Sempra Energy announced Tuesday it has completed its business exit from South America, following the recently announced sale of its Chilean businesses, which generated about $2.23 billion in total cash proceeds.
The completion of the Chilean transactions concludes Sempra Energy’s sales of its South American businesses in both Chile and Peru, resulting in $5.82 billion in combined total cash proceeds, subject to customary post- closing adjustments.
The San Diego-based company said its investments are now focused in top-tier markets in North America, including California, Texas, Mexico, and North America’s liquefied natural gas export market.
“By successfully executing on a broad capital recycling program, the past two years have proven to be transformational for our company and have allowed us to efficiently concentrate our capital program on the most attractive markets in North America,” said Trevor I. Mihalik, executive vice president and chief financial officer of Sempra Energy.
Sempra Energy “is committed to invest a record $32 billion in capital over its 2020-2024 five-year plan, with a focus on T&D (transmission and distribution) investments in its Texas and California utilities,” according to a company statement.
Including the sale of its South American businesses and U.S. renewables business and non-utility natural gas storage assets, which was completed in 2019, the company has generated $8.3 billion in total cash proceeds, which “are being used to support our growth initiatives, strengthen our balance sheet and return value to our owners,” Mihalik said.
Sempra Energy also announced that it is raising its full-year 2020 earnings-per-share guidance range to $12.38 to $13.32, from $11.88 to $13.02. The company’s full-year 2020 adjusted EPS guidance range also has been increased to $7.20 to $7.80, from $6.70 to $7.50.
— City News Service