Sempra Infrastructure, a division of Sempra (SRE, Financial), has secured a crucial permit from the U.S. Department of Energy for its Port Arthur LNG Phase 2 development initiative. This authorization enables the exportation of up to 13.5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) to countries without free trade agreements with the U.S.
This non-FTA permit represents a significant step in regulatory approvals for the intended project. If completed, it could enhance the Port Arthur LNG facility's total liquefaction capacity to around 26 Mtpa. The venture remains in active marketing and development phases, positioning it well for future progress.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Sempra (SRE, Financial) is $81.00 with a high estimate of $89.00 and a low estimate of $70.00. The average target implies an upside of 3.91% from the current price of $77.95. More detailed estimate data can be found on the Sempra (SRE) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Sempra's (SRE, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sempra (SRE, Financial) in one year is $77.71, suggesting a downside of 0.31% from the current price of $77.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sempra (SRE) Summary page.
SRE Key Business Developments
Release Date: May 08, 2025
- Adjusted EPS: $1.44 for Q1 2025, compared to $1.34 in Q1 2024.
- GAAP Earnings: $906 million or $1.39 per share for Q1 2025, compared to $801 million or $1.26 per share in Q1 2024.
- Adjusted Earnings: $942 million for Q1 2025, compared to $854 million in Q1 2024.
- Full Year 2025 EPS Guidance: Affirmed at $4.30 to $4.70.
- 2026 EPS Guidance: Affirmed at $4.80 to $5.30.
- Investment Plan: $13 billion in energy infrastructure for 2025, with over $10 billion targeted for the US.
- Sempra California Earnings: $88 million from higher CPUC base operating margin and $54 million of higher income tax benefits.
- Sempra Texas Earnings: $37 million of lower equity earnings due to higher interest and operating expenses.
- Sempra Infrastructure: $2 billion decrease driven by lower asset optimization, partially offset by lower O&M and higher interest income.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sempra (SRE, Financial) reported first quarter 2025 adjusted EPS of $1.44, an increase from $1.34 in the prior period.
- The company affirmed its full-year 2025 adjusted EPS guidance range of $4.30 to $4.70 and 2026 EPS guidance of $4.80 to $5.30.
- Sempra (SRE) plans to invest approximately $13 billion in energy infrastructure in 2025, with over $10 billion targeted for the U.S.
- The company is executing its 'Fit for 2025' campaign to reduce costs and improve productivity through technology adoption, including AI.
- Sempra (SRE) is well-positioned to construct significant portions of ERCOT's proposed $32 billion to $35 billion transmission investments in Texas.
Negative Points
- Sempra (SRE) faces potential impacts from tariffs, though they are working to mitigate these through domestic sourcing and foreign trade zones.
- The macroeconomic environment may affect the timing of project developments, such as Port Arthur LNG Phase 2.
- Oncor's lower equity earnings were primarily due to higher interest and operating expenses, despite higher revenues from invested capital.
- The company is monitoring potential legislative changes in Texas that could impact regulatory frameworks and investments.
- Sempra (SRE) is navigating complex regulatory environments in California, including cost of capital applications and wildfire mitigation efforts.
