Spire and I Squared announce agreement for sale of natural gas storage assets for US$650 million

Total consideration of the transaction is US$650 million, consisting of US$600 million in cash at closing and a US$50 million fixed, non-contingent deferred payment to be received in Spire's fiscal 2027.

Proceeds from the transaction are expected to partially fund Spire's acquisition of the Piedmont Natural Gas Tennessee business, which closed on 31 March 2026, and completes its related financing plan.

"This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses," said Scott Doyle, President and CEO of Spire. "Our gas storage assets have played an important role in serving customers across the Midwest, Rockies, and Western US, and we appreciate the dedication of the employees who have contributed to their success. Under I Squared's ownership, these assets are well positioned to continue supporting system reliability and resiliency as natural gas remains critical to our nation's energy independence amid growing energy demand. The sale further enhances Spire's risk profile and supports our ability to drive sustainable, long-term growth for shareholders."

"These assets represent a high-quality, strategically located infrastructure platform that plays a critical role in supporting energy reliability across key US markets," said Gautam Bhandari, Chief Investment Officer of I Squared Capital. "We see significant opportunity to build on Spire's strong foundation, leveraging the platform's contracted cash flows, strategic connectivity, and expansion potential to meet growing demand for reliable and flexible energy solutions."

"Spire built great platforms in Wyoming and Oklahoma to meet evolving market demands for natural gas, and we are excited to join I Squared Capital as we move the business forward," said Scott Smith, President of Spire Storage. "We expect a seamless transition for our employees and customers as we continue to provide energy to the central and western US."

I Squared intends to support the next phase of growth of the platform, including enhancing operational capabilities and pursuing expansion opportunities to serve increasing demand for natural gas storage across the Western and Mid-Continent regions.

Spire Storage consists of Spire Storage West and Spire Storage Salt Plains. Spire Storage West, located in southwestern Wyoming, consists of two storage fields certificated to provide up to 55 billion ft³ of working gas capacity to customers primarily in the western US. Spire Storage Salt Plains, located in north central Oklahoma, serves markets in the midcontinent and midwestern US and is connected to Southern Star Pipeline and Oklahoma Gas Transmission. The facility is authorised to provide up to 17 Bcf ft³ of working gas capacity.

The transaction is expected to close in the second half of Spire's fiscal year 2026. The agreement is subject to customary closing conditions and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Greenhill, a Mizuho affiliate, acted as exclusive financial advisor to Spire. Vinson & Elkins LLP served as Spire's legal counsel. Kirkland & Ellis served as I Squared's legal advisor.

Read the article online at: https://www.tanksterminals.com/storage-tanks/20042026/spire-and-i-squared-announce-agreement-for-sale-of-natural-gas-storage-assets-for-us650-million/