NEWS
Sempra credit raised; stocks get LNG boost
New York , Aug 11 (LNG journal)
- New York , Aug 11 (LNG journal) -- Sempra Energy said the amount of money it can borrow from its revolving credit facility has been increased to $2.5 billion, up from $1.5 billion.
The utility company also said the term of the facility has been extended to five years and will expire in August 2010.
That's as Lehman Brothers, the US brokerage, this week raised its rating on Sempra's shares to "overweight" from "equal weight."
"In our view the stock reflects no value for liquid natural gas and a reasonable worst case exposure to California Power Crisis legal proceedings," Lehman wrote in a note to clients, in reference to the bright prospects seen for Sempra LNG.
"The stock has underperformed the group 10 percent since plaintiffs issued a press release mid-October 2004. Resolution of the exposure to the California Power Crisis could be a near-term catalyst with the State Court's jury trial tentatively set for Sept.12," Lehman said.
