(Reuters) – Utility firm Sempra will sell some energy infrastructure assets in Mexico and a minority stake in Sempra Infrastructure to fund its five-year capex plan of $56 billion, it said on Monday. In February, the company had forecast a five-year capital plan of about $56 billion, a 16% increase from its prior plan, with […]
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Sempra to sell Mexico energy assets, stake in infrastructure unit
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(Reuters) – Utility firm Sempra will sell some energy infrastructure assets in Mexico and a minority stake in Sempra Infrastructure to fund its five-year capex plan of $56 billion, it said on Monday.
In February, the company had forecast a five-year capital plan of about $56 billion, a 16% increase from its prior plan, with over 90% of projected capital expenditures focused on regulated utility investments in Texas and California.
“These actions are designed to advance our company’s broader effort to simplify the business and minimize reliance on future issuances of common equity to fund the company’s five-year capital plan,” said CEO Jeffrey Martin.
The utility firm plans to sell Ecogas Mexico, which holds three utility franchises and distributes natural gas to more than 600,000 residential, commercial and industrial consumers in Mexico’s Mexicali, Chihuahua and La Laguna-Durango regions.
The San Diego, California-based company also plans to sell a minority stake in Sempra Infrastructure, which has liquefied natural gas (LNG) assets and related pipeline and storage infrastructure.
Sempra previously sold a 20% stake in the unit to Kohlberg Kravis Roberts & Co. for about $16.9 billion in 2021 and a 10% stake to the Abu Dhabi Investment Authority for about $17.9 billion in 2022.
The transactions announced on Monday are expected to be completed over the next 12 to 18 months.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Sahal Muhammed)