Risk Factors Update Summary

• The company faces risks related to delays in obtaining approvals from governmental agencies.
• Risks related to failures in obtaining permits, licenses, and approvals could materially affect the company.
• Debt service obligations may require additional equity securities issuances, impacting financial flexibility.
• Sempra Infrastructure is developing various projects, including a 300-MW wind generation facility.
• Increased regulatory oversight could impact transmission and distribution utilities, including additional regulatory requirements.
• Significant changes in executive officers' positions and ages, with notable shifts in roles and responsibilities.
• The company may face challenges due to increased legislation and regulation related to environmental compliance.
• The company may incur higher costs or face restrictions on operations due to noncompliance with approvals.
• Potential dilution of voting rights and economic interests due to the issuance of equity securities.
• Increase in the number of employees from 785 in 2022 to 835 in 2023, a 6.37% rise.
• The company faces evolving cybersecurity risks associated with infrastructure and personal data collection.
• A portion of financial exposure related to commodity price fluctuations is now hedged.
• Capital-intensive business with significant and increasing capital spending expected, potentially affecting financial health.
• Sempra Infrastructure owns a 40-mile natural gas pipeline and competes globally in marketing LNG.
• Credit rating agencies may downgrade credit ratings or place them on negative outlook, impacting financial metrics.
• Failure to obtain permits could materially adversely affect the company's operations and prospects.
• Debt service obligations expose the company to risks, potentially requiring additional equity securities issuances.
• The company may be required to adjust operations if approvals are suspended or terminated.
• LNG projects face increased political scrutiny due to global energy market dependencies.
• Expansion of cybersecurity risks due to evolving threats, including ransomware attacks and data breaches.
• Changes in the regulation or operation of the electric utility industry could negatively affect the company.
• Risks related to weather events, natural disasters, and physical attacks that could materially affect operations.
• Changes in interest rates could have a material adverse effect on the company's cash flows.
• The company faces climate change concerns, environmental compliance costs, and clean energy transition risks.