#United States #Los Angeles #Preferred Stock #Sempra #SoCalGas

SoCalGas Moves Towards Simplification of Capital Structure

On August 7, 2026, the Southern California Gas Company (commonly referred to as SoCalGas) made a significant announcement regarding its financial strategy. The company's Board of Directors has officially approved the full retirement of all outstanding shares of its 6% Preferred Stock and 6% Preferred Stock, Series A. This move is designed to not only simplify the utility's capital structure but also to deliver immediate value to its shareholders.

Background to the Decision

The decision to retire the preferred shares comes in the wake of a special shareholder meeting held on August 6, 2026, where amendments and restatements to the company's Restated Articles of Incorporation were approved. This approval was essential as it laid the groundwork for the retirement process and included other related corporate governance changes.

With this strategic move, SoCalGas aims to modernize its business operations, aligning them with the evolving demands of its stakeholders. The retirement is not just a financial maneuver; it's part of SoCalGas's broader commitment to enhancing shareholder equity and operational efficiency.

Retirement Payment Details

SoCalGas plans to file its Restated Charter with the California Secretary of State on August 17, 2026, which is designated as the official Retirement Date. As part of this retirement plan, shareholders will receive a cash payment of $31.135616 per share. This payment is comprised of a base amount of $31.00 per share, plus any accrued and unpaid dividends that have accumulated until the retirement date.

The payment is set to be distributed to holders of record for both the Preferred Stock and Series A Preferred Stock on the retirement date. It should be noted that after this process, no shares of the preferred stock will remain outstanding, indicating a significant shift in the company's financial landscape.

Market Implications

In an effort to facilitate an orderly retirement process, SoCalGas intends to voluntarily withdraw the Preferred Stock and Series A Preferred Stock from quotation on the OTCQB market. This withdrawal will become effective after market close on August 13, 2026. By doing so, SoCalGas is taking steps to streamline its capital resources, enabling a clearer focus on its core business functions and long-term goals.

Key Focus on Value Delivery

The retirement of preferred stock shares is a crucial step for SoCalGas not only in terms of financial benefits but also as a message to investors about its commitment to safeguarding their interests. By simplifying its capital structure and proactively returning value to its shareholders, the company demonstrates a clear intent to foster growth and stability.

About SoCalGas

SoCalGas, a subsidiary of Sempra Energy, operates as the largest gas distribution utility in the United States, catering to over 21 million customers across approximately 24,000 square miles in Central and Southern California. The company's mission revolves around providing safe, reliable, and affordable energy delivery, while also being a recognized leader in the energy sector. Its contributions to the community and commitment to responsible business practices earned it the title of Corporate Member of the Year from the Los Angeles Chamber of Commerce.

As the energy sector continues to evolve, SoCalGas remains poised to adapt and respond to any changes in the market landscape, ensuring its legacy of reliability and service excellence throughout the communities it serves. For more updates, stakeholders and the public can visit SoCalGas's website or connect with them on social media.