(SRE) Sempra Energy - Ratings and Ratios

Sempra (NYSE: SRE) is a U.S.-based energy-infrastructure firm that operates through three distinct segments-Sempra California, Sempra Texas Utilities, and Sempra Infrastructure-serving both domestic and international markets. The company, incorporated in 1996 and renamed from Sempra Energy in May 2023, is headquartered in San Diego, California, and is classified under the GICS sub-industry “Multi-Utilities.”

The Sempra California segment delivers natural-gas and electric service to roughly 3.6 million electric customers and 3.3 million gas customers across 4,100 square miles in Southern and Central California. Its gas system spans 24,000 square miles, serving a population of 21.1 million. In FY 2023 the segment generated approximately $5.2 billion in revenue, reflecting a 4 % year-over-year increase driven by higher residential consumption and modest rate adjustments approved by the California Public Utilities Commission.

Sempra Texas Utilities operates a regulated electricity transmission and distribution network. As of 12/31/2024 the transmission grid comprised 18,324 circuit miles and 1,288 substations, while the distribution system covered about 125,975 miles of lines serving roughly 4 million delivery points. The segment interconnects with 192 third-party generators totaling 58,597 MW, positioning it to capture growth from Texas’s expanding renewable-energy capacity. FY 2023 earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.8 billion, with a dividend payout ratio of 70 %.

The Sempra Infrastructure segment focuses on the development, construction, operation, and investment in energy-infrastructure projects that facilitate cleaner-energy access across the United States, Mexico, and other international markets. Notable recent activity includes the acquisition of a 1.2 billion-cubic-foot per-day LNG storage facility in Texas and the launch of a joint-venture to build a 500-MW green-hydrogen hub in northern Mexico. The segment’s pipeline and storage assets collectively provide over 2 billion cubic feet per day of transport capacity, a metric that is increasingly valuable as natural-gas demand rebounds post-pandemic.

Key sector drivers for Sempra include the ongoing U.S. transition toward lower-carbon fuels, which sustains demand for natural-gas infrastructure, and regulatory environments that influence rate case outcomes in California and Texas. Additionally, macro-economic factors such as interest-rate trends affect the cost of capital for large-scale infrastructure projects, while the rising adoption of renewable generation creates ancillary revenue opportunities through interconnection services.

For a deeper, data-driven look at how these dynamics translate into valuation metrics, you may find ValueRay’s analytical dashboards useful.