SEMPRA

Sempra has completed the sale of a 45% equity interest in Sempra Infrastructure Partners, LP to entities owned by affiliates of Kohlberg Kravis Roberts & Co. L.P. and Canada Pension Plan Investment Board for $4.56 billion in cash, with additional payments to be made via promissory notes. The company anticipates a pre-tax gain on sale between $2.80 billion and $3.30 billion. Concurrently, Sempra announced management changes: Justin C. Bird will become Executive Vice President and Chief Financial Officer, while Karen L. Sedgwick will assume the role of Chief Executive Officer of Southern California Gas Company, both effective November 13, 2026.

Sempra reported strong second-quarter 2026 financial results, with GAAP earnings of $796 million ($1.21 per diluted share) and adjusted earnings of $762 million ($1.16 per diluted share), significantly higher than the prior year. The company affirmed its full-year 2026 and 2027 adjusted EPS guidance and its long-term EPS growth rate of 7% to 9%. Sempra invested over $6 billion in capital expenditures in the first half of 2026 as part of its record $65 billion five-year capital plan. Strategic initiatives, including the sale of a 45% equity interest in Sempra Infrastructure Partners to KKR and the sale of Ecogas México, are progressing as planned.

Sempra has appointed Justin C. Bird as its new Executive Vice President and Chief Financial Officer. This change is effective on or around the closing of the company's planned sale of a portion of its equity interest in Sempra Infrastructure Partners, expected in Q3 2026. Mr. Bird, who has over two decades of experience within Sempra, will succeed Karen L. Sedgwick, who has been appointed CEO and President of Southern California Gas Company, a Sempra subsidiary.

Sempra's subsidiaries, San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), have concurrently filed their 2028 General Rate Case (GRC) applications with the California Public Utilities Commission (CPUC). They are requesting approval for test year revenue requirements for 2028 and attrition year adjustments through 2031. SDG&E is seeking $3,760 million for 2028, while SoCalGas is requesting $5,096 million for the same year. These requests are subject to CPUC approval, with a proposed decision expected by the end of 2027 and new rates effective January 2028.

Sempra announced the closing of its public offering of $1 billion aggregate principal amount of Floating Rate Notes due 2028. The company received approximately $998.5 million in proceeds after deducting underwriting discounts. These notes will bear interest at Compounded SOFR plus 0.670% per annum, with interest payable quarterly starting October 7, 2026, and will mature on January 7, 2028.

Southern California Gas Company, an indirect subsidiary of Sempra, successfully closed its previously announced public offering of $650 million aggregate principal amount of 5.900% First Mortgage Bonds, Series FFF, due 2056. The company received proceeds of 98.661% of the principal amount after deducting underwriting discounts, with estimated offering expenses of approximately $1.4 million. Interest on the bonds will be paid semiannually, beginning December 1, 2026.

Southern California Gas Company, an indirect subsidiary of Sempra, entered into an underwriting agreement to issue and sell $650,000,000 aggregate principal amount of its 5.900% First Mortgage Bonds, Series FFF, due 2056. The bonds were offered at a public offering price of 99.536% of the principal amount. This registered public offering was conducted with BNP Paribas Securities Corp., CIBC World Markets Corp., Mizuho Securities USA LLC, and Wells Fargo Securities, LLC as representatives of the underwriters.

Sempra reported a significant increase in net income and diluted EPS for the first quarter of 2026, reaching $1,150 million and $1.58 respectively. This improvement occurred despite a slight decrease in total consolidated revenues. The company also demonstrated strong operating cash flow, which rose to $1,809 million. While San Diego Gas & Electric Company saw an increase in both revenues and net income, Southern California Gas Company experienced a decline in both metrics.

Sempra reported strong first-quarter 2026 financial results, with GAAP earnings increasing to $1.04 billion, or $1.58 per diluted share, and adjusted earnings reaching $991 million, or $1.51 per diluted share. The company invested approximately $3 billion in capital expenditures and affirmed its full-year 2026 and 2027 adjusted EPS guidance ranges. Key operational advancements include the approval of Oncor's base rate settlement in Texas and continued progress on the divestment of Sempra Infrastructure Partners and Ecogas México.

Sempra's subsidiary, Oncor Electric Delivery Company LLC, received approval from the Public Utility Commission of Texas for a comprehensive base rate review. The order approves an annual revenue requirement of approximately $6.97 billion, an 8.7% increase over adjusted annualized revenues. This includes an improved authorized return on equity of 9.75% and an increased self-insurance reserve. Oncor anticipates positive impacts on its future earnings, cash flow, and credit metrics.