ST.
LOUIS, Aug. 2, 2023 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2023 third quarter
ended June 30, including:
- Net loss of $21.6 million, or
($0.48) per diluted share, compared
to a net loss of $1.4 million, or
($0.10) per share, in the prior
year
- On a net economic earnings* basis, a loss of $18.6 million, or ($0.42) per share, down from earnings of
$4.1 million, or $0.01 per share, a year ago
- Fiscal 2023 net economic earnings guidance range lowered to
$4.15–$4.25 per share
"Our results for the quarter reflect the impact of higher costs,
timing of regulatory adjustments and mild weather. In addition, we
experienced less favorable market conditions that impacted our
marketing and midstream businesses," said Suzanne Sitherwood, president and chief
executive officer of Spire. "I am proud of the hard work by our
dedicated employees who continue their strong focus on serving
customers well and overall delivering solid operating performance.
Together, we will continue to drive long-term value by investing in
growth and innovation as natural gas continues to play a key role
in a sustainable energy future."
Third Quarter Results
|
|
Three Months Ended
June 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net Economic (Loss)
Earnings* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
(12.3)
|
|
|
$
|
4.2
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
(2.5)
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
3.6
|
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(7.4)
|
|
|
|
(4.8)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(18.6)
|
|
|
$
|
4.1
|
|
|
$
|
(0.42)
|
|
|
$
|
0.01
|
|
Fair value and timing
adjustments, pre-tax
|
|
|
(3.4)
|
|
|
|
(7.3)
|
|
|
|
(0.06)
|
|
|
|
(0.14)
|
|
Acquisition
activities, pre-tax
|
|
|
(0.5)
|
|
|
|
—
|
|
|
|
(0.01)
|
|
|
|
—
|
|
Income tax
adjustments
|
|
|
0.9
|
|
|
|
1.8
|
|
|
|
0.01
|
|
|
|
0.03
|
|
Net
Loss
|
|
$
|
(21.6)
|
|
|
$
|
(1.4)
|
|
|
$
|
(0.48)
|
|
|
$
|
(0.10)
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
52.5
|
|
|
|
52.2
|
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
|
We reported a consolidated net loss of $21.6 million, 0r ($0.48) per diluted share, compared to a
prior-year net loss of $1.4 million,
or ($0.10) per share. Net economic
earnings (NEE) were a loss of $18.6
million, or ($0.42) per share,
compared to earnings of $4.1 million,
or $0.01 per share, last year,
reflecting lower results across our businesses as discussed
below.
Gas Utility
The Gas Utility segment includes the regulated distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. Gas Utility reported a seasonal loss
on an NEE basis of $12.3 million,
compared to earnings of $4.2 million
in the prior year. The lower results reflect the timing of
prior-year regulatory adjustments, lower usage and higher
costs.
Contribution margin decreased $2.5
million from the prior year. Spire Missouri's margin was $4.1 million higher as new rates were only
partially offset by lower usage. Spire Alabama margins were below last year by
$4.9 million, reflecting ineffective
weather mitigation and the timing of prior-year regulatory
adjustments under Cost Control Measure. Spire Gulf margins
trailed last year by $1.7 million on
lower residential usage. Across our gas utilities, weather during
the quarter was 18% warmer than normal and 22% warmer than the
prior year, which impacted usage, especially in the early
spring.
Operation and maintenance (O&M) expenses of $111.7 million were $16.7
million higher than a year ago, or $8.4 million higher after removing a $8.3 million non-service cost transfer to other
income (no earnings impact). The net O&M increase was largely
attributable to $6 million of Spire
Missouri overhead costs that are being expensed in 2023 but were
deferred last year. The remainder of the increase was due to
slightly higher operations and customer service expenses, partially
offset by lower employee-related expenses.
Depreciation and amortization expense increased $3.6 million from last year, reflecting increased
capital investment in our gas utilities. Taxes other than income
taxes increased $2.9 million due to
higher gross receipts taxes, which are passed through to
customers.
Gas Utility interest expenses, net of carrying cost credits at
Spire Missouri, were $31.1 million
compared to $20.1 million in the
prior year due to sustained higher average borrowing levels at
higher interest rates in support of capital expenditures and other
working capital items that remain to be collected from
customers.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing services throughout
the United States. NEE, which
excludes mark-to-market and other fair value adjustments, was a
loss of $2.5 million, compared to
earnings of $0.4 million in the prior
year. The lower earnings were driven by less favorable conditions
and higher demand charges and storage costs.
Midstream
NEE of $3.6 million for the
Midstream segment, which includes Spire STL Pipeline and Spire
Storage West, declined $0.7 million
from the prior year due to the timing of short-term storage
optimization activities.
Other
Corporate costs, on an NEE basis, totaled $7.4 million, up from $4.8
million a year ago, reflecting higher interest expense and
corporate costs.
Year-to-Date Results
|
|
Nine Months Ended
June 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
234.5
|
|
|
$
|
240.6
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
45.0
|
|
|
|
15.3
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
11.6
|
|
|
|
9.8
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(25.4)
|
|
|
|
(18.0)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
265.7
|
|
|
$
|
247.7
|
|
|
$
|
4.83
|
|
|
$
|
4.54
|
|
Fair value and timing
adjustments, pre-tax
|
|
|
(22.2)
|
|
|
|
(20.9)
|
|
|
|
(0.42)
|
|
|
|
(0.40)
|
|
Acquisition
activities, pre-tax
|
|
|
(0.5)
|
|
|
|
—
|
|
|
|
(0.01)
|
|
|
|
—
|
|
Income tax
adjustments
|
|
|
5.6
|
|
|
|
1.1
|
|
|
|
0.11
|
|
|
|
0.02
|
|
Net
Income
|
|
$
|
248.6
|
|
|
$
|
227.9
|
|
|
$
|
4.51
|
|
|
$
|
4.16
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
52.6
|
|
|
|
52.0
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For the first nine months of fiscal 2023, we reported
consolidated net income of $248.6
million ($4.51 per diluted
share) compared to $227.9 million
($4.16 per share) from the prior
year. NEE for the nine months ended June 30,
2023, was $265.7 million
($4.83 per share), up from
$247.7 million ($4.54 per share) a year ago. The increases
reflect the strong results from Spire Marketing in the first half
of the fiscal year. More detail about our businesses is discussed
below.
Gas Utility
For the first nine months of fiscal 2023, the Gas Utility
segment reported NEE of $234.5
million, down from $240.6
million a year ago, reflecting a higher contribution margin
that was more than offset by higher O&M, depreciation and
amortization, and interest costs.
Year-to-date Gas Utility contribution margin increased by
$68.6 million, reflecting improved
margins from rate resets, partially offset by lower usage and the
timing of regulatory adjustments in Alabama and higher costs.
Weather for the nine months was 15% warmer than normal and 7%
warmer than the prior year, and while weather mitigation largely
worked as designed in Missouri, it
did not fully mitigate lower usage in Alabama.
O&M expenses of $350.9 million
increased by $44.4 million compared
to the prior-year period, or $35.5 million after removing an $8.9 million non-service cost transfer to other
income (no earnings impact). The increase in O&M also reflects
approximately $18 million in overhead
costs expensed in fiscal 2023 versus deferral last year. Excluding
those items, O&M expenses increased by $17.5 million, as a $14.4
million increase in non-payroll operations costs and
$4.8 million in higher bad debt
expense were partially offset by lower employee-related costs.
Depreciation and amortization rose by $12.4 million reflecting capital investment
across our utilities. Taxes other than income taxes increased by
$25.9 million reflecting primarily
higher gross receipts taxes.
Gas Utility interest expense, net of carrying cost credits at
Spire Missouri, were $90.0 million,
up from $58.9 million in the
prior year, due to much higher interest rates on slightly higher
borrowing levels associated with capital expenditures and other
working capital items.
Gas Marketing
NEE was $45.0 million in the first
nine months of fiscal 2023, up from $15.3
million in the prior-year period. The significant increase
in year-over-year performance was driven by favorable market
conditions in the first half of this fiscal year that allowed us to
optimize storage and transportation positions. First half
favorability was partially offset by less favorable conditions in
the third quarter, including higher demand charges and storage
costs.
Midstream
NEE for the Midstream segment totaled $11.6 million, an increase of $1.8 million over the prior year, reflecting
optimization of withdrawal commitments at Spire Storage.
Other
Corporate costs on an NEE basis were $25.4 million, compared to $18.0 million in the prior-year period,
reflecting higher interest costs and corporate expenses.
Balance Sheets and Cash Flow
For the third quarter of fiscal 2023, short-term borrowings
outstanding at June 30, 2023, were
$557.6 million, down from
$1,037.5 million at the end of fiscal
2022 and $709.2 million a year ago.
In the third quarter of fiscal 2023, we executed forward sales
agreements for approximately 2.09 million shares, including a block
of 1.74 million shares that must be settled on or before
December 28, 2023. We also have a
forward sale agreement for approximately 229,000 shares that must
settle by the end of September
2023.
Net cash provided by operating activities was $404.1 million for the nine months ended
June 30, 2023, up from $204.6 million for the comparable period a year
ago. The increase reflects higher net income in the current year
and recovery of deferred gas costs.
Capital expenditures for the first nine months of fiscal 2023
were $483.3 million, up from
$402.5 million last year, reflecting
the planned higher investment for both our Gas Utility and
Midstream segments, including expansion of Spire Storage West.
For additional details on Spire's results for the third quarter
and first nine months of fiscal 2023, please see the accompanying
unaudited Condensed Consolidated Statements of Income, Balance
Sheets, and Statements of Cash Flows.
Regulatory Update
Missouri
On June 20, 2023, Spire Missouri
filed with the Missouri Public Service Commission (MoPSC) a request
for $14.2 million in additional
Infrastructure System Replacement Surcharge (ISRS) revenues,
reflecting infrastructure upgrade investment for the period March –
August 2023. A decision on this
filing is required by December 17,
2023. As previously reported, the MoPSC approved an
incremental annual ISRS revenue increase of $7.7 million, effective May 6, 2023.
Guidance and Outlook
We remain confident in our long-term ability to grow NEE per
share 5–7% given our growth strategy and planned capital investment
in infrastructure upgrades, new business and innovation. We are
adjusting our expectations for our gas utilities due to lower
margins since most of our recoveries occur during the winter and
early spring. While we will continue to exercise cost controls to
offset a portion of this shortfall, we are reducing our fiscal 2023
NEE per share guidance range to $4.15–$4.25 and lowering the NEE range for the
Gas Utility segment by $5
million.
NEE by
segment
|
($
Millions)
|
FY23 target
|
Gas Utility
|
$205 - $215
|
Gas
Marketing
|
43 - 48
|
Midstream
|
10 - 12
|
Corporate &
Other
|
(25) - (30)
|
Our targeted capital investment for the 10-year period through
fiscal 2032 remains $7 billion, which
is anticipated to drive 7–8% utility rate base growth. Expected
capital expenditures for fiscal 2023 remain $700 million.
Dividends
The Spire board of directors has declared a quarterly common
stock dividend of $0.72 per share,
payable October 3, 2023, to
shareholders of record on September 11,
2023. We have continuously paid a cash common stock dividend
since 1946, with 2023 marking the 20th consecutive year of
increasing dividends on an annualized basis.
The board also declared the regular quarterly dividend of
$0.36875 per depositary share on
Spire's 5.90% Series A Cumulative Redeemable Preferred Stock
payable November 15, 2023, to holders
of record on October 25, 2023.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2023 third quarter and nine months financial results. To
access the call, please dial the applicable number approximately
5-10 minutes in advance.
Date and Time:
|
|
Wednesday, August
2
|
|
|
|
|
8 a.m. CT (9 a.m.
ET)
|
|
|
|
|
|
|
|
Phone Numbers:
|
|
U.S. and
Canada:
|
|
844-824-3832
|
|
|
International:
|
|
412-317-5142
|
The webcast can be accessed at
Investors.SpireEnergy.com under Events & presentations. A
replay of the call will be available at 10
a.m. CT (11 a.m. ET) on
August 2 until September 6, 2023, by dialing 877-344-7529
(U.S.), 855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is
4585691.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make
people's lives better. It's a simple idea, but one that's at the
heart of our company. Every day we serve 1.7 million homes and
businesses making us one of the largest publicly traded natural gas
companies in the country. We help families and business owners fuel
their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related business
segments include Spire Marketing and Spire Midstream. We are
committed to transforming our business through growing organically,
investing in infrastructure, and advancing through innovation.
Learn more at SpireEnergy.com.
Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Spire's future operating results may be affected by
various uncertainties and risk factors, many of which are beyond
the Company's control, including weather conditions, economic
factors, the competitive environment, governmental and regulatory
policy and action, and risks associated with acquisitions. More
complete descriptions and listings of these uncertainties and risk
factors can be found in the Company's annual (Form 10-K) filing
with the Securities and Exchange Commission.
This news release includes the non-GAAP financial measures of
"net economic earnings," "net economic earnings per share," and
"contribution margin." Management also uses these non-GAAP measures
internally when evaluating the Company's performance and results of
operations. Net economic earnings exclude from net income, as
applicable, the impacts of fair value accounting and timing
adjustments associated with energy-related transactions, the
impacts of acquisition, divestiture and restructuring activities
and the largely non-cash impacts of impairments and other
non-recurring or unusual items such as certain regulatory,
legislative, or GAAP standard-setting actions. The fair value and
timing adjustments, which primarily impact the Gas Marketing
segment, include net unrealized gains and losses on energy-related
derivatives resulting from the current changes in the fair value of
financial and physical transactions prior to their completion and
settlement, lower of cost or market inventory adjustments, and
realized gains and losses on economic hedges prior to the sale of
the physical commodity. Management believes that excluding these
items provides a useful representation of the economic impact of
actual settled transactions and overall results of ongoing
operations. Contribution margin adjusts revenues to remove the
costs that are directly passed on to customers and collected
through revenues, which are the wholesale cost of natural gas and
gross receipts taxes. These internal non-GAAP operating metrics
should not be considered as an alternative to, or more meaningful
than, GAAP measures such as operating income, net income, or
earnings per share.
Condensed
Consolidated Statements of Income – Unaudited
|
|
(In Millions, except
per share amounts)
|
|
Three Months Ended
June 30,
|
|
|
Nine Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Operating
Revenues
|
|
$
|
418.5
|
|
|
$
|
448.0
|
|
|
$
|
2,355.9
|
|
|
$
|
1,884.3
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
169.8
|
|
|
|
203.3
|
|
|
|
1,175.5
|
|
|
|
844.5
|
|
Operation and
maintenance
|
|
|
125.5
|
|
|
|
102.3
|
|
|
|
389.7
|
|
|
|
331.9
|
|
Depreciation and
amortization
|
|
|
64.3
|
|
|
|
60.4
|
|
|
|
189.0
|
|
|
|
176.2
|
|
Taxes, other than
income taxes
|
|
|
46.9
|
|
|
|
44.1
|
|
|
|
179.2
|
|
|
|
153.3
|
|
Total Operating
Expenses
|
|
|
406.5
|
|
|
|
410.1
|
|
|
|
1,933.4
|
|
|
|
1,505.9
|
|
Operating
Income
|
|
|
12.0
|
|
|
|
37.9
|
|
|
|
422.5
|
|
|
|
378.4
|
|
Interest Expense,
Net
|
|
|
46.7
|
|
|
|
29.3
|
|
|
|
137.5
|
|
|
|
85.4
|
|
Other Income (Expense),
Net
|
|
|
6.3
|
|
|
|
(12.1)
|
|
|
|
19.3
|
|
|
|
(8.1)
|
|
(Loss) Income Before
Income Taxes
|
|
|
(28.4)
|
|
|
|
(3.5)
|
|
|
|
304.3
|
|
|
|
284.9
|
|
Income Tax (Benefit)
Expense
|
|
|
(6.8)
|
|
|
|
(2.1)
|
|
|
|
55.7
|
|
|
|
57.0
|
|
Net (Loss)
Income
|
|
|
(21.6)
|
|
|
|
(1.4)
|
|
|
|
248.6
|
|
|
|
227.9
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
11.1
|
|
|
|
11.1
|
|
(Loss) income
allocated to participating securities
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
0.4
|
|
|
|
0.3
|
|
Net (Loss) Income
Available to Common Shareholders
|
|
$
|
(25.2)
|
|
|
$
|
(5.1)
|
|
|
$
|
237.1
|
|
|
$
|
216.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
52.5
|
|
|
|
52.2
|
|
|
|
52.5
|
|
|
|
51.9
|
|
Diluted
|
|
|
52.5
|
|
|
|
52.2
|
|
|
|
52.6
|
|
|
|
52.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (Loss) Earnings
Per Common Share
|
|
$
|
(0.48)
|
|
|
$
|
(0.10)
|
|
|
$
|
4.52
|
|
|
$
|
4.17
|
|
Diluted (Loss) Earnings
Per Common Share
|
|
$
|
(0.48)
|
|
|
$
|
(0.10)
|
|
|
$
|
4.51
|
|
|
$
|
4.16
|
|
Dividends Declared Per
Common Share
|
|
$
|
0.72
|
|
|
$
|
0.685
|
|
|
$
|
2.16
|
|
|
$
|
2.055
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
|
(In
Millions)
|
|
June
30,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
8,016.7
|
|
|
$
|
7,664.9
|
|
|
$
|
7,549.7
|
|
Less: Accumulated
depreciation and amortization
|
|
|
2,382.9
|
|
|
|
2,294.5
|
|
|
|
2,256.7
|
|
Net Utility
Plant
|
|
|
5,633.8
|
|
|
|
5,370.4
|
|
|
|
5,293.0
|
|
Non-utility
Property
|
|
|
582.7
|
|
|
|
491.4
|
|
|
|
476.9
|
|
Other
Investments
|
|
|
102.5
|
|
|
|
87.8
|
|
|
|
90.5
|
|
Total Other Property
and Investments
|
|
|
685.2
|
|
|
|
579.2
|
|
|
|
567.4
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
5.3
|
|
|
|
6.5
|
|
|
|
16.0
|
|
Accounts receivable,
net
|
|
|
338.6
|
|
|
|
622.7
|
|
|
|
587.2
|
|
Inventories
|
|
|
243.1
|
|
|
|
422.3
|
|
|
|
300.3
|
|
Other
|
|
|
274.2
|
|
|
|
540.5
|
|
|
|
357.6
|
|
Total Current
Assets
|
|
|
861.2
|
|
|
|
1,592.0
|
|
|
|
1,261.1
|
|
Deferred Charges and
Other Assets
|
|
|
2,857.3
|
|
|
|
2,542.1
|
|
|
|
2,662.4
|
|
Total Assets
|
|
$
|
10,037.5
|
|
|
$
|
10,083.7
|
|
|
$
|
9,783.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and
paid-in capital
|
|
|
1,630.9
|
|
|
|
1,623.8
|
|
|
|
1,622.5
|
|
Retained
earnings
|
|
|
1,028.4
|
|
|
|
905.5
|
|
|
|
949.2
|
|
Accumulated other
comprehensive income
|
|
|
31.2
|
|
|
|
47.2
|
|
|
|
32.2
|
|
Total Shareholders'
Equity
|
|
|
2,932.5
|
|
|
|
2,818.5
|
|
|
|
2,845.9
|
|
Temporary
equity
|
|
|
17.7
|
|
|
|
13.1
|
|
|
|
15.0
|
|
Long-term debt (less
current portion)
|
|
|
3,553.3
|
|
|
|
2,958.5
|
|
|
|
3,207.9
|
|
Total
Capitalization
|
|
|
6,503.5
|
|
|
|
5,790.1
|
|
|
|
6,068.8
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
406.6
|
|
|
|
281.2
|
|
|
|
31.2
|
|
Notes
payable
|
|
|
557.6
|
|
|
|
1,037.5
|
|
|
|
709.2
|
|
Accounts
payable
|
|
|
196.3
|
|
|
|
617.4
|
|
|
|
581.2
|
|
Accrued liabilities
and other
|
|
|
369.9
|
|
|
|
417.5
|
|
|
|
428.3
|
|
Total Current
Liabilities
|
|
|
1,530.4
|
|
|
|
2,353.6
|
|
|
|
1,749.9
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
735.9
|
|
|
|
675.1
|
|
|
|
675.8
|
|
Pension and
postretirement benefit costs
|
|
|
154.7
|
|
|
|
163.0
|
|
|
|
199.6
|
|
Asset retirement
obligations
|
|
|
538.1
|
|
|
|
520.9
|
|
|
|
535.4
|
|
Regulatory
liabilities
|
|
|
428.1
|
|
|
|
418.2
|
|
|
|
389.0
|
|
Other
|
|
|
146.8
|
|
|
|
162.8
|
|
|
|
165.4
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
2,003.6
|
|
|
|
1,940.0
|
|
|
|
1,965.2
|
|
Total Capitalization
and Liabilities
|
|
$
|
10,037.5
|
|
|
$
|
10,083.7
|
|
|
$
|
9,783.9
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Nine Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
248.6
|
|
|
$
|
227.9
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
189.0
|
|
|
|
176.2
|
|
Deferred income taxes
and investment tax credits
|
|
|
55.7
|
|
|
|
57.0
|
|
Changes in assets and
liabilities
|
|
|
(99.4)
|
|
|
|
(262.6)
|
|
Other
|
|
|
10.2
|
|
|
|
6.1
|
|
Net cash provided by
operating activities
|
|
|
404.1
|
|
|
|
204.6
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(483.3)
|
|
|
|
(402.5)
|
|
Payment for business
acquisition
|
|
|
(37.0)
|
|
|
|
—
|
|
Other
|
|
|
3.9
|
|
|
|
4.2
|
|
Net cash used in
investing activities
|
|
|
(516.4)
|
|
|
|
(398.3)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
755.0
|
|
|
|
300.0
|
|
Repayment of long-term
debt
|
|
|
(31.2)
|
|
|
|
(55.8)
|
|
(Repayment) issuance
of short-term debt, net
|
|
|
(479.9)
|
|
|
|
37.2
|
|
Issuance of common
stock
|
|
|
4.0
|
|
|
|
51.9
|
|
Dividends paid on
common stock
|
|
|
(112.5)
|
|
|
|
(105.9)
|
|
Dividends paid on
preferred stock
|
|
|
(11.1)
|
|
|
|
(11.1)
|
|
Other
|
|
|
(7.5)
|
|
|
|
(3.8)
|
|
Net cash provided by
financing activities
|
|
|
116.8
|
|
|
|
212.5
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash,
Cash Equivalents, and Restricted Cash
|
|
|
4.5
|
|
|
|
18.8
|
|
Cash, Cash Equivalents,
and Restricted Cash at Beginning of Period
|
|
|
20.5
|
|
|
|
11.3
|
|
Cash, Cash Equivalents,
and Restricted Cash at End of Period
|
|
$
|
25.0
|
|
|
$
|
30.1
|
|
Net Economic
Earnings and Reconciliation to GAAP
|
|
(In Millions, except
per share amounts)
|
|
Gas
Utility
|
|
|
Gas
Marketing
|
|
|
Midstream
|
|
|
Other
|
|
|
Total
|
|
|
Per Diluted Common
Share (2)
|
|
Three Months Ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
[GAAP]
|
|
$
|
(12.4)
|
|
|
$
|
(4.9)
|
|
|
$
|
3.1
|
|
|
$
|
(7.4)
|
|
|
$
|
(21.6)
|
|
|
$
|
(0.48)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
0.2
|
|
|
|
3.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.4
|
|
|
|
0.06
|
|
Acquisition
activities
|
|
|
—
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.01
|
|
Income tax
adjustments (1)
|
|
|
(0.1)
|
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.9)
|
|
|
|
(0.01)
|
|
Net Economic (Loss)
Earnings [Non-GAAP]
|
|
$
|
(12.3)
|
|
|
$
|
(2.5)
|
|
|
$
|
3.6
|
|
|
$
|
(7.4)
|
|
|
$
|
(18.6)
|
|
|
$
|
(0.42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
4.2
|
|
|
$
|
(5.1)
|
|
|
$
|
4.3
|
|
|
$
|
(4.8)
|
|
|
$
|
(1.4)
|
|
|
$
|
(0.10)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
7.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.3
|
|
|
|
0.14
|
|
Income tax
adjustments (1)
|
|
|
—
|
|
|
|
(1.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.8)
|
|
|
|
(0.03)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
4.2
|
|
|
$
|
0.4
|
|
|
$
|
4.3
|
|
|
$
|
(4.8)
|
|
|
$
|
4.1
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
234.0
|
|
|
$
|
28.9
|
|
|
$
|
11.1
|
|
|
$
|
(25.4)
|
|
|
$
|
248.6
|
|
|
$
|
4.51
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
0.7
|
|
|
|
21.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22.2
|
|
|
|
0.42
|
|
Acquisition
activities
|
|
|
—
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.01
|
|
Income tax
adjustments (1)
|
|
|
(0.2)
|
|
|
|
(5.4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5.6)
|
|
|
|
(0.11)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
234.5
|
|
|
$
|
45.0
|
|
|
$
|
11.6
|
|
|
$
|
(25.4)
|
|
|
$
|
265.7
|
|
|
$
|
4.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
236.5
|
|
|
$
|
(0.4)
|
|
|
$
|
9.8
|
|
|
$
|
(18.0)
|
|
|
$
|
227.9
|
|
|
$
|
4.16
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
20.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20.9
|
|
|
|
0.40
|
|
Income tax
adjustments (1)
|
|
|
4.1
|
|
|
|
(5.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.1)
|
|
|
|
(0.02)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
240.6
|
|
|
$
|
15.3
|
|
|
$
|
9.8
|
|
|
$
|
(18.0)
|
|
|
$
|
247.7
|
|
|
$
|
4.54
|
|
(1) Income tax
adjustments include amounts calculated by applying federal, state,
and local income tax rates applicable to ordinary income to the
amounts of the pre-tax reconciling items, and for the nine months
ended June 30, 2022, include a Spire Missouri regulatory
adjustment.
|
|
(2) Net economic
earnings per share is calculated by replacing consolidated net
income with consolidated net economic earnings in the GAAP diluted
EPS calculation, which includes reductions for cumulative preferred
dividends and participating shares.
|
Contribution Margin
and Reconciliation to GAAP
|
|
(In
Millions)
|
|
Gas
Utility
|
|
|
Gas
Marketing
|
|
|
Midstream
|
|
|
Other
|
|
|
Eliminations
|
|
|
Consolidated
|
|
Three Months Ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
13.9
|
|
|
$
|
(7.1)
|
|
|
$
|
6.5
|
|
|
$
|
(1.3)
|
|
|
$
|
—
|
|
|
$
|
12.0
|
|
Operation and
maintenance expenses
|
|
|
111.7
|
|
|
|
4.2
|
|
|
|
8.1
|
|
|
|
5.5
|
|
|
|
(4.0)
|
|
|
|
125.5
|
|
Depreciation and
amortization
|
|
|
61.7
|
|
|
|
0.3
|
|
|
|
2.1
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
64.3
|
|
Taxes, other than
income taxes
|
|
|
45.9
|
|
|
|
0.4
|
|
|
|
0.7
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
46.9
|
|
Less: Gross receipts
tax expense
|
|
|
(26.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(26.0)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
207.2
|
|
|
|
(2.2)
|
|
|
|
17.4
|
|
|
|
4.3
|
|
|
|
(4.0)
|
|
|
|
222.7
|
|
Natural gas
costs
|
|
|
154.6
|
|
|
|
25.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10.1)
|
|
|
|
169.8
|
|
Gross receipts tax
expense
|
|
|
26.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26.0
|
|
Operating
Revenues
|
|
$
|
387.8
|
|
|
$
|
23.1
|
|
|
$
|
17.4
|
|
|
$
|
4.3
|
|
|
$
|
(14.1)
|
|
|
$
|
418.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
36.8
|
|
|
$
|
(6.9)
|
|
|
$
|
7.4
|
|
|
$
|
0.6
|
|
|
$
|
—
|
|
|
$
|
37.9
|
|
Operation and
maintenance expenses
|
|
|
95.0
|
|
|
|
3.2
|
|
|
|
4.8
|
|
|
|
3.2
|
|
|
|
(3.9)
|
|
|
|
102.3
|
|
Depreciation and
amortization
|
|
|
58.1
|
|
|
|
0.3
|
|
|
|
1.8
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
60.4
|
|
Taxes, other than
income taxes
|
|
|
43.0
|
|
|
|
0.4
|
|
|
|
0.6
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
44.1
|
|
Less: Gross receipts
tax expense
|
|
|
(23.2)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23.3)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
209.7
|
|
|
|
(3.1)
|
|
|
|
14.6
|
|
|
|
4.1
|
|
|
|
(3.9)
|
|
|
|
221.4
|
|
Natural gas
costs
|
|
|
144.5
|
|
|
|
67.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8.3)
|
|
|
|
203.3
|
|
Gross receipts tax
expense
|
|
|
23.2
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23.3
|
|
Operating
Revenues
|
|
$
|
377.4
|
|
|
$
|
64.1
|
|
|
$
|
14.6
|
|
|
$
|
4.1
|
|
|
$
|
(12.2)
|
|
|
$
|
448.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
367.1
|
|
|
$
|
36.7
|
|
|
$
|
21.1
|
|
|
$
|
(2.4)
|
|
|
$
|
—
|
|
|
$
|
422.5
|
|
Operation and
maintenance expenses
|
|
|
350.9
|
|
|
|
16.2
|
|
|
|
20.1
|
|
|
|
14.4
|
|
|
|
(11.9)
|
|
|
|
389.7
|
|
Depreciation and
amortization
|
|
|
181.6
|
|
|
|
1.0
|
|
|
|
6.0
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
189.0
|
|
Taxes, other than
income taxes
|
|
|
176.2
|
|
|
|
1.1
|
|
|
|
1.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
179.2
|
|
Less: Gross receipts
tax expense
|
|
|
(116.4)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(116.6)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
959.4
|
|
|
|
54.8
|
|
|
|
49.1
|
|
|
|
12.4
|
|
|
|
(11.9)
|
|
|
|
1,063.8
|
|
Natural gas
costs
|
|
|
1,099.5
|
|
|
|
102.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(26.8)
|
|
|
|
1,175.5
|
|
Gross receipts tax
expense
|
|
|
116.4
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
116.6
|
|
Operating
Revenues
|
|
$
|
2,175.3
|
|
|
$
|
157.8
|
|
|
$
|
49.1
|
|
|
$
|
12.4
|
|
|
$
|
(38.7)
|
|
|
$
|
2,355.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
361.6
|
|
|
$
|
(0.4)
|
|
|
$
|
17.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
378.4
|
|
Operation and
maintenance expenses
|
|
|
306.5
|
|
|
|
9.1
|
|
|
|
16.4
|
|
|
|
11.6
|
|
|
|
(11.7)
|
|
|
|
331.9
|
|
Depreciation and
amortization
|
|
|
169.2
|
|
|
|
1.0
|
|
|
|
5.6
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
176.2
|
|
Taxes, other than
income taxes
|
|
|
150.3
|
|
|
|
0.8
|
|
|
|
2.1
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
153.3
|
|
Less: Gross receipts
tax expense
|
|
|
(96.8)
|
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(97.1)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
890.8
|
|
|
|
10.2
|
|
|
|
41.3
|
|
|
|
12.1
|
|
|
|
(11.7)
|
|
|
|
942.7
|
|
Natural gas
costs
|
|
|
710.7
|
|
|
|
160.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(27.1)
|
|
|
|
844.5
|
|
Gross receipts tax
expense
|
|
|
96.8
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
97.1
|
|
Operating
Revenues
|
|
$
|
1,698.3
|
|
|
$
|
171.4
|
|
|
$
|
41.3
|
|
|
$
|
12.1
|
|
|
$
|
(38.8)
|
|
|
$
|
1,884.3
|
|
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
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SOURCE Spire Inc.