Spire Inc. · NYSE:SR
Spire — Q1 2023 Earnings Presentation
16 slides from Spire's earnings presentation, Feb 1, 2023
Slide 1: Delivering essential energy: First quarter fiscal 2023 update
Delivering essential energy First quarter fiscal 2023 update February 1, 2023
Slide 2: 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 2 Spire | First quarter fiscal 2023 update
Slide 3: The future of natural gas is bright
The future of natural gas is bright • AGA’s focus for our industry includes – Promoting the role gas plays in economic growth, energy security and sustainability – Advocating for a balanced energy policy – Ensuring consumers have a choice • Reliance on abundant and domestic natural gas is large and
Slide 4: We're delivering essential energy
We’re delivering essential energy • Spire is committed to strong operations and quality service through – Investing in system safety, reliability, innovation and technology – Continued reduction in emissions – Managing gas costs and O&M to mitigate customer bill impacts – Expanding customer assistan
Slide 5: Investment update: Capital expenditures
Investment update Capital expenditures (Millions) • Q1 FY23 capex totaled $155M $155 $146 8 driven by gas utility investment 5 – $74M – infrastructure upgrades – $37M – new business 141 147 • FY23 projected spend remains $700M • Gas utility spend focused on Q1 FY22 Q1 FY23 Gas Utility Midstream – Up
Slide 6: Regulatory wrap up
Regulatory wrap up • MO rate review concluded with new rates effective Dec. 26 • Deferred gas costs to be recovered over the next 12-18 months1 • Filed for $8.8M in ISRS revenues • New rates effective Jan. 1 for Spire Alabama and Spire Gulf • Spire STL Pipeline received permanent FERC operating cert
Slide 7: Q1 FY23 net economic earnings
Q1 FY23 net economic earnings Per diluted Millions common share Three months ended December 31, 2022 2021 2022 2021 Net Income [GAAP] $ 91.0 $ 55.7 $ 1.66 $ 1.01 Adjustments1 (5.9) 6.9 (0.11) 0.13 Net Economic Earnings (NEE)2 $ 85.1 $ 62.6 $ 1.55 $ 1.14 NEE by segment Gas Utility $ 62.9 $ 67.2 Gas M
Slide 8: Key quarterly variances
Key quarterly variances (Millions) As reported NSC Net Three Months ended December 31, 2022 2021 reclass variance Contribution Margin1 Gas Utility $ 301.0 $ 271.6 $ - $ 29.4 Full-year impact at 2021 rates and higher volumes Gas Marketing 48.1 (0.3) - 48.4 Capitalized on favorable market conditions f
Slide 9: Outlook
Outlook • Re-affirming long-term 5-7% NEEPS1 NEE by segment ($ Millions) growth FY22 FY23 – From original FY23 guidance midpoint actual target ($4.15) Gas Utility $203 $225 − $235 – Supported by 7-8% utility rate base growth Gas Marketing 27 25 − 30 • Reaffirming capital spend targets for Midstream
Slide 10: Natural gas is a vital part of an affordable and sustainable energy future
Natural gas is a vital part of an affordable and sustainable energy future. As an essential energy provider, we’ll keep stepping forward, deepening relationships with our customers and innovating for a better tomorrow. 10 Spire | First quarter fiscal 2023 update
Slide 11: Appendix
Appendix 11 Spire | First quarter fiscal 2023 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 Employees1 1,009 127 39 2,347 Customers1 430,100 84,200 18,400 1,199,900 Pipeline miles ~24,400 ~4,200 ~1,200 ~31,400 Rate base (Millions) $6342 $1172 $493 Return on equity 9.70%4 9.9
Slide 14: Growing our dividend
Growing our dividend Annualized common stock dividend per share Dividend yield 4.2%1 $2.882 $2.74 $2.60 Dividend per share $2.49 $2.37 $2.25 2018 2019 2020 2021 2022 2023 • Annualized 2023 common stock dividend increased 5.1% to $2.88 per share • Supported by long-term earnings growth • 2023 marks 2
Slide 15: Q1 FY23 NEE reconciliation to GAAP
Q1 FY23 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, 2022 Net Income (Loss) [GAAP] $ 62.9 $ 31.6 $ 3.8 $ (7.3) $ 91.0 $ 1.66 Adjustments, pre-tax: Fair value and timing adjust
Slide 16: Q1 FY23 contribution margin reconciliation to GAAP
Q1 FY23 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Midstream Other Eliminations Consolidated Three months ended December 31, 2022 Operating Income (Loss) [GAAP] $ 101.9 $ 41.4 $ 7.1 $ (0.2) $ ⎯ $ 150.2 Operation and maintenance 119.9 6.3 5.8 4.0 (3.9) 132.1 Depre