-- Spire (SR) said Wednesday it will sell its natural gas storage assets in Wyoming and Oklahoma to I Squared Capital for $650 million.
The transaction includes $600 million in cash at closing along with a fixed $50 million fixed, non-contingent deferred payment scheduled for receipt in Spire's fiscal year 2027.
Spire said the proceeds will partly fund its acquisition of Piedmont Natural Gas Tennessee, which closed Mar. 31.
I Squared said it aims to grow the platform by improving operations and pursuing expansion as demand for natural gas storage rises across western and mid-continent US regions.
Spire Storage comprises two assets, including Spire Storage West in southwestern Wyoming, which operates two fields with capacity of up to 55 billion cubic feet of working gas.
Spire Storage Salt Plains, located in north-central Oklahoma, provides up to 17 Bcf capacity and connects to major pipeline systems including Southern Star Pipeline and Oklahoma Gas Transmission.
Spire Chief Executive Officer Scott Doyle said the sale aligns with its strategy to focus on regulated utility operations, while improving risk profile and supporting long-term growth as natural gas demand remains strong.
The deal is expected to close in the second half of fiscal 2026, subject to regulatory approvals and standard closing conditions, including antitrust clearance requirements.
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