Spire Inc. · NYSE:SR
Spire — Q3 2024 Earnings Presentation
23 slides from Spire's earnings presentation, Jul 31, 2024
Slide 1: The Future is Bright
The Future is Bright Third quarter fiscal 2024 update July 31, 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 | Third quarter fiscal 2
Slide 3: Q3 FY24 key messages
Q3 FY24 key messages • Q3 FY24 net economic loss of $0.14 per share, $0.28 better than last year • FY24 guidance range lowered to $4.15 ― $4.25 • Launched long-term customer affordability initiative • Focused on safety, continuous improvement and organic growth • Support economic development and cus
Slide 4: Gas Utility update
Gas Utility update • We remain focused on – Delivering safe and reliable natural gas – Customer affordability – Consistent and constructive regulatory outcomes • Spire Missouri approved annual ISRS revenues of $36.9M; filed for additional $17.7M in July 2024 • Spire Missouri expects to file rate cas
Slide 5: Executing robust capex plan
Executing robust capex plan YTD capital expenditures as of June 30 (Millions) $631 • YTD Q3 FY24 capex of $631M 130 – Driven by Gas Utility investment including $483 43 • $362M of infrastructure upgrades and advanced meters • $83M of new business 440 501 • Raised FY24 target to $830M driven by utili
Slide 6: Q3 FY24 net economic earnings
Q3 FY24 net economic earnings Per diluted Millions common share Three months ended June 30, 2024 2023 2024 2023 Net Loss [GAAP] $ (12.6) $ (21.6) $ (0.28) $ (0.48) Fair value and timing adjustments, pre-tax 6.2 3.4 0.11 0.06 Acquisition and restructuring activities, pre-tax 4.8 0.5 0.08 0.01 Income
Slide 7: Key Q3 FY24 variances
Key Q3 FY24 variances (Millions) As reported NEE Net Three months ended June 30, 2024 2023 adjustments variance Notes Operating Revenues Gas Utility $ 372.7 $ 387.8 $ ― $ (15.1) Lower gas cost recoveries (-$25.7); ISRS (+$6.2) Gas Marketing 21.2 23.1 ― (1.9) Lower commodity prices Midstream 32.5 17.
Slide 8: Financing update
Financing update Equity forecast (Millions) • Equity $50-100 – $112M forward sale settled Dec. 20231 – $175M Equity Units converted Mar. 20242 – ATM program $287.5 • Debt $0-50 $0-50 – $350M Spire Inc. 2-year note issued Feb. 12 • $175M for remarketing of senior notes FY24 FY25 FY26 Common and hybri
Slide 9: Outlook
Outlook • Key drivers of updated earnings by FY24 NEE target by business segment business segment (Millions) – Gas Utility: lower MO margin, higher Change at interest and bad debt expenses; timing Original Q3 updated midpoint Gas Utility $230 – 240 $213 – 221 (18) of cost savings Gas Marketing 19 –
Slide 10: Looking ahead
Looking ahead • Committed to delivering safe, reliable and affordable energy solutions for customers • Remain focused on execution, efficiencies and operational excellence • Delivering value to shareholders through targeted 5-7% long-term earnings growth 10 S p i r e | T h i r d q u a r t e r f i s
Slide 11: Appendix
Appendix 11 Spire | Third 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: 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 expected long-term 5-7% earnings growth • 2024 marks 21 consecutive years of increases; 79 years of contin
Slide 14: Q3 FY24 throughput, customer, weather and margin data
Q3 FY24 throughput, customer, weather and margin data Spire Missouri Spire Alabama Q3 FY24 Q3 FY23 Variance Q3 FY24 Q3 FY23 Variance Throughput (BCF) Residential 7.0 7.2 -2.8% 2.5 2.7 -7.4% Commercial & Industrial 3.7 4.5 -17.8% 1.8 1.9 -5.3% Transportation 10.3 10.2 1.0% 18.9 19.1 -1.0% Total 21.0
Slide 15: Q3 YTD FY24 throughput, customer, weather and margin data
Q3 YTD FY24 throughput, customer, weather and margin data Spire Missouri Spire Alabama Nine months ended June 30, 2024 2023 Variance 2024 2023 Variance Throughput (BCF) Residential 65.2 74.4 -12.4% 15.9 14.6 8.9% Commercial & Industrial 28.9 32.6 -11.3% 8.3 7.8 6.4% Transportation 35.9 36.5 -1.6% 54
Slide 16: Q3 YTD FY24 net economic earnings
Q3 YTD FY24 net economic earnings Per diluted Millions common share Nine months ended June 30, 2024 2023 2024 2023 Net Income [GAAP] $ 276.8 $ 248.6 $ 4.76 $ 4.51 Fair value and timing adjustments, pre-tax (9.2) 22.2 (0.16) 0.42 Acquisition and restructuring activities, pre-tax 6.7 0.5 0.12 0.01 Inc
Slide 17: Key Q3 YTD FY24 variances
Key Q3 YTD FY24 variances (Millions) As reported NEE Net Nine months ended June 30, 2024 2023 adjustments variance Notes Operating Revenues $ 2,299.2 $ 2,355.9 $ (2.5) $ (54.2) Lower commodity costs Contribution Margin1 Gas Utility $ 1,012.2 $ 959.4 $ ― $ 52.8 New MO rates (+$22.9) and ISRS ($11.8);
Slide 18: 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 19: 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 for ratemaking (Millions) n/a1 n/a1 $502 n/a3 Avg. common equity for ratemaking $7131 $1391 n/a n/a (Millions) Return on equity
Slide 20: Q3 FY24 NEE reconciliation to GAAP
Q3 FY24 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Midstream Other Total common share2 Three months ended June 30, 2024 Net (Loss) Income [GAAP] $ (14.4) $ (3.6) $ 13.8 $ (8.4) $ (12.6) $ (0.28) Adjustments, pre-tax: Fair value and timing ad
Slide 21: Q3 FY24 contribution margin reconciliation to GAAP
Q3 FY24 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Midstream Other Eliminations Consolidated Three months ended June 30, 2024 Operating Income (Loss) [GAAP] $ 17.0 $ (5.2) $ 18.8 $ 0.1 $ ― $ 30.7 Operation and maintenance 114.4 4.3 8.0 4.5 (4.5) 126.7 Depreciatio
Slide 22: Q3 YTD FY24 NEE reconciliation to GAAP
Q3 YTD FY24 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Midstream Other Total common share2 Nine months ended June 30, 2024 Net Income (Loss) [GAAP] $ 249.4 $ 30.7 $ 18.5 $ (21.8) $ 276.8 $ 4.76 Adjustments, pre-tax: Fair value and timing adj
Slide 23: Q3 YTD FY24 contribution margin reconciliation to GAAP
Q3 YTD FY24 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Midstream Other Eliminations Consolidated Nine months ended June 30, 2024 Operating Income (Loss) [GAAP] $ 401.1 $ 39.5 $ 29.5 $ (1.6) $ ― $ 468.5 Operation and maintenance 352.7 14.9 26.0 14.2 (12.6) 395.2 D