Spire announces sale of its Mississippi natural gas business to Delta Utilities for $75 million

Spire (NYSE: SR) agreed to sell its Mississippi local distribution company to Delta Utilities for $75 million, representing a 1.4x multiple of 2025 rate base.

Rhea-AI Summary

Spire (NYSE: SR) agreed to sell its Mississippi local distribution company to Delta Utilities for $75 million, representing a 1.4x multiple of 2025 rate base. The sale covers ~745 miles of pipeline and ~18,000 customers and is expected to close in the first fiscal quarter of 2027, subject to Mississippi Public Service Commission approval.

Proceeds will fund infrastructure investments across Spire's regulated gas utilities in Alabama, Missouri and Tennessee; affected employees supporting the business are expected to transition to Delta Utilities.

Positive

• $75 million sale proceeds to fund infrastructure investments
• Transaction values business at 1.4x 2025 rate base
• Transfers operations serving ~18,000 customers and 745 miles of pipeline
• Expected close in Q1 fiscal 2027, providing a defined timing target
• Employee transitions to buyer to maintain service continuity

Negative

• Sale requires regulatory approval from Mississippi Public Service Commission
• Spire reduces its regional footprint by ~18,000 customers
• Proceeds allocation may limit near-term liquidity until closing is completed

Argus Apr 22 session

-0.60% close to close Open Argus

Details

News Market Reaction – SR

On Apr 22, the day this news came out, SR closed 0.60% below the previous close.

Data tracked by StockTitan Argus for the Apr 22 session.

Key Figures

Mississippi sale price: $75 million Rate base multiple: 1.4x Customers served: 18,000 customers +2 more

Mississippi sale price

$75 million

Cash consideration for sale of Spire Mississippi to Delta Utilities

Rate base multiple

1.4x

Transaction represents 1.4x multiple of 2025 rate base

Customers served

18,000 customers

Spire Mississippi local distribution customers in south-central Mississippi

Pipeline length

745 miles

Approximate distribution pipeline mileage in Spire Mississippi operations

Expected closing timing

First fiscal quarter of 2027

Target closing period for the Mississippi business sale

Historical Context

5 past events · Latest: Apr 15

5 events

1. Apr 15

   Storage asset sale

   24h Move

   -0.6%

   Sale of storage assets for $650M to fund Tennessee acquisition and refocus.

2. Apr 14

   Earnings call notice

   24h Move

   +0.2%

   Announcement of FY26 Q2 earnings call timing and webcast details.

3. Mar 31

   Piedmont sale by Duke

   24h Move

   +0.5%

   Duke completes sale of Tennessee Piedmont business to Spire for $2.48B.

4. Mar 31

   Tennessee acquisition close

   24h Move

   +0.5%

   Spire completes $2.48B acquisition of Tennessee Piedmont gas business.

5. Mar 30

   Gas marketing sale

   24h Move

   +0.8%

   Sale of Spire Marketing for $215M to help fund Piedmont acquisition.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

rate base, regulated gas utilities, local distribution company

3 terms

rate base financial

"The transaction represents a 1.4x multiple of 2025 rate base."

Rate base is the dollar value of the physical assets and capital a regulated utility uses to deliver its service — things like power plants, pipes, or equipment. Regulators use that value as the starting point to set prices the utility can charge by allowing a specific percentage return on that base, so a larger or higher-valued rate base usually means higher permitted revenues and therefore directly affects investor earnings and the company's ability to raise capital.

regulated gas utilities financial

"regulated natural gas distribution portfolio now focused on larger regulated gas utilities"

Companies that deliver natural gas to homes and businesses under government oversight, with the prices they charge and major investments approved by regulators. Think of them like a local utility or water service with set rates and guaranteed service obligations; this matters to investors because regulated rules create relatively steady cash flow and lower business risk, but also limit profit growth and expose shareholders to policy or rate-setting changes.

local distribution company technical

"sell its Mississippi local distribution company ("Spire Mississippi") to Delta Utilities"

A local distribution company is a business that receives products or services from manufacturers or transmission networks and handles the storage, delivery and customer connections within a defined geographic area—think of it as the neighborhood hub that gets goods from the highway to your door. For investors it matters because these companies often control last-mile access to customers, influence sales volume, pricing flexibility, regulatory exposure and operating costs, so their performance can directly affect revenue stability and risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Sale refines geographic footprint, regulated natural gas distribution portfolio now focused on larger regulated gas utilities
• Spire Mississippi serves approximately 18,000 customers and includes roughly 745 miles of distribution pipelines
• Expected to close first fiscal quarter of 2027

ST. LOUIS, April 22, 2026 /PRNewswire/ -- Spire Inc. (NYSE: SR) today announced it has entered into an agreement to sell its Mississippi local distribution company ("Spire Mississippi") to Delta Utilities, a company backed by Bernhard Capital Partners, for $75 million in cash. The transaction represents a 1.4x multiple of 2025 rate base.

Proceeds will be used to fund planned infrastructure investments across Spire's regulated gas utilities in Alabama, Missouri and Tennessee, benefiting customers while supporting long-term shareholder value.

Spire Mississippi's operations include approximately 745 miles of distribution pipelines serving approximately 18,000 customers in south-central Mississippi, including Hattiesburg. Spire employees who directly support the business are expected to transition to Delta Utilities to ensure continuity of service for customers and communities.

"This transaction sharpens our focus on our larger regulated gas utilities where we will continue to prioritize modernizing our infrastructure while supporting customer affordability," said Scott Doyle, president and chief executive officer of Spire. "We're confident Delta will be a strong operator for the benefit of both employees and customers. I am deeply grateful to the Spire Mississippi team for their dedication and contributions over the years."

"This agreement reflects our long-term commitment to Mississippi and the customers and communities we serve," said Tim Poché, Chief Executive Officer of Delta Utilities. "By bringing these geographically aligned systems together, we can deploy capital more efficiently, strengthen service reliability and further position the company to meet customer needs today and over the long term." 

The agreement is subject to customary closing conditions, including regulatory approval by the Mississippi Public Service Commission. The transaction is expected to close in the first fiscal quarter of 2027.

Stinson LLP acted as legal counsel to Spire.

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 Alabama, Mississippi, Missouri and Tennessee. Our natural gas-related businesses include Spire Marketing and Spire Midstream. We are committed to transforming our business through growing organically, investing in infrastructure, and driving continuous improvement. Learn more at SpireEnergy.com.

About Delta Utilities

Delta Utilities and its affiliated operating entities rank among the nation's top 40 natural gas providers, delivering safe and reliable service to approximately 600,000 customers across Louisiana and Mississippi. Headquartered in New Orleans, the company employs 875 team members who live and work throughout its service territory, supporting local communities and system operations. Through continued investment across its footprint, Delta Utilities advances its mission to provide clean, safe, and affordable natural gas while maintaining a strong focus on service quality and safety. For more information, visit www.deltautilities.com.

Investor Contact:
Megan L. McPhail
314-309-6563
Megan.McPhail@SpireEnergy.com

Media Contact:
Jason Merrill
314-342-3300
Jason.Merrill@SpireEnergy.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/spire-announces-sale-of-its-mississippi-natural-gas-business-to-delta-utilities-for-75-million-302749447.html

SOURCE Spire Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Spire (SR) announce on April 22, 2026 about its Mississippi business?

Spire announced a $75 million agreement to sell Spire Mississippi to Delta Utilities. According to the company, the sale values the asset at 1.4x 2025 rate base and is expected to close in the first fiscal quarter of 2027 pending regulatory approval.

How many customers and pipeline miles are included in the Spire (SR) Mississippi sale?

The sale covers approximately 18,000 customers and about 745 miles of distribution pipelines. According to the company, those operations serve south-central Mississippi, including the Hattiesburg area.

What will Spire (SR) do with the proceeds from the $75 million sale?

Proceeds will be used to fund planned infrastructure investments across Spire's regulated gas utilities. According to the company, investments will target systems in Alabama, Missouri and Tennessee to support customers and long-term shareholder value.

When will the Spire (SR) sale to Delta Utilities close and what approvals are needed?

The transaction is expected to close in the first fiscal quarter of 2027, subject to customary closing conditions. According to the company, regulatory approval by the Mississippi Public Service Commission is required before closing.

Will Spire (SR) employees be affected by the Mississippi business sale?

Employees who directly support Spire Mississippi are expected to transition to Delta Utilities to ensure continuity of service. According to the company, this transition aims to maintain operations and customer service during the ownership change.