#USA #Natural Gas #St. Louis #Spire Inc #Delta Utilities

Spire Inc. Sells Mississippi Natural Gas Business to Delta Utilities for $75 Million

Spire Inc. (NYSE: SR), a leading natural gas provider in the U.S., has recently finalized an agreement to sell its subsidiary, Spire Mississippi, to Delta Utilities for a cash transaction amounting to $75 million. This strategic move allows Spire to refine its distribution portfolio, concentrating on larger regulated gas utilities across various states including Alabama, Missouri, and Tennessee.

Details of the Transaction

The sale is expected to close in the first fiscal quarter of 2027, pending standard closing conditions such as regulatory approval from the Mississippi Public Service Commission. Spire Mississippi, which operates approximately 745 miles of distribution pipelines, currently serves around 18,000 customers primarily located in south-central Mississippi, notably in the Hattiesburg area.

Scott Doyle, President and CEO of Spire, emphasized that this decision reflects their commitment to enhancing their focus on larger regulated utilities. "This transaction sharpens our focus on our larger regulated gas utilities where we will continue to prioritize modernizing our infrastructure while supporting customer affordability," Doyle stated. He expressed appreciation for the Spire Mississippi team, acknowledging their significant contributions over the years.

As part of the transition, employees directly involved with Spire Mississippi are anticipated to migrate to Delta Utilities, ensuring a seamless transition and continued service to the existing customer base.

Delta Utilities’ Vision

Delta Utilities, backed by Bernhard Capital Partners, ranks among the nation’s top natural gas suppliers, serving about 600,000 customers across Louisiana and Mississippi. Tim Poché, CEO of Delta Utilities, remarked on the agreement, stating, "This agreement reflects our long-term commitment to Mississippi and the customers and communities we serve. By bringing these geographically aligned systems together, we can deploy capital more efficiently, strengthen service reliability, and further position the company to meet customer needs today and over the long term."

This acquisition not only enhances Delta Utilities' operational capacity but also aligns with its mission to deliver clean, safe, and affordable natural gas while maintaining a focus on service quality and safety.

Impact on Stakeholders

Spire Inc. plans to utilize the proceeds from this sale to bolster infrastructure investments across its other regulated gas utilities. This strategic allocation is intended to enhance customer service and boost long-term shareholder value. The transition signifies a pivotal moment for Spire as it gears up to modernize its infrastructure while also maintaining customer affordability in a competitive market.

By divesting its Mississippi operations, Spire can concentrate its resources and management efforts on maintaining the quality and reliability of its larger service areas. The restructuring aims to ensure that existing customers continue to receive efficient service while gearing up for further expansions that can support the growing demand for natural gas.

Overall, both Spire Inc. and Delta Utilities stand to benefit from this strategic transaction, positioning themselves for future growth and enhanced operational efficiency in the ever-evolving natural gas market. Investors and stakeholders within both companies will be watching closely as the deal unfolds and its impacts on operational focus become clearer.

For additional information about Spire Inc. and Delta Utilities, you can visit their respective websites at SpireEnergy.com and www.deltautilities.com.