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 says is a significant premium compared to its common stock value. About $800 million from the proceeds 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 valued at $83 billion. This plan focuses on energy modernization investments aimed at providing value for customers and shareholders.
Harry Sideris, president and chief executive officer of Duke Energy, said, “The transaction allows us to efficiently fund accelerating investment opportunities driven by record customer growth and a deepening economic development pipeline. 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 stated, “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 as well as a liquefied natural gas facility that serves about 205,000 customers. Operations will remain centered in Greater Nashville, with current Duke Energy employees supporting these operations transitioning over to Spire.
Scott Doyle, president and chief executive officer of Spire, commented on the acquisition: “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.” He added: “We look forward to serving customers in the Nashville area and safely delivering the energy they need.”
Doyle further noted that Duke Energy and Piedmont Natural Gas share Spire’s focus on safety and community engagement: “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.”
JP Morgan Securities LLC and RBC Capital Markets LLC acted as financial advisors for Duke Energy during this transaction process.
Duke Energy continues with plans focused on upgrading its electric grid infrastructure along with investments in cleaner power generation such as renewables, nuclear power, natural gas facilities, and energy storage technologies.
Piedmont Natural Gas remains a subsidiary of Duke Energy serving more than 1.2 million residential, commercial, industrial, and power generation customers across North Carolina, South Carolina, and Tennessee.
Spire Inc., one of America’s largest publicly traded natural gas companies serving Alabama, Mississippi, Missouri—and soon Tennessee—states that this acquisition aligns with its strategy of expanding through organic growth alongside infrastructure investment.
More information about each company can be found at their respective websites: duke-energy.com (https://www.duke-energy.com/) | piedmontng.com (https://www.piedmontng.com/) | spireenergy.com (https://www.spireenergy.com/).
