf, where Sempra is developing two LNG ports -- one in Hackberry, Louisiana, and the other in Port Arthur, Texas -- is more used to energy plants. "It's an industrial person's heaven," said Felsinger. "People in the gulf understand this type of infrastructure, they want the jobs and they want the tax base."

He said as the United States receives more LNG from more places, it will come in varying qualities. And the gulf is a better placed to strip out compounds like butanes and ethanes from the fuel because it already has the infrastructure.

Texas and Louisiana also have vast network of pipelines that reach to the Midwest and East that will become under-used as energy production in the Gulf of Mexico declines, he said.

And storage can be built to protect companies against the gulf's infamous hurricane season. Last year, Hurricane Ivan drove up oil and gas prices by delaying shipments and damaging oil and gas platforms out at sea.

To protect against delayed shipments, Sempra is developing inland underground storage systems called Liberty Gas and Pine Prairie, which will double the LNG storage of its gulf ports to 40 billion cubic feet.

"It's a lot cheaper and it's a lot less controversial to store gas underground," said Felsinger.

Sempra's $800 million Coastal Azul port in Baja California and its $700 million Louisiana port are scheduled to receive LNG in 2008. Its $700 million Port Arthur, Texas, port is expected to begin receiving the fuel in the following year.


© Reuters 2005. All Rights Reserved.

New Issue-San Diego Gas & Electric sells $250 mln bonds
Mon May 16, 2005 01:23 PM ET
WHITE PLAINS, N.Y., May 16 (Reuters) - San Diego Gas & Electric Company, a subsidiary of Sempra Energy (SRE.N: Quote, Profile, Research) , sold $250 million of 30-year first mortgage bonds, said joint book-running manager UBS Investment Bank on Monday.
Goldman Sachs & Co. was the other joint book-running manager for the sale. BORROWER: SAN DIEGO GAS & ELECTRIC COMPANY AMT $250 MLN COUPON 5.35 PCT MATURITY 5/15/2035 TYPE 1ST MTG BDS ISS PRICE 99.882 FIRST PAY DATE 11/15/2005 LAST MOODY'S A1 YIELD 5.358 PCT PAY FREQ SEMI-ANNUAL LAST S&P A-PLUS SPREAD 88 BPS MAKE-WHOLE CALL 15 BPS




© Reuters 2005. All Rights Reserved.

NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq and all other quotes delayed by at least 15 minutes. Reuters does not endorse the views or opinions given by any third party content provider.

Sempra Pipelines & Storage, ProLiance Transportation & Storage Announce Partnership in Louisiana Gas Storage Facility
Monday May 16, 4:00 pm ET


SAN DIEGO and INDIANAPOLIS, May 16, 2005 (PRIMEZONE) -- Sempra Pipelines & Storage, a subsidiary of Sempra Energy (NYSE:SRE - News), and ProLiance Transportation and Storage, LLC, the asset development and ownership affiliate of ProLiance Energy, LLC, a natural gas marketing company, today announced an agreement to construct, own and operate the Liberty Gas Storage natural gas storage facility presently under development in Calcasieu Parish, La. Under the terms of the agreement, ProLiance Transportation & Storage will acquire a 25-percent ownership in the project with Sempra Pipelines & Storage retaining 75 percent ownership, along with responsibility for development and operation of the facility.
ADVERTISEMENT


Additionally, ProLiance Energy has entered into a binding precedent agreement with Liberty that requires both parties to sign a long-term contract for 5 billion cubic feet (Bcf) to 6 Bcf of storage capacity, upon receipt of Liberty Gas Storage's permit from the Federal Energy Regulatory Commission (FERC).

``Working together with ProLiance Transportation & Storage to develop Liberty Gas Storage will enhance the success of the project,'' said George Liparidis, president of Sempra Pipelines & Storage. ``ProLiance Energy is a substantial purchaser and transporter of natural gas in the Gulf Coast region, and clearly understands the value of well-located, high-deliverability salt-cavern storage.''

Liparidis added that the Liberty project is in a strategic location to serve the gas storage needs off of several existing interstate and intrastate pipelines, and could facilitate future LNG supplies that are expected to be coming into the region in just a few years.

John Talley, president of ProLiance Energy said: ``This partnership will unite the strengths of the two companies. Sempra Energy has a proven track record in successful asset development and the Liberty Project will provide an enhancement to ProLiance's existing gas supply, transportation and storage portfolio that we utilize daily to serve our customer base of utilities, municipals, power generators, and commercial and industrial customers throughout the Midwest and Southeast.''

Liberty Gas Storage will be located near the town of Sulphur, La., and will provide firm storage and related services to customers transporting natural gas on various interstate pipelines in the region, which serves markets in the U.S. Southeast, Midwest and Northeast. Liberty Gas Storage petitioned for authorization from the FERC to construct and operate the facility Mar. 25, 2005.

The facility, which will provide 17 Bcf of working gas capacity for storage, is expected to be in service in the second quarter of 2006. The project also will include surface facilities to allow for a maximum injection of 500 million cubic feet per day and maximum withdrawals of 1 Bcf per day.

Additionally, Liberty Gas Storage will be located near the Cameron and Port Arthur Pipelines, two new pipelines under development by Sempra Pipelines & Storage, connecting area LNG regasification terminals to the interstate gas transmission system. FERC has granted Sempra a 7(c) permit to construct and operate the Cameron Pipeline, which recently concluded an open season to determine market interest.

An application for the Port Arthur Pipeline's operating permit was filed with the FERC Feb. 28, 2005. Additionally, Port Arthur Pipeline concluded a successful open season in April 2005.

Sempra Pipelines & Storage acquires, builds and operates natural gas pipelines and storage facilities in Mexico and the United States. The company operates 165 miles of high-pressure natural gas pipelines and is developing another 230-plus miles to connect major natural gas supply sources.

Sempra Energy, based in San Diego, is a Fortune 500 energy-services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies' more than 13,000 employees serve more than 10 million customers in the United States, Europe, Canada, Mexico, South America and Asia.

ProLiance Energy is a natural gas marketer headquartered in Indianapolis, Indiana, with sales offices in Illinois, Kentucky, Michigan, Missouri, Ohio, and Texas. The ProLiance family of companies serves natural gas customers in 18 states in the Midwest and Southeast. ProLiance Energy is jointly owned by affiliates of Citizens Gas and Coke Utility and Vectren Corporation.

Sempra Pipelines & Storage is not the same company as the utilities, SDG&E or SoCalGas, and is not regulated by the California Public Utilities Commission



Contact:
Sempra Energy
Jennifer Andrews
(877) 866-2066
www.sempra.com

ProLiance Energy
Tom Morton
(317) 231-6800
www.proliance.com


--------------------------------------------------------------------------------
Source: Sempra Pipelines & Storage

Four more analyst reports issued
on company's 1Q 2005 earnings

JP Morgan, Bank of America, Prudential and Harris Nesbitt issued analyst-research reports yesterday that covered Sempra Energy's first-quarter 2005 earnings. Here are excerpts:

JP Morgan: Messy 1Q Results Do Not
Derail Long-Term growth Strategy

"When we normalize the tax expense relative to our 1Q projection, EPS come in essentially in line with our estimate. Results at the CA utilities were above our expectations but favorably impacted by the tax benefit. When all special items are netted out for comparison sake, it appears net income at both SDG&E and SoCalGas declined modestly YOY.

"Adding back an $11M rate adjustment from the Phase II settlement at SoCalGas, which we expect to recur, net income jumped 16% YOY. Generation was the 1Q standout, where net income was up 31% YOY and $10MM above our projections, on increased power sales from the TX facilities. Results at Pipelines & Storage and LNG met our estimates. Commodities (trading) results continue to be volatile, with 1Q coming in well below our expectations.

"However, we remain relatively confident SRE will meet its '05 segment guidance given much of the 1Q margin shortfall in natural gas trading is expected to be reversed upon settlement of transactions later in the year. Moreover, weak margin performance has historically been followed by a sequential recovery. We are maintaining our '05E EPS of $3.20 until we get more definitive evidence of strong utilities performance over the summer."

Bank of America: 1Q05 Driven By Tax;
Underlying Earnings Broadly In Line

"Sempra Energy reported fully diluted 1Q05 earnings of $0.92/shr, inclusive of a $0.24/shr tax benefit. The favorable tax line was $0.15/shr ahead of our tax estimate, meaning underlying operating earnings of $0.77/shr were broadly in-line with our $0.79/shr estimate but below consensus of $0.89/shr.

"The timing of DSM incentives lowers Utility earnings, as SRE now expects $50mm of the pending $87mm to be awarded in 2Q/3Q05, with the balance realized over the next 36 months (we had given SRE full credit in '05). SRE Commodities' results were slightly ahead of our estimates, though substantially below 1Q04 due to a mismatch between economic earnings in its gas business and their accounting treatment. Our '05 $133mm net income estimate for this segment is ~10% below the low-end of guidance.

"Despite the tax-driven 1Q05 upside, our FY05 and FY06 estimates of $3.18/shr and $3.30/shr are unchanged. Our target price of $46 assumes a 14x multiple on our FY06 EPS estimate of $3.30, implying a potential return to target of ~19%, including SRE's below average 2.9% dividend yield."

Prudential: 1Q05 EPS Includes Tax
Benefits and Accounting Adjustments

"We were disappointed with the quality of earnings since 1Q05 EPS included a $0.24 benefit from the favorable resolution of income tax issues and $0.05 from an accounting adjustment at SoCal Gas. Lower trading margins from natural gas and metals trading were partly attributed to accounting rules concerning the timing of earnings recognition regarding physical transactions and associated financial hedges.

"Our Neutral Weight thesis is based on our view that while SRE lacks near-term positive catalysts, it trades at a steep, 17% forward PE discount to the sector average that should provide some downside support."

Harris Nesbitt: Lowering 2005/2006 Estimates

"Sempra Energy's 1Q05 adjusted EPS was $0.68 versus an adjusted $0.85 earned in 1Q04. Our adjusted EPS in 1Q05 excludes a $0.24 gain from the resolution of prior year income tax issues, while 1Q04 excludes several one-time items that cancel out. Earnings in 1Q05 were positively affected by improved results at its generation business and parent and other, offset by lower earnings from trading and financial operations.

"We are lowering our EPS estimate for 2005 to $3.05 and for 2006 to $3.03, promulgated by a more conservative outlook for trading operations ($150 million from our prior estimate of $200 million annually) following record results achieved in 2004. Our estimates had already reflected dilution from the conversion of equity units in May 2005.

"SRE trades at a 12% discount to our industry average P/E ratio for 2006, which we believe is appropriate given the heavy reliance on a volatile and unpredictable trading business. We reiterate our NEUTRAL rating on SRE."