SR · Spire Inc.

Spire Inc. has entered into a definitive agreement to divest its natural gas storage assets for $650 million to Subterra Energy Holdings, LLC, an affiliate of I Squared Capital. This transaction represents a strategic shift for Spire, allowing the company to sharpen its focus on its core regulated natural gas utility businesses and improve its risk profile. The assets being sold include two underground natural gas storage facilities: Spire Storage West in Uinta County, Wyoming, with capacity for up to 55 Bcf of working gas, and Spire Storage Salt Plains in Grant County, Oklahoma, with capacity for up to 17 Bcf of working gas. The $650 million consideration consists of $600 million payable at closing and $50 million in deferred consideration due by September 2027, with the proceeds expected to partially fund Spire's recent acquisition of the Piedmont Natural Gas Tennessee business. Management emphasized that this sale enhances Spire's ability to drive sustainable, long-term growth for shareholders while positioning the storage assets for continued development under I Squared's ownership. The transaction is subject to customary closing conditions and regulatory approvals, including Hart-Scott-Rodino review, with completion anticipated in the second half of fiscal 2026. Spire reaffirmed its fiscal 2027 adjusted EPS guidance of $5.40–$5.60, which reflects the expected sale of both Spire Marketing and Spire Storage, and maintains its long-term adjusted EPS growth target of 5-7%.