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 multiple of 1.8 times the 2024 year-end rate base and 24 times the 2024 earnings. Approximately $800 million from the proceeds will be used to offset debt at Piedmont Natural Gas, with Duke Energy planning to use existing tax credits to offset most of the cash taxes resulting from the deal. The remaining net proceeds, about $1.5 billion, will help fund Duke Energy’s five-year capital plan valued at $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 added, “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 sale includes nearly 3,800 miles of pipelines and a liquefied natural gas facility serving around 205,000 customers in Tennessee. Operations will remain based in Greater Nashville, with affected Duke Energy employees transitioning 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 emphasized that both companies share values around safety and community support: “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 acted as financial advisors for Duke Energy during this transaction.
Duke Energy is investing heavily in electric grid upgrades along with cleaner generation sources such as natural gas, nuclear power, renewables, and energy storage.
Piedmont Natural Gas distributes natural gas across North Carolina, South Carolina, and Tennessee—serving over 1.2 million customers—and recently ranked highest in residential customer satisfaction among large utilities in its region according to J.D. Power’s latest study.
Spire currently serves approximately 1.7 million homes and businesses through its utilities operating primarily in Alabama, Mississippi, and Missouri.
Forward-looking statements made by Duke Energy note that various risks could affect whether or when this transaction closes or achieves its anticipated benefits.