Slide 1: Energizing the future
Energizing the future First quarter fiscal 2022 update February 2, 2022
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 President and Executive Vice President Executive Vice President Chief Executive Officer and Chief Operating Officer and Chief Financial Officer 3 Spire | First quarter fiscal 2022 update
Slide 4: Energizing the future
Energizing the future • We continued to “answer every challenge” in keeping with our mission – Moving forward to achieve a fair and reasonable regulatory outcome in MO – Working to secure a permanent operating certificate for Spire STL Pipeline • We remain focused on our strategy and commitments – I
Slide 5: Spire Missouri rate order
Spire Missouri rate order • New rates effective Dec. 23, 2021, based on amended MoPSC order on Nov. 12 • Order significantly deviated from precedents on: – Rate of return: including short-term debt without including all current assets – Recovery of non-operating overheads: • Capitalization – Pausing
Slide 6: Spire STL Pipeline
Spire STL Pipeline • On Dec. 3, the FERC issued a new open-ended temporary operating certificate – Provides certainty of winter gas supply – Allows the pipeline to operate while FERC remand process proceeds • As part of the remand process underway, the FERC filed a notice of intent to prepare a supp
Slide 7: Investing in growth
Investing in growth Capital expenditures (Millions) $175 $164 • Q1 FY22 capex totaled $146M $150 14 $146 5 – Driven by gas utility investment $125 • $69M – infrastructure upgrades $100 • $39M – new business $75 150 141 – Lower non-utility spend $50 $25 • 5-year capex plan of $3.1B $0 – Driven by uti
Slide 8: Q1 FY22 net economic earnings
Q1 FY22 net economic earnings Per diluted Millions common share Three months ended December 31, 2021 2020 2021 2020 Net Income [GAAP] $ 55.7 $ 88.9 $ 1.01 $ 1.65 Adjustments1 6.9 (12.0) 0.13 (0.23) Net Economic Earnings (NEE)2 $ 62.6 $ 76.9 $ 1.14 $ 1.42 NEE by segment Gas Utility $ 67.2 $ 76.4 Gas
Slide 9: Key quarterly variances
Key quarterly variances (Millions) As reported MO Gas Net Three months ended December 30, 2021 2020 Utility OH NSC reclass variance 1 Contribution Margin Gas Utility $ 271.6 $ 272.2 $ ― $ (0.6) Gas Marketing (0.3) 24.1 (24.4) Other and eliminations 13.0 13.4 (0.4) $ 284.3 $ 309.7 $ ― $ ― $ (25.4) Op
Slide 10: Outlook
Outlook • We remain confident in our long-term growth prospects – 5-year capex plan of $3.1B, driving 7-8% rate base growth – Long-term 5-7% NEEPS growth target • FY22 targeted NEEPS remains $3.70-$4.00 – Reflecting lower rate of return pending the next MO rate case – Lower end of range reflects the
Slide 11: Energizing the future
Energizing the future Our energy warms homes, fuels businesses and advances communities. As we step forward, we're laying the groundwork for an innovative, resilient and sustainable energy future. 11 Spire | First quarter fiscal 2022 update
Slide 12: Appendix
Appendix 12 Spire | First quarter fiscal 2022 update
Slide 13: Growing our dividend
Growing our dividend Annualized common stock dividend per share Dividend yield 4.2%2 $2.90 1 $2.74 $2.70 $2.60 $2.49 $2.50 $2.37 Dividend per share $2.30 $2.25 $2.10 $2.10 $1.96 $1.90 $1.70 $1.50 $1.30 2016 2017 2018 2019 2020 2021 2022 • Annualized 2022 common stock dividend increased 5.4% to $2.74
Slide 14: Net economic earnings reconciliation to GAAP
Net economic earnings reconciliation to GAAP Gas Gas Per diluted (Millions, except per share amounts) Utility Marketing Other Total common share2 Three months ended December 31, 2021 Net Income (Loss) [GAAP] $ 63.1 $ (2.3) $ (5.1) $ 55.7 $ 1.01 Adjustments, pre-tax: Fair value and timing adjustments
Slide 15: Contribution margin reconciliation to GAAP
Contribution margin reconciliation to GAAP Gas Gas (Millions) Utility Marketing Other Eliminations Consolidated Three months ended December 31, 2021 Operating Income (Loss) [GAAP] $ 94.4 $ (3.1) $ 4.0 $ ⎯ $ 95.3 Operation and maintenance 107.3 2.7 10.0 (3.6) 116.4 Depreciation and amortization 54.6