The energy industry in the US and around the world is undergoing some significant shifts. Renewable energy and carbon neutrality are high on the agenda of most energy and utility companies. There is a collective push from various stakeholders to move away from fossil-fuel sources to cleaner sources of energy. This trend is evident from the Paris Climate Agreement and other climate-based events. The giant companies within the energy industry are all coming out with climate initiatives of their own and are moving away from their traditional business models. The utility industry is also witnessing a similar shift. If you are an investor looking for utility stocks to invest in now, then you will want to focus on those names that recognize the shift towards a less carbon-intensive way of doing business.
Sempra Energy Pushes Gas Business
Sempra Energy recently hired former US President Donald Trump’s energy chief Dan Brouillette to push for more exports of LNG. Mr. Brouillette has extensive experience in promoting American LNG to European countries. Sempra has been carefully repositioning its infrastructure business to take advantage of the global shift towards net-zero energy solutions, modern energy networks, and clean power. Sempra Energy has been looking to draw upon the experience of Mr. Brouillette as the head of America’s Energy Department and his geopolitical knowledge in encouraging European countries to move away from Russian supplies and towards “more stable” American sources of liquefied natural gas. Mr. Brouillette will work as the president of Sempra’s infrastructure business unit. Sempra Energy’s largest business segment in terms of revenue generation is its utility segment SDG&E. Its SoCal Gas segment is the third-largest revenue generator, and it supplies natural gas to its customers in the Southern California region. If you are looking to buy best utilities stocks, then Sempra Energy could be one option.
Sempra Energy’s stock has seen sideways movement for about one year now. It has ranged between the $120-$130 price band. Any breakout from this range on the upside could see some upward movement.