Spire Closes Piedmont Natural Gas Acquisition, Expands in Tennessee

Spire Inc. SR recently revealed that it has acquired the Piedmont Natural Gas business in Tennessee from Duke Energy DUK for $2.48 billion, with the buyout completed on March 31, 2026.

How Will the Buyout Benefit SR Stock?

The acquisition establishes Spire Tennessee as the largest investor-owned natural gas utility in the state, giving the company a stronger foothold in one of the fastest-growing regions. Serving more than 200,000 customers across the Nashville metro area and nearby communities, the business also adds nearly 3,800 miles of transmission and distribution pipelines to Spire’s network.

This expansion strengthens Spire’s regulated utility footprint and complements its operations in Missouri, Alabama and Mississippi. With Tennessee being one of the fastest-growing regions in the United States, the company is well-positioned to benefit from rising energy demand and steady customer additions over time.

The buyout aligns with Spire’s strategy of investing in regulated assets that deliver predictable returns. Spire Tennessee is expected to account for about 20% of its capital investment plan through 2030, supporting infrastructure upgrades and system improvements. Spire expects to invest roughly $4.8 billion during 2026-2030.

Supported by a constructive regulatory environment, the acquisition is expected to help Spire achieve its long-term adjusted earnings per share (EPS) growth target of 5-7% while enhancing revenue visibility and overall growth potential.

Utility Companies Are Scaling Up Through Acquisitions

Utility companies are increasingly focusing on acquisitions to expand infrastructure, add customers and strengthen their generation and grid capabilities. As demand for stable energy rises, acquisitions support steady returns, enhance market position and drive long-term growth prospects.

Other utility companies that have recently undertaken acquisitions to expand their operations are discussed below.

In January 2026, Vistra Corp. VST inked a contract to acquire Cogentrix Energy for about $4 billion. The buyout includes 10 natural gas generation facilities totaling nearly 5,500 megawatts, significantly expanding Vistra’s generation portfolio and enhancing its operational flexibility.

VST has a long-term (three to five years) earnings growth rate of 18.89%. The Zacks Consensus Estimate for 2026 sales stands at $23.57 billion, which calls for an increase of 32.9%.

In January 2026, NRG Energy, Inc. NRG completed its acquisition of LS Power’s portfolio, which includes 18 natural gas-fired power plants totaling about 13 gigawatts, along with CPower’s virtual power platform. The buyout doubles its generation capacity and strengthens its ability to deliver reliable, flexible and cost-efficient energy solutions across its core markets.

The Zacks Consensus Estimate for NRG’s 2026 EPS is pegged at $8.83, indicating a year-over-year improvement of 9.4%. The Zacks Consensus Estimate for 2026 sales stands at $36.24 billion, which calls for a rise of 18%.

SR Stock Price Movement

In the past six months, shares of Spire have gained 10.5% compared with the industry’s growth of 9.2%.

Image Source: Zacks Investment Research

SR’s Zacks Rank

Spire currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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