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Cramer Backs Sempra as LNG Expansion and $10 Billion Deal Boost Outlook

By Venkatesh | October 08, 2025, 10:24 AM

Sempra (NYSE:SRE) is one of the Jim Cramer’s Recession-Proof Stock Picks.

One of Jim Cramer’s favorites from earlier this year, the company has announced a final investment decision for Port Arthur LNG Phase 2 and the sale of 45% equity interest in Sempra Infrastructure.

Cramer Backs Sempra as LNG Expansion and $10 Billion Deal Boost Outlook

On September 22, 2025, Sempra (NYSE:SRE) announced reaching the final investment decision for Port Arthur LNG Phase 2. It involved adding two trains and a capacity of 13 million tons per annum (Mtpa). With Sempra Infrastructure holding a 50.1% majority share, the estimated capital expenditure stands at $14 billion ($12 billion plus $2 billion shared).

At the same time, the company also reported agreeing to sell 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR (KKR), with the Canada Pension Plan Investment Board. The transaction, valued at approximately $10 billion, is anticipated to improve the company’s equity.

Though Cramer thinks the yield is comparatively low, he backed the stock with a Buy earlier this year.

“I think Sempra is such a buy, I don’t even care that it only yields 3%. I think that, you know, like this is Jeff Martin, he’s bankable, bankable, bankable. I want you to own the stock.”

The company stands tall in our list by commending institutional trust from 47 hedge funds, noted by Insider Monkey as stakeholders in Sempra (NYSE:SRE).

Sempra (NYSE:SRE) is a North American energy infrastructure holding company, formed in 1998. This California-based company is focused on regulated utilities and large-scale infrastructure projects such as electric and natural gas delivery.

While we acknowledge the potential of SRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 12 Set-It-and-Forget-It Stocks to Buy Now and 12 Stocks with Consistent Growth to Invest In.

Disclosure. None.

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