10:31 AM EDT, 09/23/2025 (MT Newswires) -- Sempra ( SRE ) on Tuesday agreed to sell a 45% stake in its energy infrastructure platform to affiliates of investment firm KKR (KKR) and Canada Pension Plan Investment Board in a cash deal worth about $10 billion, as the utility firm aims to simplify its business model and improve earnings growth.

The transaction implies an equity value of $22.2 billion and an enterprise value of $31.7 billion for Sempra Infrastructure Partners, the company said. Sempra's ( SRE ) shares increased 4.4% in Tuesday trade.

The deal, which requires approval from regulators, is expected to complete in the second or third quarter of 2026. Following completion, a KKR-led consortium will become the majority owner of Sempra Infrastructure with a 65% interest, while Sempra ( SRE ) will retain a 25% stake in the company alongside Abu Dhabi Investment Authority's current 10% ownership.

Sempra ( SRE ) anticipates receiving 47% of the cash proceeds from the deal at completion and 41% by the end of 2027. The remaining balance is expected to be received roughly seven years after completion, allowing the company to generate "attractive" post-closing interest income as it uses the proceeds for capital expenditures at its US utilities over time, it said.

"The transaction announced today underscores our commitment to extend our strategic partnership with KKR," Chief Executive Jeffrey Martin said in a statement. "It also directly supports our five value creation initiatives designed to simplify our business, efficiently fund strong utility growth in Texas and California and improve our financial strength."

The company expects the sale to sharpen its focus on developing a US utility growth business and reduce risk by lowering exposure to non-utility investments. The transaction is also estimated to provide a five-year average annual accretion to earnings of $0.20 per share beginning in 2027.

Sempra ( SRE ) reiterated its full-year 2025 adjusted EPS outlook range of $4.30 to $4.70 and maintained its guidance of $4.80 to $5.30 for the following year. The current consensus on FactSet is for non-GAAP EPS of $4.52 for this year and $5 for 2026.

Additionally, Sempra Infrastructure finalized its investment plans to develop, construct and operate the Port Arthur Liquefied Natural Gas phase 2 expansion project in Texas, including two natural gas liquefaction trains and an LNG storage tank, according to Sempra ( SRE ). The incremental capital expenditures for phase 2 of the project are estimated at $12 billion, plus roughly $2 billion for shared common facilities, with commercial operations for trains 3 and 4 expected to begin in 2030 and 2031, respectively, the company said.

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