Spire Sells Gas Marketing Business for $215M to Boardwalk Pipelines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy SR?
Source: seekingalpha
- Transaction Overview: Spire announced the sale of its gas marketing business to Boardwalk Pipelines for $215 million in cash, aiming to optimize asset allocation and enhance financial flexibility.
- Use of Proceeds: The proceeds from the sale will be partially used to fund the acquisition of Piedmont Natural Gas Tennessee and for general corporate purposes, indicating the company's proactive strategy in expanding its operations.
- Earnings Guidance Adjustment: Reflecting the impact of this transaction, Spire now expects its FY 2027 adjusted earnings guidance to be between $5.40 and $5.60 per share, down from the previous range of $5.65 to $5.85, which reflects a cautious market outlook on future profitability.
- Long-term Growth Commitment: Despite the downward adjustment in short-term earnings expectations, Spire reaffirms its long-term adjusted EPS growth rate of 5% to 7%, demonstrating the company's confidence and strategic planning for future growth.
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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: 91.400
Low
89.00
Averages
96.67
High
104.00
Current: 91.400
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 Gas Marketing Business for $215 Million
- Transaction Value and Impact: Spire Inc. announced the sale of its gas marketing business, Spire Marketing, for $215 million in cash, with the transaction expected to close in the third fiscal quarter of 2026, providing partial funding for the acquisition of Piedmont Natural Gas Tennessee and enhancing financial flexibility.
- Strategic Focus: CEO Scott Doyle stated that the sale simplifies the company's business structure, improves risk profile, and enhances long-term earnings visibility, indicating a commitment to focus on core utility operations and strengthen market competitiveness.
- Market Expansion: Boardwalk Pipelines CEO Scott Hallam emphasized that acquiring Spire Marketing will enhance Boardwalk's participation in the natural gas value chain, leveraging an experienced team to optimize asset allocation and better meet customers' increasingly complex energy needs.
- Future Outlook: Spire expects its fiscal 2027 adjusted EPS guidance to range from $5.40 to $5.60, reflecting the anticipated sale of Spire Marketing while maintaining focus on the sale of gas storage facilities and the Piedmont acquisition, demonstrating confidence in future growth.
See More
SPIRE INC: FUNDS ANTICIPATED TO PARTIALLY FINANCE THE ACQUISITION OF PIEDMONT NATURAL GAS TENNESSEE OPERATIONS AND SUPPORT GENERAL CORPORATE NEEDS
- Funding Purpose: Proceeds are expected to be used to partially fund the acquisition of Piedmont Natural Gas.
- Business and Corporate Goals: The acquisition aims to support business operations and general corporate purposes.
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 Acquires Piedmont Natural Gas Business in Tennessee
- Acquisition Completed: Spire Inc. completed its acquisition of Piedmont Natural Gas for $2.48 billion on March 31, 2026, making it the largest investor-owned natural gas utility in Tennessee, significantly expanding Spire's operational footprint.
- Customer and Employee Transition: The acquisition facilitates the transition of over 200 Piedmont employees to Spire Tennessee, ensuring a seamless experience for customers and employees, while Spire plans to add support roles to meet operational needs.
- Long-term Growth Outlook: Spire Tennessee is expected to represent 20% of Spire's capital investment plan, supporting an adjusted earnings per share growth of 5-7% annually, indicating strong confidence in future business expansion.
- Regional Market Advantage: Tennessee's favorable regulatory environment encourages capital investment, allowing Spire to enhance its market position in the rapidly growing Nashville area, addressing the increasing energy demands of the community.
See More
Spire Sells Gas Marketing Business for $215 Million
- Transaction Value and Impact: Spire Inc. announced the sale of its gas marketing business, Spire Marketing, for $215 million in cash, with the transaction expected to close in the third fiscal quarter of 2026, providing partial funding for the acquisition of Piedmont Natural Gas Tennessee and enhancing financial flexibility.
- Strategic Focus: CEO Scott Doyle stated that the sale simplifies the company's business structure, improves risk profile, and enhances long-term earnings visibility, indicating a commitment to focus on core utility operations and strengthen market competitiveness.
- Market Expansion: Boardwalk Pipelines CEO Scott Hallam emphasized that acquiring Spire Marketing will enhance Boardwalk's participation in the natural gas value chain, leveraging an experienced team to optimize asset allocation and better meet customers' increasingly complex energy needs.
- Future Outlook: Spire expects its fiscal 2027 adjusted EPS guidance to range from $5.40 to $5.60, reflecting the anticipated sale of Spire Marketing while maintaining focus on the sale of gas storage facilities and the Piedmont acquisition, demonstrating confidence in future growth.
See More
SPIRE INC: FUNDS ANTICIPATED TO PARTIALLY FINANCE THE ACQUISITION OF PIEDMONT NATURAL GAS TENNESSEE OPERATIONS AND SUPPORT GENERAL CORPORATE NEEDS
- Funding Purpose: Proceeds are expected to be used to partially fund the acquisition of Piedmont Natural Gas.
- Business and Corporate Goals: The acquisition aims to support business operations and general corporate purposes.
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 Acquires Piedmont Natural Gas Business in Tennessee
- Acquisition Completed: Spire Inc. completed its acquisition of Piedmont Natural Gas for $2.48 billion on March 31, 2026, making it the largest investor-owned natural gas utility in Tennessee, significantly expanding Spire's operational footprint.
- Customer and Employee Transition: The acquisition facilitates the transition of over 200 Piedmont employees to Spire Tennessee, ensuring a seamless experience for customers and employees, while Spire plans to add support roles to meet operational needs.
- Long-term Growth Outlook: Spire Tennessee is expected to represent 20% of Spire's capital investment plan, supporting an adjusted earnings per share growth of 5-7% annually, indicating strong confidence in future business expansion.
- Regional Market Advantage: Tennessee's favorable regulatory environment encourages capital investment, allowing Spire to enhance its market position in the rapidly growing Nashville area, addressing the increasing energy demands of the community.
See More
