Duke Energy sells Tennessee natural gas network to Spire for $2.48 billion

Spire Inc. has completed the acquisition of Piedmont Natural Gas's Tennessee distribution network from Duke Energy for $2.48 billion. The transaction took effect on March 31, 2026. Operations will now be conducted under the Spire Tennessee brand and integrated into Spire's existing utility business, which already serves customers in Missouri, Alabama and Mississippi. In a sector marked by several consolidation moves, TotalEnergies also restructured its UK oil and gas assets by creating NEO NEXT+.

Tennessee's largest private gas utility

Spire Tennessee becomes the largest investor-owned natural gas utility in the state. The network operates primarily in the Nashville metropolitan area and surrounding communities, one of the fastest-growing regions in the United States, according to Spire. It includes nearly 3,800 miles of distribution and transmission pipelines and serves more than 200,000 customers. Tennessee's regulatory environment is described by the company as constructive and supportive of capital investment in infrastructure.

According to Spire, Spire Tennessee will represent approximately 20% of the group's capital investment plan over the five-year period ending in 2030. These expenditures target customer growth and network integrity investments. The transaction supports Spire's long-term strategy, which targets annual adjusted earnings per share growth of 5% to 7%.

Strategic rationale for both parties

For Duke Energy, whose portfolio serves more than 10 million customers, the divestiture contributes to funding the company's own capital plan, which it describes as a record investment program. Harry Sideris, president and chief executive officer of Duke Energy, stated that the transaction helps efficiently fund the group's capital plan. Duke Energy had provided natural gas service to the Nashville community for more than 40 years.

Scott Doyle, president and chief executive officer of Spire, said the acquisition allows the group to expand its core utility business while continuing to deliver reliable natural gas service. Joe Hampton, previously president of Spire Alabama, Gulf and Mississippi, takes over as president of Spire Tennessee. More than 200 Piedmont employees in the region join the new group and continue their roles serving customers.

Advisors and post-acquisition organization

BMO Capital Markets Corp. acted as exclusive financial advisor to Spire, with additional support from Newlin Capital Advisors. Sidley Austin LLP served as lead legal counsel to Spire, with additional counsel from Bradley Arant Boult Cummings LLP. McGuireWoods acted as joint regulatory counsel for both Spire and Duke Energy. Spire said it is actively recruiting additional positions for Tennessee operations and plans to bring its Spire Serves civic support program to the Nashville region.