Slide 1: The future is bright: First quarter fiscal 2024 update
The future is bright First quarter fiscal 2024 update February 1, 2024
Slide 2: Participants on today's call
Participants on today’s call Photo being taken on 1/25 Steven L. Lindsey Steven P. Rasche Scott E. Doyle Adam W. Woodard President and Executive Vice President Executive Vice President Vice President Chief Executive Officer and Chief Financial Officer and Chief Operating Officer and Treasurer 2 Spir
Slide 3: Executing on our strategy
Executing on our strategy • Focused on operational excellence and cost management • Executed on capital investment plan centered on utility infrastructure upgrades and new business • Delivered Q1 FY24 net economic earnings per share of $1.47 • New rates effective for Spire Alabama and Spire Gulf • A
Slide 4: Increasing capital investment
Increasing capital investment YTD capital expenditures (Millions) $227 • Q1 FY24 capex totaled $227M 52 driven by gas utility investment $155 8 – Gas utility investment includes • $73M of infrastructure upgrades 175 147 and advanced meters • $30M of new business – Spire Storage expansion remains Q1
Slide 5: Acquisition of MoGas/Omega
Acquisition of MoGas/Omega SLL • MoGas and Omega pipeline businesses acquired for $175M – MoGas is a 263-mile gas pipeline system primarily in Missouri – Omega is a connected distribution system serving Fort Leonard Wood • Bolsters resiliency and expands Missouri footprint • Results will be included
Slide 6: Q1 FY24 net economic earnings
Q1 FY24 net economic earnings Per diluted Millions common share Three months ended December 31, 2023 2022 2023 2022 Net Income [GAAP] $ 85.1 $ 91.0 $ 1.52 $ 1.66 Fair value and timing adjustments, pre-tax (5.2) (7.8) (0.10) (0.15) Acquisition activities, pre-tax 1.9 ― 0.03 ― 1 Income tax adjustments
Slide 7: Key Q1 FY24 variances
Key Q1 FY24 variances (Millions) As reported Pension Net Three months ended December 31, 2023 2022 reclass variance Notes Operating Revenues $ 756.6 $ 814.0 $ (57.4) Lower commodity costs Contribution Margin1 Gas Utility $ 323.8 $ 301.0 $ 22.8 New rates in MO +$22.5M and AL +$3.9M; Lower C&I usage G
Slide 8: Outlook
Outlook • Affirm long-term 5-7% NEEPS NEE by business segment (Millions) growth target beyond 2024 FY23 FY24 actual target – Midpoint of FY24 guidance of $4.35 as a base Gas Utility $200 $230 – $240 – 7-8% utility rate base growth Gas Marketing 48 19 – 23 Midstream 14 21 – 27 • Affirm FY24 NEEPS exp
Slide 9: Financing
Financing Equity forecast (Millions) • Equity $50-100 – $112.5M forward sale settled Dec. 20231 – $175M Equity Units conversion2 $287.5 – $200M 3-year ATM authorized $0-50 $0-50 • Debt FY24 FY25 FY26 – Long-term largely tied to remarketing Common and hybrid equity locked in ATM or refinancing of mat
Slide 10: Looking ahead
Looking ahead • Committed to delivering safe, reliable and affordable energy to customers and communities • Remain focused on execution, efficiencies and operational excellence • Achieving earnings growth, capex and sustainability targets 10 S p i r e | F i r s t q u a r t e r f i s c a l 2 0 2 4 u
Slide 11: Appendix
Appendix 11 Spire | First quarter fiscal 2024 update
Slide 12: 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 13: Our Spire utility portfolio
Our Spire utility portfolio Alabama Gulf Mississippi Missouri Primary office Birmingham Mobile Hattiesburg St. Louis Customers1 430,300 84,000 18,300 1,203,000 Pipeline miles ~24,400 ~4,200 ~1,200 ~31,400 Rate base (Millions) $502 $3,4133 Avg. common equity (Millions) $7134 $1394 Return on equity 9.
Slide 14: Growing our dividend
Growing our dividend Annualized dividend per share $3.021 $2.88 $2.74 $2.60 $2.49 $2.37 2019 2020 2021 2022 2023 2024 • 2024 annualized dividend increased 4.9% to $3.02 per share • Supported by long-term 5-7% earnings growth • 2024 marks 21 consecutive years of increases; 79 years of continuous paym
Slide 15: Q1 FY24 NEE reconciliation to GAAP
Q1 FY24 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Midstream Other Total common share2 Three months ended December 31, 2023 Net Income (Loss) [GAAP] $ 75.5 $ 11.4 $ 0.9 $ (2.7) $ 85.1 $ 1.52 Adjustments, pre-tax: Fair value and timing adjust
Slide 16: Q1 FY24 contribution margin reconciliation to GAAP
Q1 FY24 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Midstream Other Eliminations Consolidated Three months ended December 31, 2023 Operating Income (Loss) [GAAP] $ 122.3 $ 14.7 $ 3.3 $ (1.1) $ ― $ 139.2 Operation and maintenance 116.7 4.4 8.6 5.0 (4.0) 130.7 Depre