Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 349

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 349
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, 2025 compared to the same period in 2024, losses were $362 million compared to earnings of $652 million primarily due to:

▪$731 million income tax expense in 2025 as a result of management’s decision to classify SI Partners and Ecogas as held for sale, comprised of the following:

◦$705 million income tax expense to adjust deferred income tax liabilities related to outside basis differences in our investment in SI Partners

◦$26 million income tax expense due to the recognition of a deferred tax liability on our outside basis difference in Ecogas

▪$302 million unfavorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $122 million unfavorable impact in 2025 compared to a $180 million favorable impact in 2024

▪$26 million unfavorable impact related to a customer’s early termination of firm transportation agreements, including interest expense

▪$17 million from TdM driven by lower volumes and lower power prices and unrealized losses in 2025 compared to unrealized gains in 2024 on commodity derivatives due to changes in power prices

▪$16 million lower income tax benefit primarily from outside basis differences

▪$9 million interest expense from unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project

Offset by:

▪$26 million higher revenues driven by satisfaction of performance obligations related to customer payments received in advance from a contract modification in December 2024 on an LNG storage and regasification agreement

▪$22 million from asset and supply optimization driven by higher optimization of transport and storage contracts and higher LNG diversion fees offset by higher unrealized losses on commodity derivatives due to changes in natural gas prices

▪$12 million higher net interest income from a change in the fair value of the Support Agreement and higher capitalization of interest expense in 2025 from projects under construction

▪$7 million higher revenues due to the commencement of commercial operations at the Topolobampo marine terminal in June 2024

99

Parent and Other

In the three months ended September 30, 2025 compared to the same period in 2024, the decrease in losses of $81 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 management’s decision to classify SI Partners as