Spire and I Squared Capital Finalize $650 Million Natural Gas Storage Agreement

Spire Inc. (NYSE: SR), a prominent natural gas utility, has officially announced its agreement to sell its natural gas storage assets to I Squared Capital, a global infrastructure investment manager, for a substantial $650 million. This agreement, confirmed on April 15, 2026, marks a significant shift in Spire's operational focus and is anticipated to position both companies favorably for future growth.

Transaction Details

The financial arrangement includes an upfront cash payment of $600 million, supplemented by a non-contingent deferred payment of $50 million to be received in Spire's fiscal year 2027. The proceeds from this sale are expected to partially finance Spire's recent acquisition of the Piedmont Natural Gas business in Tennessee, which was finalized on March 31, 2026.

Scott Doyle, Spire's President and CEO, emphasized the importance of this deal, stating, "This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses. Our gas storage assets have played an important role in serving customers across the Midwest, Rockies, and Western U.S."

Future Prospects Under New Ownership

I Squared Capital views this acquisition as a valuable addition to their portfolio, with Gautam Bhandari, their Chief Investment Officer, noting the strong strategic location of these assets. He believes that there is significant potential for enhanced operational capabilities and expansion opportunities to better serve the increasing demand for natural gas storage across the Western and Mid-Continent areas.

The Spire Storage assets include Spire Storage West and Spire Storage Salt Plains. Spire Storage West, located in Wyoming, boasts the capability to provide up to 55 Bcf of working gas to customers in the western United States. Meanwhile, Spire Storage Salt Plains in Oklahoma serves markets in both the midcontinent and midwestern regions, with authorization for a capacity of up to 17 Bcf.

Operational Transition

Scott Smith, President of Spire Storage, shared optimism about the transition, asserting, "We expect a seamless transition for our employees and customers as we continue to provide energy to the central and western U.S." This transition is critical as both companies aim to integrate the assets into I Squared's existing infrastructure platform, which is set to enhance energy reliability across key U.S. markets.

Regulatory Approvals and Future Outlook

The agreement is slated to close in the latter half of Spire's fiscal year 2026, pending customary closing conditions and the necessary regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act. Concurrently, Spire plans to provide updated guidance on their earnings expectations for fiscal 2026 during their upcoming second quarter earnings call. The adjusted earnings per share for fiscal 2026 is anticipated to range between $5.25 and $5.45, excluding contributions from Spire Tennessee as they navigate through these significant organizational changes.

This strategic move is not just a sale; it is part of Spire's vision for sustainable long-term growth fueled by a focus on their core businesses. The management's emphasis on evolving market demands, alongside I Squared's robust investment strategies, positions both enterprises to meet the growing energy needs of the nation effectively. As the sale unfolds, the future of natural gas service delivery remains promising under this new alignment of resources and expertise.

About Spire Inc.

Spire Inc. is a major player in the natural gas industry, providing essential services to nearly 2 million homes and businesses across the U.S. Their commitment to improving the energy landscape through organic growth and infrastructure investments remains firm as they transition and adapt.

About I Squared Capital

I Squared Capital is recognized as a leading independent global infrastructure investment firm, managing over $55 billion in assets across various sectors, including energy, transportation, and logistics. Their extensive portfolio underscores their commitment to delivering essential services and enhancing infrastructure worldwide.