Spire and I Squared announce agreement for sale of natural gas storage assets for $650 million
Rhea-AI Summary
Spire (NYSE: SR) agreed to sell its natural gas storage assets in Wyoming and Oklahoma to I Squared Capital for $650 million ($600M cash at closing, $50M deferred in fiscal 2027). The sale supports funding for the Piedmont Tennessee acquisition and is expected to close in the second half of Spire's fiscal 2026, subject to customary conditions and HSR clearance.
Spire Storage includes 55 Bcf working capacity in Wyoming and 17 Bcf in Oklahoma. Spire said the transaction sharpens focus on regulated utility operations and improves its risk profile; guidance updates will be provided on the Q2 fiscal 2026 earnings call in May.
Positive
- Deal proceeds of $650 million ( $600M cash + $50M deferred )
- Funds Piedmont acquisition financing for Tennessee business
- Working gas capacity total 72 Bcf (55 Bcf + 17 Bcf)
- Management says transaction improves Spire's risk profile
Negative
- Loss of storage assets removes 72 Bcf working gas capacity from Spire
- Closing contingent on regulatory approvals and Hart-Scott-Rodino waiting period
- Deferred payment timing of $50M paid in fiscal 2027 (timing risk)
News Market Reaction – SR
In the Apr 15 session, SR declined 0.60%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | Tennessee asset sale | Positive | +0.5% | Duke Energy completed Piedmont Tennessee sale to Spire for $2.48B. |
| Mar 31 | Utility acquisition | Positive | +0.5% | Spire closed acquisition of Piedmont Tennessee business for $2.48B. |
| Mar 30 | Marketing sale agreed | Positive | +0.8% | Agreed to sell Spire Marketing to Boardwalk for $215M in cash. |
| Mar 30 | Buyer announcement | Positive | +0.8% | Boardwalk announced deal to acquire Spire Marketing, expanding gas value chain. |
| Feb 03 | Q1 earnings | Positive | -0.5% | Reported higher Q1 net income and affirmed 2026–2027 EPS guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent strategic transactions and financing updates have generally seen modestly positive price reactions, while strong quarterly results once saw a small negative reaction.
Over the last few months, Spire has focused on reshaping its portfolio and balance sheet. On Feb 3, 2026, it reported stronger Q1 earnings and affirmed guidance, but shares dipped 0.49%. Later, multiple financing filings in January supported the pending $2.48B Piedmont Tennessee acquisition, which closed on Mar 31, 2026. That acquisition and the $215M sale of Spire Marketing on Mar 30, 2026 saw mild positive reactions. Today’s storage sale continues this pivot toward core regulated utilities and funding the Tennessee deal.
Key Terms
hart-scott-rodino antitrust improvements act regulatory
working gas capacity technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Further sharpens Spire's focus on regulated natural gas utility businesses and improves risk profile; Positions the company for continued growth under I Squared ownership
Total consideration of the transaction is
Proceeds from the transaction are expected to partially fund Spire's acquisition of the Piedmont Natural Gas Tennessee business, which closed on March 31, 2026, and completes its related financing plan.
"This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses," said Scott Doyle, president and chief executive officer of Spire. "Our gas storage assets have played an important role in serving customers across the Midwest, Rockies and
"These assets represent a high-quality, strategically located infrastructure platform that plays a critical role in supporting energy reliability across key
"Spire built great platforms in
I Squared intends to support the next phase of growth of the platform, including enhancing operational capabilities and pursuing expansion opportunities to serve increasing demand for natural gas storage across the Western and Mid-Continent regions.
Spire Storage consists of Spire Storage West and Spire Storage Salt Plains. Spire Storage West, located in southwestern
The transaction is expected to close in the second half of Spire's fiscal year 2026. The agreement is subject to customary closing conditions and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Greenhill, a Mizuho affiliate, acted as exclusive financial advisor to Spire. Vinson & Elkins LLP served as Spire's legal counsel. Kirkland & Ellis served as I Squared's legal advisor.
Spire's Guidance and Growth Outlook
Spire expects to provide revised 2026 guidance on its second quarter fiscal 2026 earnings call in May. The fiscal 2026 adjusted EPS guidance of
Spire continues to expect fiscal 2027 adjusted EPS guidance to be in the range of
Spire reaffirmed its long-term adjusted earnings per share growth of 5
The sales of the gas marketing business and gas storage facilities are subject to regulatory approvals. The sale of Spire Marketing is expected to close in the third fiscal quarter of 2026, and the sale of Spire Storage is expected to close in the second half of fiscal 2026
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we have the honor of serving close to 2 million homes and businesses, making us one of the largest publicly traded natural gas companies in the country. We help families and business owners fuel their daily lives through our gas utilities serving
About I Squared Capital
I Squared Capital is a leading independent global infrastructure investor dedicated to the mid-market, managing more than
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) and quarterly (Form 10-Q) filings with the Securities and Exchange Commission.
This news release includes the non-GAAP financial measures of "adjusted earnings," and "adjusted earnings per share." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Adjusted earnings exclude from net income, as applicable, the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of impairments and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Spire Investor Contact:
Megan L. McPhail
314-309-6563
Megan.McPhail@SpireEnergy.com
Spire Media Contact:
Jason Merrill
314-342-3300
Jason.Merrill@SpireEnergy.com
I Squared Capital Media Contacts:
Dominic McMullan / Sofie Brewis
Info@isquaredcapital.com
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SOURCE Spire Inc.