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 Consolidated Statements of Operations. Distributions received from equity method investees are classified in the 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.

Our equity method investments include various domestic and foreign entities. Our domestic equity method investees are typically partnerships that are pass-through entities for income tax purposes and therefore they do not record income tax. Sempra’s income tax on earnings from these equity method investees, other than Oncor Holdings as we discuss below, is included in Income Tax Expense on the Consolidated Statements of Operations. Our foreign equity method investees are generally corporations whose operations are taxable on a standalone basis in the countries in which they operate, and we recognize our equity in such income or loss net of investee income tax. See Note 8 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 the carrying values of our investments on the Sempra Consolidated Balance Sheets and earnings on these investments by segment on the Sempra Consolidated Statements of Operations in the following tables.


EQUITY METHOD AND OTHER INVESTMENTS(1)
(Dollars in millions)
	Percent ownership				Investment balance
	December 31,
	2025		2024		2025		2024
Sempra Texas Utilities:
Oncor Holdings(2)	100	%	100	%	$	17,472	$	15,400

Sempra Texas Utilities:
Sharyland Holdings(3)	50	%	50	%	$	129	$	122
Sempra Infrastructure:
Cameron LNG JV(4),(5)	50.2		50.2		17		1,149
IMG(6)	40		40		—		723
TAG Norte(7)	50		50		—		539
Segment totals					146		2,533
Parent and other – Other					1		1
Total					$	147	$	2,534

(2) The carrying value of our equity method investment is $2,769 and $2,884 higher than the underlying equity in the net assets of the investee at December 31, 2025 and 2024, respectively, due to $2,868 of equity method goodwill and $69 in basis differences in AOCI, offset by $44 and $53 at December 31, 2025 and 2024, respectively, due to a tax sharing liability to TTI under a tax sharing agreement and $124 of deferred income taxes at December 31, 2025.

(4) At December 31, 2025, $1,242 is included in Assets Held for Sale, the carrying value of which is $251 and $257 higher than the underlying equity in the net assets of the investee at December 31, 2025 and 2024, respectively, primarily due to guarantees, interest capitalized on the investment prior to the JV commencing its operations, and amortization of guarantee fees and capitalized interest thereafter.

(5) Includes $17 and $18 at December 31, 2025 and 2024, respectively, which represents Sempra’s investment balance related to the guarantee under the SDSRA, which we discuss in Note 16, that will remain with Sempra following completion of the planned sale of a portion of our equity interest in SI Partners.


EARNINGS FROM EQUITY METHOD INVESTMENTS(1)
(Dollars in millions)
	Years ended December 31,
	2025		2024		2023
EARNINGS RECORDED BEFORE INCOME TAX(2):
Sempra Texas Utilities:
Sharyland Holdings	$	7	$	8	$	7
Sempra Infrastructure:
Cameron LNG JV(3)	613		576		586
Segment totals	620		584		593
Parent and other – RBS Sempra Commodities LLP	—		19		40
	620		603		633
EARNINGS RECORDED NET OF INCOME TAX:
Sempra Texas Utilities:
Oncor Holdings	862		780		694
Sempra Infrastructure:
IMG	43		136		40
TAG Norte	79		90		114
Segment totals	984		1,006		848
Total	$	1,604	$	1,609	$	1,481


EXPENDITURES FOR INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2025		2024		2023
Sempra Texas Utilities:
Oncor Holdings	$	2,009	$	972	$	363
Sharyland Holdings	4		4		4
	2,013		976		367
Sempra Infrastructure:
Cameron LNG JV	2		12		15
Total	$	2,015	$	988	$	382


DISTRIBUTIONS FROM INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2025		2024		2023
Sempra Texas Utilities:
Oncor Holdings(1)	$	634	$	616	$	441
Sharyland Holdings	4		4		4
	638		620		445
Sempra Infrastructure:
Cameron LNG JV	482		453		456
IMG	—		33		11
TAG Norte	45		62		36
	527		548		503
Segment totals	1,165		1,168		948
Parent and other – RBS Sempra Commodities LLP	—		9		—
Total	$	1,165	$	1,177	$	948

(1) Includes a $13 noncash return on investment in 2024. When including payments received under a tax sharing agreement, cash and noncash distributions would total $666, $681 and $558 in 2025, 2024 and 2023, respectively.

At December 31, 2025 and 2024, our share of the undistributed earnings from equity method investments was $3.4 billion and $2.9 billion, respectively, including $710 million at December 31, 2025 in undistributed earnings from investments for which we have less than a 50% equity interest.

We account for our 100% equity ownership interest in Oncor Holdings, which owns an 80.25% interest in Oncor, as an equity method investment. Sempra does not control Oncor Holdings or Oncor, and the ring-fencing measures, governance mechanisms and commitments in effect limit our ability to direct the management, policies and operations of Oncor Holdings and Oncor, including the deployment or disposition of their assets, declarations of dividends or other distributions, strategic planning and other important corporate matters and actions. We also have limited representation on the Oncor Holdings and Oncor boards of directors.

Oncor is a domestic partnership for U.S. federal income tax purposes and is not included in the consolidated income tax return of Sempra. Rather, only our pretax equity earnings from our investment in Oncor Holdings (a disregarded entity for tax purposes) are included in our consolidated income tax return. A tax sharing agreement with TTI, Oncor Holdings and Oncor provides for the calculation of an income tax liability substantially as if Oncor Holdings and Oncor were taxed as corporations and requires tax payments determined on that basis. While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and Oncor being subject to the provisions of U.S. GAAP governing rate-regulated operations, Oncor recognizes amounts determined under cost-based regulatory rate-setting processes (with such costs including income taxes), as if it were taxed as a corporation. As a result, since Oncor Holdings consolidates Oncor, we recognize equity earnings from our investment in Oncor Holdings net of its recorded income tax.


SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS
(Dollars in millions)
	Years ended December 31,
	2025		2024		2023
Operating revenues	$	6,778	$	6,082	$	5,586
Operating expenses	(4,791)		(4,318)		(4,026)
Income from operations	1,987		1,764		1,560
Interest expense	(788)		(653)		(536)
Income tax expense	(236)		(217)		(192)
Net income	1,062		957		849
NCI held by TTI	(211)		(192)		(170)
Earnings attributable to Sempra(1)	851		765		679

			December 31,
			2025		2024
Current assets			$	2,016	$	1,638
Noncurrent assets			45,659		38,697
Current liabilities			2,284		2,183
Noncurrent liabilities			26,397		21,958
NCI held by TTI			4,300		3,689

(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.

In connection with the planned sale of a portion of our equity interest in SI Partners, which we discuss in Note 6, the carrying amount of our equity method investments totaling $2.6 billion at December 31, 2025 is included in Assets Held for Sale on Sempra’s Consolidated Balance Sheet.

Cameron LNG JV is a JV among Sempra and three project partners, TotalEnergies SE, Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha. SI Partners accounts for its 50.2% investment in Cameron LNG JV under the equity method.

SI Partners has a 40% interest in IMG, a JV with a subsidiary of TC Energy Corporation, and accounts for its interest as an equity method investment. IMG owns and operates the Sur de Texas-Tuxpan natural gas marine pipeline, which is fully contracted under a 35-year natural gas transportation service contract with the CFE.

SI Partners has a 50% beneficial ownership interest in TAG Norte, a JV with TETL JV Mexico Norte, S. de R.L. de C.V. and Bravo N Mergeco, S. de R.L. de C.V. that owns a 50% interest in the Los Ramones Norte pipeline. SI Partners accounts for its 50% interest in TAG Norte as an equity method investment.

RBS Sempra Commodities LLP is a United Kingdom limited liability partnership formed by Sempra and The Royal Bank of Scotland plc (RBS) in 2008 to own and operate the commodities-marketing businesses previously operated through wholly owned subsidiaries of Sempra. We and RBS sold substantially all of the partnership’s businesses and assets in four separate transactions completed in 2010 and 2011. Since 2011, our investment balance has reflected our share of the remaining partnership assets, including amounts retained by the partnership to help offset unanticipated future general and administrative costs necessary to complete the dissolution of the partnership and the distribution of the partnership’s remaining assets, if any. We accounted for our investment in RBS Sempra Commodities LLP under the equity method.

In 2018, we fully impaired our remaining equity method investment in RBS Sempra Commodities LLP. In 2023, we reduced our previously recorded estimate of losses by $40 million based on a settlement that fully resolved legal matters. In 2024, we substantially completed the dissolution of the partnership, at which time we recorded $19 million ($16 million after tax) in Equity Earnings on Sempra’s Consolidated Statement of Operations.

The summarized financial information below represents the aggregate results of operations and aggregate financial position of 100% of each of Sempra’s equity method investments for the periods in which we were invested in the entities.


SUMMARIZED FINANCIAL INFORMATION – EQUITY METHOD INVESTMENTS(1)
(Dollars in millions)
	Years ended December 31,
	2025		2024		2023
Gross revenues	$	3,059	$	2,962	$	3,083
Operating expenses	(869)		(820)		(776)
Income from operations	2,190		2,142		2,307
Interest expense	(487)		(547)		(570)
Net income/Earnings(2)(3)	1,504		1,688		1,499

			December 31,
			2025		2024
Current assets			1,104		$	1,134
Noncurrent assets			14,793		14,687
Current liabilities			1,171		1,130
Noncurrent liabilities			9,705		10,051

(3) Amounts for Cameron LNG JV exclude adjustments to equity earnings related to amortization of capitalized interest and guarantee fees within the carrying value of our equity method investment and changes in basis differences in equity earnings related to AOCI in 2023.