Spire Announces \$650 Million Sale of Natural Gas Storage Assets to I Squared Capital

Key Highlights

• Spire Inc. (NYSE: SR) has entered into a definitive agreement to sell its natural gas storage assets in Wyoming and Oklahoma, collectively known as “Spire Storage,” to I Squared Capital for \$650 million.
• The transaction includes \$600 million in cash at closing and a \$50 million fixed, non-contingent deferred payment to be received in fiscal year 2027.
• Proceeds from the sale will partially fund Spire’s recent acquisition of the Piedmont Natural Gas Tennessee business, which closed on March 31, 2026.
• The sale is a strategic move to sharpen Spire’s focus on its core regulated natural gas utility businesses, improving the company’s risk profile and positioning for sustainable growth.
• The transaction is expected to close in the second half of fiscal 2026, pending customary closing conditions and regulatory approvals, including under the Hart-Scott-Rodino Antitrust Improvements Act.
• Spire is also in the process of selling its gas marketing business, with the sale expected to close in the third fiscal quarter of 2026.
• Spire reaffirmed its long-term adjusted earnings per share (EPS) growth target of 5–7%.

Transaction Details and Strategic Rationale

The sale of Spire Storage marks a significant strategic shift for Spire, allowing the company to concentrate resources and management attention on its regulated utility businesses. According to Scott Doyle, Spire’s President and CEO, this transaction not only enhances the company’s risk profile but also supports its ability to drive long-term shareholder value. The natural gas storage assets have been important in serving customers across the Midwest, Rockies, and Western U.S., and are expected to continue playing a key role in system reliability and resiliency under I Squared Capital’s ownership.

Gautam Bhandari, Chief Investment Officer of I Squared Capital, emphasized the high quality and strategic importance of the assets, highlighting opportunities for operational enhancement and expansion to meet increasing demand for natural gas storage across the Western and Mid-Continent regions.

Details of the Assets

• Spire Storage West: Located in southwestern Wyoming, consists of two storage fields certified to provide up to 55 Bcf of working gas capacity, serving primarily the western United States.
• Spire Storage Salt Plains: Located in north central Oklahoma, serves the midcontinent and midwestern U.S., connected to Southern Star Pipeline and Oklahoma Gas Transmission, with up to 17 Bcf of working gas capacity.

I Squared Capital has indicated plans to support growth, enhance operational capabilities, and pursue expansion opportunities for these assets.

Financial and Shareholder Impact

• The \$650 million consideration will provide substantial liquidity for Spire, supporting its financing strategy and recent acquisition activity.
• Spire expects to update its fiscal 2026 guidance during its second quarter earnings call in May. The previous guidance for 2026 adjusted EPS (\$5.25–\$5.45) assumed a full year of earnings from Spire Storage and Spire Marketing; updated guidance will reflect the anticipated asset sales.
• For fiscal 2027, Spire expects adjusted EPS guidance of \$5.40–\$5.60, reflecting the sale of both the gas marketing business and the storage assets, with a full year of earnings contributions from Spire Tennessee.
• Spire reaffirmed its long-term target of 5–7% adjusted EPS growth, using the original fiscal 2027 adjusted EPS guidance midpoint of \$5.75 as a base.

Advisors and Approvals

• Greenhill, a Mizuho affiliate, acted as exclusive financial advisor to Spire.
• Vinson & Elkins LLP served as Spire’s legal counsel; Kirkland & Ellis advised I Squared Capital.
• The sales of the gas marketing business and storage assets are subject to regulatory approval.

About the Companies

Spire Inc. is one of the largest publicly traded natural gas companies in the U.S., serving nearly 2 million homes and businesses in Alabama, Mississippi, Missouri, and Tennessee. The company’s focus remains on organic growth, infrastructure investment, and continuous improvement.

I Squared Capital is a global infrastructure investor managing over \$55 billion in assets, with investments spanning power, utilities, transportation, digital, and environmental infrastructure in more than 115 countries.

Potential Share Price Impact and Shareholder Considerations

• The transaction is significant and potentially price-moving, as it streamlines Spire’s business, funds recent acquisitions, and positions the company for long-term growth.
• Investors should be aware of upcoming guidance updates, which will incorporate the financial effects of the transaction and related asset sales.
• Regulatory approvals remain a condition for closing; any delay or issue could affect timing and proceeds.
• The market may react positively to Spire’s sharpened strategic focus and improved risk profile, but investors should monitor subsequent guidance and regulatory developments closely.

Forward-Looking Statements

This article contains forward-looking statements regarding Spire’s strategic direction, financial outlook, and expected benefits of the transaction. Actual results may differ due to factors such as regulatory developments, economic conditions, and other risks as detailed in Spire’s filings with the SEC.

Disclaimer

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review all regulatory filings and consult with financial advisors before making investment decisions. The information herein is based on company disclosures as of the article date and may be subject to change.

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