UNITED STATES 
    SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
   FORM 10-Q
    (X) QUARTERLY
    REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
  For the
    Quarterly Period Ended June 30, 2008
  OR ( )
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
  For the
    transition period from
    to.
  Commission
    File Number 0-50272
   SALOMON SMITH BARNEY AAA ENERGY FUND L.P. II
    New York

03-0407557(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)    c/o Citigroup
    Managed Futures LLC
 731 Lexington Avenue  25th Fl.
 New York, New York 10022
    (212) 559-2011
       Yes X     No
    Large accelerated filer
      Accelerated filer
      Non-accelerated filer
    X  Smaller reporting Company
  Rule 12b-2
  Yes     No X




---



##### 



SALOMON
    SMITH BARNEY AAA ENERGY FUND L.P. II
  FORM 10-Q
  INDEX
  PageNumberPART I - Financial Information:Item 1.

Financial Statements:Statements of Financial Condition at June 30, 2008 and
    December 31, 2007 (unaudited)

3Statements of Income and Expenses and Partners Capital for
    the three and six months ended June 30, 2008 and 2007
    (unaudited)

4Statements of Cash Flows for the three and six months ended
    June 30, 2008 and 2007 (unaudited)

5Notes to Financial Statements, including the Financial
    Statements of SB AAA Master Fund LLC (unaudited)

6  16Item 2.

Managements Discussion and Analysis of Financial Condition
    and Results of Operations

17  21Item 3.

Quantitative and Qualitative Disclosures about Market Risk

22Item 4.

Controls and Procedures

23PART II - Other Information

24  26  2




---



##### 



PART I Item 1.
    Financial Statements  Salomon
    Smith Barney AAA Energy Fund L.P. IIStatements of Financial Condition
    (Unaudited)
  June 30,


December 31,2008


2007Assets:Investment in Master, at fair value

$
465,151,572


$
455,299,772Cash


166,390



133,462Distribution receivable


17,894



619,873Total assets

$
465,335,856


$
456,053,107Liabilities and Partners Capital:Liabilities:Accrued expenses:Brokerage commissions

$
2,332,079


$
1,572,916Management fees


771,476



757,271Administrative fees


192,869



189,318Other


118,332



117,888Redemptions payable


8,011,239



8,505,903Total liabilities


11,425,995



11,143,296Partners Capital:General Partner, 2,051.6401 Unit Equivalents outstanding in 2008
    and 2007, respectively


6,755,620



5,853,001Special Limited Partner, 4,959.8779 and 225.0562 Redeemable
    Units of Limited Partnership Interest outstanding in 2008 and
    2007, respectively


16,331,836



642,049Limited Partners, 130,838.0249 and 153,676.4513 Redeemable Units
    of Limited Partnership Interest outstanding in 2008 and 2007,
    respectively


430,822,405



438,414,761Total partners capital


453,909,861



444,909,811Total liabilities and partners capital

$
465,335,856


$
456,053,107    3




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. IIStatements of Income and Expenses and
    Partners Capital
    (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Income:Net realized gains (losses) on closed positions allocated from
    Master

$
(41,752,467
)

$
32,120,694


$
(67,401,109
)

$
22,980,346Change in net unrealized gains (losses) on open positions
    allocated from Master


111,657,730



9,504,386



154,284,518



16,186,764Interest income allocated from Master


260,346



3,605,493



1,392,960



7,583,938Expenses allocated from Master


(437,264
)


(427,877
)


(824,170
)


(897,458
)Total income (loss)


69,728,345



44,802,696



87,452,199



45,853,590Expenses:Brokerage commissions


2,142,379



1,562,249



3,875,073



3,094,510Management fees


2,273,337



2,460,320



4,489,880



4,853,911Administrative fees


568,335



615,080



1,122,471



1,213,478Other


103,793



45,547



189,292



95,951Total expenses


5,087,844



4,683,196



9,676,716



9,257,850Net income (loss) before allocation to Special Limited Partner


64,640,501



40,119,500



77,775,483



36,595,740Allocation to Special Limited Partner


(12,876,031
)


(6,007,561
)


(15,286,774
)


(6,007,561
)Net income (loss) after allocation to Special Limited Partner


51,764,470



34,111,939



62,488,709



30,588,179Additions  Limited Partners


1,500,000



1,000,000



5,480,000



1,000,000Additions  Special Limited Partner


12,876,031



6,007,561



15,286,774



6,007,561Redemptions  Limited Partners


(34,338,445
)


(17,785,152
)


(74,255,433
)


(44,116,232
)Redemptions  Special Limited Partner






(12,707,247
)






(12,707,247
)Redemptions  General Partner














(1,161,472
)Net increase (decrease) in Partners Capital


31,802,056



10,627,101



9,000,050



(20,389,211
)Partners Capital, beginning of period


422,107,805



471,523,770



444,909,811



502,540,082Partners Capital, end of period

$
453,909,861


$
482,150,871


$
453,909,861


$
482,150,871Net Asset Value per Unit (137,849.5429 and 173,863.4994 Units
    outstanding at June 30, 2008 and 2007, respectively)

$
3,292.79


$
2,773.16


$
3,292.79


$
2,773.16Net income (loss) per Redeemable Unit of Limited Partnership
    Interest and General Partner Unit Equivalent

$
368.73


$
190.06


$
439.95


$
175.65    4




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. IIStatements of Cash Flows
    (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Cash flows from operating activities:Net income (loss) after allocation to Special Limited Partner

$
51,764,470


$
34,111,939


$
62,488,709


$
30,588,179Adjustments to reconcile net income (loss) after allocation to
    Special Limited Partner to net cash provided by (used in)
    operating activities:Changes in operating assets and liabilities:Purchase of investment in Master


(3,910,743
)


(1,000,000
)


(8,532,792
)


(19,782,467
)Proceeds from sale of investment in Master


46,534,843



30,012,522



86,735,170



79,132,806Net change in unrealized (appreciation) depreciation on
    investment in Master


(69,905,659
)


(44,802,696
)


(88,054,178
)


(45,853,590
)(Increase) decrease in distribution receivable


177,314







601,979



Accrued expenses:Increase (decrease) in brokerage commissions


518,061



332,746



759,163



163,323Increase (decrease) in management fees


44,298



25,761



14,205



(22,716
)Increase (decrease) in administrative fees


11,074



6,440



3,551



(5,679
)Increase (decrease) in other


17,128



(23,016
)


444



7,354Net cash provided by (used in) operating activities


25,250,786



18,663,696



54,016,251



44,227,210Cash flows from financing activities:Proceeds from additions  Limited Partners


1,500,000



1,000,000



5,480,000



1,000,000Allocation of units  Special Limited Partner


12,876,031



6,007,561



15,286,774



6,007,561Payments for redemptions  Limited Partners


(39,617,408
)


(12,987,825
)


(74,750,097
)


(37,328,679
)Payments for redemptions  Special Limited Partner






(12,707,247
)






(12,707,247
)Payments for redemptions  General Partner














(1,161,472
)Net cash used in financing activities


(25,241,377
)


(18,687,511
)


(53,983,323
)


(44,189,837
)Net change in cash


9,409



(23,815
)


32,928



37,373Cash, at beginning of period


156,981



88,316



133,462



27,128Cash, at end of period

$
166,390


$
64,501


$
166,390


$
64,501Non-cash financing activities:Change in redemptions payable

$
(5,278,963
)

$



$
(494,664
)

$
    5




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. IINotes to Financial Statements
    June 30, 2008
    (Unaudited)
  1.
    General:          Form 10-K
   6




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
    SB AAA
    Master Fund LLC
    Statements of Financial Condition
    (Unaudited)
  June 30,


December 31,2008


2007Assets:Equity in commodity futures trading account:Cash (restricted $1,620,046 in 2008 and 2007, respectively)

$
316,919,772


$
710,357,437Unrealized appreciation on open swaps contracts


318,321,898



92,444,714Commodity options owned, at fair value (cost $742,200,309 and
    $359,627,764, respectively)


1,969,968,117



349,972,9592,605,209,787



1,152,775,110Due from brokers


3,516,060



5,911,586Interest receivable


45,297



1,444,226Total assets

$
2,608,771,144


$
1,160,130,922Liabilities and Members Capital:Liabilities:Net unrealized depreciation on open futures contracts

$
567,499,563


$
42,694,277Unrealized depreciation on open swap contracts


18,872,129



15,443,679Commodity options written, at fair value (premium
    $400,397,059 and $163,294,959, respectively)


904,430,401



91,112,724Accrued expenses:Other


43,728



94,011Due to brokers


5,360,990



5,772,030Distribution payable


42,803



1,438,406Redemptions payable






4,122,259Total liabilities


1,496,249,614



160,677,386Members Capital:Members Capital, 169,286.3660 and 184,668.8591 Units
    outstanding in 2008 and 2007, respectively


1,112,521,530



999,453,536Total liabilities and members capital

$
2,608,771,144


$
1,160,130,922  7




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  SB AAA
    Master Fund LLC
 Schedule of Investments
 June 30, 2008
 (Unaudited)
  Number of





% of MembersContracts


Fair Value


CapitalFutures Contracts PurchasedEnergyICE HH N Gas Swap Aug 08 - Dec 12


9,784


$
68,667,003



6.17
%IPE Gas Oil Dec 08 - Jan 10


4,103



62,973,450



5.66NYMEX Brent Financial Dec 08 - Dec 08


1,040



75,474,100



6.78NYMEX Heating Oil Oct 08 - Dec 10


5,682



101,981,767



9.17NYMEX HH N Gas Swap Aug 08 - Sep 11


10,242



94,768,670



8.52NYMEX Natural Gas Aug 08 - Dec 12


10,230



244,410,035



21.97NYMEX NYH RBOB Gas Aug 08 - Dec 09


4,361



87,646,108



7.88Other






141,952,224



12.76Total Futures Contracts Purchased






877,873,357



78.91Futures Contracts SoldEnergyIPE Brent Crude Oil Aug 08 - Dec 14


(6,670
)


(305,682,167
)


(27.48
)IPE Gas Oil Jul 08 - Dec 10


(6,122
)


(85,348,000
)


(7.67
)NYMEX Heating Oil Aug 08 - Jun 09


(6,899
)


(82,237,205
)


(7.39
)NYMEX HH N Gas Swap Sep 08 - Dec 14


(23,506
)


(152,620,717
)


(13.72
)NYMEX Natural Gas Sep 08 - Dec 14


(17,321
)


(314,628,180
)


(28.28
)NYMEX NYH RBOB Gas Oct 08 - Nov 09


(7,512
)


(256,276,049
)


(23.04
)NYMEX WTI Financial Dec 08 - Dec 08


(1,409
)


(83,757,950
)


(7.53
)Other






(164,822,652
)


(14.81
)Total Futures Contracts Sold






(1,445,372,920
)


(129.92
)Options OwnedEnergyIPE Gas Oil C Aug 08 - Dec 10


6,892



257,656,710



23.16NYMEX Crude Oil EC Sep 08 - Dec 11


8,261



339,691,790



30.53NYMEX LS Crude Oil C Sep 08 - Dec 10


6,079



220,684,120



19.84NYMEX Natural Gas EC Aug 08 - Oct 12


28,585



910,774,805



81.87NYMEX Natural Gas C Oct 08 - Oct 09


2,512



84,833,160



7.62Other






156,327,532



14.05Total Options Owned






1,969,968,117



177.07Options WrittenEnergyNYMEX Crude Oil EC Sep 08 - Dec 16


(2,447
)


(60,520,840
)


(5.44
)NYMEX Heating Oil C Dec 08 - Dec 09


(1,217
)


(73,065,901
)


(6.57
)NYMEX Heating Oil EC Aug 08 - Dec 09


(2,941
)


(143,192,658
)


(12.87
)NYMEX LS Crude Oil C Aug 08 - Dec 09


(5,834
)


(91,436,180
)


(8.22
)NYMEX Natural Gas EC Aug 08 - Oct 10


(10,908
)


(350,365,955
)


(31.49
)NYMEX Natural Gas C Aug 08 - Aug 10


(2,750
)


(94,181,600
)


(8.47
)Other






(91,667,267
)


(8.24
)Total Options Written






(904,430,401
)


(81.30
)Unrealized Appreciation on Swap ContractsEnergyBrent Crude Oil






204,696,019



18.40Crude Oil






70,594,934



6.34Other






43,030,945



3.87Total Unrealized Appreciation on Swap Contracts






318,321,898



28.61Unrealized Depreciation on Swap ContractsEnergy






(18,872,129
)


(1.69
)Total Unrealized Depreciation on Swap Contracts






(18,872,129
)


(1.69
)Total fair value





$
797,487,922



71.68
%  8




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  SB AAA
    Master Fund LLC
    Schedule of Investments
    December 31, 2007
    (Unaudited)
  Number of





% of MembersContracts


Fair Value


CapitalFutures Contracts PurchasedEnergy





$
162,833,367



16.29
%Futures Contracts SoldEnergyIPE Brent Crude Oil Feb 08 - Dec 10


6,602



(77,608,996
)


(7.76
)Other






(126,738,498
)


(12.68
)Grains






(1,180,150
)


(0.12
)Total Futures Contracts Sold






(205,527,644
)


(20.56
)Options OwnedEnergyNYMEX Crude Oil Mar 08 - Dec 11


6,694



62,612,920



6.27NYMEX Natural Gas Feb 08 - Oct 12


27,108



218,208,060



21.83Other






66,409,454



6.65Grains






2,742,525



0.27Total Options Owned






349,972,959



35.02Options WrittenEnergy






(91,112,724
)


(9.12
)Unrealized Appreciation on Swap ContractsEnergy






92,444,714



9.25Unrealized Depreciation on Swap ContractsEnergy






(15,443,679
)


(1.55
)Total fair value





$
293,166,993



29.33
%  9




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  SB AAA
    Master Fund LLC
    Statements of Income and Expenses and Members Capital
    (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Income:Net gains (losses) on trading of commodity interests:Net realized gains (losses) on closed positions

$
(99,509,226
)

$
65,951,878


$
(156,630,223
)

$
47,403,468Change in net unrealized gains (losses) on open positions


263,468,933



19,886,679



358,850,486



34,205,997Gain (loss) from trading, net


163,959,707



85,838,557



202,220,263



81,609,465Interest income


633,607



7,769,414



3,280,070



16,001,924Total income (loss)


164,593,314



93,607,971



205,500,333



97,611,389Expenses:Brokerage commissions including clearing fees of $635,315,
    $551,285, $1,266,527, and $1,098,408, respectively


815,309



780,692



1,547,189



1,611,546Other


212,803



103,749



348,803



207,499Total expenses


1,028,112



884,441



1,895,992



1,819,045Net income (loss)


163,565,202



92,723,530



203,604,341



95,792,344Additions


39,657,908



32,569,506



54,398,042



81,572,539Redemptions


(86,032,294
)


(47,114,740
)


(141,674,303
)


(119,164,540
)Distribution of interest income to feeder funds


(625,663
)


(7,707,260
)


(3,260,086
)


(15,878,435
)Net increase (decrease) in Members Capital


116,565,153



70,471,036



113,067,994



42,321,908Members Capital, beginning of period


995,956,377



965,210,771



999,453,536



993,359,899Members Capital, end of period

$
1,112,521,530


$
1,035,681,807


$
1,112,521,530


$
1,035,681,807Net Asset Value per Unit (169,286.3660 and 199,202.7824 Units
    outstanding at June 30, 2008 and 2007, respectively)

$
6,571.83


$
5,199.13


$
6,571.83


$
5,199.13Net income (loss) per Unit of Member Interest

$
954.63


$
462.46


$
1,177.80


$
482.14  10




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  SB AAA
    Master Fund LLC
    Statements of Cash Flows
    (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Cash flows from operating activities:Net income (loss)

$
163,565,202


$
92,723,530


$
203,604,341


$
95,792,344Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities:Changes in operating assets and liabilities:(Increase) decrease in restricted cash














52,065,847(Increase) decrease in net unrealized appreciation on open
    futures contracts






(4,625,838
)






12,567,290(Increase) decrease in unrealized appreciation on open swaps
    contracts


(190,299,876
)


(16,303,303
)


(225,877,184
)


(34,186,702
)(Increase) decrease in commodity options owned, at fair value


(1,229,189,529
)


(107,167,204
)


(1,619,995,158
)


(196,261,249
)(Increase) decrease in due from brokers


(2,548,736
)


(89,681
)


2,395,526



10,280,758(Increase) decrease in interest receivable


422,309



344,391



1,398,929



395,848Increase (decrease) in net unrealized depreciation on open
    futures contracts


477,086,723







524,805,286



Increase (decrease) in unrealized depreciation on open swap
    contracts


2,712,670



339,205



3,428,450



4,325,387Increase (decrease) in commodity options written, at fair value


558,627,199



46,302,427



813,317,677



97,843,587Accrued expenses:Increase (decrease) in other


(120,886
)


99,331



(50,283
)


192,881Increase (decrease) in due to brokers


3,259,470



(217,416
)


(411,040
)


(12,742,320
)Net cash provided by (used in) operating activities


(216,485,454
)


11,405,442



(297,383,456
)


30,273,671Cash flows from financing activities:Proceeds from additions


39,657,908



32,569,506



54,398,042



81,572,539Payments for redemptions


(86,032,294
)


(47,114,740
)


(145,796,562
)


(119,164,540
)Distribution of interest income to feeder funds


(1,047,127
)


(8,050,957
)


(4,655,689
)


(16,273,676
)Net cash provided by (used in) financing activities


(47,421,513
)


(22,596,191
)


(96,054,209
)


(53,865,677
)Net change in unrestricted cash


(263,906,967
)


(11,190,749
)


(393,437,665
)


(23,592,006
)Unrestricted cash, at beginning of period


579,206,693



735,728,205



708,737,391



748,129,462Unrestricted cash, at end of period

$
315,299,726


$
724,537,456


$
315,299,726


$
724,537,456Non-cash financing activities:Change in distribution payable

$
(421,464
)

$



$
(1,395,603
)

$
Change in redemptions payable

$



$



$
(4,122,259
)

$
  11




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  2.
    Financial
    Highlights:    Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Net realized and unrealized gains (losses)*

$
480.31


$
221.25


$
579.21


$
202.16Interest income


1.85



20.17



9.17



41.24Expenses and allocation to Special Limited Partner**


(113.43
)


(51.36
)


(148.43
)


(67.75
)Increase (decrease) for the period


368.73



190.06



439.95



175.65Net Asset Value per Redeemable Unit, beginning of period


2,924.06



2,583.10



2,852.84



2,597.51Net Asset Value per Redeemable Unit, end of period

$
3,292.79


$
2,773.16


$
3,292.79


$
2,773.16   *
    
    Includes Partnership commissions and expenses allocated from the
    Master.**
    
    Excludes Partnership commissions, expenses allocated from the
    Master and includes allocation to Special Limited Partner
    in 2008 and 2007.  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Ratios to average net assets:***Net investment income (loss) before allocation to Special
    Limited Partner****


(4.9
)%


(1.3
)%


(4.2
)%


(1.1
)%Operating expense


5.1
%


4.3
%


4.9
%


4.3
%Allocation to Special Limited Partner


3.0
%


1.3
%


3.5
%


1.3
%Total expenses and allocation to Special Limited Partner


8.1
%


5.6
%


8.4
%


5.6
%Total return:Total return before allocation to Special Limited Partner


15.8
%


8.7
%


19.3
%


8.1
%Allocation to Special Limited Partner


(3.2
)%


(1.3
)%


(3.9
)%


(1.3
)%Total return after allocation to Special Limited Partner


12.6
%


7.4
%


15.4
%


6.8
%   ***
    
    Annualized (except for allocation to Special Limited Partner, if
    applicable)****
    
    Interest income allocated from Master less total expenses
    (exclusive of allocation to Special Limited Partner, if
    applicable)   12




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
    Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Net realized and unrealized gains (losses)*

$
952.19


$
424.20


$
1,161.58


$
404.09Interest income


3.69



38.78



18.22



79.08Expenses**


(1.25
)


(0.52
)


(2.00
)


(1.03
)Increase (decrease) for the period


954.63



462.46



1,177.80



482.14Distribution of interest income to feeder funds


(3.64
)


(38.47
)


(18.11
)


(78.47
)Net Asset Value per Unit of Member Interest, beginning of period


5,620.84



4,775.14



5,412.14



4,795.46Net Asset Value per Unit of Member Interest, end of period

$
6,571.83


$
5,199.13


$
6,571.83


$
5,199.13   *
    
    Includes brokerage commissions**
    
    Excludes brokerage commissions  Three Months Ended June 30,


Six Months Ended June 30,2008


2007


2008


2007Ratios to average net assets:***Net investment income (loss)****


(0.2
)%


2.7
%


0.3
%


2.9
%Operating expense


0.4
%


0.4
%


0.4
%


0.4
%Total return


17.0
%


9.7
%


21.8
%


10.1
%    ***
    
    Annualized****
    
    Interest income less total expenses    3.
    Trading
    Activities:       13




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
      4.
    Fair
    Value Measurements:  Investments.
  Fair Value Measurements. Fair Value Measurements No. FAS 157-2, Effective Date of FASB Statement No. 157
    Quoted Prices inActive Markets for


Significant Other


SignificantIdentical Assets


Observable Inputs


Unobservable Inputs6/30/2008


(Level 1)


(Level 2)


(Level 3)AssetsInvestment in Master

$
465,151,572


$



$
465,151,572


$
Total fair value

$
465,151,572


$



$
465,151,572


$
   Investments.
  Fair Value Measurements. Fair Value Measurements
 14




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
  No. FAS 157-2, Effective Date of FASB Statement No. 157
    Quoted Prices inActive Markets for


Significant Other


SignificantIdentical Assets


Observable Inputs


Unobservable Inputs6/30/2008


(Level 1)


(Level 2)


(Level 3)AssetsOptions owned

$
1,969,968,117


$
1,969,968,117


$



$
Swaps


318,321,898







318,321,898



Total assets


2,288,290,015



1,969,968,117



318,321,898



LiabilitiesFutures

$
567,499,563


$
567,499,563


$



$
Options written


904,430,401



904,430,401







Swaps


18,872,129







18,872,129



Total liabilities


1,490,802,093



1,471,929,964



18,872,129



Total fair value

$
797,487,922


$
498,038,153


$
299,449,769


$
   5.
    Financial
    Instrument Risks:   15




---



##### 



Salomon
    Smith Barney AAA Energy Fund L.P. II
    Notes to Financial Statements
    June 30, 2008
    (Unaudited)
             16




---



##### 



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  Liquidity and Capital Resources
        and/or
    Critical Accounting Policies
  Use of Estimates.
  Investments.
  Fair Value Measurements. Fair Value Measurements No. FAS 157-2, Effective Date of FASB Statement No. 157
   17




---



##### 



Quoted Prices inActive Markets for


Significant Other


SignificantIdentical Assets


Observable Inputs


Unobservable Inputs6/30/2008


(Level 1)


(Level 2)


(Level 3)AssetsInvestment in Master

$
465,151,572


$



$
465,151,572


$
Total fair value

$
465,151,572


$



$
465,151,572


$
   Investments.
  Fair Value Measurements. Fair Value Measurements No. FAS 157-2, Effective Date of FASB Statement No. 157
    18




---



##### 



Quoted Prices inActive Markets for


Significant Other


SignificantIdentical Assets


Observable Inputs


Unobservable Inputs6/30/2008


(Level 1)


(Level 2)


(Level 3)AssetsOptions owned

$
1,969,968,117


$
1,969,968,117


$



$
Swaps


318,321,898







318,321,898



Total assets


2,288,290,015



1,969,968,117



318,321,898



LiabilitiesFutures

$
567,499,563


$
567,499,563


$



$
Options written


904,430,401



904,430,401







Swaps


18,872,129







18,872,129



Total liabilities


1,490,802,093



1,471,929,964



18,872,129



Total fair value

$
797,487,922


$
498,038,153


$
299,449,769


$
   Income and Expenses Recognition.
  Options.
  Forward Foreign Currency Contracts. agreed-upon
  Income Taxes.
      Recent Accounting Pronouncement.
 19




---



##### 



Results of Operations
           20




---



##### 



30-day 3-month and/or 90-day
       21




---



##### 



Item 3.
    Quantitative
    and Qualitative Disclosures about Market Risk          one-day
  Form 10-K
  June 30,
    2008
    (Unaudited)
  Three Months Ended June 30, 2008% of Total


High


Low


AverageMarket Sector

Value at Risk


Capital


Value at Risk


Value at Risk


Value at Risk*Energy

$
154,277,694



13.87
%

$
179,466,923


$
107,720,171


$
144,064,745Energy Swaps


1,620,046



0.14
%


1,620,046



1,620,046



1,620,046Total

$
155,897,740



14.01
%   *
    
    Average monthly Values at Risk 22




---



##### 



Item 4.
    Controls
    and Procedures      Rule 13a-15(e) 15d-15(e)
  internal control over financial
    reporting
  
    pertain to the maintenance of records that in reasonable detail
    accurately and fairly reflect the transactions and dispositions
    of the assets of the Partnership;
    provide reasonable assurance that (i) transactions are
    recorded as necessary to permit preparation of financial
    statements in accordance with U.S. generally accepted
    accounting principles, and (ii) the Partnerships
    receipts are handled and expenditures are made only pursuant to
    authorizations of the General Partner; and
    provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of the
    Partnerships assets that could have a material effect on
    the financial statements.   23




---



##### 



PART II.
    OTHER INFORMATION  Item 1.
    Legal
    Proceedings  Form 10-K Form 10-Q
  Enron
  Ahlich v. Arthur Andersen, L.L.P. Delgado v. Fastow Pearson v. Fastow Rosen v. Fastow Bullock v. Arthur Andersen, L.L.P. Choucroun v. Arthur Andersen, L.L.P. Guy v. Arthur Andersen, L.L.P. Adams v. Arthur Andersen, L.L.P. Jose v. Arthur Andersen, L.L.P. Odam, et al., v. Enron Corp., et al
      IPO Civil
    Litigation
    Subprime
    Mortgage-Related Litigation
  In Re
    Citigroup Inc. Shareholder Derivative Litigation
  In Re American Home
    Mortgage Securities Litigation
  In Re Countrywide
    Financial Corp. Securities Litigation
  Other
    Matters
    Auction
    Rate Securities
  In Re Citigroup Auction Rate securities
    Litigation
 24




---



##### 



and/or
  Ferguson Family Trust v. Falcon
  Strategies Two LLC, et
    al.
  In re MAT Five Securities
    Litigation
  Item 1A.
    Risk
    Factors  Form 10-K
   25




---



##### 



Item 2.
    Unregistered
    Sales of Equity Securities and Use of Proceeds        (d) Maximum Number(or Approximate(c) Total Number



Dollar Value) ofof Redeemable Units



Redeemable Units(a) Total Number



(b) Average



Purchased as Part



that May Yet Beof Redeemable



Price Paid per



of Publicly Announced



Purchased Under thePeriod


Units Purchased*



Redeemable Unit**



Plans or Programs



Plans or ProgramsApril 1, 2008  April 30, 2008



5,149.4008



$
3,068.57




N/A




N/AMay 1, 2008  
    May 31, 2008



3,318.9996



$
3,171.41




N/A




N/AJune 1, 2008  
    June 30, 2008



2,432.9637



$
3,292.79




N/A




N/A10,901.3641



$
3,149.92




N/A




N/A       Item 3.
    Defaults
    Upon Senior Securities  None  Item 4.
    Submission
    of Matters to a Vote of Security Holders 
    None  Item 5.
    Other
    Information  None  Item 6.
    Exhibits  Regulation S-K Form 10-K
  Rule 13a-14(a)/15d-14(a)
  Rule 13a-14(a)/15d-14(a)
     26




---



##### 



SIGNATURES
     SALOMON SMITH BARNEY AAA ENERGY FUND L.P. II
  By:


Citigroup Managed Futures LLC(General Partner)By:


/s/  Jerry
    PascucciJerry Pascucci 
    President and DirectorDate:


August 14, 2008By:


/s/  Jennifer
    MagroJennifer Magro
    Chief Financial Officer and 
    DirectorDate:


August 14, 2008  27