SAN DIEGO GAS & ELECTRIC CO
For the period ended Dec 31, 2025. Filed Feb 26, 2026.
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FY2025 · Filed Feb 26, 2026
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Reports of Independent Registered Public Accounting Firm
To the shareholders and Board of Directors of Sempra:
We have audited the accompanying consolidated balance sheets of Sempra and subsidiaries (“Sempra”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), changes in contingently redeemable noncontrolling interest and equity, and cash flows for each of the three years in the period ended December 31, 2025, the related notes, and the schedule listed in Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of Sempra as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), Sempra’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 26, 2026, expressed an unqualified opinion on Sempra’s internal control over financial reporting.
These financial statements are the responsibility of Sempra’s management. Our responsibility is to express an opinion on Sempra’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Sempra in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Sempra is subject to rate regulation by regulators and commissions in various jurisdictions (collectively, the “Commissions”) that have jurisdiction with respect to the rates of electric and gas transmission and distribution companies in those jurisdictions. Management has determined it meets the requirements under U.S. GAAP to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures.
We identified the impact of rate regulation as a critical audit matter due to the high degree of subjectivity involved in assessing the impact of regulatory orders and future actions by the Commissions on the financial statements. Management’s judgments include assessing the likelihood of (1) the recovery in future rates of incurred costs and (2) potential refunds to customers. Auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
Our audit procedures related to the application of specialized rules to account for the effects of cost-based rate regulation and the uncertainty of future decisions by the Commissions included the following, among others:
We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) the recovery in future rates of costs deferred as regulatory assets, and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities. We tested the effectiveness of management’s controls over the initial recognition of amounts as regulatory assets or liabilities and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
We read relevant regulatory orders issued by the Commissions for Sempra and other publicly available information to assess the likelihood of recovery in future rates, or of a future reduction in rates, based on precedents of the Commissions’ treatment of similar costs under similar circumstances.
We evaluated Sempra’s disclosures related to the impacts of rate regulation.
Accounting for the PA2 JVCo Equity Subscription and CRNCI Classification— Refer to Note 12 of the Notes to Financial Statements
As more fully described in Note 12 to the financial statements, in September 2025, a subsidiary of Sempra that owns Port Arthur LNG II (“PA2 JVCo”) issued 49.9% of its equity interests to an affiliate of Blackstone for $3.4 billion in cash at closing and a commitment to fund an additional $3.6 billion of capital contributions on a pre-determined funding schedule. Management recorded the closing effects of the equity subscription, including cash proceeds received, transaction costs, and related equity impacts, including increases to contingently redeemable noncontrolling interest (“CRNCI”) presented outside of permanent equity.
We identified management’s evaluation of the appropriate classification and presentation of Blackstone’s interest, specifically, whether it should be presented outside of permanent equity as CRNCI (as opposed to within permanent equity or as a liability). Management applied significant judgment in assessing the relevant terms and conditions of the equity subscription and related arrangements, including the nature of the contingent redemption provisions and the likelihood of such contingent redemption provisions being met. Auditing these matters involved challenging auditor judgment and the use of specialized accounting knowledge to evaluate equity classification under the applicable accounting guidance.
Our audit procedures related to the accounting for the PA2 JVCo equity subscription included the following, among others:
We tested the effectiveness of management’s controls over the evaluation and classification of Blackstone’s interest as CRNCI, including the assessment of contingent redemption provisions and their likelihood.
We obtained and read the executed transaction agreements and related governing documents (including the equity subscription and related arrangements) to evaluate key terms impacting contingent redemption provisions relevant to CRNCI classification.
We involved professionals with specialized accounting knowledge to assist in evaluating management’s application of the relevant accounting guidance for classification and presentation outside of permanent equity, including evaluating whether any terms (including those with redemption features) would require Blackstone’s interest to be classified as a liability.
We evaluated the financial statement disclosures for completeness and consistency with the underlying agreements and recorded amounts.
We have served as Sempra’s auditor since 1935.
To the shareholder and Board of Directors of San Diego Gas & Electric Company:
We have audited the accompanying balance sheets of San Diego Gas & Electric Company (“SDG&E”) as of December 31, 2025 and 2024, the related statements of operations, comprehensive income (loss), changes in shareholder’s equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of SDG&E as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), SDG&E’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 26, 2026, expressed an unqualified opinion on SDG&E’s internal control over financial reporting.
These financial statements are the responsibility of SDG&E’s management. Our responsibility is to express an opinion on SDG&E’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to SDG&E in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
SDG&E is subject to rate regulation by regulators and commissions in various jurisdictions (collectively, the “Commissions”) that have jurisdiction with respect to the rates of electric and gas transmission and distribution companies in those jurisdictions. Management has determined it meets the requirements under U.S. GAAP to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures.
We identified the impact of rate regulation as a critical audit matter due to the high degree of subjectivity involved in assessing the impact of regulatory orders and future actions by the Commissions on the financial statements. Management’s judgments include assessing the likelihood of (1) the recovery in future rates of incurred costs and (2) potential refunds to customers. Auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
Our audit procedures related to the application of specialized rules to account for the effects of cost-based rate regulation and the uncertainty of future decisions by the Commissions included the following, among others:
We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) the recovery in future rates of costs deferred as regulatory assets, and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities. We tested the effectiveness of management’s controls over the initial recognition of amounts as regulatory assets or liabilities and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
We read relevant regulatory orders issued by the Commissions for SDG&E and other publicly available information to assess the likelihood of recovery in future rates, or of a future reduction in rates, based on precedents of the Commissions’ treatment of similar costs under similar circumstances.
We evaluated SDG&E’s disclosures related to the impacts of rate regulation.
We have served as SDG&E’s auditor since 1935.
To the shareholders and Board of Directors of Southern California Gas Company:
We have audited the accompanying balance sheets of Southern California Gas Company (“SoCalGas”) as of December 31, 2025 and 2024, the related statements of operations, comprehensive income (loss), changes in shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of SoCalGas as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), SoCalGas’ internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 26, 2026, expressed an unqualified opinion on SoCalGas’ internal control over financial reporting.
These financial statements are the responsibility of SoCalGas’ management. Our responsibility is to express an opinion on SoCalGas’ financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to SoCalGas in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
SoCalGas is subject to rate regulation by regulators and commissions in various jurisdictions (collectively, the “Commissions”) that have jurisdiction with respect to the rates of gas transmission and distribution companies in those jurisdictions. Management has determined it meets the requirements under U.S. GAAP to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures.
We identified the impact of rate regulation as a critical audit matter due to the high degree of subjectivity involved in assessing the impact of regulatory orders and future actions by the Commissions on the financial statements. Management’s judgments include assessing the likelihood of (1) the recovery in future rates of incurred costs and (2) potential refunds to customers. Auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
Our audit procedures related to the application of specialized rules to account for the effects of cost-based rate regulation and the uncertainty of future decisions by the Commissions included the following, among others:
We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) the recovery in future rates of costs deferred as regulatory assets, and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities. We tested the effectiveness of management’s controls over the initial recognition of amounts as regulatory assets or liabilities and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
We read relevant regulatory orders issued by the Commissions for SoCalGas and other publicly available information to assess the likelihood of recovery in future rates, or of a future reduction in rates, based on precedents of the Commissions’ treatment of similar costs under similar circumstances.
We evaluated SoCalGas’ disclosures related to the impacts of rate regulation.
We have served as SoCalGas’ auditor since 1937.
| SEMPRA | |||
|---|---|---|---|
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||
| (Dollars in millions, except per share amounts; shares in thousands) | |||
| Years ended December 31, | |||
| 2025 | 2024 | 2023 | |
| REVENUES | |||
| Utilities: | |||
| Natural gas | $7,319 | $7,141 | $9,495 |
| Electric | 4,552 | 4,296 | 4,334 |
| Energy-related businesses | 1,831 | 1,748 | 2,891 |
| Total revenues | 13,702 | 13,185 | 16,720 |
| EXPENSES AND OTHER INCOME | |||
| Utilities: | |||
| Cost of natural gas | (1,282) | (1,132) | (3,719) |
| Cost of electric fuel and purchased power | (385) | (245) | (375) |
| Energy-related businesses cost of sales | (367) | (380) | (548) |
| Operation and maintenance | (5,281) | (5,336) | (5,458) |
| Regulatory disallowances | (651) | — | — |
| Depreciation and amortization | (2,563) | (2,437) | (2,227) |
| Franchise fees and other taxes | (744) | (693) | (677) |
| Other income, net | 169 | 136 | 131 |
| Interest income | 103 | 61 | 89 |
| Interest expense | (1,532) | (1,049) | (1,309) |
| Income before income taxes and equity earnings | 1,169 | 2,110 | 2,627 |
| Income tax expense | (701) | (219) | (490) |
| Equity earnings | 1,604 | 1,609 | 1,481 |
| Net income | 2,072 | 3,500 | 3,618 |
| Earnings attributable to noncontrolling interests | (238) | (638) | (543) |
| Losses attributable to contingently redeemable noncontrolling interest | 3 | — | — |
| Preferred deemed dividends | (11) | — | — |
| Preferred dividends | (29) | (44) | (44) |
| Preferred dividends of subsidiary | (1) | (1) | (1) |
| Earnings attributable to common shares | $1,796 | $2,817 | $3,030 |
| Basic EPS: | |||
| Earnings | $2.75 | $4.44 | $4.81 |
| Weighted-average common shares outstanding | 652,697 | 633,795 | 630,296 |
| Diluted EPS: | |||
| Earnings | $2.75 | $4.42 | $4.79 |
| Weighted-average common shares outstanding | 653,826 | 637,943 | 632,733 |
| SEMPRA | ||||||
|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||
| (Dollars in millions) | ||||||
| Years ended December 31, 2025, 2024 and 2023 | ||||||
| Sempra shareholders’ equity | ||||||
| Pretax amount | Income tax (expense) benefit | Net-of-tax amount | NCI(after tax) | CRNCI(after tax) | Total | |
| 2025: | ||||||
| Net income (loss) | $2,538 | $(701) | $1,837 | $238 | $(3) | $2,072 |
| Other comprehensive income (loss): | ||||||
| Foreign currency translation adjustments | 21 | — | 21 | 9 | — | 30 |
| Financial instruments | (76) | 7 | (69) | (14) | — | (83) |
| Pension and other postretirement benefits | 19 | (2) | 17 | — | — | 17 |
| Total other comprehensive loss | (36) | 5 | (31) | (5) | — | (36) |
| Comprehensive income (loss) | 2,502 | (696) | 1,806 | 233 | (3) | 2,036 |
| Preferred dividends of subsidiary | (1) | — | (1) | — | — | (1) |
| Comprehensive income, afterpreferred dividends of subsidiary | $2,501 | $(696) | $1,805 | $233 | $(3) | $2,035 |
| 2024: | ||||||
| Net income | $3,081 | $(219) | $2,862 | $638 | $— | $3,500 |
| Other comprehensive income (loss): | ||||||
| Foreign currency translation adjustments | (30) | — | (30) | (14) | — | (44) |
| Financial instruments | 14 | (2) | 12 | 25 | — | 37 |
| Pension and other postretirement benefits | 18 | (16) | 2 | — | — | 2 |
| Total other comprehensive income (loss) | 2 | (18) | (16) | 11 | — | (5) |
| Comprehensive income | 3,083 | (237) | 2,846 | 649 | — | 3,495 |
| Preferred dividends of subsidiary | (1) | — | (1) | — | — | (1) |
| Comprehensive income, afterpreferred dividends of subsidiary | $3,082 | $(237) | $2,845 | $649 | $— | $3,494 |
| 2023: | ||||||
| Net income | $3,565 | $(490) | $3,075 | $543 | $— | $3,618 |
| Other comprehensive income (loss): | ||||||
| Foreign currency translation adjustments | 23 | — | 23 | 10 | — | 33 |
| Financial instruments | 57 | (18) | 39 | (38) | — | 1 |
| Pension and other postretirement benefits | (39) | 8 | (31) | — | — | (31) |
| Total other comprehensive income (loss) | 41 | (10) | 31 | (28) | — | 3 |
| Comprehensive income | 3,606 | (500) | 3,106 | 515 | — | 3,621 |
| Preferred dividends of subsidiary | (1) | — | (1) | — | — | (1) |
| Comprehensive income, afterpreferred dividends of subsidiary | $3,605 | $(500) | $3,105 | $515 | $— | $3,620 |
| SEMPRA | ||
|---|---|---|
| CONSOLIDATED BALANCE SHEETS | ||
| (Dollars in millions) | ||
| December 31, | ||
| 2025 | 2024 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $29 | $1,565 |
| Restricted cash | 2 | 21 |
| Accounts receivable – trade, net | 1,767 | 1,983 |
| Accounts receivable – other, net | 157 | 397 |
| Due from unconsolidated affiliates | — | 13 |
| Income taxes receivable | 71 | 90 |
| Inventories | 561 | 559 |
| Regulatory assets | 761 | 60 |
| Greenhouse gas allowances | 203 | 217 |
| Assets held for sale | 31,024 | — |
| Other current assets | 262 | 380 |
| Total current assets | 34,837 | 5,285 |
| Other assets: | ||
| Restricted cash | — | 3 |
| Regulatory assets | 3,868 | 3,937 |
| Greenhouse gas allowances | 1,221 | 845 |
| Nuclear decommissioning trusts | 899 | 875 |
| Dedicated assets in support of certain benefit plans | 605 | 585 |
| Deferred income taxes | 10 | 172 |
| Right-of-use assets – operating leases | 1,262 | 1,177 |
| Investment in Oncor Holdings | 17,472 | 15,400 |
| Other investments | 147 | 2,534 |
| Goodwill | — | 1,602 |
| Other intangible assets | — | 292 |
| Wildfire fund | 246 | 262 |
| Other long-term assets | 1,300 | 1,749 |
| Total other assets | 27,030 | 29,433 |
| Property, plant and equipment: | ||
| Property, plant and equipment | 66,900 | 80,397 |
| Less accumulated depreciation and amortization | (17,889) | (18,960) |
| Property, plant and equipment, net | 49,011 | 61,437 |
| Total assets | $110,878 | $96,155 |
| SEMPRA | ||
|---|---|---|
| CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||
| (Dollars in millions) | ||
| December 31, | ||
| 2025 | 2024 | |
| LIABILITIES, CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY | ||
| Current liabilities: | ||
| Short-term debt | $4,166 | $2,016 |
| Accounts payable – trade | 1,461 | 2,238 |
| Accounts payable – other | 203 | 208 |
| Due to unconsolidated affiliates | 8 | — |
| Dividends and interest payable | 770 | 773 |
| Accrued compensation and benefits | 521 | 558 |
| Regulatory liabilities | 3 | 141 |
| Current portion of long-term debt and finance leases | 1,876 | 2,274 |
| Greenhouse gas obligations | 203 | 217 |
| Liabilities held for sale | 11,704 | — |
| Other current liabilities | 979 | 1,251 |
| Total current liabilities | 21,894 | 9,676 |
| Long-term debt and finance leases | 28,979 | 31,558 |
| Deferred credits and other liabilities: | ||
| Due to unconsolidated affiliates | — | 352 |
| Regulatory liabilities | 4,250 | 3,817 |
| Greenhouse gas obligations | 957 | 506 |
| Pension and other postretirement benefit plan obligations, net of plan assets | 124 | 168 |
| Deferred income taxes | 6,127 | 5,845 |
| Asset retirement obligations | 3,743 | 3,737 |
| Deferred credits and other | 2,805 | 2,708 |
| Total deferred credits and other liabilities | 18,006 | 17,133 |
| Commitments and contingencies (Note 16) | ||
| Contingently redeemable noncontrolling interest | 3,206 | — |
| Equity: | ||
| Preferred stock (50,000,000 shares authorized; 900,000 shares of series C outstanding at December 31, 2024) | — | 889 |
| Common stock (1,125,000,000 shares authorized; 652,731,668 and 650,629,876 sharesoutstanding at December 31, 2025 and 2024, respectively; no par value) | 14,699 | 13,520 |
| Retained earnings | 17,092 | 16,979 |
| Accumulated other comprehensive income (loss) | (197) | (166) |
| Total Sempra shareholders’ equity | 31,594 | 31,222 |
| Preferred stock of subsidiary | 20 | 20 |
| Other noncontrolling interests | 7,179 | 6,546 |
| Total equity | 38,793 | 37,788 |
| Total liabilities, contingently redeemable noncontrolling interest, and equity | $110,878 | $96,155 |
| SEMPRA | |||
|---|---|---|---|
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (Dollars in millions) | |||
| Years ended December 31, | |||
| 2025 | 2024 | 2023 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $2,072 | $3,500 | $3,618 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Regulatory disallowances | 651 | — | — |
| Depreciation and amortization | 2,563 | 2,437 | 2,227 |
| Deferred income taxes and investment tax credits | 533 | (20) | 249 |
| Equity earnings | (1,604) | (1,609) | (1,481) |
| Share-based compensation expense | 64 | 86 | 80 |
| Fixed-price contracts and other derivatives | 92 | (197) | (666) |
| Bad debt expense | 65 | 209 | 458 |
| Other | (16) | 20 | (14) |
| Net change in working capital components: | |||
| Accounts receivable | (66) | 118 | 168 |
| Due to/from unconsolidated affiliates, net | 17 | 30 | 26 |
| Income taxes receivable/payable, net | (187) | (49) | 142 |
| Inventories | (64) | (74) | (80) |
| Other current assets | (296) | (30) | 11 |
| Accounts payable | (7) | (131) | (270) |
| Regulatory balancing accounts, net | (829) | (456) | 260 |
| Other current liabilities | 177 | 130 | 1,172 |
| Distributions from investments | 1,120 | 1,093 | 912 |
| Changes in other noncurrent assets and liabilities, net | 280 | (150) | (594) |
| Net cash provided by operating activities | 4,565 | 4,907 | 6,218 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Expenditures for property, plant and equipment | (10,612) | (8,215) | (8,397) |
| Expenditures for investments | (2,015) | (988) | (382) |
| Distributions from investments | — | 9 | — |
| Purchases of nuclear decommissioning and other trust assets | (1,031) | (889) | (610) |
| Proceeds from sales of nuclear decommissioning and other trust assets | 1,098 | 942 | 661 |
| Other | 23 | 23 | 12 |
| Net cash used in investing activities | $(12,537) | $(9,118) | $(8,716) |
| SEMPRA | |||
|---|---|---|---|
| CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | |||
| (Dollars in millions) | |||
| Years ended December 31, | |||
| 2025 | 2024 | 2023 | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Common dividends paid | $(1,603) | $(1,499) | $(1,483) |
| Preferred dividends paid | (40) | (44) | (44) |
| Redemption of preferred stock | (900) | — | — |
| Issuances of common stock, net | 32 | 1,219 | 145 |
| Repurchases of common stock | (58) | (43) | (32) |
| Issuances of debt (maturities greater than 90 days) | 11,282 | 8,674 | 7,669 |
| Payments on debt (maturities greater than 90 days) and finance leases | (5,220) | (3,339) | (6,294) |
| Increase (decrease) in short-term debt, net | 1,262 | (557) | 552 |
| Advances from unconsolidated affiliates | 150 | 85 | 31 |
| Contributions from contingently redeemable noncontrolling interest, net of transaction costs | 5,294 | — | — |
| Proceeds from investor equity subscription | 106 | — | — |
| Proceeds from sales of noncontrolling interests, net | — | — | 1,219 |
| Contributions from noncontrolling interests | 327 | 1,235 | 1,570 |
| Distributions to noncontrolling interests | (609) | (297) | (730) |
| Termination of interest rate and settlement of cross-currency swaps | — | 46 | (99) |
| Other | (93) | (56) | (85) |
| Net cash provided by financing activities | 9,930 | 5,424 | 2,419 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 5 | (13) | 6 |
| Increase (decrease) in cash, cash equivalents and restricted cash | 1,963 | 1,200 | (73) |
| Cash, cash equivalents and restricted cash, January 1 | 1,589 | 389 | 462 |
| Cash, cash equivalents and restricted cash, December 31 | $3,552 | $1,589 | $389 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
| Interest payments, net of amounts capitalized | $1,449 | $1,205 | $1,172 |
| Income tax payments, net of refunds | 376 | 289 | 197 |
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
| Accrued interest receivable capitalized to note receivable | $18 | $17 | $16 |
| Repayments of advances from unconsolidated affiliate in lieu of distributions | 45 | 62 | 36 |
| Accrued capital expenditures for PP&E | 1,653 | 1,181 | 1,052 |
| Capital expenditures reclassified from other assets to PP&E | 3 | 53 | 18 |
| Increase in ARO capitalized to PP&E | 11 | 1 | 33 |
| Increase in finance lease obligations capitalized to PP&E | 47 | 41 | 57 |
| Amortized debt issuance costs capitalized to PP&E | 22 | 13 | 4 |
| Unamortized debt issuance costs reclassified from noncurrent assets to long-term debt | 67 | 27 | 9 |
| Accrued interest payable capitalized to due to unconsolidated affiliate | 18 | 16 | — |
| Change in equity related to allocation of interests, net of tax | 1,771 | — | — |
| Preferred deemed dividends | 11 | — | — |
| Preferred dividends declared but not paid | — | 11 | 11 |
| Common dividends declared but not paid | 421 | 393 | 376 |
| Common dividends issued in stock | 52 | 54 | — |
| Contributions from NCI | — | — | 200 |
| SEMPRA | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF CHANGES IN CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST AND EQUITY | ||||||||||||||
| (Dollars in millions) | ||||||||||||||
| Years ended December 31, 2025, 2024 and 2023 | ||||||||||||||
| CRNCI · Preferred stock · Commonstock · Retainedearnings · AOCI · Semprashareholders'equity · NCI · Totalequity | ||||||||||||||
| Balance at December 31, 2022 | $— | $889 | $12,160 | $14,201 | $(135) | $27,115 | $2,141 | $29,256 | ||||||
| Net income | 3,075 | 3,075 | 543 | 3,618 | ||||||||||
| Other comprehensive income (loss) | 31 | 31 | (28) | 3 | ||||||||||
| Share-based compensation expense | 80 | 80 | 80 | |||||||||||
| Dividends declared: | ||||||||||||||
| Series C preferred stock ($48.75/share) | (44) | (44) | (44) | |||||||||||
| Common stock ($2.38/share) | (1,499) | (1,499) | (1,499) | |||||||||||
| Preferred dividends of subsidiary | (1) | (1) | (1) | |||||||||||
| Issuances of common stock | 144 | 144 | 144 | |||||||||||
| Repurchases of common stock | (32) | (32) | (32) | |||||||||||
| CRNCI and NCI activities: | ||||||||||||||
| Contributions from NCI | (145) | (145) | 1,770 | 1,625 | ||||||||||
| Distributions to NCI | (730) | (730) | ||||||||||||
| Sales | (3) | (46) | (49) | 1,283 | 1,234 | |||||||||
| Balance at December 31, 2023 | — | 889 | 12,204 | 15,732 | (150) | 28,675 | 4,979 | 33,654 | ||||||
| Net income | 2,862 | 2,862 | 638 | 3,500 | ||||||||||
| Other comprehensive (loss) income | (16) | (16) | 11 | (5) | ||||||||||
| Share-based compensation expense | 86 | 86 | 86 | |||||||||||
| Dividends declared: | ||||||||||||||
| Series C preferred stock ($48.75/share) | (44) | (44) | (44) | |||||||||||
| Common stock ($2.48/share) | (1,570) | (1,570) | (1,570) | |||||||||||
| Preferred dividends of subsidiary | (1) | (1) | (1) | |||||||||||
| Issuances of common stock | 1,273 | 1,273 | 1,273 | |||||||||||
| Repurchases of common stock | (43) | (43) | (43) | |||||||||||
| CRNCI and NCI activities: | ||||||||||||||
| Contributions from NCI | 1,235 | 1,235 | ||||||||||||
| Distributions to NCI | (297) | (297) | ||||||||||||
| Balance at December 31, 2024 | $— | $889 | $13,520 | $16,979 | $(166) | $31,222 | $6,566 | $37,788 | ||||||
| SEMPRA | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF CHANGES IN CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST AND EQUITY (CONTINUED) | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Years ended December 31, 2025, 2024 and 2023 | |||||||||||||||||
| CRNCI · Preferred stock · Commonstock · Retainedearnings · AOCI · Semprashareholders'equity · NCI · Totalequity | |||||||||||||||||
| Balance at December 31, 2024 | $— | $889 | $13,520 | $16,979 | $(166) | $31,222 | $6,566 | $37,788 | |||||||||
| Net (loss) income | (3) | 1,837 | 1,837 | 238 | 2,075 | ||||||||||||
| Other comprehensive loss | (31) | (31) | (5) | (36) | |||||||||||||
| Share-based compensation expense | 64 | 64 | 64 | ||||||||||||||
| Dividends declared: | |||||||||||||||||
| Series C preferred stock ($36.57/share) | (29) | (29) | (29) | ||||||||||||||
| Common stock ($2.58/share) | (1,683) | (1,683) | (1,683) | ||||||||||||||
| Redemption of preferred stock | (900) | (900) | (900) | ||||||||||||||
| Preferred deemed dividends | 11 | (11) | — | — | |||||||||||||
| Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||
| Issuances of common stock | 84 | 84 | 84 | ||||||||||||||
| Repurchases of common stock | (58) | (58) | (58) | ||||||||||||||
| CRNCI and NCI activities: | |||||||||||||||||
| Contributions from CRNCI | 5,248 | ||||||||||||||||
| Investor equity subscription | 76 | 16 | 16 | 9 | 25 | ||||||||||||
| Allocation of interests | (2,115) | 1,073 | 1,073 | 673 | 1,746 | ||||||||||||
| Contributions from NCI | 327 | 327 | |||||||||||||||
| Distributions to NCI | (609) | (609) | |||||||||||||||
| Balance at December 31, 2025 | $3,206 | $— | $14,699 | $17,092 | $(197) | $31,594 | $7,199 | $38,793 | |||||||||
| SAN DIEGO GAS & ELECTRIC COMPANY | |||
|---|---|---|---|
| STATEMENTS OF OPERATIONS | |||
| (Dollars in millions) | |||
| Years ended December 31, | |||
| 2025 | 2024 | 2023 | |
| Operating revenues: | |||
| Electric | $4,568 | $4,313 | $4,349 |
| Natural gas | 1,129 | 1,028 | 1,248 |
| Total operating revenues | 5,697 | 5,341 | 5,597 |
| Operating expenses: | |||
| Cost of electric fuel and purchased power | 448 | 308 | 445 |
| Cost of natural gas | 237 | 242 | 532 |
| Operation and maintenance | 1,725 | 1,692 | 1,846 |
| Regulatory disallowances | 651 | — | — |
| Depreciation and amortization | 1,316 | 1,223 | 1,098 |
| Franchise fees and other taxes | 434 | 402 | 381 |
| Total operating expenses | 4,811 | 3,867 | 4,302 |
| Operating income | 886 | 1,474 | 1,295 |
| Other income, net | 106 | 90 | 97 |
| Interest income | 2 | 5 | 15 |
| Interest expense | (559) | (525) | (497) |
| Income before income taxes | 435 | 1,044 | 910 |
| Income tax benefit (expense) | 128 | (153) | 26 |
| Net income/Earnings attributable to common shares | $563 | $891 | $936 |
| SAN DIEGO GAS & ELECTRIC COMPANY | |||
|---|---|---|---|
| STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
| (Dollars in millions) | |||
| Years ended December 31, 2025, 2024 and 2023 | |||
| Pretaxamount | Income tax benefit (expense) | Net-of-taxamount | |
| 2025: | |||
| Net income | $435 | $128 | $563 |
| Other comprehensive income (loss): | |||
| Pension and other postretirement benefits | 6 | — | 6 |
| Total other comprehensive income | 6 | — | 6 |
| Comprehensive income | $441 | $128 | $569 |
| 2024: | |||
| Net income | $1,044 | $(153) | $891 |
| Other comprehensive income (loss): | |||
| Pension and other postretirement benefits | (3) | (1) | (4) |
| Total other comprehensive loss | (3) | (1) | (4) |
| Comprehensive income | $1,041 | $(154) | $887 |
| 2023: | |||
| Net income | $910 | $26 | $936 |
| Other comprehensive income (loss): | |||
| Pension and other postretirement benefits | (2) | 1 | (1) |
| Total other comprehensive loss | (2) | 1 | (1) |
| Comprehensive income | $908 | $27 | $935 |
| SAN DIEGO GAS & ELECTRIC COMPANY | ||
|---|---|---|
| BALANCE SHEETS | ||
| (Dollars in millions) | ||
| December 31, | ||
| 2025 | 2024 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $7 | $— |
| Accounts receivable – trade, net | 809 | 774 |
| Accounts receivable – other, net | 92 | 89 |
| Due from unconsolidated affiliates | 1 | — |
| Income taxes receivable, net | 30 | 27 |
| Inventories | 267 | 202 |
| Prepaid expenses | 121 | 139 |
| Regulatory assets | 433 | 16 |
| Greenhouse gas allowances | 28 | 27 |
| Other current assets | 18 | 27 |
| Total current assets | 1,806 | 1,301 |
| Other assets: | ||
| Regulatory assets | 1,953 | 2,024 |
| Greenhouse gas allowances | 286 | 272 |
| Nuclear decommissioning trusts | 899 | 875 |
| Right-of-use assets – operating leases | 1,047 | 795 |
| Wildfire fund | 246 | 262 |
| Other long-term assets | 141 | 133 |
| Total other assets | 4,572 | 4,361 |
| Property, plant and equipment: | ||
| Property, plant and equipment | 35,033 | 33,162 |
| Less accumulated depreciation and amortization | (8,729) | (8,051) |
| Property, plant and equipment, net | 26,304 | 25,111 |
| Total assets | $32,682 | $30,773 |
| SAN DIEGO GAS & ELECTRIC COMPANY | ||
|---|---|---|
| BALANCE SHEETS (CONTINUED) | ||
| (Dollars in millions) | ||
| December 31, | ||
| 2025 | 2024 | |
| LIABILITIES AND SHAREHOLDER’S EQUITY | ||
| Current liabilities: | ||
| Short-term debt | $531 | $417 |
| Accounts payable – trade | 712 | 704 |
| Accounts payable – other | 42 | 38 |
| Due to unconsolidated affiliates | 59 | 59 |
| Interest payable | 94 | 84 |
| Accrued compensation and benefits | 174 | 175 |
| Regulatory liabilities | 3 | 75 |
| Current portion of long-term debt and finance leases | 798 | 42 |
| Greenhouse gas obligations | 28 | 27 |
| Asset retirement obligations | 107 | 97 |
| Other current liabilities | 273 | 269 |
| Total current liabilities | 2,821 | 1,987 |
| Long-term debt and finance leases | 10,081 | 10,018 |
| Deferred credits and other liabilities: | ||
| Regulatory liabilities | 2,960 | 2,701 |
| Greenhouse gas obligations | 137 | 62 |
| Pension obligation, net of plan assets | 19 | 28 |
| Deferred income taxes | 3,286 | 3,211 |
| Asset retirement obligations | 746 | 803 |
| Deferred credits and other | 1,699 | 1,399 |
| Total deferred credits and other liabilities | 8,847 | 8,204 |
| Commitments and contingencies (Note 16) | ||
| Shareholder’s equity: | ||
| Preferred stock (45,000,000 shares authorized; none issued) | — | — |
| Common stock (255,000,000 shares authorized; 116,583,358 shares outstanding;no par value) | 1,660 | 1,660 |
| Retained earnings | 9,279 | 8,916 |
| Accumulated other comprehensive income (loss) | (6) | (12) |
| Total shareholder’s equity | 10,933 | 10,564 |
| Total liabilities and shareholder’s equity | $32,682 | $30,773 |
| SAN DIEGO GAS & ELECTRIC COMPANY | |||
|---|---|---|---|
| STATEMENTS OF CASH FLOWS | |||
| (Dollars in millions) | |||
| Years ended December 31, | |||
| 2025 | 2024 | 2023 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $563 | $891 | $936 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Regulatory disallowances | 651 | — | — |
| Depreciation and amortization | 1,316 | 1,223 | 1,098 |
| Deferred income taxes and investment tax credits | (145) | 169 | 135 |
| Bad debt expense | 45 | 55 | 112 |
| Other | — | (14) | (35) |
| Net change in working capital components: | |||
| Accounts receivable | (82) | 92 | (213) |
| Due to/from unconsolidated affiliates, net | (8) | (14) | (62) |
| Income taxes receivable/payable, net | (3) | 209 | (236) |
| Inventories | (65) | (49) | (19) |
| Other current assets | (3) | (21) | (17) |
| Accounts payable | — | (32) | 31 |
| Regulatory balancing accounts, net | (535) | (429) | 571 |
| Other current liabilities | 46 | (21) | 129 |
| Changes in noncurrent assets and liabilities, net | (116) | 14 | (494) |
| Net cash provided by operating activities | 1,664 | 2,073 | 1,936 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Expenditures for property, plant and equipment | (2,427) | (2,522) | (2,540) |
| Purchases of nuclear decommissioning trust assets | (926) | (826) | (532) |
| Proceeds from sales of nuclear decommissioning trust assets | 974 | 874 | 592 |
| Other | 10 | 13 | 8 |
| Net cash used in investing activities | (2,369) | (2,461) | (2,472) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Common dividends paid | (200) | (225) | (100) |
| Issuances of debt (maturities greater than 90 days) | 848 | 594 | 1,389 |
| Payments on debt (maturities greater than 90 days) and finance leases | (43) | (442) | (490) |
| Increase (decrease) in short-term debt, net | 114 | 417 | (205) |
| Debt issuance costs | (7) | (6) | (13) |
| Other | — | — | (2) |
| Net cash provided by financing activities | 712 | 338 | 579 |
| Increase (decrease) in cash and cash equivalents | 7 | (50) | 43 |
| Cash and cash equivalents, January 1 | — | 50 | 7 |
| Cash and cash equivalents, December 31 | $7 | $— | $50 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
| Interest payments, net of amounts capitalized | $541 | $514 | $472 |
| Income tax payments (refunds), net | 23 | (225) | 76 |
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
| Accrued capital expenditures for PP&E | $243 | $230 | $264 |
| (Decrease) increase in ARO capitalized to PP&E | (40) | 24 | 29 |
| Increase in finance lease obligations capitalized to PP&E | 14 | 14 | 17 |
| SAN DIEGO GAS & ELECTRIC COMPANY | |||||||
|---|---|---|---|---|---|---|---|
| STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY | |||||||
| (Dollars in millions) | |||||||
| Years ended December 31, 2025, 2024 and 2023 | |||||||
| Commonstock · Retainedearnings · Accumulatedothercomprehensiveincome (loss) · Totalshareholder'sequity | |||||||
| Balance at December 31, 2022 | $1,660 | $7,414 | $(7) | $9,067 | |||
| Net income | 936 | 936 | |||||
| Other comprehensive loss | (1) | (1) | |||||
| Common stock dividends declared ($0.86/share) | (100) | (100) | |||||
| Balance at December 31, 2023 | 1,660 | 8,250 | (8) | 9,902 | |||
| Net income | 891 | 891 | |||||
| Other comprehensive loss | (4) | (4) | |||||
| Common stock dividends declared ($1.93/share) | (225) | (225) | |||||
| Balance at December 31, 2024 | 1,660 | 8,916 | (12) | 10,564 | |||
| Net income | 563 | 563 | |||||
| Other comprehensive income | 6 | 6 | |||||
| Common stock dividends declared ($1.72/share) | (200) | (200) | |||||
| Balance at December 31, 2025 | $1,660 | $9,279 | $(6) | $10,933 | |||
| SOUTHERN CALIFORNIA GAS COMPANY | |||
|---|---|---|---|
| STATEMENTS OF OPERATIONS | |||
| (Dollars in millions) | |||
| Years ended December 31, | |||
| 2025 | 2024 | 2023 | |
| Operating revenues | $6,291 | $6,209 | $8,289 |
| Operating expenses: | |||
| Cost of natural gas | 1,098 | 959 | 3,264 |
| Operation and maintenance | 2,689 | 2,791 | 2,821 |
| Depreciation and amortization | 1,016 | 910 | 839 |
| Franchise fees and other taxes | 293 | 273 | 278 |
| Total operating expenses | 5,096 | 4,933 | 7,202 |
| Operating income | 1,195 | 1,276 | 1,087 |
| Other (expense) income, net | (6) | 25 | (4) |
| Interest income | 6 | 9 | 9 |
| Interest expense | (367) | (323) | (285) |
| Income before income taxes | 828 | 987 | 807 |
| Income tax benefit (expense) | 38 | (31) | 5 |
| Net income | 866 | 956 | 812 |
| Preferred dividends | (1) | (1) | (1) |
| Earnings attributable to common shares | $865 | $955 | $811 |
| SOUTHERN CALIFORNIA GAS COMPANY | |||
|---|---|---|---|
| STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
| (Dollars in millions) | |||
| Years ended December 31, 2025, 2024 and 2023 | |||
| Pretaxamount | Income tax benefit (expense) | Net-of-taxamount | |
| 2025: | |||
| Net income | $828 | $38 | $866 |
| Other comprehensive income (loss): | |||
| Financial instruments | 1 | — | 1 |
| Pension and other postretirement benefits | 10 | (1) | 9 |
| Total other comprehensive income | 11 | (1) | 10 |
| Comprehensive income | $839 | $37 | $876 |
| 2024: | |||
| Net income | $987 | $(31) | $956 |
| Other comprehensive income (loss): | |||
| Financial instruments | 1 | — | 1 |
| Pension and other postretirement benefits | (4) | (1) | (5) |
| Total other comprehensive loss | (3) | (1) | (4) |
| Comprehensive income | $984 | $(32) | $952 |
| 2023: | |||
| Net income | $807 | $5 | $812 |
| Other comprehensive income (loss): | |||
| Financial instruments | 1 | — | 1 |
| Total other comprehensive income | 1 | — | 1 |
| Comprehensive income | $808 | $5 | $813 |
| SOUTHERN CALIFORNIA GAS COMPANY | ||
|---|---|---|
| BALANCE SHEETS | ||
| (Dollars in millions) | ||
| December 31, | ||
| 2025 | 2024 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $14 | $12 |
| Accounts receivable – trade, net | 958 | 932 |
| Accounts receivable – other, net | 61 | 71 |
| Due from unconsolidated affiliates | 8 | 16 |
| Inventories | 294 | 287 |
| Regulatory assets | 328 | 42 |
| Greenhouse gas allowances | 175 | 176 |
| Other current assets | 91 | 71 |
| Total current assets | 1,929 | 1,607 |
| Other assets: | ||
| Regulatory assets | 1,888 | 1,844 |
| Greenhouse gas allowances | 935 | 526 |
| Right-of-use assets – operating leases | 68 | 18 |
| Other long-term assets | 738 | 609 |
| Total other assets | 3,629 | 2,997 |
| Property, plant and equipment: | ||
| Property, plant and equipment | 31,078 | 29,084 |
| Less accumulated depreciation and amortization | (8,948) | (8,330) |
| Property, plant and equipment, net | 22,130 | 20,754 |
| Total assets | $27,688 | $25,358 |
| SOUTHERN CALIFORNIA GAS COMPANY | ||
|---|---|---|
| BALANCE SHEETS (CONTINUED) | ||
| (Dollars in millions) | ||
| December 31, | ||
| 2025 | 2024 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Short-term debt | $903 | $1,037 |
| Accounts payable – trade | 727 | 752 |
| Accounts payable – other | 161 | 158 |
| Due to unconsolidated affiliates | 35 | 38 |
| Accrued compensation and benefits | 219 | 245 |
| Regulatory liabilities | — | 64 |
| Current portion of long-term debt and finance leases | 529 | 373 |
| Greenhouse gas obligations | 175 | 176 |
| Asset retirement obligations | 98 | 91 |
| Other current liabilities | 536 | 451 |
| Total current liabilities | 3,383 | 3,385 |
| Long-term debt and finance leases | 7,619 | 7,031 |
| Deferred credits and other liabilities: | ||
| Regulatory liabilities | 1,290 | 1,115 |
| Greenhouse gas obligations | 820 | 410 |
| Pension obligation, net of plan assets | 18 | 45 |
| Deferred income taxes | 2,271 | 2,005 |
| Asset retirement obligations | 2,994 | 2,839 |
| Deferred credits and other | 457 | 367 |
| Total deferred credits and other liabilities | 7,850 | 6,781 |
| Commitments and contingencies (Note 16) | ||
| Shareholders’ equity: | ||
| Preferred stock (11,000,000 shares authorized; 862,043 shares outstanding) | 22 | 22 |
| Common stock (100,000,000 shares authorized; 91,300,000 shares outstanding;no par value) | 2,316 | 2,316 |
| Retained earnings | 6,515 | 5,850 |
| Accumulated other comprehensive income (loss) | (17) | (27) |
| Total shareholders’ equity | 8,836 | 8,161 |
| Total liabilities and shareholders’ equity | $27,688 | $25,358 |
| SOUTHERN CALIFORNIA GAS COMPANY | |||
|---|---|---|---|
| STATEMENTS OF CASH FLOWS | |||
| (Dollars in millions) | |||
| Years ended December 31, | |||
| 2025 | 2024 | 2023 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $866 | $956 | $812 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 1,016 | 910 | 839 |
| Deferred income taxes and investment tax credits | (107) | 28 | 12 |
| Bad debt expense | 40 | 97 | 294 |
| Other | (16) | (6) | (12) |
| Net change in working capital components: | |||
| Accounts receivable | (56) | (13) | 207 |
| Due to/from unconsolidated affiliates, net | 5 | 6 | 57 |
| Income taxes receivable/payable, net | 1 | 13 | (8) |
| Inventories | (7) | (10) | (118) |
| Other current assets | (244) | 6 | (1,053) |
| Accounts payable | 20 | (103) | (179) |
| Regulatory balancing accounts, net | (294) | (27) | (311) |
| Other current liabilities | 160 | 34 | 949 |
| Changes in noncurrent assets and liabilities, net | 364 | (100) | (100) |
| Net cash provided by operating activities | 1,748 | 1,791 | 1,389 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Expenditures for property, plant and equipment | (2,116) | (2,231) | (2,020) |
| Net cash used in investing activities | (2,116) | (2,231) | (2,020) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Common dividends paid | (200) | (200) | (100) |
| Preferred dividends paid | (1) | (1) | (1) |
| Issuances of debt (maturities greater than 90 days) | 1,490 | 1,794 | 997 |
| Payments on debt (maturities greater than 90 days) and finance leases | (1,076) | (524) | (1,120) |
| Increase (decrease) in short-term debt, net | 166 | (609) | 846 |
| Debt issuance costs | (9) | (10) | (10) |
| Net cash provided by financing activities | 370 | 450 | 612 |
| Increase (decrease) in cash and cash equivalents | 2 | 10 | (19) |
| Cash and cash equivalents, January 1 | 12 | 2 | 21 |
| Cash and cash equivalents, December 31 | $14 | $12 | $2 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
| Interest payments, net of amounts capitalized | $358 | $299 | $279 |
| Income tax payments (refunds), net | 69 | (9) | 6 |
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
| Accrued capital expenditures for PP&E | $264 | $308 | $290 |
| Capital expenditures reclassified from other assets to PP&E | — | 50 | — |
| Increase (decrease) in ARO capitalized to PP&E | 54 | (23) | 1 |
| Increase in finance lease obligations capitalized to PP&E | 33 | 27 | 40 |
| SOUTHERN CALIFORNIA GAS COMPANY | ||||||
|---|---|---|---|---|---|---|
| STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | ||||||
| (Dollars in millions) | ||||||
| Years ended December 31, 2025, 2024 and 2023 | ||||||
| Preferredstock · Commonstock · Retainedearnings · Accumulatedothercomprehensiveincome (loss) · Totalshareholders’equity | ||||||
| Balance at December 31, 2022 | $22 | $2,316 | $4,384 | $(24) | $6,698 | |
| Net income | 812 | 812 | ||||
| Other comprehensive income | 1 | 1 | ||||
| Dividends declared: | ||||||
| Preferred stock ($1.50/share) | (1) | (1) | ||||
| Common stock ($1.10/share) | (100) | (100) | ||||
| Balance at December 31, 2023 | 22 | 2,316 | 5,095 | (23) | 7,410 | |
| Net income | 956 | 956 | ||||
| Other comprehensive loss | (4) | (4) | ||||
| Dividends declared: | ||||||
| Preferred stock ($1.50/share) | (1) | (1) | ||||
| Common stock ($2.19/share) | (200) | (200) | ||||
| Balance at December 31, 2024 | 22 | 2,316 | 5,850 | (27) | 8,161 | |
| Net income | 866 | 866 | ||||
| Other comprehensive income | 10 | 10 | ||||
| Dividends declared: | ||||||
| Preferred stock ($1.50/share) | (1) | (1) | ||||
| Common stock ($2.19/share) | (200) | (200) | ||||
| Balance at December 31, 2025 | $22 | $2,316 | $6,515 | $(17) | $8,836 | |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.