Jim Cramer’s List of 7 Energy Stocks for the Trump Trade

5. Sempra (NYSE:SRE)

Number of Hedge Fund Holders: 33

Cramer mentioned that he likes Sempra (NYSE:SRE) and highlighted its diversified portfolio.

“I also like Sempra, which is a more diversified power company but has plenty of nat-gas exposure through regulated gas utilities in California, big nat-gas pipeline network that helps bring gas to Mexico. Can you believe that they need our natural gas after being so big in it? But they haven’t done any of the infrastructure. It’s also got a growing portfolio of LNG export facilities in both the US and Mexico. This is another name that’s broken out since the election, straight up actually, also up 15%. Now I would be a little more cautious. I’d buy some and then wait for it to come down.”

Sempra (NYSE:SRE) is an energy infrastructure company that provides electric and natural gas services, manages electricity transmission and distribution, and develops energy infrastructure to support the global energy transition. Recently, the company reported its third-quarter earnings, with adjusted earnings reaching $566 million, or $0.89 per diluted share. This compares to $685 million, or $1.08 per diluted share, reported in the same period of 2023.

The company also made significant progress in expanding its energy infrastructure. It announced the expansion of the GRO pipeline, which is expected to begin commercial operations before the end of this year. This pipeline is designed to support liquefied natural gas (LNG) exports at the Energia Costa Azul (ECA) facility. In addition, Sempra Infrastructure’s Port Arthur LNG Phase 2 development is advancing ahead of the Cameron LNG expansion in Louisiana.

According to Sempra’s (NYSE:SRE) CFO, Karen Sedgwick, the Port Arthur project in Texas is moving faster due to a continuous construction agreement with Bechtel that spans both phases of the project. While talks are ongoing for LNG purchases and equity agreements related to the Port Arthur project, Sedgwick noted that the timing for finalizing the financial go-ahead for the Cameron expansion remains uncertain.

However, the company has growing confidence that the non-Free Trade Agreement export permit for Port Arthur Phase 2 will be received early next year. CEO Jeffrey Martin further emphasized that they expect to secure the necessary permits for Port Arthur Phase 2 within the first half of next year.