Sempra Energy's 2023 10-K Filing

TL;DR

<b>Sempra Energy filed its 2023 10-K, detailing operations for Sempra Energy, San Diego Gas & Electric Co, and Southern California Gas Co.</b>

AI Summary

SOUTHERN CALIFORNIA GAS CO (SOCGM) filed a Annual Report (10-K) with the SEC on February 27, 2024. Sempra Energy, formerly Sempra Energy, filed its 2023 10-K on February 27, 2024. The filing covers the fiscal year ending December 31, 2023. Key entities include Sempra Energy (Central Index Key: 0001032208), San Diego Gas & Electric Co (0000086521), and Southern California Gas Co (0000092108). Sempra Energy is incorporated in California and operates in the Gas & Other Services industry (SIC 4932). San Diego Gas & Electric Co and Southern California Gas Co are also incorporated in California, operating in Electric & Other Services (SIC 4931) and Natural Gas Transmission (SIC 4922) respectively.

Why It Matters

For investors and stakeholders tracking SOUTHERN CALIFORNIA GAS CO, this filing contains several important signals. This 10-K provides a comprehensive overview of Sempra Energy's financial performance and operational activities for the fiscal year 2023. The filing includes detailed information on its subsidiaries, San Diego Gas & Electric Co and Southern California Gas Co, which are critical to its energy and utility operations.

Risk Assessment

Risk Level: medium — SOUTHERN CALIFORNIA GAS CO shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains significant financial and operational data, it does not inherently signal immediate positive or negative trends without further analysis of the detailed financial statements and disclosures.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-K to identify specific performance trends, risks, and strategic initiatives for Sempra Energy and its subsidiaries.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-27 — Filing Date (Date the 10-K was submitted)
• 0001032208 — Sempra Energy Central Index Key (Identifier for Sempra Energy)
• 0000086521 — San Diego Gas & Electric Co Central Index Key (Identifier for San Diego Gas & Electric Co)
• 0000092108 — Southern California Gas Co Central Index Key (Identifier for Southern California Gas Co)
• 4932 — Sempra Energy SIC Code (Gas & Other Services)
• 4931 — San Diego Gas & Electric Co SIC Code (Electric & Other Services)
• 4922 — Southern California Gas Co SIC Code (Natural Gas Transmission)

Key Players & Entities

• SOUTHERN CALIFORNIA GAS CO (company) — Filer of the 10-K
• SEMPRA CENTRAL INDEX KEY (company) — 0001032208
• SAN DIEGO GAS & ELECTRIC CO (company) — Filer of the 10-K
• SEMPRA ENERGY (company) — Former company name
• MINERAL ENERGY CO (company) — Former company name
• CA (location) — State of incorporation
• 2024-02-27 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.

Key Financial Figures

• $25 — 75% Junior Subordinated Notes Due 2079, $25 par value SREA New York Stock Exchange

Filing Documents

• sre-20231231.htm (10-K) — 9499KB
• sempra-123123xex42.htm (EX-4.2) — 82KB
• sempra-123123xex108.htm (EX-10.8) — 46KB
• sempra-123123xex109.htm (EX-10.9) — 69KB
• sempra-123123xex1010.htm (EX-10.10) — 73KB
• sempra-123123xex1011.htm (EX-10.11) — 73KB
• sempra-123123xex1012.htm (EX-10.12) — 50KB
• sempra-123123xex1034.htm (EX-10.34) — 25KB
• sempra-123123xex1035.htm (EX-10.35) — 25KB
• sempra-123123xex1038.htm (EX-10.38) — 280KB
• sempra-123123xex1039.htm (EX-10.39) — 275KB
• sempra-123123xex1042.htm (EX-10.42) — 281KB
• sempra-123123xex211.htm (EX-21.1) — 5KB
• sempra-123123xex231.htm (EX-23.1) — 2KB
• sempra-123123xex232.htm (EX-23.2) — 2KB
• sempra-123123xex233.htm (EX-23.3) — 2KB
• sempra-123123xex234.htm (EX-23.4) — 2KB
• sempra-123123xex311.htm (EX-31.1) — 9KB
• sempra-123123xex312.htm (EX-31.2) — 9KB
• sempra-123123xex313.htm (EX-31.3) — 9KB
• sempra-123123xex314.htm (EX-31.4) — 9KB
• sempra-123123xex315.htm (EX-31.5) — 9KB
• sempra-123123xex316.htm (EX-31.6) — 9KB
• sempra-123123xex321.htm (EX-32.1) — 5KB
• sempra-123123xex322.htm (EX-32.2) — 4KB
• sempra-123123xex323.htm (EX-32.3) — 5KB
• sempra-123123xex324.htm (EX-32.4) — 5KB
• sempra-123123xex325.htm (EX-32.5) — 5KB
• sempra-123123xex326.htm (EX-32.6) — 5KB
• sempra-123123xex971.htm (EX-97.1) — 38KB
• sempra-123123xex991.htm (EX-99.1) — 1173KB
• sre-20231231_g1.gif (GRAPHIC) — 48KB
• sre-20231231_g10.jpg (GRAPHIC) — 19KB
• sre-20231231_g11.jpg (GRAPHIC) — 28KB
• sre-20231231_g12.jpg (GRAPHIC) — 26KB
• sre-20231231_g13.jpg (GRAPHIC) — 103KB
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• sre-20231231_g2.jpg (GRAPHIC) — 105KB
• sre-20231231_g3.jpg (GRAPHIC) — 76KB
• sre-20231231_g4.jpg (GRAPHIC) — 659KB
• sre-20231231_g5.gif (GRAPHIC) — 1017KB
• sre-20231231_g6.jpg (GRAPHIC) — 332KB
• sre-20231231_g7.jpg (GRAPHIC) — 829KB
• sre-20231231_g8.jpg (GRAPHIC) — 119KB
• sre-20231231_g9.jpg (GRAPHIC) — 26KB
• 0001032208-24-000007.txt (&nbsp;) — 60678KB
• sre-20231231.xsd (EX-101.SCH) — 244KB
• sre-20231231_cal.xml (EX-101.CAL) — 295KB
• sre-20231231_def.xml (EX-101.DEF) — 2016KB
• sre-20231231_lab.xml (EX-101.LAB) — 2531KB
• sre-20231231_pre.xml (EX-101.PRE) — 2312KB
• sre-20231231_htm.xml (XML) — 11327KB

Business

Item 1. Business 11

Risk Factors

Item 1A. Risk Factors 34

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 56

Cybersecurity

Item 1C. Cybersecurity 56

Properties

Item 2. Properties 57

Legal Proceedings

Item 3. Legal Proceedings 57

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 57 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 58

(Reserved)

Item 6. (Reserved) 59

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 59 Overview 59 Results of Operations by Registrant 60 Capital Resources and Liquidity 78 Critical Accounting Estimates 95

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 99

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 101

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 102

Controls and Procedures

Item 9A. Controls and Procedures 102

Other Information

Item 9B. Other Information 106

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 107

Executive Compensation

Item 11. Executive Compensation 107

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 107

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 108

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 108 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 109

Form 10-K Summary

Item 16. Form 10-K Summary 120

Signatures

Signatures 121 Index to Consolidated Financial Statements F-1 Index to Condensed Financial Information of Parent S-1 This combined Form 10-K is separately filed by Sempra, San Diego Gas & Electric Company and Southern California Gas Company. Information contained herein relating to any one of these individual Registrants is filed by such entity on its own behalf. Each such Registrant makes statements herein only as to itself and its consolidated entities and makes no statement whatsoever as to any other entity. You should read this report in its entirety as it pertains to each respective Registrant. No one section of the report deals with all aspects of the subject matter. A separate Part II – Item 8 is provided for each Registrant, except for the Notes to Consolidated Financial Statements, which are combined for all the Registrants. All Items other than Part II – Item 8 are combined for the three Registrants. 2023 Form 10-K | 4 Table of Contents The following terms and abbreviations appearing in this report have the meanings indicated below. GLOSSARY AB California Assembly Bill ADIA Black Silverback ZC 2022 LP (assignee of Black River B 2017 Inc.), a wholly owned affiliate of Abu Dhabi Investment Authority AFUDC allowance for funds used during construction amparo an extraordinary constitutional appeal governed by Articles 103 and 107 of the Mexican Constitution and filed in Mexican federal court AOCI accumulated other comprehensive income (loss) ARO asset retirement obligation ASC Accounting Standards Codification ASEA Agencia de Seguridad, Energa y Ambiente (Mexico's National Agency for Industrial Safety and Environmental Protection) ASR accelerated share repurchase ASU Accounting Standards Update Bcf billion cubic feet Bechtel Bechtel Energy Inc. bps basis points Cameron LNG JV Cameron LNG Holdings, LLC Cameron LNG Phase 1 facility Cameron LNG JV liquefaction facility Cameron LNG Phase 2 project Cameron LNG JV liquefaction expansi

BUSINESS

ITEM 1. BUSINESS OVERVIEW We are a California-based holding company with energy infrastructure investments in North America. Our businesses invest in, develop and operate energy infrastructure, and provide electric and gas services to customers. Sempra was formed in 1998 through a business combination of Enova and PE, the holding companies of our regulated public utilities in California: SDG&E, which began operations in 1881, and SoCalGas, which began operations in 1867. We have since expanded our regulated public utility presence into Texas through our 80.25% interest in Oncor and 50% interest in Sharyland Utilities. Sempra Infrastructure's assets include investments in the U.S. and Mexico with a focus on LNG, energy networks and low carbon solutions. Business Strategy Our mission is to be North America's premier energy infrastructure company. We are primarily focused on transmission and distribution investments, among other areas, that we believe are capable of producing stable cash flows and earnings visibility, with the goals of delivering safe, reliable and increasingly clean forms of energy to customers and increasing shareholder value. DESCRIPTION OF BUSINESS BY SEGMENT Sempra's business activities are organized under the following reportable segments: Sempra California Sempra Texas Utilities Sempra Infrastructure In the fourth quarter of 2023, Sempra realigned its reportable segments to reflect changes in how the CODM oversees our three platforms: Sempra California, Sempra Texas Utilities and Sempra Infrastru

View Full Filing

View this 10-K filing on SEC EDGAR