Sempra Energy (SRE) on Tuesday said its board has authorized it to pursue the formation and initial public offering of a publicly traded partnership to be called Sempra Partners LP, which is expected to be listed on the New York Stock Exchange under the ticker symbol "SREP."
Sempra Energy said it has received its Private Letter Ruling from the Internal Revenue Service related to the formation of its master limited partnership (MLP) and would expect to form Sempra Partners as an MLP.
Sempra Partners will own assets and interests producing MLP-qualifying income, including dividends from a corporate subsidiary.
Initially, the MLP is expected to own one or more of the following assets: an interest in a U.S. entity with contracts related to deliveries of liquefied natural gas at the Energia Costa Azul regasification facility; interests in certain of Sempra Energy's contracted renewable energy projects; or other assets with attributes attractive for inclusion in Sempra Partners.
Sempra Energy expects Sempra Partners to file a registration statement with the Securities and Exchange Commission in the second half of 2015.
Upon completion of the initial public offering, Sempra Energy expects to own the general partner of Sempra Partners, all of its incentive distribution rights, a portion of its common units and all of its subordinated units.
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