SoCalGas Storage Saves $120M During Storm, Wells Fargo Sets $115 Target
SoCalGas' four underground storage fields eased price spikes during Winter Storm Fern, withdrawing over 8 billion cubic feet of reserves to help customers avoid more than $120 million in costs. Wells Fargo lifted Sempra Energy's price target to $115, reflecting bullish sentiment on its utility and infrastructure assets.
1. Gas Storage Cost Savings
Southern California Gas Company deployed four underground storage fields during Winter Storm Fern from January 23 to 31, withdrawing lower-cost reserves purchased months earlier at $3 per decatherm rather than buying $30 supply on the spot market, producing over $120 million in customer cost avoidance.
2. Storage Withdrawals and Demand Coverage
Over the storm period, more than 8 billion cubic feet of gas was withdrawn, meeting nearly 60% of system demand at peak and with Aliso Canyon alone supplying about 30% of deliveries, while storage levels remained robust for the remainder of winter.
3. Wells Fargo Raises Price Target
Wells Fargo boosted its Sempra Energy price target to $115, highlighting the company’s resilient utility cash flows and strategic investments in gas storage and transmission infrastructure as drivers of future value.