For Investors -- September 22, 2014

From Seeking Alpha:

• Sempra Energy's target price is raised to $115 from $106 at RBC Capital, which sees additional exports of liquified natural gas in the offing.
• Mexico is opening its energy sector to competition, which offers the potential for several projects in gas and power, RBC says; depending on project size and economics, the firm thinks each awarded project can add at least $1-$2 of SRE share value.
• In addition to projects in Mexico and Latin America, RBC sees several ways SRE can grow earnings at 8%-10% through the end of the decade, including expansion at its Cameron unit, rate base growth in California, and the potential formation of an MLP.

Folks may want to take a look at WMB over the past few months to get an idea what an MLP might mean for SRE.

This is not an investment site. Do not make any investment decisions based on anything you read here or think you may have read here. 

From Barron's:

Long term, RBC is positive on Sempra, which operates a California natural gas utility, San Diego Gas & Electric, and also other energy businesses.

RBC sees additional exports of liquified natural gas in the offing. Mexico is opening its energy sector to competition with sweeping reform that “offers a host of potential projects in gas and power."

Continuing, "Dependent on project size and economics, we estimate that each project can deliver at least $1-$2 of Sempra share value if won,” RBC writes.

RBC thinks there are “a number of ways that the company can grow earnings at 8%-10% through the end of the decade” that include expansion at its Cameron unit, incremental projects in Mexico and Latin America, rate base growth in California, and the potential formation of a master limited partnership or another high-yield enterprise.

They write: “Sempra Mexico (IEnova), since its IPO in March of 2013, has returned well over 100%. We have adjusted our IEnova estimates to reflect more in-line market valuation multiples and new assumptions for the six projects in the pipeline."

Much more detail at the link. Note: net metering is very likely in California (my opinion, which may not be the majority opinion). 

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The market is down less than half a percent today. My hunch is that all of that money is going to Alibaba. Good luck to all.