Spire Inc. Announces Sale of Gas Marketing Business to Boardwalk Pipelines for \$215 Million

Key Highlights for Investors

• Transaction: Spire Inc. (NYSE: SR) has agreed to sell its gas marketing business, Spire Marketing Inc., to Boardwalk Pipelines, LP for \$215 million in cash.
• Strategic Focus: The sale sharpens Spire’s focus on its regulated natural gas utility operations, streamlining its business mix and improving its risk profile.
• Use of Proceeds: Proceeds from the sale are expected to be used to partially fund the acquisition of Piedmont Natural Gas Tennessee business and for general corporate purposes.
• Closing Timeline: The transaction is expected to close in the third fiscal quarter of 2026, pending regulatory approvals and customary closing conditions.
• Additional Asset Sales: Spire is also evaluating the sale of its natural gas storage facilities to further fund the Piedmont acquisition, with an update expected no later than the second quarter fiscal 2026 earnings call in May.
• Earnings Guidance Impact: Spire’s fiscal 2027 adjusted EPS guidance is revised to \$5.40–\$5.60, down from prior guidance of \$5.65–\$5.85, reflecting the expected sale of Spire Marketing. Long-term adjusted EPS growth of 5–7% is reaffirmed, using the original fiscal 2027 midpoint of \$5.75 as a base.
• Regulatory Approvals: Both the sale of Spire Marketing and the natural gas storage facilities are subject to regulatory review, including the Hart-Scott-Rodino Antitrust Improvements Act waiting period.
• Boardwalk Pipelines Expansion: Boardwalk Pipelines will gain an experienced team with deep market expertise and established commercial capabilities, strengthening its asset optimization and customer service across the natural gas value chain.
• Spire’s Business Profile: Spire serves 1.7 million homes and businesses, making it one of the largest publicly traded natural gas companies in the U.S., with utilities in Alabama, Mississippi, and Missouri.
• Legal Advisor: Stinson LLP acted as legal counsel to Spire for this transaction.
• Forward-Looking Statements and Non-GAAP Metrics: The report contains forward-looking statements regarding future operating results, subject to uncertainties including weather, economic factors, regulatory actions, and risks associated with acquisitions. Spire uses non-GAAP measures such as adjusted earnings and contribution margin for internal performance evaluation.

Detailed Analysis

Spire Inc.’s strategic divestiture of Spire Marketing Inc. for \$215 million in cash marks a significant shift in the company’s operational focus toward regulated natural gas utilities. The transaction, expected to close in the third fiscal quarter of 2026, is subject to regulatory approval and customary closing conditions. The proceeds will be partially allocated to the acquisition of Piedmont Natural Gas Tennessee business, with the remainder earmarked for general corporate purposes.

This sale is part of Spire’s broader plan to simplify its business mix, improve risk profile, and enhance long-term earnings visibility. The company is further considering the sale of its natural gas storage facilities to facilitate the Piedmont acquisition, with updates anticipated during the second quarter fiscal 2026 earnings call.

Guidance Update: Spire has not updated its fiscal 2026 guidance at this time, affirming the previously stated adjusted EPS range of \$5.25–\$5.45 for fiscal 2026, which includes a full year of earnings from Spire Marketing and gas storage facilities, but excludes the results from the Piedmont acquisition. For fiscal 2027, the adjusted EPS guidance is revised downward to \$5.40–\$5.60 due to the anticipated sale of Spire Marketing, compared to the prior range of \$5.65–\$5.85. Both guidance ranges assume the sale of gas storage facilities and a full year of earnings from the Piedmont business.

Boardwalk Pipelines’ Perspective: Boardwalk’s CEO, Scott Hallam, highlighted the acquisition as a step forward in expanding participation across the natural gas value chain. The Spire Marketing team brings market expertise and commercial capabilities, strengthening Boardwalk’s asset optimization and customer service in an increasingly complex energy market.

Spire Marketing Overview: Spire Marketing markets natural gas and related services across the U.S., focusing on procurement and physical delivery for a diverse customer base. Its retail operations serve commercial and industrial customers, while wholesale operations serve producers, pipelines, power generators, municipalities, storage operators, and utilities.

Regulatory and Legal Notes: The agreement is subject to the expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. Stinson LLP served as Spire’s legal counsel.

Implications for Shareholders

• Share Price Sensitivity: The divestiture of Spire Marketing is likely to impact Spire’s future earnings, as indicated by the downward revision in EPS guidance for fiscal 2027. Investors should monitor regulatory approvals and the progress of the Piedmont acquisition, as these events could influence share value.
• Strategic Focus: The company’s sharpened focus on regulated utility operations and asset sales may improve its risk profile and long-term earnings visibility, potentially providing more stability to shareholders.
• Potential for Additional Asset Sales: The continued evaluation of gas storage facilities for sale may further fund strategic acquisitions, affecting Spire’s asset base and earnings mix.
• Forward-Looking Statements: Investors should note the inherent uncertainties and risks outlined in Spire’s forward-looking statements, including regulatory, economic, and operational factors.

About Spire and Boardwalk Pipelines

Spire Inc. serves 1.7 million homes and businesses, operating utilities in Alabama, Mississippi, and Missouri. The company is committed to organic growth, infrastructure investment, and continuous improvement.

Boardwalk Pipelines, LP operates a network of interstate and intrastate pipelines and underground storage assets, connecting natural gas supplies with markets across the U.S., including the Gulf Coast, Midwest, and Southeast.

Disclaimer

This article contains forward-looking statements based on management’s current expectations and estimates. Actual results may differ materially due to various risks and uncertainties, including regulatory decisions, market conditions, and economic factors. Investors are advised to review Spire’s filings with the Securities and Exchange Commission for a full listing of risk factors and uncertainties. This article is for informational purposes only and does not constitute investment advice.

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