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** |

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $4.61 for 2023, exceeding the high-end of guidance, and narrowed the full year 2024 EPS guidance range to $4.60 to $4.90 [15][64] - Full year 2023 GAAP earnings were $3.030 billion or $4.79 per share, compared to $2.94 billion or $3.31 per share in 2022 [64][96] - The company announced a record capital plan of $48 billion, a 20% increase over the previous plan, with over 90% allocated to regulated utilities [20][66] Business Line Data and Key Metrics Changes - Sempra California's earnings for 2023 were $1.75 billion, benefiting from $4.6 billion of capital investments, increasing the rate base by 11% over 2022 [21][44] - Sempra Infrastructure reported adjusted earnings of $764 million for 2023, with significant progress on LNG projects [55][64] - Oncor's capital deployment was $3.8 billion in 2023, growing the rate base by 12% [77][85] Market Data and Key Metrics Changes - California's economy represents nearly 15% of the national GDP, with significant job growth and a strong alignment with state policies promoting sustainable energy [23][74] - Texas GDP continues to grow at approximately 8%, with Oncor serving some of the fastest-growing metro areas [49][81] - The company expects a 7% CAGR in rate base growth from 2023 to 2028 in California and 11% in Texas [126] Company Strategy and Development Direction - The company is focused on disciplined investments in energy networks in California and Texas, aiming for long-term EPS growth of 6% to 8% [20][106] - The capital plan emphasizes modernizing T&D infrastructure to support economic growth and energy transition [18][75] - The company is advancing a dual coast LNG export strategy and developing renewable energy projects to meet rising energy demand [54][90] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong financial performance despite economic uncertainties, including inflation and supply chain disruptions [16][68] - The company remains optimistic about the regulatory environment in California and Texas, which supports significant investments [112][126] - Management expressed confidence in navigating the regulatory landscape for LNG projects and expects normal permitting conditions to resume [61][118] Other Important Information - The company declared a dividend increase for the 14th consecutive year to $2.48 per share [34] - The company is actively engaged in developing a hydrogen hub project expected to receive $1.2 billion in DOE funding [57] Q&A Session Questions and Answers Question: How is the GRC process framed into the 2024, 2025 planning assumptions? - The company focuses on investments aligned with public policy and customer support, considering historical cases in their assumptions [108][138] Question: What are the assumptions on the cost of capital process at the CPUC? - The company believes California's regulatory environment is constructive, with reasonable returns on equity to attract necessary capital [111][112] Question: How will the company fund increased CapEx? - The company is in a strong position to support its capital program without the need for additional equity, relying on operating cash flows and net debt [115][141]

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 ...

Front Matter [Filing Information](index=1&type=section&id=Filing%20Information) This section details the Form 10-Q filing for the quarterly period ended September 30, 2023, by Sempra, SDG&E, and SoCalGas, confirming their compliance and common stock outstanding - Sempra, SDG&E, and SoCalGas have filed all required reports during the preceding 12 months and have been subject to filing requirements for the past 90 days[5](index=5&type=chunk)[6](index=6&type=chunk) - Sempra is classified as a **Large Accelerated Filer**, while SDG&E and SoCalGas are **Non-accelerated Filers**[8](index=8&type=chunk) | Registrant | Common Stock Outstanding (October 31, 2023) | | :----------- | :------------------------------------------ | | Sempra | **629,328,058 shares** | | SDG&E | Wholly owned by Enova Corporation | | SoCalGas | Wholly owned by Pacific Enterprises | [Glossary](index=5&type=section&id=Glossary) The glossary defines key terms and abbreviations used throughout the report, ensuring clarity and consistency in understanding financial and operational context - The glossary defines various acronyms and terms, including regulatory bodies (CPUC, FERC, PUCT), financial metrics (AFUDC, EPS, ROE), and project-specific names (Cameron LNG JV, ECA LNG, Port Arthur LNG)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [Information Regarding Forward-Looking Statements](index=8&type=section&id=Information%20Regarding%20Forward-Looking%20Statements) This section cautions that the report contains forward-looking statements based on future assumptions, involving risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees; future results may differ materially[23](index=23&type=chunk) - Key risk factors include California wildfires, regulatory decisions, success of business development efforts, macroeconomic trends, litigation, cybersecurity threats, capital resource availability, and climate/sustainability policies - The company assumes no obligation to update or revise any forward-looking statement[23](index=23&type=chunk)[25](index=25&type=chunk) PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Sempra, SDG&E, and SoCalGas for the three and nine months ended September 30, 2023 and 2022, including statements of operations, comprehensive income, balance sheets, cash flows, and changes in equity [Sempra Condensed Consolidated Statements of Operations](index=10&type=section&id=Sempra%20Condensed%20Consolidated%20Statements%20of%20Operations) | Metric (Dollars in millions, except per share) | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total revenues | $3,334 | $3,617 | $13,229 | $10,984 | | Net income | $854 | $561 | $2,762 | $1,877 | | Earnings attributable to common shares | $721 | $485 | $2,293 | $1,656 | | Basic EPS | $1.14 | $0.77 | $3.64 | $2.63 | | Diluted EPS | $1.14 | $0.77 | $3.63 | $2.62 | [Sempra Condensed Consolidated Statements of Comprehensive Income (Loss)](index=11&type=section&id=Sempra%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) | Metric (Dollars in millions) | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | $854 | $561 | $2,762 | $1,877 | | Total other comprehensive income | $309 | $67 | $333 | $245 | | Comprehensive income | $1,163 | $628 | $3,095 | $2,122 | [Sempra Condensed Consolidated Balance Sheets](index=12&type=section&id=Sempra%20Condensed%20Consolidated%20Balance%20Sheets) | Metric (Dollars in millions) | September 30, 2023 | December 31, 2022 | | :--------------------------- | :----------------- | :---------------- | | Total current assets | $5,310 | $5,912 | | Total other assets | $27,253 | $24,880 | | Property, plant and equipment, net | $53,172 | $47,782 | | Total assets | $85,735 | $78,574 | | Total current liabilities | $8,765 | $9,899 | | Long-term debt and finance leases | $27,703 | $24,548 | | Total deferred credits and other liabilities | $16,009 | $14,871 | | Total Sempra shareholders' equity | $28,238 | $27,115 | | Total equity | $33,258 | $29,256 | | Total liabilities and equity | $85,735 | $78,574 | [Sempra Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Sempra%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric (Dollars in millions) | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $5,129 | $1,455 | | Net cash used in investing activities | $(6,304) | $(3,183) | | Net cash provided by financing activities | $2,198 | $1,936 | | Increase in cash, cash equivalents and restricted cash | $1,029 | $205 | | Cash, cash equivalents and restricted cash, September 30 | $1,491 | $786 | [Sempra Condensed Consolidated Statements of Changes in Equity](index=16&type=section&id=Sempra%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) | Metric (Dollars in millions) | Balance at Dec 31, 2022 | Net income | Other comprehensive income | Dividends declared | Repurchases of common stock | Noncontrolling interest activities | Balance at Sep 30, 2023 | | :--------------------------- | :---------------------- | :--------- | :------------------------- | :----------------- | :-------------------------- | :------------------------------- | :---------------------- | | Total Sempra shareholders' equity | $27,115 | $2,327 | $121 | $(1,157) | $(32) | $(145) | $28,238 | | Total equity | $29,256 | $2,762 | $333 | $(1,157) | $(32) | $1,091 | $33,258 | [San Diego Gas & Electric Company Condensed Statements of Operations](index=18&type=section&id=San%20Diego%20Gas%20%26%20Electric%20Company%20Condensed%20Statements%20of%20Operations) | Metric (Dollars in millions) | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total operating revenues | $1,442 | $1,569 | $4,357 | $4,413 | | Operating income | $353 | $405 | $992 | $1,084 | | Net income | $274 | $271 | $716 | $681 | [San Diego Gas & Electric Company Condensed Statements of Comprehensive Income (Loss)](index=19&type=section&id=San%20Diego%20Gas%20%26%20Electric%20Company%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) | Metric (Dollars in millions) | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | $274 | $271 | $716 | $681 | | Comprehensive income | $274 | $272 | $716 | $682 | [San Diego Gas & Electric Company Condensed Balance Sheets](index=20&type=section&id=San%20Diego%2

Financial Data and Key Metrics Changes - The company reported third quarter 2023 GAAP earnings of $721 million or $1.14 per share, compared to $485 million or $0.77 per share in the same quarter of 2022 [39] - Adjusted earnings for the third quarter 2023 were $685 million or $1.08 per share, up from $622 million or $0.98 per share in the third quarter of 2022 [39] - Year-to-date 2023 adjusted earnings per share reached $3.48, with expectations to be at or above the high end of the 2023 adjusted EPS guidance range [24][39] Business Line Data and Key Metrics Changes - At Sempra Texas, there was a $49 million increase in equity earnings driven by weather-related consumption, new base rates, and customer growth [40] - Sempra Infrastructure saw a $21 million decrease in net interest expense due to higher capitalization of interest on projects under construction [40] - Oncor connected around 20,000 additional premises and managed a 34% increase in active transmission interconnection requests compared to last year [14][26] Market Data and Key Metrics Changes - Foreign direct investment in North America rose sharply by approximately 40% over the prior year, with Mexico surpassing China as America's largest trading partner [11] - The load demand in the Permian Basin is projected to increase from 4.2 gigawatts to roughly 17.2 gigawatts over the next decade [16] Company Strategy and Development Direction - The company aims to build North America's premier energy infrastructure, focusing on attractive markets with strong economic growth and constructive regulation [1] - The five-year capital plan is expected to increase by 10% to 20%, primarily driven by regulated utility investments, especially in Texas [55][133] - The company is pursuing innovative technologies, including utility-owned energy storage, to enhance reliability and support the energy transition [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in Texas, highlighting the state's pro-business climate and diversified job creation [57][59] - The company anticipates significant growth in multiple areas of Oncor's service territory, supported by new legislation aimed at improving grid resiliency [59][66] - Management reaffirmed the long-term EPS growth rate of 6% to 8%, emphasizing the company's ability to deliver competitive returns [55][147] Other Important Information - The company is considering resegmentation of its California operations to simplify its business model, which may enhance operational efficiency [72][127] - The company has received regulatory approvals for key projects, including Port Arthur LNG Phase 2, which is expected to double the total capacity of the facility [68][70] Q&A Session Summary Question: What are the sources of funding for the increased CapEx? - Management indicated that they would consider all financing options, including common equity, to support the anticipated 10% to 20% increase in the capital plan [46][47] Question: What factors could dictate the range of CapEx increase? - Management noted that the final decisions regarding the capital plan would be made in consultation with the Oncor Board, with expectations of significant increases based on current growth trends [48][49] Question: How does the company view its LNG strategy? - Management expressed confidence in the LNG strategy, highlighting progress in development projects and the potential for significant commercial opportunities [52][54] Question: What is the goal of the resegmentation in California? - The resegmentation aims to simplify the business structure and improve operational efficiency, while still providing detailed financial information for individual segments [127][137] Question: How does the company plan to manage regulatory lag? - Management emphasized the importance of legislative changes that reduce regulatory lag, which will support earnings growth as the rate base expands [120][143]