DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity Derivative Volumes Table

The following table summarizes net energy derivative volumes.

NET ENERGY DERIVATIVE VOLUMES

(Quantities in millions)

Commodity

Unit of measure

June 30, 2026

December 31, 2025

Sempra:

Natural gas(1)

MMBtu

534

336

Congestion revenue rights

MWh

SDG&E:

Natural gas

MMBtu

Congestion revenue rights

MWh

SoCalGas:

Natural gas

MMBtu

506

322

(1) At June 30, 2026 and December 31, 2025, excludes 1,461 and 1,016, respectively, related to the disposal group that is classified as held for sale.

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that are not offset because the cash collateral was in excess of liability positions. We discuss the fair value of derivative assets and liabilities in Note 9.


DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	June 30, 2026
	Current assets						Current liabilities
	Other current assets		Assets held for sale		Other long-term assets		Other current liabilities		Liabilities held for sale		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate instruments			$	26					$	—
Foreign exchange instruments			—						(7)
Derivatives not designated as hedging instruments:
Interest rate instruments			173						—
Foreign exchange instruments			1				$	(2)	(3)
Commodity contracts not subject to rate recovery			69						(19)
Associated offsetting commodity contracts			(4)						4
Commodity contracts subject to rate recovery	$	36			$	16	(53)				$	(17)
Associated offsetting commodity contracts	(29)				(6)		29				6
Associated offsetting cash collateral	—				—		9				2
Net amounts presented on the balance sheet	7		265		10		(17)		(25)		(9)
Additional cash collateral for commodity contracts not subject to rate recovery			83						—
Additional cash collateral for commodity contracts subject to rate recovery	29				—		—				—
Total	$	36	$	348	$	10	$	(17)	$	(25)	$	(9)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	3			$	12	$	(9)			$	(4)
Associated offsetting commodity contracts	—				(2)		—				2
Associated offsetting cash collateral	—				—		9				2
Net amounts presented on the balance sheet	3				10		—				—
Additional cash collateral for commodity contracts subject to rate recovery	28				—		—				—
Total	$	31			$	10	$	—			$	—
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	33			$	4	$	(44)			$	(13)
Associated offsetting commodity contracts	(29)				(4)		29				4

Net amounts presented on the balance sheet	4				—		(15)				(9)
Additional cash collateral for commodity contracts subject to rate recovery	1				—		—				—
Total	$	5			$	—	$	(15)			$	(9)


DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	December 31, 2025
	Current assets						Current liabilities
	Other current assets		Assets held for sale		Other long-term assets		Other current liabilities		Liabilities held for sale		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate instruments			$	25					$	—
Foreign exchange instruments			—						(8)
Derivatives not designated as hedging instruments:
Interest rate instruments			242						—
Commodity contracts not subject to rate recovery			9						(66)
Associated offsetting commodity contracts			(5)						5
Commodity contracts subject to rate recovery	$	25			$	11	$	(134)			$	(10)
Associated offsetting commodity contracts	(4)				(2)		4				2
Associated offsetting cash collateral	—				—		68				4
Net amounts presented on the balance sheet	21		271		9		(62)		(69)		(4)
Additional cash collateral for commodity contracts not subject to rate recovery			38						—
Additional cash collateral for commodity contracts subject to rate recovery	23				—		—				—
Total	$	44	$	309	$	9	$	(62)	$	(69)	$	(4)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	4			$	8	$	(12)			$	(5)
Associated offsetting commodity contracts	—				(1)		—				1
Associated offsetting cash collateral	—				—		12				4
Net amounts presented on the balance sheet	4				7		—				—
Additional cash collateral for commodity contracts subject to rate recovery	13				—		—				—
Total	$	17			$	7	$	—			$	—
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	21			$	3	$	(122)			$	(5)
Associated offsetting commodity contracts	(4)				(1)		4				1
Associated offsetting cash collateral	—				—		56				—
Net amounts presented on the balance sheet	17				2		(62)				(4)
Additional cash collateral for commodity contracts subject to rate recovery	10				—		—				—
Total	$	27			$	2	$	(62)			$	(4)

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table

The following table includes the effects of derivative instruments designated as hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI.


HEDGE IMPACTS
(Dollars in millions)
	Pretax gain (loss) recognized in OCI					Pretax gain (loss) reclassified from AOCI into earnings
	Three months ended June 30,					Three months ended June 30,
	2026		2025		Location	2026		2025
Sempra:
Cash flow hedges:
Interest rate instruments	$	2	$	(3)	Interest expense	$	2	$	—
Interest rate instruments	17		(13)		Equity earnings(1)	(1)		(1)
Foreign exchange instruments	—		(5)		Revenues: Energy- related businesses	1		1
					Other income, net	(1)		(1)
Foreign exchange instruments	(1)		(5)		Equity earnings(1)	(1)		1
Fair value hedges:
Foreign exchange instruments	22		(16)		Equity earnings(1)	—		—
Total	$	40	$	(42)		$	—	$	—




	Six months ended June 30,					Six months ended June 30,
	2026		2025		Location	2026		2025
Sempra:
Cash flow hedges:
Interest rate instruments	$	4	$	(6)	Interest expense	$	3	$	2
Interest rate instruments	24		(33)		Equity earnings(1)	—		4
Foreign exchange instruments	2		(10)		Revenues: Energy- related businesses	3		(1)
					Other income, net	(1)		(1)
Foreign exchange instruments	1		(9)		Equity earnings(1)	1		(1)


Fair value hedges:
Foreign exchange instruments	20		(25)		Equity earnings(1)	—		—
Total	$	51	$	(83)		$	6	$	3

(1) Equity earnings at Oncor Holdings and our foreign equity method investees are recognized after tax.

Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table

The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.


UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings				Pretax gain (loss) on derivatives recognized in earnings
		Three months ended June 30,				Six months ended June 30,
	Location	2026		2025		2026		2025
Sempra:
Commodity contracts not subject to rate recovery	Revenues: Energy-related businesses	$	135	$	33	$	235	$	39
Commodity contracts not subject to rate recovery	Energy-related businesses cost of sales	77		(2)		55		(2)
Commodity contracts subject to rate recovery	Cost of natural gas	(8)		(4)		(9)		(20)
Commodity contracts subject to rate recovery	Cost of electric fuel and purchased power	8		1		3		4
Foreign exchange instruments	Other income, net	(40)		—		(31)		—
Interest rate instruments	Interest expense	21		9		32		(56)
Total		$	193	$	37	$	285	$	(35)
SDG&E:
Commodity contracts subject to rate recovery	Cost of electric fuel and purchased power	$	8	$	1	$	3	$	4
SoCalGas:
Commodity contracts subject to rate recovery	Cost of natural gas	$	(8)	$	(4)	$	(9)	$	(20)

Disclosure of Credit Derivatives

The table below presents the aggregate fair value of derivative instruments with credit-risk-related contingent features that are in a net liability position by counterparty where a legal right of offset exists, the collateral posted for such positions, and the additional assets that would be required to be posted as collateral if credit ratings were reduced below investment grade.


CREDIT RISK IMPACTS
(Dollars in millions)
	Sempra				SoCalGas
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Fair value of derivative instruments – net liability	$	66	$	190	$	24	$	47
Offsetting cash collateral	—		56		—		56
Additional cash collateral to be posted	66		189		24		47

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

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