Jim Cramer Notes “Sempra Is Mainly a Utility and They Want to Be More of a Pure Play.”

Sempra (NYSE:SRE) is one of the stocks highlighted in Jim Cramer’s latest Mad Money recap as he provided top stock insights. Cramer noted that he discussed the U.S. dominance in LNG in light of the Iran conflict with the company’s CEO, as he said:

Two days ago I spoke with Jeff Martin, he’s the CEO of Sempra, and right at the end of that interview, he gave me an idea that I frankly haven’t been able to shake since. This was right after Israel bombed Iran’s largest gas field, and Iran retaliated by striking the world’s largest liquefied natural gas export terminal in Qatar. I asked him if all this chaos in the Middle East could pave the way for the U.S. to become a much more important supplier of liquefied natural gas to the rest of the world. And his answer was a resounding yes…

Now, if you’re a country that needs liqufied natural gas, America’s become the most reliable source of supply practically overnight. Since Jeff Martin from Sempra sparked this idea, let’s start with his company, which helped build one of the country’s earliest LNG export facilities in Louisiana. Unfortunately, Sempra is mainly a utility and they want to be more of a pure play. So they’ve agreed to sell a majority stake in their infrastructure business to a private equity firm, KKR. Basically, this has become a regulated utility story, and it’s got some LNG upside though.

Photo by Adam Nowakowski on Unsplash

Sempra (NYSE:SRE) develops and operates energy infrastructure, providing natural gas and electric services through regulated utilities and transmission networks. We recently covered Jim Cramer’s previous comments on the company. You can read them here.

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