Sempra (SRE) investor relations material

Strategic initiatives and transaction overview

• Announced sale of a 45% equity stake in Sempra Infrastructure Partners to a KKR-led consortium and CPP Investments for $10 billion, implying a $22.2 billion equity value, $31.7–$32 billion enterprise value, and 13.8x EBITDA multiple.

• Sempra will retain a 25% interest, KKR consortium will hold 65%, and ADIA will retain 10% post-transaction.

• Proceeds will be received in stages: 47% at close, 41% by year-end 2027, and the remainder about seven years after closing, with interest income exceeding the earnings yield of the equity sold.

• Proceeds will be recycled into a capital campaign focused on Texas utilities, supporting utility growth and operational excellence.

• Transaction is both EPS and credit accretive, with expected average annual EPS accretion of $0.20 starting in 2027.

Financial and balance sheet impacts

• Transaction enables deconsolidation of Sempra Infrastructure Partners, including nearly $10 billion of debt, improving FFO to debt metrics and strengthening the balance sheet.

• Eliminates the need for common equity issuances under the 2025–2029 plan and reduces future reliance on equity at a time of significant growth.

• Retained 25% stake implies a residual equity value of about $5.5 billion, providing optionality for future growth.

• Affirmed 2025 and 2026 adjusted EPS guidance of $4.30–$4.70 and $4.80–$5.30, with a projected EPS CAGR of 7%–9% for 2025–2029.

• Updated 2025 GAAP EPS guidance to $3.29–$3.69, reflecting tax impacts from the equity sale.

Port Arthur LNG Phase II and growth outlook

• Final investment decision reached for Port Arthur LNG Phase II, targeting commercial operations for Trains 3 and 4 in 2030 and 2031, with Sempra Infrastructure retaining a 50.1% project-level stake and 12.5% proportionate interest post-transaction.

• Project capital expenditures estimated at $12 billion plus $2 billion for shared facilities, with targeted unlevered after-tax returns above 13%.

• Funding secured with a 49.9% minority equity investment led by Blackstone and others for $7 billion.

• Long-term offtake agreements secured with ConocoPhillips, EQT, and JERA under 20-year SPAs.

• Bechtel contracted for engineering and construction, leveraging experience from Phase 1.