Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 111

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 111
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 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 held for sale

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

▪$17 million income tax expense in 2024 from changes to a valuation allowance against certain tax credit carryforwards

Offset by: 

▪$78 million income tax expense in 2025 from changes to a valuation allowance against foreign tax credits that were carried forward from the implementation of the TCJA

▪$30 million higher net interest expense

▪$13 million higher income tax expense from the interim period application of an annual forecasted consolidated ETR

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

▪$10 million lower net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan

In the nine months ended September 30, 2025 compared to the same period in 2024, the decrease in losses of $84 million (29%) 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 held for sale

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

▪$17 million income tax expense in 2024 from changes to a valuation allowance against certain tax credit carryforwards

Offset by: 

▪$78 million income tax expense in 2025