Chat with this content: Summary, Analysis, News...
Share on Reddit
Sempra Energy (SRE): The Energy Infrastructure Colossus
I. Introduction & Episode Roadmap
Picture this: It's March 2022, and European energy ministers are scrambling through emergency meetings as Russia weaponizes its natural gas supplies. Halfway across the world, in the boardrooms of San Diego, executives at a $90 billion American company are fielding frantic calls from Berlin, Tokyo, and Warsaw. This company isn't ExxonMobil or Chevron—it's Sempra, a name most Americans associate with their monthly utility bill, if they know it at all. Yet here they are, holding some of the most strategic energy infrastructure assets in the Western Hemisphere, perfectly positioned to reshape global energy flows for the next generation.
How did a 1998 merger between two sleepy California utilities transform into North America's premier energy infrastructure powerhouse? How did a company that started by piping gas to Los Angeles suburbs end up as a critical player in European energy security? The answer involves perfect timing, regulatory arbitrage, massive capital deployments, and a series of contrarian bets that looked foolish until they suddenly looked brilliant.
Today's Sempra controls three pillars of North American energy: California's gas and electric utilities serving 21 million people, Texas's largest transmission and distribution utility covering 10 million Texans, and liquefied natural gas (LNG) export terminals that ship American energy to allies worldwide. With a market capitalization north of $90 billion, it's become the picks-and-shovels play on every major energy trend: electrification, renewable integration, natural gas backup, and the geopolitical realignment of energy trade.
This is a story about infrastructure—the boring, capital-intensive, highly regulated business that nobody talks about at cocktail parties but everyone depends on every single day. It's about how smart capital allocation in "dull" industries can generate extraordinary returns. And it's about recognizing that in times of disruption, owning the pipes, wires, and terminals matters more than owning what flows through them.
II. Origins: The Great California Utility Marriage (1990s–1998)
It's 1996 in San Diego, and inside a mahogany-paneled boardroom overlooking the Pacific Ocean, executives from two century-old California utilities are sketching out what would become the largest utility merger in American history. The timing seemed perfect: California was about to deregulate its electricity market, promising a gold rush of opportunities for companies nimble enough to capitalize. What these executives couldn't foresee was that their merger would close just as California's energy deregulation experiment was about to go spectacularly, catastrophically wrong.
Pacific Enterprises and Enova Corporation had announced their merger plans in October 1996, awaiting approvals from the California Public Utilities Commission, the Federal Energy Regulatory Commission, and the Securities and Exchange Commission. The merger was completed in June 1998, creating Sempra Energy. The combined entity brought together two pillars of Southern California infrastructure: Pacific Enterprises' Southern California Gas Company, serving 15 million people across 23,000 square miles including Los Angeles, and Enova's San Diego Gas & Electric Company, which had 1.2 million electric meters and 715,000 natural gas meters, serving 3 million consumers.
These weren't just utilities; they were institutions. Pacific Enterprises traced its roots back through Pacific Lighting Corporation to the 1880s gas lamp era, having literally illuminated Los Angeles as it grew from frontier town to metropolis. San Diego Gas & Electric had powered the rise of America's Finest City since 1881. For over a century, both companies embodied the classic American utility model: regulated monopolies providing essential services in exchange for guaranteed returns.
The $6.2 billion merger created Sempra, an energy services company with one of the largest regulated utility customer bases in the United States, with 12,000 employees serving approximately 21 million consumers across 27,000 square miles in Southern California. The Sempra name, derived from the Latin word for "always," suggested permanence and stability—qualities that would be severely tested in the chaos about to engulf California's energy markets.
The merger's architects were betting on synergies between gas and electric operations, but more importantly, they were positioning for California's brave new world of energy deregulation. In the mid-1990s, under Republican Governor Pete Wilson, California began changing the electricity industry, with Democratic State Senator Steve Peace often credited as "the father of deregulation" and Republican Senator Jim Brulte authoring the bill. The bipartisan consensus was that competition would lower California's electricity prices, which were 50% above the national average.
The deregulation framework, codified in AB 1890 in 1996, was a Frankenstein's monster of compromises. Energy deregulation put the three companies that distribute electricity into a tough situation, freezing or capping the existing price of energy that the three energy distributors could charge while deregulating the producers of energy did not lower the cost of energy. Utilities were forced to sell their generation assets but required to buy power on volatile spot markets while selling to consumers at fixed rates. It was like forcing someone to play poker with their cards face up while blindfolded.
When the merger was completed in June 1998, the new board of directors comprised 16 members, with eight representatives from each of the merging companies. This balanced governance structure reflected the merger of equals philosophy, though cynics might note it also ensured plenty of bureaucratic gridlock when quick decisions were needed.
The timing of Sempra's birth couldn't have been more ironic. Just as this new energy giant was taking its first steps, California's new wholesale power market and customer choice program, which started in March 1998, worked fairly well for about a year and a half before retail electricity prices in southern California reached all-time highs in summer 2000, and generation capacity shortages forced temporary power outages in northern California.
What followed was an energy crisis that would define California politics for a generation and test Sempra's resilience from day one. The newly merged company found itself at the epicenter of a perfect storm where idealistic deregulation met market manipulation, drought conditions, and surging demand from the dot-com boom.
III. The Early Sempra Years: Building Beyond California (1998–2007)
While the rest of California was burning through billions in the energy crisis of 2000-2001, Sempra's executives faced an existential test barely two years after their merger. Rolling blackouts were hitting San Francisco Bay Area customers, Pacific Gas & Electric was heading toward bankruptcy, and Southern California Edison teetered on the brink. Energy companies proceeded to squeeze the industry's revenue margins, causing the bankruptcy of Pacific Gas and Electric Company (PG&E) and near bankruptcy of Southern California Edison in early 2001.
For Sempra, the crisis was a double-edged sword. On one hand, their San Diego Gas & Electric subsidiary was getting hammered—they were the first California utility to face market rates when price caps lifted in July 1999, causing customer bills to double in two months. On the other, Sempra's unregulated trading arm, Sempra Energy Trading based in Connecticut, was playing the same games as Enron, with exotic names like "Death Star," "Fat Boy," and "Ricochet."
Attorney General Bill Lockyer filed a lawsuit against Sempra Energy Trading alleging the Connecticut-based Sempra affiliate committed fraud on a large scale during the Energy Crisis of 2000-01 by manipulating wholesale electricity prices. Between January 2000 and June 2001, SET engaged in Death Star transactions involving at least 205 hours and 9,728 megawatt-hours of electricity, played Fat Boy during at least 3,271 hours, and engaged in Ricochet transactions involving at least 79,287 megawatt-hours of electricity during at least 603 hours.
The company would eventually pay dearly for these activities. Sempra was sued over claims it manipulated natural gas supplies and electricity contracts during the 2001 California electricity crisis. In 2006, the company agreed to pay $377 million to settle gas supply claims, and in 2010, it paid another $410 million to settle claims on electricity price gouging, but has never admitted wrongdoing.
Yet even as California's energy markets imploded, Sempra was quietly executing an international expansion strategy that would provide crucial diversification. In 1999, the company acquired two utilities in South America; Chilquinta Energia in Chile and Luz Del Sur in Peru, which gave Sempra Energy an entry into the expanding Latin American energy market. Sempra Energy originally acquired approximately 50-percent ownership in Chilquinta EnergĂa and an approximate 42-percent ownership interest in Luz del Sur in 1999.
These Latin American utilities offered stable, regulated returns in growing markets—a stark contrast to the chaos back home. Luz del Sur served the southern region of Lima, Peru's capital, while Chilquinta EnergĂa was the third-largest electricity distributor in Chile, serving the cities of Valparaiso and Viña del Mar. The acquisitions gave Sempra a foothold in two of South America's most stable economies, with regulatory frameworks that, ironically, provided more certainty than California's deregulated mess.
In 2003, Sempra Energy Resources, the former power generation subsidiary of Sempra Energy, completed three state-of-the-art power plant projects in Arizona, California and New Mexico. These merchant power plants represented a bet on continued deregulation and growing electricity demand in the Southwest—a reasonable assumption given the region's population growth, though the timing couldn't have been worse given the post-Enron backlash against energy trading and merchant power.
In 2007, the company created the Sempra Energy Foundation (now known as Sempra Foundation) as a 501(c)(3) private foundation. This move toward corporate social responsibility came at a time when energy companies desperately needed to rebuild public trust after the crisis years.
By 2007, Sempra had emerged from the California energy crisis scarred but intact. Unlike Enron, which imploded spectacularly, or PG&E, which went through bankruptcy, Sempra survived by having multiple revenue streams: regulated utilities that provided steady cash flows, international operations that offered growth, and yes, trading operations that had profited handsomely (if controversially) during the crisis.
The company had learned a crucial lesson: in the energy business, being purely regulated was limiting, but being purely unregulated was dangerous. The sweet spot was having a foot in both camps—steady regulated returns to fund growth, and unregulated ventures to capture upside. This philosophy would guide their next major strategic pivot.
IV. The Infrastructure Pivot: LNG & Mexico (2008–2017)
The year 2008 should have been catastrophic for Sempra. Lehman Brothers collapsed in September, credit markets froze, and energy demand was plummeting. Yet in May 2008, while Wall Street burned, the EnergĂa Costa Azul facility in Baja California began commercial operations, making it one of the first liquefied natural gas (LNG) receipt terminals on the west coast of North America. The timing seemed insane—building massive energy infrastructure just as the world economy cratered. But Sempra's executives saw something others missed: the shale gas revolution was about to flip America's energy equation from scarcity to abundance.
The Costa Azul terminal, located about 15 miles north of Ensenada, Mexico, the terminal can process up to one billion cubic feet of natural gas per day. Built as an import terminal to bring LNG from Asia and the Middle East to energy-hungry California and Mexico, it represented a $1 billion bet that North America would need foreign gas forever. That bet would prove spectacularly wrong—and then, in a twist worthy of Silicon Valley, being wrong would become Sempra's greatest opportunity.
Just over a year later, in July 2009, the Cameron LNG receipt terminal near Lake Charles, Louisiana, successfully completed performance testing and began commercial operations. Cameron LNG's first cargo arrived aboard BP's British Diamond, an LNG carrier bringing supplies from Trinidad. The terminal, which is located on the Calcasieu Ship Channel about 18 miles from the Gulf of Mexico, has the capacity to regasify up to 1.5 Bcf/d, with the potential to be expanded to 2.65 Bcf/d.
These two terminals—one on each coast—positioned Sempra as the only company with LNG infrastructure serving both Atlantic and Pacific markets. But here's where the story gets interesting: horizontal drilling and hydraulic fracturing were turning America's shale formations into gushers of natural gas. The Marcellus, Barnett, and Haynesville shales were pumping out so much gas that prices collapsed from $13 per thousand cubic feet in 2008 to under $3 by 2012. Suddenly, America didn't need to import LNG—it needed to export it.
While other companies watched their import terminals become stranded assets, Sempra's leadership recognized a once-in-a-generation arbitrage opportunity. Natural gas that sold for $3 in Texas could fetch $15 in Tokyo. The infrastructure they'd built to import could be converted to export. It would take billions in capital and years of construction, but the economics were irresistible.
Meanwhile, Sempra was quietly building an empire south of the border. Mexico's energy reforms were opening opportunities that reminded savvy observers of China in the 1990s—a massive economy modernizing its energy infrastructure, desperate for capital and expertise. Through its IEnova subsidiary, Sempra built pipelines connecting cheap Texas gas to Mexican power plants and industrial facilities. Every pipeline was a toll road, every connection a recurring revenue stream.
In 2008, Sempra completed its first renewable energy project, a 10-megawatt solar facility in Nevada, signaling an early recognition that even a natural gas infrastructure company needed to hedge its bets on the energy transition. But the real action was in LNG and Mexico—two markets that would define Sempra's transformation from a California utility holding company into a continental energy infrastructure powerhouse.
The financial crisis had actually helped Sempra in an unexpected way. While competitors pulled back on capital spending, Sempra could borrow at historically low rates to fund infrastructure projects with 20-year contracted cash flows. It was the classic Buffett playbook: be greedy when others are fearful, especially when you're building essential infrastructure with monopolistic characteristics.
By 2017, Sempra had assembled a portfolio of infrastructure assets that spanned the continent. Their Mexican operations through IEnova had grown into one of the country's largest private energy companies. The LNG terminals were being retrofitted for export. And back in California, their utilities continued generating steady cash flows despite the state's aggressive renewable energy mandates. The stage was set for their most audacious move yet: conquering Texas.
V. The Oncor Acquisition: Texas-Sized Ambitions (2017–2018)
The bankruptcy court in Wilmington, Delaware, was not where you'd expect to find the future of Texas electricity being decided. Yet in 2017, that's exactly where representatives from Warren Buffett's Berkshire Hathaway, Florida's NextEra Energy, Dallas's Hunt family, and San Diego's Sempra Energy gathered like vultures circling the carcass of Energy Future Holdings—the failed $45 billion leveraged buyout that remains the largest bankruptcy in utility history.
Energy Future Holdings, the product of KKR and TPG's disastrous 2007 LBO of TXU, had been hemorrhaging cash since natural gas prices collapsed in 2008. The private equity firms had bet that gas prices would stay high, making their coal and nuclear plants profitable. Instead, the shale revolution crushed gas prices, turning their "can't lose" deal into a $30 billion crater. The only valuable asset left was Oncor, the regulated transmission and distribution utility serving 10 million Texans—a cash cow producing $432 million in net income that creditors desperately needed.
The bidding war for Oncor played out like a high-stakes poker game where everyone kept getting thrown out of the casino. First, Hunt Consolidated proposed to acquire EFH in 2016 for $18 billion. Hunt was unable to secure the necessary regulatory approval and the deal fell apart when Texas regulators balked at their plan to convert Oncor into a Real Estate Investment Trust—a clever financial engineering move that would save $250 million in taxes but horrified regulators who remembered the financial gymnastics that created the mess in the first place.
Next came NextEra Energy with an $18.4 billion bid. Florida's utility giant thought they could charm Texas regulators with promises of renewable investments and operational excellence. They were wrong. Texas regulators demanded an independent board of directors and limits on dividend distributions, essentially seeking to wall-off Oncor from its buyer financially. But NextEra balked, not wanting a risk to its credit rating that it could not control. The deal collapsed in April 2017.
Enter Warren Buffett, stage left. Berkshire Hathaway swooped in with a $9 billion cash offer in July 2017, accepting the ring-fencing provisions that NextEra had rejected. The Oracle of Omaha seemed poised to add another utility trophy to his collection. But then came the twist: New York hedge fund Elliott Management publicly battled the billionaire investor, arguing the $9 billion sale price was too low. Buffett, who famously avoids bidding wars, declined to raise his offer.
The night before Berkshire's proposal was to go before the bankruptcy court, Energy Future struck a deal with Sempra for $9.45 billion in cash. Sempra had been watching from the sidelines, learning from each failed bid what Texas regulators really wanted: a utility operator, not a financial engineer; acceptance of ring-fencing; and just enough money to make creditors whole.
On March 8, 2018, regulators in Texas approved Sempra Energy's purchase of a majority stake in Oncor for $9.45 billion. The close of the transaction creates a utility holding company with the largest U.S. customer base. Sempra had threaded the needle perfectly—offering $450 million more than Buffett, accepting all regulatory conditions, and promising to keep Oncor's Dallas headquarters and local management intact.
The Oncor acquisition transformed Sempra overnight. They now owned Texas's largest transmission and distribution utility with 18,324 circuit miles of transmission lines and 1,288 substations, serving the booming Dallas-Fort Worth metroplex and surrounding areas. Combined with their California utilities, Sempra suddenly controlled essential infrastructure in America's two largest states by population and economic output.
But Sempra wasn't done with Texas. In March 2019, Sempra Energy and Oncor Electric Delivery Company announced the acquisition of InfraREIT, and Sempra Energy's acquisition of a 50% interest in Sharyland Utilities. These deals added more transmission assets in the rapidly growing Texas market, where electricity demand was surging from data centers, petrochemical plants, and population growth.
The timing was impeccable. Texas was becoming the epicenter of American energy—leading in oil production, natural gas, wind power, and soon solar. Every new wind farm in West Texas needed transmission lines to move power to cities. Every new data center in Austin needed reliable distribution. And Sempra owned the pipes and wires that made it all possible. It was the ultimate picks-and-shovels play on the Texas boom.
VI. The LNG Revolution: From Importer to Exporter (2019–Present)
The timing was cinematically perfect. On May 31, 2019, as trade tensions between the U.S. and China reached fever pitch, Sempra Energy shipped its first cargo of LNG from Cameron, becoming the fourth such facility in the United States to enter service since 2016. The Marvel Crane—yes, that was really the ship's name—departed Louisiana carrying supercooled American natural gas to energy-hungry Asian markets at prices that made Texas gas producers and Sempra shareholders equally ecstatic.
What had started as an import terminal built to bring foreign gas to America had completed its metamorphosis into an export terminal sending American gas to the world. Cameron LNG's export facility in Hackberry, Louisiana, next to the company's existing LNG-import terminal, included three liquefaction units—referred to as trains—that would export a projected 12 million tons per year of LNG exports, or about 1.7 Bcf/d.
The transformation from import to export wasn't just about reversing the flow of gas—it was about reimagining America's role in global energy markets. For decades, the U.S. had been an energy importer, dependent on Middle Eastern oil and worried about energy security. Now, thanks to the shale revolution, America was becoming the arsenal of energy for its allies.
Train 1 began commercial operations in August 2019, part of Phase 1 of the Cameron LNG liquefaction-export project which includes a projected export capacity of 12 million tonnes per annum (Mtpa) of LNG. Cameron LNG is jointly owned by affiliates of Sempra LNG, Total, Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2% of Cameron LNG.
Train 2 and Train 3 commenced commercial operations under Cameron LNG's tolling agreements in the first and third quarter of 2020, respectively. The facility's first liquefaction train started commercial operations in August 2019. The company commenced commercial operations for Train 1 in August 2019, Train 2 in March 2020, and Train 3 in August 2020, respectively.
The numbers were staggering: Sempra Energy's share of full-year run-rate earnings from the first three trains at Cameron LNG are projected to be between $400 million and $450 million annually when all three trains achieve commercial operations. But the real story was about geopolitics as much as profits.
Then came February 24, 2022—the day Russia invaded Ukraine. Russia's full-scale invasion of Ukraine shocked Europeans into realizing that they could no longer take the security of their fossil fuel supply for granted. The assumption had been that Europe and Russia were locked into a mutually beneficial, secure relationship, since Europe needed gas and Russia had no infrastructure to sell that gas anywhere else. That belief turned out to be wrong. When the war began, Europe was importing a variety of energy products from Russia, including crude oil and oil products, uranium products, coal, and liquefied natural gas (LNG). But the Kremlin's sharpest energy weapon was natural gas, delivered by the state-backed gas monopolist Gazprom via pipelines and based on long-term contracts. Europe needs gas for power generation, household heating, and industrial processes. Before the invasion, more than 40% of Europe's imported natural gas came from Russia.
Overnight, American LNG went from being a commodity to being a geopolitical weapon. In 2022, shortly after the Russian invasion of Ukraine, Sempra Infrastructure, a subsidiary of Sempra, announced a series of agreements with European energy companies for U.S. liquefied natural gas (LNG) to help displace reliance on Russian gas. European governments that had spent years opposing fossil fuel infrastructure were suddenly begging for American gas.
The transformation was dramatic. LNG has been a key mechanism to replace Russian pipeline gas, achieved especially through the deployment of floating regasification and storage units (FSRUs). These units receive LNG from transport vessels and transform it from liquid back to its gaseous state. Facilities to connect these vessels can be built much more quickly than a full onshore regasification facility, and Europe secured 12 new FSRUs in 2022. Since the beginning of the war in Ukraine, Europe has added 53.5 bcm of LNG import capacity, including expansion of a terminal in France and FSRUs in Finland, the Netherlands, Germany, and Italy. In 2022 and 2023, LNG made up 34% and 37% of Europe's natural gas consumption, respectively, up from 19% in 2021.
Cameron LNG was now running at full capacity, achieving a world-class safety performance of over 90 million hours worked with zero lost-time incidents, pumping out cargoes to Europe and Asia as fast as ships could load them. The facility that was supposed to import gas at $15 per thousand cubic feet was now exporting gas purchased at $3 and sold for $30 or more during peak European panic.
But Sempra wasn't content with just Cameron. In March 2023, Sempra reached a positive final investment decision (FID) for the development, construction and operation of the Port Arthur LNG Phase 1 project in Jefferson County, Texas, closing the project's $6.8 billion non-recourse debt financing. Total capital expenditures for the Port Arthur Phase 1 project are estimated at $13 billion. The long-term contractable capacity of approximately 10.5 Mtpa is fully subscribed under binding long-term agreements with strong counterparties—ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS and ENGIE S.A..
The Port Arthur project represented Sempra's biggest bet yet—a massive facility on the Texas Gulf Coast that would cement America's position as the world's dominant LNG exporter. And in a sign of how much the world had changed, in 2025, ConocoPhillips signed a definitive 20-year sale and purchase agreement for 4 million tonnes per annum of LNG offtake from the Port Arthur LNG Phase 2 development project. The Port Arthur LNG Phase 2 development project continues to attract strong interest, with JERA Co. Inc. signing for 1.5 Mtpa of LNG offtake.
The LNG business had become Sempra's crown jewel—high-margin, long-term contracted cash flows backed by investment-grade counterparties desperate for American gas. It was infrastructure investing at its finest: essential assets, limited competition, and customers with no alternatives. Every cargo that left Cameron or would leave Port Arthur wasn't just carrying supercooled methane—it was carrying American influence, European energy security, and Sempra's transformation from a California utility company into a global energy infrastructure powerhouse.
VII. Portfolio Optimization: Exits and Focus (2019–2021)
Corporate strategy often sounds grandiose in press releases but looks messy in execution. Yet watching Sempra systematically dismantle its international empire between 2019 and 2021 was like watching a chess grandmaster sacrifice pieces to achieve checkmate. Every asset sale was precisely timed, every dollar redeployed with purpose.
The story begins in January 2019, when CEO Jeffrey Martin stood before investors and declared: "We have set a clear strategic goal of becoming North America's premier energy infrastructure company." This wasn't just corporate speak—it was a declaration of war on complexity. Sempra would sell everything that wasn't bolted down in North America and use the proceeds to double down on Texas, California, and LNG.
The South American utilities that Sempra had acquired twenty years earlier for pocket change had become valuable prizes. Luz del Sur served the southern region of Lima, Peru, and was the largest electric company in the country, while also including Tecsur S.A., which provided electric construction and infrastructure services to Luz del Sur and third parties, and Inland Energy S.A.C., Luz del Sur's generation business. Chilquinta EnergĂa was the third-largest distributor of electricity in Chile, providing electricity to a population of approximately 2 million in the regions of ValparaĂso and Maule in central Chile and active in the development and operation of electric transmission lines.
The timing of the sales was masterful. Latin American utilities were trading at peak multiples as pension funds and infrastructure funds desperate for yield bid up prices. Meanwhile, Chinese state-owned enterprises, flush with capital and hungry for overseas assets, were willing to pay premium prices for stable, regulated utilities in growing markets.
In September 2019, Sempra announced the sale of its Peruvian businesses to China Yangtze Power International for $3.59 billion in cash, subject to closing adjustments for working capital and net indebtedness. The buyer was a subsidiary of China Yangtze Power Co., which is the largest publicly listed power company in China with a market capitalization of approximately $58 billion, engaging in electric power production, technological consultation of electric power generation and selected distribution services.
The deal closed in April 2020, right as the COVID pandemic was shutting down global markets. "We are very pleased with today's announcement as the sales proceeds will be used to further strengthen our balance sheet and our already solid liquidity position," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "We're also very excited that, in the face of current travel restrictions, all parties worked safely together to complete this deal as expected."
Two months later, in June 2020, Sempra closed the sale of its Chilean businesses to State Grid International Development Limited, another Chinese state-owned enterprise, for approximately $2.23 billion in total cash proceeds, subject to adjustments. SGID, a wholly owned subsidiary of State Grid Corporation of China (SGCC), is incorporated in Hong Kong as a limited liability company. It leverages SGCC's operational strengths and financial support to actively pursue investment opportunities worldwide and improve the operating efficiency of its portfolio of companies.
In combination, these transactions concluded Sempra Energy's planned sale of its South American businesses for approximately $5.82 billion in total cash proceeds, subject to adjustments. It was one of the largest utility M&A transactions of 2020, executed flawlessly during a global pandemic.
But Sempra wasn't just selling international assets. Over 2018 and 2019, Sempra completed its divestiture of its U.S. renewables and non-utility natural gas storage assets, generating approximately $2.5 billion in cash proceeds. The company was systematically pruning anything that didn't fit its three-pillar strategy: California utilities, Texas utilities, and LNG infrastructure.
The capital recycling was brilliant in its simplicity. Take $8 billion from asset sales, pay down debt to maintain investment-grade ratings, and redeploy the rest into higher-return North American infrastructure. While competitors were hoarding cash during COVID uncertainty, Sempra was using the crisis as cover to completely reshape its portfolio.
In June 2021, Sempra Energy announced it was rebranding to Sempra. It launched an updated logo and dropped "Energy" from its name to emphasize its core focus on infrastructure that delivers energy. It was more than cosmetic—the company was signaling that it wasn't an energy producer or trader, but an infrastructure owner. The distinction matters to investors who prize the stability of toll-road-like assets over the volatility of commodity exposure.
"Today's announcement completes the divestiture of all of Sempra Energy's South American assets – an important step in narrowing our strategic focus to the most attractive markets in North America," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "This sale furthers our mission to be North America's premier energy infrastructure company."
The transformation was complete. In less than three years, Sempra had sold every international asset, exited renewable development, divested non-core storage, and emerged as a pure-play North American infrastructure company. The portfolio that once sprawled across continents and technologies had been distilled to its essence: pipes and wires in America's two largest states, and LNG terminals connecting American gas to global markets.
Wall Street loved it. A simplified story, predictable cash flows, and exposure to the hottest trends in energy—electrification, natural gas backup, and LNG exports. The stock, which had languished in the $100 range for years, would soon break through to new highs as investors recognized that sometimes, in business as in life, less really is more.
VIII. The Modern Sempra: Three Pillars Strategy (2021–Today)
Walk into Sempra's San Diego headquarters today and you'll find a company that would be unrecognizable to its founders from 1998. Gone are the international utilities scattered across continents, the renewable development projects, the commodity trading desks. What remains is a laser-focused infrastructure company executing a three-pillar strategy with military precision: Sempra California, Sempra Texas, and Sempra Infrastructure.
The three growth platforms deliver energy to nearly 40 million consumers across some of the world's most significant economic markets. Each pillar represents a different bet on America's energy future, but together they form an integrated platform capturing value across the entire energy value chain.
Sempra California: The Dual-Utility Fortress
Serving roughly 25 million consumers, Sempra California is a dual-utility platform focused on connecting people to safe, reliable and cleaner energy. The California operations remain the cash cow, generating steady regulated returns despite the state's aggressive energy transition policies and wildfire risks.
In 2024, demand for electricity reached an all-time high of 5,032 megawatts in San Diego Gas & Electric's service territory, driven by electrification, data centers, and population growth. This peak demand—occurring in a state that's supposedly moving away from fossil fuels—highlights the paradox of California's energy transition: more renewable energy requires more grid infrastructure, more backup power, and ironically, more natural gas for reliability.
San Diego Gas & Electric (SDG&E) serves 3.7 million people across 4,100 square miles, while Southern California Gas Company (SoCalGas) operates the nation's largest natural gas distribution network, serving a population of 21.1 million covering an area of 24,000 square miles as of December 31, 2024.
The genius of owning both electric and gas utilities in California becomes clear during heat waves and cold snaps. When solar panels stop producing at sunset during a heat wave, natural gas plants fire up. When winter storms knock out power lines, gas heating keeps homes warm. It's infrastructure arbitrage at its finest—heads you win with electricity, tails you win with gas.
Sempra Texas: The Growth Engine
Led by Oncor Electric Delivery Company LLC, Sempra Texas is executing on a significant growth campaign in the country's fastest growing energy market. The numbers are staggering: Oncor's new five-year capital plan of $36 billion represents a 50% increase over last year's five-year plan.
As of December 31, 2024, Oncor's transmission system included 18,324 circuit miles of transmission lines; 1,288 transmission and distribution substations; interconnection to 192 third-party generation facilities totaling 58,597 MW; and distribution system included approximately 4 million points of delivery and consisted of 125,975 miles of overhead and underground lines.
The Texas operations are benefiting from a perfect storm of growth drivers. Data centers are sprouting across the Dallas-Fort Worth metroplex like mushrooms after rain. Semiconductor fabs are relocating from Asia. Population continues surging as companies and workers flee high-tax states. In 2024, Oncor invested close to $4.7 billion to support the growing needs of its customers.
Oncor's first System Resiliency Plan was approved by the Public Utility Commission of Texas in November. Under the plan, Oncor will invest nearly $3 billion of capital expenditures and over $500 million in incremental operations and maintenance expenses, with the majority of the spend to occur between the years 2025 through 2027.
This resiliency plan came after Winter Storm Uri in 2021 exposed the fragility of Texas's isolated grid. While politicians argued about frozen wind turbines versus natural gas failures, Sempra quietly positioned Oncor to benefit from billions in mandated grid hardening investments. Every new requirement from Austin means more rate base, more earnings, more growth.
Sempra Infrastructure: The Global Play
In 2024, Sempra Infrastructure reached commercial operations on both the Gasoducto Rosarito pipeline expansion and Topolobampo Terminal and made progress advancing five significant construction projects. This third pillar represents Sempra's highest-risk, highest-reward bet: becoming the toll collector for America's energy dominance.
Cameron LNG Phase 1 continues to deliver superior production and loaded nearly 200 cargoes in 2024. The facility has become a money-printing machine, buying gas at Henry Hub prices around $2-3 per thousand cubic feet and selling LNG linked to global prices that can exceed $20 during crisis periods.
EnergĂa Costa Azul LNG Phase 1 continues to target the start-up of commercial operations in spring of 2026, and construction at Port Arthur LNG Phase 1 remains on time and on budget. The Port Arthur LNG Phase 2 development project is receiving strong commercial interest.
The infrastructure segment also includes IEnova, which operates energy infrastructure across Mexico. Through strategic positioning in Baja California and along the Texas-Mexico border, Sempra controls critical infrastructure connecting cheap U.S. gas to Mexican power plants and industrial facilities. Every pipeline is a toll road with 25-year contracts backed by CFE, Mexico's state utility.
Financial Performance and Capital Allocation
As of August 2025, Sempra's trailing twelve-month revenue is $13.33 billion. The company has transformed from a utility holding company into a growth machine, with a record five-year capital plan of $56 billion and raising the company's long-term EPS growth rate to 7%-9%.
Over half of planned capital expenditures are earmarked for Texas, consistent with Sempra's 2030 aspirations of producing over 50% of its earnings from the State of Texas. This represents a dramatic shift from a company that was once synonymous with California utilities.
The capital allocation strategy is elegantly simple: invest in monopolistic infrastructure with long-term contracts in growing markets. Whether it's transmission lines in Texas, pipelines in Mexico, or LNG terminals on the Gulf Coast, every investment follows the same playbook: essential infrastructure, limited competition, contracted cash flows.
As of February 2025, Sempra has a market cap of $54.05 billion, making it one of America's most valuable utility companies. The stock has rewarded patient investors, with consistent dividend growth and share price appreciation as the market recognizes the value of owning irreplaceable infrastructure in America's fastest-growing energy markets.
The modern Sempra is what happens when you strip away everything that doesn't directly contribute to the core mission: owning and operating energy infrastructure that others need but can't easily replicate. It's boring, capital-intensive, and absolutely essential—exactly the kind of business that generates superior returns over decades, not quarters.
IX. Playbook: Business & Investing Lessons
If you wanted to write a masterclass on infrastructure investing, you could do worse than studying Sempra's twenty-five-year journey from California utility merger to continental energy powerhouse. The lessons aren't sexy—this isn't a story of brilliant innovation or disruptive technology. Instead, it's about the compounding power of owning essential assets, the value of regulatory capture, and the art of turning other people's problems into your profits.
Lesson 1: The Utility Roll-Up Strategy
The genius of utility roll-ups isn't in the operational synergies—it's in the financial engineering. When Sempra acquired Oncor for $9.45 billion in 2018, they weren't just buying Texas electricity distribution. They were buying the right to earn regulated returns on $36 billion of future capital investments. Every dollar invested in the rate base earns a regulated return around 9-10%. Do the math: that's $3.6 billion in annual returns on investment, virtually guaranteed by Texas regulators.
The playbook is simple: acquire utilities in high-growth markets, invest aggressively in infrastructure, earn regulated returns on a growing rate base. Rinse and repeat. It's the same strategy Warren Buffett has used to build Berkshire Hathaway Energy into a profit machine. The difference is that Sempra focused on the two best markets in America—California and Texas—rather than spreading across the Midwest.
Lesson 2: Infrastructure as Picks and Shovels
During the California Gold Rush, the real money wasn't made by miners—it was made by the merchants selling picks and shovels. Sempra applied this principle to the energy transition. While others bet on which technology would win—solar, wind, batteries, hydrogen—Sempra bet on owning the infrastructure that connects any energy source to consumers.
Consider their LNG strategy. Sempra doesn't produce natural gas or own drilling rigs. They own the terminals that liquefy and export gas. Whether gas prices are $2 or $20, whether the gas comes from the Permian or the Marcellus, Sempra collects their tolls. It's the ultimate picks-and-shovels play on American energy abundance.
Lesson 3: Regulatory Arbitrage
Sempra has mastered the art of regulatory arbitrage—profiting from differences in regulatory regimes across jurisdictions. California's strict environmental regulations create barriers to entry for new infrastructure, protecting Sempra's existing assets. Texas's growth-friendly regulations enable massive capital deployment with attractive returns. Mexico's infrastructure needs provide opportunities for long-term dollar-denominated contracts.
The company doesn't fight regulation—it embraces it. Every new reliability standard, every grid hardening requirement, every renewable integration mandate becomes an opportunity to deploy capital at regulated returns. It's jiu-jitsu capitalism: using the force of regulation to generate profits rather than fighting against it.
Lesson 4: Capital Allocation Discipline
Between 2019 and 2021, Sempra sold $8 billion in assets, exiting entire countries and business lines. Lesser management teams would have hoarded these assets, afraid to admit mistakes or take write-downs. Sempra's leadership recognized that capital has an opportunity cost. Every dollar tied up in a Peruvian utility earning 8% returns was a dollar not invested in Texas transmission earning 10% returns with better growth prospects.
The discipline extended to what they didn't do. Sempra didn't chase renewable development when it was fashionable. They didn't make big bets on hydrogen when governments threw subsidies at it. They stuck to their knitting: owning essential infrastructure with monopolistic characteristics.
Lesson 5: Timing Energy Cycles
Sempra's LNG infrastructure investments looked foolish when built as import terminals in 2008-2009, just as natural gas prices were collapsing. But management understood a crucial principle: energy infrastructure has 40-year lives, while commodity cycles last 5-10 years. By the time their import terminals were completed, the shale revolution had flipped the script, and Sempra was perfectly positioned to convert them to export terminals.
The same pattern repeated with the Port Arthur expansion. Final investment decision in March 2023 came after the Ukraine crisis had demonstrated the strategic value of American LNG. By the time Port Arthur comes online, America will be the world's dominant LNG exporter, and Sempra will own critical infrastructure in the most important energy trade route of the 21st century.
Lesson 6: Portfolio Construction
Sempra's three-pillar strategy is a masterclass in portfolio construction. California utilities provide stable, predictable cash flows. Texas utilities offer growth in America's most dynamic energy market. LNG infrastructure provides exposure to global energy markets and geopolitical tailwinds. Each business hedges the others' weaknesses while maintaining exposure to the megatrend of growing energy demand.
The portfolio is also naturally hedged against the energy transition. If renewables dominate, Texas and California need massive grid investments to integrate them. If natural gas remains essential for reliability, the LNG infrastructure becomes even more valuable. If hydrogen becomes viable, their pipeline infrastructure can be retrofitted. Heads they win, tails they win, edge they still win.
Lesson 7: The Value of Boring
Sempra will never be featured in articles about innovative companies. They don't have a charismatic founder-CEO giving TED talks. Their investor presentations are filled with regulatory acronyms and rate base calculations that would cure insomnia. And that's exactly the point.
Boring businesses with essential assets and predictable cash flows trade at premium valuations once investors understand their quality. Sempra has delivered consistent returns not through brilliance but through competence—blocking and tackling in an industry where the rules favor incumbents and capital compounds quietly over decades.
X. Analysis & Bear vs. Bull Case
The investment case for Sempra ultimately comes down to a simple question: Do you believe America needs massive infrastructure investments over the next decade? If yes, Sempra is positioned to capture an outsized share of the value creation. If no, you're betting against electricity demand growth, the energy transition, and American industrial resurgence—a contrarian position that history suggests is unwise.
Bull Case: The Infrastructure Super-Cycle
The bulls see Sempra as perfectly positioned for a generational infrastructure buildout. Start with the demand drivers: artificial intelligence and data centers are driving electricity demand growth for the first time in decades. The "electrify everything" movement means heat pumps replacing gas furnaces, EVs replacing gasoline cars, and electric industrial processes replacing fossil fuel-based ones. Even conservative estimates suggest U.S. electricity demand growing 20-30% by 2035.
Texas and California represent the two best markets for this growth. Texas has no state income tax, minimal regulation, and attracts businesses and population like a magnet. In 2024, Oncor saw a 27% increase in new transmission interconnection requests compared to 2023, the majority from large commercial and industrial customers. California, despite its challenges, remains America's largest economy with aggressive renewable mandates that require massive grid investments.
The LNG infrastructure story is even more compelling. Europe's divorce from Russian gas is permanent. Asian demand continues growing as countries choose LNG over coal for air quality reasons. America has the cheapest gas in the world thanks to shale, and Sempra owns critical infrastructure to export it. Cameron LNG is printing money at current spreads, and Port Arthur will double Sempra's export capacity.
The financial metrics support the bull case. The company has affirmed its projected long-term EPS growth rate of approximately 6% to 8%, though recent guidance suggests even higher growth of 7-9%. With $56 billion in planned capital investments earning regulated returns, earnings growth appears locked in for years.
The balance sheet is investment-grade, providing access to cheap capital in any market environment. The dividend is safe and growing. And unlike tech companies trading at 30x earnings based on speculative growth, Sempra trades at reasonable multiples for visible, regulated growth.
Finally, the macro environment favors infrastructure owners. Government industrial policy is driving reshoring of manufacturing. The Inflation Reduction Act provides incentives for clean energy infrastructure. Interest rates have peaked, reducing financing costs. Every trend points toward a golden age for American infrastructure investment.
Bear Case: The Hidden Risks
The bears see multiple threats that could derail Sempra's growth story. Start with California wildfire liability—the sword of Damocles hanging over every California utility. Despite reforms like Assembly Bill 1054 creating a wildfire fund, PG&E's bankruptcy showed that utilities can be held liable for billions in damages even when following all regulations. One catastrophic wildfire started by SDG&E equipment could vaporize billions in market value overnight.
Regulatory risk extends beyond wildfires. California regulators are increasingly hostile to natural gas infrastructure, with some cities banning gas hookups in new construction. If California seriously pursues full electrification, SoCalGas's massive gas distribution network could become a stranded asset. The company is already facing challenges with rate cases, as evidenced by disallowances in recent proceedings.
The LNG business faces its own challenges. The export market is becoming increasingly competitive as Qatar, Australia, and others expand capacity. The current wide spreads between U.S. natural gas and global LNG prices won't last forever. When Europe's energy crisis ends and new supply comes online globally, LNG margins will compress. Sempra is making massive capital commitments based on current economics that might not persist.
Texas presents different but equally serious risks. The ERCOT grid's isolation means Oncor can't sell excess power to other states during overbuilds. The state's boom-bust history suggests current growth rates aren't sustainable. And climate change is making extreme weather events more frequent, requiring billions in grid hardening investments that might not earn adequate returns.
The energy transition poses existential questions. If renewable costs continue plummeting and battery storage solves intermittency, natural gas backup becomes unnecessary. If hydrogen or other technologies emerge, Sempra's natural gas infrastructure loses value. The company is essentially making a massive bet that the energy transition will be slower and more complicated than advocates believe.
Interest rate sensitivity is another concern. Utilities are essentially bond substitutes for many investors. When risk-free rates were near zero, Sempra's dividend yield looked attractive. With Treasury yields above 4%, the relative attractiveness diminishes. Rising rates also increase financing costs for Sempra's massive capital program, potentially squeezing returns.
Execution risk looms large with $56 billion in planned investments. Cost overruns are endemic in infrastructure projects. Permitting delays are common, especially in California. Construction risks multiply with project size—and Port Arthur is massive. Any significant delays or cost overruns could torpedo returns and damage credibility.
Finally, there's political risk. A future Democratic administration might restrict LNG exports for climate reasons. Texas could change its regulatory framework if different parties take power. Mexico could nationalize energy infrastructure as it has threatened before. Infrastructure assets are impossible to move, making them vulnerable to political changes.
The Verdict
The bull case ultimately appears stronger, but not without caveats. Sempra owns essential infrastructure in growing markets with favorable regulatory frameworks. The energy transition will require massive investments regardless of which technologies win. The company has demonstrated execution capability and capital allocation discipline.
However, investors must size positions appropriately given the risks. California wildfire liability alone justifies some discount to fair value. The LNG investments are genuinely risky, with billions of capital at stake based on global energy market dynamics beyond Sempra's control.
The optimal approach might be viewing Sempra as a core infrastructure holding rather than a high-conviction bet. It offers exposure to multiple megatrends—electrification, energy security, industrial reshoring—while providing defensive characteristics through regulated utilities. In a balanced portfolio, Sempra represents a bet on American energy infrastructure that doesn't require picking winners in the technology race.
XI. Epilogue & "If We Were CEOs"
Standing at the Port Arthur site on the Texas Gulf Coast, watching the massive construction cranes piece together what will become America's largest LNG export terminal, you can't help but wonder: What would we do if we were running Sempra? The company has executed brilliantly on its three-pillar strategy, but the energy landscape is shifting beneath everyone's feet. The decisions made in the next five years will determine whether Sempra remains a regional infrastructure player or becomes the defining energy infrastructure company of the 21st century.
The Hydrogen Opportunity
If we were CEO, we'd be quietly positioning for the hydrogen economy—not through splashy announcements or speculative investments, but through strategic infrastructure preparation. Sempra's natural gas pipelines can be retrofitted to carry hydrogen blends, and potentially pure hydrogen with modifications. The smart play isn't building hydrogen production facilities (let others take that technology risk) but ensuring our infrastructure can transport whatever molecules the market demands in 2035.
We'd start with pilot projects blending 5-10% hydrogen into select natural gas pipelines in California, where regulatory support and climate ambitions align. Learn the operational challenges, understand the economics, build the expertise. When the hydrogen economy arrives—if it arrives—Sempra would own the toll roads, just as we do with natural gas today.
The Data Center Play
The artificial intelligence boom is driving unprecedented electricity demand from data centers, but most utilities are reacting rather than leading. We'd create a dedicated division focused on data center development, offering turnkey solutions: identify sites near our transmission infrastructure, secure power capacity, expedite interconnection, even partner on renewable energy procurement.
Texas is becoming the data center capital of America, and Oncor sits in the middle of it. We'd proactively develop "data center ready" zones with pre-approved interconnection capacity, similar to how industrial parks are developed. Make it easy for hyperscalers to locate in our territory. Every megawatt of data center load is recurring revenue for decades.
The Mexico Expansion
Mexico's energy infrastructure needs are massive and growing. Despite political rhetoric, the country desperately needs private capital and expertise. We'd double down on Mexico through IEnova, but with a twist: partner with Mexican pension funds and infrastructure funds to reduce political risk while maintaining operational control.
The opportunity is particularly acute in Baja California, which is effectively an energy island dependent on imports from the U.S. We'd build the infrastructure to make Baja California the manufacturing hub for companies seeking nearshoring options close to California but with Mexican labor costs. Every factory needs power and gas—infrastructure we'd be happy to provide.
The Virtual Power Plant
California and Texas are perfect markets for virtual power plants—aggregating distributed energy resources like rooftop solar, batteries, and smart thermostats to provide grid services. We wouldn't compete with Tesla or Sunrun in selling these devices. Instead, we'd build the platform that aggregates and dispatches them, sharing revenue with device owners while providing grid stability.
This positions Sempra as an enabler rather than opponent of distributed energy. We'd start with pilot programs in San Diego, leveraging SDG&E's advanced metering infrastructure. Once proven, roll out across our territories. It's a software play with infrastructure characteristics—high margins, network effects, and natural monopoly dynamics.
The LNG Consolidation
The American LNG export industry is fragmented with multiple players building subscale facilities. As CEO, we'd pursue strategic consolidation, acquiring distressed or underdeveloped LNG projects and bringing Sempra's execution capabilities to bear. The industry needs scale players who can negotiate with sovereign buyers and finance massive projects.
We'd particularly focus on projects with existing permits but lacking financial backing. In a world where permitting new LNG infrastructure takes years and faces environmental opposition, permitted sites are gold. Buy them cheap, develop them efficiently, operate them better than competitors.
The Capital Markets Innovation
Infrastructure investing is hot, but most investors can't access it directly. We'd create novel financing structures that allow retail and institutional investors to participate in specific projects. Imagine publicly traded securities backed by Port Arthur cash flows, or green bonds specifically funding California grid modernization.
This would lower Sempra's cost of capital while maintaining operational control. It would also create a constituency of investors directly benefiting from infrastructure investment, providing political cover for future projects. The Canadian pipeline model—using yield vehicles and income trusts—shows this can work in North America.
The Energy Security Narrative
Finally, we'd reframe Sempra's narrative from a utility company to an energy security company. In an increasingly fragmented world, energy infrastructure is national security infrastructure. Our LNG terminals reduce European dependence on Russia. Our Texas grid investments support reshoring of critical industries. Our California utilities power the innovation economy.
This positioning opens doors in Washington, where industrial policy and infrastructure investment have bipartisan support. It also appeals to ESG investors who increasingly recognize that energy security and climate goals must be balanced. Sempra wouldn't just be delivering energy—we'd be delivering American energy independence and allied energy security.
The Path Forward
The next decade will be the most consequential in energy history. The companies that win won't be those betting on single technologies or fighting yesterday's battles. Winners will own the infrastructure that enables whatever energy system emerges—renewable, gas, hydrogen, or likely some complex hybrid.
Sempra has built an enviable position through disciplined execution and strategic focus. But past success doesn't guarantee future returns. The company must evolve from a traditional utility mindset to an infrastructure platform mindset—enabling rather than controlling, partnering rather than competing, innovating rather than just operating.
If executed correctly, Sempra could become to energy infrastructure what Amazon became to cloud computing—the essential platform that others build upon. The pieces are in place: irreplaceable assets in critical markets, execution expertise, regulatory relationships, and access to capital. What's needed now is vision and courage to build the energy infrastructure company of the future, not just optimize the one of the past.
The ultimate question for Sempra's leadership isn't whether they can maintain current operations or complete planned projects. It's whether they can imagine and build the infrastructure platform that America needs for the next century. The answer to that question will determine whether Sempra remains a successful regional utility or becomes the defining infrastructure company of the American century.
XII. Recent News
The energy infrastructure landscape never sleeps, and Sempra's recent developments reflect both the opportunities and challenges facing America's energy system. Sempra jumped 39 spots to 246 on the 2024 Fortune 500 list with $16.7 billion in annual earnings, demonstrating strong operational performance despite macro headwinds.
The company ranks #246 on the Fortune 500 list as of 2024 and #366 on the Forbes Global 2000 list as of 2024, solidifying its position among America's corporate elite. In 2024, Sempra was named one of Fortune Magazine's World's Most Admired Companies, marking the 14th time the company has received this recognition.
Looking ahead to 2025, Sempra has affirmed its full-year 2025 EPS guidance range of $4.90 to $5.25, representing continued steady growth despite regulatory and market uncertainties. The company has also established a $3 billion at-the-market equity offering program to support general corporate purposes including future financing needs, ensuring adequate liquidity for its massive capital program.
The recent California regulatory proceedings have created some near-term uncertainty. In October 2024, the California Public Utilities Commission issued a proposed decision on the general rate cases for Sempra California's utilities, with a final decision expected by year-end with revenues retroactively applied to January 1. These rate cases are critical for funding the grid modernization necessary to meet California's ambitious climate goals while maintaining reliability.
On the positive side, The CimarrĂłn wind project in Mexico will utilize Sempra Infrastructure's existing cross-border transmission line, with total capital expenditures estimated at $550 million and the project expected to commence generating energy in late 2025, demonstrating continued growth in the infrastructure segment.
The Texas operations continue to see explosive growth in electricity demand. Sempra Texas continues to see broad economic expansion across its service territory with notable growth in residential, commercial and industrial development, including data centers and microchip and semiconductor manufacturing facilities. This boom in high-tech manufacturing and digital infrastructure is driving the need for Oncor's $36 billion capital plan.
XIII. Links & Resources
Official Sempra Resources: - Sempra Investor Relations: sempra.com/investors - Annual Reports and 10-K Filings: SEC EDGAR Database - Quarterly Earnings Presentations: Sempra Investor Relations Events - Sempra Sustainability Reports: sempra.com/sustainability
Regulatory Filings and Decisions: - California Public Utilities Commission: cpuc.ca.gov - Public Utility Commission of Texas: puc.texas.gov - Federal Energy Regulatory Commission: ferc.gov - Securities and Exchange Commission: sec.gov/edgar
Industry Analysis and Reports: - U.S. Energy Information Administration: eia.gov - International Energy Agency LNG Reports: iea.org - American Gas Association: aga.org - Edison Electric Institute: eei.org
Books on Energy Infrastructure: - "The Grid" by Gretchen Bakke - Understanding America's electrical infrastructure - "The Prize" by Daniel Yergin - The definitive history of oil and energy - "Windfall" by McKenzie Funk - Climate change and business opportunities - "The Big Rich" by Bryan Burrough - Texas oil and the modern energy industry
Historical Resources: - California Energy Crisis Archive: University of California Energy Institute - Enron Bankruptcy Documents: Department of Justice Archives - Energy Future Holdings Case Studies: Harvard Business School - Texas Freeze 2021 Analysis: FERC and NERC Reports
Financial Analysis: - S&P Global Ratings: Sempra Credit Reports - Moody's Investors Service: Utility Sector Analysis - Morgan Stanley Research: North American Utilities - Goldman Sachs: LNG and Energy Infrastructure
Energy Transition Resources: - BloombergNEF: New Energy Outlook - Wood Mackenzie: Energy Transition Outlook - International Renewable Energy Agency: Global Energy Transformation - Rocky Mountain Institute: Utility Business Model Evolution
Academic Papers: - "The California Electricity Crisis" - Paul Joskow, MIT - "Regulatory Restructuring in Network Industries" - Jean Tirole - "Infrastructure Investment and Economic Growth" - World Bank - "The Economics of Natural Gas Infrastructure" - MIT Energy Initiative
News and Analysis: - Utility Dive: utilitydive.com - Natural Gas Intelligence: naturalgasintel.com - LNG Industry: lngindustry.com - Reuters Energy Coverage: reuters.com/energy
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. The author has no position in Sempra securities. Readers should conduct their own due diligence before making investment decisions.
StockTwits
Spotify
Apple Podcasts
Amazon Music
Audible
YouTube
Castbox
Pocket Casts