Sempra Shareholder Group Releases Statement Regarding Sempra’s Analyst Day

Group Expresses Disappointment in Lack of Progress to Date

Will Review Analyst Day Presentation in Comparison with Sustainable Sempra Plan

Analyst Support for Sustainable Sempra Plan Available at

NEW YORK--()--Elliott Associates, L.P. and Elliott International, L.P. (together, “Elliott”) and Bluescape Resources Company (“Bluescape”) (collectively the “Sempra Shareholder Group”), which together own a $1.5 billion or 4.9% economic interest in Sempra Energy (the “Company” or “Sempra”), today released the following statement in advance of Sempra’s analyst day scheduled for today, June 28, 2018:

We are disappointed that, despite our best efforts to make measurable progress toward an agreement with Sempra, no real progress toward this goal has yet been made.

We intend to review the Company’s analyst day presentation today with an open mind, but the yardstick we will use to measure the Company’s stand-alone plan will be our illustrative Sustainable Sempra Plan. As outlined in our June 11th letter and presentation, we believe the Sustainable Sempra Plan represents an $11-$16 billion readily achievable value creation opportunity, resulting in $139-158 per share for Sempra.

In advance of today’s analyst day, we also thought it appropriate to share what research analysts have said about the Sustainable Sempra Plan. Reactions from both the equity and credit research analyst communities have been uniformly and strongly positive, with numerous analysts increasing their valuations and encouraging the Company to engage with the Sempra Shareholder Group and commence a thorough portfolio review with enhanced Board oversight:

Our $130 price target now reflects a 50/50 blend of SRE's independent base case outlook ($111) and an upside Elliott plan scenario ($149). While our upside scenario utilizes differing assumptions and multiples, we arrive in the same zip code as Elliott’s proposal.” – UBS, June 11, 2018

Is SRE the Next NRG? Elliott Seems to Think So… Elliott / Bluescape executed a similar strategy at NRG. Beginning in 2017, the activists worked with management to replace board members and undertake a strategic review. The review resulted in asset sales and cash optimization. NRG shares are up 99% over the past 12 months.” – UBS, June 11, 2018

Our experience following the evolution of the NRG and FE processes has been that engagement with Elliott / Bluescape, and the creation of a formal review process with no “sacred cows” has generally driven more robust, aggressive and potentially value enhancing strategic decisions than would have occurred in the alternative.” – Evercore ISI, June 12, 2018

Activists see large upside (38-57%) if successfully executed…We think engaging activists [Elliott and Bluescape] could present an additional upside opportunity for [SRE] shares.” – Bank of America Merrill Lynch, June 12, 2018

Ultimately, we believe these measures, if enacted, would be credit positive as it would help mitigate holdco leverage concerns as well as simplify the portfolio and exit higher risk businesses.” – J.P. Morgan, June 11, 2018

A successful execution of this strategy would go a long way in removing the conglomerate discount assigned to shares. At the end of the day, we would expect that Elliott Management and Bluescape could have a similar impact that it has had with NRG.” – Guggenheim Securities, June 11, 2018

We believe these positive reactions are indicative of broader investment-community sentiment regarding the Sustainable Sempra Plan, and they echo the feedback we have received from other Sempra shareholders. A larger sample of analyst opinion can now be viewed at

We continue to believe our simple proposal for new highly qualified directors and a full, independent review of Sempra’s portfolio and operations is the right path forward at this time. We encourage Sempra to engage with us expeditiously and in good faith to reach an agreement on new directors and an appropriate committee structure to facilitate an independent strategic review.

Please visit for important information about Elliott and Bluescape and the views and opinions expressed herein.


Elliott Management Corporation manages two multi-strategy investment funds which combined have approximately $35 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.


Bluescape, founded in 2007, is a private investment firm focused on value-oriented investments in the upstream oil and gas and power industries. Bluescape employs a unique approach and long-term perspective, helping position companies for growth and value creation by providing capital and strategic oversight with its multi-disciplined team of executive-level managers, operators, strategic consultants, and restructuring advisors.


Elliott Management Corporation
Stephen Spruiell, 212-478-2017


Elliott Management Corporation
Stephen Spruiell, 212-478-2017