On March 30, 2026, Spire Inc. (NYSE: SR) made headlines with its announcement regarding the sale of its gas marketing subsidiary, Spire Marketing Inc., to Boardwalk Pipelines, LP for a substantial $215 million in cash. This strategic move is part of Spire's ongoing efforts to streamline its operations and focus on its core regulated utility business. The transaction is anticipated to close in the third fiscal quarter of 2026, pending regulatory approvals and customary closing conditions.

2. Purpose of the Sale

The proceeds from this sale are earmarked for two primary objectives: partially funding the acquisition of Piedmont Natural Gas's Tennessee business and supporting general corporate purposes. In conjunction with this sale, Spire is also considering the divestiture of its natural gas storage facilities as a means to further finance the acquisition, with an update expected by May 2026 during the company's second quarter earnings call.

Scott Doyle, Spire's president and CEO, emphasized the sale's strategic importance: "As we continue to sharpen our focus on our core regulated utility operations, we have entered into an agreement to sell our gas marketing business. The sale simplifies our business mix, improves our risk profile, and enhances long-term earnings visibility."

3. Boardwalk Pipelines' Perspective

Boardwalk Pipelines, led by CEO Scott Hallam, views this acquisition as a significant step toward expanding its footprint in the natural gas value chain. Hallam expressed confidence in the experienced team at Spire Marketing, stating, "By bringing on an experienced team with deep market expertise and established commercial capabilities, we seek to strengthen our asset optimization and more effectively serve our customers' increasingly complex energy needs."

Pat Strange, president of Spire Marketing, echoed this sentiment, highlighting the positive reputation and vision of Boardwalk Pipelines. He assured a seamless transition for employees and clients, reinforcing the commitment to progressing the business under new ownership.

4. Business Implications

Spire Marketing specializes in the marketing of natural gas and related services across the United States, focusing on procurement and delivery to a diverse customer base. Its clients include commercial and industrial customers, as well as producers, pipelines, power generators, municipalities, storage operators, and utilities. The sale is expected to enhance Spire's long-term financial stability as it divests from non-core operations.

5. Financial Guidance Update

While Spire is not updating its fiscal 2026 guidance currently, it has reaffirmed its adjusted earnings per share (EPS) guidance for the year at a range of $5.25 to $5.45, which includes a full year’s earnings from Spire Marketing and its gas storage facilities. However, the adjusted EPS guidance for fiscal 2027 has been revised downward to a range of $5.40 to $5.60, compared to the previous estimate of $5.65 to $5.85. This adjustment reflects the expected impact of the sale of Spire Marketing.

Spire also reaffirmed its long-term EPS growth target of 5-7%, maintaining the original fiscal 2027 adjusted EPS guidance midpoint of $5.75 as a base.

6. Regulatory Considerations

As with many corporate transactions, the sale of Spire Marketing is subject to regulatory scrutiny, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act. Both the sale and the acquisition of Piedmont Natural Gas's Tennessee operations are slated to close after receiving the necessary approvals.

7. Conclusion

Spire Inc.'s decision to sell its gas marketing business to Boardwalk Pipelines marks a pivotal moment in its strategy to concentrate on regulated utility operations. The $215 million transaction not only simplifies Spire's business model but also seeks to enhance its risk profile and long-term earnings potential. As the company navigates this transition, stakeholders will be keenly watching for further updates, especially during the upcoming earnings call in May.

Original press release