Spire Inc. (NYSE:SR) and I Squared Capital, a leading global infrastructure investment manager, today announced they have entered into an agreement in which I Squared will acquire Spire's natural gas storage assets in Wyoming and Oklahoma ("Spire Storage").

 

Total consideration of the transaction is $650 million, consisting of $600 million in cash at closing and a $50 million fixed, non-contingent deferred payment to be received in Spire's fiscal 2027.

Proceeds from the transaction are expected to partially fund Spire's acquisition of the Piedmont Natural Gas Tennessee business, which closed on March 31, 2026, and completes its related financing plan.

"This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses," said Scott Doyle, president and chief executive officer of Spire. "Our gas storage assets have played an important role in serving customers across the Midwest, Rockies and Western U.S., and we appreciate the dedication of the employees who have contributed to their success. Under I Squared's ownership, these assets are well positioned to continue supporting system reliability and resiliency as natural gas remains critical to our nation's energy independence amid growing energy demand. The sale further enhances Spire's risk profile and supports our ability to drive sustainable, long-term growth for shareholders."

"These assets represent a high-quality, strategically located infrastructure platform that plays a critical role in supporting energy reliability across key U.S. markets," said Gautam Bhandari, Chief Investment Officer of I Squared Capital. "We see significant opportunity to build on Spire's strong foundation, leveraging the platform's contracted cash flows, strategic connectivity and expansion potential to meet growing demand for reliable and flexible energy solutions."

"Spire built great platforms in Wyoming and Oklahoma to meet evolving market demands for natural gas, and we're excited to join I Squared Capital as we move the business forward," said Scott Smith, president of Spire Storage. "We expect a seamless transition for our employees and customers as we continue to provide energy to the central and western U.S."

I Squared intends to support the next phase of growth of the platform, including enhancing operational capabilities and pursuing expansion opportunities to serve increasing demand for natural gas storage across the Western and Mid-Continent regions.

Spire Storage consists of Spire Storage West and Spire Storage Salt Plains. Spire Storage West, located in southwestern Wyoming, consists of two storage fields certificated to provide up to 55 Bcf of working gas capacity to customers primarily in the western United States. Spire Storage Salt Plains, located in north central Oklahoma, serves markets in the midcontinent and midwestern United States and is connected to Southern Star Pipeline and Oklahoma Gas Transmission. The facility is authorized to provide up to 17 Bcf of working gas capacity.

The transaction is expected to close in the second half of Spire's fiscal year 2026. The agreement is subject to customary closing conditions and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Greenhill, a Mizuho affiliate, acted as exclusive financial advisor to Spire. Vinson & Elkins LLP served as Spire's legal counsel. Kirkland & Ellis served as I Squared's legal advisor.

Spire's Guidance and Growth Outlook

Spire expects to provide revised 2026 guidance on its second quarter fiscal 2026 earnings call in May. The fiscal 2026 adjusted EPS guidance of $5.25–$5.45 affirmed in February reflects a full year of earnings from Spire Marketing and Spire's gas storage facilities, and excludes Spire Tennessee.

Spire continues to expect fiscal 2027 adjusted EPS guidance to be in the range of $5.40–$5.60. This reflects the expected sale of Spire Marketing and Spire Storage. It assumes a full year of earnings contributions from Spire Tennessee.

Spire reaffirmed its long-term adjusted earnings per share growth of 5-7% using the original fiscal 2027 adjusted EPS guidance midpoint of $5.75 as a base.