Spire Sells Mississippi Gas Unit to Delta Utilities for $75 Million
Event summary
- Spire Inc. sells its Mississippi natural gas business to Delta Utilities for $75 million in cash.
- The transaction represents a 1.4x multiple of 2025 rate base.
- Spire Mississippi serves 18,000 customers with 745 miles of distribution pipelines.
- Expected to close in the first fiscal quarter of 2027, subject to regulatory approval.
The big picture
Spire's sale of its Mississippi unit reflects a strategic shift to focus on larger regulated utilities, aligning with industry trends of consolidation and portfolio optimization. The $75 million deal underscores the value of rate-base-backed assets in the current market, while Delta Utilities' acquisition expands its footprint in the Southeast. The transaction highlights the ongoing need for infrastructure modernization and the role of private equity in utility sector investments.
What we're watching
- Regulatory Approval
- Whether the Mississippi Public Service Commission will approve the transaction without delays or conditions.
- Capital Deployment
- How Spire will allocate the $75 million proceeds to fund infrastructure investments in its remaining markets.
- Operational Continuity
- The pace at which Delta Utilities integrates Spire Mississippi's operations and maintains service reliability.
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