SAN DIEGO GAS & ELECTRIC CO

We discuss herein Sempra’s results of operations and significant changes in earnings, revenues and costs by segment, as well as Parent and other, in the three months (Q2) and six months (YTD) ended June 30, 2026 compared to the same period in 2025. We also discuss herein the impact of foreign currency and inflation rates on Sempra’s results of operations.

RESULTS OF OPERATIONS

(Dollars and shares in millions, except per share amounts)

Sempra California

Sempra California’s earnings are comprised of SDG&E and SoCalGas. Because changes in SDG&E’s and SoCalGas’ cost of natural gas and/or electricity are recovered in rates, changes in these costs are offset in the changes in revenues and therefore do not impact earnings, other than potential impacts related to the GCIM for SoCalGas that we describe below. In addition to the changes in cost or market prices, natural gas or electric revenues recorded during a period are impacted by the difference between customer billings and recorded or CPUC-authorized amounts. These differences are required to be balanced over time, resulting in over- and undercollected regulatory balancing accounts. We discuss balancing accounts and their effects further in Note 4 of the Notes to Condensed Consolidated Financial Statements in this report and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

In the three months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $38 million (15%) was primarily due to:

▪$29 million higher income tax benefits primarily from flow-through items

▪$21 million higher CPUC base operating margin, net of operating expenses

▪$13 million higher electric transmission margin, including favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$20 million higher net interest expense

▪$10 million lower AFUDC equity

▪$10 million regulatory award approved by the CPUC in 2025

In the six months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $34 million (3%) was primarily due to:

▪$59 million higher CPUC base operating margin, net of operating expenses, including $43 million recognition of regulatory revenue reflecting returns on approved WMP capital projects resulting from the 2024 GRC Track 2 FD

▪$17 million higher electric transmission margin, including favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$34 million higher net interest expense

▪$15 million lower AFUDC equity

▪$5 million lower income tax benefits primarily from flow-through items

Sempra Texas Utilities

In the three months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $138 million was due to higher equity earnings from Oncor Holdings driven by:

▪overall higher revenues primarily attributable to:

◦the surcharge resulting from the comprehensive base rate review, reflecting the difference between newly approved rates and previously effective rates for the period from January 1, 2026 to June 1, 2026

◦increase due to the UTM and SRP

◦new base rates implemented in June 2026

◦rate updates to reflect increases in invested capital

◦customer growth

▪higher depreciation expense and interest expense associated with increases in invested capital

▪higher O&M

In the six months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $163 million (46%) was due to higher equity earnings from Oncor Holdings driven by:

▪overall higher revenues primarily attributable to:

◦increase due to the UTM and SRP

◦the surcharge resulting from the comprehensive base rate review, reflecting the difference between newly approved rates and previously effective rates for the period from January 1, 2026 to June 1, 2026

◦new base rates implemented in June 2026

◦rate updates to reflect increases in invested capital

◦customer growth

◦lower customer consumption primarily attributable to weather

▪higher depreciation expense and interest expense associated with increases in invested capital

▪higher O&M

In the three months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $158 million was primarily due to:

▪$46 million from $20 million income tax benefit in 2026 compared to $26 million income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$21 million income tax benefit in 2026 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

◦$25 million from $1 million income tax expense in 2026 compared to $26 million income tax expense in 2025 related to a Mexican deferred income tax liability on our outside basis difference in Ecogas

▪$37 million lower depreciation expense as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively

▪$34 million from asset and supply optimization driven by higher unrealized gains on commodity derivatives due to changes in natural gas prices and optimization of transport and storage contracts

▪$27 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives, comprised of a $71 million unfavorable impact in 2026 compared to a $98 million unfavorable impact in 2025

▪$10 million lower O&M from changes in provisions for expected credit losses

▪$7 million higher net interest income

▪$26 million higher income tax expense primarily from other outside basis differences and changes in tax allocations between Sempra Infrastructure and Parent and other

▪$11 million lower revenues driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025

In the six months ended June 30, 2026 compared to the same period in 2025, the increase in earnings of $274 million was primarily due to:

▪$92 million from asset and supply optimization driven by higher unrealized gains on commodity derivatives due to changes in natural gas prices and optimization of transport and storage contracts

▪$81 million from $55 million income tax benefit in 2026 compared to $26 million income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$54 million income tax benefit in 2026 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

◦$27 million from $1 million income tax benefit in 2026 compared to $26 million income tax expense in 2025 related to a Mexican deferred income tax liability on our outside basis difference in Ecogas

▪$73 million lower depreciation expense as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively

▪$39 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives, comprised of a $52 million unfavorable impact in 2026 compared to a $91 million unfavorable impact in 2025

▪$19 million lower net interest expense

▪$31 million from income tax expense in 2026 compared to income tax benefit in 2025 primarily from other outside basis differences and changes in tax allocations between Sempra Infrastructure and Parent and other

▪$24 million lower revenues driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025

Parent and Other

In the three months ended June 30, 2026 compared to the same period in 2025, the decrease in losses of $1 million (1%) was primarily due to:

▪$11 million preferred dividends in 2025 prior to the redemption of series C preferred stock in October 2025

▪$9 million higher income tax benefits primarily from changes in tax allocations between Sempra Infrastructure and Parent and other

▪$19 million higher net interest expense

In the six months ended June 30, 2026 compared to the same period in 2025, the increase in losses of $5 million (3%) was primarily due to:

▪$36 million higher net interest expense

▪$11 million lower net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan

▪$22 million preferred dividends in 2025 prior to the redemption of series C preferred stock in October 2025

▪$17 million higher income tax benefits primarily from changes in tax allocations between Sempra Infrastructure and Parent and other

The regulatory framework permits SDG&E and SoCalGas to recover certain program expenditures and other costs authorized by the CPUC (referred to as “refundable programs”), which may be subject to reviews for reasonableness.

Utilities: Natural Gas Revenues and Cost of Natural Gas

Our utilities revenues include natural gas revenues at Sempra California and Sempra Infrastructure, which includes Ecogas. Intercompany revenues are eliminated in Sempra’s Condensed Consolidated Statements of Operations.

SDG&E and SoCalGas operate under a regulatory framework that permits the cost of natural gas purchased for core customers to be passed through to customers in rates substantially as incurred and without markup. The GCIM provides for SoCalGas to share in the savings and/or costs from buying natural gas for its core customers at prices below or above monthly market-based benchmarks. This mechanism permits full recovery of costs incurred when average purchase costs are within a price range around the benchmark price. Any higher costs incurred or savings realized outside this range are shared between SoCalGas and its core customers. We provide further discussion in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report.

(1)Excludes depreciation and amortization, which are presented separately on Sempra’s Condensed Consolidated Statements of Operations.

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s natural gas revenues decreased by $106 million (7%) driven by Sempra California, which included:

▪$121 million decrease in cost of natural gas sold, which we discuss below

▪$45 million lower revenues from a $22 million credit in 2026 compared to a $23 million cost in 2025 for the non-service components of net periodic benefit cost, which fully offsets in other income, net

▪$14 million regulatory award approved by the CPUC in 2025

▪$8 million lower regulatory revenues associated with refundable programs, which are fully offset in O&M

▪$8 million lower regulatory revenues associated with the acceleration of self-developed software deductions, which are offset in income tax expense

▪$35 million higher CPUC-authorized base revenues

▪$24 million higher regulatory revenues primarily from lower gas repairs tax benefits

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s cost of natural gas decreased by $120 million driven by Sempra California, which included:

▪$109 million lower average natural gas prices

▪$12 million lower volumes driven by weather

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s natural gas revenues decreased by $443 million (12%) driven by Sempra California, which included:

▪$276 million decrease in cost of natural gas sold, which we discuss below

▪$172 million lower regulatory revenues associated with refundable programs, which are fully offset in O&M

▪$45 million lower revenues from higher non-service components of net periodic benefit cost, which fully offsets in other income, net

▪$37 million lower regulatory revenues associated with the acceleration of self-developed software deductions, which are offset in income tax expense

▪$72 million higher CPUC-authorized base revenues

▪$15 million higher regulatory revenues primarily from lower gas repairs tax benefits

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s cost of natural gas decreased by $278 million (41%) driven by Sempra California, which included:

▪$181 million lower average natural gas prices

▪$95 million lower volumes driven by weather

Utilities: Electric Revenues and Cost of Electric Fuel and Purchased Power

Our utilities revenues include electric revenues at Sempra California, substantially all of which are at SDG&E. Intercompany revenues are eliminated in Sempra’s Condensed Consolidated Statements of Operations.

SDG&E operates under a regulatory framework that permits it to recover the actual cost incurred to generate or procure electricity based on annual estimates of the cost of electricity supplied to customers. The differences in cost between estimates and actual are recovered or refunded in subsequent periods through rates.

Utility cost of electric fuel and purchased power includes utility-owned generation, power purchased from third parties, and net power purchases and sales to/from the California ISO.

(1) Excludes depreciation and amortization, which are presented separately on Sempra’s Condensed Consolidated Statements of Operations.

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s electric revenues increased by $127 million (12%) driven by Sempra California, which included:

▪$37 million higher revenues from incremental and balanced capital projects

▪$32 million higher regulatory revenues from lower ITCs from standalone energy storage projects, which are offset in income tax expense

▪$29 million increase in cost of electric fuel and purchased power, which we discuss below

▪$12 million higher revenues from transmission operations, including favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$11 million higher CPUC-authorized base revenues

▪$9 million higher regulatory revenues associated with refundable programs, which are fully offset in O&M

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s cost of electric fuel and purchased power increased by $23 million (25%) driven by Sempra California, which included:

▪$27 million higher purchased power primarily due to changes in excess capacity sales offset by lower utility-owned generation costs

▪$10 million lower sales to the California ISO due to lower market prices

▪$7 million lower purchased power from the California ISO due to lower market prices

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s electric revenues increased by $292 million (14%) driven by Sempra California, which included:

▪$136 million higher revenues from incremental and balanced capital projects, including $59 million recognition of regulatory revenue reflecting returns on approved WMP capital projects resulting from the 2024 GRC Track 2 FD

▪$65 million higher regulatory revenues from lower ITCs from standalone energy storage projects, which are offset in income tax expense

▪$50 million increase in cost of electric fuel and purchased power, which we discuss below

▪$26 million higher revenues from transmission operations, including favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$18 million higher regulatory revenues associated with refundable programs, which are fully offset in O&M

▪$17 million higher CPUC-authorized base revenues

▪$10 million lower regulatory revenues associated with the acceleration of self-developed software deductions, which are offset in income tax expense

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s cost of electric fuel and purchased power increased by $52 million (36%) driven by Sempra California, which included:

▪$52 million lower sales to the California ISO due to lower market prices

▪$32 million higher purchased power primarily due to changes in excess capacity sales and tolling agreements offset by lower utility-owned generation costs

▪$33 million lower purchased power from the California ISO due to lower market prices

Energy-Related Businesses: Revenues and Cost of Sales

(1) Includes eliminations of intercompany activity.

(2)Excludes depreciation and amortization, which are presented separately on Sempra’s Condensed Consolidated Statements of Operations.

(3)Includes net unrealized (gains) losses in 2026 from undesignated commodity derivatives.

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s revenues from energy-related businesses decreased by $24 million (5%) primarily due to:

▪$27 million revenues in 2025 driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025

▪$11 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:

◦$58 million driven by lower natural gas prices and lower volumes associated with optimization of transport and storage contracts

◦$13 million primarily from lower diversion fees due to lower natural gas prices

◦$60 million higher unrealized gains on commodity derivatives

▪$17 million higher revenues primarily due to the commencement of commercial operations at Cimarrón Wind in March 2026 offset by lower volumes from wind power generation assets

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s cost of sales from energy-related businesses decreased by $154 million primarily due to:

▪$77 million from $75 million unrealized gains in 2026 compared to $2 million unrealized losses in 2025 on undesignated commodity derivatives related to the PA LNG Phase 1 project and ECA LNG Phase 1 project

▪$68 million driven by lower natural gas purchases related to asset and supply optimization

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s revenues from energy-related businesses increased by $1 million primarily due to:

▪$25 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:

◦$140 million from $121 million unrealized gains in 2026 compared to $19 million unrealized losses in 2025 on commodity derivatives

◦$99 million driven by lower natural gas prices associated with optimization of transport and storage contracts

◦$16 million primarily from lower diversion fees due to lower natural gas prices

▪$17 million higher transportation revenues primarily from higher rates

▪$11 million higher revenues primarily due to the commencement of commercial operations at Cimarrón Wind in March 2026 offset by lower volumes from wind power generation assets

▪$53 million revenues in 2025 driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s cost of sales from energy-related businesses decreased by $197 million primarily due to:

▪$128 million driven by lower natural gas purchases related to asset and supply optimization

▪$55 million from $53 million unrealized gains in 2026 compared to $2 million unrealized losses in 2025 on undesignated commodity derivatives related to the PA LNG Phase 1 project and ECA LNG Phase 1 project

(1) Includes eliminations of intercompany activity.

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s O&M increased by $12 million (1%) primarily due to:

▪$16 million increase at Sempra Infrastructure due to:

◦$19 million higher development costs and certain non-capitalized expenses from projects under construction

◦$13 million higher purchased services and maintenance expenses

◦$22 million from changes in provisions for expected credit losses

▪$5 million decrease at Sempra California primarily due to lower non-refundable operating costs

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s O&M decreased by $89 million (3%) due to:

▪$164 million decrease at Sempra California due to:

◦$154 million lower expenses associated with refundable programs, which costs are recovered in revenue

◦$10 million lower non-refundable operating costs

▪ $63 million increase at Sempra Infrastructure primarily due to:

◦$36 million higher development costs and certain non-capitalized expenses from projects under construction

◦$31 million higher purchased services and maintenance expenses

◦$9 million related to 2025 expected credit losses on a credit support agreement with a third-party financial institution and associated transaction fees

▪$12 million increase at Parent and other primarily due to higher deferred compensation expense

Depreciation and Amortization

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s depreciation and amortization decreased by $41 million (6%) to $612 million primarily due to:

▪$75 million lower at Sempra Infrastructure as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively

▪$33 million higher at Sempra California due to higher utility plant rate base

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s depreciation and amortization decreased by $60 million (5%) to $1.2 billion due to:

▪$148 million lower at Sempra Infrastructure as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively

▪$88 million higher at Sempra California due to higher utility plant rate base

Other Income, Net

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s other income, net, increased by $8 million (14%) to $67 million primarily due to:

▪$48 million from a $17 million credit in 2026 compared to a $31 million cost in 2025 for the non-service components of net periodic benefit cost primarily at Sempra California

▪$7 million reduction in regulatory interest in 2025 from disallowed regulatory recovery of COVID-19 costs at Sempra California

▪$35 million from $34 million net losses in 2026 compared to a $1 million net gain in 2025 from impacts associated with foreign exchange instruments and foreign currency transactions primarily at Sempra Infrastructure, including:

◦$40 million higher losses on foreign currency derivatives as a result of fluctuation of the Mexican peso

◦$5 million higher gains driven by foreign currency transactional effects

▪$8 million lower AFUDC equity primarily at Sempra California

▪$4 million lower net interest income on regulatory balancing accounts at Sempra California

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s other income, net, increased by $17 million (11%) to $167 million primarily due to:

▪$54 million from a $46 million credit in 2026 compared to a $8 million cost in 2025 for the non-service components of net periodic benefit cost primarily at Sempra California

▪$7 million reduction in regulatory interest in 2025 from disallowed regulatory recovery of COVID-19 costs at Sempra California

▪$31 million from $26 million net losses in 2026 compared to $5 million net gains in 2025 from impacts associated with foreign exchange instruments and foreign currency transactions driven by $31 million higher losses on foreign currency derivatives as a result of fluctuation of the Mexican peso at Sempra Infrastructure

▪$7 million lower AFUDC equity

▪$6 million lower net interest income on regulatory balancing accounts at Sempra California

Interest Income

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s interest income increased by $24 million to $38 million primarily due to $24 million higher interest from interest bearing cash accounts primarily from the PA LNG Phase 1 project and PA LNG Phase 2 project at Sempra Infrastructure.

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s interest income increased by $30 million to $78 million due to:

▪$43 million higher interest from interest bearing cash accounts primarily from the PA LNG Phase 1 project and PA LNG Phase 2 project at Sempra Infrastructure

▪$17 million change in the fair value of the Support Agreement at Sempra Infrastructure

Interest Expense

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s interest expense increased by $71 million (20%) to $430 million primarily due to:

▪$28 million at Sempra California from higher debt balances from debt issuances

▪$27 million at Parent and other from higher debt balances from debt issuances and higher borrowings on commercial paper offset by higher capitalization of interest expense from projects under construction at Sempra Infrastructure

▪$16 million at Sempra Infrastructure primarily from:

◦$28 million higher write-off of debt issuance costs due to the early repayment of the Port Arthur LNG I term loan facility

◦$12 million higher unrealized gains on interest rate swaps related to the PA LNG Phase 1 project

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s interest expense increased by $20 million (3%) to $812 million due to:

▪$47 million at Sempra California primarily from higher debt balances from debt issuances

▪$44 million at Parent and other from higher debt balances from debt issuances and higher borrowings on commercial paper offset by higher capitalization of interest expense from projects under construction at Sempra Infrastructure

▪$71 million at Sempra Infrastructure from:

◦$86 million favorable impact in interest expense from interest rate swaps related to the PA LNG Phase 1 project comprised of:

•$84 million realized gains in 2026 from the termination of interest rate swaps, net of transaction costs

•$2 million lower unrealized losses

◦$12 million higher write-off of debt issuance costs due to the early repayment of the Port Arthur LNG I term loan facility

(1) We discuss how we recognize equity earnings in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report.

We report as part of our pretax results the income or loss attributable to NCI. However, we do not record income taxes for a portion of this income or loss, as some of our entities with NCI are currently treated as partnerships for U.S. income tax purposes, and thus we are only liable for income taxes on the portion of the earnings that are allocated to us. Our pretax income, however, includes 100% of these entities. If our entities with NCI grow, and if we continue to invest in such entities, the impact on our ETR may become more significant.

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s income tax expense decreased by $60 million (35%) primarily due to:

▪$84 million from $38 million income tax expense in 2026 compared to $122 million income tax expense in 2025 from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives

▪$58 million from $20 million income tax benefit in 2026 compared to $38 million income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$37 million from $1 million income tax expense in 2026 compared to $38 million income tax expense in 2025 related to a Mexican deferred income tax liability on the outside basis difference in our investment in Ecogas

◦$21 million income tax benefit in 2026 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s income tax expense decreased by $52 million (23%) primarily due to:

▪$94 million from $56 million income tax benefit in 2026 compared to $38 million income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$54 million income tax benefit in 2026 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

◦$40 million from $2 million income tax benefit in 2026 compared to $38 million income tax expense in 2025 related to a Mexican deferred income tax liability on the outside basis difference in our investment in Ecogas

▪$92 million from $20 million income tax expense in 2026 compared to $112 million income tax expense in 2025 from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives

▪$23 million higher income tax benefit attributable to NCI’s share of higher U.S. partnership’s pretax income

We discuss the impact of foreign currency exchange rates and inflation on income taxes below in “Impact of Foreign Currency and Inflation Rates on Results of Operations.” See Note 1 of the Notes to Condensed Consolidated Financial Statements in this report and Notes 1 and 8 of the Notes to Consolidated Financial Statements in the Annual Report for further details about our accounting for income taxes and items subject to flow-through treatment.

Equity Earnings

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s equity earnings increased by $154 million (39%) to $547 million primarily due to:

▪$137 million at Oncor Holdings driven by:

◦overall higher revenues primarily attributable to:

•the surcharge resulting from the comprehensive base rate review, reflecting the difference between newly approved rates and previously effective rates for the period from January 1, 2026 to June 1, 2026

•increase due to the UTM and SRP

•new base rates implemented in June 2026

•rate updates to reflect increases in invested capital

•customer growth

◦higher depreciation expense and interest expense associated with increases in invested capital

◦higher O&M

▪$14 million at IMG due to lower income tax expense

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s equity earnings increased by $196 million (27%) to $914 million primarily due to:

▪ $162 million at Oncor Holdings driven by:

◦overall higher revenues primarily attributable to:

•increase due to the UTM and SRP

•the surcharge resulting from the comprehensive base rate review, reflecting the difference between newly approved rates and previously effective rates for the period from January 1, 2026 to June 1, 2026

•new base rates implemented in June 2026

•rate updates to reflect increases in invested capital

•customer growth

•lower customer consumption primarily attributable to weather

◦higher depreciation expense and interest expense associated with increases in invested capital

◦higher O&M

▪$21 million at IMG due to lower income tax expense and lower interest expense

Earnings Attributable to Noncontrolling Interests

In the three months ended June 30, 2026 compared to the same period in 2025, Sempra’s earnings attributable to NCI increased by $95 million to $141 million primarily due to an increase in SI Partners subsidiaries’ net income driven by higher unrealized gains on commodity derivatives and foreign currency and inflation effects on our monetary positions in Mexico.

In the six months ended June 30, 2026 compared to the same period in 2025, Sempra’s earnings attributable to NCI increased by $200 million to $248 million primarily due to an increase in SI Partners subsidiaries’ net income driven by a favorable impact in interest expense from the termination of interest rate swaps in 2026 related to the PA LNG Phase 1 project, lower depreciation expense as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively, and unrealized gains in 2026 compared to unrealized losses in 2025 on commodity derivatives.

IMPACT OF FOREIGN CURRENCY AND INFLATION RATES ON RESULTS OF OPERATIONS

Because Ecogas, our natural gas distribution utility in Mexico, uses the Mexican peso as its functional currency, its revenues and expenses are translated into U.S. dollars at average exchange rates for the period when included in Sempra’s results of operations. Year‑over‑year differences in average exchange rates used to translate Ecogas’ income statement activity can therefore create variances in our comparative results of operations. In the three months and six months ended June 30, 2026 compared to the same periods in 2025, the impact of changes in average foreign currency translation rates on our earnings was negligible and $1 million, respectively.

We discuss further the impact of foreign currency and inflation rates on results of operations, including impacts on income taxes and related hedging activity, in “Part II – Item 7. MD&A – Impact of Foreign Currency and Inflation Rates on Results of Operations” in the Annual Report.

The impact from fluctuations in foreign currency exchange rates and Mexican inflation on our results of operations is summarized in the following table.

At June 30, 2026, SI Partners, which holds our foreign operations, is classified as held for sale. Upon completion of the planned sale, which we expect to occur in the third quarter of 2026, we will deconsolidate SI Partners and account for our remaining 25% interest under the equity method, which we expect will reduce volatility in our results of operations associated with foreign currency exchange rate fluctuations and Mexican inflation.