SEMPRA - POTENTIAL DIVESTITURES

3 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

SEMPRA - POTENTIAL DIVESTITURES

SEMPRA – POTENTIAL DIVESTITURES

SEMPRA INFRASTRUCTURE

On March 28, 2025, we determined to move forward with a process to sell (i) Ecogas, a natural gas regulated distribution utility that operates in three separate distribution zones in Mexicali, Chihuahua and La Laguna-Durango, Mexico, and (ii) a portion of our 70% interest in SI Partners equal to between 15% and 30% of SI Partners’ total outstanding interests (the Minority Interest Sale). SI Partners owns non-U.S.-utility energy infrastructure assets, including LNG and natural gas infrastructure in the U.S. and Mexico and renewable energy, liquid petroleum gas and refined products infrastructure in Mexico.

On March 28, 2025, we issued a notice to SI Partners’ minority partners, KKR Pinnacle and ADIA, of our intent to pursue the Minority Interest Sale (such notice, the Sale Notice).

Under SI Partners’ agreement of limited partnership (the LP Agreement), KKR Pinnacle and ADIA have certain rights of first offer for the sale of our interests in SI Partners to certain of our non-affiliates. KKR Pinnacle has 30 business days after the Sale Notice was given to notify us of its offer to purchase the interests included in the Sale Notice. If KKR Pinnacle does not exercise this right, then ADIA will have 10 business days thereafter to make an offer to purchase such interests. If either KKR Pinnacle or ADIA offers to purchase the interests included in the Sale Notice, then we will have 30 business days thereafter to notify KKR Pinnacle or ADIA, as applicable, of our interest in negotiating a definitive sale agreement. If neither KKR Pinnacle nor ADIA exercises its rights of first offer or a proposed transaction is not timely consummated under the terms of the LP Agreement, which terms can be modified by mutual agreement among the parties, then we will have the right to pursue the Minority Interest Sale with third parties.

We expect the Ecogas sale and the Minority Interest Sale to be completed over the next 12-18 months, subject to reaching agreement on acceptable pricing and other terms, securing required regulatory and other approvals, finalizing definitive contracts and other factors and considerations.