Spire Completes $650 Million Sale of Natural Gas Storage Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 30 2026
0mins
Source: PRnewswire
- Transaction Completion: Spire Inc. successfully completed the sale of its natural gas storage business in Wyoming and Oklahoma to I Squared Capital for $650 million on June 30, 2026, consisting of $600 million in cash and a $50 million deferred payment, thereby enhancing the company's financial position.
- Focus on Core Business: This transaction marks a significant milestone for Spire as it sharpens its focus on its core utility business, with CEO Scott Doyle stating that the sale will better position the company to deliver sustainable long-term value for customers and shareholders.
- Market Demand Response: Bear River Midstream plans to enhance operational capabilities with the acquired storage assets to meet the increasing market demand for energy storage across the Western and Mid-Continent regions, ensuring energy availability when customers need it most.
- Asset Overview: The former Spire Storage business includes two storage fields in Wyoming with a capacity of 55 Bcf and another in Oklahoma with a capacity of 17 Bcf, connected to Southern Star Pipeline and Oklahoma Gas Transmission, thereby strengthening regional energy supply stability.
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Analyst Views on SR
Wall Street analysts forecast SR stock price to rise
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 81.040
Low
89.00
Averages
96.67
High
104.00
Current: 81.040
Low
89.00
Averages
96.67
High
104.00
About SR
Spire Inc. is a holding company for Spire Missouri Inc. (Spire Missouri), Spire Alabama Inc. (Spire Alabama), other gas utilities, and gas-related businesses. Spire Missouri is a public utility engaged in the purchase, retail distribution and sale of natural gas. Spire Alabama is a public utility engaged in the purchase, retail distribution and sale of natural gas principally in central and northern Alabama, serving residential and commercial customers. Its segments include Gas Utility, and Midstream. The Gas Utility segment includes the regulated operations of Spire Missouri, Spire Alabama, Spire Gulf Inc. and Spire Mississippi Inc. The Midstream segment includes Spire STL Pipeline LLC, Spire MoGas Pipeline LLC, and Spire Storage, which are subsidiaries engaged in the transportation and storage of natural gas. Spire Gulf and Spire Mississippi are utilities engaged in the purchase, retail distribution and sale of natural gas to the Alabama area and south-central Mississippi.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Spire Completes $650 Million Sale of Natural Gas Storage Business
- Transaction Completion: Spire Inc. successfully completed the sale of its natural gas storage business in Wyoming and Oklahoma to I Squared Capital for $650 million on June 30, 2026, consisting of $600 million in cash and a $50 million deferred payment, thereby enhancing the company's financial position.
- Focus on Core Business: This transaction marks a significant milestone for Spire as it sharpens its focus on its core utility business, with CEO Scott Doyle stating that the sale will better position the company to deliver sustainable long-term value for customers and shareholders.
- Market Demand Response: Bear River Midstream plans to enhance operational capabilities with the acquired storage assets to meet the increasing market demand for energy storage across the Western and Mid-Continent regions, ensuring energy availability when customers need it most.
- Asset Overview: The former Spire Storage business includes two storage fields in Wyoming with a capacity of 55 Bcf and another in Oklahoma with a capacity of 17 Bcf, connected to Southern Star Pipeline and Oklahoma Gas Transmission, thereby strengthening regional energy supply stability.
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- Transaction Completion: Spire Inc. successfully completed the sale of its natural gas storage business in Wyoming and Oklahoma to I Squared Capital for $650 million on June 30, 2026, consisting of $600 million in cash and a $50 million deferred payment, thereby enhancing the company's financial position.
- Focus on Core Business: This transaction marks a significant milestone for Spire as it sharpens its focus on its core utility business, with CEO Scott Doyle stating that the sale will better position the company to deliver sustainable long-term value for customers and shareholders.
- Market Demand Response: Bear River Midstream plans to enhance operational capabilities with the acquired storage assets to meet the increasing market demand for energy storage across the Western and Mid-Continent regions, ensuring energy availability when customers need it most.
- Asset Overview: The former Spire Storage business includes two storage fields in Wyoming with a capacity of 55 Bcf and another in Oklahoma with a capacity of 17 Bcf, connected to Southern Star Pipeline and Oklahoma Gas Transmission, thereby strengthening regional energy supply stability.
See More
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- Rising Natural Gas Demand: The increasing demand for natural gas in the U.S. due to its cleaner-burning characteristics is driving stable revenues for utilities like Southwest Gas and Spire, which are investing in infrastructure and customer growth.
- Financial Performance Comparison: Southwest Gas is projected to have an EPS of $4.27 in 2026 and $4.85 in 2027, indicating year-over-year growth rates of 16.99% and 13.63%, showcasing strong financial growth potential.
- Capital Investment Plans: Southwest Gas plans to invest $6.3 billion from 2026 to 2030, with 73% allocated to its operations and 27% to the Great Basin project, aimed at enhancing service reliability and supporting infrastructure development.
- Debt and Return on Equity: Southwest Gas has a debt-to-capital ratio of 46.11%, lower than Spire's 69.95%, while Spire's return on equity stands at 9.49%, outperforming Southwest Gas's 6.95%, highlighting differences in financial management between the two companies.
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- Earnings Highlights: Spire Inc. reported adjusted earnings per share of $3.76 for Q2, an 18.6% increase from $3.17 a year ago, indicating improved profitability following the Tennessee acquisition despite facing climate-related challenges.
- Acquisition and Financing: The successful acquisition of the Tennessee business added over 200,000 customers, funded through $900 million of junior subordinated notes and an $800 million term loan, ensuring adequate capital for growth and enhancing market competitiveness.
- Future Outlook: Spire provided adjusted EPS guidance for fiscal 2026 in the range of $3.90 to $4.10, reflecting confidence in future growth, although gas utility earnings expectations were lowered due to adverse weather conditions.
- Regulatory Challenges: Due to unusual weather in Missouri, customer usage fell below historical patterns, leading to a margin shortfall; Spire has filed for an accounting authority order to seek recovery, demonstrating proactive management in addressing external environmental changes.
See More
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- Financial Performance Boost: Spire reported a net income of $217.6 million ($3.51 per share) for Q2 2026, up from $189.3 million ($3.17 per share) in the prior year, demonstrating robust performance in its core natural gas utility business.
- Adjusted Earnings Growth: Adjusted earnings reached $223.7 million ($3.76 per share), significantly higher than last year's $189.3 million ($3.17 per share), primarily driven by the implementation of new rates and infrastructure investments.
- Strong Gas Utility Performance: The gas utility segment posted adjusted earnings of $234.8 million, an increase from $195.2 million year-over-year, reflecting the positive impact of new rates and sales growth, despite some pressure from weather-related factors.
- Optimistic Future Outlook: Spire updated its fiscal 2026 adjusted earnings guidance to a range of $3.90 to $4.10 per share, underscoring the consistency of its long-term growth strategy and confidence in future performance.
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