Slide 1: The Future is Bright
The Future is Bright Second quarter fiscal 2024 update May 1, 2024
Slide 2: Participants on today's call
Participants on today’s call Steven L. Lindsey Scott E. Doyle Steven P. Rasche Adam W. Woodard President and Executive Vice President Executive Vice President Vice President Chief Executive Officer and Chief Operating Officer and Chief Financial Officer and Treasurer 2 Spire | Second quarter fiscal
Slide 3: Delivering essential energy
Delivering essential energy • Delivered Q2 FY24 net economic earnings per share of $3.45 impacted by lower weather-driven margins and higher interest expense • Focused on growing businesses organically, investing in infrastructure and driving continuous improvement • Executing on capital investment
Slide 4: Gas Utility update
Gas Utility update • Our focus remains – Delivering safe and reliable natural gas to customers – Enhancing efficiencies and customer affordability – Maintaining constructive regulatory relationships, frameworks and outcomes • Q2 earnings results reflect – Higher AL rates and MO ISRS revenues – Warm
Slide 5: Executing robust capex plan
Executing robust capex plan YTD capital expenditures at March 31 (Millions) $409 • YTD FY24 capex of $409M driven by gas utility investment including $308 98 – $224M of infrastructure upgrades and 17 advanced meters – $55M of new business 291 311 • FY24 capex target increased to $800M from $765M – G
Slide 6: Midstream update
Midstream update • Completed acquisition of MoGas/Omega in Jan. 2024 • Spire Storage West expansion – Expect completion in Q1 FY25 – Total investment has increased to $250M (+$55M) including project enhancements and higher construction costs – Strong market demand confirmed by recently completed rec
Slide 7: Q2 FY24 net economic earnings
Q2 FY24 net economic earnings Per diluted Millions common share Three months ended March 31, 2024 2023 2024 2023 Net Income [GAAP] $ 204.3 $ 179.2 $ 3.58 $ 3.33 Adjustments1 (7.7) 20.0 (0.13) 0.37 Net Economic Earnings (NEE)2 $ 196.6 $ 199.2 $ 3.45 $ 3.70 By segment Variance Gas Utility $ 188.0 $ 18
Slide 8: Key Q2 FY24 variances
Key Q2 FY24 variances (Millions) As reported Net Three months ended March 31, 2024 2023 variance Notes Operating Revenues $ 1,128.5 $ 1,123.4 $ 5.1 1 Contribution Margin Gas Utility $ 469.6 $ 451.2 $ 18.4 New rates in AL (+$6.4M) and MO (ISRS +$5.4M); Usage net of weather mitigation: AL (+$10.3M), M
Slide 9: Outlook
Outlook NEE by business segment (Millions) • Reaffirm long-term 5-7% NEEPS growth target beyond 2024 FY23 Original Updated actual FY24 FY24 – From midpoint of FY24 guidance ($4.35) target target Gas Utility $200 $230 – 240 $220 – 230 – 7-8% utility rate base growth Gas Marketing 48 19-23 24 – 28 • R
Slide 10: Capital funding plan
Capital funding plan Equity forecast (Millions) • Equity $50-100 – $112M forward sale settled Dec. 20231 – $175M Equity Units converted Mar. 20242 • Debt $287.5 – $350M Spire Inc. 2-year note issued Feb. 12 $0-50 $0-50 • $175M for remarketing of senior notes FY24 FY25 FY26 • Remaining proceeds used
Slide 11: Looking ahead
Looking ahead • Committed to delivering safe, reliable and affordable energy to customers and communities • Remain focused on execution, efficiencies and operational excellence • Delivering value to shareholders through targeted 5-7% long-term earnings growth 11 Spire | Second quarter fiscal 2024 up
Slide 12: Appendix
Appendix 12 Spire | Second quarter fiscal 2024 update
Slide 13: 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 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: Q2 FY24 throughput, customer, weather and margin data
Q2 FY24 throughput, customer, weather and margin data Spire Missouri Spire Alabama Q2 FY24 Q2 FY23 Variance Q2 FY24 Q2 FY23 Variance Throughput (BCF) Residential 34.3 36.3 -5.5% 9.9 8.1 22.2% Commercial & Industrial 16.3 16.0 1.9% 4.8 3.7 29.7% Transportation 13.5 13.5 0.0% 17.6 17.8 -1.1% Total 64.
Slide 16: 1H FY24 throughput, customer, weather and margin data
1H FY24 throughput, customer, weather and margin data Spire Missouri Spire Alabama 1H FY24 1H FY23 Variance 1H FY24 1H FY23 Variance Throughput (BCF) Residential 58.3 67.2 -13.2% 13.4 11.9 12.6% Commercial & Industrial 25.2 28.2 -10.6% 6.5 5.9 10.2% Transportation 25.6 26.2 -2.3% 35.2 36.9 -4.6% Tot
Slide 17: 1H FY24 net economic earnings
1H FY24 net economic earnings Per diluted Millions common share Six months ended March 31, 2024 2023 2024 2023 Net Income [GAAP] $ 289.4 $ 270.2 $ 5.14 $ 4.99 Fair value and timing adjustments, pre-tax (15.4) 18.8 (0.27) 0.36 Acquisition activities, pre-tax 1.9 ― 0.03 ― Income tax adjustments1 3.4 (
Slide 18: Key 1H FY24 variances
Key 1H FY24 variances (Millions) As reported Net Six months ended March 31, 2024 2023 variance Notes Operating Revenues $ 1,885.1 $ 1,937.4 $ (52.3) Lower commodity costs 1 Contribution Margin Gas Utility $ 793.4 $ 752.2 $ 41.2 New MO rates (+$22.9M) plus ISRS ($5.6M) and AL (+$10.3M); Usage net of
Slide 19: Constructive regulatory jurisdictions
Constructive regulatory jurisdictions Spire Alabama and Spire Spire Spire Gulf Mississippi Missouri Regulatory commission Alabama PSC Mississippi PSC Missouri PSC Rate stabilization and Rate stabilization Traditional approach – Rate setting mechanism equalization (RSE) – adjustment (RSA) – historica
Slide 20: Approved regulatory filings
Approved regulatory filings Spire Spire Spire Spire Alabama Gulf Mississippi Missouri Effective date Jan. 2024 Dec. 2023 Jan. 2024 Dec. 2022 of current base rates Rate base (Millions) $501 n/a2 Avg. common equity (Millions) $7133 $1393 Return on equity 9.70%4 9.95%5 10.34%6 n/a2 Equity ratio 55.5%4
Slide 21: Q2 FY24 NEE reconciliation to GAAP
Q2 FY24 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Midstream Other Total common share2 Three months ended March 31, 2024 Net Income (Loss) [GAAP] $ 188.3 $ 22.9 $ 3.8 $ (10.7) $ 204.3 $ 3.58 Adjustments, pre-tax: Fair value and timing adjust
Slide 22: Q2 FY24 contribution margin reconciliation to GAAP
Q2 FY24 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Midstream Other Eliminations Consolidated Three months ended March 31, 2024 Operating Income (Loss) [GAAP] $ 261.8 $ 30.0 $ 7.4 $ (0.6) $ ― $ 298.6 Operation and maintenance 121.6 6.2 9.4 4.7 (4.1) 137.8 Deprecia
Slide 23: 1H FY24 NEE reconciliation to GAAP
1H FY24 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Midstream Other Total common share2 Six months ended March 31, 2024 Net Income (Loss) [GAAP] $ 263.8 $ 34.3 $ 4.7 $ (13.4) $ 289.4 $ 5.14 Adjustments, pre-tax: Fair value and timing adjustme
Slide 24: 1H FY24 contribution margin reconciliation to GAAP
1H FY24 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Midstream Other Eliminations Consolidated Six months ended March 31, 2024 Operating Income (Loss) [GAAP] $ 384.1 $ 44.7 $ 10.7 $ (1.7) $ ― $ 437.8 Operation and maintenance 238.3 10.6 18.0 9.7 (8.1) 268.5 Depreci