DUK · Duke Energy Corporation

Duke Energy's wholly-owned subsidiary Piedmont Natural Gas completed the divestiture of its Tennessee operations to Spire Tennessee Inc., successor to Spire Inc., marking the execution of a strategic asset sale first announced in July 2025. The transaction delivered $2.48 billion in cash proceeds, a material liquidity event that strengthens Piedmont's balance sheet by eliminating $1.973 billion in net assets associated with the divested business while recognizing a substantial gain. Pro forma financials illustrate the impact: for the year ended December 31, 2025, operating revenues decline to $1.911 billion from $2.237 billion historical due to removal of $326 million Tennessee revenues, but operating income surges to $1.253 billion driven by a $693 million gain on sale, lifting pro forma net income to $887 million. Balance sheet effects include $1.333 billion net cash inflow after debt repayment and tax provisions, reducing total assets to $11.830 billion and boosting retained earnings by $522 million. Management plans to deploy $800 million to retire Piedmont debt, preserving capital structure, with the balance supporting Duke Energy's $103 billion five-year regulated investment plan amid growing energy demands. The sale transfers 3,800 miles of pipeline infrastructure serving 200,000 customers and key personnel to Spire, ensuring operational continuity without qualifying as a discontinued operation or strategic shift. This positions Duke Energy to optimize its portfolio, reduce leverage, and prioritize electric and remaining gas utility growth while maintaining service quality.