Sempra Energy Financial Overview slide image

Sempra Energy Financial Overview

Sempra Infrastructure 1. (Dollars in millions) Sempra Infrastructure GAAP (Losses) Earnings Impact from Foreign Currency and Inflation on our Monetary Positions in Mexico and Associated Undesignated Derivatives Net Unrealized Losses (Gains) on Commodity Derivatives Net Unrealized Gains on a Contingent Interest Rate Swap Related to the Proposed PA LNG Phase 1 Project Costs Associated with Early Redemptions of Debt Sempra Infrastructure Adjusted Earnings1 Three months ended December 31, Years ended December 31, 2022 2021 2022 2021 (Unaudited) $ (82) $ 263 SA $ 310 $ 682 75 247 3 162 43 (129) 355 47 (17) $ 223 $ 136 (17) 30 30 167 $ 810 $ 802 Q4-2022 adjusted earnings are higher than Q4-2021 adjusted earnings primarily due to: $56M higher equity earnings from Cameron LNG JV higher revenues from excess LNG production, $40M higher net income tax benefit primarily from the remeasurement of certain deferred income taxes and outside basis differences in JV investments, $23M higher earnings from asset and supply optimization driven by changes in natural gas prices, primarily associated with ECA Regas Facility $20M higher earnings from the transportation business in Mexico driven by higher rates and higher equity earnings at IMG, partially offset by $125M earnings attributable to NCI in 2022 compared to $62M earnings in 2021 primarily due to an increase in SI Partners subsidiaries net income and the sale of a 10% NCI in SI Partners to ADIA in June 2022, and $21M higher net interest expense primarily related to lower interest income from loan with IMG and higher interest expense on SI Partners committed line of credit FY-2022 adjusted earnings are higher than FY-2021 adjusted earnings primarily due to: • $110M higher net income tax benefit primarily from the remeasurement of certain deferred income taxes and outside basis differences in JV investments, $79M higher equity earnings from Cameron LNG JV primarily from higher revenues from excess LNG production and maintenance revenues, $41M higher earnings from the transportation business in Mexico driven by higher rates and higher equity earnings at IMG, $25M higher earnings from TdM driven by higher power prices offset by lower volumes, $21M higher earnings from asset and supply optimization driven by changes in natural gas prices and higher diversion revenues, primarily associated with ECA Regas Facility $15M higher earnings due to the start of commercial operations of the Veracruz and Mexico City terminals in March and July of 2021, respectively, and remeasurement of operating leases, and $13M higher earnings from the renewables business due to Border Solar and the second phase of ESJ being placed in service in March 2021 and January 2022, respectively, partially offset by $366M earnings attributable to NCI in 2022 compared to $116M earnings in 2021 primarily due to the sale of a 10% NCI in SI Partners to ADIA in June 2022 and an increase in SI Partners subsidiaries net income offset by higher ownership interest in IEnova $21M higher net interest expense primarily related to lower interest income from loan with IMG and higher interest expense on SI Partners committed line of credit, $13M selling profit on a sales-type lease relating to the commencement of a rail facility lease at the Veracruz terminal in 2021 See Appendix for information regarding Adjusted Earnings, which represents a non-GAAP financial measure. SEMPRA 25
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