Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 163

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 163
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 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 7 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.

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Table of Contents

Equity Earnings

In the three months ended June 30, 2025 compared to the same period in 2024, Sempra’s equity earnings decreased by $40 million (9%) to $393 million primarily due to:

▪$51 million at IMG due to income tax expense in 2025 compared to an income tax benefit in 2024 primarily from foreign currency and inflation effects

▪$5 million at TAG Norte due to income tax expense in 2025 compared to an income tax benefit in 2024 primarily from foreign currency and inflation effects offset by foreign currency gains in 2025 compared to foreign currency losses in 2024

Offset by:

▪$10 million at Cameron LNG JV primarily from higher maintenance revenues and lower interest expense

▪$7 million at Oncor Holdings driven by:

◦overall higher revenues primarily attributable to:

•rate updates to reflect increases in invested capital

•increase due to Oncor’s SRP and the establishment of the UTM

•customer growth

Offset by:

•lower customer consumption primarily attributable to weather

Offset by:

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

◦higher O&M

In the six months ended June 30, 2025 compared to the same period in 2024, Sempra’s equity earnings decreased by $63 million (8%) to $718 million primarily due to:

▪$50 million at IMG due to income tax expense in 2025 compared to an income tax benefit in 2024 primarily from foreign currency and inflation effects

▪$30 million at Oncor Holdings driven by:

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

◦higher O&M

Offset by:

◦overall higher revenues primarily attributable to:

•rate updates to reflect increases in invested capital

•customer growth

•increase due to Oncor’s SRP and the establishment of the UTM

•higher customer consumption primarily attributable to weather

Offset by:

•decreases in transmission billing units

Offset by:

▪$17 million at Cameron LNG JV