Spire Inc. · NYSE:SR
Spire — Q3 2022 Earnings Presentation
16 slides from Spire's earnings presentation, Aug 4, 2022
Slide 1: Energizing the future: Third quarter fiscal 2022 update
Energizing the future Third quarter fiscal 2022 update August 4, 2022
Slide 2: Forward-looking statements and use of non-GAAP measures
Forward-looking statements and use of non-GAAP measures 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.
Slide 3: Participants on today's call
Participants on today’s call Suzanne Sitherwood Steven L. Lindsey Steven P. Rasche President and Executive Vice President Executive Vice President Chief Executive Officer and Chief Operating Officer and Chief Financial Officer 3 Spire | Third quarter fiscal 2022 update
Slide 4: Energizing the future
Energizing the future • Maintaining focus on our strategy and commitments – Continuing investment in growth and system upgrades – Strengthening operating performance • Achieving financial results and capital spend on track with plans • Progressing on regulatory matters • Advancing on environmental s
Slide 5: Advancing our environmental sustainability
Advancing our environmental sustainability • Established Scope 1 and Scope 2 emissions baseline • Evaluating renewable energy resources (RNG), focusing on – Exploring RNG opportunities, including methane capture from wastewater treatment plants as well as landfills and agricultural operations (anima
Slide 6: Progressing on regulatory matters
Progressing on regulatory matters Missouri rate case – procedural schedule issued May 18 Third-party testimony due AUG. 31 SEPT. 9 FEB. 28 (revenue (cost of Latest date requirement) service) rates effective AUG SEPT OCT NOV DEC JAN FEB Public Hearings MoPSC Hearings OCT. 12-18 NOV. 28-DEC. 9 Missour
Slide 7: Investing in growth
Investing in growth Capital expenditures (Millions) $500 $463 • YTD FY22 capex totaled $403M, $400 29 $403 driven by gas utility investment 12 $300 – $196M pipeline upgrades – $89M new business $200 434 391 • 5-year capex remains $3.1B $100 – Driven by utility pipeline replacement $0 9 mos. FY21 9 m
Slide 8: Net economic earnings
Net economic earnings Per diluted Millions common share Three months ended June 30, 2022 2021 2022 2021 Net (Loss) Income [GAAP] $ (1.4) $ 5.3 $ (0.10) $ 0.03 All other adjustments 1 5.5 1.6 0.11 0.03 Net Economic Earnings (NEE)2 $ 4.1 $ 6.9 $ 0.01 $ 0.06 By segment Gas Utility $ 4.2 $ 12.3 Gas Mark
Slide 9: Key quarterly variances
Key quarterly variances (Millions) As reported NSC Net 1 Three months ended June 30, 2022 2021 Variance reclass variance Natural gas $ 203.3 $ 96.9 $ 106.4 $ 106.4 Higher commodity costs Operation and maintenance Gas Utility $ 95.0 $ 103.2 $ (8.2) $ 4.4 $ (3.8) Gas Marketing 3.2 3.2 0.0 0.1 0.1 Lowe
Slide 10: Outlook
Outlook FY22 guidance • LT NEEPS growth target of 5-7% 0.30 • FY22 NEEPS of $3.75-$3.95 0.20 $3.95 • Financing forecast unchanged $4.18 0.05 – New credit facility in July 2022 $3.75 • Expanded to $1.3B • Extended through July 2027 FY21 MO 5%-7% Gas Utility Marketing Run Rate Rate of Growth & Other •
Slide 11: Energizing the future
Energizing the future Our energy warms homes, fuels businesses and advances communities. As we step forward, we’re laying the groundwork for an innovative, resilient and sustainable energy future. 11 Spire | Third quarter fiscal 2022 update
Slide 12: Appendix
Appendix 12 Spire | Third quarter fiscal 2022 update
Slide 13: Growing our dividend
Growing our dividend Annualized common stock dividend per share Dividend yield 3.7%2 $2.90 1 $2.74 $2.70 $2.60 $2.49 $2.50 $2.37 Dividend per share $2.30 $2.25 $2.10 $2.10 $1.96 $1.90 $1.70 $1.50 $1.30 2016 2017 2018 2019 2020 2021 2022 • Annualized 2022 common stock dividend increased 5.4% to $2.74
Slide 14: Missouri – 2022 rate case
Missouri – 2022 rate case 25% • On April 1, Spire Missouri filed a new 45% general rate case, seeking recovery of: – Our full, updated cost of service, 30% including deferred overhead costs – Increased capital investment Overheads recovery • Filing seeks fair and reasonable rate Rate of return of re
Slide 15: Missouri overhead cost deferrals
Missouri overhead cost deferrals Actuals through FY22 (Millions) Future recovery 6/30/22 estimates Costs to be capitalized Depreciation $12.5 $21.0 Costs to be expensed Cost of service $12.9 $15.0 ISRS overheads Cost of service $5.0 $5.0 • Total regulatory deferral at June 30 is $30.4M • Future reco
Slide 16: QTD net economic earnings reconciliation to GAAP
QTD net economic earnings reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Other Total common share2 Three months ended June 30, 2022 Net Income (Loss) [GAAP] $ 4.2 $ (5.1) $ (0.5) $ (1.4) $ (0.10) Adjustments, pre-tax: Fair value and timing adjustmen