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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended
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Jun. 30, 2024
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 |  | June 30, 2024 |  | December 31, 2023
Sempra: |  |  |  |  |
Natural gas | MMBtu |  | 491 |  |  | 361 |
Electricity | MWh |  | — |  |  | 1 |
Congestion revenue rights | MWh |  | 33 |  |  | 36 |
SDG&E: |  |  |  |  |
Natural gas | MMBtu |  | 21 |  |  | 17 |
Congestion revenue rights | MWh |  | 33 |  |  | 36 |
SoCalGas: |  |  |  |  |
Natural gas | MMBtu |  | 412 |  |  | 268 |
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.
INTEREST RATE DERIVATIVES
(Dollars in millions)
| June 30, 2024 |  | December 31, 2023
| Notional debt |  | Maturities |  | Notional debt |  | Maturities
Sempra: |  |  |  |  |  |  |
Cash flow hedges(1) | $ | 4,448 |  |  | 2024-2048 |  | $ | 4,451 |  |  | 2024-2048
(1) At June 30, 2024 and December 31, 2023, cash flow hedges accrued interest based on a notional amount of $881 and $488, 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)
| June 30, 2024 |  | December 31, 2023
| Notional amount |  | Maturities |  | Notional amount |  | Maturities
Sempra: |  |  |  |  |  |  |
Foreign currency derivatives | $ | 104 |  |  | 2024-2025 |  | $ | 176 |  |  | 2024-2025
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)
| June 30, 2024
| 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 | $ | 31 |  |  | $ | 253 |  |  | $ | — |  |  | $ | — |
Foreign exchange instruments | 3 |  |  | — |  |  | — |  |  | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts not subject to rate recovery | 102 |  |  | 29 |  |  | (103) |  |  | (32) |
Associated offsetting commodity contracts | (99) |  |  | (29) |  |  | 99 |  |  | 29 |
Commodity contracts subject to rate recovery | 9 |  |  | 11 |  |  | (50) |  |  | (16) |
Associated offsetting commodity contracts | (6) |  |  | (7) |  |  | 6 |  |  | 7 |
Associated offsetting cash collateral | — |  |  | — |  |  | 11 |  |  | — |
Net amounts presented on the balance sheet | 40 |  |  | 257 |  |  | (37) |  |  | (12) |
Additional cash collateral for commodity contracts not subject to rate recovery | 67 |  |  | — |  |  | — |  |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 22 |  |  | — |  |  | — |  |  | — |
Total(2) | $ | 129 |  |  | $ | 257 |  |  | $ | (37) |  |  | $ | (12) |
SDG&E: |  |  |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 7 |  |  | $ | 11 |  |  | $ | (20) |  |  | $ | (7) |
Associated offsetting commodity contracts | (4) |  |  | (7) |  |  | 4 |  |  | 7 |
Associated offsetting cash collateral | — |  |  | — |  |  | 11 |  |  | — |
Net amounts presented on the balance sheet | 3 |  |  | 4 |  |  | (5) |  |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 21 |  |  | — |  |  | — |  |  | — |
Total(2) | $ | 24 |  |  | $ | 4 |  |  | $ | (5) |  |  | $ | — |
SoCalGas: |  |  |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 2 |  |  | $ | — |  |  | $ | (30) |  |  | $ | (9) |
Associated offsetting commodity contracts | (2) |  |  | — |  |  | 2 |  |  | — |
Net amounts presented on the balance sheet | — |  |  | — |  |  | (28) |  |  | (9) |
Additional cash collateral for commodity contracts subject to rate recovery | 1 |  |  | — |  |  | — |  |  | — |
Total | $ | 1 |  |  | $ | — |  |  | $ | (28) |  |  | $ | (9) |
(1) Included in Other Current Assets for SDG&E and 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, 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 | $ | 17 |  |  | $ | 70 |  |  | $ | — |  |  | $ | — |
Foreign exchange instruments | — |  |  | — |  |  | (9) |  |  | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts not subject to rate recovery | 173 |  |  | 52 |  |  | (170) |  |  | (56) |
Associated offsetting commodity contracts | (169) |  |  | (51) |  |  | 169 |  |  | 51 |
Commodity contracts subject to rate recovery | 10 |  |  | 8 |  |  | (228) |  |  | (9) |
Associated offsetting commodity contracts | (5) |  |  | (2) |  |  | 5 |  |  | 2 |
Associated offsetting cash collateral | — |  |  | — |  |  | 12 |  |  | 7 |
Net amounts presented on the balance sheet | 26 |  |  | 77 |  |  | (221) |  |  | (5) |
Additional cash collateral for commodity contracts not subject to rate recovery | 74 |  |  | — |  |  | — |  |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 22 |  |  | — |  |  | — |  |  | — |
Total(2) | $ | 122 |  |  | $ | 77 |  |  | $ | (221) |  |  | $ | (5) |
SDG&E: |  |  |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 9 |  |  | $ | 8 |  |  | $ | (18) |  |  | $ | (9) |
Associated offsetting commodity contracts | (5) |  |  | (2) |  |  | 5 |  |  | 2 |
Associated offsetting cash collateral | — |  |  | — |  |  | 12 |  |  | 7 |
Net amounts presented on the balance sheet | 4 |  |  | 6 |  |  | (1) |  |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 21 |  |  | — |  |  | — |  |  | — |
Total(2) | $ | 25 |  |  | $ | 6 |  |  | $ | (1) |  |  | $ | — |
SoCalGas: |  |  |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | $ | 1 |  |  | $ | — |  |  | $ | (210) |  |  | $ | — |
Net amounts presented on the balance sheet | 1 |  |  | — |  |  | (210) |  |  | — |
Additional cash collateral for commodity contracts subject to rate recovery | 1 |  |  | — |  |  | — |  |  | — |
Total | $ | 2 |  |  | $ | — |  |  | $ | (210) |  |  | $ | — |
(1) Included in Other Current Assets for SDG&E and 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 hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI.
HEDGE IMPACTS
(Dollars in millions)
| Pretax gain (loss) recognized in OCI |  |  |  | Pretax gain (loss) reclassified from AOCI into earnings
| Three months ended June 30, |  |  |  | Three months ended June 30,
| 2024 |  | 2023 |  | Location |  | 2024 |  | 2023
Sempra: |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest rate instruments | $ | 66 |  |  | $ | 94 |  |  | Interest Expense |  | $ | 3 |  |  | $ | — |
Interest rate instruments | (3) |  |  | 41 |  |  | Equity Earnings(1) |  | 10 |  |  | 14 |
Foreign exchange instruments | 11 |  |  | (2) |  |  | Revenues: Energy- Related Businesses |  | 2 |  |  | — |
|  |  |  |  | Other Income, Net |  | 1 |  |  | (1) |
Foreign exchange instruments | 10 |  |  | (1) |  |  | Equity Earnings(1) |  | 2 |  |  | (1) |
Interest rate and foreign exchange instruments | — |  |  | — |  |  | Interest Expense |  | — |  |  | 1 |
Fair value hedges: |  |  |  |  |  |  |  |  |
Foreign exchange instruments | (7) |  |  | — |  |  | Equity Earnings(1) |  | — |  |  | — |
Total | $ | 77 |  |  | $ | 132 |  |  |  |  | $ | 18 |  |  | $ | 13 |
SoCalGas: |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest rate instruments | $ | — |  |  | $ | — |  |  | Interest Expense |  | $ | (1) |  |  | $ | (1) |
| Six months ended June 30, |  |  |  | Six months ended June 30,
| 2024 |  | 2023 |  | Location |  | 2024 |  | 2023
Sempra: |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest rate instruments | $ | 208 |  |  | $ | 17 |  |  | Interest Expense |  | $ | 6 |  |  | $ | — |
Interest rate instruments | 25 |  |  | 24 |  |  | Equity Earnings(1) |  | 15 |  |  | 21 |
Foreign exchange instruments | 12 |  |  | (8) |  |  | Revenues: Energy- Related Businesses |  | 5 |  |  | — |
|  |  |  |  | Other Income, Net |  | 1 |  |  | (2) |
Foreign exchange instruments | 10 |  |  | (6) |  |  | Equity Earnings(1) |  | 4 |  |  | (2) |
Interest rate and foreign exchange instruments | — |  |  | 7 |  |  | Interest Expense |  | — |  |  | 1 |
|  |  |  |  | Other Income, Net |  | — |  |  | 6 |
Fair value hedges: |  |  |  |  |  |  |  |  |
Foreign exchange instruments | (7) |  |  | — |  |  | Equity Earnings(1) |  | — |  |  | — |
Total | $ | 248 |  |  | $ | 34 |  |  |  |  | $ | 31 |  |  | $ | 24 |
SoCalGas: |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest rate instruments | $ | — |  |  | $ | — |  |  | Interest Expense |  | $ | (1) |  |  | $ | (1) |
(1) Equity earnings at Oncor Holdings and 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 June 30, |  | Six months ended June 30,
| Location | 2024 |  | 2023 |  | 2024 |  | 2023
Sempra: |  |  |  |  |  |  |  |
Commodity contracts not subject to rate recovery | Revenues: Energy-Related Businesses | $ | 41 |  |  | $ | 253 |  |  | $ | 120 |  |  | $ | 702 |
Commodity contracts subject to rate recovery | Cost of Natural Gas | (21) |  |  | (20) |  |  | (27) |  |  | (47) |
Commodity contracts subject to rate recovery | Cost of Electric Fuel and Purchased Power | 4 |  |  | (27) |  |  | (19) |  |  | (18) |
Interest rate instrument | Interest Expense | — |  |  | — |  |  | — |  |  | (47) |
Total |  | $ | 24 |  |  | $ | 206 |  |  | $ | 74 |  |  | $ | 590 |
SDG&E: |  |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | Cost of Electric Fuel and Purchased Power | $ | 4 |  |  | $ | (27) |  |  | $ | (19) |  |  | $ | (18) |
SoCalGas: |  |  |  |  |  |  |  |
Commodity contracts subject to rate recovery | Cost of Natural Gas | $ | (21) |  |  | $ | (20) |  |  | $ | (27) |  |  | $ | (47) |

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