Spire Inc. · NYSE:SR
Spire — Laclede Group — Investor Presentation (December 2013)
27 slides from Spire's investor presentation, Dec 11, 2013
Slide 1: Investor Presentation December 2013
1 T H E L A C L E D E G R O U P Investor Presentation D E C E M B E R 2 0 1 3
Slide 2: G R O U P
2 T H E L A C L E D E G R O U P
Slide 3: Forward-Looking Statements
3 T H E L A C L E D E G R O U P This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements in this presentation speak only as of today, and we assume no duty to update them. Forward- looking stateme
Slide 4: The Laclede Group Today
4 T H E L A C L E D E G R O U P The Laclede Group Today 1See Adjusted EBITDA (Non-GAAP) Reconciliation in Appendix. 2Laclede Gas and MGE customers as of 9/30/13 . 91% 9% Commercial & Industrial Gas Utility Customer Base2 Residential Financially Strong, Growing Natural Gas Services Provider 56% 35% 9
Slide 5: Positioned for Further Growth
5 T H E L A C L E D E G R O U P Positioned for Further Growth • We will remain largely a regulated natural gas utility • Leveraging our expertise ‒ 150+ years of natural gas industry experience ‒ Experienced management team ‒ Record of growth in earnings and dividends ‒ 8th oldest continuously trade
Slide 6: Laclede is a Leading Gas Utility
6 T H E L A C L E D E G R O U P Laclede is a Leading Gas Utility Gas Utility Customers - LDCs 0.0 1.0 2.0 3.0 4.0 5.0 4.5 3.0 1.9 1.1 1.1 1.0 0.7 0.5 0.4 GAS ATO SWX LG WGL PNY NWN NJR SJI (millions) • Largest LDC in Missouri serving state’s two largest metropolitan areas • 4th largest publicly trad
Slide 7: Missouri's Favorable Economic and Market Profile
7 T H E L A C L E D E G R O U P 0 10,000 20,000 30,000 2009A 2010A 2011A 2012A 2013E 2014E 2015E 2016E Missouri St. Louis Kansas City • 6.5% unemployment rate (October) below national average • Headquarters to 10 diverse Fortune 500 companies • Laclede serves ~98% of new single-family homes Missouri
Slide 8: Supporting Our Continued Utility Investments
8 T H E L A C L E D E G R O U P Supporting Our Continued Utility Investments *Includes MGE for full fiscal year ended September 30, 2013. ISRS Recoverable Distribution, Equipment and Other Information Technology $0 $50 $100 $150 $200 51 68 87 108 27 27 42 65 31 36 36 12 $109 $131 $165 $185 2013 2012
Slide 9: General Rate Cases
9 T H E L A C L E D E G R O U P General Rate Cases • MGE: filed on September 16, 2013 ‒ Procedural schedule published; expect to resolve before 11-month deadline • Laclede Gas: agreement effective September 1, 2013 ‒ Incorporated $14.8 million of ISRS revenues into base rates ‒ Maintains rate struct
Slide 10: Gas Marketing
1 0 T H E L A C L E D E G R O U P • Complementary non-regulated natural gas sales and services • Leverages supply and transportation contracts in central U.S. • 2 Bcf of leased storage • Diverse customer base • Conservatively operated with diligent risk management • Profitable and cash generating Ga
Slide 11: Natural Gas Fueling Solutions
1 1 T H E L A C L E D E G R O U P • Laclede teaming with Siemens to offer end-to-end NGV fueling solutions: ‒ Significant US market opportunity ‒ Services: plan, design, build, own and operate, maintain ‒ Station economics supported by anchor customers ‒ Targets: heavy duty trucking, transit, waste
Slide 12: Delivering Shareholder Value - Earnings
1 2 T H E L A C L E D E G R O U P $1.50 $1.79 $1.49 $1.63 $2.10 $2.14 $2.46 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2007 2008 2009 2010 2011 2012 1H FY2013 Ne t E cono m ic Ea rn ing s P er Sh ar e1 $1.46 $1.50 $1.54 $1.58 $1.62 $1.66 $1.70 $1.30 $1.40 $1.50 $1.60 $1.70 2007 2008 2009 2010 2011 2012 Cur
Slide 13: Delivering Shareholder Value - Dividends
1 3 T H E L A C L E D E G R O U P $1.50 $1.79 $1.49 $1.63 $2.10 $2.14 $2.46 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2007 2008 2009 2010 2011 2012 1H FY2013 Ne t E cono m ic Ea rn ing s P er Sh ar e1 $1.46 $1.50 $1.54 $1.58 $1.62 $1.66 $1.70 $1.30 $1.40 $1.50 $1.60 $1.70 2007 2008 2009 2010 2011 2012 Cur
Slide 14: Strong Cash Flow and Ample Liquidity
1 4 T H E L A C L E D E G R O U P Strong Cash Flow and Ample Liquidity • Net cash provided from 2013 operating activities of $164 million ‒ Up from $128 million in 2012 ‒ Increase largely reflects timing of PGA recovery, lower pension and income tax payments • Liquidity enhanced with new expanded 5-
Slide 15: Solid Balance Sheet and Access to Capital
1 5 T H E L A C L E D E G R O U P Solid Balance Sheet and Access to Capital $50 $80 $100 $100 $55 $80 $0 $50 $100 $150 2013 - 2015 2016 - 2020 2021 - 2025 2026 - 2030 2031 - 2035 2036 - 2040 Deb t M aturiti es ($ in Mill ions ) Debt Maturity Debt Callable in 2013 1 Long-term capitalization as of Sep
Slide 16: Fiscal 2014 Outlook
1 6 T H E L A C L E D E G R O U P • Key metric remains Net Economic Earnings (NEE) per share ‒ 2013 baseline excluded the entire impact of the MGE deal ‒ 2014 excludes one-time integration costs (both expensed and deferred portions) • FY 2014 NEE per share equal to FY 2013 ‒ MGE anticipated to be si
Slide 17: Pursuing Further Growth
1 7 T H E L A C L E D E G R O U P Pursuing Further Growth • Leveraging our expertise • Strong financial position and liquidity • Proven track record • Driving growth through . . . 1 &
Slide 18: G R O U P
1 8 T H E L A C L E D E G R O U P
Slide 19: Appendix
1 9 T H E L A C L E D E G R O U P Appendix
Slide 20: Financial Highlights – Fiscal 2013
2 0 T H E L A C L E D E G R O U P Financial Highlights – Fiscal 2013 *See Net Economic Earnings (Non-GAAP) Reconciliation, page 23. Twelve Months Ended September 30, (Millions) (Per Diluted Share) 2013 2012 2013 2012 Earnings by Segment Gas Utility $ 56.7 $ 48.1 $ 2.51 $ 2.14 Gas Marketing 8.9 12.3
Slide 21: Financial Highlights – Fiscal 2013
2 1 T H E L A C L E D E G R O U P Financial Highlights – Fiscal 2013 1See Net Economic Earnings (Non-GAAP) Reconciliation, page 23. • Net Economic Earnings1 up 3.8% to $65.0 million; a record $2.87 per share ‒ Gas Utility: $56.7 million (up 18%) • Higher sales margins and increased pipeline replacem
Slide 22: Constructive Regulatory Mechanisms in Missouri
2 2 T H E L A C L E D E G R O U P Constructive Regulatory Mechanisms in Missouri Rate Design Purchased Gas Adjustment Clause Infrastructure System Replacement Surcharge (ISRS) Pension Cost Tracker Energy Efficiency / Conservation Regulatory Rating1 Weather - Mitigation Straight Fixed - Variable Miss
Slide 23: Net Economic Earnings (Non-GAAP) Reconciliation
2 3 T H E L A C L E D E G R O U P Net Economic Earnings (Non-GAAP) Reconciliation Amounts presented net of income taxes, which are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of pre-tax reconciling items. Net economic earnings per sh
Slide 24: Adjusted EBITDA (Non-GAAP) Reconciliation
2 4 T H E L A C L E D E G R O U P Adjusted EBITDA (Non-GAAP) Reconciliation 12012 fiscal years ended 9/30/12 for The Laclede Group and 12/31/12 for MGE. 2One-time expenses and normalizing adjustments and The Laclede Group acquisition – related expenses. Laclede Group $ millions, twelve months ended
Slide 25: Key Utility Statistics
2 5 T H E L A C L E D E G R O U P 1For fiscal years 2012 ended 9/30/12 for Laclede Gas and 12/31/12 for Missouri Gas Energy, unless noted otherwise. 2Laclede Gas rate base as filed Dec. 2012; MGE rate base as filed September 2013. 3Long-term Debt to Long-term Capitalization of The Laclede Group as o
Slide 26: Sale of New England Gas Company (NEG)
2 6 T H E L A C L E D E G R O U P • Algonquin to acquire NEG via Laclede acquisition subsidiary - Agreement between Laclede, Algonquin and Energy Transfer Equity (ETE) - Algonquin to pay $63 million to ETE for NEG assets - Laclede to receive $11 million, subject to typical closing adjustments • Mass
Slide 27: G R O U P
2 7 T H E L A C L E D E G R O U P
Laclede Group — Investor Presentation (December 2013) on 6ix