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 represents a 1.8x multiple of the 2024 year-end rate base and a 24x multiple of 2024 earnings, which Duke Energy notes is a significant premium compared to its common stock. Of the proceeds, approximately $800 million will be used to offset debt at Piedmont Natural Gas, maintaining its capital structure. Duke Energy expects to use existing tax credits to cover most of the cash taxes from the transaction. The remaining net proceeds, estimated at $1.5 billion, will go toward funding Duke Energy’s five-year capital plan totaling $83 billion.
“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 also thanked customers and staff: “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 deal includes nearly 3,800 miles of distribution and transmission pipelines as well as a liquefied natural gas facility that serves about 205,000 customers in Tennessee. Operations will remain based in Greater Nashville, with current Duke Energy employees who primarily support this business transitioning over to Spire.
“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 added that both companies share values related to safety and community service: “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 served as financial advisors for Duke Energy during this transaction.
Duke Energy’s broader strategy focuses on investments in grid upgrades and cleaner energy generation including natural gas, nuclear power, renewables, and storage solutions.
Piedmont Natural Gas currently distributes natural gas across North Carolina, South Carolina, and Tennessee—serving more than 1.2 million residential, commercial, industrial, and power generation customers.
Spire serves about 1.7 million homes and businesses through its utilities operating mainly in Alabama, Mississippi, Missouri—with additional operations through Spire Marketing and Spire Midstream.
