SAN DIEGO GAS & ELECTRIC CO

For the period ended Jun 30, 2026. Filed Aug 6, 2026.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2026 · Filed Aug 6, 2026

SRE$78.77+0.8%Stored close · as of Nov 9, 2026

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Item 1. Financial Statements

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
(unaudited)
REVENUES
Utilities:
Natural gas	$1,364	$1,470	$3,389	$3,832
Electric	1,158	1,031	2,382	2,090
Energy-related businesses	475	499	881	880
Total revenues	2,997	3,000	6,652	6,802
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas	(63)	(183)	(398)	(676)
Cost of electric fuel and purchased power	(114)	(91)	(195)	(143)
Energy-related businesses cost of sales	69	(85)	(7)	(204)
Operation and maintenance	(1,251)	(1,239)	(2,493)	(2,582)
Depreciation and amortization	(612)	(653)	(1,233)	(1,293)
Franchise fees and other taxes	(194)	(165)	(404)	(361)
Other income, net	67	59	167	150
Interest income	38	14	78	48
Interest expense	(430)	(359)	(812)	(792)
Income before income taxes and equity earnings	507	298	1,355	949
Income tax expense	(112)	(172)	(177)	(229)
Equity earnings	547	393	914	718
Net income	942	519	2,092	1,438
Earnings attributable to noncontrolling interests	(141)	(46)	(248)	(48)
Earnings attributable to contingently redeemable noncontrolling interest	(4)	—	(10)	—
Preferred dividends	—	(11)	—	(22)
Preferred dividends of subsidiary	(1)	(1)	(1)	(1)
Earnings attributable to common shares	$796	$461	$1,833	$1,367
Basic EPS:
Earnings	$1.22	$0.71	$2.80	$2.10
Weighted-average common shares outstanding	654,038	652,664	653,815	652,330
Diluted EPS:
Earnings	$1.21	$0.71	$2.80	$2.09
Weighted-average common shares outstanding	655,945	653,224	655,718	653,123

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Sempra shareholders’ equity
	Pretaxamount	Income tax(expense) benefit	Net-of-taxamount	NCI(after tax)	CRNCI(after tax)	Total
(unaudited)
	Three months ended June 30, 2026 and 2025
2026:
Net income	$909	$(112)	$797	$141	$4	$942
Other comprehensive income (loss):
Foreign currency translation adjustments	7	—	7	3	—	10
Financial instruments	39	(1)	38	1	—	39
Pension and other postretirement benefits	2	—	2	—	—	2
Total other comprehensive income	48	(1)	47	4	—	51
Comprehensive income	957	(113)	844	145	4	993
Preferred dividends of subsidiary	(1)	—	(1)	—	—	(1)
Comprehensive income, after preferred dividends of subsidiary	$956	$(113)	$843	$145	$4	$992
2025:
Net income	$645	$(172)	$473	$46	$—	$519
Other comprehensive income (loss):
Foreign currency translation adjustments	11	—	11	5	—	16
Financial instruments	(36)	3	(33)	(7)	—	(40)
Pension and other postretirement benefits	3	(1)	2	—	—	2
Total other comprehensive loss	(22)	2	(20)	(2)	—	(22)
Comprehensive income	623	(170)	453	44	—	497
Preferred dividends of subsidiary	(1)	—	(1)	—	—	(1)
Comprehensive income, after preferred dividends of subsidiary	$622	$(170)	$452	$44	$—	$496
	Six months ended June 30, 2026 and 2025
2026:
Net income	$2,011	$(177)	$1,834	$248	$10	$2,092
Other comprehensive income (loss):
Foreign currency translation adjustments	5	—	5	2	—	7
Financial instruments	42	(2)	40	3	—	43
Pension and other postretirement benefits	8	—	8	—	—	8
Total other comprehensive income	55	(2)	53	5	—	58
Comprehensive income	2,066	(179)	1,887	253	10	2,150
Preferred dividends of subsidiary	(1)	—	(1)	—	—	(1)
Comprehensive income, after preferred dividends of subsidiary	$2,065	$(179)	$1,886	$253	$10	$2,149
2025:
Net income	$1,619	$(229)	$1,390	$48	$—	$1,438
Other comprehensive income (loss):
Foreign currency translation adjustments	11	—	11	5	—	16
Financial instruments	(72)	7	(65)	(12)	—	(77)
Pension and other postretirement benefits	6	(1)	5	—	—	5
Total other comprehensive loss	(55)	6	(49)	(7)	—	(56)
Comprehensive income	1,564	(223)	1,341	41	—	1,382
Preferred dividends of subsidiary	(1)	—	(1)	—	—	(1)
Comprehensive income, after preferred dividends of subsidiary	$1,563	$(223)	$1,340	$41	$—	$1,381

SEMPRA
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	June 30,	December 31,
	2026	2025(1)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$48	$29
Restricted cash	2	2
Accounts receivable – trade, net	1,442	1,767
Accounts receivable – other, net	190	157
Due from unconsolidated affiliates	45	—
Income taxes receivable	252	71
Inventories	496	561
Regulatory assets	511	761
Greenhouse gas allowances	196	203
Assets held for sale	32,939	31,024
Other current assets	169	262
Total current assets	36,290	34,837
Other assets:
Regulatory assets	4,297	3,868
Greenhouse gas allowances	1,498	1,221
Nuclear decommissioning trusts	920	899
Dedicated assets in support of certain benefit plans	617	605
Deferred income taxes	10	10
Right-of-use assets – operating leases	1,279	1,262
Investment in Oncor Holdings	19,002	17,472
Other investments	150	147
Wildfire fund	235	246
Other long-term assets	1,247	1,300
Total other assets	29,255	27,030
Property, plant and equipment:
Property, plant and equipment	68,371	66,900
Less accumulated depreciation and amortization	(18,635)	(17,889)
Property, plant and equipment, net	49,736	49,011
Total assets	$115,281	$110,878

SEMPRA
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	June 30,	December 31,
	2026	2025(1)
(unaudited)
LIABILITIES, CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
Current liabilities:
Short-term debt	$3,566	$4,166
Accounts payable – trade	1,225	1,461
Accounts payable – other	198	203
Due to unconsolidated affiliates	—	8
Dividends and interest payable	807	770
Accrued compensation and benefits	358	521
Regulatory liabilities	3	3
Current portion of long-term debt and finance leases	2,075	1,876
Greenhouse gas obligations	196	203
Liabilities held for sale	12,992	11,704
Other current liabilities	685	979
Total current liabilities	22,105	21,894
Long-term debt and finance leases	31,023	28,979
Deferred credits and other liabilities:
Regulatory liabilities	4,396	4,250
Greenhouse gas obligations	1,164	957
Pension and other postretirement benefit plan obligations, net of plan assets	119	124
Deferred income taxes	6,505	6,127
Asset retirement obligations	3,816	3,743
Deferred credits and other	2,847	2,805
Total deferred credits and other liabilities	18,847	18,006
Commitments and contingencies (Note 13)
Contingently redeemable noncontrolling interest	3,308	3,206
Equity:
Preferred stock (50,000,000 shares authorized; none issued)	—	—
Common stock (1,125,000,000 shares authorized; 653,754,366 and 652,731,668 sharesoutstanding at June 30, 2026 and December 31, 2025, respectively; no par value)	14,763	14,699
Retained earnings	18,066	17,092
Accumulated other comprehensive income (loss)	(144)	(197)
Total Sempra shareholders’ equity	32,685	31,594
Preferred stock of subsidiary	20	20
Other noncontrolling interests	7,293	7,179
Total equity	39,998	38,793
Total liabilities, contingently redeemable noncontrolling interest, and equity	$115,281	$110,878

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Six months ended June 30,
	2026	2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$2,092	$1,438
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,233	1,293
Deferred income taxes and investment tax credits	241	128
Equity earnings	(914)	(718)
Share-based compensation expense	44	11
Fixed-price contracts and other derivatives	(200)	82
Bad debt expense	48	37
Other	4	(36)
Net change in working capital components	268	(498)
Distributions from investments	721	516
Changes in other noncurrent assets and liabilities, net	(420)	13
Net cash provided by operating activities	3,117	2,266
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(4,687)	(4,640)
Expenditures for investments	(1,485)	(972)
Purchases of nuclear decommissioning and other trust assets	(650)	(531)
Proceeds from sales of nuclear decommissioning and other trust assets	679	580
Advances to unconsolidated affiliates	(30)	—
Other	9	—
Net cash used in investing activities	(6,164)	(5,563)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid	(826)	(787)
Preferred dividends paid	—	(22)
Issuances of common stock, net	30	19
Repurchases of common stock	(21)	(58)
Issuances of debt (maturities greater than 90 days)	8,092	5,458
Payments on debt (maturities greater than 90 days) and finance leases	(4,544)	(3,411)
(Decrease) increase in short-term debt, net	(600)	682
Advances from unconsolidated affiliates	79	44
Contributions from noncontrolling interests	74	83
Distributions to noncontrolling interests	(135)	(91)
Termination of interest rate swaps, net of transaction costs	96	—
Other	(51)	(26)
Net cash provided by financing activities	2,194	1,891
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1	1
Decrease in cash, cash equivalents and restricted cash	(852)	(1,405)
Cash, cash equivalents and restricted cash, January 1	3,552	1,589
Cash, cash equivalents and restricted cash, June 30	$2,700	$184

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Dollars in millions)
	Six months ended June 30,
	2026	2025
(unaudited)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	$764	$691
Income tax payments, net of refunds	124	290
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Repayments of advances from unconsolidated affiliate in lieu of distributions	$60	$45
Accrued capital expenditures for PP&E	1,472	1,167
Increase in ARO capitalized to PP&E	17	60
Increase in finance lease obligations capitalized to PP&E	8	31
Unamortized debt issuance costs reclassified from noncurrent assets to long-term debt	22	37
Change in equity related to allocation of interests	92	—
Preferred dividends declared but not paid	—	11
Common dividends declared but not paid	429	421
Common dividends issued in stock	25	26

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
(Dollars in millions)
CRNCI · Preferred stock · Common stock · Retained earnings · AOCI · Semprashareholders'equity · NCI · Total equity
(unaudited)
	Three months ended June 30, 2026
Balance at March 31, 2026	$3,254	$—			$14,731			$17,699		$(191)		$32,239			$7,235	$39,474
Net income	4					797				797		141			938
Other comprehensive income							47		47		4			51
Share-based compensation expense			19						19				19
Dividends declared:
Common stock ($0.66/share)					(429)				(429)				(429)
Preferred dividends of subsidiary					(1)				(1)				(1)
Issuances of common stock			34						34				34
Repurchases of common stock			(1)						(1)				(1)
CRNCI and NCI activities:
Allocation of interests	50			(20)						(20)		(30)			(50)
Contributions from NCI										33		33
Distributions to NCI										(70)		(70)
Balance at June 30, 2026	$3,308	$—			$14,763			$18,066		$(144)		$32,685			$7,313	$39,998
	Three months ended June 30, 2025
Balance at March 31, 2025	$—	$889			$13,484			$17,465		$(195)		$31,643			$6,559	$38,202
Net income					473				473		46			519
Other comprehensive loss							(20)		(20)		(2)			(22)
Share-based compensation expense			13						13				13
Dividends declared:
Series C preferred stock ($12.19/share)					(11)				(11)				(11)
Common stock ($0.64/share)					(421)				(421)				(421)
Preferred dividends of subsidiary					(1)				(1)				(1)
Issuances of common stock			22						22				22
Repurchases of common stock			(1)						(1)				(1)
CRNCI and NCI activities:
Contributions from NCI										49		49
Distributions to NCI										(53)		(53)
Balance at June 30, 2025	$—	$889			$13,518			$17,505		$(215)		$31,697			$6,599	$38,296

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
(Dollars in millions)
CRNCI · Preferred stock · Common stock · Retained earnings · AOCI · Semprashareholders’equity · NCI · Totalequity
(unaudited)
	Six months ended June 30, 2026
Balance at December 31, 2025	$3,206	$—			$14,699			$17,092		$(197)		$31,594			$7,199	$38,793
Net income	10					1,834				1,834		248			2,082
Other comprehensive income							53		53		5			58
Share-based compensation expense			44						44				44
Dividends declared:
Common stock ($1.32/share)					(859)				(859)				(859)
Preferred dividends of subsidiary					(1)				(1)				(1)
Issuances of common stock			55						55				55
Repurchases of common stock			(21)						(21)				(21)
CRNCI and NCI activities:
Allocation of interests	92			(14)						(14)		(78)			(92)
Contributions from NCI										74		74
Distributions to NCI										(135)		(135)
Balance at June 30, 2026	$3,308	$—			$14,763			$18,066		$(144)		$32,685			$7,313	$39,998
	Six months ended June 30, 2025
Balance at December 31, 2024	$—	$889			$13,520			$16,979		$(166)		$31,222			$6,566	$37,788
Net income					1,390				1,390		48			1,438
Other comprehensive loss							(49)		(49)		(7)			(56)
Share-based compensation expense			11						11				11
Dividends declared:
Series C preferred stock ($24.38/share)					(22)				(22)				(22)
Common stock ($1.29/share)					(841)				(841)				(841)
Preferred dividends of subsidiary					(1)				(1)				(1)
Issuances of common stock			45						45				45
Repurchases of common stock			(58)						(58)				(58)
CRNCI and NCI activities:
Contributions from NCI										83		83
Distributions to NCI										(91)		(91)
Balance at June 30, 2025	$—	$889			$13,518			$17,505		$(215)		$31,697			$6,599	$38,296

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions)
	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
(unaudited)
Operating revenues:
Electric	$1,163	$1,034	$2,391	$2,098
Natural gas	205	228	524	584
Total operating revenues	1,368	1,262	2,915	2,682
Operating expenses:
Cost of electric fuel and purchased power	135	106	229	179
Cost of natural gas	22	44	112	131
Operation and maintenance	407	403	830	843
Depreciation and amortization	331	323	675	643
Franchise fees and other taxes	119	98	242	208
Total operating expenses	1,014	974	2,088	2,004
Operating income	354	288	827	678
Other income, net	24	31	62	71
Interest income	3	2	4	2
Interest expense	(152)	(139)	(299)	(274)
Income before income taxes	229	182	594	477
Income tax expense	(39)	(7)	(108)	(21)
Net income/Earnings attributable to common shares	$190	$175	$486	$456

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pretaxamount	Income tax expense	Net-of-taxamount
(unaudited)
	Three months ended June 30, 2026 and 2025
2026:
Net income/Comprehensive income	$229	$(39)	$190
2025:
Net income/Comprehensive income	$182	$(7)	$175
	Six months ended June 30, 2026 and 2025
2026:
Net income/Comprehensive income	$594	$(108)	$486
2025:
Net income/Comprehensive income	$477	$(21)	$456

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	June 30,	December 31,
	2026	2025(1)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$1	$7
Accounts receivable – trade, net	884	809
Accounts receivable – other, net	98	92
Due from unconsolidated affiliates	18	1
Income taxes receivable, net	75	30
Inventories	264	267
Prepaid expenses	54	121
Regulatory assets	336	433
Greenhouse gas allowances	24	28
Other current assets	33	18
Total current assets	1,787	1,806
Other assets:
Regulatory assets	2,046	1,953
Greenhouse gas allowances	303	286
Nuclear decommissioning trusts	920	899
Right-of-use assets – operating leases	1,009	1,047
Wildfire fund	235	246
Other long-term assets	132	141
Total other assets	4,645	4,572
Property, plant and equipment:
Property, plant and equipment	35,769	35,033
Less accumulated depreciation and amortization	(9,133)	(8,729)
Property, plant and equipment, net	26,636	26,304
Total assets	$33,068	$32,682

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	June 30,	December 31,
	2026	2025(1)
(unaudited)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current liabilities:
Short-term debt	$2	$531
Accounts payable – trade	681	712
Accounts payable – other	43	42
Due to unconsolidated affiliates	40	59
Interest payable	107	94
Accrued compensation and benefits	95	174
Regulatory liabilities	3	3
Current portion of long-term debt and finance leases	51	798
Greenhouse gas obligations	24	28
Asset retirement obligations	110	107
Other current liabilities	247	273
Total current liabilities	1,403	2,821
Long-term debt and finance leases	11,150	10,081
Deferred credits and other liabilities:
Regulatory liabilities	3,112	2,960
Greenhouse gas obligations	154	137
Pension obligation, net of plan assets	30	19
Deferred income taxes	3,380	3,286
Asset retirement obligations	749	746
Deferred credits and other	1,671	1,699
Total deferred credits and other liabilities	9,096	8,847
Commitments and contingencies (Note 13)
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	9,765	9,279
Accumulated other comprehensive income (loss)	(6)	(6)
Total shareholder’s equity	11,419	10,933
Total liabilities and shareholder’s equity	$33,068	$32,682

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Six months ended June 30,
	2026	2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$486	$456
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	675	643
Deferred income taxes and investment tax credits	34	(1)
Bad debt expense	35	22
Other	(10)	(22)
Net change in working capital components	(86)	(200)
Changes in noncurrent assets and liabilities, net	(14)	(33)
Net cash provided by operating activities	1,120	865
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(934)	(1,270)
Purchases of nuclear decommissioning trust assets	(504)	(469)
Proceeds from sales of nuclear decommissioning trust assets	516	499
Other	13	—
Net cash used in investing activities	(909)	(1,240)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of debt (maturities greater than 90 days)	1,096	848
Payments on debt (maturities greater than 90 days) and finance leases	(774)	(21)
Decrease in short-term debt, net	(529)	(417)
Debt issuance costs	(10)	(7)
Net cash (used in) provided by financing activities	(217)	403
(Decrease) increase in cash and cash equivalents	(6)	28
Cash and cash equivalents, January 1	7	—
Cash and cash equivalents, June 30	$1	$28
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	$281	$258
Income tax payments, net of refunds	120	17
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures for PP&E	$185	$220
Increase in finance lease obligations capitalized to PP&E	7	4

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY
(Dollars in millions)
Commonstock · Retainedearnings · AOCI · Totalshareholder’sequity
(unaudited)
	Three months ended June 30, 2026
Balance at March 31, 2026	$1,660		$9,575		$(6)	$11,229
Net income		190		190
Balance at June 30, 2026	$1,660		$9,765		$(6)	$11,419
	Three months ended June 30, 2025
Balance at March 31, 2025	$1,660		$9,197		$(12)	$10,845
Net income		175		175
Balance at June 30, 2025	$1,660		$9,372		$(12)	$11,020
	Six months ended June 30, 2026
Balance at December 31, 2025	$1,660		$9,279		$(6)	$10,933
Net income		486		486
Balance at June 30, 2026	$1,660		$9,765		$(6)	$11,419
	Six months ended June 30, 2025
Balance at December 31, 2024	$1,660		$8,916		$(12)	$10,564
Net income		456		456
Balance at June 30, 2025	$1,660		$9,372		$(12)	$11,020

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions)
	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
(unaudited)
Operating revenues	$1,187	$1,268	$2,915	$3,288
Operating expenses:
Cost of natural gas	51	152	307	567
Operation and maintenance	619	622	1,240	1,379
Depreciation and amortization	276	251	549	493
Franchise fees and other taxes	72	62	153	141
Total operating expenses	1,018	1,087	2,249	2,580
Operating income	169	181	666	708
Other income (expense), net	41	(2)	84	40
Interest income	2	1	3	3
Interest expense	(104)	(89)	(201)	(179)
Income before income taxes	108	91	552	572
Income tax expense	—	(6)	(20)	(44)
Net income	108	85	532	528
Preferred dividends	(1)	(1)	(1)	(1)
Earnings attributable to common shares	$107	$84	$531	$527

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pretaxamount	Income tax expense	Net-of-taxamount
(unaudited)
	Three months ended June 30, 2026 and 2025
2026:
Net income/Comprehensive income	$108	$—	$108
2025:
Net income	$91	$(6)	$85
Other comprehensive income (loss):
Pension and other postretirement benefits	1	—	1
Total other comprehensive income	1	—	1
Comprehensive income	$92	$(6)	$86
	Six months ended June 30, 2026 and 2025
2026:
Net income/Comprehensive income	$552	$(20)	$532
2025:
Net income	$572	$(44)	$528
Other comprehensive income (loss):
Pension and other postretirement benefits	3	—	3
Total other comprehensive income	3	—	3
Comprehensive income	$575	$(44)	$531

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	June 30,	December 31,
	2026	2025(1)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$2	$14
Accounts receivable – trade, net	558	958
Accounts receivable – other, net	83	61
Due from unconsolidated affiliates	5	8
Inventories	232	294
Regulatory assets	175	328
Greenhouse gas allowances	172	175
Other current assets	74	91
Total current assets	1,301	1,929
Other assets:
Regulatory assets	2,215	1,888
Greenhouse gas allowances	1,195	935
Right-of-use assets – operating leases	126	68
Other long-term assets	692	738
Total other assets	4,228	3,629
Property, plant and equipment:
Property, plant and equipment	31,680	31,078
Less accumulated depreciation and amortization	(9,282)	(8,948)
Property, plant and equipment, net	22,398	22,130
Total assets	$27,927	$27,688

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	June 30,	December 31,
	2026	2025(1)
(unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$500	$903
Accounts payable – trade	467	727
Accounts payable – other	154	161
Due to unconsolidated affiliates	63	35
Accrued compensation and benefits	166	219
Current portion of long-term debt and finance leases	725	529
Greenhouse gas obligations	172	175
Asset retirement obligations	95	98
Other current liabilities	275	536
Total current liabilities	2,617	3,383
Long-term debt and finance leases	7,550	7,619
Deferred credits and other liabilities:
Regulatory liabilities	1,284	1,290
Greenhouse gas obligations	1,010	820
Pension obligation, net of plan assets	18	18
Deferred income taxes	2,481	2,271
Asset retirement obligations	3,064	2,994
Deferred credits and other	536	457
Total deferred credits and other liabilities	8,393	7,850
Commitments and contingencies (Note 13)
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	7,046	6,515
Accumulated other comprehensive income (loss)	(17)	(17)
Total shareholders’ equity	9,367	8,836
Total liabilities and shareholders’ equity	$27,927	$27,688

(1) Derived from audited financial statements.

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Six months ended June 30,
	2026	2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$532	$528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	549	493
Deferred income taxes	21	7
Bad debt expense	22	17
Other	(4)	(14)
Net change in working capital components	264	(34)
Changes in noncurrent assets and liabilities, net	(143)	145
Net cash provided by operating activities	1,241	1,142
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(967)	(1,045)
Net cash used in investing activities	(967)	(1,045)
CASH FLOWS FROM FINANCING ACTIVITIES
Preferred dividends paid	(1)	(1)
Issuances of debt (maturities greater than 90 days)	647	1,090
Payments on debt (maturities greater than 90 days) and finance leases	(517)	(1,063)
Decrease in short-term debt, net	(403)	(126)
Other	(12)	(9)
Net cash used in financing activities	(286)	(109)
Decrease in cash and cash equivalents	(12)	(12)
Cash and cash equivalents, January 1	14	12
Cash and cash equivalents, June 30	$2	$—
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	$188	$170
Income tax payments	29	55
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures for PP&E	$220	$221
Increase in finance lease obligations capitalized to PP&E	1	27
Increase in ARO capitalized to PP&E	8	60

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Dollars in millions)
Preferredstock · Commonstock · Retainedearnings · AOCI · Totalshareholders’equity
(unaudited)
	Three months ended June 30, 2026
Balance at March 31, 2026	$22	$2,316		$6,939		$(17)	$9,260
Net income			108			108
Dividends declared:
Preferred stock ($0.37/share)			(1)			(1)
Balance at June 30, 2026	$22	$2,316		$7,046		$(17)	$9,367
	Three months ended June 30, 2025
Balance at March 31, 2025	$22	$2,316		$6,293		$(25)	$8,606
Net income			85			85
Other comprehensive income				1	1
Dividends declared:
Preferred stock ($0.37/share)			(1)			(1)
Balance at June 30, 2025	$22	$2,316		$6,377		$(24)	$8,691
	Six months ended June 30, 2026
Balance at December 31, 2025	$22	$2,316		$6,515		$(17)	$8,836
Net income			532			532
Dividends declared:
Preferred stock ($0.75/share)			(1)			(1)
Balance at June 30, 2026	$22	$2,316		$7,046		$(17)	$9,367
	Six months ended June 30, 2025
Balance at December 31, 2024	$22	$2,316		$5,850		$(27)	$8,161
Net income			528			528
Other comprehensive income				3		3
Dividends declared:
Preferred stock ($0.75/share)			(1)			(1)
Balance at June 30, 2025	$22	$2,316		$6,377		$(24)	$8,691

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