Spire (NYSE:SR) has entered into a definitive agreement to sell its natural gas storage assets located in Wyoming and Oklahoma to I Squared Capital for a total consideration of $650 million.
The transaction structure includes $600 million in cash at closing, with an additional $50 million deferred until fiscal year 2027.
This strategic divestiture is intended to provide critical funding for Spire's previously announced acquisition of Piedmont Tennessee, while simultaneously realigning the company's portfolio toward its core regulated utility operations.
The assets included in the sale, operating under Spire Storage, represent a significant portion of regional midstream infrastructure.
The Wyoming facility holds 55 billion cubic feet (Bcf) of working capacity, while the Oklahoma assets provide 17 Bcf of capacity.
By exiting the storage business, Spire aims to reduce its exposure to non-regulated market volatility and improve its overall corporate risk profile.
Management emphasized that the shift will allow the firm to concentrate capital and resources on its growing utility footprint, which offers more predictable long-term returns.
The transaction is expected to close in the second half of Spire's fiscal year 2026, pending customary closing conditions and regulatory clearance under the Hart-Scott-Rodino (HSR) Act.