Sempra Announces Strategic Transactions Advancing Goal of Building Leading U.S. Utility Growth Business

Core Viewpoint - Sempra is implementing strategic actions to enhance its corporate strategy through five value creation initiatives aimed at simplifying its business model, improving financial performance, and reducing risk, ultimately leading to better earnings growth and benefits for customers and communities [1][2]. Group 1: Strategic Actions - The company is advancing its capital recycling program and transitioning to a leading U.S. utility growth business [2]. - Sempra has agreed to sell a 45% equity interest in Sempra Infrastructure Partners for $10 billion, which implies an equity value of $22.2 billion and an enterprise value of $31.7 billion for Sempra Infrastructure Partners [3][4][26]. - The transaction is expected to close in Q2 – Q3 2026, pending regulatory approvals [5]. Group 2: Financial Implications - Sempra will receive 47% of the cash at closing, 41% by year-end 2027, and the remainder approximately seven years after closing, allowing for attractive post-closing interest income [4]. - The transaction is projected to strengthen Sempra's credit profile, improve its business mix with a goal of approximately 95% earnings from regulated U.S. utilities, and eliminate the need for equity issuances in the 2025-2029 capital plan [6][15]. Group 3: Project Developments - Sempra Infrastructure Partners has reached a final investment decision for Port Arthur LNG Phase 2, which will include two natural gas liquefaction trains and a storage tank with a capacity of approximately 13 million tonnes per annum [6][10]. - The estimated capital expenditures for Phase 2 are $12 billion, plus an additional $2 billion for shared common facilities, with commercial operations expected in 2030 and 2031 [6][10]. Group 4: Earnings Guidance - Sempra updated its full-year 2025 EPS guidance range to $3.29 to $3.69 and affirmed its adjusted EPS guidance range of $4.30 to $4.70 [10][19]. - The company also affirmed its 2026 adjusted EPS guidance range of $4.80 to $5.30 and projected a long-term EPS compound annual growth rate of 7% to 9% for 2025 through 2029 [10][19].