Sempra sells Mexico energy assets and stake in infrastructure unit

Sempra, a utility firm, said it would sell energy infrastructure assets and a minority interest in Sempra Infrastructure in Mexico to fund its $56 billion five-year capital expenditure plan.

In February, the company forecasted a five-year plan for capital expenditures of approximately $56 billion. This was a 16% rise from its previous plan. Over 90% of capital expenditures were projected to be spent on investments in regulated utilities in Texas and California.

The CEO Jeffrey Martin said that the actions were taken to help the company simplify its business and reduce the reliance on future common equity issuances to fund the five-year capital program.

Ecogas Mexico is planning to sell its three utility franchises, which distribute natural gas to over 600,000 residential and commercial customers in the Mexicali region, Chihuahua, and La Laguna-Durango.

The San Diego-based company plans to also sell a minority stake in Sempra Infrastructure. Sempra Infrastructure has assets related to liquefied gas (LNG), as well as pipelines and storage facilities.

Sempra sold a 20% share in the unit in 2021 to Kohlberg Kravis Roberts & Co., for approximately $16,9 billion. In 2022 it sold a 10% share to Abu Dhabi Investment Authority, for approximately $17.9billion.

The transaction announced on Monday is expected to be completed within the next 12-18 months. (Reporting and editing by Sahal Muhammad in Bengaluru, Tanay Dhumal from Bengaluru)

(source: Reuters)