Sempra Strikes $17 Billion Double Play With KKR, CPPIB, and Blackstone

Sempra SRE has set a new course with a $10 billion deal, selling a 45% stake in its infrastructure arm to affiliates of KKR KKR and Canada Pension Plan Investment Board. The move lifted shares 3.4% in pre-market trading and, according to management, could push the company closer to its long-term target of about 95% of earnings from regulated U.S. utilities. By eliminating the need for previously planned equity issuance, the transaction is designed to improve Sempra's credit profile and sharpen its focus on stable, utility-driven returns.

At the same time, Sempra is bringing in fresh capital for growth. Blackstone BX will lead a $7 billion investment in the Port Arthur LNG Phase 2 project in Texas, acquiring a 49.9% minority equity stake. The facility is already under construction, and Sempra confirmed a final investment decision this week. The sale of the infrastructure stake is structured with staged payouts47% at close, 41% by year-end 2027, and the balance about seven years lateradding a long-dated cash flow component to the story. If approvals are secured, the KKR-led consortium could hold 65% of Sempra Infrastructure Partners by 2026, with Sempra retaining 25% and Abu Dhabi Investment Authority continuing at 10%.

For investors, the dual announcements highlight a balancing act between stability and expansion. Utilities and power providers are seeing renewed demand from the rise of energy-hungry data centers, creating new tailwinds in what was once a slow-moving sector. By locking in more predictable earnings while attracting global capital to fund LNG expansion, Sempra could be positioning itself for a mix of steadier cash flows and longer-term growth opportunities, even as the transactions remain subject to execution risk and regulatory clearance.