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Sempra has announced strategic actions to advance its capital recycling programme, focusing on its Texas and California utilities.
The company aims to sell certain energy infrastructure assets in Mexico and a minority stake in Sempra Infrastructure Partners (Sempra Infrastructure).
The divestments are part of a broader strategy consisting of five value creation initiatives for 2025, designed to enhance long-term value for shareholders, employees, customers and other stakeholders.
Following completion, these transactions are expected to be accretive to the company's earnings-per-share forecast and improve credit.
Completion of the transactions is anticipated within the next 12–18 months, subject to agreements, approvals and other considerations.
Proceeds from the divestitures are expected to be recycled into the company's five-year capital campaign.
Sempra Infrastructure targets the sale of Ecogas México (Ecogas), which has three utility franchises and offers natural gas distribution services in the Mexicali, Chihuahua and La Laguna-Durango regions of Mexico.
It is claimed to be Mexico's fifth-largest distribution network, with more than 5,000km of pipelines providing natural gas to more than 600,000 consumers.
Sempra Infrastructure CEO Justin Bird said: "At Sempra Infrastructure, we are pursuing a series of exciting LNG [liquefied natural gas] growth opportunities that are expected to further America's position as a global leader in LNG exports.
"By focusing on the critical need for new energy infrastructure in North America, our company's pipeline of development projects is expected to provide benefits to a broader base of customers and differentiated growth for decades to come."
Sempra plans to sell a minority interest in Sempra Infrastructure, a North American energy infrastructure platform.
The proposed sale comes after Sempra's sale in 2021 of a 20% non-controlling stake, which was sold to Kohlberg Kravis Roberts & Co. for an implied equity value of around $16.9bn.
This was succeeded by a second transaction in 2022, where a 10% non-controlling interest was sold to the Abu Dhabi Investment Authority for an implied equity value of around $17.9bn.
Since then, Sempra Infrastructure is stated to have further enhanced its market value by expanding its LNG franchise, benefitting from strategic geographic positions along the Pacific and Gulf coasts of North America.
The company stated that the Energía Costa Azul LNG phase one project is on track to begin commercial operations in the spring of 2026. Meanwhile, construction of Port Arthur LNG Phase 1 is progressing as planned, with Trains 1 and 2 set to be operational in 2027 and 2028, respectively, all while staying within budget.