Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 47

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 47
---
icali, Chihuahua and La Laguna-Durango, Mexico. We expect to complete the sale in the second or third quarter of 2026. As a result of satisfying all applicable criteria, we classified Ecogas’ assets and liabilities as held for sale and ceased depreciation.In connection with classifying Ecogas as held for sale, we recognized $38 million in Income Tax Expense on Sempra’s Condensed Consolidated Statements of Operations in the three months and six months ended June 30, 2025 for a Mexican deferred income tax liability related to the excess of carrying value over the tax basis (outside basis difference). Since this $38 million ($26 million after noncontrolling interests) of Mexican income tax expense on our outside basis difference is based on current carrying value, foreign exchange rates and inflation at June 30, 2025, this amount could change in future periods until the date of sale.

55

Table of Contents

We summarize the carrying amounts of the major classes of assets and related liabilities classified as held for sale in the following table.ASSETS HELD FOR SALE(Dollars in millions)June 30, 2025Cash and cash equivalents$1 Other current assets26 Property, plant and equipment, net241 Other noncurrent assets5 Total assets held for sale$273 Current liabilities$16 Noncurrent liabilities21 Total liabilities held for sale(1)$37 (1)    Included in Other Current Liabilities on the Sempra Condensed Consolidated Balance Sheet. At June 30, 2025, $55 million of cumulative foreign currency translation losses related to Ecogas is included in AOCI.We considered the estimated fair value of Ecogas, less costs to sell, and determined that no adjustment to carrying value was required. In estimating fair value, we used a discounted cash flow valuation technique. In the event that the estimated sales price, less transaction costs, is less than the carrying value, or updated market information indicates fair value may be less than carrying value, we would recognize a loss in our results of operations at that time.Sale of a Portion of our Equity Interest in SI PartnersSI Partners owns non-U.S.-utility energy infrastructure assets, including LNG and natural gas infrastructure in the U.S. and Mexico and renewable energy, liquid petroleum gas and refined products infrastructure in Mexico.

On March 28, 2025, we issued a notice to SI Partners’ minority partners, KKR Pinnacle and ADIA,