Duke Energy has announced the sale of its Piedmont Natural Gas Tennessee operations to Spire Inc. for $2.48 billion in cash. The transaction includes nearly 3,800 miles of natural gas distribution and transmission pipelines, a liquefied natural gas facility, and service to approximately 205,000 customers in the Greater Nashville area.

The sale represents a 1.8x multiple of Piedmont's 2024 year-end rate base and a 24x multiple of 2024 earnings. Of the proceeds, $800 million will be used to pay down debt at Piedmont Natural Gas, while the remaining $1.5 billion will support Duke Energy's $83 billion five-year capital investment plan focused on modernizing energy infrastructure.

Spire, one of the largest publicly traded natural gas utilities in the U.S., will acquire the customer base and infrastructure while also absorbing the Duke Energy employees who currently support the Tennessee operations to ensure business continuity.

The deal expands Spire's total utility customer base to nearly 2 million across multiple states and aligns with its strategy to grow its regulated gas utility operations.

The transaction remains subject to customary closing conditions, including regulatory approval from the Tennessee Public Utility Commission and the expiration or termination of the required waiting period under the Hart-Scott-Rodino Act. Closing is expected in the first quarter of 2026.

J.P. Morgan Securities LLC and RBC Capital Markets LLC acted as financial advisors to Duke Energy, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom LLP, McGuireWoods, and Holland & Knight.

Source: worldpipelines.com