SRE

What is SRE?

Sempra was born in 1998 through the merger of Enova Corporation and Pacific Enterprises, two long-standing Southern California energy firms. Since then, it has evolved from a regional utility provider into one of North America's most significant energy infrastructure companies. Based in San Diego, it now serves nearly 40 million consumers globally, focusing on delivering essential energy services while leading the transition toward a lower-carbon future.

The business model revolves around three main segments: Sempra California, Sempra Texas, and Sempra Infrastructure. Sempra California includes household names like San Diego Gas and Electric and Southern California Gas Company, which provide regulated electricity and natural gas. In Texas, the company holds a majority stake in Oncor, the largest regulated electric delivery and transmission business in the state. Meanwhile, Sempra Infrastructure builds out massive liquefied natural gas (LNG) export facilities and renewable energy projects.

Historically, Sempra has reached major milestones by divesting its non-core assets to focus on high-growth markets like the Permian Basin and the Gulf Coast. Its financial standing is solid, characterized by consistent dividend increases and a multi-billion-dollar capital expenditure program aimed at grid modernization and decarbonization. They have managed to maintain an investment-grade credit rating even while funding massive infrastructure builds.

Looking ahead to 2026, Sempra is positioning itself as a central player in the global energy export market. The strategic outlook centers on the commercial operation of the Port Arthur LNG project and further expansions at Cameron LNG. By 2026, the company expects to see a significant uptick in earnings driven by these long-term contracts and the ongoing electrification of the Texas economy. They are also doubling down on green hydrogen and carbon capture technologies. For investors, this means a blend of regulated utility stability and high-growth infrastructure upside, making it a staple for anyone looking for reliable energy exposure with a modern twist.

What is the XTRM Indicator?

The XTRM (Extreme) Indicator is a proprietary momentum indicator that measures cumulative time spent in extreme territory. Unlike traditional oscillators like RSI that measure a snapshot in time, XTRM accumulates how long an asset remains in oversold or overbought conditions, providing a deeper understanding of momentum exhaustion.

For SRE, monitoring the XTRM indicator provides valuable insights into prolonged extreme conditions. When the XTRM drops significantly below zero (especially below -125), Sempra has been in oversold territory for an extended period, suggesting potential for a reversal. Conversely, high positive XTRM values indicate extended overbought conditions.

Understanding SRE XTRM Signals

• Deep Oversold (XTRM below -125): When SRE XTRM falls below -125, it indicates prolonged time in extreme oversold conditions. This cumulative measure often provides stronger reversal signals than single-day oversold readings.
• Neutral Zone (XTRM near 0): When XTRM hovers around zero, SRE is in a balanced state without extended extreme conditions. This can indicate consolidation or indecision in the market.
• Overbought (XTRM above +10): An XTRM above +10 indicates SRE has been in overbought territory for an extended period, potentially signaling an overextended rally and increased risk of pullback.

Daily vs Weekly XTRM for SRE

This page displays both daily and weekly XTRM for SRE. The daily XTRM tracks short-term cumulative extremes, useful for identifying swing trading opportunities. The weekly XTRM provides a longer-term perspective on momentum exhaustion, helping investors spot major turning points.

By analyzing both timeframes together, you can identify when Sempra is experiencing extreme conditions at multiple time scales, which often leads to the strongest reversal setups.

Historical XTRM Extreme Analysis

Above, we track historical instances when SRE XTRM dropped below -125 (extreme oversold territory). These periods represent times when Sempra spent extended periods in oversold conditions, which historically have presented some of the best buying opportunities. Analyzing how SRE behaved after reaching these extreme XTRM levels can help inform future trading decisions.