Slide 1: Fourth Quarter 2022 Earnings Results
Fourth Quarter 2022 Earnings Results February 28, 2023
Slide 2: Information Regarding Forward-looking Statements
Information Regarding Forward-looking Statements This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks
Slide 3: Table of Contents
Table of Contents • Executive Summary • Strategy Updates • Business Updates • Financial Updates • Closing Remarks | 3
Slide 4: Executive Summary
Executive Summary Sempra’s North American strategy creates alignment across its business platforms and improves corporate execution and financial performance Sempra California is investing in infrastructure to create an increasingly safe and reliable system, support electrification, and deliver clea
Slide 5: Strategic Focus
Strategic Focus Our Vision, Mission, and Values inform corporate strategy, align business activities, and support the goal of delivering superior financial performance Five Strategic Elements 1. Building positions as a leader in large economic markets 2. Investing in T+D infrastructure with strong,
Slide 6: Growth + Improved Business Mix
1 Growth + Improved Business Mix Since 2017, we have simplified our business model, strengthened our position as a leader in some of North America’s largest markets, and improved financial performance 2017 2022 Adj. Earnings $1.39B2 Adj. Earnings $2.92B2 Sempra Sempra Renewables California Texas LNG
Slide 7: Business Updates
Business Updates • SDG&E completed hardening of Tier 3 HFTD transmission lines • SDG&E received final 2022 Cost of Capital decision • SDG&E + SoCalGas received final 2023-2025 Cost of Capital decision 1,2 • SoCalGas received approval to track costs in first phase of Angeles Link • DOE encouraged Cal
Slide 8: Port Arthur LNG Phase 1
1 Port Arthur LNG Phase 1 VALUE PROPOSITION ✓ Strategically located on Gulf Coast ✓ Access to attractive natural gas supply ✓ 10.5 Mtpa of SPAs under long-term contracts 2 ✓ FERC Order + DOE export permits ✓ SI targeting mid-teens equity return PROJECT DETAILS EPC Contract • $10.5B fixed-price with
Slide 9: Cameron LNG Phase 2
1 Cameron LNG Phase 2 MARKETING OVERVIEW2 100% offtake under HOAs 3 • 49.8% Total, Mitsui, and Japan LNG Investment • 50.2% Sempra Infrastructure back-to-back ▪ PKN ORLEN 4 ▪ Williams PROJECT DETAILS Nameplate Capacity • 6 Mtpa (Train 4) + 1 Mtpa (Debottlenecking) • FERC amendment in process – Envir
Slide 10: Q4 + FY-2022 Financial Results
Q4 + FY-2022 Financial Results Three months ended Years ended December 31, December 31, (Dollars and shares in millions, except EPS) 2022 2021 2022 2021 (Unaudited) GAAP Earnings $ 438 $ 604 $ 2,094 $ 1,254 Impact Associated with Aliso Canyon Litigation and Regulatory Matters – 16 199 1,148 Impact f
Slide 11: FY-2022 Adjusted Earnings Drivers
FY-2022 Adjusted Earnings Drivers $110M ($250M) $160M Higher Tax ($17M) Benefits, $46M ($52M) Primarily $120M Primarily Higher NCI2 $2,915M Related to Increased Deferreds2 Higher Higher Net Primarily Equity $161M SDG&E Interest Increased Earnings + Flow- Expense Investment + New Assets $2,637M Highe
Slide 12: Closing Remarks
Closing Remarks At Sempra, we take a lot of pride in our past performance, and importantly it gives us confidence in our ability to execute our strategy in the future Reporting FY-2022 adjusted EPS of $9.21 compared to FY-2021 adjusted EPS of $8.431 Increased annualized dividend for the 13th consecu
Slide 13: Appendix I
Appendix | @® SEMPRA |13
Slide 14: Western Natural Gas Winter Market Imbalance
Western Natural Gas Winter Market Imbalance California Energy Commission U.S. Department of Energy (DOE) Submittal at Feb-2023 CPUC En Banc1 Energy Information Administration (EIA): Winter 2022-2023 Natural Gas Hub Prices ($/MMbtu) Analysis of High Gas Prices2 • Widespread, below-normal temperatures
Slide 15: Resources + Assistance Programs
Resources + Assistance Programs SDG&E offers numerous programs including bill discounts, payment arrangements, energy efficiency, and shareholder-funded bill assistance and community programs to support its customers and the communities it serves • Acceleration of the disbursement of California • Ar
Slide 16: Resources + Assistance Programs
Resources + Assistance Programs SoCalGas is supporting customers through numerous programs including bill discounts, payment arrangements, energy efficiency, and shareholder-funded bill assistance and community programs • Acceleration of the disbursement of California • Arrearage Management Program
Slide 17: 2022 Sustainability Highlights
2022 Sustainability Highlights Recognized as a leader in sustainable business practices with over 100 ESG awards • Strengthened governance with a 91% independent board leadership across a diverse and cross-disciplined set of backgrounds + 55% women and/or people of color • Affirmed sustainability pr
Slide 18: Sempra California | Key Metrics
Sempra California | Key Metrics SDG&E SOCALGAS 2023 Authorized Capital Structure + Rates of Return1 • CPUC: 52.00% / 9.95% Equity Layer / ROE • CPUC: 52.00% / 9.80% • FERC: 10.60%2 Preferred Equity • CPUC: 2.75% / 6.22% • CPUC: 2.40% / 6.00% • CPUC: 45.25% / 4.05% Debt • CPUC: 45.60% / 4.07% • FERC:
Slide 19: Sempra Texas | Oncor Key Metrics
1 Sempra Texas | Oncor Key Metrics ONCOR Equity Layer / ROE2 Requested 45% / 10.3% (Authorized 42.5% / 9.8%) Debt2 Requested 55% (Authorized 57.5%) Test Year 2021 (historical)3 4 Effective Period Estimated 2023-2026 Rate Review Cost of capital, cost of service (O&M), prudency review for new assets i
Slide 20: Sempra Infrastructure Growth Pipeline
Sempra Infrastructure Growth Pipeline 1 LNG + NET-ZERO SOLUTIONS2 Commentary Status ECA LNG Phase 13 • COD expected summer 2025 Construction (~3 Mtpa) Cameron LNG Phase 2 • Targeting online in stages prior to Cameron LNG Train 4 Train 1 – 3 Debottlenecking 4 • MOU : Entergy Louisiana Development (~1
Slide 21: Appendix II Business Unit Earnings
Appendix II Business Unit Earnings | 21
Slide 22: Sempra California | SDG&E
Sempra California | SDG&E Three months ended Years ended December 31, December 31, (Dollars in millions) 2022 2021 2022 2021 (Unaudited) SDG&E GAAP Earnings $ 234 $ 216 $ 915 $ 819 Q4-2022 earnings are higher than Q4-2021 earnings primarily due to: • $8M higher CPUC base operating margin, net of ope
Slide 23: Sempra California | SoCalGas
Sempra California | SoCalGas Three months ended Years ended December 31, December 31, (Dollars in millions) 2022 2021 2022 2021 (Unaudited) SoCalGas GAAP Earnings (Losses) $ 260 $ 198 $ 599 $ (427) Impact Associated with Aliso Canyon Litigation and Regulatory Matters – 16 199 1,148 SoCalGas Adjusted
Slide 24: Sempra Texas Utilities
Sempra Texas Utilities Three months ended Years ended December 31, December 31, (Dollars in millions) 2022 2021 2022 2021 (Unaudited) Sempra Texas Utilities GAAP Earnings $ 132 $ 137 $ 736 $ 616 Q4-2022 earnings are lower than Q4-2021 earnings primarily due to lower equity earnings from Oncor Holdin
Slide 25: Sempra Infrastructure
Sempra Infrastructure Three months ended Years ended December 31, December 31, (Dollars in millions) 2022 2021 2022 2021 (Unaudited) Sempra Infrastructure GAAP (Losses) Earnings $ (82) $ 263 $ 310 $ 682 Impact from Foreign Currency and Inflation on our Monetary Positions in Mexico and Associated Und
Slide 26: Parent & Other
Parent & Other Three months ended Years ended December 31, December 31, (Dollars in millions) 2022 2021 2022 2021 (Unaudited) Parent & Other GAAP Losses $ (106) $ (210) $ (466) $ (436) Impact from Foreign Currency and Inflation on our Monetary Positions in Mexico and Associated Undesignated Derivati
Slide 27: Appendix III Non-GAAP Financial Measures
Appendix III Non-GAAP Financial Measures | 27
Slide 28: Adjusted Earnings and Adjusted EPS (Unaudited)
Adjusted Earnings and Adjusted EPS (Unaudited) Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests (NCI)) in 2022 and 2021 as follows: Three months ended December 31, 2022: • $(75)M impact from foreign currency and i
Slide 29: Adjusted Earnings and Adjusted EPS (Unaudited)
Adjusted Earnings and Adjusted EPS (Unaudited) Pretax amount Income tax (benefit)1 Non- expense controlling interests Earnings Pretax amount Income tax expense1 Non- (benefit) controlling interests Earnings (Dollars in millions, except per share amounts; shares in thousands) Three months ended Decem
Slide 30: Adjusted Earnings (Losses) by Business Units
Adjusted Earnings (Losses) by Business Units 1 (Unaudited) Three months ended December 31, 2022 (Dollars in millions) Sempra Sempra Sempra SDG&E SoCalGas California Texas Utilities Infrastructure Parent & Other Total Sempra GAAP Earnings (Losses) $ 234 $ 260 $ 494 $ 132 $ (82) $ (106) $ 438 Impact f
Slide 31: 2017 Adjusted Earnings and Adjusted EPS (Unaudited)
2017 Adjusted Earnings and Adjusted EPS (Unaudited) Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, NCI) in 2017 as follows: In the year ended December 31, 2017: • $(25)M impact from foreign currency and inflation on our monetary positio
Slide 32: Adjusted Earnings (Losses) by Business Units
Adjusted Earnings (Losses) by Business Units 1 (Unaudited) Year ended December 31, 2022 Sempra Parent & Sempra Texas Sempra Sempra Other (Dollars in millions) SDG&E SoCalGas California Utilities Infrastructure excluding P&O (P&O) Total Sempra GAAP Earnings (Losses) $ 915 $ 599 $ 1,514 $ 736 $ 310 $
Slide 33: 2022 and 2017 Adjusted Earnings and Adjusted EPS (Unaudited)
2022 and 2017 ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Income tax Non- Income tax Non- Pretax (benefit) controlling Pretax expense controlling amount expense 1 interests Earnings amount (benefit)1 interests Earnings (Dollars in millions, except per share amounts; shares in thousands) Year ende
Slide 34: Appendix IV Glossary
Appendix IV Glossary | 34
Slide 35: Defined Terms
Defined Terms AFUDC allowance for funds used during construction ADIA Black Silverback ZC 2022 LP (assignee of Black River B 2017 Inc.), a wholly owned affiliate of Abu Dhabi Investment Authority Bechtel Bechtel Energy Inc. (formerly known as Bechtel Oil, Gas and Chemicals, Inc.) Cameron Total, Mits
Slide 36: Defined Terms Continued
Defined Terms Continued FTA Free Trade Agreement GAAP generally accepted accounting principles in the United States of America GRC general rate case HFTD high fire threat district HOA heads of agreement IEnova Infraestructura Energética Nova, S.A.P.I. de C.V. IMG Infraestructura Marina del Golfo INE
Slide 37: Defined Terms Continued
Defined Terms Continued RWE RWE Supply & Trading SAIDI System Average Interruption Duration Index (non-storm) SB California Senate Bill SDG&E San Diego Gas & Electric Company SEC U.S. Securities and Exchange Commission SI Sempra Infrastructure SI Partners Sempra Infrastructure Partners, LP SoCalGas