SHAPING the FUTURE “There Is an Energy Transition Occurring Across the Globe — and I Believe the 21St Century Will Be the Century of Energy.”

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2019 | ANNUAL REPORT SHAPING THE FUTURE “There is an energy transition occurring across the globe — and I believe the 21st century will be the Century of Energy.”

— JEFFREY W. MARTIN Dear fellow shareholders:

Together, we are shaping the future. This is an exciting We executed on that strategy by divesting certain time to be building new energy infrastructure in non-core assets and reinvesting sales proceeds into North America. our core markets: California, Texas and Mexico, and the liquefied natural gas (LNG) export market. After serving as a driver of change across so many industries throughout the past century, the global These markets enable us to focus on the delivery energy market has now reached an inflection point. of cleaner and more secure forms of energy to At Sempra Energy, we believe the energy industry consumers right here in North America as well as will experience significant disruption in the next abroad. Moreover, we are focusing our role in the 20 years. We view this as an opportunity. energy value chain on transmission and distribution investments that provide attractive risk-adjusted By delivering access to safer and more reliable, returns and higher value for our stakeholders. lower-carbon energy solutions, we have a unique opportunity to shape our company’s future. Our We have accomplished many of our goals and made employees are united around a vision to make a great progress in our journey to become North difference in the world by delivering energy with America’s premier energy infrastructure company. purpose, while supporting a high-performing corporate culture that serves all of our stakeholders.

Focusing Our Strategy

In 2018, we laid out a strategic plan known as “Vision 2022,” centered on the mission of becoming North America’s premier energy infrastructure company. The past two years have been transformational for us. We sharpened our focus on the most attractive growth markets in North America, simplified our business model and strengthened our balance sheet.

Jeffrey W. Martin, Chairman and CEO

Visit our online annual report at sempra.com/annualreport 1

20323_Sempra_2019AR_TXT_030420.indd 1 3/4/20 11:29 PM Letter to Shareholders (continued)

Over the past year, we have accomplished the following: Leading the Global Energy Transition

√ Completed the sale of our U.S. renewables business There is an energy transition occurring across the and non-utility natural gas storage assets, which globe — and I believe the 21st century will be the has generated approximately $2.5 billion in total “Century of Energy.” The transition is occurring proceeds since December 2018; differently market by market, with lower-carbon alternatives playing an increasingly important role. √ Entered into separate agreements to sell our Peruvian and Chilean businesses in South America Over the next decade, we will continue to make for $3.59 billion and $2.23 billion, respectively;* critical investments in smart, new energy √ Expanded our footprint in Texas by closing an infrastructure aimed at helping bring energy choice acquisition that extends Oncor Electric Delivery and security to people around the world. Company LLC’s (Oncor) transmission system in I am proud that in every market we serve, our north, central and west Texas; energy infrastructure is helping to reduce the carbon √ Received a final decision in San Diego Gas & Electric footprint of the energy ecosystem. Company’s (SDG&E) and Southern California Gas In California, both of our utilities — SDG&E and Company’s (SoCalGas) 2019 General Rate Cases; SoCalGas — are taking bold steps to reduce √ Commenced shipping LNG from our Cameron LNG greenhouse gas emissions. Approximately 45% joint venture in Hackberry, La., to global markets; of the electricity that SDG&E delivers to homes √ Entered into multiple preliminary agreements and businesses comes from solar, wind and other that provide the framework for cooperation in the renewable energy sources. In 2019, SoCalGas development of potential North American LNG announced a goal to replace 20% of its traditional export projects; natural gas supply with renewable natural gas √ Commenced commercial operations of the Sur de by 2030. SoCalGas is also focused on developing Texas-Tuxpan marine pipeline, developed by a joint hydrogen technologies that will help reduce venture between Infraestructura Energética Nova, greenhouse gas emissions without sacrificing S.A.B. de C.V. (IEnova), our Mexico subsidiary, and energy security and reliability. TC Energy Corporation. The pipeline can deliver up Oncor is expanding its reach in Texas by connecting to 2.6 billion cubic feet per day of U.S. natural gas the next generation of customers to renewable to Mexico; and energy through its approximately 140,000 miles of √ Delivered total shareholder return of 44% in 2019, transmission and distribution lines. Texas leads the compared to 31% for the S&P 500 Index and 26% U.S. in the production of wind energy and is also for the S&P 500 Utilities Index, and increased our among the leading states in solar energy production. dividend by 8%, marking the 10th consecutive year we’ve raised our dividend.

* Subject to adjustments and satisfaction of closing conditions.

2 2019 | SEMPRA ENERGY ANNUAL REPORT

20323_Sempra_2019AR_TXT_030420.indd 2 3/4/20 11:29 PM Most of the generation added in Texas over the past decade has been fueled by a combination of natural Our employees are united around gas, wind and solar energy. a vision to make a difference in

IEnova also continues to make significant progress the world by delivering energy with in the midstream and refined fuels markets, helping purpose, while supporting a high- Mexico diversify its energy supply and increase performing corporate culture that both the reach and reliability of the country’s energy ecosystem. serves all of our stakeholders.

Through our strategically located LNG development I am so proud that our company has the privilege to projects, we are developing infrastructure that is serve more than 40 million consumers and plays an designed to directly dispatch LNG into Atlantic and important role in providing cleaner, more reliable Pacific markets to deliver cleaner, more reliable and energy to countries all around the world. We have more affordable energy to the world, while displacing been successful in improving our earnings profile, fuel oil and coal in power production. while also endeavoring to better serve customers At Sempra Energy, we are focused on growing in and the environment. North America while having a global impact. The What we do truly matters. Our infrastructure connects world is depending on new sources of energy — with people to the energy they need to power their lives many countries needing more secure forms of energy and we do not take that for granted. The dedication to serve the needs of their growing populations. of our more than 20,000 employees to find new and Delivering Energy With Purpose better ways to deliver energy with a relentless focus on safety is something that inspires me every day. Sempra Energy’s vision to deliver energy with purpose is a key component of our culture, uniting We will continue to be forward-thinking as we deliver employees through a shared commitment to have a energy with purpose, with a focus on creating positive impact on the communities we serve and, value for all our stakeholders. And I will continue to more broadly, the world. Our industry as a whole challenge our employees and our industry to think must also lead with purpose and explore big ideas as bigger and more boldly as we embrace opportunities we think about the positive benefits we can create for to make the world an even better place. stakeholders in the future. Ever forward together,

Jeffrey W. Martin Chairman and Chief Executive Officer

Visit our online annual report at sempra.com/annualreport 3

20323_Sempra_2019AR_TXT_030420.indd 3 3/4/20 11:29 PM 45 Mtpa of LNG projects with one under construction and four in various stages of development $44.2 billion market cap* *As of Dec. 31, 2019 40 20,000 million employees consumers across the world

consecutive 10 years of dividend increases

4 2019 | SEMPRA ENERGY ANNUAL REPORT

20323_Sempra_2019AR_TXT_030420.indd 4 3/4/20 11:29 PM Powering the World with LNG Spotlight: Liquefied Natural Gas Export Infrastructure

After driving economic development and improving The Cameron LNG liquefaction-export project in quality of life across so many communities Hackberry, La., reached a major milestone this year throughout the past century, the global energy — the project is now exporting LNG to Asian and market is now going through a transition period. European markets. And Port Arthur LNG in Jefferson As more nations shift from higher-emissions fuels County, Texas, is one of several mega projects in to lower-carbon natural gas and renewables, global development around the world. We expect to reach demand for LNG is expected to dramatically increase. a final investment decision on the Port Arthur LNG We believe Sempra Energy is uniquely positioned to project in the third quarter of 2020. capitalize on this trend.

Through our five strategically located export projects in various stages of construction or development, our talented commercial and engineering teams are developing infrastructure designed to directly dispatch LNG into Atlantic and Pacific markets to deliver more reliable and affordable energy to the world. Increased exports of LNG can provide a lower- carbon energy alternative to America’s trading partners, while creating jobs at home and reducing our trade deficit. Cameron LNG’s first liquefaction train began commercial operations in August 2019 and is now exporting LNG to customers in the largest world markets. Cameron LNG’s second liquefaction We believe Sempra Energy is train began commercial operations in February 2020. uniquely positioned to capitalize on We are excited to help support the transformation this trend in global energy markets. of America as a recognized leader in energy exports with a goal of developing operating infrastructure that can deliver up to 45 million tonnes per annum Sempra LNG and IEnova’s proposed liquefaction (Mtpa) of LNG to world markets, which would project on Mexico’s west coast — Energía Costa Azul make our company one of North America’s largest LNG Phase 1 and Phase 2 — would connect to natural developers of LNG-export infrastructure projects. gas supplies from Texas and help to reduce transit time for U.S. natural gas to reach Asian markets from an average of 21 days to approximately 11 days.

Visit our online annual report at sempra.com/annualreport 5

20323_Sempra_2019AR_TXT_030420.indd 5 3/4/20 11:29 PM Delivering Energy with Purpose Spotlight: Resilient Operations and Sustainable Growth

At Sempra Energy, we believe there will be more change to the energy industry in the next 20 years than in the past 100. Leadership, innovation and technology are helping to forge our path forward. It all comes together as part of our strategic commitment to sustainable growth.

At Sempra Energy, sustainability isn’t a new trend. For decades, we have managed our business with a view towards serving the needs of all our stakeholders.

It all starts with safety. Every employee and contractor Every day, our employees work to develop new, bold ideas to — from the front office to the front line — is an active meet the needs of the customers and communities we serve. part of our comprehensive safety culture. At any time, anyone may “stop the job” to double-check safety. • A– grade from CDP (formerly the Climate Disclosure It is a mindset that we practice and reinforce with Project) compared to the North America regional industry-leading programs. Our safety culture also average of C. extends to our 21st century investments in smart, • A grade from Morgan Stanley Capital International resilient infrastructure that reduces fire risk and (MSCI) and recognition as an “ESG leader” in improves overall electric and pipeline safety. Together, corporate governance, toxic emissions and waste, we are committed to building a safe and more and carbon emissions. resilient business. • Fortune Magazine’s World’s Most Admired We have also focused on regularly engaging our Companies for 2020. employees, customers, policy makers and suppliers • Forbes’ America’s Best Employers for Diversity. to understand their needs. One of our core values • Newsweek’s America’s Most Responsible Companies. is “championing people,” which can better position us to identify and manage business risks and • Investor’s Business Daily’s Best ESG Companies. opportunities. We believe this commitment to • Barron’s Top 100 Most Sustainable Companies in listening and learning furthers a culture of continuous America. improvement and results in more resilient operations Additionally, Sempra Energy is the only North and sustainable growth. American utility holding company to be included in Our 20,000 employees take pride in the recognition the Dow Jones Sustainability World Index. Sempra Energy has received as a leader in sustainable Together, our employees deliver energy with purpose, growth. Our honors in 2019 include: with an ever-present focus on shaping a more sustainable future.

6 2019 | SEMPRA ENERGY ANNUAL REPORT

20323_Sempra_2019AR_TXT_030420.indd 6 3/4/20 11:29 PM Developing Energy Infrastructure for the Future Spotlight: Transmission and Distribution

Sempra Energy and its subsidiaries are developing California smart, new energy infrastructure that is needed to In California, our utilities connect millions of meet the future energy demands of tens of millions customers to wind, solar and renewable natural gas. of consumers. The company has focused its role in the Approximately 45% of the energy delivered to SDG&E energy value chain on transmission and distribution customers comes from renewable energy sources. investments that we believe provide attractive risk- Also, SoCalGas announced a vision to be the cleanest adjusted returns. And importantly, the investments natural gas utility in North America, with a goal of we make are helping to reshape each market we serve replacing 20% of the natural gas it delivers to core by delivering lower-carbon energy choices to fuel customers with renewable natural gas by 2030. homes and businesses. Mexico Texas In Mexico, natural gas, wind and solar are providing In Texas, Oncor is playing a key role in helping to alternatives to fuel oil. IEnova is building crucial deliver the rapidly increasing supply of wind and infrastructure to increase energy reliability and solar energy to the state’s growing population. accessibility and help the country reach its ambitious Oncor’s grid is an integral part of the market served clean energy goals. by the Electric Reliability Council of Texas, Inc., which has helped Texas grow to be the number one state LNG in the U.S. for wind generation. As Sempra Energy And worldwide, LNG from the Cameron LNG advances its mission to be North America’s premier liquefaction-export facility provides an alternative to energy infrastructure company, we will continue to fuel oil and coal. Many countries need access to more invest in the critical energy infrastructure needed to secure forms of energy to address the needs of their support the Texas economy. growing populations. Sempra Energy is pursuing the development of five strategically located LNG projects in North America with a goal of developing operating infrastructure that can deliver up to 45 Mtpa of LNG to the largest world markets.

All of these initiatives are aimed at enabling a lower- carbon future, a fundamental part of our mission and culture.

Oncor is investing in new technologies to create a safer, smarter and more reliable grid to serve 10 million Texans.

Visit our online annual report at sempra.com/annualreport 7

20323_Sempra_2019AR_TXT_030420.indd 7 3/4/20 11:30 PM About Sempra

Sempra Energy’s mission is to be North America’s premier energy Sempra LNG Southern California Gas infrastructure company. The Sempra LNG develops and builds natural Company San Diego-based company gas liquefaction facilities and is pursuing the SoCalGas is the largest natural gas development of five strategically located is the utility holding distribution utility in the U.S., delivering LNG projects in North America. affordable, reliable and clean gas service company with the largest to approximately 22 million consumers. U.S. customer base. Sempra Energy’s employees are guided by the company’s values — doing the right thing, championing people and shaping the future — while carrying out a vision to deliver energy with purpose to the communities IEnova San Diego Gas & Electric they serve. Sempra Energy IEnova develops, owns and operates energy SDG&E is an innovative San Diego-based infrastructure in Mexico, and is one of energy company that provides clean, has been consistently the largest private energy companies in safe and reliable energy to approximately recognized for its leadership the country. 3.7 million consumers. in diversity and inclusion, and sustainability, and was named to Fortune Magazine’s “World’s Most Admired Companies” list for 2020.

Oncor Electric Delivery Sempra South American Company LLC* Utilities** Oncor, based in Dallas, Texas, operates the Chilquinta Energía in Chile and Luz del Sur largest transmission and distribution system in Peru invest in electric generation and in the state, providing safe and reliable transmission to provide service to about service to approximately 10 million Texans. 6.9 million consumers.

* As of December 31, 2019, Sempra Energy indirectly owns 80.25% of Oncor. ** Sempra Energy launched a formal sales process in January 2019 to sell its equity interests in the Sempra South American Utilities and expects to complete these sales in the first half of 2020.

8 2019 | SEMPRA ENERGY ANNUAL REPORT

20323_Sempra_2019AR_TXT_030420.indd 8 3/4/20 11:30 PM FINANC IAL HIG HLIG HTS

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Sempra Energy S&P 500 S&P 500 Utilities

The above graph compares the percentage change in the cumulative total shareholder return on Sempra Energy common stock for the 20-year period ended December 31, 2019, with the performance over the same period of the S&P 500 Index and the S&P 500 Utilities Index. These returns were calculated assuming an initial investment of $100 in our common stock, the S&P 500 Index and the S&P 500 Utilities Index on December 31, 1999, and the reinvestment of all dividends.

Consolidated Data In millions, except per-share amounts 2017(1) 2018(1) 2019 Revenues $ 9,640 $ 10,102 $ 10,829 Earnings $ 256 $ 924 $ 2,055 Adjusted Earnings(2) $ 1,368 $ 1,503 $ 1,911 Earnings Per Common Share (EPS): Basic $ 1.02 $ 3.45 $ 7.40 Diluted $ 1.01 $ 3.42 $ 7.29 Adjusted Diluted(2) $ 5.42 $ 5.57 $ 6.78 Diluted Weighted-Average Common Shares Outstanding 252.3 269.9 282.0 Total Assets $50,454 $60,638 $ 65,665 Dividends Declared Per Common Share $ 3.29 $ 3.58 $ 3.87 Debt-to-Total Capitalization Ratio 55% 56% 54% Book Value Per Common Share $ 50.40 $ 54.35 $ 60.58

(1) Amounts have been retrospectively adjusted for discontinued operations. (2) Adjusted earnings and adjusted EPS are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). See pages A-1 and A-2 for an explanation and reconciliation of these non-GAAP financial measures.

Visit our online annual report at sempra.com/annualreport 9 2019 FORM 10-K

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Information About Our Executive Officers

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,7(0$5,6.)$&7256 When evaluating our company and its subsidiaries, you should consider carefully the following risk factors and all other information contained in this report. These risk factors could materially adversely affect our actual results and cause such results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. We may also be materially harmed by risks and uncertainties not currently known to us or that we currently deem to be immaterial. If any of the following occurs, our businesses, cash flows, results of operations, financial condition and/or prospects could be materially adversely affected. In addition, the trading prices of our securities and those of our subsidiaries could substantially decline due to the occurrence of any of these risks. These risk factors should be read in conjunction with the other detailed information concerning our company set forth in, or attached as an exhibit to, this annual report on Form 10-K, including, without limitation, the information set forth in the Notes to Consolidated Financial Statements and in “Item 7. MD&A.”

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Risk management procedures may not prevent or mitigate losses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he operation of our facilities depends on good labor relations with our employees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n addition to general information and cyber risks that all large corporations face (e.g. malware, malicious intent by insiders and inadvertent disclosure of sensitive information), we face evolving cybersecurity risks associated with protecting sensitive and confidential customer information, smart grid infrastructure, and natural gas pipeline and storage infrastructure. ([LVWLQJEXVLQHVVWHFKQRORJLHVDQGWKHGHSOR\PHQWRIQHZEXVLQHVVWHFKQRORJLHVUHSUHVHQWDODUJHVFDOHRSSRUWXQLW\IRUDWWDFNVRQ RXULQIRUPDWLRQV\VWHPVDQGFRQILGHQWLDOFXVWRPHULQIRUPDWLRQDVZHOODVRQWKHLQWHJULW\RIWKHHQHUJ\JULGDQGWKHQDWXUDOJDV LQIUDVWUXFWXUH$GGLWLRQDOO\ZHRIWHQUHO\RQWKLUGSDUW\YHQGRUVWRGHSOR\QHZEXVLQHVVWHFKQRORJLHVDQGPDLQWDLQPRGLI\DQG XSGDWHRXUV\VWHPVLQFOXGLQJV\VWHPVWKDWPDQDJHVHQVLWLYHLQIRUPDWLRQ7KHVHWKLUGSDUWLHVFRXOGIDLOWRHVWDEOLVKDGHTXDWHULVN PDQDJHPHQWDQGLQIRUPDWLRQVHFXULW\PHDVXUHVWRSURWHFWRXUV\VWHPVDQGLQIRUPDWLRQ:KLOHRXUFRPSXWHUV\VWHPVKDYHEHHQ DQGZLOOFRQWLQXHWREHVXEMHFWHGWRFRPSXWHUYLUXVHVRURWKHUPDOZDUHXQDXWKRUL]HGDFFHVVDWWHPSWVDQGF\EHURUSKLVKLQJ DWWDFNVWRGDWHZHKDYHQRWGHWHFWHGDPDWHULDOEUHDFKRIF\EHUVHFXULW\$GGUHVVLQJWKHVHULVNVLVWKHVXEMHFWRIVLJQLILFDQW RQJRLQJDFWLYLWLHVDFURVV6HPSUD(QHUJ\¶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The Wildfire Legislation may not adequately protect SDG&E from liability from catastrophic wildfires in its service territory and we may be unable to obtain sufficient insurance coverage at a reasonable cost or at all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Capital Stock Transactions

Sempra Energy &DVKSURYLGHGE\LVVXDQFHVRIFRPPRQDQGSUHIHUUHGVWRFNZDV ƒELOOLRQLQ ƒELOOLRQLQ ƒPLOOLRQLQ

Dividends

Sempra Energy 6HPSUD(QHUJ\SDLGFDVKGLYLGHQGVRI ƒPLOOLRQIRUFRPPRQVWRFNDQGPLOOLRQIRUSUHIHUUHGVWRFNLQ ƒPLOOLRQIRUFRPPRQVWRFNDQGPLOOLRQIRUSUHIHUUHGVWRFNLQ ƒPLOOLRQIRUFRPPRQVWRFNLQ

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SDG&E 6'* (GLGQRWGHFODUHRUSD\FRPPRQVWRFNGLYLGHQGVLQ,QDQG6'* (SDLGFRPPRQVWRFNGLYLGHQGVWR (QRYDDQG(QRYDSDLGFRUUHVSRQGLQJGLYLGHQGVWR6HPSUD(QHUJ\RIPLOOLRQDQGPLOOLRQUHVSHFWLYHO\6'* (¶V GLYLGHQGVRQFRPPRQVWRFNGHFODUHGRQDQDQQXDOKLVWRULFDOEDVLVPD\QRWEHLQGLFDWLYHRIIXWXUHGHFODUDWLRQVDQGFRXOGEH LPSDFWHGRYHUWKHQH[WIHZ\HDUVLQRUGHUIRU6'* (WRPDLQWDLQLWVDXWKRUL]HGFDSLWDOVWUXFWXUHZKLOHPDQDJLQJLWVFDSLWDO LQYHVWPHQWSURJUDP ,Q-DQXDU\6'* (GHFODUHGDQGSDLGFRPPRQVWRFNGLYLGHQGVWR(QRYDDQG(QRYDGHFODUHGDQGSDLGFRUUHVSRQGLQJ GLYLGHQGVWR6HPSUD(QHUJ\RIPLOOLRQ (QRYDDZKROO\RZQHGVXEVLGLDU\RI6HPSUD(QHUJ\RZQVDOORI6'* (¶VRXWVWDQGLQJFRPPRQVWRFN$FFRUGLQJO\GLYLGHQGV SDLGE\6'* (WR(QRYDDQGGLYLGHQGVSDLGE\(QRYDWR6HPSUD(QHUJ\DUHERWKHOLPLQDWHGLQ6HPSUD(QHUJ\¶V&RQVROLGDWHG )LQDQFLDO6WDWHPHQWV

SoCalGas ,QDQG6R&DO*DVSDLGFRPPRQVWRFNGLYLGHQGVWR3(DQG3(SDLGFRUUHVSRQGLQJGLYLGHQGVWR6HPSUD(QHUJ\RI PLOOLRQDQGPLOOLRQUHVSHFWLYHO\6R&DO*DVGLGQRWGHFODUHRUSD\FRPPRQVWRFNGLYLGHQGVLQ6R&DO*DV¶GLYLGHQGVRQ FRPPRQVWRFNGHFODUHGRQDQDQQXDOKLVWRULFDOEDVLVPD\QRWEHLQGLFDWLYHRIIXWXUHGHFODUDWLRQVDQGFRXOGEHLPSDFWHGRYHUWKH QH[WIHZ\HDUVLQRUGHUIRU6R&DO*DVWRPDLQWDLQLWVDXWKRUL]HGFDSLWDOVWUXFWXUHZKLOHPDQDJLQJLWVFDSLWDOLQYHVWPHQWSURJUDP 3(DZKROO\RZQHGVXEVLGLDU\RI6HPSUD(QHUJ\RZQVDOORI6R&DO*DV¶RXWVWDQGLQJFRPPRQVWRFN$FFRUGLQJO\GLYLGHQGVSDLG E\6R&DO*DVWR3(DQGGLYLGHQGVSDLGE\3(WR6HPSUD(QHUJ\DUHERWKHOLPLQDWHGLQ6HPSUD(QHUJ\¶V&RQVROLGDWHG)LQDQFLDO 6WDWHPHQWV

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Capitalization 2XUGHEWWRFDSLWDOL]DWLRQUDWLRFDOFXODWHGDVWRWDOGHEWDVDSHUFHQWDJHRIWRWDOGHEWDQGHTXLW\ZDVDVIROORZV

727$/&$3,7$/,=$7,21$1''(%772&$3,7$/,=$7,215$7,26 (Dollars in millions) 6HPSUD(QHUJ\ &RQVROLGDWHG 6'* ( 6R&DO*DV 'HFHPEHU 7RWDOFDSLWDOL]DWLRQ 'HEWWRFDSLWDOL]DWLRQUDWLR 'HFHPEHU 7RWDOFDSLWDOL]DWLRQ 'HEWWRFDSLWDOL]DWLRQUDWLR

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81',6&2817('35,1&,3$/&2175$&78$/&200,70(176±6(035$(1(5*<&2162/,'$7(' (Dollars in millions) DQG DQG 7KHUHDIWHU 7RWDO /RQJWHUPGHEW ,QWHUHVWRQORQJWHUPGHEW 2SHUDWLQJOHDVHV )LQDQFHOHDVHV 3XUFKDVHGSRZHUFRQWUDFWV±IL[HGSD\PHQWV 3XUFKDVHGSRZHUFRQWUDFWV±HVWLPDWHG YDULDEOHSD\PHQWV 1DWXUDOJDVFRQWUDFWV /1*FRQWUDFW &RQVWUXFWLRQFRPPLWPHQWV 621*6GHFRPPLVVLRQLQJ 2WKHUDVVHWUHWLUHPHQWREOLJDWLRQV 6XQULVH3RZHUOLQNZLOGILUHPLWLJDWLRQIXQG 3HQVLRQDQGRWKHUSRVWUHWLUHPHQWEHQHILW REOLJDWLRQV :LOGILUH)XQGREOLJDWLRQ (QYLURQPHQWDOFRPPLWPHQWV 2WKHU 7RWDO (1) We calculate expected interest payments using the stated interest rate for fixed-rate obligations, including floating-to-fixed interest rate swaps and cross-currency swaps. We calculate expected interest payments for variable-rate obligations based on forward rates in effect at December 31, 2019. (2) Includes $11 million of estimated variable payments. (3) Sempra LNG has a sale and purchase agreement for the supply of LNG to the ECA LNG Regasification terminal. The commitment amount is calculated using a predetermined formula based on estimated forward prices of the index applicable from 2020 to 2029. (4) Amounts represent expected company contributions to the plans for the next 10 years. (5) Excludes environmental matters for the Leak at SoCalGas’ Aliso Canyon natural gas storage facility. (6) Includes leases that have not yet commenced.

81',6&2817('35,1&,3$/&2175$&78$/&200,70(176±6'* ( (Dollars in millions) DQG DQG 7KHUHDIWHU 7RWDO /RQJWHUPGHEW ,QWHUHVWRQORQJWHUPGHEW 2SHUDWLQJOHDVHV )LQDQFHOHDVHV 3XUFKDVHGSRZHUFRQWUDFWV±IL[HGSD\PHQWV 3XUFKDVHGSRZHUFRQWUDFWV±HVWLPDWHG YDULDEOHSD\PHQWV &RQVWUXFWLRQFRPPLWPHQWV 621*6GHFRPPLVVLRQLQJ 2WKHUDVVHWUHWLUHPHQWREOLJDWLRQV 6XQULVH3RZHUOLQNZLOGILUHPLWLJDWLRQIXQG 3HQVLRQDQGRWKHUSRVWUHWLUHPHQWEHQHILW REOLJDWLRQV :LOGILUH)XQGREOLJDWLRQ (QYLURQPHQWDOFRPPLWPHQWV 2WKHU 7RWDO (1) SDG&E calculates expected interest payments using the stated interest rate for fixed-rate obligations. (2) Amounts represent expected SDG&E contributions to the plans for the next 10 years. (3) Includes leases that have not yet commenced.

81',6&2817('35,1&,3$/&2175$&78$/&200,70(176±62&$/*$6 (Dollars in millions) DQG DQG 7KHUHDIWHU 7RWDO /RQJWHUPGHEW ² ² ,QWHUHVWRQORQJWHUPGHEW 1DWXUDOJDVFRQWUDFWV 2SHUDWLQJOHDVHV )LQDQFHOHDVHV (QYLURQPHQWDOFRPPLWPHQWV 3HQVLRQDQGRWKHUSRVWUHWLUHPHQWEHQHILW REOLJDWLRQV $VVHWUHWLUHPHQWREOLJDWLRQV 2WKHU 7RWDO (1) SoCalGas calculates interest payments using the stated interest rate for fixed-rate obligations. (2) Excludes amounts related to the natural gas leak at the Aliso Canyon natural gas storage facility. (3) Amounts represent expected SoCalGas contributions to the plans for the next 10 years. 7KHWDEOHVH[FOXGHFRQWUDFWVEHWZHHQFRQVROLGDWHGDIILOLDWHVLQWHUFRPSDQ\GHEWDQGHPSOR\PHQWFRQWUDFWV 7KHWDEOHVDOVRH[FOXGHLQFRPHWD[OLDELOLWLHVDW'HFHPEHURI ƒPLOOLRQIRU6HPSUD(QHUJ\&RQVROLGDWHG ƒPLOOLRQIRU6'* ( ƒPLOOLRQIRU6R&DO*DV

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Insurance Receivable for Aliso Canyon Costs - Refer to Note 16 of the Notes to Consolidated Financial Statements

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Assumptions for Pension and Other Postretirement Benefit Plans

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S-9

Reconciliation of Sempra Energy Adjusted Earnings to Sempra Energy GAAP Earnings (Unaudited)

Sempra Energy Adjusted Earnings and Adjusted Diluted Earnings Per Common Share (Adjusted EPS) exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows:

In 2019: Ŷ $45 million gain on the sale of certain Sempra Renewables assets Associated with holding the South American businesses for sale: Ŷ $89 million income tax benefit from outside basis differences in our South American businesses primarily related to the change in our indefinite reinvestment assertion from our decision in January 2019 to hold those businesses for sale and a change in the anticipated structure of the sale Ŷ $10 million income tax benefit to reduce a valuation allowance against certain net operating loss (NOL) carryforwards as a result of our decision to sell our South American businesses

In 2018: Ŷ $(22) million impacts associated with Aliso Canyon natural gas storage facility litigation at SoCalGas Ŷ $367 million gain on the sale of certain Sempra Renewables assets Ŷ $(145) million other-than-temporary impairment of certain U.S. wind equity method investments at Sempra Renewables Ŷ $(629) million impairment of certain non-utility natural gas storage assets at Sempra LNG Ŷ $(65) million impairment of RBS Sempra Commodities LLP (RBS Sempra Commodities) equity method investment at Parent and Other Ŷ $(85) million income tax expense in 2018 to adjust the Tax Cuts and Jobs Act of 2017 (TCJA) provisional amounts recorded in 2017

In 2017: Ŷ $(208) million write-off of wildfire regulatory asset at SDG&E Ŷ $(20) million associated with Aliso Canyon litigation reserves at SoCalGas Ŷ $(47) million impairment of Termoeléctrica de Mexicali (TdM) assets that were held for sale until June 2018 at Sempra Mexico Ŷ $5 million deferred income tax benefit on the TdM assets that were held for sale Ŷ $28 million of recoveries related to 2016 permanent releases of pipeline capacity at Sempra LNG Ŷ $(870) million income tax expense from the impact of the TCJA Sempra Energy Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and/or nature of the excluded items, management believes that these non-GAAP financial measures provide a meaningful comparison of the performance of Sempra Energy’s business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy GAAP Earnings and GAAP Diluted Earnings Per Common Share (GAAP EPS), which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

A-1

Reconciliation of Sempra Energy Adjusted Earnings to Sempra Energy GAAP Earnings (Unaudited) (continued)

Income tax Pretax expense Noncontrolling amount (benefit)(1) interests Earnings (Dollars in millions, except per share amounts; shares in thousands) Year ended December 31, 2019 Sempra Energy GAAP Earnings $2,055 Excluded items: Gain on sale of certain Sempra Renewables assets $ (61) $ 16 $ — (45) Associated with holding the South American businesses for sale: Change in indefinite reinvestment assertion of basis differences and structure of sale of discontinued operations —(89) —(89) Reduction in tax valuation allowance against certain NOL carryforwards — (10) —(10) Sempra Energy Adjusted Earnings $1,911 Diluted EPS: Weighted-average common shares outstanding, diluted 282,033 Sempra Energy GAAP EPS $7.29 Sempra Energy Adjusted EPS $6.78 Year ended December 31, 2018 Sempra Energy GAAP Earnings $924 Excluded items: Impacts associated with Aliso Canyon litigation $ 1 $ 21 $ — 22 Gain on sale of certain Sempra Renewables assets (513) 146 —(367) Impairment of U.S. wind equity method investments 200 (55) —145 Impairment of non-utility natural gas storage assets 1,117 (452) (36) 629 Impairment of investment in RBS Sempra Commodities 65 — —65 Impact from the TCJA — 85 —85 Sempra Energy Adjusted Earnings $1,503 Diluted EPS: Weighted-average common shares outstanding, diluted 269,852 Sempra Energy GAAP EPS $3.42 Sempra Energy Adjusted EPS $5.57 Year ended December 31, 2017 Sempra Energy GAAP Earnings $256 Excluded items: Write-off of wildfire regulatory asset $ 351 $ (143) $ — 208 Aliso Canyon litigation reserves 20 — —20 Impairment of TdM assets held for sale 71 — (24) 47 Deferred income tax benefit associated with TdM — (8) 3(5) Recoveries related to 2016 permanent release of pipeline capacity (47) 19 —(28) Impact from the TCJA — 870 —870 Sempra Energy Adjusted Earnings $1,368 Diluted EPS: Weighted-average common shares outstanding, diluted 252,300 Sempra Energy GAAP EPS $1.01 Sempra Energy Adjusted EPS $5.42 (1) Except for adjustments that are solely income tax and tax related to outside basis differences, income taxes on pretax amounts were primarily calculated based on applicable statutory tax rates. Income taxes associated with TdM were calculated based on the applicable statutory tax rate, including translation from historic to current exchange rates. An income tax benefit of $12 million associated with the 2017 TdM impairment has been fully reserved.

A-2 BOARD OF DIRECTORS Erbin B. Keith‡ Mia L. DeMontigny Deputy General Counsel Vice President, Chief Financial Officer, Chief Jeffrey W. Martin Accounting Officer, Controller and Treasurer Chairman and Chief Executive Officer, Brian L. Kelly Sempra Energy, San Diego, California Vice President—Federal Government Affairs Maria Angelica Espinosa Alan L. Boeckmann Faisel H. Khan Vice President and Chief Risk Officer Executive Chairman, Fluor Corporation, Senior Vice President—Finance Paul M. Goldstein and Investor Relations Irving, Texas Vice President—Customer Services Kathleen L. Brown Bruce E. MacNeil Partner, Manatt, Phelps & Phillips, LLP, Vice President and Treasurer Sandra K. Hrna Vice President—Human Resources, Former California State Treasurer, Sandeep K. Mor Los Angeles, California Diversity and Inclusion Vice President—Corporate Development Andrés Conesa, Ph.D. and Strategy Jawaad A. Malik Chief Executive Officer, Grupo Aeroméxico, Eric G. Trapp Vice President—Gas Acquisition S.A.B. de CV., Mexico City, Mexico Vice President—Security and Technology Neil P. Navinc Maria Contreras-Sweet Peter R. Wall Vice President—Gas Transmission and Storage Managing Partner, Contreras-Sweet Enterprises Vice President—Controller and and Rockway Equity Partners, and Former Guillermina Orozcoc Chief Accounting Officer Administrator of the U.S. Small Business Vice President—Gas Engineering and Administration, Los Angeles, California Paul H. Yong System Integrity Vice President—Corporate Tax and Pablo A. Ferrero c Chief Tax Counsel Rodger R. Schwecke Former Chief Executive Officer, Transportadora Senior Vice President—Gas Operations de Gas del Sur S.A., Buenos Aires, Argentina SAN DIEGO GAS & ELECTRIC and Construction William D. Jones Sharon L. Tomkins Chief Executive Officer, President and Director, Kevin C. Sagara‡ CityLink Investment Corporation, Chairman and Chief Executive Officer Vice President—Strategy and Engagement, and Chief Environmental Officer San Diego, California Scott D. Drury Bethany J. Mayer President Jeffery L. Walker Executive Partner, Siris Capital Group LLC, Caroline A. Winn Vice President—Customer Solutions New York, New York Chief Operating Officer Cedric L. Williamsc Michael N. Mears Bruce A. Folkmann Vice President—Construction Chairman, President and Chief Executive Officer, Senior Vice President, Chief Financial Officer, Magellan Midstream Partners LP, Tulsa, Oklahoma Denita A. Willoughby Chief Accounting Officer, Controller and Treasurer Vice President—Supply Management William C. Rusnack Karen L. Sedgwick and Supply Services Former President and Chief Executive Officer, Chief Human Resources Officer and Chief Premcor Inc., Marina Del Rey, California Administrative Officer Gillian A. Wright Lynn Schenk Senior Vice President—Customer Services Attorney in private practice and Scott B. Crider Vice President—Customer Services Former Member, U.S. House of Representatives, SEMPRA LNG San Diego, California Diana L. Day Vice President, General Counsel, and Chief Risk Officer Carlos Ruiz Jack T. Taylor Chief Executive Officer Former Chief Operating Officer-Americas and Estela de Llanos Executive Vice Chair of U.S. Operations, KPMG LLP, Vice President—Clean Transportation, Justin C. Bird Shreveport, Louisiana Sustainability and Chief Environmental Officer President Cynthia L. Walker David L. Geier Lisa Glatch Former Senior Vice President, Midstream Senior Vice President—Electric Operations Chief Operating Officer and Marketing, Occidental Petroleum Corp., Houston, Texas Benjamin W. Gordonc Amy H. Chiu Vice President—Te chnology Operations Chief Project Development Cynthia J. Warner and Infrastructure Management Chief Executive Officer and President, Renewable and Asset Management Officer Energy Group, Inc., Ames, Iowa Kendall K. Helm Martin S. Hupka Vice President—Customer Operations James C. Yardley Vice President, General Counsel and Chief Former President and Chief Executive Officer, Christina H. Ihrig Commercial Officer El Paso Pipeline GP Company LLC, Vice President—Operations Support Faisel H. Khan Houston, Texas John D. Jenkins Chief Financial Officer Vice President—Electric Systems Operations SENIOR MANAGEMENT TEAM Eugene W. Mitchellc Emily C. Shults Vice President—State Government Affairs Chief Marketing Officer SEMPRA ENERGY and External Affairs John Sowers Jeffrey W. Martin Miguel Romero Chief Transformation Officer Chairman and Chief Executive Officer Vice President—Energy Supply Glen A. Donovan George W. Bilicic Michael M. Schneider Vice President—Finance President and Chief Legal Officer Vice President—Risk Management and Compliance Michael A. Sliwowski Dennis V. Arriola Daniel F. Skopecc Vice President—Business Origination Executive Vice President and Group President Vice President—Regulatory Affairs Trevor I. Mihalik Michael R. VanderMate William H. Speer Vice President—Engineering and Construction Executive Vice President and Vice President—Electric Engineering and Chief Financial Officer Construction SEMPRA MEXICO Lisa Larroque Alexander* Vice President—Corporate Communications SOUTHERN CALIFORNIA GAS COMPANY Tania Ortiz and Sustainability J. Bret Lane* Chief Executive Officer, Robert J. Borthwick‡ Chairman and Chief Executive Officer Infraestructura Energética Nova, S.A.B. de C.V. Deputy General Counsel Maryam S. Brown Randall L. Clark* President * Director of Southern California Gas Company Senior Vice President and Chief Human Jimmie I. Cho ‡ Resources Officer Director of San Diego Gas & Electric Chief Operating Officer Kathryn J. Collier Director of both Southern California Gas Company and David J. Barrett San Diego Gas & Electric Vice President—Audit Services Vice President and General Counsel Jennifer F. Jett David L. Buczkowskic c Officer of both Southern California Gas Company Corporate Secretary Vice President—Gas Distribution and San Diego Gas & Electric

Directors and Senior Management Team as of March 12, 2020 CORPORATE INFORMATION

Transfer Agent News and Information Stock Exchange Listings American Stock Transfer Sempra Energy’s Annual Report on Sempra Energy Common Stock: & Trust Company, LLC Form 10-K filed with the Securities and Ticker Symbol: SRE Attn: Sempra Energy Exchange Commission which includes New York Stock Exchange 6201 15th Avenue as exhibits the certifications filed by Sempra Energy Preferred Stocks: Brooklyn, NY 11219 Sempra Energy’s chief executive officer Ticker Symbol: SREPRA Telephone: 877-773-6772 and chief financial officer under the New York Stock Exchange Email: [email protected] Sarbanes-Oxley Act of 2002, is available Hearing Impaired (TTY): to shareholders at no charge by writing Ticker Symbol: SREPRB 866-703-9077 or 718-921-8386 to the company’s Shareholder Services New York Stock Exchange Internet: www.astfinancial.com Department. This information, as well as Sempra Energy Subordinated Notes: our Corporate Governance Guidelines, Ticker Symbol: SREA Code of Business Conduct and Ethics for Shareholder Services New York Stock Exchange Investors with general questions Board of Directors and Senior Officers regarding Sempra Energy or and standing board committee charters, Direct Common Stock Investment Plan Southern California Gas Company are also available on the company’s Sempra Energy offers a Direct Common Stock securities should contact the website at Sempra.com. Investment Plan as a simple, convenient and company at: Investor Relations affordable way to invest in the company. Cash Sempra Energy dividends from a participant’s account can be Security analysts, portfolio managers Shareholder Services reinvested automatically in full or in part (but and other members of the financial 488 8th Avenue not less than 10% of each dividend) to purchase community should contact: San Diego, CA 92101 additional shares, or participants may choose to Telephone: 877-736-7727 Adam Pierce receive all or a portion of their cash dividends Email: [email protected] Lindsay Gartner electronically or by check. Participation in the plan Internet: Sempra.com Directors – Investor Relations requires an initial investment of as little as $500. Telephone: 619-696-2901 The plan allows additional cash investments of a minimum of $25 up to a maximum of $150,000 per calendar year. Brokerage commissions incurred in the purchase of shares will be paid by Sempra Energy. The plan is offered only by means of a prospectus, which can be obtained by calling the plan administrator, American Stock Transfer & Trust Company, LLC, at 877-773-6772, or through the Internet at www.astfinancial.com.

Information Regarding Forward-Looking Statements We make statements in this report that are not historical fact and 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 and uncertainties, and are not guarantees of performance. Future results may differ materially from those expressed in the forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the filing date of this report. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. In this report, forward-looking statements can be identified by words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “target,” “pursue,” “outlook,” “maintain,” or similar expressions, or when we discuss our guidance, strategy, goals, vision, mission, opportunities, projections or intentions. Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires and the risk that we may be found liable for damages regardless of fault and the risk that we may not be able to recover any such costs from insurance, the Wildfire Fund or in rates from customers; decisions, investigations, regulations, issuances of permits and other authorizations, renewal of franchises, and other actions by the Comisión Federal de Electricidad, California Public Utilities Commission, U.S. Department of Energy, Public Utility Commission of Texas, regulatory and governmental bodies and jurisdictions in the U.S. and other countries in which we operate; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision and completing construction projects on schedule and budget; (ii) obtaining the consent of partners; (iii) counterparties’ financial or other ability to fulfill contractual commitments; (iv) the ability to complete contemplated acquisitions and/or divestitures; and (v) the ability to realize anticipated benefits from any of these efforts once completed; the resolution of civil and criminal litigation, regulatory investigations and proceedings and arbitrations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow at favorable interest rates; moves to reduce or eliminate reliance on natural gas; weather, natural disasters, accidents, equipment failures, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, the failure of foreign governments and state-owned entities to honor the terms of contracts, and property disputes; the impact at San Diego Gas & Electric Company on competitive customer rates and reliability due to the growth in distributed power generation and from departing retail load resulting from customers transferring to Direct Access, Community Choice Aggregation or other forms of distributed power generation and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC’s (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director; volatility in foreign currency exchange, interest and inflation rates and commodity prices and our ability to effectively hedge the risk of such volatility; changes in trade policies, laws and regulations, including tariffs and revisions to or replacement of international trade agreements, such as the North American Free Trade Agreement, that may increase our costs or impair our ability to resolve trade disputes; the impact of changes to federal and state tax laws and our ability to mitigate adverse impacts; and other uncertainties, some of which may be difficult to predict and are beyond our control. We caution you not to rely unduly on any forward-looking statements. You should review and consider carefully the risks, uncertainties, and other factors that affect our business as described herein and in other reports that we file with the Securities and Exchange Commission.

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