Spire STL Pipeline in doubt after Supreme Court rejection (NYSE: SR)

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The US Supreme Court on Monday declined to hear Spire Inc.’s (NYSE: SR) appeal of a lower court ruling that could close a 65-mile pipeline that runs through parts of Illinois and Missouri.

The Spire STL Pipeline, which connects with another pipeline in western Illinois, carries natural gas to the St. Louis region, serving 650K customers; it became fully operational in 2019 but in June 2021, a three-judge panel of the U.S. Court of Appeals for the District of Columbia vacated approval of Spire STL, ruling the Federal Energy Regulatory Commission had not adequately demonstrated a need for the project.

The pipeline remains operational because FERC last year issued a temporary certificate that continues to stand while the agency considers Spire’s appeal seeking new approval of the pipeline.

Spire shares nevertheless hit a 52-week intraday high Monday at $ 78.29.

Spire is one of the largest natural gas utilities in the US and appears able to maintain its dividend at the current level, but “the stock looks a bit overvalued compared to its peers,” Power Hedge writes in an analysis published last month on Seeking Alpha .

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