Slide 1: Energizing the future
Energizing the future Year-end fiscal 2022 update November 16, 2022
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 | Year-end fiscal 2022 update
Slide 3: Energizing the future
Energizing the future • In a year marked by challenges and opportunities, we delivered for our customers • Progressed on sustainability efforts • Filed settlement in our Missouri rate review • Focused on serving and supporting our customers, managing bill impacts • Advancing our midstream businesses
Slide 4: Growing our dividend
Growing our dividend Annualized common stock dividend per share Dividend yield 4.3%2 $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 5: Spire MO 2022 rate case
Spire MO 2022 rate case • Proposed settlement filed Nov. 4 among Spire MO and parties to case – $78M revenue increase – 8.25% pre-tax ISRS rate of return – Resolution of overheads issue with deferred costs recovered in rates – Expanding programs to support customers and increase assistance • Request
Slide 6: Business updates
Business updates • Missouri ISRS – MoPSC approved $10.5M increase in ISRS effective Oct. 21, 2022 – Annualized ISRS now totals $19.0M • Alabama – Filed for annual RSE rate setting – Spread Cost Control Measure (CCM) mechanism over five years to benefit customers • Spire STL Pipeline – FERC process f
Slide 7: Investing in growth
Investing in growth Capital expenditures • FY22 capex totaled $552M (Millions) $800 – Driven by $528M gas utility investment $700 $700 $625 • $279M – pipeline infrastructure upgrades $600 34 $552 150 • $114M – new business $500 24 $400 – Investment in innovation and $300 591 technology 528 550 $200
Slide 8: Driving resilience, safety, system integrity and sustainability
Driving resilience, safety, system integrity and sustainability Employee safety Damage rate (OSHA – Days Away, Restricted or Transferred rate) (Per 1,000 locates) 4.78 3.22 4.24 3.89 3.87 3.74 3.67 2.63 1.88 1.56 1.51 1.19 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Leaks Gas utility
Slide 9: Q4 FY22 net economic earnings
Q4 FY22 net economic earnings Millions Per diluted common share 2021 2021 Three months ended September 30, 2022 As reported Run rate3 2022 As reported Run rate3 Net Loss [GAAP] $ (7.1) $ (9.9) $ (9.9) $ (0.20) $ (0.26) $ (0.26) All other adjustments1 (24.3) (3.2) (17.2) (0.46) (0.06) (0.33) Net Econ
Slide 10: Key quarterly variances
Key quarterly variances Three months ended September 30, 2021 run NSC (Millions) 2022 rate1 reclass Net variance Contribution Margin Gas Utility $ 156.9 $ 170.5 $ (13.6) Lower due to rate design timing and spreading of Cost Control Measure (CCM) Gas Marketing 53.1 1.3 51.8 Market conditions (SE); re
Slide 11: FY22 net economic earnings
FY22 net economic earnings Millions Per diluted common share 2021 2021 Twelve months ended September 30, 2022 As reported Run rate3 2022 As reported Run rate3 Net Income [GAAP] $ 220.8 $ 271.7 $ 271.7 $ 3.95 $ 4.96 $ 4.96 All other adjustments1 (4.5) (5.4) (40.4) (0.09) (0.10) (0.78) Net Economic Ea
Slide 12: Outlook
Outlook Capital expenditures forecast ~$7.0B • We remain confident in our growth $780 prospects targeting 5-7% NEEPS $720 $740 $760 growth over the longer term $700 $660 $660 $680 $700 $640 • Expanding capex plan to 10 years 150 50 770 and total investment of $7.0B 690 710 730 750 650 670 610 630 –
Slide 13: Outlook – FY23 considerations
Outlook – FY23 considerations Gas Gas Midstream Utilities Marketing businesses New rates Normal weather Normal market conditions Commodity cost Inflation Continued cost discipline Higher ISRS eligible investments Sustainability Storage expansion financing Liquidity In
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 | Year-end fiscal 2022 update
Slide 15: Appendix
Appendix 15 Spire | Year-end fiscal 2022 update
Slide 16: 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 17: 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 $2,8994 Return on equity 9.
Slide 18: Q4 2021 results reconciliation
Q4 2021 results reconciliation Three months ended September 30, As reported 2021 (Millions) 2021 Gas Utility Gas Marketing run rate1 Contribution Margin Gas Utility $ 195.8 $ 25.3 $ 170.5 Gas Marketing 19.1 17.8 1.3 Other and eliminations 14.0 - - 14.0 $ 228.9 $ 25.3 $ 17.8 $ 185.8 Operation and Mai
Slide 19: FY 2021 results reconciliation
FY 2021 results reconciliation Twelve months ended September 30, As reported Gas Utility Spire Marketing 2021 (Millions) 2021 Uri/2021 rate order Supreme Ct. ruling and Other run rate1 Contribution Margin Gas Utility $ 1,063.7 $ 31.3 $ - $ - $ 1,032.4 Gas Marketing 77.6 - - 40.4 37.2 Other and elimi
Slide 20: Key FY 2022 variances
Key FY 2022 variances Twelve months ended September 30, 2021 Net 1 (Millions) 2022 run rate NSC reclass variance Contribution Margin Gas Utility $ 1,047.7 $ 1,032.4 $ - $ 15.3 New 2021 rates partially offset by warmer weather Gas Marketing 63.3 37.2 - 26.1 Uri dispute settlement ($8.2M), H2 value cr
Slide 21: Q4 FY22 NEE run rate reconciliation
Q4 FY22 NEE run rate reconciliation Millions Per diluted common share 2021 2021 Uri/Missouri Uri/Missouri Three months ended September 30, As reported rate case Run rate1 As reported rate case Run rate1 Gas Utility $ (17.8) $ (0.5) $ (18.3) Gas Marketing 9.1 (13.5) (4.4) Other (4.4) ⎯ (4.4) Net Econ
Slide 22: Overhead treatment – MO
Overhead treatment – MO 9/30/22 New rates Future recovery Deferred O/H costs – capital Capitalized $17.3M Capitalization resumed on 10/1/22 Expensed Deferred O/H costs – cost of service Expensed and Expensed $25.5M ~$6M recovered in rates • The filed stipulation includes amortizing the total deferre
Slide 23: Q4 FY22 NEE reconciliation to GAAP
Q4 FY22 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Other Total common share2 Three months ended September 30, 2022 Net Income (Loss) [GAAP] $ (37.9) $ 36.0 $ (5.2) $ (7.1) $ (0.20) Adjustments, pre-tax: Fair value and timing adjustments ⎯. (
Slide 24: FY22 NEE reconciliation to GAAP
FY22 NEE reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Other Total common share2 Twelve months ended September 30, 2022 Net Income (Loss) [GAAP] $ 198.6 $ 35.6 $ (13.4) $ 220.8 $ 3.95 Adjustments, pre-tax: Fair value and timing adjustments ⎯. (11.4
Slide 25: Q4 FY22 contribution margin reconciliation to GAAP
Q4 FY22 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Other Eliminations Consolidated Three months ended September 30, 2022 Operating (Loss) Income [GAAP] $ (21.7) $ 47.3 $ 4.2 $ ⎯ $ 29.8 Operation and maintenance 106.8 5.5 9.1 (3.7) 117.7 Depreciation and amortizat
Slide 26: FY22 contribution margin reconciliation to GAAP
FY22 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Other Eliminations Consolidated Twelve months ended September 30, 2022 Operating Income [GAAP] $ 339.9 $ 46.9 $ 21.4 $ ⎯ $ 408.2 Operation and maintenance 413.3 14.6 37.1 (15.4) 449.6 Depreciation and amortization 2