FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at June 30, 2026
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	15	$	4	$	—			$	19
Equity securities	299		4		—				303
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	28		17		—				45
Municipal bonds	—		300		—				300
Other securities	—		264		—				264
Total debt securities	28		581		—				609
Total nuclear decommissioning trusts(2)	342		589		—				931
Short-term investments held in Rabbi Trust	90		—		—				90
Support Agreement, net of related guarantee fees	—		—		38				38



Commodity contracts subject to rate recovery	2		37		13		$	(6)	46
	434		626		51		(6)		1,105
Assets held for sale:
Interest rate instruments	—		199		—		—		199
Foreign exchange instruments	—		1		—		—		1
Commodity contracts not subject to rate recovery	—		42		27		79		148
Total assets held for sale	—		242		27		79		348
Total assets	$	434	$	868	$	78	$	73	$	1,453
Liabilities:

Foreign exchange instruments	$	—	$	2	$	—	$	—	$	2

Commodity contracts subject to rate recovery	13		57		—		(46)		24
	13		59		—		(46)		26
Liabilities held for sale:

Foreign exchange instruments	—		10		—		—		10
Commodity contracts not subject to rate recovery	—		9		10		(4)		15
Total liabilities held for sale	—		19		10		(4)		25
Total liabilities	$	13	$	78	$	10	$	(50)	$	51

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

(2) Excludes receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at December 31, 2025
Sempra:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	9	$	3	$	—			$	12
Equity securities	285		3		—				288
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	28		19		—				47
Municipal bonds	—		300		—				300
Other securities	—		255		—				255
Total debt securities	28		574		—				602
Total nuclear decommissioning trusts(2)	322		580		—				902
Short-term investments held in Rabbi Trust	49		—		—				49
Support Agreement, net of related guarantee fees	—		—		41				41

Commodity contracts subject to rate recovery	2		24		10		$	17	53
	373		604		51		17		1,045
Assets held for sale:
Interest rate instruments	—		267		—		—		267
Commodity contracts not subject to rate recovery	—		8		1		33		42
Total assets held for sale	—		275		1		33		309
Total assets	$	373	$	879	$	52	$	50	$	1,354
Liabilities:
Commodity contracts subject to rate recovery	$	37	$	107	$	—	$	(78)	$	66
Liabilities held for sale:
Foreign exchange instruments	—		8		—		—		8
Commodity contracts not subject to rate recovery	—		10		56		(5)		61
Total liabilities held for sale	—		18		56		(5)		69
Total liabilities	$	37	$	125	$	56	$	(83)	$	135

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

(2) Excludes receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at June 30, 2026
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	15	$	4	$	—			$	19
Equity securities	299		4		—				303
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	28		17		—				45
Municipal bonds	—		300		—				300
Other securities	—		264		—				264
Total debt securities	28		581		—				609
Total nuclear decommissioning trusts(2)	342		589		—				931
Commodity contracts subject to rate recovery	2		—		13		$	26	41
Total assets	$	344	$	589	$	13	$	26	$	972
Liabilities:
Commodity contracts subject to rate recovery	$	13	$	—	$	—	$	(13)	$	—


	Fair value at December 31, 2025
SDG&E:
Assets:
Nuclear decommissioning trusts:
Short-term investments, primarily cash equivalents	$	9	$	3	$	—			$	12
Equity securities	285		3		—				288
Debt securities:
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	28		19		—				47
Municipal bonds	—		300		—				300
Other securities	—		255		—				255
Total debt securities	28		574		—				602
Total nuclear decommissioning trusts(2)	322		580		—				902
Commodity contracts subject to rate recovery	2		—		10		$	12	24
Total assets	$	324	$	580	$	10	$	12	$	926
Liabilities:
Commodity contracts subject to rate recovery	$	17	$	—	$	—	$	(17)	$	—

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

(2) Excludes receivables (payables), net.


RECURRING FAIR VALUE MEASURES
(Dollars in millions)
	Level 1		Level 2		Level 3		Netting(1)		Total
	Fair value at June 30, 2026
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	—	$	37	$	—	$	(32)	$	5
Liabilities:
Commodity contracts subject to rate recovery	$	—	$	57	$	—	$	(33)	$	24

	Fair value at December 31, 2025
SoCalGas:
Assets:
Commodity contracts subject to rate recovery	$	—	$	24	$	—	$	5	$	29
Liabilities:
Commodity contracts subject to rate recovery	$	20	$	107	$	—	$	(61)	$	66

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset.

Recurring Fair Value Measures Level 3 Rollforward

The table below sets forth reconciliations of changes in the fair value of CRRs classified as Level 3 in the fair value hierarchy for Sempra and SDG&E.


LEVEL 3 RECONCILIATIONS(1)
(Dollars in millions)
	Three months ended June 30,
	2026		2025
Balance at April 1	$	10	$	4
Realized and unrealized gains (losses), net	2		(1)
Allocated transmission instruments	3		1
Settlements	(2)		(1)
Balance at June 30	$	13	$	3
Change in unrealized gains (losses) relating to instruments still held at June 30	$	1	$	(1)

	Six months ended June 30,
	2026		2025
Balance at January 1	$	10	$	4
Realized and unrealized gains (losses), net	(1)		(2)
Allocated transmission instruments	6		3
Settlements	(2)		(2)
Balance at June 30	$	13	$	3
Change in unrealized gains (losses) relating to instruments still held at June 30	$	(1)	$	(3)

(1) Excludes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.

Support Agreement. The table below sets forth reconciliations of changes in the fair value of Sempra’s Support Agreement for the benefit of CFIN classified as Level 3 in the fair value hierarchy.


LEVEL 3 RECONCILIATIONS
(Dollars in millions)
	Three months ended June 30,
	2026		2025
Balance at April 1	$	41	$	38
Realized and unrealized gains (losses), net(1)	(1)		3
Settlements	(2)		(2)
Balance at June 30(2)	$	38	$	39
Change in unrealized gains (losses) relating to instruments still held at June 30	$	(1)	$	3

	Six months ended June 30,
	2026		2025
Balance at January 1	$	41	$	25
Realized and unrealized gains (losses), net(1)	1		18
Settlements	(4)		(4)
Balance at June 30(2)	$	38	$	39
Change in unrealized gains (losses) relating to instruments still held at June 30	$	1	$	18

(1) Net realized and unrealized gains are included in Interest Income and net realized and unrealized losses are recognized in Interest Expense on Sempra’s Condensed Consolidated Statements of Operations.

(2) Includes $8 in Other Current Assets and $30 in Other Long-Term Assets at June 30, 2026 on Sempra's Condensed Consolidated Balance Sheet.

Schedule of Fair Value Inputs

For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, are in the following ranges for the years indicated below:


CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS

Settlement year	Price per MWh					Median price per MWh
2026	$	(0.31)	to	$	13.76	$	4.05
2025	(7.38)		to	15.54		0.01

The following table presents information about the significant unobservable inputs used in the valuation of our Level 3 natural gas derivatives at June 30, 2026:


QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENT

	Fair value (in millions)		Valuation technique	Unobservable input	Range					Weighted average
Commodity contracts not subject to rate recovery	$	17	Income approach	Forward natural gas price per MMBtu	$	0.03	to	$	2.41	$	0.40

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The table below sets forth a reconciliation of the change in the fair value of natural gas derivatives classified as Level 3 in the fair value hierarchy.


LEVEL 3 RECONCILIATION
(Dollars in millions)
	Three months ended June 30, 2026
Balance at April 1	$	(51)
Realized and unrealized gains (losses), net(1)	97
Settlements	(29)
Balance at June 30(2)	$	17
Change in unrealized gains (losses) relating to instruments still held at June 30	$	97

	Six months ended June 30, 2026
Balance at January 1	$	(55)
Realized and unrealized gains (losses), net(1)	101
Settlements	(29)
Balance at June 30(2)	$	17
Change in unrealized gains (losses) relating to instruments still held at June 30	$	101

(1) Net realized and unrealized gains and losses are recognized in Revenues: Energy-Related Businesses or Energy-Related Businesses Cost of Sales on the Sempra Condensed Consolidated Statements of Operations.

(2) Includes $27 in Assets Held for Sale and $10 in Liabilities Held for Sale at June 30, 2026 on Sempra’s Condensed Consolidated Balance Sheet.

Fair Value of Financial Instruments

The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets.


FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	Carrying amount		Fair value
			Level 1		Level 2		Level 3		Total
	June 30, 2026
Sempra:

Long-term note receivable(1)	$	379	$	—	$	—	$	372	$	372
Long-term amounts due to unconsolidated affiliates held for sale	506		—		488		—		488
Long-term debt held for sale(2)	9,201		—		8,845		—		8,845
Long-term debt(3)	32,163		—		30,194		—		30,194
SDG&E:
Long-term debt(4)	$	10,150	$	—	$	9,037	$	—	$	9,037
SoCalGas:
Long-term debt(5)	$	8,255	$	—	$	7,845	$	—	$	7,845

	December 31, 2025
Sempra:
Long-term note receivable(1)	$	369	$	—	$	—	$	366	$	366
Long-term amounts due to unconsolidated affiliates held for sale	477		—		463		—		463
Long-term debt held for sale(2)	7,925		—		7,611		—		7,611
Long-term debt(3)	29,867		—		28,282		—		28,282
SDG&E:
Long-term debt(4)	$	9,800	$	—	$	8,810	$	—	$	8,810
SoCalGas:
Long-term debt(5)	$	8,109	$	—	$	7,818	$	—	$	7,818

(1) Before allowances for credit losses of $4 at both June 30, 2026 and December 31, 2025. Excludes unamortized transaction costs of $2 and $3 at June 30, 2026 and December 31, 2025, respectively.

(2) Before reductions of unamortized discount and debt issuance costs of $125 and $132 at June 30, 2026 and December 31, 2025, respectively.

(3) Before reductions of unamortized discount and debt issuance costs of $329 and $305 at June 30, 2026 and December 31, 2025, respectively, and excluding finance lease obligations of $1,264 and $1,293 at June 30, 2026 and December 31, 2025, respectively.

(4) Before reductions of unamortized discount and debt issuance costs of $108 and $97 at June 30, 2026 and December 31, 2025, respectively, and excluding finance lease obligations of $1,159 and $1,176 at June 30, 2026 and December 31, 2025, respectively.

(5) Before reductions of unamortized discount and debt issuance costs of $85 and $78 at June 30, 2026 and December 31, 2025, respectively, and excluding finance lease obligations of $105 and $117 at June 30, 2026 and December 31, 2025, respectively.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details