Duke Energy announces sale of its Tennessee Piedmont Natural Gas business to Spire for US$2.48 billion

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 US$800 million of the proceeds will be used to offset debt at Piedmont Natural Gas to maintain its capital structure, and Duke Energy expects to utilise existing tax credits to offset a majority of the cash taxes resulting from the transaction. The remaining net proceeds of US$1.5 billion will help efficiently fund Duke Energy’s US$83 billion five-year capital plan – a plan that is focused on energy modernisation investments to deliver value for customers and shareholders.

,p>“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 added, “I want to thank our customers and the Nashville community for allowing us to serve as their trusted energy partner, regional supporter and neighbour for more than 40 years. I also want to recognise 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 sale agreement for the Piedmont Natural Gas Tennessee business includes nearly 3800 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.

"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 said Duke Energy and Piedmont Natural Gas share Spire’s core value of safety and a commitment to serving and supporting the community.

“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,” said Doyle. "We look forward to welcoming their employees and customers, and becoming an active participant in the growing Nashville business community.”

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.

JP Morgan Securities LLC and RBC Capital Markets LLC served as Duke Energy’s financial advisors. Skadden, Arps, Slate, Meagher and Flom LLP served as Duke Energy’s transactional legal advisor. In addition, Duke Energy received legal support on certain regulatory matters from McGuireWoods and Holland and Knight.

Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/30072025/duke-energy-announces-sale-of-its-tennessee-piedmont-natural-gas-business-to-spire-for-us248-billion/