Spire Inc. (NYSE: SR) announced an agreement to 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 and a $50 million deferred payment in fiscal 2027.

The assets being sold consist of Spire Storage West in southwestern Wyoming, which provides up to 55 billion cubic feet of working gas capacity, and Spire Storage Salt Plains in north central Oklahoma, authorized to provide up to 17 billion cubic feet of working gas capacity.

Proceeds from the sale will partially fund Spire's acquisition of the Piedmont Natural Gas Tennessee business, which closed on March 31, 2026. The transaction is expected to close in the second half of Spire's fiscal year 2026, subject to customary closing conditions and Hart-Scott-Rodino Act approval.

"This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses," said Scott Doyle, president and chief executive officer of Spire.

Gautam Bhandari, Chief Investment Officer of I Squared Capital, said the assets "represent a high-quality, strategically located infrastructure platform that plays a critical role in supporting energy reliability across key U.S. markets."

Spire expects to provide revised 2026 guidance during its second quarter fiscal 2026 earnings call in May. The company reaffirmed its fiscal 2027 adjusted earnings per share guidance of $5.40-$5.60, which reflects the expected sale of both its gas marketing business and storage facilities.

Greenhill served as Spire's financial advisor, while Vinson & Elkins LLP provided legal counsel. Kirkland & Ellis served as I Squared's legal advisor.