Spire Sells Natural Gas Storage Assets to I Squared for $650M
Event summary
- Spire Inc. agreed to sell its natural gas storage assets in Wyoming and Oklahoma to I Squared Capital for $650M, including $600M in cash at closing and a $50M deferred payment.
- Proceeds will partially fund Spire's acquisition of Piedmont Natural Gas Tennessee, which closed on March 31, 2026.
- The transaction is expected to close in the second half of Spire's fiscal year 2026, subject to regulatory approvals.
- Spire Storage consists of two facilities with a combined working gas capacity of 72 Bcf.
The big picture
Spire's sale of its natural gas storage assets to I Squared Capital aligns with its strategy to focus on regulated natural gas utility businesses. The $650M transaction reflects a broader trend of infrastructure investors acquiring strategically located energy assets to meet growing demand for reliable and flexible energy solutions. I Squared Capital, managing over $55B in assets, aims to enhance operational capabilities and pursue expansion opportunities in the Western and Mid-Continent regions.
What we're watching
- Strategic Focus
- Whether Spire's divestment of non-core assets will enhance its risk profile and drive long-term growth.
- Regulatory Approval
- The pace at which the transaction receives necessary regulatory approvals and closes.
- Earnings Impact
- How the sale will affect Spire's adjusted EPS guidance and financial performance in fiscal 2026 and 2027.