Sempra (SRE): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Sempra (SRE) is engineering its future, and it boils down to a sharp pivot: doubling down on reliable, regulated utility returns while funding growth through strategic asset sales. After all, managing a utility-centric future means executing a $13 billion capital plan for 2025 to harden infrastructure, all while aiming for that $4.30 to $4.70 adjusted EPS guidance. This Business Model Canvas distills that complex strategy, showing you the key partnerships-like those with KKR and CPP Investments-and the massive revenue streams from both regulated assets and long-term LNG contracts that underpin this transformation. Dive in below to see the full nine blocks that define their current path.

Sempra (SRE) - Canvas Business Model: Key Partnerships

The Key Partnerships for Sempra Infrastructure Partners involve significant capital investment and long-term offtake agreements essential for project financing and development.

The transaction involving the sale of a 45% equity stake in Sempra Infrastructure Partners to a consortium led by KKR and Canada Pension Plan Investment Board (CPP Investments) implies an equity value of US$22.2 billion and an enterprise value of US$31.7 billion for the platform.

Following the closing, which is expected in Q2 - Q3 2026, the ownership structure of Sempra Infrastructure Partners is set as follows:

CPP Investments specifically entered an agreement to acquire an approximate 13% indirect equity interest from Sempra for approximately US$3.0 billion. At June 30, 2025, the CPP Fund totaled C$731.7 billion and delivered a net return of 9.3% for the fiscal year 2025.

For the Port Arthur LNG Phase 2 development, which has incremental project CAPEX estimated at US$12 billion plus an approximate US$2 billion payment for shared common facilities, equity funding was secured:

• Blackstone Credit & Insurance (BXCI) is leading a $7 billion investment.
• The BXCI-led investor consortium acquired a 49.9% minority equity interest in the project.
• Sempra Infrastructure Partners retained a 50.1% majority stake in the project.
• Phase 2 has a nameplate capacity of approximately 13 million tpy of US-produced LNG.
• Commercial operations are targeted for 2030 and 2031 for Trains 3 and 4, respectively.

ConocoPhillips is a key offtake partner, having signed a definitive 20-year Sale and Purchase Agreement (SPA) for 4 Mta of LNG from Port Arthur LNG Phase 2. This extends the relationship from a prior 20-year deal signed in 2022 for 5 MMtpa from Phase 1, where ConocoPhillips also holds a 30% equity stake.

The United States LNG export capacity is projected to reach 115 million metric tons per annum before the end of 2025.

Sempra (SRE) - Canvas Business Model: Key Activities

You're looking at the core actions Sempra (SRE) is taking right now to run and grow its business as of late 2025. It's a mix of running the pipes and wires, building big export projects, and managing the regulators who set the rates. Honestly, the numbers show a clear pivot toward the regulated utility side.

Regulated electric and natural gas transmission and distribution in California and Texas

The foundation of Sempra (SRE) is its regulated footprint, serving a massive customer base across two key states. This activity involves keeping the lights on and the gas flowing reliably for millions of people.

• Serving nearly 40 million consumers across its utility subsidiaries.
• Oncor Electric Delivery Company in Texas is executing on a \$36 billion, five-year capital plan.
• Oncor saw a rate base growth of 15% between 2023 and 2024.
• In Q2 2025, Sempra California utilities invested over \$1.2 billion of capital to modernize energy networks.

Here's a quick look at the scale of investment in the regulated space for 2025:

Executing the $13 billion 2025 capital plan to modernize infrastructure

The 2025 capital plan is the immediate deployment roadmap, heavily weighted toward the regulated assets. This activity is about putting capital to work to maintain and upgrade the existing network.

Sempra's projected capital expenditures for Property, Plant, and Equipment (PP&E) and investments in 2025 were expected to total \$12.5B in one filing, aligning with the broader \$13 billion target. This focus supports a long-term EPS Compound Annual Growth Rate (CAGR) target of 7% to 9% for 2025 through 2029.

Developing and constructing major LNG export facilities (e.g., Port Arthur LNG Phase 2)

This is the growth engine outside the core regulated utilities, focusing on unlocking value in the LNG franchise. The major activity here is advancing the Port Arthur LNG Phase 2 project following a Final Investment Decision (FID) in late 2025.

The activity also includes executing a sale of a 45% stake in Sempra Infrastructure Partners for a deal valued at \$22.2 billion in one report, or a \$10 billion sale to KKR and CPP Investments in another, to help fund the capital plan.

Managing regulatory relationships and rate cases (e.g., CPUC, PUCT)

You can't spend billions in regulated territory without the green light from the commissions. This activity is about securing the necessary cost recovery and investment allowances.

• Sempra Texas (Oncor) secured PUCT approval for its System Resiliency Plan, including nearly \$3 billion of capital expenditures.
• The PUCT-approved resiliency plan also includes over \$500 million in incremental operations and maintenance expenses.
• Sempra California utilities filed for a cost of capital period of 2026 to 2028 with the CPUC in March 2025.
• SDGE is seeking CPUC approval to save customers nearly \$300 million between 2026 and 2031 by phasing out certain programs.

Implementing 'Fit for 2025' for productivity improvements and cost reductions

This is the internal operational activity focused on efficiency, which is key to hitting earnings guidance while managing costs. It's one of the five stated value creation initiatives for 2025. The goal is to simplify the business model and improve financial strength.

The company affirmed its full-year 2025 adjusted EPS guidance range of \$4.30 to \$4.70, which relies on successful execution across all initiatives, including 'Fit for 2025.'

Sempra (SRE) - Canvas Business Model: Key Resources

Regulated rate base assets in Texas (Oncor) and California (SDG&E, SoCalGas)

Long-term LNG offtake contracts with high-quality global counterparties

Extensive transmission and distribution network serving ~25 million consumers

• Sempra delivers energy to nearly 40 million consumers across North America.
• Sempra California (SDG&E and SoCalGas) serves roughly 25 million consumers.
• Oncor Electric Delivery Company LLC serves more than 13 million Texans.
• Oncor increased premises served by almost 19,000 in the first quarter of 2025.

Strategic LNG export facilities on both the Pacific (ECA) and Atlantic (Port Arthur) coasts

Intellectual property and expertise in wildfire mitigation and grid resilience

• Sempra California opened a new Wildfire and Climate Resilience Center.
• Oncor's System Resiliency Plan includes nearly $3 billion of capital expenditures.
• Oncor's System Resiliency Plan includes over $500 million in incremental operations and maintenance expenses.
• In Q2 2025, SDG&E was awarded an estimated $600 million of projects by the California Independent System Operator for transmission upgrades.

Sempra (SRE) - Canvas Business Model: Value Propositions

Safe, reliable, and affordable delivery of essential energy services is underpinned by significant capital deployment across Sempra's regulated utilities.

Sempra has a capital investment plan of $56 billion for 2025-2029, with approximately $13 billion planned for energy infrastructure investments in 2025 alone. Over 90% of this $56 billion plan is allocated to regulated utility investments in California and Texas.

Consistent, regulated returns are targeted through this growth in the asset base, with management reaffirming financial expectations for the period.

• Long-Term Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) target: 7% to 9%
• Affirmed Full-Year 2025 Adjusted EPS Guidance Range: $4.30 to $4.70
• First Quarter 2025 Adjusted EPS: $1.44
• Projected 2026 Adjusted EPS Guidance Range: $4.80 to $5.30

Global energy security is advanced via U.S.-produced liquefied natural gas (LNG) exports, with major projects reaching critical milestones in 2025.

Sempra reached the Final Investment Decision (FID) for Port Arthur LNG Phase 2 in September 2025, representing a $14 billion investment to add 13 Mtpa of capacity. Port Arthur Phase 1 is targeted to begin exporting LNG in 2027. The Cameron LNG terminal operates three trains with a capacity of 12 mtpa and loaded nearly 200 cargoes in 2024.

Commitment to energy transition is demonstrated through grid modernization and low-carbon solutions integration.

The 2025-2029 capital plan includes investments supporting the energy transition. As of Dec. 31, 2024, Sempra Infrastructure had 1,044 megawatts (MW) of fully contracted nameplate capacity from operating wind and solar facilities. Within the San Diego Gas & Electric (SDG&E) service area, residential and commercial rooftop solar capacity totaled 2,318 MW at the end of 2024.

Enhanced community safety is addressed via hardened transmission systems in high-risk areas, particularly in Texas.

Oncor's System Resiliency Plan includes over $500 million in incremental operations and maintenance expenses, alongside nearly $3 billion in capital expenditures, designed to reduce risk. Oncor operates more than 143,000 miles of transmission and distribution (T&D) lines in Texas.

Sempra (SRE) - Canvas Business Model: Customer Relationships

Sempra (SRE) manages customer relationships across two distinct, yet interconnected, models: the highly regulated utility platform serving millions in California and Texas, and the global energy infrastructure business secured by long-term contracts.

Regulated service model with mandated reliability and safety standards

For Sempra California, the relationship is direct and mandated by state regulators. The company serves as a dual-utility platform connecting roughly 25 million consumers to safe, reliable, and affordable energy as of the second quarter of 2025. Across all operations, Sempra is focused on delivering energy to nearly 40 million consumers. The relationship is heavily influenced by regulatory outcomes that determine cost recovery and service standards.

The approved revenue requirements from the California Public Utilities Commission (CPUC) dictate the financial basis for service delivery. For instance, the 2024 General Rate Case (GRC) approval for San Diego Gas & Electric Company (SDG&E) authorized a 2024 test year revenue requirement of $2,699 million, split into $2,193 million for electric operations and $506 million for natural gas operations. Southern California Gas Company (SoCalGas) received approval for a 2024 revenue requirement of $3,806 million. Future annual adjustments are set by these approvals; for example, SDG&E's 2025 revenue requirement is set for a 5.45% incremental increase over 2024, while SoCalGas's is set for a 5.00% increase.

Reliability is a key focus, especially in Texas through the Oncor subsidiary. Oncor added nearly 20,000 new premises during the second quarter of 2025. At the end of Q2 2025, Oncor had over 1,120 active transmission point of interconnection requests in its queue, representing a nearly 40% increase compared to the end of Q2 2024.

Long-term, take-or-pay contracts for LNG capacity (20-year SPAs)

Sempra Infrastructure secures its customer relationships in the global market through long-term, capacity-based contracts, which are critical following the Q3 2025 final investment decision on Port Arthur LNG Phase 2. These agreements are typically 20-year Sales and Purchase Agreements (SPAs) that function as take-or-pay commitments.

Here are the key long-term LNG offtake commitments announced for the Port Arthur LNG Phase 2 development:

The Port Arthur LNG Phase 1 project, which reached FID in March 2023, has a capacity of about 13 mtpa. With the addition of Phase 2, the total liquefaction capacity is expected to reach about 26 mtpa when complete.

Public and regulatory engagement for rate case approvals and capital recovery

The relationship with customers in California is mediated through the CPUC, which approves the recovery of capital and operational costs necessary for safety and reliability. The 2024 GRC decision, adopted in December 2024, provides revenue requirement visibility through 2027.

Wildfire mitigation cost recovery is a major point of regulatory engagement. For SDG&E's 2024 GRC Track 2 request, which covered incurred costs from 2019 through 2022, the CPUC Proposed Decision (PD) authorizes a total Track 2 revenue requirement of $721 million for 2019 through 2027, against a request of $1,148 million. An interim mechanism already allowed SDG&E to collect $194 million in 2024 and $96 million in 2025.

The cost of capital proceeding for 2026 to 2028 is also key to customer rates:

• The PD for the Cost of Capital proceeding sets a return on common equity resulting in weighted returns on rate base of 7.39% for SDG&E and 7.49% for SoCalGas.
• SDG&E and SoCalGas filed their applications to update costs of capital for the 2026 to 2028 period in March 2025.

Customer service centers and digital platforms for billing and outage reporting

Sempra California utilities use customer service centers and digital platforms to manage daily interactions for billing and outage reporting for the millions of consumers they serve.

• Sempra California serves roughly 25 million consumers.
• SDG&E and SoCalGas are executing initiatives projected to save customers over $300 million between 2026 and 2031.

Stakeholder collaboration on infrastructure investment and policy

Collaboration with state agencies and grid operators shapes infrastructure investment, which is then recovered from ratepayers. SDG&E was awarded an estimated $600 million of projects under the California ISO's 2024 - 2025 Transmission Plan. During Q2 2025, SDG&E and SoCalGas invested over $1.2 billion of capital in upgrades.

In Texas, Oncor is expected to fund more than half of the investment for the ERCOT 765-kV Strategic Transmission Expansion Plan. Sempra's five-year capital plan through 2029 is approximately $56 billion, with over 90% focused on regulated utility investments in Texas and California.

Sempra (SRE) - Canvas Business Model: Channels

You're looking at how Sempra (SRE) gets its value proposition-reliable energy delivery and LNG export-into the hands of its customers and investors. For a massive utility holding company like Sempra, the channels are physical infrastructure, regulatory approvals, and the financial markets themselves. It's a complex delivery system, honestly.

Physical transmission and distribution lines (electric and natural gas pipelines)

The core of Sempra's channel is the physical network moving electrons and molecules. This is where the bulk of the $56 billion capital plan (2025-2029) is going, with over 90% earmarked for these regulated assets in Texas and California. For the current year, Sempra outlined about $13 billion in energy infrastructure investments for 2025, with over $10 billion specifically for its U.S. utilities.

The sheer scale of this physical channel is impressive:

• Across the entire company, Sempra maintains roughly 300,000 miles of transmission and distribution lines.
• Specifically, Sempra Texas, through Oncor, operates more than 144,000 circuit miles of transmission and distribution lines, connecting communities across the state.
• Oncor is actively expanding this, having built, rebuilt, or upgraded nearly 800 miles of transmission and distribution power lines in the first quarter of 2025 alone.
• Sempra Infrastructure's energy networks also include more than 5,100 miles of natural gas transportation and distribution pipelines.

Direct utility service to residential, commercial, and industrial end-users

The end-users are the direct recipients of the service delivered through those lines. Sempra's regulated utilities serve nearly 40 million consumers across its footprint in California and Texas. This customer base is the foundation for the regulated earnings growth Sempra is targeting, aiming for a long-term EPS CAGR of 7% to 9% for 2025 through 2029.

Here is a breakdown of the customer reach across key regulated and partially-owned entities:

The demand driving this channel is significant; regulators in Texas expect electricity demand to nearly double by 2030.

Global shipping and maritime logistics for LNG export

For Sempra Infrastructure, the channel shifts to global logistics, connecting U.S. supply to international markets, primarily through its Gulf Coast LNG export facilities. Cameron LNG, where Sempra Infrastructure owns a 50.2 percent interest, operates three trains with a nameplate capacity of 13.5 million tonnes per annum (Mtpa) of LNG. The planned expansion (Phase 2) aims to add another 6.75 Mtpa.

Sempra is actively working to sanction its next major export channel, Port Arthur LNG Phase 2, targeting a Final Investment Decision (FID) in 2025. This project has estimated incremental project capital expenditures of $12 billion. To secure the offtake channel for this, Sempra executed a 20-year Sale and Purchase Agreement (SPA) with JERA Co. Inc. for 1.5 Mtpa of LNG from Phase 2 in July 2025.

The existing LNG export capacity is a major component of U.S. global share:

• America holds a 25% market share in LNG globally.
• Roughly 50% of the LNG landed in Europe originates from the U.S..

Regulatory filings and public hearings (for rate base and capital recovery)

For the utility businesses, the regulatory process is the channel to recover capital investments and earn a return. The CPUC decision in late 2024 authorized revenue requirements for SoCalGas and SDG&E through 2027, with attrition year adjustments for 2025 through 2027.

Key authorized revenue figures impacting 2025 recovery include:

• SoCalGas adopted 2024 revenue requirement: $3.806 billion (a 9.3% increase over 2023).
• SDG&E adopted 2024 combined revenue requirement: $2.699 billion (a 7.5% increase over 2023).
• SDG&E's FERC TO6 filing proposes an increase to its base Return on Equity (ROE) from 10.10% to 11.75% (totaling 12.25% with the adder).

Oncor in Texas also filed for a comprehensive base rate review with the PUCT to support its service to over 13 million Texans.

Investor relations and financial markets for capital funding

The financial markets are the channel for funding the massive capital plan. Sempra affirmed its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70. This guidance underpins investor confidence in the regulated asset base growth.

To fund growth and simplify the business, Sempra is actively recycling capital:

• Sempra entered a nonbinding letter of intent with KKR for an equity sale at Sempra Infrastructure, potentially in the 15% to 30% range.
• The sale of Ecogas is also anticipated to close mid-2026.

The company's Q3 2025 revenue was reported at $3.15 billion, with an Adjusted EPS of $1.11 for that quarter. Finance: draft 13-week cash view by Friday.

Sempra (SRE) - Canvas Business Model: Customer Segments

Regulated Residential and Small Commercial Customers (California and Texas)

Sempra's regulated utilities serve a massive base of residential and small commercial energy users across two major US economic centers. Sempra California, which includes San Diego Gas & Electric (SDGE) and Southern California Gas Company (SoCalGas), provides energy to roughly 25 million consumers in Southern and Central California. Over in Texas, Oncor Electric Delivery Company LLC serves approximately 13 million Texans. The growth in the Texas service territory is notable; Oncor added almost 20,000 new premises served in the second quarter of 2025 alone.

The regulated utility rate base is a key focus for capital deployment. Sempra expects its total utility rate base to grow from $57 billion in 2025 to $80 billion by 2029. For example, Sempra California utilities invested over $1.2 billion of capital in the second quarter of 2025. The Texas operations are executing a five-year capital plan of $36.1 billion as of Q1 2025, with over 90% of Sempra's record five-year capital plan of $56 billion focused on these regulated utilities.

Large Commercial and Industrial (C&I) Users (including data centers in Texas)

The demand from large energy users, particularly data centers, is a significant driver for infrastructure investment, especially in Texas. At the end of 2024, Oncor's interconnection queue showed 137 gigawatts of potential load from large commercial and industrial customers. That figure represented an approximate 250% increase from the end of 2023. By the end of the second quarter of 2025, Oncor had over 1,120 active transmission point of interconnection requests in queue, a nearly 40% increase compared to the end of Q2 2024. These requests were split almost evenly between generation projects and large C&I customers.

The growth in Texas is underpinned by new regulatory mechanisms, like the Unified Tracker, designed to improve cost recovery for these utility investments. Sempra noted that the growth in Texas is driven largely by demand from data centers and other energy-intensive industries.

• Oncor Q2 2025 active interconnection requests: Over 1,120.
• Increase in active requests (Y/Y as of Q2 2025): Nearly 40%.
• Oncor 2024 C&I Interconnection Queue Load: 137 gigawatts.
• Interconnection Load Growth (2023 to 2024): Approximately 250%.

Global Energy Companies and Utilities (long-term LNG buyers like JERA)

Sempra Infrastructure serves global energy companies and utilities through its LNG export facilities. The existing three-train Cameron LNG facility in Louisiana has a liquefaction capacity of approximately 12 million tons per annum (Mtpa). In 2024, Cameron LNG loaded nearly 200 cargoes. The Port Arthur LNG Phase 1 project in Texas is planned with a total capacity of about 13 Mtpa. Sempra Infrastructure is targeting a Final Investment Decision (FID) in 2025 for the Port Arthur LNG Phase 2 development project. This Phase 2 project already has a proposed equity investment with a subsidiary of Saudi Aramco anchored by a non-binding HOA.

Wholesale Energy Markets (for power and gas trading)

Sempra Infrastructure connects customers in global energy markets, which includes participation in wholesale trading of power and gas. The company's strategy involves developing, building, operating, and investing in modern energy infrastructure, including LNG and low-carbon solutions. While specific 2025 trading volumes aren't detailed here, the segment's focus is on capitalizing on growing demand for secure energy in global markets.

Government and Regulatory Bodies (as key stakeholders and revenue determiners)

Government and regulatory bodies are critical stakeholders, directly influencing revenue streams and capital deployment through rate cases and project approvals. For instance, Sempra lowered its 2025 EPS guidance to account for regulatory rulings that fell short of forecasts and the anticipated impact of a potential new rate case filing in Texas. The Public Utility Commission of Texas (PUCT) approved Oncor's System Resiliency Plan (SRP), which includes nearly $3 billion of capital expenditures. In California, the California Public Utilities Commission (CPUC) approval is pending for efforts like SDGE's plan to save customers nearly $300 million between 2026 and 2031.

• 2025 Adjusted EPS Guidance Range: $4.30 to $4.70.
• Projected Long-Term EPS Growth Rate (through 2029): 7% to 9%.
• Oncor SRP Capital Expenditures: Nearly $3 billion.
• SDGE Customer Savings Goal (2026-2031): Nearly $300 million.

Sempra (SRE) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Sempra's massive infrastructure running and growing. For a utility holding company like Sempra, the cost structure is dominated by long-term asset investment and the operational costs tied to serving millions of customers across Texas and California. Honestly, the sheer scale of the capital required to maintain and upgrade the grid is the biggest line item you need to watch.

High Capital Expenditures (CapEx) for Infrastructure

Sempra has committed to a substantial investment cycle. The planned energy infrastructure investment for the year 2025 stands at approximately $13 billion. This figure is a key part of the larger five-year capital plan spanning 2025 through 2029. A significant portion of this CapEx, over $10 billion, is allocated directly to the U.S. utilities, primarily supporting Oncor's growth in Texas.

Significant Operations and Maintenance (O&M) Costs, including Wildfire Mitigation

Day-to-day running costs are heavy, especially with the focus on safety and reliability. For instance, Sempra Texas's System Resiliency Plan included over $500 million in incremental operations and maintenance expenses to reduce risk. In California, the costs associated with wildfire mitigation are a major component of O&M, though recovery is subject to regulatory approval.

• Sempra California Operation and Maintenance expense for the six months ended June 30, 2025, totaled $2,582 million.
• For SDG&E's 2024 General Rate Case Track 2, the CPUC Proposed Decision approved $91 million of requested wildfire mitigation O&M costs incurred from 2019 through 2022.
• The same Proposed Decision denied $193 million of requested SDG&E O&M costs related to wildfire programs.

Interest Expense on Long-Term Debt

Servicing the debt required to fund this infrastructure is a constant, non-discretionary cost. As of the close of the third quarter of 2025, Sempra's long-term debt and finance leases stood at $28,985 million (or $28.985 billion). This is down from $31,558 million at the end of 2024, reflecting progress in capital recycling efforts. To give you a sense of the impact on the books, Sempra California reported $16 million higher net interest expense for the nine months ended September 30, 2025, compared to the prior year period.

Fuel and Purchased Power Costs (Variable Cost of Energy Supply)

These costs fluctuate with commodity markets, making them a variable element in the overall structure. For the first six months of 2025, the Cost of electric fuel and purchased power for the consolidated entity was $(143) million.

Regulatory and Compliance Costs

Compliance and navigating rate case proceedings directly translate into costs, whether they are incurred now or affect future revenue recovery. You have to factor in the costs of seeking approval for the massive CapEx plan.

The regulatory environment in California creates specific cost pressures, such as the fact that the CPUC Proposed Decision authorized a total Track 2 revenue requirement of $721 million for 2019 through 2027, which was $427 million lower than SDG&E's requested $1,148 million for those wildfire-related costs.

Sempra (SRE) - Canvas Business Model: Revenue Streams

You're looking at how Sempra converts its assets and operations into actual cash flow as of late 2025. The business model is clearly pivoting, leaning heavily on the stability of regulated assets while using infrastructure asset sales to fund that regulated growth and high-potential LNG projects. Honestly, the revenue stream composition reflects a deliberate shift toward a 'leading U.S. utility growth company' strategy.

Regulated Utility Earnings (from rate base investments in California and Texas)

The core of Sempra's dependable earnings comes from its regulated utilities, San Diego Gas & Electric Company (SDGE), Southern California Gas Company (SoCalGas Co.), and Oncor in Texas. These earnings are directly tied to the rate base-the value of assets regulators allow them to earn a return on. You can see the scale of the asset base supporting these earnings:

• Sempra California rate base stood at approximately $29 billion.
• Sempra Texas rate base, which includes 100% of Oncor, was estimated at $27 billion.
• The overall five-year capital plan for 2025-2029 is a record approximately $56 billion.
• Over 90% of that projected capital expenditure is focused on these regulated utility investments in Texas and California.

This focus is designed to expand the utility rate base by roughly 10% annually, which is the engine for future regulated earnings growth. Also, Oncor alone has a five-year capital plan of $36 billion for 2025-2029, reflecting massive investment in Texas to meet growing demand.

Long-term, fixed-fee capacity payments from LNG contracts

For the Sempra Infrastructure segment, revenue stability is being locked in through long-term agreements, even as the company sells down its majority stake. The Port Arthur LNG Phase 2 project is securing capacity through long-term Sales and Purchase Agreements (SPAs). These contracts often feature fixed fees or prices indexed to benchmarks like Henry Hub, which provides a predictable revenue stream.

Here's a look at the capacity being contracted for Port Arthur LNG Phase 2, which is targeting a Final Investment Decision in 2025:

Phase 2, once complete, is expected to have two liquefaction trains capable of producing approximately 13 Mtpa of LNG, potentially increasing the total Port Arthur LNG facility capacity to up to approximately 26 Mtpa.

Sales of natural gas and electricity to end-use customers

This stream represents the direct commodity sales and delivery revenue from the regulated utilities to their customer base, which spans nearly 40 million consumers across service territories. While specific commodity sales revenue is often bundled into regulated rate base returns, recent total revenue figures give you a sense of the scale of operations. For instance, Sempra reported total revenue of $3.00 billion for the second quarter of 2025.

To manage costs and improve efficiency, the California utilities, SDGE and SoCalGas Co., have applied to state regulators to discontinue certain energy efficiency programs and close branch offices, moving to a digital-first service model to help control costs passed on to customers.

Proceeds from asset sales (e.g., $10 billion from 45% SIP stake sale)

A significant, non-recurring revenue event in 2025 is the capital recycling program designed to fund utility growth without new equity. Sempra agreed to sell a 45% equity stake in Sempra Infrastructure Partners (SIP) for $10 billion in cash to a KKR-led consortium and CPP Investments.

The cash proceeds are structured, which is important for cash flow planning:

• 47% of the cash expected at closing.
• 41% by the end of 2027.
• The balance approximately seven years after closing.

This transaction implies an equity value of $22.2 billion and an enterprise value of $31.7 billion for SIP, with Sempra retaining a 25% interest post-close.

Full-year 2025 adjusted EPS guidance is $4.30 to $4.70 per share

The market views the strength of these combined revenue streams through the lens of earnings per share guidance. Sempra affirmed its full-year 2025 adjusted EPS guidance range to be between $4.30 to $4.70 per share, reflecting confidence in its execution across its utility and infrastructure platforms. This guidance is supported by the expected growth in the regulated rate base and the accretive nature of the infrastructure transactions, which are projected to add $0.20 per share in annual accretion starting in 2027.

Finance: draft 13-week cash view by Friday.