UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549 

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended		March 31, 2024
		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 No.	Exact Name of Registrant as Specified in its Charter, Address of Principal Executive Office and Telephone Number		State of Incorporation	I.R.S. Employer Identification No.	Former name, former address and former fiscal year, if changed since last report
1-14201	SEMPRA		California	33-0732627	No change
	488 8th Avenue
	San Diego, California 92101
	(619) 696-2000
1-03779	SAN DIEGO GAS & ELECTRIC COMPANY		California	95-1184800	No change
	8330 Century Park Court
	San Diego, California 92123
	(619) 696-2000
1-01402	SOUTHERN CALIFORNIA GAS COMPANY		California	95-1240705	No change
	555 West 5th Street
	Los Angeles, California 90013
	(213) 244-1200

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
SEMPRA:
Common Stock, without par value	SRE	New York Stock Exchange(1)
5.75% Junior Subordinated Notes Due 2079, $25 par value	SREA	New York Stock Exchange
SAN DIEGO GAS & ELECTRIC COMPANY:
None
SOUTHERN CALIFORNIA GAS COMPANY:
None

(1)     Sempra’s common shares are also registered with the National Securities Registry of the CNBV in Mexico. The registration of Sempra’s common shares with the National Securities Registry does not imply certification regarding the investment quality of the securities, the solvency of the issuer or the accuracy or completeness of the information included in the quarterly report, nor does it confirm acts that may have been performed in contravention of the law. This quarterly report has been filed in Mexico in accordance with the general provisions applicable to issuers and other securities market participants.

Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
	Yes	☒	No	☐

Indicate by check mark whether the Registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrants were required to submit such files).
	Yes	☒	No	☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Sempra:
☒ Large Accelerated Filer	☐ Accelerated Filer	☐ Non-accelerated Filer	☐ Smaller Reporting Company	☐ Emerging Growth Company
San Diego Gas & Electric Company:
☐ Large Accelerated Filer	☐ Accelerated Filer	☒ Non-accelerated Filer	☐ Smaller Reporting Company	☐ Emerging Growth Company
Southern California Gas Company:
☐ Large Accelerated Filer	☐ Accelerated Filer	☒ Non-accelerated Filer	☐ Smaller Reporting Company	☐ Emerging Growth Company

If an emerging growth company, indicate by check mark if the Registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the Registrants are a shell company (as defined in Rule 12b-2 of the Exchange Act).
	Yes	☐	No	☒
Indicate the number of shares outstanding of each of the issuers’ classes of common stock, as of the latest practicable date.
Common stock outstanding as of April 30, 2024:

Sempra	632,845,743 shares
San Diego Gas & Electric Company	Wholly owned by Enova Corporation, which is wholly owned by Sempra
Southern California Gas Company	Wholly owned by Pacific Enterprises, which is wholly owned by Sempra

2

Table of Contents

TABLE OF CONTENTS
		Page
Glossary		4
Information Regarding Forward-Looking Statements		7
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	9
	Notes to Condensed Consolidated Financial Statements
	Note 1. General Information and Other Financial Data	28
	Note 2. New Accounting Standards	40
	Note 3. Revenues	41
	Note 4. Regulatory Matters	44
	Note 5. Sempra – Investments in Unconsolidated Entities	46
	Note 6. Debt and Credit Facilities	48
	Note 7. Derivative Financial Instruments	51
	Note 8. Fair Value Measurements	56
	Note 9. Sempra – Equity and Earnings Per Common Share	63
	Note 10. San Onofre Nuclear Generating Station	66
	Note 11. Commitments and Contingencies	68
	Note 12. Sempra – Segment Information	74
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	76
	Overview	76
	Results of Operations by Registrants	76
	Capital Resources and Liquidity	88
	Critical Accounting Estimates	100
	New Accounting Standards	100
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	100
Item 4.	Controls and Procedures	102
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	102
Item 1A.	Risk Factors	102
Item 5.	Other Information	103
Item 6.	Exhibits	104
Signatures		107

This combined Form 10-Q is separately filed by Sempra, San Diego Gas & Electric Company and Southern California Gas Company. Information contained herein relating to any one of these individual Registrants is filed by such entity on its own behalf. Each such Registrant makes statements herein only as to itself and its consolidated entities and makes no statement whatsoever as to any other entity.

You should read this report in its entirety as it pertains to each respective Registrant. No one section of the report deals with all aspects of the subject matter. A separate Part I – Item 1 is provided for each Registrant, except for the Notes to Condensed Consolidated Financial Statements, which are combined for all the Registrants. All Items other than Part I – Item 1 are combined for the three Registrants.

None of the website references in this report are active hyperlinks, and the information contained on or that can be accessed through any such website is not and shall not be deemed to be part of or incorporated by reference in this report or any other document that we file with or furnish to the SEC.

3

Table of Contents

The following terms and abbreviations appearing in this report have the meanings indicated below.

GLOSSARY
AB	California Assembly Bill
ADIA	Black Silverback ZC 2022 LP (assignee of Black River B 2017 Inc.), a wholly owned affiliate of Abu Dhabi Investment Authority
AFUDC	allowance for funds used during construction
amparo	an extraordinary constitutional appeal governed by Articles 103 and 107 of the Mexican Constitution and filed in Mexican federal court
Annual Report	Annual Report on Form 10-K for the year ended December 31, 2023
AOCI	accumulated other comprehensive income (loss)
ASEA	Agencia de Seguridad, Energía y Ambiente (Mexico’s National Agency for Industrial Safety and Environmental Protection)
ASU	Accounting Standards Update
Bcf	billion cubic feet
bps	basis points
Cameron LNG JV	Cameron LNG Holdings, LLC
Cameron LNG Phase 1 facility	Cameron LNG JV liquefaction facility
Cameron LNG Phase 2 project	Cameron LNG JV liquefaction expansion project
CCA	Community Choice Aggregation
CCM	cost of capital adjustment mechanism
CFE	Comisión Federal de Electricidad (Mexico’s Federal Electricity Commission)
CFIN	Cameron LNG FINCO, LLC, a wholly owned and unconsolidated affiliate of Cameron LNG JV
CNBV	Comisión Nacional Bancaria y de Valores (Mexico’s National Banking and Securities Commission)
CODM	chief operating decision maker as defined in Accounting Standards Codification 280
ConocoPhillips	ConocoPhillips Company
CPUC	California Public Utilities Commission
CRE	Comisión Reguladora de Energía (Mexico’s Energy Regulatory Commission)
CRR	congestion revenue right
DOE	U.S. Department of Energy
ECA LNG	ECA LNG Phase 1 and ECA LNG Phase 2, collectively
ECA LNG Phase 1	ECA LNG Holdings B.V.
ECA LNG Phase 2	ECA LNG II Holdings B.V.
ECA Regas Facility	Energía Costa Azul, S. de R.L. de C.V. LNG regasification facility
Ecogas	Ecogas México, S. de R.L. de C.V.
Edison	Southern California Edison Company, a subsidiary of Edison International
EFH	Energy Future Holdings Corp. (renamed Sempra Texas Holdings Corp.)
EPC	engineering, procurement and construction
EPS	earnings per common share
ETR	effective income tax rate
Exchange Act	Securities Exchange Act of 1934, as amended
FERC	Federal Energy Regulatory Commission
Fitch	Fitch Ratings, Inc.
FTA	Free Trade Agreement
GCIM	Gas Cost Incentive Mechanism
GHG	greenhouse gas
GRC	General Rate Case
HOA	Heads of Agreement
IEnova	Infraestructura Energética Nova, S.A.P.I. de C.V.
IMG	Infraestructura Marina del Golfo
INEOS	INEOS Energy Trading Limited, a subsidiary of INEOS Limited
IOU	investor-owned utility
IRA	Inflation Reduction Act of 2022
IRS	U.S. Internal Revenue Service

4

Table of Contents

GLOSSARY (CONTINUED)
ISO	Independent System Operator
ITC	investment tax credit
JV	joint venture
KKR Denali	KKR Denali Holdco LLC, an affiliate of Kohlberg Kravis Roberts & Co. L.P.
KKR Pinnacle	KKR Pinnacle Investor L.P. (as successor-in-interest to KKR Pinnacle Aggregator L.P.), an affiliate of Kohlberg Kravis Roberts & Co. L.P.
Leak	the leak at the SoCalGas Aliso Canyon natural gas storage facility injection-and-withdrawal well, SS25, discovered by SoCalGas on October 23, 2015
LNG	liquefied natural gas
MD&A	Management’s Discussion and Analysis of Financial Condition and Results of Operations
MMBtu	million British thermal units (of natural gas)
Moody’s	Moody’s Investors Service, Inc.
MOU	Memorandum of Understanding
Mtpa	million tonnes per annum
MW	megawatt
MWh	megawatt hour
NCI	noncontrolling interest(s)
NDT	nuclear decommissioning trusts
NEIL	Nuclear Electric Insurance Limited
O&M	operation and maintenance expense
OCI	other comprehensive income (loss)
OII	Order Instituting Investigation
Oncor	Oncor Electric Delivery Company LLC
Oncor Holdings	Oncor Electric Delivery Holdings Company LLC
ORLEN	Polski Koncern Naftowy Orlen S.A.
Other Sempra	All Sempra consolidated entities, except for SDG&E and SoCalGas
PA LNG Phase 1 project	initial phase of the Port Arthur LNG liquefaction project
PA LNG Phase 2 project	second phase of the Port Arthur LNG liquefaction project
PBOP	postretirement benefits other than pension
Port Arthur LNG	Port Arthur LNG, LLC, an indirect subsidiary of SI Partners that owns the PA LNG Phase 1 project
PP&E	property, plant and equipment
PPA	power purchase agreement
PUCT	Public Utility Commission of Texas
RBS Sempra Commodities	RBS Sempra Commodities LLP
Registrants	has the meaning set forth in Rule 12b-2 under the Exchange Act and consists of Sempra, SDG&E and SoCalGas for purposes of this report
ROE	return on equity
RSU	restricted stock unit
S&P	S&P Global Ratings, a division of S&P Global Inc.
SB	California Senate Bill
SDG&E	San Diego Gas & Electric Company
SDSRA	Senior Debt Service Reserve Account
SEC	U.S. Securities and Exchange Commission
SEDATU	Secretaría de Desarrollo Agrario, Territorial y Urbano (Mexico’s agency in charge of agriculture, land and urban development)
SENER	Secretaría de Energía de México (Mexico’s Ministry of Energy)
series A preferred stock	Sempra’s 6% mandatory convertible preferred stock, series A
series B preferred stock	Sempra’s 6.75% mandatory convertible preferred stock, series B
series C preferred stock	Sempra’s 4.875% fixed-rate reset cumulative redeemable perpetual preferred stock, series C
SI Partners	Sempra Infrastructure Partners, LP, the holding company for most of Sempra’s subsidiaries not subject to California or Texas utility regulation
SoCalGas	Southern California Gas Company
SOFR	Secured Overnight Financing Rate

5

Table of Contents

GLOSSARY (CONTINUED)
SONGS	San Onofre Nuclear Generating Station
SPA	sale and purchase agreement
Support Agreement	support agreement, dated July 28, 2020 and amended on June 29, 2021, among Sempra and Sumitomo Mitsui Banking Corporation
TAG Norte	TAG Norte Holding, S. de R.L. de C.V.
TAG Pipelines	TAG Pipelines Norte, S. de R.L. de C.V.
TCEQ	Texas Commission on Environmental Quality
TdM	Termoeléctrica de Mexicali
TO5	Electric Transmission Owner Formula Rate, effective June 1, 2019
U.S. GAAP	generally accepted accounting principles in the United States of America
VIE	variable interest entity
Wildfire Fund	the fund established pursuant to AB 1054
Wildfire Legislation	AB 1054 and AB 111

In this report, references to “Sempra” are to Sempra and its consolidated entities, collectively, and references to “we,” “our,” “us” and “our company” are to the applicable Registrant and its consolidated entities, collectively, in each case unless otherwise stated or indicated by the context. All references in this report to our reportable segments are not intended to refer to any legal entity with the same or similar name.

Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively:

▪the Condensed Consolidated Financial Statements and related Notes of Sempra;

▪the Condensed Financial Statements and related Notes of SDG&E; and

▪the Condensed Financial Statements and related Notes of SoCalGas.

6

Table of Contents

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the filing date of this report. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

Forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “initiative,” “target,” “outlook,” “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include:

▪California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the Wildfire Fund, rates from customers or a combination thereof

▪decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) CPUC, CRE, DOE, FERC, PUCT, IRS and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business

▪the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, (iv) obtaining third-party consents and approvals and (v) third parties honoring their contracts and commitments

▪macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on rate base or other growth

▪litigation, arbitrations, property disputes and other proceedings, and changes to laws and regulations, including those related to tax and trade policy and the energy industry in Mexico

▪cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure

▪the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation

▪the impact on affordability of SDG&E’s and SoCalGas’ customer rates and their cost of capital and on SDG&E’s, SoCalGas’ and Sempra Infrastructure’s ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices, (ii) with respect to SDG&E’s and SoCalGas’ businesses, the cost of meeting the demand for lower carbon and reliable energy in California, and (iii) with respect to Sempra Infrastructure’s business, volatility in foreign currency exchange rates

▪the impact of climate and sustainability policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies

▪weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance

▪the availability of electric power, natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, pipeline system or limitations on the withdrawal of natural gas from storage facilities

▪Oncor’s ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director

▪other uncertainties, some of which are difficult to predict and beyond our control

7

Table of Contents

We caution you not to rely unduly on any forward-looking statements. You should review and carefully consider the risks, uncertainties and other factors that affect our businesses as described herein, in our Annual Report and in other reports we file with the SEC.

8

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended March 31,
	2024		2023
	(unaudited)
REVENUES
Utilities:
Natural gas	$	2,109	$	4,412
Electric	1,056		1,027
Energy-related businesses	475		1,121
Total revenues	3,640		6,560
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas	(554)		(2,683)
Cost of electric fuel and purchased power	(89)		(114)
Energy-related businesses cost of sales	(109)		(193)
Operation and maintenance	(1,212)		(1,209)
Depreciation and amortization	(594)		(539)
Franchise fees and other taxes	(184)		(192)
Other income, net	99		41
Interest income	13		24
Interest expense	(305)		(366)
Income before income taxes and equity earnings	705		1,329
Income tax expense	(172)		(376)
Equity earnings	348		219
Net income	881		1,172
Earnings attributable to noncontrolling interests	(69)		(192)
Preferred dividends	(11)		(11)
Earnings attributable to common shares	$	801	$	969
Basic EPS:
Earnings	$	1.27	$	1.54
Weighted-average common shares outstanding	632,821		629,838
Diluted EPS:
Earnings	$	1.26	$	1.53
Weighted-average common shares outstanding	635,354		632,248

See Notes to Condensed Consolidated Financial Statements.

9

Table of Contents

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Sempra shareholders’ equity
	Pretax amount		Income tax (expense) benefit		Net-of-tax amount		Noncontrolling interests (after tax)		Total
	(unaudited)
	Three months ended March 31, 2024 and 2023
2024:
Net income	$	984	$	(172)	$	812	$	69	$	881
Other comprehensive income (loss):
Foreign currency translation adjustments	3		—		3		1		4
Financial instruments	43		(4)		39		114		153
Pension and other postretirement benefits	5		(1)		4		—		4
Total other comprehensive income	51		(5)		46		115		161
Comprehensive income	$	1,035	$	(177)	$	858	$	184	$	1,042
2023:
Net income	$	1,356	$	(376)	$	980	$	192	$	1,172
Other comprehensive income (loss):
Foreign currency translation adjustments	10		—		10		4		14
Financial instruments	(61)		16		(45)		(50)		(95)
Pension and other postretirement benefits	(12)		—		(12)		—		(12)
Total other comprehensive loss	(63)		16		(47)		(46)		(93)
Comprehensive income	$	1,293	$	(360)	$	933	$	146	$	1,079

See Notes to Condensed Consolidated Financial Statements.

10

Table of Contents

SEMPRA
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	March 31,		December 31,
	2024		2023(1)
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	606	$	236
Restricted cash	121		49
Accounts receivable – trade, net	2,075		2,151
Accounts receivable – other, net	552		561
Due from unconsolidated affiliates	46		31
Income taxes receivable	79		94
Inventories	458		482
Prepaid expenses	286		273
Regulatory assets	52		226
Fixed-price contracts and other derivatives	124		122
Greenhouse gas allowances	1,176		1,189
Other current assets	65		56
Total current assets	5,640		5,470
Other assets:
Restricted cash	107		104
Regulatory assets	3,982		3,771
Greenhouse gas allowances	532		301
Nuclear decommissioning trusts	886		872
Dedicated assets in support of certain benefit plans	559		549
Deferred income taxes	134		129
Right-of-use assets – operating leases	715		723
Investment in Oncor Holdings	14,545		14,266
Other investments	2,235		2,244
Goodwill	1,602		1,602
Other intangible assets	311		318
Wildfire fund	262		269
Other long-term assets	1,776		1,603
Total other assets	27,646		26,751
Property, plant and equipment:
Property, plant and equipment	74,226		72,495
Less accumulated depreciation and amortization	(17,908)		(17,535)
Property, plant and equipment, net	56,318		54,960
Total assets	$	89,604	$	87,181

(1)    Derived from audited financial statements.

See Notes to Condensed Consolidated Financial Statements.

11

Table of Contents

SEMPRA
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	March 31,		December 31,
	2024		2023(1)
	(unaudited)
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	$	1,659	$	2,342
Accounts payable – trade	1,955		2,211
Accounts payable – other	234		224
Due to unconsolidated affiliates	—		5
Dividends and interest payable	737		691
Accrued compensation and benefits	376		526
Regulatory liabilities	952		553
Current portion of long-term debt and finance leases	593		975
Greenhouse gas obligations	1,176		1,189
Other current liabilities	1,382		1,374
Total current liabilities	9,064		10,090
Long-term debt and finance leases	29,519		27,759
Deferred credits and other liabilities:
Due to unconsolidated affiliates	298		307
Regulatory liabilities	3,887		3,739
Greenhouse gas obligations	146		—
Pension and other postretirement benefit plan obligations, net of plan assets	431		407
Deferred income taxes	5,588		5,254
Asset retirement obligations	3,663		3,642
Deferred credits and other	2,347		2,329
Total deferred credits and other liabilities	16,360		15,678
Commitments and contingencies (Note 11)
Equity:
Preferred stock (50,000,000 shares authorized):
Preferred stock, series C (900,000 shares outstanding)	889		889
Common stock (1,125,000,000 shares authorized; 632,606,408 and 631,431,732 shares outstanding at March 31, 2024 and December 31, 2023, respectively; no par value)	12,209		12,204
Retained earnings	16,141		15,732
Accumulated other comprehensive income (loss)	(104)		(150)
Total Sempra shareholders’ equity	29,135		28,675
Preferred stock of subsidiary	20		20
Other noncontrolling interests	5,506		4,959
Total equity	34,661		33,654
Total liabilities and equity	$	89,604	$	87,181

(1)    Derived from audited financial statements.

See Notes to Condensed Consolidated Financial Statements.

12

Table of Contents

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Three months ended March 31,
	2024		2023
	(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	881	$	1,172
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	594		539
Deferred income taxes and investment tax credits	137		253
Equity earnings	(348)		(219)
Share-based compensation expense	21		17
Fixed-price contracts and other derivatives	16		(374)
Bad debt expense	42		114
Other	7		27
Net change in working capital components	319		451
Distributions from investments	232		199
Changes in other noncurrent assets and liabilities, net	(50)		(199)
Net cash provided by operating activities	1,851		1,980
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(1,933)		(1,830)
Expenditures for investments	(193)		(85)
Purchases of nuclear decommissioning and other trust assets	(197)		(181)
Proceeds from sales of nuclear decommissioning and other trust assets	217		199
Other	(1)		2
Net cash used in investing activities	(2,107)		(1,895)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid	(362)		(360)
Issuances of common stock	10		—
Repurchases of common stock	(40)		(31)
Issuances of debt (maturities greater than 90 days)	2,044		1,986
Payments on debt (maturities greater than 90 days) and finance leases	(846)		(1,803)
(Decrease) increase in short-term debt, net	(498)		168
Advances from unconsolidated affiliates	45		14
Proceeds from sale of noncontrolling interests	—		265
Distributions to noncontrolling interests	(111)		(43)
Contributions from noncontrolling interests	474		97
Settlement of cross-currency swaps	—		(99)
Other	(16)		(43)
Net cash provided by financing activities	700		151
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1		5
Increase in cash, cash equivalents and restricted cash	445		241
Cash, cash equivalents and restricted cash, January 1	389		462
Cash, cash equivalents and restricted cash, March 31	$	834	$	703

See Notes to Condensed Consolidated Financial Statements.

13

Table of Contents

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Dollars in millions)
	Three months ended March 31,
	2024		2023
	(unaudited)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	$	274	$	305
Income tax payments, net of refunds	25		50
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Repayments of advances from unconsolidated affiliate in lieu of distributions	$	62	$	—
Accrued capital expenditures	915		1,171
Increase in finance lease obligations for investment in PP&E	7		17
Preferred dividends declared but not paid	11		11
Common dividends issued in stock	14		—
Common dividends declared but not paid	392		374

See Notes to Condensed Consolidated Financial Statements.

14

Table of Contents

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Dollars in millions)
	Preferred stock		Common stock		Retained earnings		Accumulated other comprehensive income (loss)		Sempra shareholders' equity		Non- controlling interests		Total equity
	(unaudited)
	Three months ended March 31, 2024
Balance at December 31, 2023	$	889	$	12,204	$	15,732	$	(150)	$	28,675	$	4,979	$	33,654
Net income					812				812		69		881
Other comprehensive income							46		46		115		161
Share-based compensation expense			21						21				21
Dividends declared:
Series C preferred stock ($12.19/share)					(11)				(11)				(11)
Common stock ($0.62/share)					(392)				(392)				(392)
Issuances of common stock			24						24				24
Repurchases of common stock			(40)						(40)				(40)
Noncontrolling interest activities:
Contributions											474		474
Distributions											(111)		(111)
Balance at March 31, 2024	$	889	$	12,209	$	16,141	$	(104)	$	29,135	$	5,526	$	34,661
	Three months ended March 31, 2023
Balance at December 31, 2022	$	889	$	12,160	$	14,201