Spire Inc. · NYSE:SR
Spire — The Laclede Group — Merger or Acquisition (April 2016)
14 slides from Spire's merger presentation, Apr 26, 2016
Slide 1: Acquisition of Mobile Gas and Willmut Gas
ACQUISITION OF MOBILE GAS AND WILLMUT GAS April 26, 2016 THE LACLEDE GROUP, INC.
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 and Executive Vice President, Chief Executive Officer Chief Operating Officer, Chief Financial Officer Distribution Operations THE LACLEDE GROUP | ACQUISITION OF MOBILE GAS AND W
Slide 3: 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 4: Executing on Our Growth Strategy
EXECUTING ON OUR GROWTH STRATEGY • Growing our gas utility business • Acquiring and integrating gas utilities • Optimizing gas supply assets • Investing in innovation 4
Slide 5: Acquisition Summary
SS ACQUISITION SUMMARY • Acquiring Mobile Gas and Willmut Gas from Sempra U.S. Gas & Power • $344 million transaction value represents 11.3 times LTM Adjusted EBITDA • Permanent financing to include balanced mix of debt and equity • Targeting close in 2016 • Close subject to customary closing condit
Slide 6: A Strategic Acquisition
A STRATEGIC ACQUISITION Grows our • Supports gas utility growth via capital investment and organic growth Gas Utility • Increases scale of regulated business, adds 104,000 natural gas customers Business • Adds growing commercial and industrial customer load Delivers on • Continues our focus on safe,
Slide 7: We Are a Gas Company at Our Core
WE ARE A GAS COMPANY AT OUR CORE • Five gas utilities across three states • Largest gas company in Missouri and Alabama • Focus on safe and reliable service, community development and growth THE LACLEDE GROUP | ACQUISITION OF MOBILE GAS AND WILLMUT GAS | APRIL 26, 2016 77
Slide 8: Our Utility Portfolio
OUR UTILITY PORTFOLIO Alagasco Laclede Gas MGE Mobile Gas Willmut Gas Founded 1852 1857 1867 1836 1933 Primary Office Birmingham St. Louis Kansas City Mobile Hattiesburg Employees 909 1,614 555 219 45 Customers 420,000 647,000 501,000 85,000 19,000 Pipeline Miles ~23,000 ~16,000 ~14,000 ~4,300 ~1,20
Slide 9: Transaction and Financing
TRANSACTION AND FINANCING • Acquiring 100% of the outstanding equity of EnergySouth, Inc. The parent of the utilities owned by Sempra U.S. Gas & Power, a unit of Sempra Energy All non-utility businesses in EnergySouth will be retained by Sempra • $344 million value represents 11.3 times LTM Adjusted
Slide 10: Earnings and Growth
EARNINGS AND GROWTH • Earnings accretive beginning in fiscal 2018 – Expected to be neutral to net economic earnings per share in fiscal 2017 – Supports our long-term net economic earnings per share growth of 4% - 6% • Cash flow supports growth in investments at the utilities • Capital expenditures –
Slide 11: Energy exists to help people
Energy exists to help people. To enrich their lives, grow their businesses, advance their communities. It’s a simple idea, but it’s one that’s at the heart of our business. THE LACLEDE GROUP | ACQUISITION OF MOBILE GAS AND WILLMUT GAS | APRIL 26, 2016 11
Slide 12: Appendix
APPENDIX THE LACLEDE GROUP | ACQUISITION OF MOBILE GAS AND WILLMUT GAS | APRIL 26, 2016 12
Slide 13: Mobile Gas
MOBILE GAS • Founded 1836 • Serves Mobile County and city of Mobile, surrounding communities, and small area to the east • Load is primarily commercial and industrial with growth potential • 94% residential customer mix • Gas supply details – Access to Gulf South, SESH, Bay Gas pipelines – 1 Bcf con
Slide 14: Willmut Gas
WILLMUT GAS • Founded 1933 • Serves Hattiesburg and dozens of other communities in south central Mississippi • Primarily commercial and industrial load • 85% residential customer mix • Gas supply via Gulf South Pipeline and Tennessee Gas Pipeline • ~1,200 miles of main and service lines Rate Base at
The Laclede Group — Merger or Acquisition (April 2016) on 6ix