Sempra

“We are a holding company whose principal businesses are regulated utilities in California and Texas.”

“Sempra Infrastructure’s assets include investments in the U.S. and Mexico with a focus on LNG, energy networks and low carbon solutions.”

“Sempra’s business activities are organized under the following reportable segments: ▪Sempra California ▪Sempra Texas Utilities ▪Sempra Infrastructure”

“We have since expanded our regulated public utility presence into Texas through our 80.25% interest in Oncor and 50% interest in Sharyland Utilities.”

“SDG&E’s CCA and DA customers receive primarily transportation and distribution services from SDG&E.”

“SDG&E is a regulated public utility that provides electric services to a population of, at December 31, 2025, approximately 3.6 million and natural gas services to approximately 3.3 million of that population, covering an approximate 4,100 square mile service territory in Southern California”

“The PA LNG Phase 2 project will include two liquefaction trains, one LNG storage tank, and associated facilities with a nameplate capacity of approximately 13 Mtpa.”

“SoCalGas is a regulated public utility that owns and operates a natural gas distribution, transmission and storage system that delivers natural gas to a population of, at December 31, 2025, approximately 21.3 million”

“in December 2025, we entered into an agreement to sell Ecogas to Gas Natural del Noroeste S.A. de C.V. for 9.0 billion Mexican pesos (approximately $500 million U.S. dollar-equivalent at December 31, 2025)”

“these systems consisted of 1,985 miles of natural gas transmission pipelines, 17 natural gas compression stations and 139 miles of ethane pipelines in Mexico”

“consisted of 2,018 miles of transmission lines, 24,210 miles of distribution lines and 158 substations at December 31, 2025”

“with counterparties including Marathon Petroleum Corporation, Valero Energy Corporation and PEMEX”

“SI Partners is constructing Louisiana Storage, a 12.5-Bcf salt dome natural gas storage facility to support the PA LNG Phase 1 project”

“SI Partners has an LNG SPA through 2029 with Tangguh PSC for the supply of the equivalent of 500 MMcf of natural gas per day at a price based on the SoCal Border index for natural gas”

“In addition to the U.S., these competitors are located in the Middle East, Southeast Asia, Africa, South America, Australia and Europe.”

“SDG&E faces competition to serve its customer load from distributed and local power generation growth, including DER.”

“At December 31, 2025, 2024 and 2023, the residential and commercial rooftop solar capacity in SDG&E’s territory totaled 2,452 MW, 2,318 MW and 2,154 MW, respectively.”

“the planned sale of 45% of our equity interest, which we expect to occur in the second or third quarter of 2026”

“No FID has been reached for either of these potential projects.”

“Sempra aims to have net-zero scope 1 and 2 GHG emissions by 2050 and has an interim aim of 50% scope 1 and 2 GHG emissions reductions by 2035”

“require each California electric utility, including SDG&E, to procure at least 50% of its annual retail electricity delivered from renewable energy or zero-carbon sources by the end of 2026, 60% by the end of 2030”

“the PUCT issued a final order in a comprehensive base rate review that set Oncor’s authorized regulatory capital structure ratio at 57.5% debt to 42.5% equity, its authorized ROE at 9.70%”

“SDG&E and SoCalGas are permitted to recover in rates 90% of hazardous waste cleanup costs and related third-party litigation costs, and 70% of related insurance-litigation expenses”

“SI Partners, which primarily constitutes our Sempra Infrastructure reportable segment, will be accounted for as an equity method investment subject to closing the planned sale of 45% of our equity interest, which we expect to occur in the second or third quarter of 2026”

“including 4,996,591 shares under existing forward sale agreements that remain subject to future settlement as of February 26, 2026”

“the Baja California region does not have extensive sources of natural gas, and at times, natural gas supply to the region is severely constrained and may impact our costs and our ability to source all feed gas required under our ECA LNG Phase 1 supply contracts”

“such as S&P’s January 2025 actions that revised Sempra’s outlook to negative from stable and downgraded SoCalGas’ issuer credit rating, and Moody’s March 2025 action that revised Sempra’s outlook to negative from stable”

“The long-term nature of these agreements and the small number of customers exposes us to risks, including increased credit risks and amplified impacts of disputes or other similar issues”