SEATTLE (Oil Monster): Duke Energy (NYSE:DUK) completed the sale of its Tennessee Piedmont Natural Gas business to Spire Inc. (NYSE:SR) for $2.48 billion on Tuesday, according to a press release statement.
The transaction, initially announced on July 29, 2025, transfers nearly 3,800 miles of distribution and transmission pipelines serving more than 200,000 customers in the Greater Nashville area to Spire.
Duke Energy will use approximately $800 million of the proceeds to pay down debt at Piedmont Natural Gas to maintain its capital structure. The debt reduction is notable given Duke carries total debt of $91.1 billion with a debt-to-equity ratio of 1.79. According to InvestingPro analysis, the company operates with a significant debt burden, making this strategic deleveraging particularly important. The remaining $1.5 billion in net proceeds after tax will help fund the company’s $103 billion regulated capital plan over the next five years.
"This transaction helps efficiently fund our capital plan — a plan built on safely and reliably meeting our communities’ growing energy needs while managing costs for our more than 10 million customers," said Harry Sideris, Duke Energy president and chief executive officer.
Piedmont Natural Gas employees who primarily supported the Tennessee business have transitioned to Spire to maintain business continuity. The primary operations will remain in the Greater Nashville area.
"This acquisition allows us to expand our core utility business while continuing to do what we do best as a company — safely delivering reliable natural gas to the communities we serve," said Scott Doyle, president and chief executive officer of Spire.
JP Morgan Securities LLC and RBC Capital Markets LLC served as Duke Energy’s financial advisors. Skadden, Arps, Slate, Meagher & Flom LLP served as transactional legal advisor.
Duke Energy’s electric utilities serve 8.7 million customers across six states and own 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky. The $101.6 billion utility giant has maintained dividend payments for 56 consecutive years, currently offering a 3.23% yield. Investors can access detailed analysis through InvestingPro’s comprehensive Pro Research Report, one of 1,400+ available for US equities.
Spire serves close to 2 million homes and businesses through its gas utilities in Alabama, Mississippi, Missouri and Tennessee.
In other recent news, Duke Energy has completed a $1.5 billion convertible notes offering due in 2029, with an interest rate of 3.000% per year. This offering included an additional $200 million in notes, following the full exercise of an option by initial purchasers. Duke Energy also announced a settlement agreement with North Carolina regulators and several parties, including Google and Walmart, regarding its proposed merger of Duke Energy Carolinas and Duke Energy Progress. Similarly, a settlement was reached in South Carolina, ensuring future savings for customers over a 14-year period, with Duke Energy committing to annual reporting of customer savings.
The company has also received approval from the Public Service Commission of South Carolina to construct a natural gas combined cycle power plant in Anderson County. This facility will have a capacity of approximately 1,365 megawatts, with construction expected to begin in the summer of 2027. Additionally, Duke Energy priced a $1.3 billion convertible notes offering at a 3.000% interest rate, increasing the offering size from the initially announced $1 billion. These developments reflect Duke Energy’s ongoing strategic initiatives and financial activities.
Courtesy: www.investing.com
