CorEnergy Infrastructure Trust is selling a US interstate natural gas transmission and distribution system to Spire Inc, a public utility holding company.
CorEnergy said has agreed to sell its MoGas and Omega pipeline systems (MoGas System) to fellow NYSE-listed company for around $175m (€163m).
The MoGas System provides service to markets in Missouri and Illinois.
CorEnergy said it expects to use the estimated $165m of net proceeds from the disposal to repay all its bank debt of around $100m.
Dave Schulte, CorEnergy’s chairman and CEO, said: “The sale of our MoGas and Omega systems enables us to significantly de-leverage our balance sheet and strengthen our overall capital structure.
“This is one of several 2023 initiatives we are undertaking to improve our balance sheet and operating results, including proposed tariff increases and corporate cost reductions.”
CorEnergy is a real estate investment trust that owns, operates and leases US-regulated natural gas transmission and distribution lines and crude oil gathering, storage and transmission pipelines and associated rights of way.
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