Sempra Announces $10 Billion Sale of 45% Stake in Sempra Infrastructure Partners

Accretive Transaction Improves Financial Strength and Funds 2025–2029 Capital Plan
Conference Call: Sept. 23, 2025, 11 a.m. EST

SAN DIEGO, Sept. 23, 2025 — Sempra (NYSE: SRE) today announced several strategic initiatives that advance the company’s corporate strategy, including the execution of five value creation initiatives designed to simplify Sempra’s business model, improve financial performance, and reduce risk. These actions are expected to strengthen the company’s ability to deliver improved earnings growth while benefiting customers and communities across its service territories.

“These transactions further Sempra’s strategy by advancing our capital recycling program and transitioning to a leading U.S. utility growth business,” said Jeffrey W. Martin, chairman and CEO of Sempra.

Sale of Equity Stake in Sempra Infrastructure Partners

Sempra has agreed to sell a 45% equity interest in Sempra Infrastructure Partners (SIP), a leading North American energy infrastructure platform, to affiliates of KKR and the Canada Pension Plan Investment Board (CPP Investments).

• Transaction proceeds: $10 billion (equity value $22.2B; enterprise value $31.7B)
• Cash distribution schedule: 47% at close, 41% by year-end 2027, balance ~7 years after closing
• Expected closing: Q2–Q3 2026, subject to regulatory and other approvals
• Post-closing ownership: KKR-led consortium 65%, Sempra 25%, Abu Dhabi Investment Authority 10%

“This transaction strengthens our partnership with KKR and supports our five value creation initiatives, including simplifying our business and funding strong utility growth in Texas and California,” said Martin.

Raj Agrawal, Global Head of Real Assets at KKR, added: “We are excited to grow this strategic partnership and welcome CPP Investments as we expand SIP’s assets to meet global energy demand.”

Expected Benefits

• Focus on building a leading U.S. utility growth business
• Reduced business risk through lower exposure to non-utility investments
• Strengthened balance sheet and improved credit profile
• Five-year average annual accretion of $0.20 EPS starting in 2027
• Highlights value of LNG franchise
• Eliminates planned equity issuances in 2025–2029 capital plan

Port Arthur LNG Phase 2 Final Investment Decision

SIP has approved the development of Port Arthur LNG Phase 2:

• Includes two liquefaction trains, one storage tank, and associated facilities (13 Mtpa capacity)
• Estimated incremental capital expenditures: $12B + $2B for shared facilities
• Commercial operations expected: 2030 (Train 3) and 2031 (Train 4)
• Equity financing: 49.9% minority stake acquired by Blackstone Credit & Insurance, KKR, Apollo-managed funds, and Goldman Sachs Private Credit
• Majority ownership retained by SIP: 50.1%
• Engineering, procurement, and construction led by Bechtel Energy Inc.
• Long-term offtake agreements: 20-year contracts with ConocoPhillips, EQT, JERA, and SIP

Earnings Guidance

Sempra updated its 2025 GAAP EPS guidance to $3.29–$3.69 and reaffirmed adjusted EPS guidance of $4.30–$4.70. Full-year 2026 adjusted EPS guidance remains $4.80–$5.30, reflecting projected long-term EPS CAGR of 7–9% for 2025–2029. Updates to the five-year capital plan will be provided in Q4 2026.

Conference Call

Sempra is hosting a conference call on Sept. 23 at 11 a.m. EST. Access is available at sempra.com/investors. A replay will be available shortly after the broadcast.

Advisors

• BofA Securities – financial advisor to Sempra
• Sullivan & Cromwell LLP – legal advisor to Sempra
• Citi – financial advisor to KKR
• Simpson Thacher – legal advisor to KKR
• Kirkland & Ellis LLP – legal advisor to CPP Investments
• Goldman Sachs & Co. – exclusive structuring agent for SIP Phase 2
• Sullivan & Cromwell LLP and Baker Botts LLP – legal counsel for SIP

About Sempra

Sempra is a North American energy infrastructure company delivering electricity, gas, and LNG solutions. Serving nearly 40 million customers, Sempra operates in California, Texas, and beyond. The company is recognized for safety, operational excellence, and sustainability, including inclusion in the Dow Jones Sustainability Index North America. More information is available at sempra.com and on social media @Sempra.

Forward-Looking Statements: This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to risks including regulatory approvals, market conditions, construction delays, counterparty risks, climate policies, and other factors. See Sempra’s SEC filings and website for additional details.