Sempra Energy First-Quarter 2004 Earnings More Than Double

Sempra Energy First-Quarter 2004 Earnings More Than Double
Energy Trading, Generation Businesses Record Solid Gains 


SAN DIEGO, April 29  /PRNewswire-FirstCall/ -- Sempra Energy today reported
first-quarter 2004 earnings of $197 million, or $0.85 per diluted share,
compared with $88 million, or $0.42 per diluted share, in the first quarter
2003.

First-quarter 2004 results included a $24 million loss related to the
discontinued operations of Atlantic Electric & Gas, a U.K.-based retail energy
marketer, which was sold earlier this week.  Excluding this item, Sempra
Energy's first-quarter earnings were $221 million, or $0.96 per diluted share,
in 2004.  This compared with first-quarter 2003 earnings of $120 million, or
$0.58 per diluted share, which excluded a $3 million loss related to Atlantic
Electric & Gas' discontinued operations, as well as the negative impact of a
$29 million cumulative adjustment related to the implementation of accounting
principle EITF 02-3.  EITF 02-3 eliminated mark-to-market accounting for
certain commodity trading assets and liabilities.

"Our first-quarter results reflect the continued execution of our strategy,"
said Stephen L. Baum, chairman, president and chief executive officer of Sempra
Energy.  "Our energy trading and generation units, as well as our California
utilities, are producing solid earnings and positive cash flow."

Revenues in the first quarter 2004 were $2.4 billion, up from $1.9 billion in
the same period a year ago, due primarily to increased power deliveries by
Sempra Energy Resources and higher commodity prices.

   OPERATING HIGHLIGHTS

  Sempra Energy Utilities


Net income for San Diego Gas & Electric (SDG&E) increased to $50 million in the
first quarter 2004 from $45 million in the year-ago period.  The increase
resulted from higher transmission and distribution revenues, partially offset
by higher operating costs and the elimination of the incentive rate mechanism
for the company's 20-percent interest in the San Onofre Nuclear Generating
Station.

During the quarter, SDG&E received positive preliminary decisions from a
California Public Utilities Commission administrative law judge and the
assigned commissioner supporting the utility's long-term electric resource
plan.  Filed in October 2003, the plan provides for the purchase of a mix of
local generation assets, including renewable energy and a new 550-megawatt
power plant being built by Sempra Energy Resources for SDG&E in Escondido,
Calif., as well as energy-conservation initiatives.

Southern California Gas Co. recorded first-quarter net income of $56 million,
compared with $58 million in the first quarter 2003.

Sempra Energy Trading

Sempra Energy Trading's net income was $59 million in the first quarter 2004. 
In the same period last year, the company earned $10 million, before the
cumulative impact of accounting principle EITF 02-3.  Sempra Energy Trading's
higher earnings in this year's first quarter came from strong results in all of
the company's product lines.

"Sempra Energy Trading has grown to become the second largest marketer of
physical natural gas in North America and now has recorded 21 consecutive
profitable quarters, excluding the first-quarter 2003 mandated accounting
change," said Baum.  "This customer-focused business continues to benefit from
solid risk management and a diverse portfolio of products."

Sempra Energy Resources

First-quarter net income for Sempra Energy Resources rose to $37 million from
$10 million last year, due to increased power deliveries through the company's
portfolio of supply contracts.

During the quarter, Sempra Energy announced a 50-50 joint-venture agreement
with Carlyle/Riverstone, an energy and power-focused equity fund, to acquire
American Electric Power's 632-megawatt, coal-fired Coleto Creek Power Station
and nine other Texas power plants for $430 million.  Sempra Energy expects to
obtain project financing for a substantial portion of the costs of the
acquisition, which is expected to be completed in July 2004.  Sempra Energy
Resources will provide asset-management services for the joint venture,
including operation of the plants.

Sempra Energy International and Sempra Energy LNG

Sempra Energy International and Sempra Energy LNG, on a combined basis, earned
$17 million in the first quarter 2004, up from $7 million in the year- earlier
period.  The increase stemmed from improved results from the company's South
American operations and an $8 million contribution from the favorable buy-out
of a future obligation related to the proposed Cameron LNG project.

Sempra Energy LNG announced plans last week to develop a new liquefied natural
gas (LNG) receipt terminal near Port Arthur, Texas, with a daily processing
capacity of 1.5 billion cubic feet of natural gas.  The company initiated the
regulatory review process for the terminal with the Federal Energy Regulatory
Commission April 21, 2004.  The terminal could begin operations as early as
2009.

The Port Arthur project joins two other Sempra LNG receipt terminals under
development in North America:  Energia Costa Azul in Baja California, Mexico,
and Cameron LNG near Lake Charles, La.  Both of these projects are expected to
commence construction later this year and begin operations in late 2007.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the
Internet today at 1 p.m. Eastern Time with senior management of Sempra Energy. 
Access is available by logging onto the Web site at http://www.sempra.com/. 
For those unable to log onto the live Webcast, the teleconference will be
available on replay a few hours after its conclusion by dialing [phone]
and entering passcode number 7021323.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding
company with 2003 revenues of $7.9 billion.  The Sempra Energy companies'
nearly 13,000 employees serve more than 10 million customers in the United
States, Europe, Canada, Mexico, South America and Asia.

This press release contains statements that are not historical fact and
constitute forward-looking statements within the meaning of the Private
Securities Legislation Reform Act of 1995.  When the company uses words like
"believes," "expects," "anticipates," "intends," "plans," "estimates," "may,"
"would," "should" or similar expressions, or when the company discusses its
strategy or plans, the company is making forward-looking statements.  Forward-
looking statements are not guarantees of performance.  They involve risks,
uncertainties and assumptions.  Future results may differ materially from those
expressed in the forward-looking statements.  Forward-looking statements are
necessarily based upon various assumptions involving judgments with respect to
the future and other risks, including, among others: national, international,
regional and local economic, competitive, political, legislative and regulatory
conditions and developments; actions by the California Public Utilities
Commission, the California State Legislature, the California Department of
Water Resources and the Federal Energy Regulatory Commission; capital market
conditions, inflation rates and interest rates; energy and trading markets,
including the timing and extent of changes in commodity prices; weather
conditions; business, regulatory and legal decisions; the pace of deregulation
of retail natural gas and electricity delivery; the timing and success of
business development efforts; and other uncertainties, all of which are
difficult to predict and many of which are beyond the company's control.  These
risks and uncertainties are further discussed in the company's reports filed
with the Securities and Exchange Commission that are available through the
EDGAR system without charge at its Web site, http://www.sec.gov/ and on the
company's Web site, http://www.sempra.com/.

Sempra Energy Solutions, Sempra Energy Trading, Sempra Energy International,
Sempra Energy LNG and Sempra Energy Resources are not the same companies as the
utilities, San Diego Gas & Electric and Southern California Gas Co., and are
not regulated by the California Public Utilities Commission.

                                SEMPRA ENERGY
                                   Table A

  STATEMENT OF CONSOLIDATED INCOME (Unaudited)

                                                        Quarters ended
                                                          March 31,
  (Dollars in millions,except per share amounts)     2004           2003
  Operating revenues
  California utilities:
    Natural gas                                     $1,333         $1,162
    Electric                                           381            395
  Other                                                646            366
      Total operating revenues                       2,360          1,923
  Operating expenses
  California utilities:
    Cost of natural gas                                824            677
    Cost of electric fuel and purchased power          127            163
  Other cost of sales                                  327            219
  Other operating expenses                             521            445
  Depreciation and amortization                        165            148
  Franchise fees and other taxes                        64             56
      Total operating expenses                       2,028          1,708
  Operating income                                     332            215
  Other income (loss) - net                              5             (2)
  Interest income                                       23             12
  Interest expense                                     (80)           (74)
  Preferred dividends / distributions
   by subsidiaries                                      (2)            (7)
  Income from continuing operations before
   income taxes                                        278            144
  Income tax expense                                    57             24
  Income from continuing operations                    221            120
  Loss from discontinued operations, net of tax        (24)            (3)
  Income before cumulative effect of change in
   accounting principle                                197            117
  Cumulative effect of change in accounting
   principle, net of tax                                --            (29)
  Net income                                          $197            $88

  Weighted-average number of shares
   outstanding (thousands):
    Basic                                          228,055        206,393
    Diluted                                        231,136        207,823
  Income from continuing operations per share
   of common stock
    Basic                                            $0.97          $0.58
    Diluted                                          $0.96          $0.58
  Income before cumulative effect of change
   in accounting principle per share
   of common stock
    Basic                                            $0.86          $0.57
    Diluted                                          $0.85          $0.56
  Net income per share of common stock
    Basic                                            $0.86          $0.43
    Diluted                                          $0.85          $0.42
  Dividends declared per common share                $0.25          $0.25


                                SEMPRA ENERGY
                                   Table B

                   CONSOLIDATED BALANCE SHEETS (Unaudited)

                                                         Balance at
                                                  March 31,   December 31,
  (Dollars in millions)                             2004           2003
  Assets
  Current assets:
    Cash and cash equivalents                         $653           $432
    Short-term investments                              --            363
    Accounts receivable                                852          1,002
    Interest receivable                                 65             62
    Trading assets                                   4,997          5,250
    Regulatory assets arising from fixed-price
     contracts and other derivatives                   145            144
    Other regulatory assets                             93             89
    Inventories                                         67            147
    Other                                              155            157
     Current assets of continuing operations         7,027          7,646
     Current assets of discontinued operations         245            220
      Total current assets                           7,272          7,866
  Investments and other assets:
    Due from affiliates                                 51             55
    Regulatory assets arising from fixed-price
     contracts and other derivatives                   612            650
    Other regulatory assets                            531            554
    Nuclear decommissioning trusts                     584            570
    Investments                                      1,109          1,114
    Sundry                                             699            706
      Total investments and other assets             3,586          3,649
  Property, plant and equipment - net               10,550         10,474
  Total assets                                     $21,408        $21,989

  Liabilities and Shareholders' Equity
  Current liabilities:
    Short-term debt                                   $139            $28
    Accounts payable                                   706            843
    Income taxes payable                               142             47
    Deferred income taxes                               78             88
    Trading liabilities                              4,401          4,457
    Dividends and interest payable                     128            136
    Regulatory balancing accounts - net                527            424
    Fixed-price contracts and other derivatives        153            148
    Current portion of long-term debt                  610          1,433
    Other                                              771            704
     Current liabilities of continuing
      operations                                     7,655          8,308
     Current liabilities of discontinued
      operations                                        45             52
      Total current liabilities                      7,700          8,360
  Long-term debt                                     3,822          3,841
  Other liabilities:
    Due to affiliates                                  362            362
    Customer advances for construction                  81             89
    Postretirement benefits other than pensions        123            131
    Deferred income taxes                              193            257
    Deferred investment tax credits                     82             84
    Regulatory liabilities arising from cost
     of removal obligations                          2,268          2,238
    Regulatory liabilities arising from
     asset retirement obligations                      299            281
    Other regulatory liabilities                       108            108
    Fixed-price contracts and other derivatives        612            680
    Asset retirement obligations                       315            313
    Deferred credits and other                       1,176          1,176
      Total deferred credits and other
       liabilities                                   5,619          5,719
  Preferred stock of subsidiaries                      179            179
  Shareholders' equity                               4,088          3,890
  Total liabilities and shareholders' equity       $21,408        $21,989


                                SEMPRA ENERGY
                                   Table C

         CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited)

                                                        Quarters ended
                                                           March 31,
  (Dollars in millions)                               2004           2003
  Cash Flows from Operating Activities:
  Net income                                          $197            $88
  Adjustments to reconcile net income to
   net cash provided by operating activities:
      Loss from discontinued operations                 24              3
      Cumulative effect of change in
       accounting principle                             --             29
      Depreciation and amortization                    165            148
      Deferred income taxes and investment
       tax credits                                     (22)           (32)
      Other - net                                       16             23
  Net changes in other working capital components      427            431
  Changes in other assets                              (12)            (5)
  Changes in other liabilities                         (13)             6
      Net cash provided by operating activities        782            691
  Cash Flows from Investing Activities:
  Expenditures for property, plant and equipment      (219)          (193)
  Net proceeds from sale of short-term
   investments                                         363 (1)         --
  Investments and acquisitions of subsidiaries,
   net of cash acquired                                 (7)           (80)
  Dividends received from affiliates                    10             --
  Loans to affiliate                                    --            (46)
  Other - net                                            2             --
      Net cash provided by (used in)
       investing activities                            149           (319)
  Cash Flows from Financing Activities:
  Common dividends paid                                (57)           (52)
  Issuances of common stock                             55             19
  Repurchases of common stock                           (2)            (3)
  Issuances of long-term debt                           21            400
  Payments on long-term debt                          (857)          (224)
  Increase (decrease) in short-term debt - net         134           (158)
  Other - net                                           (2)            (6)
      Net cash used in financing activities           (708)           (24)
  Increase in cash from continuing operations          223            348
  Cash used in discontinued operations                  (2)            --
  Increase in cash and cash equivalents                221            348
  Cash and cash equivalents, January 1                 432            455
  Cash and cash equivalents, March 31                 $653           $803

  (1) Proceeds from the sale of U.S. Treasury obligations which previously
      securitized the Mesquite synthetic lease.


                                SEMPRA ENERGY
                                   Table D

  BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited)

                                                        Quarters ended
                                                          March 31,
  (Dollars in millions)                               2004        2003
  Net Income
    California Utilities:
    San Diego Gas & Electric                           $50         $45
    Southern California Gas                             56          58
      Total California Utilities                       106         103

  Global Enterprises:
    Trading                                             59          10
    Resources                                           37          10
    International / LNG                                 17           7
    Solutions                                           (4)         --
      Total Global Enterprises                         109          27

  Financial                                             10          11

  Parent & Other                                        (4)        (21)

  Continuing Operations                                221         120

  Discontinued Operations (1)                          (24)         (3)

  Cumulative Effect of Change in
   Accounting Principle                                 --         (29) (2)

  Consolidated Net Income                             $197         $88

  (1)  Reflects Atlantic Electric & Gas.
  (2)  The effects to Trading and Solutions were ($28) and ($1),
       respectively.


                                                        Quarters ended
                                                          March 31,
  (Dollars in millions)                               2004        2003
  Capital Expenditures and Investments
  California Utilities:
    San Diego Gas & Electric                           $69         $89
    Southern California Gas                             62          58
      Total California Utilities                       131         147

  Global Enterprises:
    Resources                                           15          84
    Trading                                             46           7
    International/LNG                                   27          26
      Total Global Enterprises                          88         117

  Parent & Other                                         7           9

  Consolidated Capital Expenditures and Investments   $226        $273


                                SEMPRA ENERGY
                                   Table E

                    OTHER OPERATING STATISTICS (Unaudited)

                                                        Quarters ended
                                                          March 31,
  CALIFORNIA UTILITIES                                2004           2003
  Revenues (Dollars in millions)
    SDG&E (excludes intercompany sales)               $575           $559
    SoCalGas (excludes intercompany sales)          $1,139           $998

  Gas Sales (Bcf)                                      140            125
  Transportation and Exchange (Bcf)                    158            134
  Total Deliveries (Bcf)                               298            259
  Total Gas Customers (Thousands)                    6,231          6,146

  Electric Sales (Millions of kWhs)                  3,812          3,609
  Direct Access (Millions of kWhs)                     729            806
  Total Deliveries (Millions of kWhs)                4,541          4,415
  Total Electric Customers (Thousands)               1,301          1,284

  RESOURCES
  Power Sold (Millions of kWhs)                      4,477          1,403

  SOLUTIONS
  Revenues (Dollars in millions)                       $30            $42

  INTERNATIONAL
  (Represents 100% of these subsidiaries, although only the Mexican
   subsidiaries are 100% owned by Sempra Energy).
  Natural Gas Sales (Bcf)
    Argentina                                           51             42
    Mexico                                              10              9
    Chile                                                1              1
  Natural Gas Customers (Thousands)
    Argentina                                        1,414          1,367
    Mexico                                             101             85
    Chile                                               37             36
  Electric Sales (Millions of kWhs)
    Peru                                             1,007          1,018
    Chile                                              508            481
  Electric Customers (Thousands)
    Peru                                               736            721
    Chile                                              499            487


  TRADING
                                                        Quarters ended
                                                          March 31,
  Trading Margin (Dollars in millions)                2004           2003
  Geographical:
    North America                                     $113            $62
    Europe/Asia                                         84             22
    Total                                             $197            $84

  Product Line:
    Gas                                                $41            $30
    Power                                               38             (2)
    Oil - Crude & Products                              41             32
    Metals                                              58              7
    Other                                               19             17
    Total                                             $197            $84

  Physical Statistics
  Natural Gas (BCF/Day)                               13.7           13.5
  Electric (Billions of kWhs)                         92.9           66.1
  Oil & Liquid Products (Millions Bbls/Day)            2.0            1.4


                           Fair
  Net Unrealized       Market Value
   Revenue (Dollars      March 31,       Scheduled Maturity (in months)
   in millions)            2004     0 - 12    13 - 24    25 - 36    > 36
  Sources of
   Over-the-Counter
   (OTC) Fair Value:
    Prices actively
     quoted               $295      $223       $36        $(4)      $40
    Prices provided
     by other
     external sources        8        (6)       --         --        14
    Prices based on
     models and other
     valuation
     methods                24         8         2         --        14
      Total OTC
       Fair
       Value (1)           327       225        38         (4)       68

  Maturity of OTC
   Fair Value
    Percentage          100.0%     68.8%     11.6%      -1.2%     20.8%
    Cumulative
     Percentages                   68.8%     80.4%      79.2%    100.0%

  Exchange
   Contracts (2)           134       $68       $58        $15       $(7)

  Total Net
   Unrealized
   Revenue                $461

  (1)  The present value of unrealized revenue to be received or (paid) from
       outstanding OTC contracts
  (2)  Cash received associated with open Exchange Contracts


  Credit Quality of Unrealized
   Trading Assets (net of margin)

                  March 31, December 31, September 30, June 30, March 31,
                     2004        2003         2003       2003      2003
  Commodity
   Exchanges          6%          8%           8%          6%       7%
  Investment
   Grade             63%         70%          66%         71%      62%
  Below
   Investment
   Grade             31%         22%          26%         23%      31%


                                                        Quarters ended
                                                           March 31,
  Risk Adjusted Performance Indicators                2004           2003
  VaR at 95% (Dollars in millions) (1)                $5.7          $10.0
  VaR at 99% (Dollars in millions) (2)                $8.1          $14.1
  Risk Adjusted Return on Capital (RAROC) (3)          41%            12%

  (1)  Average Daily Value-at-Risk for the period using a 95% confidence
       level
  (2)  Average Daily Value-at-Risk for the period using a 99% confidence
       level
  (3)  Average Daily Trading Margin/Average Daily VaR at 95% confidence
       level


DATASOURCE: Sempra Energy



CONTACT:  media, Doug Kline, [phone], or financial, Dennis

Arriola or Karen Sedgwick, [phone], all of Sempra Energy



Web site:  http://www.sempra.com/ 

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