SEMPRA - INVESTMENTS IN UNCONSOLIDATED ENTITIES

3 Months Ended

Mar. 31, 2025

SEMPRA - INVESTMENTS IN UNCONSOLIDATED ENTITIES

SEMPRA – INVESTMENTS IN UNCONSOLIDATED ENTITIES

We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. Equity earnings and losses, both before and net of income tax, are combined and presented as Equity Earnings on the Condensed Consolidated Statements of Operations. Distributions received from equity method investees are classified in the Condensed Consolidated Statements of Cash Flows as either a return on investment in operating activities or a return of investment in investing activities based on the “nature of the distribution” approach. See Note 13 for information on equity earnings and losses, both before and net of income tax, by segment. See Note 1 for information on how equity earnings and losses before income taxes are factored into the calculations of our pretax income or loss and ETR.

We provide additional information concerning our equity method investments in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.

ONCOR HOLDINGS

We account for our 100% equity ownership interest in Oncor Holdings, which owns an 80.25% interest in Oncor, as an equity method investment. Due to the ring-fencing measures, governance mechanisms and commitments in effect, we do not have the power to direct the significant activities of Oncor Holdings and Oncor. See Note 5 of the Notes to Consolidated Financial Statements in the Annual Report for additional information related to the restrictions on our ability to direct the significant activities of Oncor Holdings and Oncor.

In the three months ended March 31, 2025 and 2024, Sempra contributed $486 million and $193 million, respectively, to Oncor Holdings, and Oncor Holdings distributed $142 million and $100 million, respectively, to Sempra. On May 2, 2025, Sempra contributed $486 million to Oncor Holdings, and on May 1, 2025, Oncor Holdings distributed $142 million to Sempra.

We provide summarized income statement information for Oncor Holdings in the following table.


SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS
(Dollars in millions)
	Three months ended March 31,
		2025		2024
Operating revenues		$	1,548	$	1,458
Operating expenses		(1,157)		(1,051)
Income from operations		391		407
Interest expense		(185)		(150)
Income tax expense		(40)		(49)
Net income		179		223
NCI held by Texas Transmission Investment LLC		(36)		(44)
Earnings attributable to Sempra(1)		143		179

(1) Excludes adjustments to equity earnings related to amortization of a tax sharing liability associated with a tax sharing agreement and changes in basis differences in AOCI within the carrying value of our equity method investment.

CAMERON LNG JV

In the three months ended March 31, 2025 and 2024, Cameron LNG JV distributed $149 million and $132 million, respectively, to Sempra Infrastructure.

TAG NORTE

In the three months ended March 31, 2025 and 2024, TAG Norte distributed $45 million and $62 million, respectively, to Sempra Infrastructure.