Duke Energy has announced an agreement to sell its Piedmont Natural Gas Tennessee local distribution company business to Spire Inc. for $2.48 billion in cash. The transaction is expected to close in the first quarter of 2026, pending regulatory approval by the Tennessee Public Utility Commission and other customary closing conditions.
The sale price reflects a 1.8x multiple of the 2024 year-end rate base and a 24x multiple of 2024 earnings, which Duke Energy notes is a significant premium compared to its common stock. Of the total proceeds, approximately $800 million will be used to offset debt at Piedmont Natural Gas, while the remaining $1.5 billion will help fund Duke Energy’s five-year capital plan totaling $83 billion.
“The transaction allows us to efficiently fund accelerating investment opportunities driven by record customer growth and a deepening economic development pipeline,” said Harry Sideris, Duke Energy president and chief executive officer. “We’re confident Spire will support the continued growth and success of the Tennessee natural gas business and serve as an incredible operator for the benefit of employees, customers and communities.”
Sideris also expressed gratitude toward customers and staff: “I want to thank our customers and the Nashville community for allowing us to serve as their trusted energy partner, regional supporter and neighbor for more than 40 years. I also want to recognize the entire Piedmont Natural Gas team who support the Tennessee business for their unwavering commitment to our customers, operational excellence and industry-leading service. They have set the bar for what it means to be a best-in-class natural gas business and will continue to do so for many years to come.”
The assets included in this sale are nearly 3,800 miles of distribution and transmission pipelines, along with a liquefied natural gas facility serving about 205,000 customers primarily in Greater Nashville. Employees supporting these operations are expected to transition over to Spire.
“This acquisition is a natural fit for Spire, allowing us to expand our core utility business and increase our utility customer base to nearly two million homes and businesses,” said Scott Doyle, president and chief executive officer of Spire. “We look forward to serving customers in the Nashville area and safely delivering the energy they need.”
Doyle added that Spire shares values with Duke Energy regarding safety and community service: “We’re eager to build on the foundation of exceptional customer service and community engagement that Piedmont Natural Gas customers in Tennessee have enjoyed for years,” he said. “We look forward to welcoming their employees and customers, and becoming an active participant in the growing Nashville business community.”
J.P. Morgan Securities LLC and RBC Capital Markets LLC acted as financial advisors for Duke Energy on this deal. Legal advice was provided by Skadden, Arps, Slate, Meagher & Flom LLP on transactional matters with additional regulatory legal support from McGuireWoods and Holland & Knight.
Duke Energy continues its strategy focused on modernizing its electric grid infrastructure alongside investments in cleaner generation sources such as renewables, nuclear power, natural gas, and energy storage systems.
Piedmont Natural Gas remains a subsidiary of Duke Energy distributing natural gas across North Carolina, South Carolina, and Tennessee.
Spire Inc., one of the largest publicly traded natural gas companies in the U.S., currently serves around 1.7 million homes across Alabama, Mississippi, Missouri through its utilities segment.
The completion of this transaction is contingent upon regulatory approvals including from state agencies as well as compliance with federal requirements under antitrust law.
