An executive shuffle at San Diego’s Sempra

Sempra, the San Diego-based Fortune 500 energy giant, announced changes in the executive suite that the company says reflect greater focus on its holdings in the utilities sector.

Chief Financial Officer and Executive Vice President Karen Sedgwick will become the chief executive officer and president of Southern California Gas, one of Sempra’s subsidiaries.

She will be replaced by Justin Bird, who is currently the CEO of Sempra Infrastructure, the company’s subsidiary in Houston that builds, operates and invests in projects such as liquefied natural gas, or LNG, facilities.

The appointments come in the wake of a $10 billion agreement announced last fall between the Sempra parent company and KKR, one of world’s biggest investment firms. Affiliates of KKR will buy a 45% equity interest in Sempra Infrastructures Partners.

The deal, which is expected to wrap up within the next two months, underscores Sempra’s intention to concentrate the company’s investment strategy on its utility assets in Texas and California.

“This is an exciting time for our company as we continue to advance the growth of our utility businesses,” Sempra’s Chairman and CEO Jeff Martin said in a statement. “These appointments further our mission alignment and strengthen our ability to deliver long-term value for our stakeholders. Our board has great confidence in both Karen and Justin and the leadership they will bring to their new roles.”

Sempra is the parent company of San Diego Gas & Electric, as well as Dallas-based Oncor, a utility that operates the largest transmission and distribution system in Texas. Sempra affiliate SoCalGas, with headquarters in Los Angeles, is the largest natural gas distribution utility in the U.S.

Sedgwick, who has worked at various Sempra companies for more than 30 years, already serves on the SoCalGas board of directors. She replaces Maryam Brown, who left SoCalGas and was named president and chief operating officer of Indiana Michigan Power on April 27.

Bird, with more than 20 years at Sempra, will also lead the company’s investor relations, treasury, financial planning, audit, insurance and tax functions. He will continue serving on the boards of Sempra Infrastructure and Oncor.

Bird and Sedgwick will assume their new roles on or around the closing of the KKR transaction. Last month, Bob Patel was named as incoming CEO of Sempra Infrastructure.

Sempra officials believe the KKR deal will generate “substantial cash proceeds” and support “disciplined capital allocation” by simplifying the company’s business and investment strategy.

The transaction is expected to result in about 95% of Sempra’s earnings to come from U.S.  regulated utilities in 2027. The company has set a goal to have 60% of its rate base located in Texas by the end of this decade.

The KKR agreement will result in a reduction in Sempra’s stake in its various LNG investments.

Sempra’s ownership share of the first phase of the Energía Costa Azul facility in Ensenada, Mexico, will be reduced from 58.4% to 20.9%.

On the U.S. Gulf Coast, Sempra’s share of Cameron LNG in Louisiana will be reduced from 35.1% to 12.6%. In addition, its share of the first phase of the Port Arthur LNG project in Texas will drop from 19.6% to 7%, and its ownership of the second phase of Port Arthur will fall from 35.1% to 12.5%.