Sempra seals $10B KKR deal, cedes 65% of infrastructure unit

Sempra said Thursday it completed the sale of a 45% equity stake in Sempra Infrastructure Partners to affiliates of KKR, a transaction valued at about $10 billion. The KKR-led consortium now holds 65% of the business. Sempra retains 25%, and an affiliate of Abu Dhabi Investment Authority keeps the remaining 10%. Canada Pension Plan Investment Board joined as an indirect investor.

At closing, Sempra picks up roughly $4.65 billion in cash, subject to adjustments, with more payments scheduled through 2027 and 2034. Those deferred pieces include about $4.14 billion in principal accruing 7.5% annual interest through December 2027 and another $1.2 billion accruing interest at rates starting at 8.5%. Including interest through maturity, total expected proceeds could reach about $11.5 billion.

Sempra Infrastructure Partners runs liquefied natural gas export facilities and related energy infrastructure across North America. CEO Jeffrey Martin framed the sale as a simplification play: "This transaction supports our efforts to further simplify the company's business model while supporting the growth of our utilities in Texas and California." The company is steering capital toward regulated utilities in those two states, where rising electricity demand is pulling in more infrastructure spending.

The closing lands after Sempra Infrastructure sold Ecogas México in August, part of a broader capital recycling push. Sempra previously reported third quarter adjusted earnings of $917 million, up from $728 million a year earlier, while its Texas utility Oncor projected a roughly 20% increase in its next five-year base capital investment plan.