Spire Sells Gas Storage to I Squared Capital for $650M

Spire has successfully divested its natural gas storage operations in Wyoming and Oklahoma to infrastructure investor I Squared Capital for a substantial sum of $650 million. This strategic move, effective June 30, 2026, allows Spire to concentrate its resources and strategic vision on its core regulated natural gas utility businesses across multiple states.

The transaction's financial structure includes an immediate cash infusion of $600 million, with an additional $50 million secured as a fixed, non-contingent deferred payment slated for receipt in Spire’s fiscal year 2027. These proceeds are earmarked to bolster Spire's financial capacity, notably supporting its recently finalized acquisition of the Piedmont Natural Gas Tennessee business, a deal that concluded on March 31, 2026. This divestiture marks a significant step in Spire's ongoing strategy to streamline operations and enhance its utility-centric focus.

The divested assets comprise two storage facilities in southwestern Wyoming, capable of providing up to 55 billion cubic feet (Bcf) of working gas capacity primarily serving Western U.S. markets. Additionally, an Oklahoma-based storage asset, connected to key pipelines like Southern Star Pipeline and Oklahoma Gas Transmission, adds up to 17 Bcf of working gas capacity for the Midcontinent and Midwestern U.S. These facilities will now operate under I Squared Capital's newly formed portfolio company, Bear River Midstream.

Bear River Midstream is positioned to become a significant player in natural gas storage across the Western and Mid-Continent regions, catering to a diverse clientele including utilities, pipeline operators, power generators, industrial consumers, and energy producers. This expansion by I Squared Capital aligns with the growing market demand for reliable energy storage solutions, a critical component in balancing supply and demand within the dynamic natural gas sector. The integration of Spire's experienced storage teams into Bear River Midstream is expected to ensure operational continuity and customer service excellence.

This strategic divestiture by Spire, which serves nearly 2 million homes and businesses through its utility operations in Alabama, Mississippi, Missouri, and Tennessee, underscores a broader trend among energy companies to optimize their asset portfolios. By shedding non-core infrastructure, Spire aims to strengthen its balance sheet and improve its ability to invest in its regulated utility infrastructure, ensuring long-term value creation for its stakeholders. The energy infrastructure sector continues to see significant investment, with private equity firms like I Squared Capital actively seeking opportunities in essential services and midstream assets.

I Squared Capital, a prominent global infrastructure investor managing over $60 billion in assets, brings extensive experience in managing and growing energy infrastructure businesses. Their portfolio spans over 100 companies across more than 70 countries, demonstrating a robust track record in executing complex transactions and driving operational improvements. The acquisition of Spire's storage assets represents a strategic expansion of their North American energy footprint.