Spire to Acquire Duke Energy's Tennessee Gas Business for $2.48B, Enhancing Operational Footprint

Spire Inc. (SR) has agreed to acquire Duke Energy's Piedmont Natural Gas Tennessee local distribution business for $2.48 billion in cash, enhancing its operational footprint and adding approximately 3,800 miles of pipeline and a liquefied natural gas facility. The deal is expected to close in the first quarter of 2026, pending regulatory approvals.

Title: Spire Inc. Acquires Duke Energy's Piedmont Natural Gas Tennessee Business for $2.48 Billion

Spire Inc. (SR) has agreed to acquire Duke Energy's Piedmont Natural Gas Tennessee local distribution business for $2.48 billion in cash, enhancing its operational footprint and adding approximately 3,800 miles of pipeline and a liquefied natural gas facility. The deal is expected to close in the first quarter of 2026, pending regulatory approvals.

The acquisition includes Piedmont Natural Gas's Tennessee operations, which serve approximately 205,000 customers through nearly 3,800 miles of distribution and transmission pipelines. Duke Energy expects the sale to help fund its $83 billion five-year capital plan, which focuses on energy modernization investments to deliver value for customers and shareholders. The primary operations will remain in the Greater Nashville area, and Duke Energy employees will transition to Spire to maintain business continuity.

Spire Inc., one of the largest publicly traded natural gas companies in the country, believes this acquisition is a natural fit, allowing it to expand its core utility business and increase its utility customer base to nearly two million homes and businesses. The company is committed to building on the foundation of exceptional customer service and community engagement established by Piedmont Natural Gas.

The sale agreement represents a 1.8x multiple of 2024 year-end rate base and a 24x multiple of 2024 earnings, a significant premium to Duke Energy’s common stock. Approximately $800 million of the proceeds will be used to offset debt at Piedmont Natural Gas to maintain its capital structure, while the remaining $1.5 billion will help fund Duke Energy’s capital plan.

This transaction is subject to customary closing conditions, including regulatory approval by the Tennessee Public Utility Commission and the expiration or termination of the waiting period under the Hart-Scott-Rodino Act. JP Morgan Securities LLC and RBC Capital Markets LLC served as Duke Energy’s financial advisors, while Skadden, Arps, Slate, Meagher & Flom LLP acted as its transactional legal advisor.

References:
[1] https://www.axios.com/local/nashville/2025/07/29/duke-energy-sells-piedmont-natural-gas-for-248-billion
[2] https://news.duke-energy.com/releases/duke-energy-announces-sale-of-its-tennessee-piedmont-natural-gas-business-to-spire-for-2-48-billion