Here are 1-3 brief analogies for Sempra:

• Like PG&E, but for both electricity and natural gas across Southern California and parts of Texas.
• Similar to Con Edison or Duke Energy, but with a focus on electricity and natural gas distribution in key Western and Southern U.S. markets.
• The AT&T or Verizon of essential energy, providing vital electricity and natural gas services to millions of customers.

• Electric Services: Providing electricity generation and delivery to residential and commercial customers.
• Natural Gas Services: Supplying natural gas to homes and businesses, including distribution, transmission, and storage.
• Electricity Transmission & Distribution: Operating and maintaining the regulated infrastructure for transmitting and distributing electricity.

Sempra (SRE) primarily sells its electric and natural gas services directly to a broad base of individual consumers and businesses within its service territories, rather than to a few major corporate customers.

The company serves the following categories of customers:

1. Residential Customers: Sempra provides electric and natural gas services to millions of homes and individuals, referred to as "population" in its service areas, including San Diego, Southern California, and Texas.
2. Commercial and Business Customers: Sempra supplies electricity and natural gas to a wide range of businesses and commercial enterprises within its operating regions.

Jeffrey W. Martin
Chairman, Chief Executive Officer and President

Background: Jeffrey W. Martin leads Sempra as Chairman, Chief Executive Officer, and President. He has served as CEO since May 2018 and as Chairman since December 2018. Under his leadership, Sempra, a Fortune 500 utility company, manages over $50 billion in market capitalization and nearly $110 billion in assets. He oversees a $65 billion capital campaign, the largest in the company's history. Prior to his current role, Martin was executive vice president and chief financial officer for Sempra from 2017 to 2018. He also served as CEO of San Diego Gas & Electric Company and president and CEO of Sempra U.S. Gas & Power and Sempra Generation. Martin was a commissioned officer in the U.S. Army, where he served as an air cavalry pilot.

Karen Sedgwick
Executive Vice President and Chief Financial Officer

Background: Karen Sedgwick is the Executive Vice President and Chief Financial Officer of Sempra, leading corporate functions such as accounting, treasury, tax, finance, and investor relations. With over 32 years at Sempra, she has held numerous leadership positions within the company, including chief administrative officer, chief human resources officer, and treasurer. Her experience also spans financial planning, investor relations, audit services, and enterprise risk management roles.

Justin Bird
Executive Vice President

Background: Justin Bird serves as Executive Vice President of Sempra and is also the Chief Executive Officer of Sempra Infrastructure, one of the company's three growth platforms. In his role at Sempra, he leads several corporate functions, including corporate development and financial planning. Bird has been with the Sempra family of companies for over 20 years, holding various leadership roles, including previously serving as CEO of Sempra LNG.

Caroline Winn
Executive Vice President

Background: Caroline Winn is an Executive Vice President at Sempra, where she is responsible for overseeing Sempra California's dual utility platform, which includes San Diego Gas & Electric Company and Southern California Gas Company. Additionally, she holds the position of chairman of the board for both of these companies.

Diana Day
Chief Legal Counsel and Corporate Secretary

Background: Diana Day holds the titles of Chief Legal Counsel and Corporate Secretary for Sempra, overseeing the company's legal affairs and governance. With more than 25 years of experience at Sempra, she possesses extensive expertise in corporate law, mergers and acquisitions, risk management, and governance. She has held multiple leadership roles across the Sempra family of companies.

Here are the key risks to Sempra's business:

1. Regulatory Challenges and Wildfire Liabilities in California: Sempra's California utilities, San Diego Gas & Electric Company and Southern California Gas Company, operate within a highly regulated environment that poses significant financial and operational risks. The California Public Utilities Commission (CPUC) can disallow costs and impose penalties, as demonstrated by recent regulatory disallowances at Sempra California. A major risk stems from California's doctrine of inverse condemnation, which holds utilities strictly liable for property damage caused by their facilities, even without a finding of fault. Recovering these wildfire-related costs from insurance or regulatory mechanisms is highly uncertain, presenting a material weakness and potentially an "existential threat" to California electric utilities. Ongoing legal challenges, such as those related to the Eaton fire, further highlight this evolving risk.
2. Execution Risk and Capital Intensity of Sempra Infrastructure Projects: Sempra has substantial capital investment plans, particularly within its Sempra Infrastructure segment, focusing on large-scale energy infrastructure projects including liquefied natural gas (LNG) facilities. These projects, such as Port Arthur LNG Phase 2, require significant financial outlay and involve long development timelines, introducing considerable execution risk. The company faces potential challenges including delays, cost overruns, and shifts in market demand or policy affecting LNG. Sempra's high debt load and sensitivity to interest rate fluctuations further amplify the financial risks associated with these capital-intensive ventures.
3. Climate Change Transition Risks and Decarbonization Pressures: While Sempra has established goals to achieve net-zero greenhouse gas emissions by 2050, its continued investments in natural gas assets expose it to transition risks as economies move towards decarbonization. Evolving climate change policies and regulations, including potential reforms to limit or prohibit fossil fuels, could lead to expensive projects becoming underused or impact the company's ability to recover costs. Additionally, there is a risk of "consumer rejection of fossil fuels products" and increasing societal pressures for cleaner energy sources.

Clear Emerging Threats for Sempra (SRE):

• Decentralized Energy Generation and Storage: The increasing adoption of rooftop solar panels, home and commercial battery storage systems, and microgrids allows customers to generate and store their own electricity, reducing their reliance on Sempra's grid for power supply. This directly threatens the demand for and revenue from Sempra's electricity distribution and transmission services, particularly in its California markets which have high rates of solar adoption.
• Electrification and Decarbonization Policies: A growing push, especially in California, for policies that encourage the electrification of buildings (e.g., replacing natural gas furnaces and water heaters with electric alternatives) and reduce reliance on fossil fuels, poses a significant long-term threat to Sempra's substantial natural gas distribution and transmission business (Southern California Gas Company). These initiatives aim to decrease natural gas consumption, potentially leading to reduced demand and revenue for Sempra's gas operations.

Sempra operates in regulated energy markets in Southern California and Texas. The addressable market sizes for its main products and services are as follows:

• Southern California Gas Company (Natural Gas Distribution, Transmission, and Storage)

  • Addressable Market Size: Approximately $6.29 billion (annual revenue)
  • Region: Southern California, excluding San Diego County, the City of Long Beach, and the desert area of San Bernardino. This segment serves over 21 million consumers across a 24,000 square mile service territory.

• Sempra Texas Utilities (Regulated Transmission and Distribution of Electricity)

  • Addressable Market Size: Approximately $4.4 billion (annual revenue)
  • Region: Texas. This estimate is based on the transmission-specific revenue of Oncor, Texas's largest transmission and distribution utility, which operates a similar regulated business model in Texas. Sempra Texas Utilities serves 3.8 million homes and businesses.

• San Diego Gas & Electric Company (Electric Services)

  • Addressable Market Size: Null
  • Explanation: While San Diego Gas & Electric (SDG&E) provides electric services to approximately 3.6 million people in Southern California, a significant and increasing portion of its customers receive their electricity supply from Community Choice Aggregators (CCAs) or other entities. SDG&E's role for these customers is primarily energy delivery, grid maintenance, and customer service related to delivery. A precise market size for these "delivery-only" services in its specific service territory in terms of revenue is not readily available.

• San Diego Gas & Electric Company (Natural Gas Services)

  • Addressable Market Size: Null
  • Explanation: San Diego Gas & Electric (SDG&E) supplies natural gas to approximately 3.3 million people in a 4,100 square mile area of Southern California. However, a specific addressable market size in terms of revenue for this particular natural gas distribution segment is not available in the provided information.

Expected Drivers of Future Revenue Growth for Sempra (SRE) Over the Next 2-3 Years:

• Record Capital Plan and Utility Investments: Sempra is embarking on a record $65 billion capital plan for 2026-2030, with approximately 95% of this investment specifically allocated to utility projects in its California and Texas segments. This substantial capital deployment is projected to fuel an 11% compound annual growth rate (CAGR) in the company's rate base, increasing it from $57 billion in 2025 to an anticipated $97 billion by 2030.
• Expansion in Texas Utilities: Growth within Sempra's Texas utilities, primarily Oncor, is expected to be a significant revenue driver. The rate base for Sempra Texas is forecast to achieve an 18% CAGR and is anticipated to become the majority of Sempra's total rate base by 2030. This expansion is driven by considerable transmission investments, including the acceleration of the Permian Basin Reliability Plan and potential opportunities arising from ERCOT projects and increasing data center demand.
• Advancement of LNG Projects: While shifting towards a more regulated utility business model, Sempra's Liquefied Natural Gas (LNG) franchise continues to contribute to future growth. The Port Arthur LNG Phase 1 project is on track to achieve its Commercial Operation Date (COD) by or near the end of 2027. Additionally, the ECA LNG Phase 1 project has reached mechanical completion. These key project milestones are expected to support revenue growth well into the next decade.
• Operational Efficiencies and Cost Reduction Programs: Sempra is actively pursuing operational efficiencies and cost reduction through initiatives such as "Fit for 2026." These programs are designed to modernize operations, enhance capital efficiency, and optimize the company's cost structure. Such improvements are aimed at bolstering earnings growth and improving financial performance.
• Strategic Asset Sales and Capital Recycling: The company is focused on simplifying its business model and recycling capital through strategic asset divestitures. This includes the planned sale of a 45% stake in Sempra Infrastructure Partners for $10 billion, expected to close in the second or third quarter of 2026, and the sale of Ecogas in Mexico for approximately $500 million. The proceeds from these sales are intended to fund the company's substantial capital program without the need for new common equity issuances and to strengthen the balance sheet.

Share Repurchases

• Sempra initiated a $500 million stock repurchase program in December 2021, completing $300 million in the fourth quarter of that year.

Share Issuance

• Sempra's 2026-2030 capital plan is designed to eliminate the need for new common equity issuances to fund its base capital plan.

Inbound Investments

• In September 2025, Sempra agreed to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR and Canada Pension Plan Investment Board for $10 billion in cash, with the transaction expected to close in Q2-Q3 2026.
• In December 2021, Sempra sold a 10% non-controlling interest in Sempra Infrastructure Partners to a subsidiary of the Abu Dhabi Investment Authority (ADIA) for $1.785 billion in cash. This followed an earlier sale of a 20% non-controlling interest to a KKR affiliate in October 2021.
• In September 2025, an investor consortium led by Blackstone Credit & Insurance, including KKR, Apollo-managed funds, and Private Credit at Goldman Sachs Alternatives, acquired a 49.9% minority equity interest in the Port Arthur LNG Phase 2 project for $7 billion.

Outbound Investments

• Sempra Infrastructure Partners reached a final investment decision for Port Arthur LNG Phase 2 in September 2025, with estimated incremental project capital expenditures of $12 billion, plus approximately $2 billion for shared common facilities.
• As part of its capital recycling strategy, Sempra agreed in Q4 2025 to sell Ecogas México for approximately $500 million, with the transaction anticipated to close in Q2 or Q3 2026.

Capital Expenditures

• Sempra reported approximately $13 billion in capital expenditures in 2025, primarily directed towards modernizing energy infrastructure in its Texas and California utilities.
• The company announced a record five-year capital plan of approximately $65 billion for 2026-2030, an increase from the $56 billion plan for 2025-2029. Over 95% of these projected expenditures are focused on regulated utility investments in Texas and California.
• In 2024, Sempra's capital expenditures surged to $8.21 billion, with approximately $4.7 billion invested in Sempra Texas (Oncor) to support customer needs and a focus on wildfire and climate resilience in Sempra California. In 2023, the company invested $4.6 billion in capital projects in California and roughly $3.8 billion in Sempra Texas.