July 17, 2025

Creating shareholder value: Sempra’s mission-driven strategy

Submitted by sempra_ian on Wed, 07/09/2025 - 09:49

Editor’s Note: Earlier this year, Sempra announced a focus on five value-creation initiatives in 2025. Over the next few months, this spotlight series will explore these initiatives in more detail, beginning with the overview below.

Sempra is advancing its mission to become North America’s premier energy infrastructure company by making new infrastructure investments to meet rising energy demand, while advancing important safety and reliability goals. As such, the company with its three growth platforms – Sempra California, Sempra Texas and Sempra Infrastructure – is well-positioned for a decisive decade of growth. Importantly, Sempra’s ability to execute a portfolio of new investment opportunities is supported by responsible business practices, strong governance and independent oversight by our Board of Directors.

“At Sempra, we are proud to be investing in the future – supporting jobs, communities and economic growth in some of the leading economies in North America,” said Jeffrey W. Martin, chairman and CEO of Sempra. “That’s why we are taking affirmative steps to help expand this country’s energy network as a force for economic strength, security and shared prosperity.”

With a clear strategic vision and disciplined financial approach, the company is advancing five bold value creation initiatives in 2025. These initiatives are not only designed to deliver shareholder value but also are expected to tangibly benefit the nearly 40 million consumers Sempra serves daily – including by providing safer, more reliable and more affordable energy.

Five bold initiatives are driving Sempra’s growth strategy

In 2025, Sempra’s corporate strategy centers on five value creation initiatives designed to continue simplifying Sempra’s business model, mitigating risk and improving financial performance. The company expects these initiatives to strengthen its ability to deliver improved earnings growth while driving enhanced benefits for customers and communities across its service territories.

Investing $13 billion to modernize energy infrastructure

Sempra plans to invest approximately $13 billion in energy infrastructure this year, with its investment campaign primarily focused on utility investments in Texas and California.¹

These investments are funding initiatives to expand and modernize the grid, while enhancing safety and reliability. Moreover, by seeking to improve the regulatory compact in jurisdictions where it operates, Sempra aims to deliver improved financial returns with less risk, while also advancing the energy systems that power American business and the lives of millions of consumers.
Unlocking value in the LNG franchise

In the first quarter, Sempra initiated a process to sell an ownership stake in Sempra Infrastructure Partners, one of North America’s leading energy infrastructure platforms with a strong and competitive position in liquefied natural gas (LNG). This follows previous successful transactions with KKR and the Abu Dhabi Investment Authority in 2021 and 2022, respectively. The proposed transaction is expected to be accretive to earnings-per-share forecasts and enhance credit, while highlighting improvement in the underlying value of the company’s competitive position in LNG.
Divesting non-core assets in Mexico to simplify the business

As part of Sempra’s ongoing portfolio enhancements, Sempra Infrastructure is targeting the sale of Ecogas México, a regulated natural gas distribution utility serving over 600,000 customers across three regions in Northern Mexico. This proposed divestiture would support Sempra’s strategy to simplify its business, reduce portfolio risk and recycle capital into a growing portfolio of investment opportunities in its U.S. utilities.
Executing Fit for 2025 to improve efficiency

Fit for 2025 is a company-wide initiative focused on reducing internal costs, improving productivity and aligning Sempra’s cost structure with its future business needs – with the goal of continuing to improve the affordability of our services. This includes voluntary retirement programs, outsourcing opportunities and investing in new and advanced and next-gen technologies such as artificial intelligence.
Enhancing community safety and operational excellence

Sempra continues to prioritize safety and operational excellence across its three growth platforms. These efforts include strengthening the energy grid to improve reliability, making smart investments to help reduce risk from wildfires and extreme weather events and supporting community safety programs. By investing in safety and reliability, Sempra is strengthening the resilience of its network against extreme weather risks to maintain a dependable energy supply, while helping its customers and communities continue to thrive and grow.

How Sempra’s 2025 plan can create lasting value

As these five value creation initiatives continue to take shape over 2025 and beyond, Sempra will strive to become a stronger and more successful company. Backed by a clear strategy, a high-performance culture and a commitment to serving the evolving needs of customers and communities, Sempra is not just navigating the future of energy—it is actively shaping it.

“With this roadmap for value creation in 2025, we expect to continue recycling capital into the strong growth in our U.S. utilities, where we have improving visibility to a portfolio of attractive investment opportunities," said Martin.

With a strengthening balance sheet, a disciplined approach to capital deployment and a growing share of earnings expected to originate from its U.S. utilities businesses, Sempra remains well-positioned to deliver consistent, long-term value.

Visit Sempra’s investor relations site to learn more about Sempra’s efforts to improve value for shareholders and other stakeholders through its disciplined capital recycling program, prudent capital allocation, and safety and operational excellence.

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Reflects Sempra’s projected capital investments for 2025 within its 2025-2029 capital plan. Sempra’s 2025-2029 capital plan (i) includes Sempra’s proportionate ownership interest in projected capital expenditures at unconsolidated equity method investees while excluding Sempra’s projected future contributions to those equity method investees and (ii) excludes noncontrolling interests’ proportionate ownership interest in projected capital expenditures at Sempra and at unconsolidated equity method investees.

This article contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this article. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

In this article, forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “initiative,” “target,” “outlook,” “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, rates from customers or a combination thereof; decisions, denials of cost recovery, audits, investigations, inquiries, ordered studies, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), Comisión Nacional de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service, Public Utility Commission of Texas and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) negotiating pricing and other terms in definitive contracts, (iii) completing construction projects or other transactions on schedule and budget, (iv) realizing anticipated benefits from any of these efforts if completed, (v) obtaining regulatory and other approvals and (vi) third parties honoring their contracts and commitments; changes to our capital expenditure plans and their potential impact on rate base or other growth; changes, due to evolving economic, political and other factors, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries, and (ii) laws and regulations, including those related to tax and the energy industry in the U.S. and Mexico; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact on affordability of San Diego Gas & Electric Company’s (SDG&E) and Southern California Gas Company’s (SoCalGas) customer rates and their cost of capital and on SDG&E’s, SoCalGas’ and Sempra Infrastructure’s ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices and the imposition of tariffs, (ii) with respect to SDG&E’s and SoCalGas’ businesses, the cost of meeting the demand for lower carbon and reliable energy in California, and (iii) with respect to Sempra Infrastructure’s business, volatility in foreign currency exchange rates; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power, natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid or pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; Oncor Electric Delivery Company LLC’s (Oncor) ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director; and other uncertainties, some of which are difficult to predict and beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.