Shares of Spire Inc. (SR), a natural gas utility, slipped a bit on Wednesday. The move came after the company announced it's selling off some of its storage assets to private equity firm I Squared Capital for $650 million. It's one of those deals where a utility decides it wants to be more of a pure-play utility and less of an energy infrastructure player.
Here's how the money breaks down: Spire gets $600 million in cash when the deal closes, plus another $50 million down the road in fiscal 2027. That cash is earmarked to help pay for Spire's acquisition of the Piedmont Natural Gas Tennessee business and to wrap up its financing plan. The transaction is expected to close in the second half of fiscal 2026, assuming all the usual regulatory boxes get checked.
Why Sell the Storage?
Spire says this sale will let it focus more on what it does best: running regulated natural gas utilities. The idea is to improve the company's risk profile and support long-term growth. Meanwhile, I Squared plans to take those assets—which include storage facilities in Wyoming and Oklahoma—and maybe expand them to meet growing demand for natural gas storage. So Spire gets to simplify its business, and I Squared gets to play in the storage market.
What's Being Sold and What's Next for Spire
The assets include Spire Storage West in Wyoming, which can hold up to 55 billion cubic feet of gas, and Spire Storage Salt Plains in Oklahoma, with up to 17 billion cubic feet of capacity. They serve markets across the western, midcontinent, and midwestern U.S.
On the financial front, Spire expects to update its fiscal 2026 guidance during its second-quarter earnings call in May. The company reaffirmed its fiscal 2027 adjusted EPS guidance of $5.40 to $5.60, with long-term EPS growth targeted at 5% to 7%. "This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses," said CEO Scott Doyle.
Where the Stock Stands Technically
Spire is trading near the top of its 52-week range, which suggests it's been doing pretty well lately. The stock is 0.3% above its 20-day simple moving average, hinting at short-term bullish momentum, and 1.4% above its 50-day SMA, showing strength over a slightly longer period. The Relative Strength Index (RSI) is at 54.24, which is basically neutral—not overbought, not oversold. So the market seems balanced here, waiting for the next catalyst.
Key levels to watch: $92.50 as resistance (where sellers might step in) and $89.00 as support (where buyers could show up).
Earnings and What Analysts Think
Spire's next financial update is scheduled for May 6, 2026. Here's what analysts are expecting:
- EPS Estimate: $3.75 (up from $3.60)
- Revenue Estimate: $1.10 billion (up from $1.05 billion)
- Valuation: P/E of 20.3x, which looks fair
The stock carries a Buy rating with an average price target of $82.23. Recent analyst moves include:
- Stifel: Hold (raises target to $87.00) on Jan. 28
- UBS: Buy (raises target to $100.00) on Dec. 17, 2025
- Morgan Stanley: Upgraded to Overweight (lowers target to $92.00) on Dec. 16, 2025
As of Wednesday, Spire shares were down 0.17% at $92.45, according to market data.
