Sempra
Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It also invests in and operates electric and gas utilities and other energy infrastructure that provides energy services to customers. The Sempra California segment provides natural gas and electric services to Southern California and part of central California. As of December 31, 2025, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2025, it served a population of 21.3 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution utility business. As of December 31, 2025, transmission system included approximately 18,418 circuit miles of transmission lines; 1,333 transmission and distribution substations; interconnection to 230 third-party generation facilities totaling 63,670 MW; and distribution system included more than 4.1 million points of delivery and consisted of 127,398 circuit miles of overhead and underground lines. The Sempra Infrastructure segment develops, constructs, operates, and invests in energy infrastructure to help enable the access to cleaner energy in markets in the United States, Mexico, and internationally. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is headquartered in San Diego, California.
What does it do?
Sempra is one of America's largest energy companies — it owns the pipes and wires that deliver electricity and natural gas to millions of homes and businesses. Think of it as the landlord of energy infrastructure: customers pay to use Sempra's networks, and there's really no alternative because you can't build a second set of gas pipes down the same street. Its biggest business, SoCalGas, is the largest natural gas distribution utility in the US, serving about 21 million people across Southern California. It also runs electric utilities in Texas and exports liquefied natural gas (LNG) — basically gas chilled into liquid form so it can be shipped overseas — from terminals on the Gulf Coast.
Sempra sits at the intersection of two massive investment themes right now: the surge in US LNG exports to Europe following Russia's energy crisis, and the explosion in electricity demand driven by AI data centers and electric vehicles. Its Texas utility business puts it right in the path of one of the fastest-growing power markets in the country. At a time when reliable, large-scale energy infrastructure is scarce, Sempra controls assets that would cost tens of billions of dollars and decades to replicate.
How does it make money?
Sempra makes money in three main ways. First, its California segment — SoCalGas and SDG&E — earns regulated returns by charging customers for gas delivery and electricity; this brought in the bulk of its $13.7 billion in 2024 revenue. Second, its Texas segment (Oncor, a large electric utility) earns fees for transmitting electricity across the state's grid. Third, its Infrastructure segment develops and operates LNG export terminals, like Port Arthur LNG, earning fees from energy companies that want to ship US gas abroad — revenue that is largely locked in through long-term contracts.
Why do investors care?
The growth story is really about two bets: Texas and LNG. Oncor's service territory in Texas is adding customers faster than almost anywhere else in the US, driven by population growth and a manufacturing boom, which means Sempra can invest billions in new grid infrastructure and earn a predictable regulated return on every dollar spent. On the LNG side, global demand for US natural gas — especially from Europe and Asia — is structurally rising, and Sempra's Port Arthur LNG project is one of the few large-scale export facilities actually under construction. For the thesis to work, Texas electricity demand needs to keep growing, LNG contracts need to stay intact, and California regulators need to keep approving fair rates.
Deep Dive
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