Sempra Sells Stake To Fund US Utility Growth

Group 1: Transaction Overview - Sempra announced a $10 billion deal to sell a 45% stake in Sempra Infrastructure Partners to KKR & Co and Canada Pension Plan Investment Board, expected to close in Q2 or Q3 of 2026 [1] - The agreement values Sempra Infrastructure Partners at $22.2 billion in equity and $31.7 billion in enterprise value, with KKR and partners holding 65% post-transaction and Sempra retaining 25% [2] Group 2: Strategic Implications - The transaction supports Sempra's capital recycling program and transition to a leading U.S. utility growth business, enhancing the company's balance sheet without new equity issuance [3] - The deal is aligned with Sempra's 2025–2029 capital plan funding [3] Group 3: Project Developments - Sempra Infrastructure Partners has made a final investment decision for Phase 2 of the Port Arthur LNG project, a $14 billion expansion targeting operations for Trains 3 and 4 in 2030 and 2031 [4] - The project secured $7 billion in equity financing led by Blackstone, with KKR, Apollo-managed funds, and Goldman Sachs participating, while Sempra retains majority control [5] Group 4: Construction and Partnerships - Bechtel Energy Inc. has been contracted for the construction of Phase 2, utilizing experience from Phase 1 to mitigate risks [6] - Phase 2 is supported by long-term sales agreements with major companies including ConocoPhillips, EQT Corp., and JERA Co. Inc. [6] Group 5: Financial Outlook - Sempra updated its 2025 GAAP earnings guidance to $3.29–$3.69 per share, down from previous estimates, while affirming adjusted EPS guidance of $4.30–$4.70 [7] - The company reaffirmed its 2026 adjusted EPS target of $4.80–$5.30 and projected annual earnings growth of 7% to 9% through 2029 [7]