Firstly, the firm believes the company's five-year $18.5 billion capital program could accelerate its earnings growth. Secondly, the Cameron facility, which is expected to be fully operational by 2019, will support earnings growth after LNG exports commence from it in 2017.
The company's commitment to generate meaningful returns in the long run from both its regulated utility and non-regulated energy-related businesses was offered as the third reason. Argus also sees continued benefit for its regulated utility businesses, San Diego Gas & Electric and SoCal Gas from the regulatory environment, a growing rate base and stable earnings.
Furthermore, the firm expects further development of the company's midstream infrastructure in Mexico. Lastly, Argus believes the company's South American utility businesses have favorable growth profile.
Argus noted that the company reported below-consensus adjusted earnings per share for its second quarter and a year-over-year decline in the metric. The company also lowered its 2016 adjusted earnings per share guidance.
At time of writing, Sempra stock was up about 1.5 percent.
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