Spire Inc. · NYSE:SR
Spire — Laclede Group — Edward Jones MidCap Utility Conference 2008
35 slides from Spire's conference presentation, Mar 25, 2008
Slide 1: Edward Jones MidCap Utility Conference
Edward Jones MidCap Utility Conference March 25, 2008 Douglas H. Yaeger Chairman, President and Chief Executive Officer Mark D. Waltermire Chief Financial Officer
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Future operating results may be affected by various uncertainties and risk factors, many of which are beyond the control of The Laclede Group, Inc, including we
Slide 3: Company Overview
Company Overview • Public Utility Holding Company Formed 2001 • Strong Utility Platform • Growth Components Complementary to Core • Demonstrated Strategic Success • S&P Small Cap 600 Company Laclede Pipeline Company
Slide 4: Strategic Execution
Strategic Execution • Five Consecutive Years of Record Earnings – Acquisition and organic growth • Utility Operations – Strong rate case results – Stability of earnings – Operational improvements • Non-Utility Components – Logical extension of core utility business – Continued growth of Laclede Ener
Slide 5: Accessible Liquidity
Accessible Liquidity Laclede Group Laclede Gas S&P A A Moody’s A3 Fitch A- A+ • Short-Term Liquidity • Strong Credit Ratings • Continued Access to Capital Markets – Commercial Paper at favorable rates backed by Lines of Credit
Slide 6: Laclede Gas
Laclede Gas
Slide 7: Years of Service
150 Years of Service • Established as The Laclede Gas Light Company in 1857 • Original Dow Jones index company • Largest LDC in Missouri
Slide 8: Our System & Strengths
Our System & Strengths • 630,000+ Customers (83% Market Saturation) • Over 16,000 Miles of Pipe • Diversified Gas Supply • Significant Storage Capacity – Market area: 5 Bcf natural gas, 3 Bcfe liquid propane – Upstream system: 23 Bcf
Slide 9: Upstream Pipeline Transportation Set
Upstream Pipeline Transportation Set + Access * Flexibility + Reliability Peak day E Flowing gas capacity: ; Jylactede Gas
Slide 10: Regulation
Regulation • Missouri Public Service Commission • Constructive Outcomes – August 2007: $38.6 MM increase in non-gas revenues – Enhanced Weather Mitigation Rate Design (WMRD) – Infrastructure System Replacement Surcharge (ISRS) – Reduced reliance on off-system sales – Enhanced Gas Supply Incentive Pr
Slide 11: Advocacy
Advocacy • Missouri Energy Development Association – Missouri investor-owned natural gas, electric, and water utilities • Advocates measures to support utility infrastructure and services to benefit Missouri citizens and businesses – Current Chairman – Legislative achievements • Infrastructure Syste
Slide 12: Operational and Customer Focus
Operational and Customer Focus Field Technology Automated Meter Reading GIS System Green Building Initiatives Bill Redesign
Slide 13: Laclede Energy Resources
Laclede
Slide 14: Non-regulated Natural Gas Marketer
¢ Non-regulated Natural Pipelit Natural Transporation Gas Gas Marketer Services ‘Suppliers — Large retail and wholesale customer base — Organically grown — Flexible pricing alternatives — Risk management utilizing financial markets * Lock in margins * No speculation — Experienced Management daclede
Slide 15: Laclede Energy Resources
Laclede Energy Resources • Strong Performance During 2007 – 30% increase in sales volumes – Volumes delivered similar to Laclede Gas Company (107 Bcf vs. 112 Bcf) • Growth in Overall Portfolio – Additional transportation capacity and gas supplies – Increased number of counterparties • Growth in Sale
Slide 16: Current LER Footprint
75% of Business Activity 99% of Business Activity Current LER Footprint
Slide 17: Drivers of Growth
Drivers of Growth • Pipeline Expansion Projects – New marketing opportunities • Storage Expansion • New Gas Supply Basins – Shale plays • Producer Services • Additional Markets – Power generation – Ethanol business growing in the Midwest – LDCs
Slide 18: Supply basins map
Rocky Mts LNG LNG Canadian Gas Reduction
Slide 19: Growth Potential
Growth Potential dp Response to Supply and Demand Conditions
Slide 20: Laclede Pipeline Company
4 Laclede Pipeline Company
Slide 21: Laclede Pipeline Company
Laclede Pipeline Company • Uniquely Situated LPG Pipeline – Market crossroads location – Only U.S. interstate LPG pipeline with LDC customer
Slide 22: LPG Pipeline Assets
LPG Pipeline Assets • March 2006: LPC Filed an Application with FERC – Provides common carrier LPG transportation in interstate commerce – Allows propane and butane shipments by third parties – Preserves historic role re: Laclede Gas Company peaking needs • LPC’s FERC Tariff Effective April 1, 2006
Slide 23: SM&P Utility Resources
oM)P Mis » | RESOURCES, INC, Our mark is our ae Period.
Slide 24: SM&P Utility Resources
SM&P Utility Resources • Underground Locating and Marking Company - - Acquired in January 2002 – Grew business – Strengthened core management – Developed technological competencies – Built on industry leadership to provide high- quality services – Established platform for long-term growth
Slide 25: Cash Sale of SM&P
Cash Sale of SM&P • Status – Agreement signed February 15, 2008 – Closing targeted for March 31, 2008 – Sale price: $85 million • Purchase price: $43 million – Will now be part of a much larger locating entity – Proceeds will strengthen balance sheet
Slide 26: The Laclede Group Financial Review
g The Laclede Group Financial Review
Slide 27: Liquidity and Financial Capacity
Liquidity and Financial Capacity • Shelf Registration – Laclede Group: $362.4 MM remaining – Laclede Gas: $350.0 MM remaining • Financing Authority – MPSC: $500.0 MM • Lines of Credit – Laclede Group: $50.0 MM – Laclede Gas: $320.0 MM • 4-year line
Slide 28: Earnings by Segment
Earnings by Segment (IVE ip 2001 Segment 2004 Segment 2007 Segment Earnings Earnings Earnings $30.4 $36.1 $49.8 2% 40% 8% 1% 2% 97% 89% DLaclede Gas Msmep Ler Dotner Tre Laclede Group
Slide 29: Net Income
Net Income (@MM dp Diluted EPS $1.82 $1.82 $1.90 $2.30 $2.31 $0.89 $0.97 $50.0 + $45.0 + $40.0 + $35.0 4 $30.0 + $25.0 + $20.0 + $15.0 4 $10.0 4 $5.0 4 $- 4 2003 2004 2005 2006 2007 3 Mos. 3 Mos. 12/2006 12/2007 Note: The Laclede Group issued 1.725 million common shares in May 2004. Tre Laclede Grou
Slide 30: Earnings and Dividends Per Share
Earnings and Dividends Per Share Diluted Earnings Per Share Dividends Per Share
Slide 31: Stock price high, low, average
$40 $30 $20 $10 High m Low | Average — _- — 2001 2002 2003 2004 2005 2006 2007 tte Laclede Group
Slide 32: Return
Return • Since Laclede Group was formed (October 1, 2001)* – Laclede Group annualized return: 16.1% – S&P 500 Index annualized return: 6.7% • Current Fiscal Year (Beginning October 1, 2007)* – Laclede Group: 13.3% gain – S&P 500 Index: 12.0% loss *through March 18, 2008
Slide 33: Summary
Summary
Slide 34: Key Takeaways
Key Takeaways • Strong Core Gas Distribution Business – Stable earnings platform – Ongoing customer service initiatives – Focus on internal improvements • Synergistic Growth Components – LER and Laclede Pipeline expansion opportunities – Asset-based opportunities complementary to core • Focus on Sha
Slide 35: Q&A
g The Laclede Group Q&A Reliable ReturnyRationalsGrowthy Strong Dividends
Laclede Group — Edward Jones MidCap Utility Conference 2008 on 6ix