Sempra Energy (SRE) benefits from systematic investments that will enhance the reliability of its operations, which will allow it to meet the rising demand from an expanding customer base. The company is also expanding its LNG operation and will be among the leading LNG exporters in the United States. However, this Zacks Rank #3 (Hold) company faces risks like project development disruptions, power outages and property damages, which act as a headwind. Tailwinds Sempra has a capital investment plan of $40.4 ...

Group 1 - Southern California Gas Company (SoCalGas) has declared quarterly dividends of $0.375 per share for its preferred stock and Series A preferred stock, payable on July 15, 2024, to shareholders of record on June 10, 2024 [1] - SoCalGas is the largest gas distribution utility in the United States, serving approximately 21 million consumers across 24,000 square miles in Central and Southern California [2] - The company aims to support California's clean energy transition by delivering affordable and reliable gas service while integrating renewable resources [2][3] Group 2 - SoCalGas has set a goal to achieve net-zero greenhouse gas emissions by 2045 and to replace 20% of its traditional natural gas supply with renewable natural gas (RNG) by 2030 [3] - The company is investing in its gas delivery infrastructure while striving to keep customer bills affordable [3] - SoCalGas is a subsidiary of Sempra, an energy infrastructure company based in San Diego [3]

Core Insights - Southern California Gas Company (SoCalGas) has received the "Organizational Leadership Award" from The Climate Registry for its ASPIRE 2045 sustainability strategy and leadership in reducing greenhouse gas emissions [2][4] - The award recognizes SoCalGas's commitment to sustainability and its initiatives in methane emissions reduction, energy efficiency, renewable natural gas, clean fleet management, and carbon management projects [4][5] - SoCalGas aims to achieve net-zero greenhouse gas emissions by 2045 and replace 20% of its traditional natural gas supply with renewable natural gas by 2030 [9] Sustainability Strategy - SoCalGas's ASPIRE 2045 strategy includes surpassing California's goal of a 20% reduction in fugitive and vented methane emissions from a 2015 baseline by 2025, ahead of schedule, and nearing a 40% reduction by 2030 [4][5] - The utility has converted 38% of its over-the-road fleet vehicles to alternative fuel vehicles, with a target of 50% by 2025 and a 100% zero emissions vehicle fleet by 2035 [4][5] - In 2023, SoCalGas delivered approximately 5% renewable natural gas to its core customers, with a goal of increasing this to 20% by 2030 [4][5] Recognition and Awards - SoCalGas has also received the "Business Transformation Award" from Reuters Events for its transformative sustainability priorities [5] - The company's clean hydrogen microgrid demonstration project, the [H2] Innovation Experience, has been recognized as a World-Changing Idea by Fast Company and awarded the Sustainable Innovation Award by the U.S. Green Building Council of L.A. [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) | | | | | | Former name, former address | | --- | --- | --- | --- | --- | --- | | | | | | I.R.S. | and former | | | | | | Employer | fiscal year, if | | Commission | | Exact Name of Registrant as Specified in its Charter, | State of | Identification | changed since | | File No. | | Address of Principal Executive Office and Telephone Number | Incorporation | No. | last report | | 1-14201 | SEMPRA | | California | 33- ...

Sempra (NYSE:SRE) Q1 2024 Earnings Conference Call May 7, 2024 12:00 PM ET Company Participants Glen Donovan - Vice President, Investor Relations Jeff Martin - Chairman & Chief Executive Officer Karen Sedgwick - Executive Vice President & Chief Financial Officer Allen Nye - Chief Executive Officer, Oncor Justin Bird - Executive Vice President & Chief Executive Officer, Sempra Infrastructure Conference Call Participants Shar Pourreza - Guggenheim Partners Jeremy Tonet - JPMorgan Securities Durgesh Chopra - E ...

Statements 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 established by California Assembly Bill 1054, rates from customers or a combination thereof; decisions, investigations, inquiries, regulations, denials or ...

[Sempra First-Quarter 2024 Financial Performance](index=1&type=section&id=Sempra%20First-Quarter%202024%20Financial%20Performance) Sempra reported a year-over-year decline in both GAAP and adjusted earnings for Q1 2024, primarily due to foreign currency impacts, inflation in Mexico, and net unrealized derivative losses [First-Quarter 2024 Results](index=1&type=section&id=First-Quarter%202024%20Results) Sempra's Q1 2024 GAAP earnings decreased to $801 million from $969 million, with adjusted earnings also falling to $854 million from $922 million, impacted by foreign currency and derivative losses Q1 2024 vs. Q1 2023 Earnings Comparison (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP Earnings** | $801 | $969 | | **GAAP EPS (Diluted)** | $1.26 | $1.53 | | **Adjusted Earnings** | $854 | $922 | | **Adjusted EPS (Diluted)** | $1.34 | $1.46 | Reconciliation of Q1 2024 GAAP to Adjusted Earnings (in millions) | Description | Amount | | :--- | :--- | | **GAAP Earnings** | **$801** | | Impact from foreign currency and inflation in Mexico | $41 | | Net unrealized losses on derivatives | $12 | | **Adjusted Earnings** | **$854** | - Management highlights strong economic growth in core markets and an infrastructure-centered strategy to modernize the energy grid, positioning the company to meet customer needs driven by renewables, EVs, and digital infrastructure[3](index=3&type=chunk) [Earnings Guidance](index=3&type=section&id=Earnings%20Guidance) Sempra updated its full-year 2024 GAAP EPS guidance while affirming its adjusted EPS guidance for 2024, 2025, and its long-term EPS growth rate projection Full-Year EPS Guidance | Guidance Metric | 2024 Range | 2025 Range | | :--- | :--- | :--- | | **GAAP EPS (Updated)** | $4.52 - $4.82 | N/A | | **Adjusted EPS (Affirmed)** | $4.60 - $4.90 | N/A | | **EPS (Affirmed)** | N/A | $4.90 - $5.25 | - The company affirmed its projected long-term EPS growth rate of **6% to 8%**[16](index=16&type=chunk) [Business Segment Operations and Highlights](index=2&type=section&id=Business%20Segment%20Operations%20and%20Highlights) Sempra's segments are advancing clean energy, expanding infrastructure, and progressing major LNG projects, reflecting strategic capital investments and market growth [Sempra California](index=2&type=section&id=Sempra%20California) Sempra California is pursuing hydrogen blending and EV charging infrastructure, with a proposed decision on its general rate cases expected in Q2 2024, impacting current revenue recording - Filed an application with the CPUC to develop projects demonstrating hydrogen blending in the natural gas system to support state decarbonization goals[6](index=6&type=chunk) - San Diego Gas & Electric Co. installed charging infrastructure for medium- to heavy-duty electric freight trucks at the U.S.-Mexico border[7](index=7&type=chunk) - A proposed decision on general rate cases is anticipated in Q2 2024, with a final decision expected by year-end, and Q1 2024 revenues were recorded based on 2023 authorized levels[9](index=9&type=chunk) [Sempra Texas](index=2&type=section&id=Sempra%20Texas) Sempra Texas, through Oncor, is experiencing significant economic expansion driven by digital infrastructure, filing a nearly $3 billion system resiliency plan, and seeing a 20% increase in interconnection requests - Oncor filed a system resiliency plan for nearly **$3 billion** in strategic capital investments over three years, focusing on grid modernization, cyber threat prevention, and wildfire mitigation[11](index=11&type=chunk) - Active generation and large commercial/industrial transmission point-of-interconnection (POI) requests in queue increased by **20% YoY** to **781** at the end of Q1 2024[12](index=12&type=chunk) [Sempra Infrastructure](index=3&type=section&id=Sempra%20Infrastructure) Sempra Infrastructure is progressing major LNG projects, with Energía Costa Azul LNG Phase 1 over 80% complete, and has reached a final investment decision on the Cimarrón wind project - Construction of Energía Costa Azul LNG Phase 1 is over **80% complete** and is on track for commercial operations in summer 2025, with Port Arthur LNG Phase 1 construction also remaining on schedule[14](index=14&type=chunk) - A positive final investment decision was made for the Cimarrón wind project, with an estimated total capital expenditure of **$550 million**, and the project is expected to generate energy in late 2025[15](index=15&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) Sempra's Q1 2024 financial statements show a significant revenue decrease, asset growth driven by property, plant, and equipment, and increased cash from financing activities [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Sempra's Q1 2024 total revenues significantly decreased to **$3.64 billion** from **$6.56 billion**, leading to a net income decline to **$881 million** from **$1.17 billion** year-over-year Q1 2024 Income Statement Highlights (in millions) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $3,640 | $6,560 | | Income before income taxes | $705 | $1,329 | | Net Income | $881 | $1,172 | | Earnings Attributable to Common Shares | $801 | $969 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, Sempra's total assets increased to **$89.6 billion** from **$87.2 billion**, driven by property, plant, and equipment, while total liabilities also rose due to long-term debt Balance Sheet Summary (in millions) | Account | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $5,640 | $5,470 | | Property, plant and equipment, net | $56,318 | $54,960 | | **Total Assets** | **$89,604** | **$87,181** | | Total Current Liabilities | $9,064 | $10,090 | | Long-term debt and finance leases | $29,519 | $27,759 | | **Total Liabilities** | **$54,943** | **$53,527** | | **Total Equity** | **$34,661** | **$33,654** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, net cash from operating activities was **$1.85 billion**, with net cash used in investing activities increasing to **$2.11 billion**, and net cash from financing activities at **$700 million** Q1 2024 Cash Flow Summary (in millions) | Cash Flow Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,851 | $1,980 | | Net Cash used in Investing Activities | ($2,107) | ($1,895) | | Net Cash from Financing Activities | $700 | $151 | | **Increase in Cash** | **$445** | **$241** | [Segment Performance](index=12&type=section&id=Segment%20Performance) In Q1 2024, Sempra California remained the largest earnings contributor at **$582 million**, Sempra Texas Utilities saw a significant increase to **$183 million**, and capital expenditures were highest in Sempra California Q1 Earnings Attributable to Common Shares by Segment (in millions) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Sempra California | $582 | $618 | | Sempra Texas Utilities | $183 | $83 | | Sempra Infrastructure | $131 | $315 | | Parent and other | ($95) | ($47) | | **Total** | **$801** | **$969** | Q1 Capital Expenditures and Investments by Segment (in millions) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Sempra California | $1,143 | $1,082 | | Sempra Texas Utilities | $193 | $85 | | Sempra Infrastructure | $790 | $744 | | **Total** | **$2,126** | **$1,915** | [Operating Statistics](index=13&type=section&id=Operating%20Statistics) In Q1 2024, Sempra California experienced decreased gas and electric deliveries, while Oncor in Texas saw increased electric deliveries, with both segments growing their customer bases - Sempra California's total gas deliveries decreased to **264 Bcf** in Q1 2024 from 294 Bcf in Q1 2023[46](index=46&type=chunk) - Oncor's total electric deliveries increased to **37,313 million kWhs** in Q1 2024 from 34,779 million kWhs in Q1 2023[46](index=46&type=chunk) - Customer meter counts grew across key segments, with Sempra California's total gas and electric meters and Oncor's electric meters all increasing year-over-year[46](index=46&type=chunk)

[Part I. Financial Information](index=11&type=section&id=Part%20I) [Business Overview](index=11&type=section&id=Item%201.%20Business) Sempra operates as a North American energy infrastructure holding company, realigning its segments in Q4 2023 to Sempra California, Sempra Texas Utilities, and Sempra Infrastructure, focusing on stable cash flows from transmission and distribution investments - Sempra's mission is to be North America's premier energy infrastructure company, focusing on transmission and distribution investments to produce stable cash flows and earnings[28](index=28&type=chunk) - In Q4 2023, Sempra realigned its reportable segments, combining the former SDG&E and SoCalGas segments into a new **Sempra California** segment, alongside Sempra Texas Utilities and Sempra Infrastructure[29](index=29&type=chunk)[31](index=31&type=chunk) [Sempra California](index=12&type=section&id=Sempra%20California) The Sempra California segment includes regulated utilities SDG&E and SoCalGas, serving millions of customers in Southern and Central California, facing challenges from Community Choice Aggregation and distributed energy resources SDG&E Electric Customer and Volume Data (as of Dec 31, 2023) | Customer Class | Meter Count | Volumes (millions of kWh) | | :--- | :--- | :--- | | Residential | 383,150 | 2,004 | | Commercial | 41,458 | 1,868 | | Industrial | 359 | 670 | | Street/Highway Lighting | 1,785 | 77 | | **Subtotal** | **426,752** | **4,619** | | CCA and DA | 1,090,386 | 12,228 | | **Total** | **1,517,138** | **16,847** | SoCalGas Natural Gas Customer and Volume Data (as of Dec 31, 2023) | Customer Class | Meter Count | Volumes (Bcf) | | :--- | :--- | :--- | | Residential | 5,890,601 | | | Commercial | 248,498 | | | Industrial | 24,119 | | | Electric Gen/Wholesale | 40 | | | **Natural Gas Sales** | | **321** | | **Transportation** | | **549** | | **Total** | **6,163,258** | **870** | - The Aliso Canyon natural gas storage facility, with a capacity of **86 Bcf**, represents **63%** of SoCalGas's working gas storage capacity, with CPUC authorizing its use up to **68.6 Bcf** as of December 31, 2023, for regional reliability[53](index=53&type=chunk) [Sempra Texas Utilities](index=18&type=section&id=Sempra%20Texas%20Utilities) Sempra Texas Utilities comprises equity method investments in Oncor Holdings and Sharyland Holdings, with Oncor being Texas's largest transmission and distribution utility, though Sempra does not control it due to ring-fencing measures - Oncor operates the largest transmission and distribution system in Texas, delivering electricity to nearly **4.0 million** homes and businesses across a territory with an estimated population of **13 million**[72](index=72&type=chunk) - Sempra **does not control** Oncor Holdings or Oncor due to ring-fencing measures that limit its ability to direct management, policies, and operations, leading to equity method accounting for its interest[66](index=66&type=chunk) [Sempra Infrastructure](index=20&type=section&id=Sempra%20Infrastructure) Sempra Infrastructure develops and operates North American energy infrastructure, focusing on LNG, Energy Networks, and Low Carbon Solutions, including key LNG projects and extensive natural gas and renewable assets in Mexico and the U.S. Gulf Coast - Sempra holds a **70%** interest in SI Partners, with KKR Pinnacle and ADIA holding **20%** and **10%** respectively, serving as the primary vehicle for Sempra's non-U.S. utility energy infrastructure assets[78](index=78&type=chunk) Major LNG Projects | Project | Status | Sempra's Interest (via SI Partners) | Key Details | | :--- | :--- | :--- | :--- | | Cameron LNG Phase 1 | Operational | 50.2% of JV | 13.9 Mtpa nameplate capacity in Louisiana | | ECA LNG Phase 1 | Construction | 83.4% of project | 3.25 Mtpa nameplate capacity in Baja California, Mexico; commercial operations expected summer 2025 | | PA LNG Phase 1 | Construction | 28% of project | ~13 Mtpa nameplate capacity in Port Arthur, Texas; commercial operations expected 2027-2028 | - The Energy Networks business includes **1,850 miles** of natural gas transmission pipelines and the Ecogas natural gas distribution utility in Mexico, while Low Carbon Solutions includes **1,044 MW** of operating wind and solar facilities[96](index=96&type=chunk)[99](index=99&type=chunk)[105](index=105&type=chunk) [Regulation and Ratemaking](index=25&type=section&id=Regulation%20and%20Ratemaking) Sempra's utilities are heavily regulated by bodies like the CPUC in California and PUCT in Texas, with ratemaking primarily determined through General Rate Cases and Cost of Capital proceedings - SDG&E and SoCalGas are principally regulated by the CPUC, which sets customer rates, conditions of service, and authorized rates of return[114](index=114&type=chunk)[120](index=120&type=chunk) - Oncor and Sharyland Utilities are regulated by the PUCT, which has jurisdiction over wholesale transmission and retail rates[121](index=121&type=chunk) - The Cost of Capital Mechanism (CCM) adjusts the authorized Return on Equity (ROE) for California utilities based on interest rate changes, with a 2023 trigger resulting in an approved **70 bps** ROE increase for SDG&E and SoCalGas, effective **January 1, 2024**[148](index=148&type=chunk)[315](index=315&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) Sempra faces diverse risks, including operational, financial, legal, and regulatory challenges, notably California wildfire liability, energy transition impacts, project development risks, and political uncertainty in Mexico - **California Wildfires:** Sempra, SDG&E, and SoCalGas face significant risks from wildfires, including potential liability under the doctrine of inverse condemnation, with the Wildfire Fund offering some protection but susceptible to exhaustion by major events[224](index=224&type=chunk)[225](index=225&type=chunk) - **Energy Transition:** Political and public debate, particularly in California, aims to reduce or eliminate reliance on natural gas, potentially leading to stranded assets and reduced demand for SoCalGas and SDG&E's natural gas infrastructure[231](index=231&type=chunk)[234](index=234&type=chunk) - **Project & International Risk:** Sempra Infrastructure faces risks in developing and constructing large-scale projects like LNG export facilities, and its international operations, particularly in Mexico, are exposed to increased legal, regulatory, tax, and geopolitical risks, including governmental influence over the energy sector[267](index=267&type=chunk)[284](index=284&type=chunk)[287](index=287&type=chunk) - **Holding Company Structure:** As a holding company, Sempra's ability to pay dividends and meet obligations depends on distributions from its subsidiaries, which can be restricted by regulations or contractual obligations[174](index=174&type=chunk) [Cybersecurity](index=56&type=section&id=Item%201C.%20Cybersecurity) Sempra maintains a cybersecurity risk management program overseen by its Board's SST Committee, with no identified material past or present threats impacting financial condition or operations - The Board's Safety, Sustainability and Technology (SST) Committee, composed of independent directors, provides oversight of cybersecurity risks, receiving regular briefings from the chief information security officer[298](index=298&type=chunk) - The company has not identified any known cybersecurity threats or prior incidents that have materially affected or are reasonably likely to materially affect its financial results or operations[297](index=297&type=chunk) [Part II. Other Information](index=58&type=section&id=Part%20II) [Management's Discussion and Analysis (MD&A)](index=59&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Sempra's 2023 earnings significantly increased to $3,030 million, driven by Sempra Infrastructure's derivative gains and Sempra California's improved results, despite a slight decrease in Sempra Texas Utilities' earnings, with $8.8 billion invested in capital expenditures Sempra Earnings by Segment (in millions) | Segment | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Sempra California | $1,747 | $1,514 | $392 | | Sempra Texas Utilities | $694 | $736 | $616 | | Sempra Infrastructure | $877 | $310 | $682 | | Parent and other | ($288) | ($466) | ($436) | | **Earnings attributable to common shares** | **$3,030** | **$2,094** | **$1,254** | - Sempra California's earnings increased by **$233 million** (**15%**) in 2023, primarily due to a **$199 million** charge in 2022 related to the Aliso Canyon gas leak litigation that did not recur in 2023[323](index=323&type=chunk)[325](index=325&type=chunk) - Sempra Infrastructure's earnings surged by **$567 million**, mainly due to a **$1.1 billion** positive swing in asset and supply optimization, driven by unrealized gains on commodity derivatives in 2023 compared to unrealized losses in 2022[327](index=327&type=chunk) - Sempra Texas Utilities' earnings decreased by **$42 million** (**6%**) due to higher interest, depreciation, and O&M expenses at Oncor, partially offset by higher revenues from rate updates and customer growth[323](index=323&type=chunk) [Capital Resources and Liquidity](index=78&type=section&id=Capital%20Resources%20and%20Liquidity) Sempra maintains strong liquidity, funding operations and capital plans through cash, credit facilities, and issuances, with $8.4 billion in 2023 capital expenditures and a planned $40.4 billion from 2024-2028, supported by a recent common stock offering Capital Expenditures by Segment (in millions) | Segment | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Sempra California | $4,560 | $4,466 | $4,204 | | Sempra Infrastructure | $3,832 | $884 | $802 | | Parent and other | $5 | $7 | $9 | | **Total** | **$8,397** | **$5,357** | **$5,015** | - Sempra plans to invest approximately **$40.4 billion** in capital expenditures from 2024 through 2028, with **$24.1 billion** allocated to Sempra California, **$3.4 billion** to Sempra Texas Utilities, and **$12.9 billion** to Sempra Infrastructure[503](index=503&type=chunk) - In November 2023, Sempra completed a common stock offering and entered into forward sale agreements, expecting to receive approximately **$1.2 billion** in net proceeds upon full physical settlement by the **end of 2024**[400](index=400&type=chunk)[1134](index=1134&type=chunk) [Critical Accounting Estimates](index=95&type=section&id=Critical%20Accounting%20Estimates) Management identifies critical accounting estimates including contingencies, regulatory assets and liabilities, income taxes, pension and postretirement benefits, and impairment testing, all requiring significant judgment and impacting financial reporting - Contingencies: Loss accruals are made when a loss is probable and reasonably estimable, which is critical for matters like litigation and environmental cleanup[525](index=525&type=chunk) - Regulatory Accounting: Management must judge the probability of recovering costs through future rates, determining the carrying value of regulatory assets, where adverse regulatory actions could lead to write-offs[527](index=527&type=chunk)[528](index=528&type=chunk) - Pension & PBOP: Estimates for pension and postretirement benefit obligations are sensitive to assumptions about discount rates and expected returns on plan assets; a **100 bps** change in the discount rate could change the projected benefit obligation by approximately **$235 million to $298 million** for Sempra's pension plans[535](index=535&type=chunk)[538](index=538&type=chunk)[539](index=539&type=chunk) [Market Risk Disclosures](index=99&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Sempra is exposed to market risks from commodity prices, interest rates, and foreign currency/inflation, which are managed through derivatives and other strategies, particularly impacting its debt portfolio and Mexican operations - A hypothetical **10%** change in commodity prices would change the fair value of commodity-based derivatives by **$14 million** as of December 31, 2023[559](index=559&type=chunk) - A hypothetical **10%** change in interest rates on variable-rate debt would change annual earnings by approximately **$5 million** for long-term debt and **$9 million** for short-term debt[561](index=561&type=chunk) - A hypothetical **10%** appreciation of the U.S. dollar against the Mexican peso would result in a transactional gain of **$126 million**, primarily from the remeasurement of monetary assets and liabilities for tax purposes[564](index=564&type=chunk) [Controls and Procedures](index=102&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management of Sempra, SDG&E, and SoCalGas concluded their disclosure controls and internal control over financial reporting were effective as of December 31, 2023, a conclusion affirmed by Deloitte & Touche LLP's unqualified opinion - Management of Sempra, SDG&E, and SoCalGas concluded that their respective disclosure controls and procedures were effective as of December 31, 2023[571](index=571&type=chunk) - Based on the COSO framework, management concluded that internal control over financial reporting was effective for each registrant as of December 31, 2023, a conclusion audited and confirmed by Deloitte & Touche LLP[573](index=573&type=chunk) [Financial Statements and Notes](index=129&type=section&id=Financial%20Statements%20and%20Notes) [Commitments and Contingencies](index=252&type=section&id=Note%2016.%20Commitments%20and%20Contingencies) This note details significant legal proceedings, lease agreements, contractual commitments, and environmental issues, including ongoing Aliso Canyon litigation, ECA LNG land disputes, and substantial natural gas and construction project commitments - SoCalGas paid **$1.79 billion** in 2022 to settle claims from approximately **36,000** plaintiffs related to the 2015 Aliso Canyon gas leak, though claims from **~100** non-settling plaintiffs and **~413** new plaintiffs remain pending[1189](index=1189&type=chunk) - The CPUC approved an increase in the Aliso Canyon storage facility's capacity to **68.6 Bcf** in August 2023, but a proceeding to potentially minimize or eliminate its use is ongoing, with the facility having a net book value of **$1.0 billion**[1193](index=1193&type=chunk)[1194](index=1194&type=chunk) - Sempra Infrastructure faces ongoing legal challenges to land titles and environmental permits for its ECA LNG project in Mexico, which could adversely affect the project[1198](index=1198&type=chunk)[1201](index=1201&type=chunk)[1202](index=1202&type=chunk) Future Minimum Payments for Natural Gas Contracts (as of Dec 31, 2023) | (in millions) | Sempra Total | SoCalGas Total | | :--- | :--- | :--- | | 2024 | $283 | $151 | | 2025 | $246 | $136 | | 2026 | $196 | $97 | | 2027 | $177 | $81 | | 2028 | $152 | $70 | | Thereafter | $1,421 | $176 | | **Total** | **$2,475** | **$711** |

Sempra (NYSE:SRE) Q4 2023 Results Conference Call February 27, 2024 12:00 PM ET Company Participants Glen Donovan - Vice President, Investor Relations Jeff Martin - Chairman and CEO Trevor Mihalik - EVP and Group President, Sempra California Allen Nye - CEO of Oncor Justin Bird - EVP and CEO of Sempra Infrastructure Karen Sedgwick - EVP and CFO Peter Wall - SVP, Controller and CAO Conference Call Participants Constantine Lednev - Guggenheim Partners Nick Campanella - Barclays David Arcaro - Morgan Stanley C ...

Exhibit 99.1 NEWS RELEASE Sempra Reports 2023 Financial and Business Results SAN DIEGO, Feb. 27, 2024 — Sempra (NYSE: SRE) (BMV: SRE) today reported full-year 2023 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $3.03 billion or $4.79 per diluted share, compared to full-year 2022 GAAP earnings of $2.09 billion or $3.31 per diluted share. On an adjusted basis, full-year earnings were $2.92 billion or $4.61 per diluted share in both 2023 and 2022. "Strong business per ...