DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity Derivative Volumes Table

The following table summarizes net energy derivative volumes.

NET ENERGY DERIVATIVE VOLUMES

(Quantities in millions)

Commodity

Unit of measure

September 30, 2023

December 31, 2022

Sempra:

Natural gas

MMBtu

441

254

Electricity

MWh

—

Congestion revenue rights

MWh

SDG&E:

Natural gas

MMBtu

Congestion revenue rights

MWh

SoCalGas:

Natural gas

MMBtu

347

224

Notional Amounts of Derivatives Table

The following table presents the net notional amounts of our interest rate derivatives, excluding those in our equity method investments and the contingent interest rate swap.

INTEREST RATE DERIVATIVES

(Dollars in millions)

September 30, 2023

December 31, 2022

Notional debt

Maturities

Notional debt

Maturities

Sempra:

Cash flow hedges(1)

4,454

2023-2048

294

2023-2034

(1) At September 30, 2023 and December 31, 2022, cash flow hedges accrued interest based on a notional of $491 and $294, respectively.

The following table presents the net notional amounts of our foreign currency derivatives, excluding those in our equity method investments.


FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
	September 30, 2023			December 31, 2022
	Notional amount		Maturities	Notional amount		Maturities
Sempra:
Cross-currency swaps	$	—	—	$	306	2023
Other foreign currency derivatives	150		2023-2025	111		2023-2024

Derivative Instruments on the Condensed Consolidated Balance Sheets Table

The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset because the cash collateral was in excess of liability positions.


DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	September 30, 2023
	Current assets: Fixed-price contracts and other derivatives(1)		Other long-term assets		Other current liabilities		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate instruments	$	15	$	363	$	—	$	—
Foreign exchange instruments	—		1		(8)		—
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	175		25		(172)		(29)
Associated offsetting commodity contracts	(166)		(22)		166		22
Commodity contracts subject to rate recovery	22		15		(171)		(6)
Associated offsetting commodity contracts	(16)		(3)		16		3
Associated offsetting cash collateral	—		—		—		1
Net amounts presented on the balance sheet	30		379		(169)		(9)
Additional cash collateral for commodity contracts not subject to rate recovery	89		—		—		—
Additional cash collateral for commodity contracts subject to rate recovery	82		—		—		—
Total(2)	$	201	$	379	$	(169)	$	(9)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	18	$	15	$	(13)	$	(4)
Associated offsetting commodity contracts	(12)		(3)		12		3
Associated offsetting cash collateral	—		—		—		1
Net amounts presented on the balance sheet	6		12		(1)		—
Additional cash collateral for commodity contracts subject to rate recovery	80		—		—		—
Total(2)	$	86	$	12	$	(1)	$	—
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	4	$	—	$	(158)	$	(2)
Associated offsetting commodity contracts	(4)		—		4		—
Net amounts presented on the balance sheet	—		—		(154)		(2)
Additional cash collateral for commodity contracts subject to rate recovery	2		—		—		—
Total	$	2	$	—	$	(154)	$	(2)

(1) Included in Other Current Assets for SoCalGas.

(2) Normal purchase contracts previously measured at fair value are excluded.


DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in millions)
	December 31, 2022
	Current assets: Fixed-price contracts and other derivatives(1)		Other long-term assets		Other current liabilities		Deferred credits and other
Sempra:
Derivatives designated as hedging instruments:
Interest rate instruments	$	10	$	33	$	—	$	—
Foreign exchange instruments	—		—		(7)		(1)
Interest rate and foreign exchange instruments	—		—		(105)		—
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	480		133		(399)		(132)
Associated offsetting commodity contracts	(301)		(39)		301		39
Commodity contracts subject to rate recovery	138		27		(97)		(2)
Associated offsetting commodity contracts	(27)		(2)		27		2
Interest rate instrument	33		—		—		—
Net amounts presented on the balance sheet	333		152		(280)		(94)
Additional cash collateral for commodity contracts not subject to rate recovery	451		—		—		—
Additional cash collateral for commodity contracts subject to rate recovery	18		—		—		—
Total(2)	$	802	$	152	$	(280)	$	(94)
SDG&E:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	107	$	27	$	(13)	$	(2)
Associated offsetting commodity contracts	(12)		(2)		12		2
Net amounts presented on the balance sheet	95		25		(1)		—
Additional cash collateral for commodity contracts subject to rate recovery	17		—		—		—
Total(2)	$	112	$	25	$	(1)	$	—
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	31	$	—	$	(84)	$	—
Associated offsetting commodity contracts	(15)		—		15		—
Net amounts presented on the balance sheet	16		—		(69)		—
Additional cash collateral for commodity contracts subject to rate recovery	1		—		—		—
Total	$	17	$	—	$	(69)	$	—

(1) Included in Other Current Assets for SoCalGas.

(2) Normal purchase contracts previously measured at fair value are excluded.

Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table

The following table includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI.


CASH FLOW HEDGE IMPACTS
(Dollars in millions)
	Pretax gain (loss) recognized in OCI					Pretax gain (loss) reclassified from AOCI into earnings
	Three months ended September 30,					Three months ended September 30,
	2023		2022		Location	2023		2022
Sempra:
Interest rate instruments	$	320	$	4	Interest Expense	$	(1)	$	(2)
Interest rate instruments	32		68		Equity Earnings(1)	12		(1)
Foreign exchange instruments	8		2		Revenues: Energy- Related Businesses	—		—
					Other Income (Expense), Net	1		—
Foreign exchange instruments	7		1		Equity Earnings(1)	1		—
Interest rate and foreign exchange instruments	—		—		Other Income (Expense), Net	—		(3)
Total	$	367	$	75		$	13	$	(6)



	Nine months ended September 30,					Nine months ended September 30,
	2023		2022		Location	2023		2022
Sempra:
Interest rate instruments	$	337	$	39	Interest Expense	$	(1)	$	(1)
Interest rate instruments	56		212		Equity Earnings(1)	33		(28)
Foreign exchange instruments	—		(1)		Revenues: Energy- Related Businesses	—		2
					Other Income (Expense), Net	(1)		(1)
Foreign exchange instruments	1		(1)		Equity Earnings(1)	(1)		1
Interest rate and foreign exchange instruments	7		13		Interest Expense	1		1
					Other Income (Expense), Net	6		3
Total	$	401	$	262		$	37	$	(23)
SoCalGas:
Interest rate instruments	$	—	$	—	Interest Expense	$	(1)	$	(1)

(1) Equity earnings at our foreign equity method investees are recognized after tax.

Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table

The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.


UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings
		Three months ended September 30,				Nine months ended September 30,
	Location	2023		2022		2023		2022
Sempra:
Commodity contracts not subject to rate recovery	Revenues: Energy-Related Businesses	$	83	$	(227)	$	785	$	(455)
Commodity contracts subject to rate recovery	Cost of Natural Gas	(125)		(11)		(172)		(15)
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	23		16		5		10
Interest rate instrument	Interest Expense	—		—		(47)		—
Total		$	(19)	$	(222)	$	571	$	(460)
SDG&E:
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	$	23	$	16	$	5	$	10
SoCalGas:
Commodity contracts subject to rate recovery	Cost of Natural Gas	$	(125)	$	(11)	$	(172)	$	(15)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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