Spire Inc. Divests Mississippi Gas Operations to Delta Utilities for \$75 Million

ST. LOUIS, April 22, 2026 – Spire Inc. (NYSE: SR) has announced a definitive agreement to sell its Mississippi local natural gas distribution company, Spire Mississippi, to Delta Utilities—a company backed by Bernhard Capital Partners—for a total cash consideration of \$75 million. The transaction is expected to close in the first fiscal quarter of 2027, subject to customary closing conditions, including regulatory approval by the Mississippi Public Service Commission.

Key Highlights of the Transaction

• Sale Price and Valuation: The \$75 million transaction represents a 1.4x multiple of Spire Mississippi’s 2025 rate base.
• Geographic Focus: The sale will enable Spire to streamline its operational footprint, centralizing its regulated natural gas distribution portfolio around its larger utilities in Alabama, Missouri, and Tennessee.
• Business Details: Spire Mississippi operates roughly 745 miles of distribution pipelines and serves about 18,000 customers in south-central Mississippi, including the Hattiesburg area.
• Employee Transition: Employees directly supporting the Mississippi business are anticipated to transition to Delta Utilities, ensuring service continuity for both customers and local communities.
• Use of Proceeds: Proceeds from the sale will be used to fund planned infrastructure investments across Spire’s remaining regulated gas utilities, benefiting customers and supporting long-term shareholder value.

Management Commentary

Scott Doyle, President and CEO of Spire, emphasized that the transaction refines the company’s focus on its larger regulated operations, with an ongoing commitment to modernizing infrastructure and supporting customer affordability. Doyle expressed confidence in Delta Utilities as a strong operator that will continue to deliver value to both employees and customers, while also extending gratitude to the Spire Mississippi team for their years of service and dedication.

Tim Poché, CEO of Delta Utilities, reiterated Delta’s long-term commitment to Mississippi, stating that the acquisition will allow Delta to deploy capital more efficiently, strengthen service reliability, and better position the company to meet the evolving needs of its customer base.

Strategic and Shareholder Implications

• Portfolio Optimization: The divestiture sharpens Spire’s strategic focus on its core markets, potentially reducing complexity and regulatory risk, while enhancing operational efficiencies and resource allocation.
• Capital Recycling: The \$75 million in proceeds offers Spire additional flexibility to invest in infrastructure improvements in higher-growth or higher-return territories, which may support future rate base growth and earnings stability.
• Shareholder Value Impact: By refining its asset base and re-investing proceeds into its core utilities, Spire aims to deliver improved long-term value for shareholders. The transaction could be viewed favorably by the market as a disciplined portfolio management move.
• Regulatory and Execution Risks: The transaction is contingent upon regulatory approval, which may introduce some timing or execution uncertainty. Investors should monitor updates regarding the approval process and closing timeline.

About the Companies

Spire Inc. serves nearly 2 million homes and businesses, making it one of the largest publicly traded natural gas companies in the U.S., with operations in Alabama, Mississippi, Missouri, and Tennessee. The company is committed to organic growth, infrastructure investment, and continuous improvement.

Delta Utilities and its affiliates are among the nation’s top 40 natural gas providers, supplying approximately 600,000 customers in Louisiana and Mississippi. Headquartered in New Orleans, Delta employs 875 people and is focused on providing clean, safe, and affordable natural gas with an emphasis on service quality and safety.

Legal Counsel

Stinson LLP acted as Spire’s legal counsel for this transaction.

Investor Takeaways

• This transaction is potentially price-sensitive, given its impact on Spire’s operational focus, capital allocation, and long-term growth strategy.
• Investors should monitor regulatory developments and future announcements related to the planned infrastructure investments in Spire’s core territories.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell securities. Investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions. The information provided is based on publicly available disclosures as of the date of publication and may be subject to change.

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