Spire Agrees to Sell Mississippi Unit to Delta Utilities for $75M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy SR?
Source: seekingalpha
- Transaction Value: Spire announced the sale of its Mississippi local distribution company for $75 million in cash to Delta Utilities, backed by Bernhard Capital Partners, which will enhance Delta's market position in south-central Mississippi.
- Operational Scale: Spire's Mississippi operations encompass 745 miles of distribution pipelines serving approximately 18,000 customers, including Hattiesburg, and the sale will allow the company to focus more on its core markets.
- Use of Proceeds: The proceeds from the sale will fund Spire's planned infrastructure investments across its regulated gas utilities in Alabama, Missouri, and Tennessee, indicating a strategic decision to enhance long-term growth potential in these regions.
- Regulatory Approval: The agreement is subject to approval by the Mississippi Public Service Commission, reflecting the compliance procedures necessary for asset restructuring, ensuring the legality and transparency of the transaction.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 90.870
Low
89.00
Averages
96.67
High
104.00
Current: 90.870
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 Agrees to Sell Mississippi Unit to Delta Utilities for $75M
- Transaction Value: Spire announced the sale of its Mississippi local distribution company for $75 million in cash to Delta Utilities, backed by Bernhard Capital Partners, which will enhance Delta's market position in south-central Mississippi.
- Operational Scale: Spire's Mississippi operations encompass 745 miles of distribution pipelines serving approximately 18,000 customers, including Hattiesburg, and the sale will allow the company to focus more on its core markets.
- Use of Proceeds: The proceeds from the sale will fund Spire's planned infrastructure investments across its regulated gas utilities in Alabama, Missouri, and Tennessee, indicating a strategic decision to enhance long-term growth potential in these regions.
- Regulatory Approval: The agreement is subject to approval by the Mississippi Public Service Commission, reflecting the compliance procedures necessary for asset restructuring, ensuring the legality and transparency of the transaction.
See More
Delta Utilities Acquires Spire Mississippi to Enhance Operations
- Acquisition Overview: Delta Utilities has entered into an agreement to acquire Spire Mississippi, a local natural gas distribution company serving approximately 18,000 customers, with the transaction expected to close by the end of 2026, pending regulatory approvals.
- Operational Efficiency Gains: The acquisition is anticipated to enhance Delta Utilities' operational efficiencies in Mississippi by leveraging shared equipment, technology, and personnel, thereby improving emergency response readiness and creating long-term value for customers and stakeholders.
- Employee Integration Plan: More than 35 employees from Spire Mississippi are expected to join the Delta Utilities team, ensuring a seamless transition of service for legacy customers and further strengthening Delta's service capabilities in the region.
- Strategic Growth Objective: Jeff Jenkins, Founder and Partner at Bernhard, emphasized that this acquisition represents a disciplined approach to strategic growth, aimed at integrating high-quality assets to enhance operations and deliver long-term value.
See More
Delta Utilities Acquires Spire Mississippi to Enhance Operations
- Acquisition Overview: Delta Utilities has entered into an agreement to acquire Spire Mississippi, a local natural gas distribution company serving approximately 18,000 customers, with the transaction expected to close by the end of 2026 pending regulatory approvals.
- Operational Efficiency Gains: The acquisition is anticipated to enhance Delta Utilities' operational efficiencies through shared equipment, technology, and personnel, thereby improving emergency response readiness and providing more reliable service to customers and stakeholders.
- Employee Integration Plan: More than 35 employees from Spire Mississippi are expected to join the Delta Utilities team, ensuring a seamless transition of service for legacy customers and reinforcing Delta's reputation as a trusted operator in the region.
- Strategic Growth Objective: Jeff Jenkins, Founder and Partner at Bernhard, emphasized that this acquisition represents a disciplined approach to strategic growth, aimed at integrating high-quality assets to strengthen operations and deliver long-term value.
See More
Spire Inc. Sells Mississippi Distribution Company for $75 Million
- Transaction Value and Multiple: Spire Inc. announced the sale of its Mississippi local distribution company for $75 million in cash, representing a 1.4x multiple of the 2025 rate base, highlighting the company's strategic asset management capabilities.
- Use of Proceeds: The proceeds from this transaction will fund infrastructure investments across Spire's regulated gas utilities in Alabama, Missouri, and Tennessee, aimed at enhancing customer service quality and bolstering long-term shareholder value.
- Impact on Customers and Employees: Upon completion of the transaction, approximately 745 miles of distribution pipelines will continue to serve around 18,000 customers in south-central Mississippi, ensuring service continuity, while Spire employees will transition to Delta Utilities to safeguard customer interests.
- Future Development Strategy: Spire's CEO Scott Doyle stated that this transaction will sharpen the company's focus on its larger regulated gas utilities, driving infrastructure modernization and enhancing customer affordability and service reliability.
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 Agrees to Sell Mississippi Unit to Delta Utilities for $75M
- Transaction Value: Spire announced the sale of its Mississippi local distribution company for $75 million in cash to Delta Utilities, backed by Bernhard Capital Partners, which will enhance Delta's market position in south-central Mississippi.
- Operational Scale: Spire's Mississippi operations encompass 745 miles of distribution pipelines serving approximately 18,000 customers, including Hattiesburg, and the sale will allow the company to focus more on its core markets.
- Use of Proceeds: The proceeds from the sale will fund Spire's planned infrastructure investments across its regulated gas utilities in Alabama, Missouri, and Tennessee, indicating a strategic decision to enhance long-term growth potential in these regions.
- Regulatory Approval: The agreement is subject to approval by the Mississippi Public Service Commission, reflecting the compliance procedures necessary for asset restructuring, ensuring the legality and transparency of the transaction.
See More
Delta Utilities Acquires Spire Mississippi to Enhance Operations
- Acquisition Overview: Delta Utilities has entered into an agreement to acquire Spire Mississippi, a local natural gas distribution company serving approximately 18,000 customers, with the transaction expected to close by the end of 2026, pending regulatory approvals.
- Operational Efficiency Gains: The acquisition is anticipated to enhance Delta Utilities' operational efficiencies in Mississippi by leveraging shared equipment, technology, and personnel, thereby improving emergency response readiness and creating long-term value for customers and stakeholders.
- Employee Integration Plan: More than 35 employees from Spire Mississippi are expected to join the Delta Utilities team, ensuring a seamless transition of service for legacy customers and further strengthening Delta's service capabilities in the region.
- Strategic Growth Objective: Jeff Jenkins, Founder and Partner at Bernhard, emphasized that this acquisition represents a disciplined approach to strategic growth, aimed at integrating high-quality assets to enhance operations and deliver long-term value.
See More
Delta Utilities Acquires Spire Mississippi to Enhance Operations
- Acquisition Overview: Delta Utilities has entered into an agreement to acquire Spire Mississippi, a local natural gas distribution company serving approximately 18,000 customers, with the transaction expected to close by the end of 2026 pending regulatory approvals.
- Operational Efficiency Gains: The acquisition is anticipated to enhance Delta Utilities' operational efficiencies through shared equipment, technology, and personnel, thereby improving emergency response readiness and providing more reliable service to customers and stakeholders.
- Employee Integration Plan: More than 35 employees from Spire Mississippi are expected to join the Delta Utilities team, ensuring a seamless transition of service for legacy customers and reinforcing Delta's reputation as a trusted operator in the region.
- Strategic Growth Objective: Jeff Jenkins, Founder and Partner at Bernhard, emphasized that this acquisition represents a disciplined approach to strategic growth, aimed at integrating high-quality assets to strengthen operations and deliver long-term value.
See More
Spire Inc. Sells Mississippi Distribution Company for $75 Million
- Transaction Value and Multiple: Spire Inc. announced the sale of its Mississippi local distribution company for $75 million in cash, representing a 1.4x multiple of the 2025 rate base, highlighting the company's strategic asset management capabilities.
- Use of Proceeds: The proceeds from this transaction will fund infrastructure investments across Spire's regulated gas utilities in Alabama, Missouri, and Tennessee, aimed at enhancing customer service quality and bolstering long-term shareholder value.
- Impact on Customers and Employees: Upon completion of the transaction, approximately 745 miles of distribution pipelines will continue to serve around 18,000 customers in south-central Mississippi, ensuring service continuity, while Spire employees will transition to Delta Utilities to safeguard customer interests.
- Future Development Strategy: Spire's CEO Scott Doyle stated that this transaction will sharpen the company's focus on its larger regulated gas utilities, driving infrastructure modernization and enhancing customer affordability and service reliability.
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
