Spire completes sale of natural gas storage businesses to I Squared Capital for $650 million

Spire Inc. has finalized the sale of its natural gas storage businesses in Wyoming and Oklahoma, collectively known as Spire Storage, to I Squared Capital for $650 million. The transaction, effective June 30, 2026, comprises $600 million in cash at closing and a $50 million deferred payment scheduled for Spire's fiscal year 2027. This divestiture is part of Spire's strategic initiative to concentrate on its regulated utility operations, following its recent acquisition of Piedmont Natural Gas Tennessee, which was completed on March 31, 2026.

The Spire Storage assets include two storage fields in southwestern Wyoming and one in north-central Oklahoma. The Wyoming facilities are certified to provide up to 55 billion cubic feet (Bcf) of working gas capacity, primarily serving customers in the western United States. The Oklahoma facility, connected to Southern Star Pipeline and Oklahoma Gas Transmission, is authorized for an additional 17 Bcf of working gas capacity, targeting markets in the midcontinent and midwestern regions. With this sale, Spire aims to streamline its operations and enhance its financial position, allowing for a more focused approach to its core business.

I Squared Capital, a prominent independent global infrastructure investor managing over $60 billion in assets, will integrate Spire Storage into its portfolio company, Bear River Midstream LLC. This acquisition aligns with I Squared's strategy to expand its midstream energy capabilities, particularly in the natural gas storage sector. Bear River Midstream is expected to leverage the existing operational expertise from Spire Storage to enhance its service offerings and meet the growing market demand for energy storage solutions across the Western and Mid-Continent regions.

The transaction underscores the ongoing consolidation trend within the energy sector, particularly in the midstream space, where companies are increasingly seeking to optimize their asset portfolios to adapt to changing market dynamics. As energy demand continues to evolve, the focus on operational efficiency and strategic asset management will be critical for companies navigating this competitive landscape. The sale of Spire Storage not only positions Spire for future growth in its regulated utility business but also provides I Squared Capital with an opportunity to capitalize on the increasing need for reliable energy storage solutions.

Overall, this transaction reflects broader trends in the energy market, where companies are re-evaluating their asset allocations to focus on core competencies and respond to evolving consumer needs. The successful completion of this deal may signal further M&A activity in the sector as firms look to enhance their operational capabilities and market presence in an increasingly competitive environment.