Sempra

Last updated

Sempra
Company type Public
Industry Utilities
Founded1998;26 years ago (1998)
Headquarters San Diego, California, U.S.
Key people
Jeffrey W. Martin (Chairman and CEO)
RevenueIncrease2.svg US$16.7 billion (2023)
Increase2.svgUS$3.6 billion (2023)
Total assets Increase2.svgUS$87.2 billion (2023)
Total equity Increase2.svgUS$33.7 billion (2023)
Number of employees
20,000 (2023)
Subsidiaries
Website sempra.com
Footnotes /references
Financials as of March 25,2024.
References: [1]

Sempra is a North American public utility holding company based in San Diego, California. The company is one of the largest utility holding companies in the United States with nearly 40 million consumers. Sempra's focus is on electric and natural gas infrastructure and its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company in Texas; and Sempra Infrastructure, with offices in California and Texas.

Contents

As of 2023, Sempra reported more than $87.2 billion in total assets and over 20,000 employees. [2] The company is led by chairman and chief executive officer Jeffrey Martin, who assumed that role in May 2018.

Sempra ranks as one of the largest energy companies in the world and is ranked #285 on the Fortune 500 list as of 2023 and #312 on the Forbes Global 2000 list as of 2023. In 2024, Sempra was named one of the World's Most Admired Companies by Fortune Magazine, marking the 14th year the company is on this prestigious list. [3] Sempra was also recognized by Newsweek as one of America's Most Responsible Companies, earning this distinction for the fifth consecutive year. [4]

History

1998 to 2018

Sempra Energy, now known as Sempra, was created through the 1998 merger of Los Angeles-based Pacific Enterprises, the parent company of SoCalGas, and Enova Corporation, the parent company of SDG&E. [5]

In 1999, the company acquired two utilities in South America; Chilquinta Energia in Chile and Luz Del Sur in Peru, which gave Sempra Energy an entry into the expanding Latin American energy market. [6]

In 2003, Sempra Energy Resources, the former power generation subsidiary of Sempra Energy, completed three state-of-the-art power plant projects in Arizona, California and New Mexico.

Sempra was sued over claims it manipulated natural gas supplies and electricity contracts during the 2001 California electricity crisis. [7] In 2006, the company agreed to pay $377 million to settle gas supply claims, and in 2010, it paid another $410 million to settle claims on electricity price gouging, but has never admitted wrongdoing. [7]

In 2007, the company created the Sempra Energy Foundation (now known as Sempra Foundation) as a 501(c)(3) private foundation. [8] Since its inception, the foundation has contributed nearly $45 million through philanthropic investments in communities where Sempra employees live and work. The foundation matches employees' charitable contributions and has matched $13 million as of 2021. Sempra reported giving $13.85 million in COVID-19 response across the foundation and its operating companies. [9]

On March 8, 2018, regulators in Texas approved Sempra Energy's purchase of a majority stake in Oncor for $9.45 billion. [10]

2019 to Present

On January 16, 2019, Sempra Energy was added to the Dow Jones Utility Average, replacing Pacific Gas and Electric. [11]

Over 2018 and 2019, Sempra completed its divestiture of its U.S. renewables and non-utility natural gas storage assets, generating approximately $2.5 billion in cash proceeds. The company stated its intent to refocus its investments in North American transmission and distribution infrastructure.

In March 2019, Sempra Energy and Oncor Electric Delivery Company announced the acquisition of InfraREIT, and Sempra Energy's acquisition of a 50% interest in Sharyland Utilities. These utility deals were lauded by the company as disciplined, low-risk investments in the fast-growing Texas market.

In April 2020, Sempra Energy announced it had completed the sale of its utility business in Peru, Luz del Sur, for $3.59 billion. [12] In June 2020, Sempra Energy announced it completed the sale of its Chilean businesses to China's State Grid International Development Ltd for $2.23 billion in cash. These two sales completed Sempra Energy's exit from South America. [13]

In June 2021, Sempra Energy announced it was rebranding to Sempra. It launched an updated logo and dropped "Energy" from its name to emphasize its core focus on infrastructure that delivers energy.

In 2022, shortly after Russia attacked Ukraine, Sempra Infrastructure, a subsidiary of Sempra, announced a series of agreements with European energy companies for U.S. liquefied natural gas (LNG) to help displace reliance on Russian gas.

In 2024, Sempra announced a record five-year capital plan of $48 billion for 2023-2028, to improve safety, bolster reliability and support the delivery of cleaner sources of energy across its three growth platforms: Sempra California, Sempra Texas and Sempra Infrastructure. [14]

Operating companies

Current

Former

The following subsidiaries have been reformed into Sempra LNG & Midstream and Sempra Renewables: [17]

Awards and recognition

In 2024, Sempra was named to Fortune Magazine's World's Most Admired Companies list [21] and was also recognized by Newsweek as one of America's Most Responsible Companies. [4] Sempra was also included in The Wall Street Journal's 250 Best-Managed Companies list [22] . The company has received numerous recognitions for leadership in diversity and inclusion, [23] including being named to Bloomberg's Gender Equality Index, [24] Forbes Best Employers for Diversity [25] and DiversityInc's #1 for Top Utilities, #4 for Top Regional Companies and #15 for Top Companies for Philanthropy [26] The company has also been named to a number of stock market indexes focused on sustainability, including the Dow Jones Sustainability Index North America. Its subsidiaries are routinely recognized for leadership in reliability, resilience, technology and innovation and corporate responsibility.

See also

Related Research Articles

Southern Company is an American gas and electric utility holding company based in the Southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama. The company is the second largest utility company in the U.S. in terms of customer base, as of 2021. Through its subsidiaries it serves 9 million gas and electric utility customers in 6 states. Southern Company's regulated regional electric utilities serve a 120,000-square-mile (310,000 km2) territory with 27,000 miles (43,000 km) of distribution lines.

Enbridge Inc. is a Canadian multinational pipeline and energy company headquartered in Calgary, Alberta, Canada. Enbridge owns and operates pipelines throughout Canada and the United States, transporting crude oil, natural gas, and natural gas liquids, and also generates renewable energy. Enbridge's pipeline system is the longest in North America and the largest oil export pipeline network in the world. Its crude oil system consists of 28,661 kilometres of pipelines. Its 38,300 kilometre natural gas pipeline system connects multiple Canadian provinces, several US states, and the Gulf of Mexico. The company was formed by Imperial Oil in 1949 as the Interprovincial Pipe Line Company Limited to transport Alberta oil to refineries. Over time, it has grown through acquisition of other existing pipeline companies and the expansion of their projects.

<span class="mw-page-title-main">Southern California Gas Company</span> Natural gas utility company in California

The Southern California Gas Company is a utility company based in Los Angeles, California, and a subsidiary of Sempra. It is the primary provider of natural gas to Los Angeles and Southern California.

<span class="mw-page-title-main">Constellation Energy</span> Energy company headquartered in Baltimore, Maryland

Constellation Energy Corporation is an American energy company headquartered in Baltimore, Maryland. The company provides electric power, natural gas, and energy management services. It has approximately two million customers across the continental United States.

The North Baja Pipeline is an overall 220-mile (350 km), bidirectional natural gas pipeline that can deliver gas from Arizona, through California, and into Mexico or from Mexico into the United States.

<span class="mw-page-title-main">Kinder Morgan</span> Energy Transportation Company

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals.

Energy Transfer LP is an American company engaged in the pipeline transportation, storage and terminalling for natural gas, crude oil, NGLs, refined products and liquid natural gas. It is organized under Delaware state laws and headquartered in Dallas, Texas. It was founded in 1996 by Ray Davis and Kelcy Warren, who remains Executive Chairman.

Berkshire Hathaway Energy is a holding company and subsidiary of Berkshire Hathaway, which owns 92% of the company. Berkshire has owned a controlling stake since 1999. The company also controls power distribution companies in the United Kingdom and Canada. The remaining 8% is owned by the family of Walter Scott Jr.

<span class="mw-page-title-main">Southern Company Gas</span> American Fortune 500 energy services holding company headquartered in Atlanta, Georgia

Southern Company Gas, formerly AGL Resources, is an American Fortune 500 energy services holding company headquartered in Atlanta, Georgia. The company's operations consist of natural gas distribution, wholesale services, retail operations, and midstream operations. Southern Company Gas is one of the largest natural gas distribution companies in the United States. The company serves approximately 4.5 million utility customers through its regulated distribution subsidiaries across four states. Southern Company Gas made the Fortune 500 list in 2015, Forbes 2000 in 2006, and is a member of the S&P 500 Index. In 2016, Southern Company acquired AGL Resources and renamed it Southern Company Gas.

FortisBC is a Canadian owned, British Columbia based regulated utility providing natural gas, and electricity. FortisBC has approximately 2,600 employees serving more than 1.2 million customers in 135 B.C. communities and 58 First Nations communities across 150 Traditional Territories.

<span class="mw-page-title-main">GAIL</span> Central Public Sector Undertaking

GAIL (India) Limited is a central public sector undertaking. It has the following business segments: natural gas, liquified natural gas, liquid hydrocarbon, liquefied petroleum gas transmission, petrochemicals, city gas distribution, renewable energy including solar & wind, exploration and production, GAILTEL and electricity generation. GAIL was given the Maharatna status on the 1 February 2013 by the Indian Government, a status which 11 other Public Sector Undertakings (PSUs) have.

<span class="mw-page-title-main">Dominion Energy</span> American energy company

Dominion Energy, Inc., commonly referred to as Dominion, is an American energy company headquartered in Richmond, Virginia that supplies electricity in parts of Virginia, North Carolina, and South Carolina and supplies natural gas to parts of Utah, Idaho and Wyoming, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina, and Georgia. Dominion also has generation facilities in Indiana, Illinois, Connecticut, and Rhode Island.

<span class="mw-page-title-main">Snam</span> Italian energy infrastructure company

Snam S.p.A. is an Italian energy infrastructure company.

Global Infrastructure Partners (GIP) is an infrastructure investment fund making equity and selected debt investments. GIP's main headquarters are located in New York City and its equity investments are based on infrastructure assets in the energy, transport and water & waste sectors. GIP employs approximately 150 investment and operational professionals and has offices in New York, London, Stamford, Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. In total as of 2023, its portfolio companies employ approximately 100,000 people, according to the company website.

<span class="mw-page-title-main">Oncor Electric Delivery</span> Oncor Electric utility company in the United States

Oncor Electric Delivery Company is the largest transmission and distribution electric utility in the state of Texas and the 5th largest utility company in the US. Their service territory includes east, west, and north-central Texas, including Dallas, Fort Worth, Irving, Plano, Arlington, Beeville, Midland, Odessa, Killeen, Waco, Wichita Falls, Tyler, and other cities throughout Texas. In 2018, Sempra Energy acquired a majority stake in Oncor for US$9.45 billion.

<span class="mw-page-title-main">Natural gas in China</span> Overview of natural gas use in China

Between 2009 and 2014, gas consumption, production, and imports in China have grown dramatically, with two-digit growth. According to CNPC, the installed capacity of gas-fired power plants in the country is expected to reach around 138 million-154 million kilowatts in 2025, and further grow to 261 million-308 million kilowatts by 2030.

Energy in Estonia has heavily depended on fossil fuels. Finland and Estonia are two of the last countries in the world still burning peat.

<span class="mw-page-title-main">Costa Azul LNG</span> Port in Mexico

Costa Azul LNG is a sea port and natural gas processing center, located 15 miles north of Ensenada, Baja California, Mexico. Opened in 2008, the terminal can process up to one billion cubic feet of natural gas per day. This is the first liquefied natural gas (LNG) terminal on the North America west coast. LNG carrier ships capable of holding up to 220,000m3 of LNG can dock in the deep water port off the coast to unload LNG. The natural gas from the terminal is used to produce electricity and is fed by pipe lines to factories. The longest pipeline runs north, to the United States. Sempra Energy is a partner in the port with PEMEX. The LNG ship Al Safliya was the first ship to port and unload at Costa Azul. The Al Safliya is a 210,000 cubic meter LNG ship, its LNG was from Qatar. The other Mexican LNG Terminal in the Pacific Ocean is at Manzanillo, Colima, the Manzanillo LNG Terminal.

<span class="mw-page-title-main">Jeffrey Martin</span> American businessperson, CEO of Sempra

Jeffrey Walker Martin is the chairman and chief executive officer of Sempra, an energy infrastructure company based in San Diego, California. Sempra develops and owns energy transmission and distribution infrastructure with a focus on leading markets in North America, including California, Texas, Mexico and the liquefied natural gas export market. The company has over 20,000 employees and serves roughly 40 million consumers – serving more U.S. customers than any other U.S. utility holding company. 

References

  1. "Sempra 2023 Annual Report Results" (PDF).
  2. "Sempra Reports 2023 Financial and Business Results". Sempra. Retrieved March 26, 2024.
  3. "2024 World's Most Admired Companies". Fortune. Retrieved March 26, 2024.
  4. 1 2 Newsweek. "America's Most Responsible Companies 2024". Newsweek. Retrieved March 26, 2024.
  5. "Pacific, Enova Merger Wins Final OK". Los Angeles Times. June 27, 1998. Retrieved September 22, 2022.
  6. "Sempra Energy 1999 Annual Report" (PDF).
  7. 1 2 "Sempra Energy to Pay $410 Million Settlement". The New York Times .
  8. "Sempra Foundation".
  9. "Sempra Corporate Sustainability Report 2021".
  10. "Texas Regulators Approve Sempra's $9.45 Billion Oncor Buyout".
  11. "Sempra bumps PG&E, moves into the Dow Jones Utility Average".
  12. "Sempra Energy Completes $3.59 Billion Divestiture of Luz del Sur in Peru".
  13. "Sempra Energy Completes $2.23 Billion Divestiture of Chilean Businesses".
  14. "Sempra Reports 2023 Financial and Business Results". Sempra. Retrieved March 26, 2024.
  15. "Angeles Link".
  16. "Public Utility Commission of Texas approves acquisition agreement involving Oncor, Sempra, InfraREIT, Sharyland Utilities".
  17. "2016 Annual Report". investor.sempra.com. Retrieved January 7, 2019.
  18. "Sempra U.S. Gas & Power Closes Sale of Parent Company of Mobile Gas and Willmut Gas".
  19. 1 2 3 4 Sempra Energy 2009 Form 10-K, Exhibit 13.1: Financial Report, February 26, 2010
  20. "Darling hails Lloyds and RBS move", BBC News Online , November 3, 2009
  21. "2024 World's Most Admired Companies". Fortune. Retrieved March 26, 2024.
  22. "The 250 Best-Managed Companies of 2023". The Wall Street Journal. Retrieved March 26, 2024.
  23. "Sempra Corporate Sustainability Report" (PDF).
  24. "Companies Take Action on Diversity and Inclusion in Bloomberg's 2023 Gender-Equality Index | Press | Bloomberg LP". Bloomberg L.P. Retrieved May 11, 2023.
  25. Peachman, Rachel Rabkin. "Meet America's Best Employers For Diversity 2023". Forbes. Retrieved May 11, 2023.
  26. "2023 Archives". Fair360. Retrieved May 11, 2023.