Duke Energy to sell Piedmont Natural Gas business to Spire for $2.48B in cash

Duke Energy (DUK) announced it reached an agreement to sell its Piedmont Natural Gas Tennessee local distribution company business for $2.48B in cash to Spire (SR). The sale price represents a 1.8x multiple of 2024 year-end rate base and a 24x multiple of 2024 earnings – a significant premium to Duke Energy’s common stock. Approximately $800M of the proceeds will be used to offset debt at Piedmont Natural Gas to maintain its capital structure, and Duke Energy expects to utilize existing tax credits to offset a majority of the cash taxes resulting from the transaction. The remaining net proceeds of $1.5 billion will help efficiently fund Duke Energy’s $83B five-year capital plan – a plan that is focused on energy modernization investments to deliver value for customers and shareholders. The sale agreement for the Piedmont Natural Gas Tennessee business includes nearly 3,800 miles of distribution and transmission pipelines and a liquefied natural gas facility serving approximately 205,000 customers. The primary operations will remain in the Greater Nashville area, and the Duke Energy employees who primarily support the business will transition over to Spire to maintain business continuity for its operations and customers. The transaction is subject to customary closing conditions, including regulatory approval by the Tennessee Public Utility Commission and the expiration or termination of the waiting period under the Hart-Scott-Rodino Act. The sale is expected to close in the first quarter of 2026.