Slide 1: Stepping forward
Stepping forward Year-end fiscal 2021 update November 22, 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 Scott B. Carter President and Executive Vice President Executive Vice President Senior Vice President, Chief Executive Officer and Chief Operating Officer and Chief Financial Officer Chief Operating Officer of Distrib
Slide 4: Stepping forward
Stepping forward • Our mission starts with a commitment to “Answer every challenge . . .” • We rose above challenges to deliver solid operating and financial results • We’re diligently working to ensure Spire STL Pipeline remains in service – FERC committed to act before Dec. 13 when temporary appro
Slide 5: Ensuring Spire STL Pipeline’s availability to serve customers
Ensuring Spire STL Pipeline’s availability to serve customers • The Spire STL Pipeline is critical infrastructure for meeting our customers’ needs this winter and for the long-term • Spire MO is doing everything possible to ensure customers have access to safe, reliable natural gas supply this winte
Slide 6: Investing in growth
Investing in growth Capital expenditures (Millions) • FY21 capex totaled $625M $638 $625 – Driven by gas utility investment • $307M – pipeline infrastructure upgrades • $138M – new business, up $41M YoY, 548 591 6th year in a row of increased spend – Increased investment in technology and innovation
Slide 7: Driving resilience, safety, system integrity and sustainability
Driving resilience, safety, system integrity and sustainability Employee safety Damages (OSHA – Days Away, Restricted or Transferred rate) (Per 1,000 locates) 4.78 3.22 4.24 3.89 3.87 3.74 2.63 1.88 1.56 1.51 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Leaks Methane emission reduction (Per 1,0
Slide 8: Spire Missouri rate order
Spire Missouri rate order • We’re concerned about the impact of the Amended order issued order and the rate-setting process used, given Nov. 12, 2021: – Our operating performance and service • Revenues: $72M increase to customers has been rock solid (incl. $47M of current ISRS) – We’ve consistently
Slide 9: Spire Missouri rate order – Impacts
Spire Missouri rate order – Impacts • Capital structure – Abandoned long-standing precedent of exclusion of short-term debt through a balanced examination of short-term assets and short-term liabilities during the test year – Penalized Spire Missouri for its excess gas costs incurred during Winter S
Slide 10: Spire Missouri rate order – Next steps
Spire Missouri rate order – Next steps • Assisting Staff to expedite audit of Spire MO’s compliance with their revised interpretation of acceptable capitalization methods under USOA • Subject to MoPSC approval – Goal is to have resolution by the end of Q1 calendar 2022 – Will seek clarification of o
Slide 11: Q4 FY21 net economic earnings
Q4 FY21 net economic earnings Per diluted Millions common share Three months ended September 30, 2021 2020 2021 2020 Net Loss [GAAP] $ (9.9) $ (19.7) $ (0.26) $ (0.45) All adjustments1 (3.2) 4.4 (0.06) 0.08 Net Economic Loss (NEE) $ (13.1) $ (15.3) $ (0.32) $ (0.37) Gas Utility $ (17.8) $ (8.4) Gas
Slide 12: Key quarterly variances
Key quarterly variances (Millions) As reported MO Gas Gas Net Three months ended September 30, 2021 2020 Utility Marketing variance Contribution Margin Gas Utility $ 195.8 $ 168.1 $ 25.3 $ ― $ 2.4 Gas Marketing 19.1 (5.6) 17.8 6.9 Other and eliminations 14.0 13.4 0.6 $ 228.9 $ 175.9 $ 25.3 $ 17.8 $
Slide 13: Strong financial position
Strong financial position Adjusted EBITDA1 (Millions) • Growing adjusted EBITDA1 $700 • Balanced long-term capitalization $600 $651 • Ample liquidity heading into winter $500 • Improved credit metrics at 9/30/21 $400 $552 − FFO/debt4: 15.4% $300 • Up from 14.3% last year $200 FY20 FY21 • Target rema
Slide 14: Guidance
Guidance • We remain confident in our long-term growth prospects $4.18 – 5-year capex plan of $3.1B, driving 7-8% rate base growth $4.00 (0.30) – Long-term 5-7% NEEPS growth target – FY22 will be a reset year • FY22 targeted NEEPS of $3.70-$4.00, reflecting (0.20) - $3.70 (0.35) – Pro forma capital
Slide 15: Guidance
Guidance Financing forecast1 • Financing plan reflects (Millions) – Benefit of FY21 earnings and significant improvement in credit metrics $400 – Offset by headwinds over the next ~12 $300-400 $300-400 months as we work through the MO rate $100-150 $175 order $50-100 $25-75 $25-75 FY21 FY22 FY23 FY2
Slide 16: 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. 16 S p i r e | Y e a r - e n d f i s c a l 2 0 2 1 u p d a t e
Slide 17: Appendix
Appendix 17 Spire | Year-end fiscal 2021 update
Slide 18: FY21 net economic earnings
FY21 net economic earnings Per diluted Millions common share Twelve months ended September 30, 2021 2020 2021 2020 Net Income [GAAP] $ 271.7 $ 88.6 $ 4.96 $ 1.44 Impairments ― 148.6 ― 2.89 All other adjustments1 (5.4) (29.4) (0.10) (0.57) Net Economic Earnings (NEE)2 $ 266.3 $ 207.8 $ 4.86 $ 3.76 Ga
Slide 19: FY21 contribution margin
FY21 contribution margin Millions Change Twelve months ended September 30, 2021 2020 $ % Operating Revenues $ 2,235.5 $ 1,855.4 $ 380.1 21% 1 Contribution Margin Gas Utility $ 1,063.7 $ 1,000.7 $ 63.0 6% Gas Marketing 77.6 22.4 55.2 246% Other and eliminations 53.9 44.7 9.2 21% $ 1,195.2 $ 1,067.8 $
Slide 20: Q4 FY21 NEE reconciliation to GAAP
Q4 FY21 NEE reconciliation to GAAP Gas Gas Per diluted 2 (Millions, except per share amounts) Utility Marketing Other Total common share Three months ended September 30, 2021 Net (Loss) Income [GAAP] $ (17.8) $ 11.3 $ (3.4) $ (9.9) $ (0.26) Adjustments, pre-tax: Fair value and timing adjustments ― (
Slide 21: FY21 NEE reconciliation to GAAP
FY21 NEE reconciliation to GAAP Gas Gas Per diluted 2 (Millions, except per share amounts) Utility Marketing Other Total common share Twelve months ended September 30, 2021 Net Income (Loss) [GAAP] $ 237.2 $ 44.8 $ (10.3) $ 271.7 $ 4.96 Adjustments, pre-tax: Missouri regulatory adjustments (9.0) ― ―
Slide 22: Q4 FY21 contribution margin reconciliation to GAAP
Q4 FY21 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Other Eliminations Consolidated Three months ended September 30, 2021 Operating Income [GAAP] $ 7.6 $ 15.3 $ 3.8 $ ⎯ $ 26.7 Operation and maintenance 112.0 3.5 11.3 (3.6) 123.2 Depreciation and amortization 55.4
Slide 23: FY21 contribution margin reconciliation to GAAP
FY21 contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Other Eliminations Consolidated Twelve months ended September 30, 2021 Operating Income [GAAP] $ 374.0 $ 58.5 $ 17.7 $ ⎯ $ 450.2 Operation and maintenance 422.2 17.1 40.2 (13.7) 465.8 Depreciation and amortization 2
Slide 24: Adjusted EBITDA reconciliation to GAAP; Long-term capitalization
Adjusted EBITDA1 reconciliation to GAAP Twelve months ended September 30, (Millions) 2021 2020 Net Income [GAAP] $ 271.7 $ 88.6 Add back: Impairments — 148.6 Missouri regulatory adjustment (9.0) — Interest charges 106.6 105.5 Income tax expense 68.5 12.4 Depreciation and amortization 213.1 197.3 Adj