March 30, 2026

Big Changes at Spire Inc.: Sale of Gas Marketing Business

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News Summary

Spire Inc. has announced the sale of its gas marketing arm, Spire Marketing Inc., to Boardwalk Pipelines for $215 million. This strategic move will allow Spire to focus more on its core utility operations while gathering funds to support the acquisition of Piedmont Natural Gas. The deal is set to close in the third fiscal quarter of 2026, pending regulatory approvals.

Big Changes at Spire Inc.: Sale of Gas Marketing Business to Boardwalk Pipelines

In a move that’s expected to reshape the future of Spire Inc., the company has announced it will be selling its gas marketing arm, Spire Marketing Inc., to Boardwalk Pipelines, LP for a cool $215 million in cash. This decision marks a significant shift in the company’s strategy and is paving the way for more focused operational efficiency.

The Deal Details

The transaction is anticipated to close during the third fiscal quarter of 2026 but is still subject to certain regulatory approvals and customary closing conditions. With this sale, Spire is gathering funds to help support its acquisition of the Piedmont Natural Gas Tennessee business, while also generalizing its cash flow for other corporate needs.

Interestingly, Spire is looking at selling some of its natural gas storage facilities to further bolster financing for the Piedmont purchase and plans to provide more updates on this front during the second-quarter fiscal 2026 earnings call, which is expected in May.

A Strategic Shift

Scott Doyle, the president, and CEO of Spire, shared that this sale will enable the company to achieve a more targeted focus on its core regulated utility operations. “This is about simplifying our business mix and improving our risk profiles,” he noted. It seems like a wise move as companies continuously strive to adapt to the ever-evolving energy landscape.

A Fresh Start for Spire Marketing

On the other hand, Pat Strange, who serves as president of Spire Marketing, expressed excitement about the transition to Boardwalk Pipelines. He highlighted Boardwalk’s strong reputation and their vision aimed at enhancing marketing and trading capabilities. Spire Marketing primarily focuses on marketing natural gas and related services across the central and southern regions of the United States, catering to a diverse clientele that includes various commercial and industrial customers, utilities, municipalities, and power generators.

Financial Outlook

As for the financial side, Spire has maintained its adjusted earnings per share guidance for fiscal 2026 at $5.25–$5.45. However, they did revise their adjusted EPS guidance for fiscal 2027, lowering it slightly to $5.40–$5.60 from the previous forecast of $5.65–$5.85. These changes reflect Spire’s anticipated sale of Spire Marketing along with the expected sale of its gas storage facilities.

The acquisition of Piedmont Natural Gas is also slated to close in the first calendar quarter of 2026. This move is compliant with the Hart-Scott-Rodino Antitrust Improvements Act, ensuring all necessary waiting periods are adhered to.

The Bigger Picture

Spire serves a whopping 1.7 million homes and businesses across Alabama, Mississippi, and Missouri through its gas utilities. The company has set a long-term adjusted earnings per share growth target of 5-7%, aiming for a midpoint of $5.75 based on its fiscal 2027 guidance.

In the wake of this announcement, shares of Spire landed at about $90.68. The company also recently released its first-quarter fiscal 2026 results which revealed an adjusted EPS of $1.77—surpassing the forecast of $1.64. However, total revenue didn’t quite hit the mark, accumulating to $762.2 million as opposed to the projected $772.58 million.

Funding for Future Endeavors

To further support its evolving strategies, Spire has issued $400 million in senior notes at an interest rate of 4.600%, set to mature in 2031. This move is aimed at refinancing existing notes and possibly funding the acquisition of Piedmont Natural Gas.

All in all, these transactions are viewed as a strategic approach for Spire as the company aims to optimize its portfolio and improve operational focus. It will be fascinating to see how these changes shape the future for Spire and its stakeholders!

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