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Spire to Sell Gas Storage Assets for $650M to I Squared Capital
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Key Takeaways
Spire will divest Wyoming and Oklahoma storage assets to I Squared Capital for $650M.
SR is shifting focus to regulated gas utilities for stable cash flow and earnings growth.
Proceeds will help fund Piedmont Tennessee buy, adding 0.2M customers and pipeline assets.
Spire Inc. (SR - Free Report) recently announced that it has signed an agreement to divest its natural gas storage assets in Wyoming and Oklahoma (“Spire Storage”) to I Squared Capital for $650 million. The deal is expected to be closed in the second half of fiscal 2026.
Spire Storage includes two units: Spire Storage West, which provides 55 billion cubic feet (Bcf) of storage capacity, and Spire Storage Salt Plains, which offers 17 Bcf of storage capacity.
After an initial spike in share prices following the April 15, 2026 announcement, shares of Spire fell 0.55% to $91.54 yesterday.
Spire to Focus on Regulated Natural Gas Utility Businesses
Spire wants to concentrate on its natural gas utility businesses, which will ensure predictable cash flows. These businesses also support energy transition, as natural gas is widely used for its clean-burning nature. The shift allows the company to generate stable earnings through its investment in natural gas infrastructure.
This current deal and the agreement signed last month to sell its gas marketing business to Boardwalk Pipelines, LP, for $215 million will assist Spire in focusing more on its core regulated natural gas utility operations.
Spire’s Sale Proceeds to Fund Acquisition
Spire is expected to use the proceeds from both deals to partly fund the acquisition of the Piedmont Natural Gas Tennessee business. This acquisition plays a significant role in expanding the company’s regulated utility operation. The acquisition adds more than 0.2 million customers, includes roughly 3,800 miles of pipeline infrastructure and supports 5-7% long-term adjusted EPS growth.
Spire’s Guidance
The company projects its fiscal 2026 adjusted earnings to be in the range of $5.25-$5.45 per share. SR has lowered its adjusted earnings guidance for fiscal 2027 to $5.40-$5.60 from the prior $5.65-$5.85 range. The Zacks Consensus Estimate for SR’s fiscal 2026 and 2027 EPS is pinned at $5.16 and $5.59, indicating year-over-year growth of 16.22% and 8.21%, respectively.
The earnings guidance highlights the effect of asset sales and full-year contributions from Spire Tennessee operations. Spire targets long-term adjusted EPS growth of 5-7% based on the original fiscal 2027 outlook.
Price Movement of SR
Over the past three months, shares of the company have gained 7.4% compared with the industry’s 7.8% growth.
Some better-ranked stocks to consider from the same industry are Atmos Energy Corp. (ATO - Free Report) , ONE Gas, Inc. (OGS - Free Report) and Southwest Gas (SWX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Atmos Energy's fiscal 2026 EPS is pegged at $8.26, suggesting year-over-year growth of 10.72%. ATO has a dividend yield of 2.88%.
The Zacks Consensus Estimate for ONE Gas' 2026 EPS is pegged at $4.74, suggesting year-over-year growth of 5.80%. OGS has a dividend yield of 3.07%.
The Zacks Consensus Estimate for Southwest Gas' 2026 EPS is pegged at $4.28, suggesting year-over-year growth of 17.26%. SWX has a dividend yield of 2.76%.
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Spire to Sell Gas Storage Assets for $650M to I Squared Capital
Key Takeaways
Spire Inc. (SR - Free Report) recently announced that it has signed an agreement to divest its natural gas storage assets in Wyoming and Oklahoma (“Spire Storage”) to I Squared Capital for $650 million. The deal is expected to be closed in the second half of fiscal 2026.
Spire Storage includes two units: Spire Storage West, which provides 55 billion cubic feet (Bcf) of storage capacity, and Spire Storage Salt Plains, which offers 17 Bcf of storage capacity.
After an initial spike in share prices following the April 15, 2026 announcement, shares of Spire fell 0.55% to $91.54 yesterday.
Spire to Focus on Regulated Natural Gas Utility Businesses
Spire wants to concentrate on its natural gas utility businesses, which will ensure predictable cash flows. These businesses also support energy transition, as natural gas is widely used for its clean-burning nature. The shift allows the company to generate stable earnings through its investment in natural gas infrastructure.
This current deal and the agreement signed last month to sell its gas marketing business to Boardwalk Pipelines, LP, for $215 million will assist Spire in focusing more on its core regulated natural gas utility operations.
Spire’s Sale Proceeds to Fund Acquisition
Spire is expected to use the proceeds from both deals to partly fund the acquisition of the Piedmont Natural Gas Tennessee business. This acquisition plays a significant role in expanding the company’s regulated utility operation. The acquisition adds more than 0.2 million customers, includes roughly 3,800 miles of pipeline infrastructure and supports 5-7% long-term adjusted EPS growth.
Spire’s Guidance
The company projects its fiscal 2026 adjusted earnings to be in the range of $5.25-$5.45 per share. SR has lowered its adjusted earnings guidance for fiscal 2027 to $5.40-$5.60 from the prior $5.65-$5.85 range. The Zacks Consensus Estimate for SR’s fiscal 2026 and 2027 EPS is pinned at $5.16 and $5.59, indicating year-over-year growth of 16.22% and 8.21%, respectively.
The earnings guidance highlights the effect of asset sales and full-year contributions from Spire Tennessee operations. Spire targets long-term adjusted EPS growth of 5-7% based on the original fiscal 2027 outlook.
Price Movement of SR
Over the past three months, shares of the company have gained 7.4% compared with the industry’s 7.8% growth.
Image Source: Zacks Investment Research
Spire’s Zacks Rank
Spire currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks to consider from the same industry are Atmos Energy Corp. (ATO - Free Report) , ONE Gas, Inc. (OGS - Free Report) and Southwest Gas (SWX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Atmos Energy's fiscal 2026 EPS is pegged at $8.26, suggesting year-over-year growth of 10.72%. ATO has a dividend yield of 2.88%.
The Zacks Consensus Estimate for ONE Gas' 2026 EPS is pegged at $4.74, suggesting year-over-year growth of 5.80%. OGS has a dividend yield of 3.07%.
The Zacks Consensus Estimate for Southwest Gas' 2026 EPS is pegged at $4.28, suggesting year-over-year growth of 17.26%. SWX has a dividend yield of 2.76%.