Efficient Financing & Incremental Investment Opportunities
SEMPRA INFRASTRUCTURE FINANCING STRATEGY
OPERATING
CASH FLOWS
EXTERNAL
FINANCING
JOINT
VENTURES
•
•
Expect to generate over $1.57B in proportional Adjusted EBITDA (80% share) per year to fully fund
capital plan and distributions to partners'
Cash flows underpinned by nearly 20 years of average contract life with over 90% of prospective
GAAP revenues from investment grade counterparties, state-owned enterprises and BP Tangguh
Targeting Sempra Infrastructure Partners to be rated investment-grade by agencies allowing broad
access to capital markets
Large-scale projects incremental to plan expected to target competitive cost of capital through
project finance
Long-term, take-or-pay contracts with U.S.-dollar-denominated cash flows allow for attractive
financing terms
KKR is acquiring a 20% NCI in Sempra Infrastructure Partners and will help fund certain future
equity needs on a pro rata basis²
Private infrastructure capital continues to offer an attractive source of financing
Joint venture equity financing for discrete projects also offers a low cost of capital
1.
2.
Raising capital efficiently to fund growth across the Sempra Infrastructure platform
Adjusted EBITDA represents a non-GAAP financial measure. Projected GAAP Earnings for Sempra Infrastructure for 2022 are -$700M using the approximate midpoint of the Earnings Guidance Range. See Appendix for a reconciliation of non-
GAAP financial measures. Proportional adjusted EBITDA represents 80% of adjusted EBITDA, based on our ownership interest in Sempra Infrastructure Partners.
The ability to complete the transaction is subject to conditions to closing and a number of risks and uncertainties. Please refer to "Risk Factors" in our most recent Annual Report on Form 10-K and "Capital Resources and Liquidity" in our most
recent Quarterly Report on Form 10-Q for a description of the risks and other factors associated with this transaction.
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