San Diego-based Fortune 500 energy giant Sempra announced a significant executive reorganization on July 10, with Chief Financial Officer Karen Sedgwick transitioning to CEO and president of subsidiary Southern California Gas, and Justin Bird, currently CEO of Sempra Infrastructure, stepping into the CFO role.
The leadership changes come as Sempra nears completion of a $10 billion agreement with KKR, one of the world’s largest investment firms, under which KKR affiliates will acquire a 45% equity interest in Sempra Infrastructure Partners. The deal, announced last fall, is expected to close within the next two months and underscores Sempra’s strategic pivot toward concentrating investment in its utility assets in Texas and California.
Sempra Chairman and CEO Jeff Martin said in a statement that this is an exciting time for the company as it continues to advance the growth of its utility businesses, and that these appointments further the company’s mission alignment and strengthen its ability to deliver long-term value for stakeholders.
Sedgwick, who has worked at various Sempra companies for more than 30 years, already serves on the SoCalGas board of directors. She replaces Maryam Brown, who departed SoCalGas in April to become president and COO of Indiana Michigan Power. Bird, with more than 20 years at Sempra, will also lead investor relations, treasury, financial planning, audit, insurance, and tax functions while continuing on the boards of Sempra Infrastructure and Oncor.
The KKR transaction will significantly reshape Sempra’s portfolio. The company expects approximately 95% of its earnings to come from U.S. regulated utilities by 2027, with a goal of having 60% of its rate base in Texas by the end of the decade. The deal reduces Sempra’s ownership stake in its LNG investments across North America.
At the Energia Costa Azul facility in Ensenada, Mexico, Sempra’s ownership will drop from 58.4% to 20.9%. At Cameron LNG in Louisiana, its share falls from 35.1% to 12.6%. At Port Arthur LNG in Texas, Sempra’s stake in the first phase decreases from 19.6% to 7%, and the second phase from 35.1% to 12.5%.
Bob Patel was named as incoming CEO of Sempra Infrastructure last month, completing the leadership transition. Bird and Sedgwick will assume their new roles upon closing of the KKR transaction.
For San Diego, where Sempra is headquartered and where its San Diego Gas & Electric subsidiary serves roughly 3.6 million customers, the executive shuffle signals a hometown company refocusing on its core regulated utility business. SDG&E recently announced slight residential rate decreases for the remainder of the year, a development Sempra attributes in part to its broader strategic reorganization.
