Sempra Energy isn't joining the Marines, but it is faithful to making money in utility markets in the US and around the world. In the US Sempra distributes natural gas to more than 6.6 million customer meters and electricity to 1.4 million customer meters through its Southern California Gas (SoCalGas) and San Diego Gas & Electric (SDG&E) utilities. Other reporting segments include Sempra US Gas & Power (natural gas and renewables) and Sempra International (Sempra Mexico and Sempra South American Utilities), which were formerly known as Sempra Global. Sempra Energy companies serve more than 31 million consumers worldwide.
Boosting its international utility holdings, in 2011 Sempra Energy acquired AEI's stakes in two jointly owned South American utilities (Chilquinta Energia and Luz del Sur) for $875 million.
The company develops and acquires merchant power plants (Sempra Generation, formerly Sempra Energy Resources), liquefied natural gas (LNG) regasification facilities (Sempra LNG), and affordable housing properties.
Acquisitions, plus higher power rates at SDG&E, lifted electric revenues by more than $1.3 billion in 2011, and overall company revenues by 11%, despite weaker revenue performances by its gas utility and energy-related businesses. The stronger performance and lower fuel and purchased power prices, coupled with cost savings from reorganizing, lifted Sempra Energy's 2011 net income by 82%.
Building its midstream portfolio, in 2010 the company acquired El Paso's Mexico-based pipeline and compression assets for $300 million.
In 2010 and 2011 Sempra Energy exited the commodities trading business. (In 2008 Sempra Energy had formed a partnership with The Royal Bank of Scotland to operate RBS Sempra Commodities, including Sempra Energy Trading, which traded and markets wholesale energy commodities in Asia, Europe, and North America. However, to refocus its operations around its more financially reliable North American businesses, to pay down debt, and to meet EU antitrust requirements, in 2010 the company sold the European and Asian segments of this partnership to JP Morgan Chase for about $1.6 billion. It also sold that unit's retail commodity operations to Noble Group for $318 million, and eventually wound down its joint venture with The Royal Bank of Scotland).
In early 2012 the company consolidated Sempra Generation, Sempra Pipelines & Storage, and Sempra LNG (together formerly Sempra Global) into Sempra International and Sempra US Gas & Power to improve its management and pursue strategic initiatives. Sempra US Gas & Power includes natural gas and renewables while Sempra International includes subsidiaries Sempra Mexico and Sempra South American Utilities.
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