What is the financial impact of this SI Partners sale on Sempra?

Sempra expects to record a substantial pre-tax gain on the sale, estimated between $2.80 billion and $3.30 billion. Additionally, the company anticipates incurring transaction-related costs of approximately $450 million to $550 million. The immediate cash proceeds of $4.56 billion will also bolster the company's liquidity.

How does the deconsolidation of SI Partners affect Sempra's financial reporting?

Upon deconsolidating SI Partners, Sempra will no longer include its financial results in its consolidated statements. Sempra will now account for its remaining 25% interest using the equity method, which means Sempra will report its proportionate share of SI Partners' net income or loss, rather than its gross revenues and expenses.

What are the terms of the deferred payment from the KKR Partners?

The remaining purchase price is structured into two parts: $4.14 billion plus interest (totaling $4.51 billion including interest at 7.5% compounded quarterly) due by December 31, 2027, supported by equity commitments. The second part is $1.20 billion plus interest (totaling $2.31 billion if held to maturity at 8.5% then 10.0% compounded quarterly) due by February 11, 2034, with a make-whole provision for interest through December 31, 2027.

What is the significance of the CFO transition?

The appointment of Justin C. Bird as the new CFO and Karen L. Sedgwick's move to CEO of Southern California Gas Company signifies a leadership change within key financial and operational roles at Sempra. This transition occurs concurrently with the major SI Partners divestiture, suggesting a strategic realignment and focus on core operations or new leadership for different business segments.

SRE/SREA 8-K: Leadership Changes

01—Abstract

Summary

Summary of the 8-K filed November 12, 2026. Cited figures are marked; the original filing is the authoritative source.

Sempra Energy (SRE) has announced the completion of a significant transaction involving its Sempra Infrastructure Partners, LP ("SI Partners") subsidiary.

On November 12, 2026, Sempra sold a 45% equity interest in SI Partners to entities affiliated with Kohlberg Kravis Roberts & Co. L.P. and Canada Pension Plan Investment Board (collectively, the "KKR Partners"). This sale generated immediate cash proceeds of $4.56 billion^a, with the remaining purchase price structured as promissory notes and other instruments totaling approximately $5.34 billion in principal, bearing interest at rates ranging from 7.5% to 10.0% and maturing between December 31, 2027, and February 11, 2034. This transaction results in Sempra deconsolidating SI Partners, effective immediately, and will account for its retained 25% interest under the equity method.

Sempra anticipates recognizing a substantial pre-tax gain on the sale, estimated between $2.80 billion^b and $3.30 billion. The company also expects to incur approximately $450 million to $550 million in transaction-related costs. While preliminary, these figures indicate a significant financial event for Sempra.

Additionally, the company announced a CFO transition, with Justin C. Bird appointed as Executive Vice President and Chief Financial Officer, effective November 13, 2026, succeeding Karen L. Sedgwick who will become CEO of Southern California Gas Company.

02—Key points

Key Highlights

Sempra completed the sale of a 45% stake in Sempra Infrastructure Partners (SI Partners) to KKR Partners for $4.56 billion in cash at closing.
The remaining purchase price is structured as debt instruments totaling approximately $5.34 billion in principal, with varying interest rates and maturities through 2034.
Sempra expects to record a significant pre-tax gain on the sale, estimated between $2.80 billion and $3.30 billion.
The company will deconsolidate SI Partners due to the loss of controlling financial interest and will equity account for its retained 25% stake.
Justin C. Bird has been appointed as the new Executive Vice President and Chief Financial Officer, effective November 13, 2026.
Karen L. Sedgwick will transition from CFO to CEO of Southern California Gas Company.
Preliminary estimates for transaction-related costs range from $450 million to $550 million.

03—Questions

Frequently Asked Questions

What is the financial impact of this SI Partners sale on Sempra?
Sempra expects to record a substantial pre-tax gain on the sale, estimated between $2.80 billion and $3.30 billion. Additionally, the company anticipates incurring transaction-related costs of approximately $450 million to $550 million. The immediate cash proceeds of $4.56 billion will also bolster the company's liquidity.
How does the deconsolidation of SI Partners affect Sempra's financial reporting?
Upon deconsolidating SI Partners, Sempra will no longer include its financial results in its consolidated statements. Sempra will now account for its remaining 25% interest using the equity method, which means Sempra will report its proportionate share of SI Partners' net income or loss, rather than its gross revenues and expenses.
What are the terms of the deferred payment from the KKR Partners?
The remaining purchase price is structured into two parts: $4.14 billion plus interest (totaling $4.51 billion including interest at 7.5% compounded quarterly) due by December 31, 2027, supported by equity commitments. The second part is $1.20 billion plus interest (totaling $2.31 billion if held to maturity at 8.5% then 10.0% compounded quarterly) due by February 11, 2034, with a make-whole provision for interest through December 31, 2027.
What is the significance of the CFO transition?
The appointment of Justin C. Bird as the new CFO and Karen L. Sedgwick's move to CEO of Southern California Gas Company signifies a leadership change within key financial and operational roles at Sempra. This transition occurs concurrently with the major SI Partners divestiture, suggesting a strategic realignment and focus on core operations or new leadership for different business segments.

04—Continue

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