Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 115

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 115
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 credit in 2024 for the non-service components of net periodic benefit cost

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

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Three months ended June 30,Six months ended June 30, 2025202420252024SoCalGas:Income tax expense$6 $10 $44 $53 Income before income taxes$91 $141 $572 $543 Effective income tax rate7 %7 %8 %10 %

In the three months ended June 30, 2025 compared to the same period in 2024, SoCalGas’ income tax expense decreased by $4 million (40%) primarily due to lower pretax income.

In the six months ended June 30, 2025 compared to the same period in 2024, SoCalGas’ income tax expense decreased by $9 million (17%) primarily due to higher income tax benefit from flow-through items.

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Table of Contents

CAPITAL RESOURCES AND LIQUIDITY

OVERVIEW

Sempra

Liquidity

We expect to meet our cash requirements through cash flows from operations, unrestricted cash and cash equivalents, borrowings under or supported by our credit facilities, other incurrences of debt which may include issuing debt securities and obtaining term loans, issuing equity securities under our ATM program or other offerings, funding from NCI owners, and selling assets or equity interests in our subsidiaries or development projects. We believe that these cash flow sources, combined with available funds, will be adequate to fund our operations in both the short-term and long-term, including to:

▪finance capital expenditures

▪repay debt

▪fund dividends

▪fund contractual and other obligations and otherwise meet liquidity requirements

▪fund capital contribution requirements

▪fund new business or asset acquisitions

Sempra, SDG&E and SoCalGas currently have reasonable access to the money markets and capital markets and are not currently constrained in their ability to borrow or otherwise raise money at market rates from commercial banks, under existing revolving credit facilities, through public offerings of debt or equity securities (including under our ATM program or other offerings), or through private placements of debt supported by our revolving credit facilities in the case of commercial paper. However, our ability to access these markets or obtain credit from commercial banks