Wed, Jul. 20, 8:45 AM
- Sempra Energy (NYSE:SRE) says it is cutting its share buyback target by $500M, after saying earlier that it could repurchase as much as $2B of its own shares.
- SRE instead plans to use the cash to help build a $2.1B natural gas pipeline in Mexico with joint venture partner TransCanada, part of SRE's plans to spend more than $3B in Latin America through 2020, accounting for nearly 20% of its capital program; SRE also says its Mexican subsidiary Ienova may sell stock to finance expansions in Mexico.
- SRE has contracts for $19.5B of capital projects over the next five years, and “that’s only what we’re committed to,” CFO Joe Householder says. “We’re going to spend more than that."
Mon, Jul. 18, 9:51 AM
- Sempra Energy (SRE +0.1%) says the Cameron liquefied natural gas project in Louisiana has won approval from the U.S. Department of Energy to increase its export capacity to non-free trade agreement countries.
- The authorization to export an additional 1.41B cf/day of natural gas will bring Cameron LNG's export capacity to 3.53B cf/day, or 24.92M tons/year.
- SRE says construction on the first phase of the $10B Cameron LNG project is underway; the facility is expected to commence operations during 2018, with the first full year of operations in 2019.
- The Cameron LNG venture is owned by SRE, Engie, Mitsui and a Japanese joint venture, and comprises the Cameron LNG liquefied natural gas receipt terminal in Hackberry, La., and the construction and operation of the liquefaction export facilities.
Thu, Jul. 14, 5:25 PM
- The California Public Utilities Commission rejects SoCalGas' request to build its North-South pipeline project, saying there are "more cost-effective alternatives for supporting the utility's southern natural gas system."
- The regulator also denies $621M in rate increases requested by SoCalGas and San Diego Gas & Electric, both subsidiaries of Sempra Energy (NYSE:SRE).
- The project would have consisted of a new 65-mile natural gas pipeline from a pumping station in Adelanto through San Bernardino county to another station in Moreno Valley.
Wed, Jul. 13, 9:59 AM
- Sempra Energy's (SRE +0.7%) IEnova Mexican unit said late yesterday that it had restructured a deal to buy Pemex's 50% stake in pipeline company Gasoductos de Chihuahua for $1.11B.
- IEnova says the changes in the deal, initially valued at $1.33B ($1.5B including the assumption of debt), will allow Pemex to comply with an antitrust ruling and clear the deal to go ahead, which it expects in Q3.
- IEnova operates natural gas pipelines, natural gas distribution networks, a liquefied natural gas terminal and a power plant in Mexico.
Wed, Jul. 13, 8:46 AM
- Sempra Energy's (NYSE:SRE) SoCalGas files legal papers asking to nullify a Los Angeles County directive requiring it to clean the interior of all homes in the Porter Ranch area because of the massive gas leak at Aliso Canyon storage field.
- A judge in May ordered SoCalGas to pay for cleaning the Porter Ranch homes of thousand of residents who voluntarily evacuated during the leak, and the company paid for temporary lodging and cleaning of these residents’ homes; then the L.A. County Public Health Department issued a directive to SoCalGas that it clean the interior of all homes in the community.
- In a writ of mandate to annul the directive, SoCalGas says the cleaning of these homes is not needed, since "the community is safe" five months after the leaking well was sealed.
Mon, Jun. 27, 7:27 PM
- One of the biggest Brexit beneficiaries is the utilities sector, as the Dow Jones Utility Average and the SPDR Utilities Select Sector ETF both surged to new record highs as Treasury yields tumble to multiyear lows.
- The implied annual dividend yield for the Dow utilities is 3.08% and 3.18% for the utilities ETF, more than double the 10-year Treasury yield.
- J.P. Morgan equity strategists said today that they believe bond yields "are not going anywhere but lower,” and thus remain overweight on the utilities sector.
- At least six Dow utilities components posted record closes: NEE +3.3%, EIX +2.5%, AWK +2.4%, ED +1.9%, AEP +1.8%, PCG +0.8%.
- Among other major utilities in today's trade: SO +1.9%, DUK +1.9%, SCG +1.6%, ETR +1.1%, D +1%, AEE +1%, XEL +0.9%, SRE +0.9%, PEG +0.7%, FE +0.7%, EXC +0.6%.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU
Wed, Jun. 22, 4:59 PM
- Sempra Energy's (NYSE:SRE) SoCalGas has passed its first test of the summer since the closure of its Aliso Canyon storage facility following October's massive gas leak, keeping fuel supplies flowing amid blazing temperatures early this week.
- SoCalGas says it delivered ~3.3B cf of gas and received 3.2B cf from pipelines on Monday, but with cooler weather on Tuesday, deliveries fell to ~2.9B cf while pipeline receipts reached 3.1B cf, allowing some injections back into storage.
- The utility's three remaining storage facilities have a combined withdrawal capacity of 1.7B cf/day but cannot make up for all of Aliso Canyon's capability to support demand in the Los Angeles area because they are smaller or located too far away.
- SoCalGas has said it hopes to return Aliso Canyon to partial service by the end of the summer, but cannot inject gas into the field until it inspects all 114 wells.
Mon, Jun. 20, 2:15 PM
- California's electric grid operator is requesting emergency reductions in electricity today and may do so again tomorrow amid a heat wave in southern California, as officials fear power plants could run out of fuel and trigger rolling blackouts.
- The Los Angeles region is short of natural gas due to the massive gas leak last winter at Sempra Energy's (SRE +0.2%) Aliso Canyon underground gas storage facility; although the leak was fixed in February, the facility remains out of commission while more than 100 wells undergo a battery of tests to see if they contain hidden defects.
- An analysis by California’s energy agencies has said the L.A. area could suffer localized blackouts on as many as 14 days this summer.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, KOLD, UNL, DCNG
Tue, Jun. 14, 1:06 PM
Mon, Jun. 13, 2:58 PM
- TransCanada (TRP -0.1%) says it won a contract with joint venture partner Sempra Energy (SRE +0.2%) to build and operate the $2.1B Sur de Texas-Tuxpan natural gas pipeline in Mexico.
- TRP says the project will be supported by a 25-year natural gas transportation service contract for 2.6B cf/day with the Comision Federal de Electricidad, Mexico's state-owned power company.
- TRP says it expects to invest ~$1.3B in the partnership to build the 497-mile pipeline, with an anticipated in-service date of late 2018; TRP will own 60% of the project, with SRE unit IEnova owning the rest.
Mon, Jun. 6, 3:22 PM
- Entergy (ETR +0.2%) is added to Goldman Sachs' Conviction List due its attractive valuation and dividend yield, which are above peer figures, as well as on low expectations heading into the company's June 9 analyst day.
- Goldman believes ETR's current share price implies either a discount on the company’s regulated segments, or limited or no value for ETR’s non-regulated, nuclear plants in New York and Michigan - an unsustainable valuation, the firm contends, given that ETR’s merchant nuclear plants generate free cash flow of $1-$2/share.
- Goldman rates ETR a Buy with an $88 price target.
- Meanwhile, the firm removes Sempra Energy (SRE -0.3%) from its Conviction List, downgrading shares to Neutral from Buy with a $108 price target as it cites earnings risks, limited near-term catalysts and valuation.
- SRE's analyst day next month may offer few new catalysts as the capital allocation plans already are disclosed, Goldman says; the key topic at the event will be potential new liquefied natural gas project announcements, which the firm "considers unlikely at this point given oversupply of LNG capacity globally."
Wed, May 4, 2:25 PM
- Sempra Energy (SRE -0.2%) is little changed after reporting lower than expected Q1 earnings and more than doubling its estimate to $665M for the cost of the Aliso Canyon gas well blowout that spewed methane for nearly four months.
- SRE's SoCalGas had estimated costs of $330M in February, but that was before courts forced it to continue paying to temporarily relocate thousands of residents.
- SRE says raising its leak cost estimates did not have a material impact on Q1 earnings and that it has recorded $660M for insurance recoveries, but Bloomberg says the delay did affect Q1 results since neither of SRE's California utilities can implement rate increases until a decision has been made.
- SRE also cuts its FY 2016 EPS guidance to $4.60-$5 from $4.80-$5.20 to reflect the pending sale of its stake in the Rockies Express Pipeline.
- Now read Sempra Energy to sell Mobile Gas-Wilmut Gas parent to Laclede for $323M
Wed, May 4, 8:09 AM
Tue, May 3, 5:30 PM
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Tue, Apr. 26, 9:58 AM
- Sempra Energy (SRE +0.4%) agrees to sell EnergySouth, the parent company of Mobile Gas and Wilmut Gas, to Laclede Group (LG -0.6%) for ~$323M; LG also will assume existing debt of ~$67M.
- SRE says it can more productively redeploy the proceeds from the sale into long-term growth opportunities that meet its strategy.
- SRE says it will retain all non-utility businesses in EnergySouth.
- Now read J.P. Morgan on gas utilities: NiSource downgraded, Atmos undervalued
Fri, Apr. 8, 3:28 PM
- TransCanada (TRP +2.9%) wins an auction to develop and operate a natural gas pipeline in central Mexico, beating a subsidiary of Sempra Energy (SRE +0.6%) that was disqualified from bidding.
- TRP unit Transportadora de Gas Natural de la Huasteca wins the auction with a $336M bid, despite TRP's plans to sell as much as 49% of its Mexican assets.
- Meanwhile, a bid from SRE's Ienova unit was thrown out for the third time since mid-March for failing to meet requirements to operate the pipeline.
- The 261-mile pipeline project is expected to begin operation in early 2018.
- Now read Keystone pipeline spill in South Dakota bigger than first thought
Sempra Energy is an energy-services holding company, whose operating units invests in, develop and operate energy infrastructure, and provide gas and electricity services to their customers in North and South America. It operates through the following segments: San Diego Gas & Electric Company,... More
Industry: Gas Utilities
Country: United States
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