Traders should view this as a positive strategic move that simplifies Spire's business model and strengthens its balance sheet. The $650 million in proceeds provide immediate liquidity to fund the Piedmont acquisition and reduce leverage. The reaffirmed 5-7% long-term EPS growth guidance suggests management sees this divestiture as value-enhancing. Monitor for closing in H2 FY2026 and potential upward revisions to 2027 EPS guidance as the company integrates the Tennessee acquisition.
Price Chart
Executive Summary
Spire Inc. (SRJN) has agreed to sell its natural gas storage assets in Wyoming and Oklahoma to Subterra Energy Holdings, an affiliate of I Squared Capital, for $650 million. The deal includes $600 million in cash at closing and a $50 million deferred payment due by September 2027. This transaction allows Spire to focus on its core regulated utility business and fund the recent acquisition of Piedmont Natural Gas's Tennessee operations.
Key Financial Metrics
Key Facts
- Spire Inc. is selling its natural gas storage assets (Spire Storage West and Spire Storage Salt Plains) to Subterra Energy Holdings, an affiliate of I Squared Capital.
- Total transaction value is $650 million, consisting of $600 million in cash at closing and a $50 million deferred payment due by September 30, 2027.
- The sale proceeds will partially fund Spire's acquisition of the Piedmont Natural Gas Tennessee business, 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 including HSR review.
- Spire reaffirmed its long-term adjusted EPS growth guidance of 5-7%, using the original fiscal 2027 midpoint of $5.75 as a base.
Financial Impact
$650 million in proceeds from asset sale, with $600 million received at closing and $50 million deferred.
Risk Factors
- Regulatory approval delays, particularly from HSR review, could push the closing into 2027.
- The $50 million deferred payment creates counterparty risk that should be monitored.
- Loss of storage business revenue could pressure near-term earnings if not offset by the Tennessee acquisition.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-155936 |
| Document: sr-20260414.htm | 0001193125-26-155936 |
| Document: sr-ex99_1.htm | 0001193125-26-155936 |
| Document: 0001193125-26-155936-index-headers.html | 0001193125-26-155936 |
| Document: 0001193125-26-155936-index.html | 0001193125-26-155936 |
| Document: 0001193125-26-155936.txt | 0001193125-26-155936 |
Track record builds as more directional reports settle.
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| Type | Now | ||||
|---|---|---|---|---|---|
May 6, 2026 24w ago | 8-K | $25.00 $23.26 | ▼ −6.96% | ▼ −9.02% | $20.31 (−18.76%) |
Apr 30, 2026 25w ago | 8-K | $24.26 $23.37 | ▼ −3.66% | ▼ −6.73% | $20.31 (−16.28%) |
Apr 22, 2026 26w ago | 8-K | $24.78 $23.94 | ▼ −3.39% | ▼ −8.17% | $20.31 (−18.04%) |
Apr 15, 2026 27w ago | 8-K | $25.01 $24.01 | ▼ −4.00% | ▼ −12.14% | $20.31 (−18.79%) |
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