Sempra Divests Stake to Support Growth of US Utility Operations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 23 2025
0mins
Should l Buy COP?
Source: Benzinga
Sempra's Major Stake Sale: Sempra announced a $10 billion deal to sell a 45% stake in Sempra Infrastructure Partners to KKR & Co and the Canada Pension Plan Investment Board, aiming to strengthen its balance sheet and focus on U.S. regulated utilities.
Port Arthur LNG Expansion: Sempra Infrastructure Partners has approved a $14 billion expansion of the Port Arthur LNG project, which includes new liquefaction trains and is backed by significant equity financing from major investors, with operations expected to start in 2030 and 2031.
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Analyst Views on COP
Wall Street analysts forecast COP stock price to fall
19 Analyst Rating
15 Buy
3 Hold
1 Sell
Moderate Buy
Current: 129.350
Low
98.00
Averages
115.67
High
133.00
Current: 129.350
Low
98.00
Averages
115.67
High
133.00
About COP
ConocoPhillips is an exploration and production company. Its Alaska segment primarily explores for, produces, transports and markets crude oil, natural gas and NGLs. The Lower 48 segment consists of operations located in the 48 contiguous states in the United States and the Gulf of Mexico. Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia and commercial operations. The Europe, Middle East and North Africa segment consists of operations principally located in the Norwegian sector of the North Sea, the Norwegian Sea, Qatar, Libya, Equatorial Guinea and commercial and terminalling operations in the United Kingdom. Asia Pacific segment has exploration and production operations in China, Malaysia, Australia and commercial operations in China, Singapore and Japan. Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Futures Market Backwardation: The oil market has entered a state of backwardation, where near-term futures contracts are priced higher than those for later delivery, suggesting that the market views the current price surge as temporary and anticipates a resolution to the conflict, reflecting cautious optimism.
- Impact of Infrastructure Damage: While the market expects future oil prices to decline, the destruction of energy infrastructure during the conflict will require time to repair, potentially leading to long-term supply constraints that could affect market pricing dynamics.
- Emergence of Risk Premium: Analysts note that despite bearish expectations for future oil prices, current volatility and risk are still priced in, with Brent crude futures for December delivery priced at approximately $79.70, representing a 17% decline from current prices but still about 10% higher than pre-conflict levels.
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- Military Action Escalation Expected: Macquarie Group's global FX and rates strategist Thierry Wizman predicts that the U.S. may intensify military actions against Iran in the next two weeks to push for significant concessions, impacting investor sentiment.
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- Stock Market Resilience: Despite the drop in oil prices, the Dow Jones Industrial Average rose by 300 points, with the S&P 500 and Nasdaq Composite also closing higher, demonstrating the market's resilience amid oil price fluctuations.
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- Analyst Endorsement: Goldman Sachs identified Conoco as one of its top oil and gas picks, citing a strong free cash flow growth outlook amid supply disruptions from Middle East tensions, which supports shareholder returns through buybacks.
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See More
Oil Price Volatility and Market Expectations Analysis
- Increased Market Volatility: Since the onset of the U.S.-Iran war, oil prices have experienced significant volatility, with Brent crude futures hovering around $99 per barrel, reflecting a nearly 36% increase compared to pre-war levels, indicating a risk premium in the market due to the conflict.
- Futures Market Backwardation: The oil market has entered a state of backwardation, where near-term futures contracts are priced higher than those for later delivery, suggesting that the market views the current price surge as temporary and anticipates a resolution to the conflict, reflecting cautious optimism.
- Impact of Infrastructure Damage: While the market expects future oil prices to decline, the destruction of energy infrastructure during the conflict will require time to repair, potentially leading to long-term supply constraints that could affect market pricing dynamics.
- Emergence of Risk Premium: Analysts note that despite bearish expectations for future oil prices, current volatility and risk are still priced in, with Brent crude futures for December delivery priced at approximately $79.70, representing a 17% decline from current prices but still about 10% higher than pre-conflict levels.
See More
Oil Prices Rise as Iran Rejects US Negotiations
- Oil Price Increase: International benchmark Brent crude futures rose by 1.21% to $103.46 per barrel, while U.S. West Texas Intermediate futures climbed 1.35% to $91.54 per barrel, reflecting market sensitivity to geopolitical tensions.
- Iran Rejects Negotiations: Iranian Foreign Minister Abbas Araghchi stated that despite the U.S. ceasefire proposal, Iran would reject direct talks with the U.S., emphasizing that exchanges through mediators do not equate to negotiations, which may heighten market uncertainty.
- Tense U.S.-Iran Relations: Trump claimed that the U.S. and Iran are negotiating, suggesting Tehran is eager for a deal, yet Iran denied any direct negotiations, highlighting a clear divergence in accounts that could impact future oil price trends.
- Fed Policy Expectations: Analysts at TD Securities noted that despite the oil price shock, the Federal Reserve is unlikely to respond aggressively, suggesting a
See More
U.S. Markets Rebound Amid Rising Recession Risks
- Rising Recession Risks: Moody's Analytics has raised the probability of a U.S. recession in the next 12 months to 48.6%, while Goldman Sachs increased its estimate to 30%, indicating growing concerns about the economic outlook that could affect investor confidence.
- Geopolitical Impact: Iran's foreign minister stated that the country would review the U.S. ceasefire proposal but rejected direct negotiations, suggesting that the uncertainty in the Middle East may continue to exert pressure on global markets, particularly energy prices.
- Global Supply Chain Strain: The U.S. Postal Service is seeking an 8% temporary fuel surcharge on package and express mail deliveries to offset rising transportation costs, reflecting the profound impact of the Middle East conflict on global supply chains.
- Thailand Policy Shift: Thailand has abandoned attempts to cap domestic fuel prices and will instead provide targeted assistance to sectors most affected by rising energy costs, demonstrating different strategies among governments in addressing the energy crisis.
See More
Asia-Pacific Markets Set to Decline Amid Iran Tensions
- Iran Rejects Negotiations: Iranian Foreign Minister Abbas Araghchi stated that while reviewing a U.S. ceasefire proposal, direct negotiations with the U.S. are not planned, which may heighten market concerns over geopolitical risks.
- Military Action Escalation Expected: Macquarie Group's global FX and rates strategist Thierry Wizman predicts that the U.S. may intensify military actions against Iran in the next two weeks to push for significant concessions, impacting investor sentiment.
- Asia-Pacific Market Performance Flat: Australia's S&P/ASX 200 index was flat in early trading, while Japan's Nikkei 225 futures indicated a downward trend, reflecting market concerns over future uncertainties.
- Oil Prices Stable: During Asian trading hours, West Texas Intermediate crude futures rose 0.72% to $91 per barrel, indicating that despite geopolitical tensions, the energy market remains relatively stable.
See More
Wall Street's Denial of Market Strength
- Oil Price Drop Affects Sentiment: International benchmark Brent crude fell 2.17% to $102.22 per barrel amid optimism for a U.S.-Iran ceasefire, indicating a reduction in market panic over rising oil prices.
- Presidential Influence on Markets: Cramer emphasized that President Trump's statements serve as a 'presidential put,' suggesting investors should heed his words as they can significantly sway market sentiment and prevent downturns.
- Stock Market Resilience: Despite the drop in oil prices, the Dow Jones Industrial Average rose by 300 points, with the S&P 500 and Nasdaq Composite also closing higher, demonstrating the market's resilience amid oil price fluctuations.
- Investor Caution Against Denial: Cramer warned investors to stop denying the current market realities, stressing that the performance of the market is closely tied to oil price movements, and ignoring these signals could expose investors to greater risks.
See More
ConocoPhillips Stock Pulls Back After Six-Day Gain
- Stock Pullback: ConocoPhillips (COP) ended a six-day streak of gains with a 0.32% decline on Wednesday, closing at $128.93, indicating market sensitivity to oil price volatility.
- Market Performance: Between March 17 and March 24, the stock surged over 5%, contrasting with a more than 2% decline in the broader market, highlighting its relative strength amid market turbulence.
- Analyst Endorsement: Goldman Sachs identified Conoco as one of its top oil and gas picks, citing a strong free cash flow growth outlook amid supply disruptions from Middle East tensions, which supports shareholder returns through buybacks.
- Rating Insights: Seeking Alpha's quant rating gives COP a Hold rating with a score of 3.38, reflecting a D+ for valuation but an A+ for profitability, indicating strong performance in earnings despite valuation concerns.
See More
