SAN DIEGO GAS & ELECTRIC CO

For the period ended Sep 30, 2026. Filed Nov 5, 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.

Sep 30, 2026 · Filed Nov 5, 2026

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

Extracted filing text, with the paragraph anchors used by the comparison.

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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 September 30,		Nine months ended September 30,
	2026	2025	2026	2025
(unaudited)
REVENUES
Utilities:
Natural gas	$1,347	$1,363	$4,736	$5,195
Electric	1,391	1,260	3,773	3,350
Energy-related businesses	453	528	1,334	1,408
Total revenues	3,191	3,151	9,843	9,953
EXPENSES AND OTHER INCOME
Utilities:
Cost of natural gas	(179)	(210)	(577)	(886)
Cost of electric fuel and purchased power	(154)	(122)	(349)	(265)
Energy-related businesses cost of sales	(137)	(117)	(144)	(321)
Operation and maintenance	(1,219)	(1,349)	(3,712)	(3,931)
Regulatory disallowances, net	(205)	—	(205)	—
Depreciation and amortization	(632)	(662)	(1,865)	(1,955)
Franchise fees and other taxes	(214)	(194)	(618)	(555)
Gain on sales	214	—	214	—
Other income, net	58	49	225	199
Interest income	35	17	113	65
Interest expense	(298)	(403)	(1,110)	(1,195)
Income before income taxes and equity earnings	460	160	1,815	1,109
Income tax expense	(14)	(482)	(191)	(711)
Equity earnings	668	472	1,582	1,190
Net income	1,114	150	3,206	1,588
Earnings attributable to noncontrolling interests	(231)	(55)	(479)	(103)
Earnings attributable to contingently redeemable noncontrolling interest	—	—	(10)	—
Preferred deemed dividends	—	(11)	—	(11)
Preferred deemed dividends of subsidiary	(6)	—	(6)	—
Preferred dividends	—	(7)	—	(29)
Preferred dividends of subsidiary	—	—	(1)	(1)
Earnings attributable to common shares	$877	$77	$2,710	$1,444
Basic EPS:
Earnings	$1.34	$0.12	$4.14	$2.21
Weighted-average common shares outstanding	654,262	652,948	653,966	652,538
Diluted EPS:
Earnings	$1.34	$0.12	$4.13	$2.21
Weighted-average common shares outstanding	655,939	654,009	655,793	653,420

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 September 30, 2026 and 2025
2026:
Net income	$897	$(14)	$883	$231	$—	$1,114
Other comprehensive income (loss):
Foreign currency translation adjustments	38	—	38	17	—	55
Financial instruments	167	(9)	158	6	—	164
Pension and other postretirement benefits	3	(1)	2	—	—	2
Total other comprehensive income	208	(10)	198	23	—	221
Comprehensive income	1,105	(24)	1,081	254	—	1,335
Preferred deemed dividends of subsidiary	(6)	—	(6)	—	—	(6)
Comprehensive income, after preferred deemeddividends of subsidiary	$1,099	$(24)	$1,075	$254	$—	$1,329
2025:
Net income	$577	$(482)	$95	$55	$—	$150
Other comprehensive income (loss):
Foreign currency translation adjustments	5	—	5	3	—	8
Financial instruments	(14)	1	(13)	(1)	—	(14)
Pension and other postretirement benefits	12	(1)	11	—	—	11
Total other comprehensive income	3	—	3	2	—	5
Comprehensive income	$580	$(482)	$98	$57	$—	$155
	Nine months ended September 30, 2026 and 2025
2026:
Net income	$2,908	$(191)	$2,717	$479	$10	$3,206
Other comprehensive income (loss):
Foreign currency translation adjustments	43	—	43	19	—	62
Financial instruments	209	(11)	198	9	—	207
Pension and other postretirement benefits	11	(1)	10	—	—	10
Total other comprehensive income	263	(12)	251	28	—	279
Comprehensive income	3,171	(203)	2,968	507	10	3,485
Preferred deemed dividends of subsidiary	(6)	—	(6)	—	—	(6)
Preferred dividends of subsidiary	(1)	—	(1)	—	—	(1)
Comprehensive income, after preferred deemed dividends of subsidiary and preferred dividends of subsidiary	$3,164	$(203)	$2,961	$507	$10	$3,478
2025:
Net income	$2,196	$(711)	$1,485	$103	$—	$1,588
Other comprehensive income (loss):
Foreign currency translation adjustments	16	—	16	8	—	24
Financial instruments	(86)	8	(78)	(13)	—	(91)
Pension and other postretirement benefits	18	(2)	16	—	—	16
Total other comprehensive loss	(52)	6	(46)	(5)	—	(51)
Comprehensive income	2,144	(705)	1,439	98	—	1,537
Preferred dividends of subsidiary	(1)	—	(1)	—	—	(1)
Comprehensive income, after preferred dividends of subsidiary	$2,143	$(705)	$1,438	$98	$—	$1,536

SEMPRA
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	September 30,	December 31,
	2026	2025(1)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$34	$29
Restricted cash	2	2
Accounts receivable – trade, net	1,573	1,767
Accounts receivable – other, net	178	157
Due from unconsolidated affiliates	53	—
Income taxes receivable	236	71
Inventories	531	561
Regulatory assets	589	761
Greenhouse gas allowances	202	203
Assets held for sale	33,552	31,024
Other current assets	368	262
Total current assets	37,318	34,837
Other assets:
Regulatory assets	4,241	3,868
Greenhouse gas allowances	1,614	1,221
Nuclear decommissioning trusts	891	899
Dedicated assets in support of certain benefit plans	609	605
Deferred income taxes	10	10
Right-of-use assets – operating leases	1,239	1,262
Investment in Oncor Holdings	20,010	17,472
Other investments	152	147
Wildfire fund	226	246
Other long-term assets	1,230	1,300
Total other assets	30,222	27,030
Property, plant and equipment:
Property, plant and equipment	69,431	66,900
Less accumulated depreciation and amortization	(18,947)	(17,889)
Property, plant and equipment, net	50,484	49,011
Total assets	$118,024	$110,878

SEMPRA
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	September 30,	December 31,
	2026	2025(1)
(unaudited)
LIABILITIES, CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
Current liabilities:
Short-term debt	$4,438	$4,166
Accounts payable – trade	1,318	1,461
Accounts payable – other	190	203
Due to unconsolidated affiliates	—	8
Dividends and interest payable	927	770
Accrued compensation and benefits	475	521
Regulatory liabilities	29	3
Current portion of long-term debt and finance leases	1,528	1,876
Greenhouse gas obligations	202	203
Liabilities held for sale	13,118	11,704
Other current liabilities	984	979
Total current liabilities	23,209	21,894
Long-term debt and finance leases	31,508	28,979
Deferred credits and other liabilities:
Regulatory liabilities	4,464	4,250
Greenhouse gas obligations	1,301	957
Pension and other postretirement benefit plan obligations, net of plan assets	105	124
Deferred income taxes	6,555	6,127
Asset retirement obligations	3,876	3,743
Deferred credits and other	2,830	2,805
Total deferred credits and other liabilities	19,131	18,006
Commitments and contingencies (Note 13)
Contingently redeemable noncontrolling interest	3,392	3,206
Equity:
Preferred stock (50,000,000 shares authorized; none issued)	—	—
Common stock (1,125,000,000 shares authorized; 653,949,225 and 652,731,668 sharesoutstanding at September 30, 2026 and December 31, 2025, respectively; no par value)	14,760	14,699
Retained earnings	18,513	17,092
Accumulated other comprehensive income (loss)	54	(197)
Total Sempra shareholders’ equity	33,327	31,594
Preferred stock of subsidiary	—	20
Other noncontrolling interests	7,457	7,179
Total equity	40,784	38,793
Total liabilities, contingently redeemable noncontrolling interest, and equity	$118,024	$110,878

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Nine months ended September 30,
	2026	2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$3,206	$1,588
Adjustments to reconcile net income to net cash provided by operating activities:
Regulatory disallowances, net	205	—
Depreciation and amortization	1,865	1,955
Gain on sales	(214)	—
Deferred income taxes and investment tax credits	118	558
Equity earnings	(1,582)	(1,190)
Share-based compensation expense	66	25
Fixed-price contracts and other derivatives	(226)	133
Bad debt expense	88	109
Other	63	3
Net change in working capital components	60	(745)
Distributions from investments	1,079	828
Changes in other noncurrent assets and liabilities, net	(48)	112
Net cash provided by operating activities	4,680	3,376
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(7,327)	(7,201)
Expenditures for investments	(2,095)	(1,492)
Proceeds from sales, net of transaction costs and cash sold	535	—
Purchases of nuclear decommissioning and other trust assets	(914)	(746)
Proceeds from sales of nuclear decommissioning and other trust assets	942	831
Advances to unconsolidated affiliates	(30)	—
Other	(17)	3
Net cash used in investing activities	(8,906)	(8,605)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends	(1,245)	(1,195)
Preferred deemed dividends of subsidiary	(6)	—
Preferred dividends	—	(22)
Preferred dividends of subsidiary	(1)	(1)
Issuances of common stock, net	37	26
Repurchases of common stock	(21)	(58)
Issuances of debt (maturities greater than 90 days)	11,178	8,892
Payments on debt (maturities greater than 90 days) and finance leases	(6,891)	(4,142)
Decrease in short-term debt, net	(328)	(170)
Advances from unconsolidated affiliates	140	96
Contributions from contingently redeemable noncontrolling interest, net of transaction costs	—	3,212
Proceeds from investor equity subscription	—	106
Purchase of noncontrolling interest	(20)	—
Contributions from noncontrolling interests	97	137
Distributions to noncontrolling interests	(206)	(131)
Termination of interest rate swaps, net of transaction costs	96	—
Other	(54)	(89)
Net cash provided by financing activities	2,776	6,661
Effect of exchange rate changes on cash, cash equivalents and restricted cash	2	4
(Decrease) increase in cash, cash equivalents and restricted cash	(1,448)	1,436
Cash, cash equivalents and restricted cash, January 1	3,552	1,589
Cash, cash equivalents and restricted cash, September 30	$2,104	$3,025

SEMPRA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Dollars in millions)
	Nine months ended September 30,
	2026	2025
(unaudited)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	$1,048	$940
Income tax payments, net of refunds	164	339
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued interest receivable capitalized to note receivable	$14	$13
Repayments of advances from unconsolidated affiliate in lieu of distributions	60	45
Accrued capital expenditures for PP&E	1,382	1,619
Increase in ARO capitalized to PP&E	44	59
Increase in finance lease obligations capitalized to PP&E	49	41
Unamortized debt issuance costs reclassified from noncurrent assets to long-term debt	30	49
Redemption of preferred stock	—	900
Preferred deemed dividends	—	(11)
Change in equity related to allocation of interests	176	1,115
Preferred dividends declared but not paid	—	18
Common dividends declared but not paid	430	421
Common dividends issued in stock	35	39

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 September 30, 2026
Balance at June 30, 2026	$3,308		$—			$14,763			$18,066		$(144)		$32,685			$7,313	$39,998
Net income	—						883				883		231			1,114
Other comprehensive income								198		198		23			221
Share-based compensation expense				22						22				22
Dividends declared:
Common stock ($0.65/share)						(430)				(430)				(430)
Preferred deemed dividends of subsidiary						(6)				(6)				(6)
Issuances of common stock				17						17				17
CRNCI and NCI activities:
Allocation of interests	84				(42)						(42)		(42)			(84)
Purchase of NCI											(20)		(20)
Contributions from NCI											23		23
Distributions to NCI											(71)		(71)
Balance at September 30, 2026	$3,392		$—			$14,760			$18,513		$54		$33,327			$7,457	$40,784
	Three months ended September 30, 2025
Balance at June 30, 2025	$—		$889			$13,518			$17,505		$(215)		$31,697			$6,599	$38,296
Net income						95				95		55			150
Other comprehensive income								3		3		2			5
Share-based compensation expense				14						14				14
Dividends declared:
Series C preferred stock ($12.19/share)						(7)				(7)				(7)
Common stock ($0.65/share)						(421)				(421)				(421)
Redemption of preferred stock		(900)								(900)				(900)
Preferred deemed dividends		11					(11)				—				—
Issuances of common stock				20						20				20
CRNCI and NCI activities:
Contributions from CRNCI	3,166
Investor equity subscription	76				16						16		9			25
Allocation of interests	(1,309)				635						635		455			1,090
Contributions from NCI											54		54
Distributions to NCI											(40)		(40)
Balance at September 30, 2025	$1,933		$—			$14,203			$17,161		$(212)		$31,152			$7,134	$38,286

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)
	Nine months ended September 30, 2026
Balance at December 31, 2025	$3,206		$—			$14,699			$17,092		$(197)		$31,594			$7,199	$38,793
Net income	10						2,717				2,717		479			3,196
Other comprehensive income								251		251		28			279
Share-based compensation expense				66						66				66
Dividends declared:
Common stock ($1.97/share)						(1,289)				(1,289)				(1,289)
Preferred deemed dividends of subsidiary						(6)				(6)				(6)
Preferred dividends of subsidiary						(1)				(1)				(1)
Issuances of common stock				72						72				72
Repurchases of common stock				(21)						(21)				(21)
CRNCI and NCI activities:
Allocation of interests	176				(56)						(56)		(120)			(176)
Purchase of NCI											(20)		(20)
Contributions from NCI											97		97
Distributions to NCI											(206)		(206)
Balance at September 30, 2026	$3,392		$—			$14,760			$18,513		$54		$33,327			$7,457	$40,784
	Nine months ended September 30, 2025
Balance at December 31, 2024	$—		$889			$13,520			$16,979		$(166)		$31,222			$6,566	$37,788
Net income						1,485				1,485		103			1,588
Other comprehensive loss								(46)		(46)		(5)			(51)
Share-based compensation expense				25						25				25
Dividends declared:
Series C preferred stock ($36.57/share)						(29)				(29)				(29)
Common stock ($1.94/share)						(1,262)				(1,262)				(1,262)
Redemption of preferred stock		(900)								(900)				(900)
Preferred deemed dividends		11					(11)				—				—
Preferred dividends of subsidiary						(1)				(1)				(1)
Issuances of common stock				65						65				65
Repurchases of common stock				(58)						(58)				(58)
CRNCI and NCI activities:
Contributions from CRNCI	3,166
Investor equity subscription	76				16						16		9			25
Allocation of interests	(1,309)				635						635		455			1,090
Contributions from NCI											137		137
Distributions to NCI											(131)		(131)
Balance at September 30, 2025	$1,933		$—			$14,203			$17,161		$(212)		$31,152			$7,134	$38,286

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions)
	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
(unaudited)
Operating revenues:
Electric	$1,395	$1,264	$3,786	$3,362
Natural gas	215	216	739	800
Total operating revenues	1,610	1,480	4,525	4,162
Operating expenses:
Cost of electric fuel and purchased power	168	135	397	314
Cost of natural gas	43	44	155	175
Operation and maintenance	438	451	1,268	1,294
Regulatory disallowances, net	(104)	—	(104)	—
Depreciation and amortization	353	334	1,028	977
Franchise fees and other taxes	137	116	379	324
Total operating expenses	1,035	1,080	3,123	3,084
Operating income	575	400	1,402	1,078
Other income, net	24	32	86	103
Interest income	1	—	5	2
Interest expense	(148)	(141)	(447)	(415)
Income before income taxes	452	291	1,046	768
Income tax (expense) benefit	(76)	33	(184)	12
Net income/Earnings attributable to common shares	$376	$324	$862	$780

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pretaxamount	Income tax(expense) benefit	Net-of-taxamount
(unaudited)
	Three months ended September 30, 2026 and 2025
2026:
Net income/Comprehensive income	$452	$(76)	$376
2025:
Net income/Comprehensive income	$291	$33	$324
	Nine months ended September 30, 2026 and 2025
2026:
Net income/Comprehensive income	$1,046	$(184)	$862
2025:
Net income/Comprehensive income	$768	$12	$780

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	September 30,	December 31,
	2026	2025(1)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$2	$7
Accounts receivable – trade, net	1,009	809
Accounts receivable – other, net	90	92
Due from unconsolidated affiliates	6	1
Income taxes receivable, net	44	30
Inventories	255	267
Prepaid expenses	179	121
Regulatory assets	258	433
Greenhouse gas allowances	29	28
Other current assets	37	18
Total current assets	1,909	1,806
Other assets:
Regulatory assets	2,298	1,953
Greenhouse gas allowances	312	286
Nuclear decommissioning trusts	891	899
Right-of-use assets – operating leases	972	1,047
Wildfire fund	226	246
Other long-term assets	123	141
Total other assets	4,822	4,572
Property, plant and equipment:
Property, plant and equipment	36,259	35,033
Less accumulated depreciation and amortization	(9,274)	(8,729)
Property, plant and equipment, net	26,985	26,304
Total assets	$33,716	$32,682

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	September 30,	December 31,
	2026	2025(1)
(unaudited)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current liabilities:
Short-term debt	$191	$531
Accounts payable – trade	698	712
Accounts payable – other	50	42
Due to unconsolidated affiliates	46	59
Interest payable	128	94
Accrued compensation and benefits	140	174
Regulatory liabilities	29	3
Current portion of long-term debt and finance leases	52	798
Greenhouse gas obligations	29	28
Asset retirement obligations	114	107
Other current liabilities	390	273
Total current liabilities	1,867	2,821
Long-term debt and finance leases	11,141	10,081
Deferred credits and other liabilities:
Regulatory liabilities	3,149	2,960
Greenhouse gas obligations	197	137
Pension obligation, net of plan assets	26	19
Deferred income taxes	3,459	3,286
Asset retirement obligations	755	746
Deferred credits and other	1,627	1,699
Total deferred credits and other liabilities	9,213	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	9,841	9,279
Accumulated other comprehensive income (loss)	(6)	(6)
Total shareholder’s equity	11,495	10,933
Total liabilities and shareholder’s equity	$33,716	$32,682

SAN DIEGO GAS & ELECTRIC COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Nine months ended September 30,
	2026	2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$862	$780
Adjustments to reconcile net income to net cash provided by operating activities:
Regulatory disallowances, net	(104)	—
Depreciation and amortization	1,028	977
Deferred income taxes and investment tax credits	71	(26)
Bad debt expense	46	39
Other	22	(1)
Net change in working capital components	(18)	(321)
Changes in noncurrent assets and liabilities, net	(1)	(105)
Net cash provided by operating activities	1,906	1,343
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(1,599)	(1,811)
Purchases of nuclear decommissioning trust assets	(752)	(672)
Proceeds from sales of nuclear decommissioning trust assets	772	709
Other	9	12
Net cash used in investing activities	(1,570)	(1,762)
CASH FLOWS FROM FINANCING ACTIVITIES
Common dividends paid	(300)	—
Issuances of debt (maturities greater than 90 days)	1,096	848
Payments on debt (maturities greater than 90 days) and finance leases	(787)	(32)
Decrease in short-term debt, net	(340)	(390)
Debt issuance costs	(10)	(7)
Net cash (used in) provided by financing activities	(341)	419
Decrease in cash and cash equivalents	(5)	—
Cash and cash equivalents, January 1	7	—
Cash and cash equivalents, September 30	$2	$—
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	$406	$355
Income tax payments, net of refunds	120	23
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures for PP&E	$193	$206
Increase in finance lease obligations capitalized to PP&E	10	8

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 September 30, 2026
Balance at June 30, 2026	$1,660		$9,765		$(6)	$11,419
Net income		376		376
Common stock dividends declared ($2.57/share)		(300)		(300)
Balance at September 30, 2026	$1,660		$9,841		$(6)	$11,495
	Three months ended September 30, 2025
Balance at June 30, 2025	$1,660		$9,372		$(12)	$11,020
Net income		324		324
Balance at September 30, 2025	$1,660		$9,696		$(12)	$11,344
	Nine months ended September 30, 2026
Balance at December 31, 2025	$1,660		$9,279		$(6)	$10,933
Net income		862		862
Common stock dividends declared ($2.57/share)		(300)		(300)
Balance at September 30, 2026	$1,660		$9,841		$(6)	$11,495
	Nine months ended September 30, 2025
Balance at December 31, 2024	$1,660		$8,916		$(12)	$10,564
Net income		780		780
Balance at September 30, 2025	$1,660		$9,696		$(12)	$11,344

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions)
	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
(unaudited)
Operating revenues	$1,171	$1,181	$4,086	$4,469
Operating expenses:
Cost of natural gas	153	182	460	749
Operation and maintenance	582	623	1,822	2,002
Regulatory disallowances	309	—	309	—
Depreciation and amortization	276	257	825	750
Franchise fees and other taxes	73	74	226	215
Gain on sale	(16)	—	(16)	—
Total operating expenses	1,377	1,136	3,626	3,716
Operating (loss) income	(206)	45	460	753
Other income (expense), net	45	(3)	129	37
Interest income	1	2	4	5
Interest expense	(102)	(93)	(303)	(272)
(Loss) income before income taxes	(262)	(49)	290	523
Income tax benefit	115	95	95	51
Net (loss) income	(147)	46	385	574
Preferred deemed dividends	(6)	—	(6)	—
Preferred dividends	—	—	(1)	(1)
(Losses) earnings attributable to common shares	$(153)	$46	$378	$573

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pretaxamount	Income tax benefit (expense)	Net-of-taxamount
(unaudited)
	Three months ended September 30, 2026 and 2025
2026:
Net loss	$(262)	$115	$(147)
Other comprehensive income (loss):
Pension and other postretirement benefits	1	—	1
Total other comprehensive income	1	—	1
Comprehensive loss	$(261)	$115	$(146)
2025:
Net (loss) income	$(49)	$95	$46
Other comprehensive income (loss):
Financial instruments	1	—	1
Pension and other postretirement benefits	7	(2)	5
Total other comprehensive income	8	(2)	6
Comprehensive (loss) income	$(41)	$93	$52
	Nine months ended September 30, 2026 and 2025
2026:
Net income	$290	$95	$385
Other comprehensive income (loss):
Pension and other postretirement benefits	1	—	1
Total other comprehensive income	1	—	1
Comprehensive income	$291	$95	$386
2025:
Net income	$523	$51	$574
Other comprehensive income (loss):
Financial instruments	1	—	1
Pension and other postretirement benefits	10	(2)	8
Total other comprehensive income	11	(2)	9
Comprehensive income	$534	$49	$583

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	September 30,	December 31,
	2026	2025(1)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$1	$14
Accounts receivable – trade, net	563	958
Accounts receivable – other, net	76	61
Due from unconsolidated affiliates	1	8
Inventories	276	294
Regulatory assets	331	328
Greenhouse gas allowances	173	175
Other current assets	131	91
Total current assets	1,552	1,929
Other assets:
Regulatory assets	1,908	1,888
Greenhouse gas allowances	1,302	935
Right-of-use assets – operating leases	125	68
Other long-term assets	665	738
Total other assets	4,000	3,629
Property, plant and equipment:
Property, plant and equipment	32,176	31,078
Less accumulated depreciation and amortization	(9,449)	(8,948)
Property, plant and equipment, net	22,727	22,130
Total assets	$28,279	$27,688

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	September 30,	December 31,
	2026	2025(1)
(unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$76	$903
Accounts payable – trade	571	727
Accounts payable – other	140	161
Due to unconsolidated affiliates	51	35
Accrued compensation and benefits	203	219
Current portion of long-term debt and finance leases	726	529
Greenhouse gas obligations	173	175
Asset retirement obligations	94	98
Other current liabilities	470	536
Total current liabilities	2,504	3,383
Long-term debt and finance leases	8,041	7,619
Deferred credits and other liabilities:
Regulatory liabilities	1,315	1,290
Greenhouse gas obligations	1,104	820
Pension obligation, net of plan assets	18	18
Deferred income taxes	2,435	2,271
Asset retirement obligations	3,118	2,994
Deferred credits and other	551	457
Total deferred credits and other liabilities	8,541	7,850
Commitments and contingencies (Note 13)
Shareholders’ equity:
Preferred stock (5,000,000 and 11,000,000 shares authorized; no shares and 862,043 shares outstanding at September 30, 2026 and December 31, 2025, respectively)	—	22
Common stock (100,000,000 shares authorized; 91,300,000 shares outstanding;no par value)	2,316	2,316
Retained earnings	6,893	6,515
Accumulated other comprehensive income (loss)	(16)	(17)
Total shareholders’ equity	9,193	8,836
Total liabilities and shareholders’ equity	$28,279	$27,688

(1) Derived from audited financial statements.

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Nine months ended September 30,
	2026	2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$385	$574
Adjustments to reconcile net income to net cash provided by operating activities:
Regulatory disallowances	309	—
Depreciation and amortization	825	750
Gain on sale	(16)	—
Deferred income taxes	(81)	(82)
Bad debt expense	51	43
Other	(16)	(10)
Net change in working capital components	24	(110)
Changes in noncurrent assets and liabilities, net	243	261
Net cash provided by operating activities	1,724	1,426
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(1,504)	(1,523)
Proceeds from sale, net of transaction costs	17	—
Net cash used in investing activities	(1,487)	(1,523)
CASH FLOWS FROM FINANCING ACTIVITIES
Retirement of preferred stock	(22)	—
Preferred deemed dividends	(6)	—
Preferred dividends	(1)	(1)
Issuances of debt (maturities greater than 90 days)	1,144	1,090
Payments on debt (maturities greater than 90 days) and finance leases	(923)	(1,069)
(Decrease) increase in short-term debt, net	(427)	74
Other	(15)	(9)
Net cash (used in) provided by financing activities	(250)	85
Decrease in cash and cash equivalents	(13)	(12)
Cash and cash equivalents, January 1	14	12
Cash and cash equivalents, September 30	$1	$—
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest payments, net of amounts capitalized	$240	$222
Income tax payments	29	58
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued capital expenditures for PP&E	$255	$244
Increase in finance lease obligations capitalized to PP&E	4	33
Increase in ARO capitalized to PP&E	29	59

SOUTHERN CALIFORNIA GAS COMPANY
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Dollars in millions)
Preferredstock · Commonstock · Retainedearnings · AOCI · Totalshareholders’equity
(unaudited)
	Three months ended September 30, 2026
Balance at June 30, 2026	$22	$2,316		$7,046		$(17)	$9,367
Net loss			(147)			(147)
Other comprehensive income				1		1
Dividends declared:
Preferred stock ($0.38/share)			—			—
Retirement of preferred stock	(22)					(22)
Preferred deemed dividends			(6)			(6)
Balance at September 30, 2026	$—	$2,316		$6,893		$(16)	$9,193
	Three months ended September 30, 2025
Balance at June 30, 2025	$22	$2,316		$6,377		$(24)	$8,691
Net income			46			46
Other comprehensive income				6	6
Dividends declared:
Preferred stock ($0.38/share)			—			—
Balance at September 30, 2025	$22	$2,316		$6,423		$(18)	$8,743
	Nine months ended September 30, 2026
Balance at December 31, 2025	$22	$2,316		$6,515		$(17)	$8,836
Net income			385			385
Other comprehensive income				1		1
Dividends declared:
Preferred stock ($1.13/share)			(1)			(1)
Retirement of preferred stock	(22)					(22)
Preferred deemed dividends			(6)			(6)
Balance at September 30, 2026	$—	$2,316		$6,893		$(16)	$9,193
	Nine months ended September 30, 2025
Balance at December 31, 2024	$22	$2,316		$5,850		$(27)	$8,161
Net income			574			574
Other comprehensive income				9		9
Dividends declared:
Preferred stock ($1.13/share)			(1)			(1)
Balance at September 30, 2025	$22	$2,316		$6,423		$(18)	$8,743

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