Piedmont Natural Gas
2016
$$6.7 Billion
Why
To diversify the company's portfolio by expanding its natural gas distribution business, complementing its electric utility operations. The acquisition aimed to capture growth in the natural gas sector, driven by low domestic gas prices and the increasing substitution of coal with natural gas in power generation. Piedmont brought a vast network of pipelines and over a million new customers in the Carolinas and Tennessee.
Impact
The acquisition significantly broadened Duke Energy's customer base and provided a reliable, regulated earnings stream from natural gas distribution. It also offered strategic synergies, as Duke Energy was already one of Piedmont's largest customers for natural gas transportation to its power plants, allowing for better coordination in infrastructure development.
Outcome
Piedmont Natural Gas operated as a successful business unit within the company for several years, contributing steady revenue growth. However, as Duke Energy continuously refined its strategic focus to concentrate entirely on its core regulated electric and gas utility operations, it later decided to sell the Tennessee portion of the Piedmont business in 2026 to optimize its geographic footprint.