Bear River Midstream launched as an independent midstream energy company on June 30, 2026, backed by I Squared Capital. The formation follows I Squared Capital's acquisition of Spire Inc.'s natural gas storage assets in Wyoming and Oklahoma for $650 million. The launch marks a new chapter for assets serving the Western and Mid-Continent regions, with a strategic focus on expanding storage capacity to meet growing demand for energy reliability and flexibility across key U.S. markets.

The transaction strengthens Spire's focus on its regulated natural gas utility operations. The total consideration included $600 million in cash at closing and a $50 million fixed, non-contingent deferred payment to be received in Spire's fiscal year 2027. Greenhill, a Mizuho affiliate, acted as exclusive financial advisor to Spire, with Vinson & Elkins LLP serving as legal counsel and Kirkland & Ellis advising I Squared.

Asset Portfolio and Renaming

As part of the launch, the acquired assets have been rebranded under the Bear River Midstream identity. Spire Storage West has been renamed Stallion Gas Storage, while Spire Storage Salt Plains is now Salt Plains Gas Storage. These facilities form a strategically located storage platform designed to deliver reliability, flexibility, and operational scale.

Strategic Position and Operations

Stallion Gas Storage consists of two integrated underground fields certificated to provide up to 55 Bcf of working gas capacity with a peak withdrawal capability of approximately 980 MMcf per day. Located near the Opal Hub, the facility connects to five major interstate natural gas pipelines, allowing customers access to markets in the west and east, including the Rockies Express Pipeline.

Salt Plains Gas Storage operates as a 17 Bcf working gas capacity facility serving the Mid-Continent market, including Oklahoma, Kansas, and Missouri. The connections to Southern Star Pipeline and ONEOK’s Oklahoma Gas Transmission system provide customers the flexibility to manage seasonal demand shifts and weather-driven volatility.

Scott Smith, chief executive officer of Bear River Midstream, noted that the company is launching at a time when demand for reliable energy infrastructure is growing, driven by AI technology data centers, expanding LNG exports, and load growth across utility markets. He emphasized that the assets play a critical role in balancing energy supply and demand during peak periods. Customers will experience a seamless transition, as existing contracts, operations, and service teams remain unchanged.

JP Morgan analyst Eli Jossen has downgraded Spire from Overweight to Neutral while simultaneously increasing the stock's price target. The new price target is set at $85, up from the previous $84. This adjustment reflects a revised outlook on the natural gas utility company's performance and valuation.

Rating and Price Target Changes

The downgrade to Neutral suggests that the stock's risk-reward profile is now more balanced compared to its previous Overweight status. Despite the lower rating, the increased price target indicates a modest improvement in the firm's valuation estimate.

Spire, listed on the NYSE under the ticker SR, operates in the utilities sector. The change in investment stance comes as the firm reassesses the company's near-term potential relative to its current market price.