I Squared Capital Acquires Spire's Natural Gas Storage Assets for $650M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy SR?
Spire and I Squared Capital, a global infrastructure investment manager, have entered into an agreement in which I Squared will acquire Spire's natural gas storage assets in Wyoming and Oklahoma. Total consideration of the transaction is $650M, consisting of $600M in cash at closing and a $50M fixed, non-contingent deferred payment to be received in Spire's FY27. Proceeds from the transaction are expected to partially fund Spire's acquisition of the Piedmont Natural Gas Tennessee business, which closed on March 31, and completes its related financing plan. The transaction is expected to close in the second half of Spire's FY26. The agreement is subject to customary closing conditions and the expiration or termination of the applicable waiting period under the HSR Antitrust Improvements Act.
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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: 92.310
Low
89.00
Averages
96.67
High
104.00
Current: 92.310
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, commercial and industrial customers. The Company's segments include Gas Utility, Gas Marketing and Midstream. The Gas Utility segment includes the regulated operations of Spire Missouri, Spire Alabama, Spire Gulf Inc. and Spire Mississippi Inc. The Gas Marketing segment includes Spire Marketing Inc., a wholly owned subsidiary providing natural gas marketing services. 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.
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.
Spire Sells Natural Gas Storage Assets for $650M to I Squared Capital
- Asset Sale: Spire announced the sale of its natural gas storage assets in Wyoming and Oklahoma to I Squared Capital for $650 million, comprising $600 million in cash and a $50 million non-contingent deferred payment expected in FY 2027, significantly enhancing the company's financial flexibility.
- Focus on Core Business: This asset sale allows Spire to sharpen its focus on regulated natural gas utility operations, improving its risk profile and laying the groundwork for future growth, particularly in the acquisition of Piedmont Natural Gas Tennessee.
- Earnings Guidance Affirmation: Spire confirmed its FY 2026 adjusted earnings guidance of $5.25 to $5.45 per share and plans to provide revised guidance in its next earnings call, reflecting confidence in future performance.
- Long-Term Growth Outlook: The company reaffirmed its long-term adjusted EPS growth target of 5% to 7%, using the midpoint of $5.75 from the FY 2027 adjusted EPS guidance as a base, indicating a positive outlook for future profitability.
See More
Spire Inc. Sells Natural Gas Storage Assets for $650 Million
- Transaction Details: Spire Inc. has entered into an agreement with I Squared Capital to sell its natural gas storage assets in Wyoming and Oklahoma for a total consideration of $650 million, which includes $600 million in cash at closing and a $50 million fixed deferred payment, with proceeds expected to partially fund the acquisition of Piedmont Natural Gas Tennessee, thereby optimizing the company's financing strategy.
- Focus on Core Business: CEO Scott Doyle stated that this transaction will sharpen Spire's focus on its core regulated natural gas utility operations, enhancing its risk profile and supporting sustainable long-term growth, reflecting a strategic shift in response to energy independence and growing market demand.
- Asset Value and Market Potential: Gautam Bhandari, CIO of I Squared Capital, emphasized that Spire's gas storage assets play a critical role in key U.S. markets, possessing strong contracted cash flows and expansion potential, which are expected to meet the increasing demand for reliable energy solutions and enhance market competitiveness.
- Future Outlook and Financial Guidance: Spire anticipates providing revised financial guidance during its second quarter fiscal 2026 earnings call, reaffirming its adjusted EPS guidance for fiscal 2026 at $5.25 to $5.45, reflecting confidence in future growth while indicating that the sale of its gas storage business will not compromise its profitability.
See More
Spire Inc. to Host Q2 2026 Earnings Call
- Earnings Call Announcement: Spire Inc. will host a conference call on May 6, 2026, to discuss its fiscal Q2 2026 financial results and earnings guidance, which is expected to positively influence investor confidence.
- Call Timing and Access: The call is scheduled for 8 a.m. CT (9 a.m. ET), and investors can dial in at 844-824-3832 (U.S. and Canada) or 412-317-5142 (international) to ensure timely information delivery.
- Webcast and Replay Availability: The call will be webcast in a listen-only format, with a replay available until May 13, 2026, allowing investors who cannot attend live to access key information, thereby enhancing transparency.
- Company Overview: Spire Inc. is one of the largest publicly traded natural gas companies in the U.S., serving nearly 2 million homes and businesses, and is committed to driving growth through infrastructure investment and continuous improvement, showcasing strong market competitiveness.
See More
Duke Energy Sells Tennessee Natural Gas Business for $2.48 Billion
- Transaction Completion: Duke Energy has successfully completed the sale of its Tennessee Piedmont Natural Gas business for $2.48 billion, providing essential funding to support its future capital plans.
- Debt Repayment: Approximately $800 million of the sale proceeds will be used to pay down debt at Piedmont Natural Gas, thereby maintaining its capital structure and ensuring financial stability for future investments.
- Capital Plan Support: The remaining $1.5 billion in proceeds will help fund the industry's largest regulated capital plan of $103 billion, aimed at meeting increasing energy demands while keeping customer costs low.
- Employee Transition: The transaction ensures a smooth transition of Piedmont Natural Gas employees to Spire, maintaining business continuity while Spire continues to deliver high-quality service to customers in Tennessee.
See More
Spire Completes $2.48 Billion Acquisition of Piedmont Natural Gas
- Acquisition Finalized: Spire Inc. completed its acquisition of Duke Energy's Piedmont Natural Gas business in Tennessee for $2.48 billion on March 31, 2026, significantly expanding Spire's utility footprint in the U.S. and enhancing its competitive position in the market.
- Customer Base Expansion: Spire Tennessee will serve over 200,000 customers and includes nearly 3,800 miles of distribution and transmission pipelines, entering one of the fastest-growing markets in the U.S., which is expected to drive future revenue growth and increase market share.
- Capital Investment Strategy: The acquisition is projected to represent approximately 20% of Spire's capital investment plan over the next five years, supporting a long-term adjusted earnings per share growth target of 5-7%, indicating a strong commitment to sustained growth.
- Employee Integration and Community Engagement: Following the acquisition, over 200 Piedmont employees will continue their roles at Spire Tennessee, and Spire plans to actively recruit new positions in Tennessee, further enhancing its community impact and service capabilities.
See More
Duke Energy Completes $2.48 Billion Sale of Natural Gas Business
- Transaction Completion: Duke Energy has successfully completed the sale of its Tennessee Piedmont Natural Gas business for $2.48 billion, providing crucial funding to support its $103 billion capital plan aimed at meeting growing energy demands.
- Debt Repayment: Approximately $800 million of the proceeds will be allocated to pay down debt at Piedmont Natural Gas, thereby maintaining its capital structure and ensuring financial stability for future investments.
- Customer Service Commitment: Duke Energy CEO Harry Sideris expressed gratitude to the Tennessee team for their dedication to customer service continuity, with Spire committed to delivering high-quality service to meet local community energy needs.
- Market Expansion: This transaction enables Spire to expand its core utility business, adding nearly 3,800 miles of pipeline network serving over 200,000 customers, further solidifying its position in the natural gas market.
See More
Spire Sells Natural Gas Storage Assets for $650M to I Squared Capital
- Asset Sale: Spire announced the sale of its natural gas storage assets in Wyoming and Oklahoma to I Squared Capital for $650 million, comprising $600 million in cash and a $50 million non-contingent deferred payment expected in FY 2027, significantly enhancing the company's financial flexibility.
- Focus on Core Business: This asset sale allows Spire to sharpen its focus on regulated natural gas utility operations, improving its risk profile and laying the groundwork for future growth, particularly in the acquisition of Piedmont Natural Gas Tennessee.
- Earnings Guidance Affirmation: Spire confirmed its FY 2026 adjusted earnings guidance of $5.25 to $5.45 per share and plans to provide revised guidance in its next earnings call, reflecting confidence in future performance.
- Long-Term Growth Outlook: The company reaffirmed its long-term adjusted EPS growth target of 5% to 7%, using the midpoint of $5.75 from the FY 2027 adjusted EPS guidance as a base, indicating a positive outlook for future profitability.
See More
Spire Inc. Sells Natural Gas Storage Assets for $650 Million
- Transaction Details: Spire Inc. has entered into an agreement with I Squared Capital to sell its natural gas storage assets in Wyoming and Oklahoma for a total consideration of $650 million, which includes $600 million in cash at closing and a $50 million fixed deferred payment, with proceeds expected to partially fund the acquisition of Piedmont Natural Gas Tennessee, thereby optimizing the company's financing strategy.
- Focus on Core Business: CEO Scott Doyle stated that this transaction will sharpen Spire's focus on its core regulated natural gas utility operations, enhancing its risk profile and supporting sustainable long-term growth, reflecting a strategic shift in response to energy independence and growing market demand.
- Asset Value and Market Potential: Gautam Bhandari, CIO of I Squared Capital, emphasized that Spire's gas storage assets play a critical role in key U.S. markets, possessing strong contracted cash flows and expansion potential, which are expected to meet the increasing demand for reliable energy solutions and enhance market competitiveness.
- Future Outlook and Financial Guidance: Spire anticipates providing revised financial guidance during its second quarter fiscal 2026 earnings call, reaffirming its adjusted EPS guidance for fiscal 2026 at $5.25 to $5.45, reflecting confidence in future growth while indicating that the sale of its gas storage business will not compromise its profitability.
See More
Spire Inc. to Host Q2 2026 Earnings Call
- Earnings Call Announcement: Spire Inc. will host a conference call on May 6, 2026, to discuss its fiscal Q2 2026 financial results and earnings guidance, which is expected to positively influence investor confidence.
- Call Timing and Access: The call is scheduled for 8 a.m. CT (9 a.m. ET), and investors can dial in at 844-824-3832 (U.S. and Canada) or 412-317-5142 (international) to ensure timely information delivery.
- Webcast and Replay Availability: The call will be webcast in a listen-only format, with a replay available until May 13, 2026, allowing investors who cannot attend live to access key information, thereby enhancing transparency.
- Company Overview: Spire Inc. is one of the largest publicly traded natural gas companies in the U.S., serving nearly 2 million homes and businesses, and is committed to driving growth through infrastructure investment and continuous improvement, showcasing strong market competitiveness.
See More
Duke Energy Sells Tennessee Natural Gas Business for $2.48 Billion
- Transaction Completion: Duke Energy has successfully completed the sale of its Tennessee Piedmont Natural Gas business for $2.48 billion, providing essential funding to support its future capital plans.
- Debt Repayment: Approximately $800 million of the sale proceeds will be used to pay down debt at Piedmont Natural Gas, thereby maintaining its capital structure and ensuring financial stability for future investments.
- Capital Plan Support: The remaining $1.5 billion in proceeds will help fund the industry's largest regulated capital plan of $103 billion, aimed at meeting increasing energy demands while keeping customer costs low.
- Employee Transition: The transaction ensures a smooth transition of Piedmont Natural Gas employees to Spire, maintaining business continuity while Spire continues to deliver high-quality service to customers in Tennessee.
See More
Spire Completes $2.48 Billion Acquisition of Piedmont Natural Gas
- Acquisition Finalized: Spire Inc. completed its acquisition of Duke Energy's Piedmont Natural Gas business in Tennessee for $2.48 billion on March 31, 2026, significantly expanding Spire's utility footprint in the U.S. and enhancing its competitive position in the market.
- Customer Base Expansion: Spire Tennessee will serve over 200,000 customers and includes nearly 3,800 miles of distribution and transmission pipelines, entering one of the fastest-growing markets in the U.S., which is expected to drive future revenue growth and increase market share.
- Capital Investment Strategy: The acquisition is projected to represent approximately 20% of Spire's capital investment plan over the next five years, supporting a long-term adjusted earnings per share growth target of 5-7%, indicating a strong commitment to sustained growth.
- Employee Integration and Community Engagement: Following the acquisition, over 200 Piedmont employees will continue their roles at Spire Tennessee, and Spire plans to actively recruit new positions in Tennessee, further enhancing its community impact and service capabilities.
See More
Duke Energy Completes $2.48 Billion Sale of Natural Gas Business
- Transaction Completion: Duke Energy has successfully completed the sale of its Tennessee Piedmont Natural Gas business for $2.48 billion, providing crucial funding to support its $103 billion capital plan aimed at meeting growing energy demands.
- Debt Repayment: Approximately $800 million of the proceeds will be allocated to pay down debt at Piedmont Natural Gas, thereby maintaining its capital structure and ensuring financial stability for future investments.
- Customer Service Commitment: Duke Energy CEO Harry Sideris expressed gratitude to the Tennessee team for their dedication to customer service continuity, with Spire committed to delivering high-quality service to meet local community energy needs.
- Market Expansion: This transaction enables Spire to expand its core utility business, adding nearly 3,800 miles of pipeline network serving over 200,000 customers, further solidifying its position in the natural gas market.
See More
