Slide 1: Stepping forward
Stepping forward Third quarter fiscal 2021 update August 5, 2021
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 Adam W. Woodard President and Executive Vice President Executive Vice President Vice President, Treasurer Chief Executive Officer and Chief Operating Officer and Chief Financial Officer CFO, Gas Utilities 3 Spire | Th
Slide 4: Stepping forward
Stepping forward • Executing to deliver great service and operating performance • Advancing our industry • Supporting our environmental commitment • We posted solid Q3 FY21 results • Working to ensure STL Pipeline continues to provide energy to the homes and businesses we serve 4 Spire | Third quart
Slide 5: STL Pipeline is critical energy infrastructure
STL Pipeline is critical energy infrastructure • DC Circuit Court issued an order on June 22 – Vacating FERC certificates approving STL Pipeline – Remanding case to FERC • STL Pipeline approved after thorough, rigorous regulatory review • Since Nov. 2019, STL Pipeline has reliably served eastern MO
Slide 6: Spire STL Pipeline is essential to our communities
Spire STL Pipeline is essential to our communities • Essential to serving 650,000+ homes and businesses in eastern MO • Key resource in meeting customer demand during Winter Storm Uri • Without it, providing reliable and affordable energy this winter is jeopardized – Our ability to secure new pipeli
Slide 7: Investing in growth
Investing in growth • YTD Q3 FY21 capital spend of $463M Capital expenditures (Millions) – Gas utility capex includes • $226M – pipeline replacement $476 $463 • $104M – new business (up $30M YoY) 81 29 – Lower non-utility spend 434 • On track for full-year FY21 target 394 spend of $590M – 95% for ga
Slide 8: Progressing on our Missouri rate review
Progressing on our Missouri rate review • Primary focus of rate review is recovery of capital investment – $850M+ since 2018 to make our system more safe, reliable, resilient and clean – Implementing service enhancements customers desire – Seeking to combine our Missouri utilities under one tariff •
Slide 9: Advancing natural gas and addressing sustainability
Advancing natural gas and addressing sustainability • Missouri RNG legislation (HB 734) signed into law – Allows Spire Missouri to • Invest in RNG production, gathering and delivery infrastructure • Purchase RNG and include in its gas supply portfolio • Deliver RNG to its customers – RNG infrastruct
Slide 10: Net economic earnings
Net economic earnings Per diluted Millions common share Three months ended June 30, 2021 2020 2021 2020 Net Income (Loss) [GAAP] $ 5.3 $ (92.3) $ 0.03 $ (1.87) Impairments ― 148.6 ― 2.89 Provision for ISRS rulings ― (4.8) ― (0.09) All other adjustments1 1.6 (44.2) 0.03 (0.86) Net Economic Earnings (
Slide 11: Business unit performance
Business unit performance Millions Three months ended June 30, 2021 2020 Gas Utility $ 12.3 $ 8.4 Gas Marketing (5.2) 0.1 Other (0.2) (1.2) Net Economic Earnings (NEE)1 6.9 7.3 • Gas Utility grew $3.9M – Benefit of higher rates in MO (ISRS) and AL (RSE) – Higher depreciation expense • Gas Marketing
Slide 12: Key quarterly variances
Key quarterly variances Three months ended June 30, As reported Pension (Millions) 2021 2020 Variance adjustments Variance Natural gas $ 96.9 $ 72.9 $ 24.0 $ 24.0 Operation and Maintenance Gas Utility $ 103.2 $ 115.5 $ (12.3) $ 14.2 $ 1.9 Gas Marketing 3.2 2.2 1.0 1.0 Other 5.6 7.2 (1.6) (1.6) Total
Slide 13: Affirming guidance
Affirming guidance Capital expenditures (Millions) 5-year forecast: ~$3.0B $625 $610 • FY21 NEEPS guidance range remains $590 $590 $600 $580 $4.30-$4.50 • 5-7%1 LT annual NEEPS growth 590 600 • $3.0B capex plan through 2025 560 570 580 remains on track – Focused on infrastructure upgrade $425 progra
Slide 14: Energy keeps our world turning, moving us forward.
Energy keeps our world turning, moving us forward. As an essential energy provider, we’ll keep stepping forward, advancing and innovating for a better tomorrow. 14 Spire | Third quarter fiscal 2021 update
Slide 15: Appendix
Appendix 15 Spire | Third quarter fiscal 2021 update
Slide 16: Spire is a compelling investment
Spire is a compelling investment 90%+ regulated Robust 5-year 5-7% long-term Growing Strong ESG business mix capex plan EPS growth dividend for performance 18 consecutive including 7-8% annual years environmental rate base sustainability growth Attractive yield of 3.5%1 1Based on $2.60 per share div
Slide 17: Our Spire utility portfolio
Our Spire utility portfolio Alabama Gulf Mississippi Missouri Primary office Birmingham Mobile Hattiesburg St. Louis Employees1 947 123 34 2,424 Customers1 424,800 84,400 18,400 1,186,500 Pipeline miles ~24,300 ~4,300 ~1,200 ~31,100 Rate base (Millions) $5882 $1082 $383 $2,7804 Return on equity 10.4
Slide 18: Growing our dividend
Growing our dividend Annualized common stock dividend per share Dividend yield 3.5%2 $2.70 $2.60 1 80% $2.49 $2.50 $2.37 $2.30 $2.25 Dividend payout ratio Dividend Dividend per share 70% payout ratio $2.10 $2.10 $1.96 $1.90 60% $1.70 $1.50 $1.30 50% 2016 2017 2018 2019 2020 2021 • Annualized 2021 co
Slide 19: Q3 FY21 contribution margin
Q3 FY21 contribution margin Millions Three months ended June 30, 2021 2020 Change Operating Revenues $ 327.8 $ 321.1 $ 6.7 2% Contribution Margin1 Gas Utility $ 203.9 $ 198.2 $ 5.7 3% Gas Marketing (5.1) 20.7 (25.8) NMF Other and eliminations 14.2 12.1 2.1 17% $ 213.0 $ 231.0 $ (18.0) 8% • Gas Utili
Slide 20: Enhancing our financial position
Enhancing our financial 1 Adjusted EBITDA position (Millions) • Robust and growing EBITDA1 $600 • Balanced long-term capitalization $500 Spire Alabama issued $150M $400 $575 of senior notes in Dec. 2020 $501 Spire issued $175M of equity units $300 in February 2021 $200 − Spire Missouri issued $3
Slide 21: Year-to-date results
Year-to-date results Per diluted Millions common share1 Nine months ended June 30, 2021 2020 2021 2020 Gas Utility $ 248.4 $ 221.8 Gas Marketing 37.9 11.3 Other (6.9) (10.0) Net Economic Earnings (NEE) $ 279.4 $ 223.1 $ 5.18 $ 4.14 Adjustments, pre-tax: MO regulatory adjustment 9.0 — 0.18 — Impairme
Slide 22: Q3 FY21 NEE reconciliation to GAAP
Q3 FY21 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Other Total common share2 Three months ended June 30, 2021 Net Income (Loss) [GAAP] $ 12.1 $ (6.6) $ (0.2) $ 5.3 $ 0.03 Adjustments, pre-tax: Fair value and timing adjustments 0.2 1.9 . 2.1
Slide 23: Q3 FY21 contribution margin reconciliation to GAAP
Q3 FY21 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Other Eliminations Consolidated Three months ended June 30, 2021 Operating Income (Loss) [GAAP] $ 35.6 $ (8.8) $ 6.4 $ $ 33.2 Operation and maintenance 103.2 3.2 9.2 (3.6) 112.0 Depreciation and amortization
Slide 24: Adjusted EBITDA reconciliation to GAAP
Adjusted EBITDA1 reconciliation to GAAP Nine months ended June 30, (Millions) 2021 2020 Net Income [GAAP] $ 281.6 $ 108.3 Add back: Impairments 148.6 Missouri regulatory adjustment (9.0) Interest charges 78.4 80.3 Income tax expense 68.6 16.9 Depreciation and amortization 155.4 146.8 Adjusted