Voss urges Sempra to spin off Oncor

Activist says Texas utility could exceed Sempra's current valuation.

Voss Capital has urged U.S. utility giant Sempra to spin off its Texas electricity transmission business Oncor Electric Delivery, arguing the move could unlock substantial shareholder value and simplify the company's structure.

The Houston-based activist investor owns a less-than-1% stake in Sempra, according to a recent Reuters report, and argued that an independent Oncor could be worth up to $78 million by the end of 2028.

Sempra owns around 80% of the business, meaning its Oncor stake alone could exceed its own current market value as a combined company, which stands at $60 billion.

Voss argues investors struggle to properly value Sempra because it combines California utility operations, Texas transmission assets under Oncor, and LNG infrastructure under one corporate structure. A standalone Oncor could offer investors a pure-play Texas transmission growth story.

Rising power consumption from AI infrastructure, data centres, and broader electrification trends could make the timing of a potential split particularly attractive.

Oncor is one of the largest regulated electricity transmission and distribution businesses in the U.S., serving more than four million customers across Texas alone.

Voss believes the company’s regulated earnings profile, extensive capital investment opportunities, and safety from the Californian wildfires that hamper utilities valuations, warrant a premium valuation compared with more diversified utility groups.

Any separation would require board approval and could involve regulatory and structural complexities.

Shares in Sempra closed at $89.13 on Friday, down 0.99% from the previous day. The stock has increased 0.46% year-to-date.

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