News Summary
Duke Energy has reached a $2.48 billion agreement to sell its Piedmont Natural Gas operations in Tennessee to Spire Inc. The transaction aims to close in early 2026, pending regulatory approval. Spire plans to serve nearly two million customers post-acquisition, while Duke intends to use part of the funds to reduce debt and support its capital plan. The sale signals a major shift in the natural gas utility sector and highlights the operational transition for employees and service for communities.
Tennessee
Duke Energy has announced a significant move in the energy sector by reaching an agreement to sell its Piedmont Natural Gas Tennessee operations to Spire Inc. for $2.48 billion in cash. This transaction is anticipated to close in the first quarter of calendar 2026, pending approval from state and federal regulators, including the Tennessee Public Utility Commission.
As part of this agreement, Spire Inc., a prominent natural gas utility based in St. Louis, plans to strengthen its foothold in the market, aiming to serve nearly two million homes and businesses following the acquisition. Currently, Piedmont Natural Gas operates nearly 3,800 miles of distribution and transmission pipelines and a liquefied natural gas facility, catering to approximately 200,000 customers from Nashville to the Kentucky border.
Financial Implications and Future Plans
Duke Energy intends to allocate about $800 million of the proceeds from the sale to reduce its debt, while the remainder will help fund its ambitious $83 billion five-year capital plan aimed at enhancing energy modernization. The sale price reflects a substantial increase, with a 24 times multiple of the Tennessee division’s earnings, considered a significant premium over Duke Energy’s common stock valuation.
Piedmont Natural Gas reported revenue of $1.7 billion and net income of $412 million in the last fiscal year, demonstrating the robust performance of its operations. The sale represents an important decision for Duke Energy, which acquired Piedmont Natural Gas for $4.9 billion in 2016. Since then, Duke has operated its Tennessee division for approximately 40 years.
Operational Transition and Community Impact
Following the acquisition, employees from Piedmont Natural Gas’s Tennessee division are expected to transition to Spire, ensuring a smooth business continuity process. Spire Inc.’s management has stated its commitment to prioritizing safety and delivering exceptional customer service to all current and future customers.
CEO of Duke Energy expressed confidence in the capabilities of Spire Inc. to serve the employees, customers, and communities in Tennessee effectively. This acquisition is a strategic step for both companies as they adapt to the evolving energy landscape.
Conclusion
The deal between Duke Energy and Spire Inc. marks a major transformation in the natural gas utility market, with the potential to enhance service delivery and community investment. As the transaction awaits regulatory approvals, stakeholders from both companies will be closely monitoring developments leading up to the anticipated closing date in 2026.
Deeper Dive: News & Info About This Topic
- Duke Energy News Release
- Wikipedia: Natural Gas Industry
- PR Newswire: Spire Acquisition
- Google Search: Duke Energy Tennessee Piedmont Natural Gas
- Business North Carolina
- Encyclopedia Britannica: Natural Gas
- Fox17 News
- Google News: Duke Energy Piedmont sale to Spire
- Hart Energy
Author: STAFF HERE SPARTANBURG
SPARTANBURG STAFF WRITER The SPARTANBURG STAFF WRITER represents the experienced team at HERESpartanburg.com, your go-to source for actionable local news and information in Spartanburg, Spartanburg County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Spartanburg International Festival, Spartanburg ArtWalk, and motorsport events at Spartanburg Speedway. Our coverage extends to key organizations like the Spartanburg Area Chamber of Commerce and the Spartanburg Regional Healthcare System Foundation, plus leading businesses in manufacturing and textiles that power the local economy such as BMW Manufacturing and Milliken & Company. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
