#USA #St. Louis #Boardwalk Pipelines #Spire Inc #gas marketing

Spire Inc. Sells Gas Marketing Business to Boardwalk Pipelines

In a significant shift in its corporate strategy, Spire Inc. (NYSE: SR) has confirmed the sale of its gas marketing subsidiary, Spire Marketing Inc., to Boardwalk Pipelines, LP for a sum of $215 million. This deal, which is poised to close in the third fiscal quarter of 2026, is contingent on receiving regulatory approvals and satisfying customary closing requirements.

Strengthening Core Operations

Spire's decision to divest its gas marketing business is part of its broader strategy to sharpen its focus on regulated utility operations. Scott Doyle, the President and CEO of Spire, emphasized in a statement, "The sale simplifies our business mix, enhances our risk profile, and strengthens our long-term earnings visibility." By divesting from the gas marketing sector, Spire aims to refocus on its core competencies in natural gas utilities, improving its overall risk management and growth prospects going forward.

Funding Future Growth

The funds acquired from this transaction are intended to be utilized for various strategic initiatives, including partially financing the upcoming acquisition of the Piedmont Natural Gas Tennessee business, along with addressing general corporate needs. As Spire navigates through this transformation, it is also exploring the potential sale of its natural gas storage facilities, with more updates expected in the upcoming earnings call in May.

Integrating New Talent

Boardwalk Pipelines is set to benefit significantly from this acquisition, as it seeks to enhance its capabilities in the natural gas market. Scott Hallam, the CEO of Boardwalk, remarked, "By incorporating a talented team from Spire Marketing, we plan to strengthen our asset optimization efforts and better serve our customers’ complex energy requirements." This collaboration will leverage Spire Marketing’s management expertise to drive further growth and operational efficiency.

Looking Ahead

The gas marketing division has held an essential role in Spire's historical success and operational framework. As detailed by Pat Strange, President of Spire Marketing, the transition to Boardwalk is expected to be smooth for both employees and clients. He noted, "We are excited to join Boardwalk, which has a positive industry presence and reputation, along with a vision that recognizes the necessity for marketing and trading capabilities."

Despite the divestment, Spire's commitment to maintaining a robust growth trajectory remains intact. The company has reaffirmed its long-term adjusted earnings per share (EPS) growth target of 5-7% underlining its expectations for stability and resilience amidst changes in its business structure. For fiscal year 2026, Spire’s adjusted EPS guidance remains unchanged at a range of $5.25 to $5.45, taking into account the expected financial impact of the gas marketing sale and ongoing operational adjustments.

About Spire and Boardwalk

Spire Inc. serves approximately 1.7 million homes and businesses across Alabama, Mississippi, and Missouri, positioning itself as one of the nation’s largest publicly traded natural gas firms. It is dedicated to enhancing lives through energy solutions, focusing on organic growth and infrastructure investment. Conversely, Boardwalk Pipelines delivers reliable energy through a comprehensive network of pipelines and underground storage, ensuring connectivity and value creation within the competitive energy landscape across the United States.

In summary, this transaction marks a pivotal moment for both Spire and Boardwalk Pipelines, reflecting strategic decisions that prioritize core operations while anticipating future growth in the changing energy sector. As the industry evolves, both companies position themselves for sustained success through their respective expansions and focus areas.