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 (Q3) and nine months (YTD) ended September 30, 2026 compared to the same periods 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 September 30, 2026 compared to the same period in 2025, the decrease in earnings of $147 million (40%) was primarily due to:

▪$149 million charge in 2026 from regulatory disallowances, net, related to prior years, which we discuss in Note 4 of the Notes to the Condensed Consolidated Financial Statements

▪$29 million lower income tax benefits primarily from flow-through items, including impacts from the election in 2025 to accelerate self-developed software deductions

▪$12 million higher net interest expense

▪$8 million lower net regulatory interest income

▪$38 million higher CPUC base operating margin, net of operating expenses and a $2 million charge in 2026 from regulatory disallowances, net

▪$8 million higher electric transmission margin

In the nine months ended September 30, 2026 compared to the same period in 2025, the decrease in earnings of $113 million (8%) was primarily due to:

▪$149 million charge in 2026 from regulatory disallowances, net, related to prior years

▪$46 million higher net interest expense

▪$34 million lower income tax benefits primarily from flow-through items

▪$14 million lower AFUDC equity

▪$13 million lower net regulatory interest income

▪$97 million higher CPUC base operating margin, net of operating expenses and a $2 million charge in 2026 from regulatory disallowances, net, and including $47 million recognition of regulatory revenue reflecting returns on approved WMP capital projects resulting from the 2024 GRC Track 2 FD

▪$25 million charge in 2025 from disallowed regulatory recovery of COVID-19 costs

▪$25 million higher electric transmission margin, including the favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

Sempra Texas Utilities

In the three months ended September 30, 2026 compared to the same period in 2025, the increase in earnings of $154 million (50%) was primarily due to higher equity earnings from Oncor Holdings driven by:

▪overall higher revenues primarily attributable to:

◦new base rates implemented in June 2026

◦increase due to the UTM and SRP

◦higher customer consumption primarily attributable to weather

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

▪higher O&M

In the nine months ended September 30, 2026 compared to the same period in 2025, the increase in earnings of $317 million (48%) was primarily due to higher equity earnings from Oncor Holdings driven by:

▪overall higher revenues primarily attributable to:

◦increase due to the UTM and SRP

◦new base rates implemented in June 2026

◦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

◦rate updates to reflect increases in invested capital

◦higher customer consumption primarily attributable to weather

◦customer growth

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

▪higher O&M

In the three months ended September 30, 2026 compared to the same period in 2025, earnings were $346 million compared to losses of $580 million primarily due to:

▪$703 million from $2 million net income tax expense in 2026 compared to $705 million income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$714 million from $9 million income tax benefit in 2026 compared to $705 million income tax expense in 2025 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

◦$11 million income tax expense in 2026 related to a Mexican deferred income tax liability on our outside basis difference in Ecogas

▪$98 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives, comprised of a $65 million favorable impact in 2026 compared to a $33 million unfavorable impact in 2025

▪$97 million gain on the sale of Ecogas in August 2026, excluding the effects of foreign currency hedges

▪$32 million lower depreciation expense as a result of classifying SI Partners as held for sale in September 2025

▪$26 million unfavorable impact in 2025 related to a customer’s early termination of firm transportation agreements, impacting revenue and interest expense

▪$17 million lower interest expense from $16 million unrealized gains in 2026 compared to $1 million unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project

▪$15 million lower O&M from changes in provisions for expected credit losses

▪$50 million from asset and supply optimization driven by higher unrealized losses on commodity derivatives due to changes in natural gas prices and lower optimization of transport and storage contracts

▪$13 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 nine months ended September 30, 2026 compared to the same period in 2025, earnings were $838 million compared to losses of $362 million primarily due to:

▪$784 million from $53 million net income tax benefit in 2026 compared to $731 million income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$768 million from $63 million income tax benefit in 2026 compared to $705 million income tax expense in 2025 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

◦$16 million from $10 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

▪$137 million favorable impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives, comprised of a $13 million favorable impact in 2026 compared to a $124 million unfavorable impact in 2025

▪$105 million lower depreciation expense as a result of classifying SI Partners and Ecogas as held for sale in September 2025 and June 2025, respectively

▪$97 million gain on the sale of Ecogas in August 2026, excluding the effects of foreign currency hedges

▪$42 million from asset and supply optimization driven by unrealized gains in 2026 compared to unrealized losses in 2025 on commodity derivatives due to changes in natural gas prices

▪$26 million unfavorable impact in 2025 related to a customer’s early termination of firm transportation agreements, impacting revenue and interest expense

▪$17 million lower interest expense from $8 million unrealized gains in 2026 compared to $9 million unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project

▪$14 million lower O&M from changes in provisions for expected credit losses

▪$37 million lower revenues driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025

▪$23 million higher income tax expense primarily due to changes in tax allocations between Sempra Infrastructure and Parent and other

Parent and Other

In the three months ended September 30, 2026 compared to the same period in 2025, the increase in losses of $133 million was primarily due to:

▪$191 million net income tax benefit in 2025 from changes to a valuation allowance against certain tax credit carryforwards offset by changes in state income tax apportionment as a result of classifying SI Partners as held for sale

▪$22 million income tax benefit in 2025 from the impacts of the OBBBA

▪$11 million unfavorable impact from $8 million net investment losses in 2026 compared to $3 million net investment gains in 2025 on dedicated assets in support of our employee nonqualified benefit plans and deferred compensation plan

▪$11 million preferred deemed dividends related to the notice of redemption of Sempra’s series C preferred stock in September 2025

▪$7 million preferred dividends in 2025 prior to the redemption of Sempra’s series C preferred stock in October 2025

In the nine months ended September 30, 2026 compared to the same period in 2025, the increase in losses of $138 million was primarily due to:

▪$191 million net income tax benefit in 2025 from changes to a valuation allowance against certain tax credit carryforwards offset by changes in state income tax apportionment as a result of classifying SI Partners as held for sale

▪$37 million higher net interest expense

▪$22 million lower net investment gains on dedicated assets in support of our employee nonqualified benefit plans and deferred compensation plan

▪$22 million income tax benefit in 2025 from the impacts of the OBBBA

▪$29 million preferred dividends in 2025 prior to the redemption of Sempra’s series C preferred stock in October 2025

▪$19 million higher income tax benefit from changes in tax allocations between Sempra Infrastructure and Parent and other

▪$11 million preferred deemed dividends related to the notice of redemption of Sempra’s series C preferred stock in September 2025

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 through the completion of its sale in August 2026. 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 September 30, 2026 compared to the same period in 2025, Sempra’s natural gas revenues decreased by $16 million (1%) driven by Sempra California, which included:

▪$43 million lower revenues from a $21 million credit in 2026 compared to a $22 million cost in 2025 for the non-service components of net periodic benefit cost, which are fully offset in other income, net

▪$27 million decrease in cost of natural gas sold, which we discuss below

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

▪$46 million higher regulatory revenues from the election in 2025 to accelerate self-developed software deductions, which are fully offset in income tax expense

▪$14 million higher CPUC-authorized base revenues

▪$13 million higher revenues from incremental and balanced capital projects

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s cost of natural gas decreased by $31 million (15%) driven by Sempra California, which included:

▪$18 million lower average natural gas prices

▪$9 million lower volumes driven by weather

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s natural gas revenues decreased by $459 million (9%) driven by Sempra California, which included:

▪$303 million decrease in cost of natural gas sold, which we discuss below

▪$190 million lower regulatory revenues associated with refundable programs, which are fully offset in O&M

▪$88 million lower revenues from a $67 million credit in 2026 compared to a $21 million cost in 2025 for the non-service components of net periodic benefit cost, which are fully offset in other income, net

▪$86 million higher CPUC-authorized base revenues

▪$29 million lower revenues in 2025 from disallowed regulatory recovery of COVID-19 costs

▪$27 million higher regulatory revenues primarily from lower gas repairs tax benefits

▪$20 million higher revenues from incremental and balanced capital projects

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s cost of natural gas decreased by $309 million (35%) driven by Sempra California, which included:

▪$197 million lower average natural gas prices

▪$106 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 September 30, 2026 compared to the same period in 2025, Sempra’s electric revenues increased by $131 million (10%) driven by Sempra California, which included:

▪$35 million higher regulatory revenues from lower ITCs from standalone energy storage projects, which are fully offset in income tax expense

▪$33 million increase in cost of electric fuel and purchased power, which we discuss below

▪$32 million higher revenues from incremental and balanced capital projects, including $6 million recognition of regulatory revenue reflecting returns on approved WMP capital projects resulting from the 2024 GRC Track 2 FD

▪$17 million higher CPUC-authorized base revenues

▪$15 million higher revenues from transmission operations

▪$14 million higher regulatory revenues from the election in 2025 to accelerate self-developed software deductions, which are fully offset in income tax expense

▪$15 million lower regulatory revenues associated with refundable programs, which are fully offset in O&M

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s cost of electric fuel and purchased power increased by $32 million (26%) driven by Sempra California, which included:

▪$60 million higher purchased power primarily due to changes in excess capacity sales and tolling agreements and higher utility-owned generation costs

▪$13 million higher purchased power from the California ISO due to higher market prices

▪$40 million higher sales to the California ISO due to higher market prices

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s electric revenues increased by $423 million (13%) driven by Sempra California, which included:

▪$168 million higher revenues from incremental and balanced capital projects, including $65 million recognition of regulatory revenue reflecting returns on approved WMP capital projects resulting from the 2024 GRC Track 2 FD

▪$100 million higher regulatory revenues from lower ITCs from standalone energy storage projects, which are fully offset in income tax expense

▪$83 million increase in cost of electric fuel and purchased power, which we discuss below

▪$41 million higher revenues from transmission operations, including favorable impact from the retroactive application of the June 2026 FERC-approved TO6 settlement

▪$34 million higher CPUC-authorized base revenues

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s cost of electric fuel and purchased power increased by $84 million (32%) driven by Sempra California, which included:

▪$92 million higher purchased power primarily due to changes in excess capacity sales and tolling agreements offset by lower utility-owned generation costs

▪$12 million lower sales to the California ISO due to lower market prices

▪$20 million lower purchased power from the California ISO due to lower market prices

Energy-Related Businesses: Revenues and Cost of Sales

(1) Includes net unrealized (gains) losses from undesignated commodity derivatives and foreign currency derivatives.

(2)Includes eliminations of intercompany activity.

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

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s revenues from energy-related businesses decreased by $75 million (14%) primarily due to:

▪$133 million higher unrealized losses on commodity derivatives from asset and supply optimization from contracts to sell natural gas and LNG to third parties

▪$26 million lower revenues driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025

▪$30 million unfavorable impact in 2025 related to a customer’s early termination of firm transportation agreements

▪$18 million higher revenues primarily due to the commencement of commercial operations at Cimarrón Wind in March 2026

▪$16 million from TdM mainly due to higher power prices

▪$12 million higher transportation revenues primarily from higher rates, including $5 million gains in 2026 on foreign currency derivatives as a result of fluctuation of the Mexican peso

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s cost of sales from energy-related businesses increased by $20 million (17%) primarily due to:

▪$65 million driven by higher natural gas purchases related to asset and supply optimization

▪$51 million higher unrealized gains on undesignated commodity derivatives related to the ECA LNG Phase 1 project and PA LNG Phase 1 project

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s revenues from energy-related businesses decreased by $74 million (5%) primarily due to:

▪$108 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:

◦$103 million driven by lower natural gas volumes and lower natural gas prices associated with optimization of transport and storage contracts

◦$12 million primarily from lower diversion fees due to lower natural gas prices

◦$7 million lower unrealized losses on commodity derivatives

▪$79 million lower revenues driven by a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025

▪$30 million unfavorable impact in 2025 related to a customer’s early termination of firm transportation agreements

▪$29 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

▪$29 million higher transportation revenues primarily from higher rates, including $5 million gains in 2026 on foreign currency derivatives as a result of fluctuation of the Mexican peso

▪$10 million higher revenues from lower amortization of intangible assets as a result of classifying SI Partners as held for sale in September 2025

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s cost of sales from energy-related businesses decreased by $177 million primarily due to:

▪$106 million from $105 million unrealized gains in 2026 compared to a $1 million unrealized loss in 2025 on undesignated commodity derivatives related to the ECA LNG Phase 1 project and PA LNG Phase 1 project

▪$63 million driven by lower natural gas purchases related to asset and supply optimization

(1) Includes eliminations of intercompany activity.

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s O&M decreased by $130 million (10%) primarily due to:

▪$57 million decrease at Sempra California primarily due to:

◦$33 million lower expenses associated with refundable programs, which costs are recovered in revenue

◦$29 million lower non-refundable operating costs

▪$37 million decrease at Parent and other primarily due:

◦$29 million from a $7 million deferred compensation benefit in 2026 compared to $22 deferred compensation expense in 2025

◦$22 million due to non-recoverable insurance claims in 2025

▪$36 million decrease at Sempra Infrastructure primarily due to changes in provisions for expected credit losses

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s O&M decreased by $219 million (6%) primarily due to:

▪$221 million decrease at Sempra California primarily due to:

◦$187 million lower expenses associated with refundable programs, which costs are recovered in revenue

◦$39 million lower non-refundable operating costs

▪$25 million decrease at Parent and other primarily due to:

◦$22 million due to non-recoverable insurance claims in 2025

◦$12 million lower deferred compensation expense

◦$13 million from $8 million compensation expense in 2026 compared to $5 million compensation benefit in 2025

▪ $27 million increase at Sempra Infrastructure due to:

◦$32 million higher purchased services and maintenance expenses

◦$27 million higher development costs and certain non-capitalized expenses from projects under construction

◦$31 million from changes in provisions for expected credit losses

Regulatory Disallowances, Net

As we discuss in Note 4 of the Notes to Condensed Consolidated Financial Statements, Sempra California recorded a charge in the third quarter of 2026 from regulatory disallowances, net, of $205 million ($151 million after tax), of which $202 million ($149 million after tax) relates to prior years and $3 million ($2 million after tax) relates to 2026.

Depreciation and Amortization

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s depreciation and amortization decreased by $30 million (5%) to $632 million primarily due to:

▪$65 million lower at Sempra Infrastructure as a result of classifying SI Partners as held for sale in September 2025

▪$38 million higher at Sempra California due to higher utility plant rate base

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s depreciation and amortization decreased by $90 million (5%) to $1.9 billion primarily due to:

▪$213 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

▪$126 million higher at Sempra California due to higher utility plant rate base

Gain on Sales

In September 2026, Sempra California recognized a $16 million gain on the sale of land, of which $11 million is refundable to ratepayers and offset in natural gas revenues.

In August 2026, Sempra Infrastructure recognized a $198 million gain on the sale of Ecogas, excluding the effects of foreign currency hedges. We discuss this sale in Note 6 of the Notes to Condensed Consolidated Financial Statements.

Other Income, Net

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s other income, net, increased by $9 million (18%) to $58 million primarily due to:

▪$56 million from a $16 million credit in 2026 compared to a $40 million cost in 2025 for the non-service components of net periodic benefit cost primarily at Sempra California

▪$1 million higher net gain from impacts associated with foreign exchange instruments and foreign currency transactions primarily at Sempra Infrastructure, including:

◦$26 million from $25 million gains in 2026 compared to a $1 million loss on foreign currency derivatives as a result of fluctuation of the Mexican peso

◦$22 million losses from the settlement of contingent foreign currency hedges associated with the sale of Ecogas in August 2026

◦$3 million lower gains driven by foreign currency transactional effects

▪$40 million from $18 million investment losses in 2026 compared to $22 million investment gains in 2025 on dedicated assets in support of our employee nonqualified benefit plans and deferred compensation plan at Parent and other

▪$11 million lower net interest income on regulatory balancing accounts at Sempra California

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s other income, net, increased by $26 million (13%) to $225 million primarily due to:

▪$110 million from a $62 million credit in 2026 compared to a $48 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

▪$39 million lower investment gains on dedicated assets in support of our employee nonqualified benefit plans and deferred compensation plan at Parent and other

▪$30 million from $22 million net losses in 2026 compared to $8 million net gains in 2025 from impacts associated with foreign exchange instruments and foreign currency transactions primarily at Sempra Infrastructure, including:

◦$22 million losses from the settlement of contingent foreign currency hedges associated with the sale of Ecogas in August 2026

◦$5 million higher losses on foreign currency derivatives as a result of fluctuation of the Mexican peso

◦$3 million lower gains driven by foreign currency transactional effects

▪$17 million lower net interest income on regulatory balancing accounts at Sempra California

▪$13 million lower AFUDC equity primarily at Sempra California

Interest Income

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s interest income increased by $18 million to $35 million primarily due to 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 nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s interest income increased by $48 million to $113 million driven by Sempra Infrastructure due to:

▪$70 million higher interest from interest bearing cash accounts primarily from the PA LNG Phase 1 project and PA LNG Phase 2 project

▪$18 million change in the fair value of the Support Agreement

Interest Expense

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s interest expense decreased by $105 million (26%) to $298 million primarily due to:

▪$130 million at Sempra Infrastructure primarily from:

◦$117 million from $113 million unrealized gains in 2026 compared to $4 million unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project

◦$16 million interest expense in 2025 related to a customer’s early termination of firm transportation agreements

▪$16 million at Sempra California from higher debt balances from debt issuances

▪$9 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

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s interest expense decreased by $85 million (7%) to $1.1 billion primarily due to:

▪$201 million at Sempra Infrastructure from:

◦$203 million favorable impact in interest expense from interest rate swaps related to the PA LNG Phase 1 project comprised of:

•$119 million from $59 million unrealized gains in 2026 compared to $60 million unrealized losses in 2025

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

◦$16 million interest expense in 2025 related to a customer’s early termination of firm transportation agreements

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

▪$63 million at Sempra California primarily from higher debt balances from debt issuances

▪$53 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

(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.

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s income tax expense decreased by $468 million primarily due to:

▪$506 million from $8 million net income tax expense in 2026 compared to $514 million net income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$714 million from $9 million income tax benefit in 2026 compared to $705 million income tax expense in 2025 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

◦$153 million income tax expense in 2025 for changes in state income tax apportionment

◦$344 million income tax benefit in 2025 from changes to a valuation allowance against certain tax credit carryforwards

◦$17 million income tax expense in 2026 related to a Mexican deferred income tax liability on our outside basis difference in Ecogas

▪$85 million from $40 million income tax benefit in 2026 compared to $45 million income tax expense in 2025 from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives

▪$53 million income tax benefit in 2026 from a charge to regulatory disallowances, net, related to prior years

▪$59 million income tax expense from the gain on sale of Ecogas in August 2026, excluding the effects of foreign currency hedges

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s income tax expense decreased by $520 million primarily due to:

▪$600 million from $48 million net income tax benefit in 2026 compared to $552 million net income tax expense in 2025 as a result of classifying SI Partners and Ecogas as held for sale, comprised of the following:

◦$768 million from $63 million income tax benefit in 2026 compared to $705 million income tax expense in 2025 to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners

◦$153 million income tax expense in 2025 for changes in state income tax apportionment

◦$23 million from $15 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

◦$344 million income tax benefit in 2025 from changes to a valuation allowance against certain tax credit carryforwards

▪$177 million from $20 million income tax benefit in 2026 compared to $157 million income tax expense in 2025 from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives

▪$53 million income tax benefit in 2026 from a charge to regulatory disallowances, net, related to prior years

▪$59 million income tax expense from the gain on sale of Ecogas in August 2026, excluding the effects of foreign currency hedges

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 September 30, 2026 compared to the same period in 2025, Sempra’s equity earnings increased by $196 million (42%) to $668 million primarily due to:

▪$154 million at Oncor Holdings driven by:

◦overall higher revenues primarily attributable to:

•new base rates implemented in June 2026

•increase due to the UTM and SRP

•higher customer consumption primarily attributable to weather

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

◦higher O&M

▪$19 million at IMG due to an income tax benefit in 2026 compared to an income tax expense in 2025 primarily from foreign currency and inflation effects

▪$13 million at TAG Norte due to gains in 2026 from foreign currency derivatives as a result of fluctuation of the Mexican peso

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s equity earnings increased by $392 million (33%) to $1.6 billion primarily due to:

▪ $316 million at Oncor Holdings driven by:

◦overall higher revenues primarily attributable to:

•increase due to the UTM and SRP

•new base rates implemented in June 2026

•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

•rate updates to reflect increases in invested capital

•higher customer consumption primarily attributable to weather

•customer growth

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

◦higher O&M

▪$40 million at IMG due to lower income tax expense primarily from foreign currency and inflation effects and lower interest expense

▪$21 million at TAG Norte due to higher revenues driven by higher rates and gains in 2026 compared to losses in 2025 from foreign currency derivatives as a result of fluctuation of the Mexican peso

Earnings Attributable to Noncontrolling Interests

In the three months ended September 30, 2026 compared to the same period in 2025, Sempra’s earnings attributable to NCI increased by $176 million to $231 million primarily due to an increase in SI Partners subsidiaries’ net income driven by unrealized gains in 2026 compared to unrealized losses in 2025 from interest rate swaps related to the PA LNG Phase 1 project, a gain on the sale of Ecogas in August 2026, excluding the effects of the foreign currency hedges, and foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives.

In the nine months ended September 30, 2026 compared to the same period in 2025, Sempra’s earnings attributable to NCI increased by $376 million to $479 million primarily due to an increase in SI Partners subsidiaries’ net income driven by:

▪unrealized gains in 2026 compared to unrealized losses in 2025 from interest rate swaps 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

▪foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives

▪a favorable impact in interest expense from the termination of interest rate swaps in 2026 related to the PA LNG Phase 1 project

▪a gain on the sale of Ecogas in August 2026, excluding the effects of foreign currency hedges

▪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 were translated into U.S. dollars at average exchange rates for the periods it was included in Sempra’s results of operations prior to its sale in August 2026. 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 nine months ended September 30, 2026 compared to the same periods in 2025, the impact of changes in average foreign currency translation rates on our earnings was $1 million and $2 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 September 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 November 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.