Sempra Energy (SRE) Surges 1.68% on Updated Earnings Guidance, LNG Expansion Momentum

Sempra Energy (SRE) surged 1.68% on October 7, 2025, marking its fourth consecutive day of gains with a cumulative rise of 5.32% over four days. The stock hit an intraday high not seen since October 2025, reflecting renewed investor confidence in its strategic direction and long-term potential.

The company’s updated 2025 earnings guidance, projecting GAAP EPS of $3.29 to $3.69, underscores its focus on infrastructure investments and energy transition initiatives. Management reaffirmed long-term EPS growth targets of 7-9% through 2029, driven by regulated utility operations in California and Texas, as well as decarbonization projects. Analysts highlight that the guidance aligns with global energy trends, enhancing the stock’s appeal to stability-seeking investors.

Key catalysts include the expansion of LNG infrastructure. The FERC-approved Port Arthur LNG Phase 2 project, set to double export capacity, positions Sempra to capitalize on global demand. Complementary progress at the Cameron LNG terminal in Louisiana further solidifies the company’s role in the U.S. LNG boom. These projects are expected to generate steady revenue streams amid the energy transition.

A $10 billion sale of a 45% stake in the Port Arthur LNG Phase 1 unit to KKR and CPPIB in September 2025 provided capital for utility growth initiatives. The transaction reduced debt and enabled reinvestment in grid modernization and renewables, aligning with Sempra’s strategy to balance infrastructure development with sustainability goals.

Renewable energy and hydrogen projects are central to Sempra’s decarbonization efforts. Initiatives like California’s largest RNG pilot and solar/wind expansions diversify revenue while supporting regulatory climate targets. These moves position the company to benefit from policy-driven incentives and long-term earnings growth.

Analyst upgrades, including Morgan Stanley’s price target raise to $78.00, underscore confidence in Sempra’s infrastructure pipeline and earnings visibility. Institutional ownership at 89% and ESG alignment through the FTSE4Good Index further reinforce the stock’s stability. However, regulatory risks in key markets like California and Texas remain watchpoints, as policy shifts could impact capital recovery and profit margins.