ST.
LOUIS, May 3, 2023 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2023 second
quarter ended March 31. Highlights
include:
- Net income of $179.2 million
($3.33 per diluted share) compared to
net income of $173.6 million, or
$3.27 per share in the prior year
- Net economic earnings* of $199.2
million, or $3.70 per share,
up from $181.0 million, or
$3.42 per share a year ago, driven by
improved results across all operating segment
- Fiscal 2023 net economic earnings guidance range narrowed to
$4.20–$4.30 per share
"We delivered improved results for the second quarter, with
continued strong performance from our gas marketing and midstream
businesses and higher earnings from our gas utilities, despite warm
winter weather," said Suzanne
Sitherwood, president and chief executive officer of Spire.
"We continue to benefit from a diverse business mix in the natural
gas space, and from robust investment in growth, infrastructure,
innovation, and energy efficiency. We believe the future for our
industry and our company is bright, as we work to ensure a safe,
reliable, affordable and sustainable energy future."
Second Quarter Results
|
|
Three Months Ended
March 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
183.9
|
|
|
$
|
169.2
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
21.8
|
|
|
|
14.4
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
4.2
|
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(10.7)
|
|
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
199.2
|
|
|
$
|
181.0
|
|
|
$
|
3.70
|
|
|
$
|
3.42
|
|
Fair value and timing adjustments, pre-tax
|
|
|
(26.6)
|
|
|
|
(9.9)
|
|
|
|
(0.50)
|
|
|
|
(0.20)
|
|
Income tax
adjustments
|
|
|
6.6
|
|
|
|
2.5
|
|
|
|
0.13
|
|
|
|
0.05
|
|
Net
Income
|
|
$
|
179.2
|
|
|
$
|
173.6
|
|
|
$
|
3.33
|
|
|
$
|
3.27
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
52.6
|
|
|
|
51.9
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For the quarter ended March 31,
2023, we reported consolidated growth in net income of
$5.6 million and NEE of
$18.2 million. All segments reflected
improved results in the quarter-over-quarter comparisons, as
discussed below.
Gas Utility
The Gas Utility segment includes the regulated distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. For the second quarter of fiscal
2023, Gas Utility reported NEE of $183.9
million, up $14.7 million
from last year as higher contribution margins were
partially offset by higher expenses including from regulatory
cost recovery and other non-employee costs.
Contribution margin increased $41.7
million from the prior year reflecting new rates, partially
offset by lower usage due to over 21% warmer weather compared to
normal for our Utilities combined. Weather adjustment mechanisms
did not fully mitigate the impact of these mild temperatures,
especially in Alabama.
Operation and maintenance (O&M) expenses of $119.3 million were $12.4 million higher than a year ago, after
consideration of a $2.7 million
benefit from non-service costs which is offset in other
income. The higher expenses include approximately $6 million of Spire Missouri overhead costs that
are expensed in 2023 but were deferred last year pending the 2022
Missouri rate order. Bad debt expense, customer service, and other
distribution operations costs were also higher.
Depreciation and amortization expense increased by $3.7 million from last year due to increased
capital investment, and taxes other than income taxes increased by
$10.1 million, driven by
$8.1 million increase in pass-through
taxes.
Gas utility interest expenses, net of carrying cost credits at
Spire Missouri, was $30.0 million
compared to $19.0 million in the
prior year, with the increase resulting from higher average
borrowing levels and interest rates.
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
$21.8 million, compared to
$14.4 million in the prior year.
The $7.4 million increase in
year-over-year performance was driven by the continuation of
favorable market conditions that created opportunities to optimize
storage and transportation positions. Prior-year results also
include a $6.2 million reserve
release related to the resolution of commercial disputes from
Winter Storm Uri.
Midstream
NEE for the Midstream segment, which includes Spire STL Pipeline
and Spire Storage, totaled $4.2
million, up from $3.0 million
a year ago, reflecting increased opportunities to optimize
operational and withdrawal commitments at Spire Storage.
Other
Corporate costs, on an NEE basis totaled $10.7 million, up from $5.6 million a year ago, primarily due to
increased interest expense reflecting higher rates and average
short-term borrowing balances.
Regulatory Update
Missouri
On December 27, 2022, Spire
Missouri filed with the Missouri Public Service Commission (MoPSC)
a request for Infrastructure System Replacement (ISRS) revenues,
reflecting infrastructure upgrade investments for the period
October 2022 – February 2023. On April
20, 2023, the MoPSC approved an incremental annual ISRS
revenue increase of $7.7 million
effective May 6, 2023.
Year-to-Date
Results
|
|
Six Months Ended
March 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
246.8
|
|
|
$
|
236.4
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
47.5
|
|
|
|
14.9
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
8.0
|
|
|
|
5.5
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(18.0)
|
|
|
|
(13.2)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
284.3
|
|
|
$
|
243.6
|
|
|
$
|
5.26
|
|
|
$
|
4.56
|
|
Fair value and timing
adjustments, pre-tax
|
|
|
(18.8)
|
|
|
|
(13.6)
|
|
|
|
(0.36)
|
|
|
|
(0.27)
|
|
Income tax
adjustments
|
|
|
4.7
|
|
|
|
(0.7)
|
|
|
|
0.09
|
|
|
|
(0.01)
|
|
Net
Income
|
|
$
|
270.2
|
|
|
$
|
229.3
|
|
|
$
|
4.99
|
|
|
$
|
4.28
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
52.6
|
|
|
|
51.8
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For the first six months of fiscal 2023, we reported
consolidated net income growth of $40.9 million and NEE growth of $40.7 million. Gas Marketing continued to deliver
strong results through the second quarter. Gas Utility results also
improved primarily from new rates, while higher Midstream
earnings were driven by Storage optimization
opportunities.
Gas Utility
For the first half of fiscal 2023, Gas Utility reported NEE of
$246.8 million, up $10.4 million from last year as higher
contribution margins were partially offset by higher costs and net
interest expense.
Contribution margin increased $71.1
million from the prior year, with Spire Missouri and Spire
Alabama contributing $54.6 and
$7.8 million from rate resets,
partially offset by lower usage as weather was almost 15% warmer
than normal and 6% warmer than the prior year. Spire Gulf and Spire
Mississippi also contributed $8.7
million to the year-over-year increase due to similar
factors.
O&M expenses of $239.2 million were $27.0 million higher than a year ago after
consideration of a $0.7 million
benefit from non-service costs which is offset in other
income. The higher costs include approximately $12.0 million in Spire Missouri general
overhead costs that were being deferred in the prior-year period.
O&M, net of expensed overheads and bad debt, was up roughly
$9.5 million, due to similar trends
we experienced in the quarter. These increases were partially
offset by lower insurance and employee-related costs.
Depreciation and amortization expense increased by $8.8 million from last year, and other taxes —
primarily pass-through taxes — increased by $23.0 million, both reflecting recent
capital investment.
Gas Utility interest expense, net of carrying cost credits
for the six months ended March 31,
2023, was $58.7 million
compared to $38.7 million for the
prior-year quarter. The $20.0 million
increase was driven by higher average borrowing levels and
rates.
Gas Marketing
NEE improved $32.6 million. The significant increase in
year-over-year performance was driven by market conditions that
created opportunities to optimize storage and transportation
positions. Prior-year results were also impacted by a
$6.2 million reserve release that
occurred in the second quarter of fiscal 2022 as noted on the
discussion of quarterly results.
Midstream
NEE for the Midstream segment totaled $8.0 million for the first half of fiscal 2023,
up from $5.5 million a year ago, as
Storage was able to optimize operational and withdrawal
commitments.
Other
Corporate costs, primarily interest expense on corporate
borrowings, on an NEE basis totaled $18.0
million this quarter, compared to $13.2 million a year ago, with higher interest
expense being the primary driver.
Balance Sheets and Cash Flow
For the second quarter of fiscal 2023, we maintained a balanced
capital structure and ample liquidity. Short-term borrowings
outstanding at March 31, 2023, were
$561.0 million, down from
$1,037.5 million at the end of fiscal
2022 and $607.1 million a year
ago. On February 13, 2023, Spire
Missouri issued $400 million of
10-year first mortgage bonds with a 4.80% coupon. Proceeds were
used to pay down short-term borrowings related to natural gas costs
and for general corporate purposes. On March
7, 2023, Spire issued $150
million of 10-year senior notes with a 5.80% coupon. The
proceeds will be used primarily to finance Storage investments and
for general corporate purposes.
Net cash provided by operating activities was $179.9 million for the six months ended
March 31, 2023, up from $155.1 million for the comparable period a year
ago. The increase reflects higher net income in the current year,
combined with higher recovery of deferred gas costs partially
offset by other working capital variances.
Capital expenditures for the first half of fiscal 2023 were
$307.8 million, compared to
$275.9 million last
year.
For additional details on Spire's results for the second quarter
and first half of fiscal 2023, please see the accompanying
unaudited Condensed Consolidated Statements of Income, Balance
Sheets, and Statements of Cash Flows.
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. The base
year for this growth is the midpoint of our original fiscal 2023
earnings guidance ($4.15 per
share).
Reflecting results for the first half of our fiscal year, we are
narrowing our fiscal 2023 NEE per share guidance range to
$4.20–$4.30, and adjusting the NEE
ranges at our business units as follows:
NEE by segment
|
($
Millions)
|
FY23 target
|
Gas Utility
|
$210 - $220
|
Gas
Marketing
|
43 - 48
|
Midstream
|
10 - 12
|
Corporate &
Other
|
(25) - (30)
|
The ranges above reflect the strong performance of our Gas
Marketing and Midstream businesses, offset by the impacts of lower
margins during the winter just concluded (Gas Utilities) and high
interest expenses (Gas Utilities and Corporate costs).
Our targeted capital investment for the 10-year period through
fiscal 2023 remains $7 billion,
which is anticipated to drive 7–8% utility rate base growth.
Expected capital expenditures for fiscal 2023 remain
$700 million, including our Midstream expansion for Spire
Storage, which remains on plan.
Dividends
The Spire board of directors has declared a quarterly common stock
dividend of $0.72 per share,
payable July 5, 2023, to shareholders
of record on June 12, 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 August 15, 2023, to holders
of record on July 25, 2023.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2023 second quarter financial results. To access
the call, please dial the applicable number approximately 5-10
minutes in advance.
Date and
Time:
|
|
Wednesday, May
3
|
|
|
|
|
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 May 3 until June 3, 2023, by dialing 877-344-7529 (U.S.),
855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is
3649315.
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
company 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 businesses
include Spire Marketing, Spire STL Pipeline and Spire Storage. 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
March 31,
|
|
|
Six Months Ended
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Operating
Revenues
|
|
$
|
1,123.4
|
|
|
$
|
880.9
|
|
|
$
|
1,937.4
|
|
|
$
|
1,436.3
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
586.5
|
|
|
|
392.0
|
|
|
|
1,005.7
|
|
|
|
641.2
|
|
Operation and
maintenance
|
|
|
132.1
|
|
|
|
113.2
|
|
|
|
264.2
|
|
|
|
229.6
|
|
Depreciation and
amortization
|
|
|
62.6
|
|
|
|
58.9
|
|
|
|
124.7
|
|
|
|
115.8
|
|
Taxes, other than
income taxes
|
|
|
81.9
|
|
|
|
71.6
|
|
|
|
132.3
|
|
|
|
109.2
|
|
Total Operating
Expenses
|
|
|
863.1
|
|
|
|
635.7
|
|
|
|
1,526.9
|
|
|
|
1,095.8
|
|
Operating
Income
|
|
|
260.3
|
|
|
|
245.2
|
|
|
|
410.5
|
|
|
|
340.5
|
|
Interest Expense,
Net
|
|
|
47.2
|
|
|
|
27.5
|
|
|
|
90.8
|
|
|
|
56.1
|
|
Other Income (Expense),
Net
|
|
|
7.0
|
|
|
|
(3.4)
|
|
|
|
13.0
|
|
|
|
4.0
|
|
Income Before Income
Taxes
|
|
|
220.1
|
|
|
|
214.3
|
|
|
|
332.7
|
|
|
|
288.4
|
|
Income Tax
Expense
|
|
|
40.9
|
|
|
|
40.7
|
|
|
|
62.5
|
|
|
|
59.1
|
|
Net Income
|
|
|
179.2
|
|
|
|
173.6
|
|
|
|
270.2
|
|
|
|
229.3
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
7.4
|
|
|
|
7.4
|
|
Income allocated to
participating securities
|
|
|
0.4
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
0.3
|
|
Net Income Available to
Common Shareholders
|
|
$
|
175.1
|
|
|
$
|
169.7
|
|
|
$
|
262.3
|
|
|
$
|
221.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
52.5
|
|
|
|
51.8
|
|
|
|
52.5
|
|
|
|
51.7
|
|
Diluted
|
|
|
52.6
|
|
|
|
51.9
|
|
|
|
52.6
|
|
|
|
51.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Common Share
|
|
$
|
3.33
|
|
|
$
|
3.27
|
|
|
$
|
5.00
|
|
|
$
|
4.28
|
|
Diluted Earnings Per
Common Share
|
|
$
|
3.33
|
|
|
$
|
3.27
|
|
|
$
|
4.99
|
|
|
$
|
4.28
|
|
Dividends Declared Per
Common Share
|
|
$
|
0.72
|
|
|
$
|
0.685
|
|
|
$
|
1.44
|
|
|
$
|
1.37
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
|
(In
Millions)
|
|
March
31,
|
|
|
September
30,
|
|
|
March
31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
7,892.4
|
|
|
$
|
7,664.9
|
|
|
$
|
7,443.7
|
|
Less: Accumulated
depreciation and amortization
|
|
|
2,358.5
|
|
|
|
2,294.5
|
|
|
|
2,241.9
|
|
Net Utility
Plant
|
|
|
5,533.9
|
|
|
|
5,370.4
|
|
|
|
5,201.8
|
|
Non-utility
Property
|
|
|
520.4
|
|
|
|
491.4
|
|
|
|
475.8
|
|
Other
Investments
|
|
|
131.3
|
|
|
|
87.8
|
|
|
|
89.0
|
|
Total Other Property
and Investments
|
|
|
651.7
|
|
|
|
579.2
|
|
|
|
564.8
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
6.9
|
|
|
|
6.5
|
|
|
|
8.3
|
|
Accounts receivable,
net
|
|
|
579.1
|
|
|
|
622.7
|
|
|
|
599.5
|
|
Inventories
|
|
|
204.3
|
|
|
|
422.3
|
|
|
|
168.3
|
|
Other
|
|
|
321.3
|
|
|
|
540.5
|
|
|
|
313.2
|
|
Total Current
Assets
|
|
|
1,111.6
|
|
|
|
1,592.0
|
|
|
|
1,089.3
|
|
Deferred Charges and
Other Assets
|
|
|
2,751.8
|
|
|
|
2,542.1
|
|
|
|
2,545.4
|
|
Total Assets
|
|
$
|
10,049.0
|
|
|
$
|
10,083.7
|
|
|
$
|
9,401.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and
paid-in capital
|
|
|
1,629.1
|
|
|
|
1,623.8
|
|
|
|
1,593.2
|
|
Retained
earnings
|
|
|
1,089.5
|
|
|
|
905.5
|
|
|
|
992.3
|
|
Accumulated other
comprehensive income
|
|
|
25.9
|
|
|
|
47.2
|
|
|
|
13.7
|
|
Total Shareholders'
Equity
|
|
|
2,986.5
|
|
|
|
2,818.5
|
|
|
|
2,841.2
|
|
Temporary
equity
|
|
|
18.8
|
|
|
|
13.1
|
|
|
|
11.8
|
|
Long-term debt (less
current portion)
|
|
|
3,702.5
|
|
|
|
2,958.5
|
|
|
|
3,207.3
|
|
Total
Capitalization
|
|
|
6,707.8
|
|
|
|
5,790.1
|
|
|
|
6,060.3
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
256.6
|
|
|
|
281.2
|
|
|
|
31.2
|
|
Notes
payable
|
|
|
561.0
|
|
|
|
1,037.5
|
|
|
|
607.1
|
|
Accounts
payable
|
|
|
232.3
|
|
|
|
617.4
|
|
|
|
367.5
|
|
Accrued liabilities
and other
|
|
|
357.0
|
|
|
|
417.5
|
|
|
|
390.0
|
|
Total Current
Liabilities
|
|
|
1,406.9
|
|
|
|
2,353.6
|
|
|
|
1,395.8
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
737.9
|
|
|
|
675.1
|
|
|
|
666.5
|
|
Pension and
postretirement benefit costs
|
|
|
158.6
|
|
|
|
163.0
|
|
|
|
199.2
|
|
Asset retirement
obligations
|
|
|
531.5
|
|
|
|
520.9
|
|
|
|
530.1
|
|
Regulatory
liabilities
|
|
|
360.3
|
|
|
|
418.2
|
|
|
|
400.4
|
|
Other
|
|
|
146.0
|
|
|
|
162.8
|
|
|
|
149.0
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
1,934.3
|
|
|
|
1,940.0
|
|
|
|
1,945.2
|
|
Total Capitalization
and Liabilities
|
|
$
|
10,049.0
|
|
|
$
|
10,083.7
|
|
|
$
|
9,401.3
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Six Months Ended
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
270.2
|
|
|
$
|
229.3
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
124.7
|
|
|
|
115.8
|
|
Deferred income taxes
and investment tax credits
|
|
|
62.5
|
|
|
|
59.1
|
|
Changes in assets and
liabilities
|
|
|
(284.2)
|
|
|
|
(252.1)
|
|
Other
|
|
|
6.7
|
|
|
|
3.0
|
|
Net cash provided by
operating activities
|
|
|
179.9
|
|
|
|
155.1
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(307.8)
|
|
|
|
(275.9)
|
|
Advance payment for
business acquisition
|
|
|
(37.1)
|
|
|
|
—
|
|
Other
|
|
|
4.2
|
|
|
|
2.7
|
|
Net cash used in
investing activities
|
|
|
(340.7)
|
|
|
|
(273.2)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
755.0
|
|
|
|
300.0
|
|
Repayment of long-term
debt
|
|
|
(31.2)
|
|
|
|
(55.8)
|
|
Repayment of
short-term debt, net
|
|
|
(476.5)
|
|
|
|
(64.9)
|
|
Issuance of common
stock
|
|
|
3.6
|
|
|
|
24.0
|
|
Dividends paid on
common stock
|
|
|
(74.5)
|
|
|
|
(70.1)
|
|
Dividends paid on
preferred stock
|
|
|
(7.4)
|
|
|
|
(7.4)
|
|
Other
|
|
|
(7.5)
|
|
|
|
(3.8)
|
|
Net cash provided by
financing activities
|
|
|
161.5
|
|
|
|
122.0
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash,
Cash Equivalents, and Restricted Cash
|
|
|
0.7
|
|
|
|
3.9
|
|
Cash, Cash Equivalents,
and Restricted Cash at Beginning of Period
|
|
|
20.5
|
|
|
|
11.3
|
|
Cash, Cash Equivalents,
and Restricted Cash at End of Period
|
|
$
|
21.2
|
|
|
$
|
15.2
|
|
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
March 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
183.5
|
|
|
$
|
2.2
|
|
|
$
|
4.2
|
|
|
$
|
(10.7)
|
|
|
$
|
179.2
|
|
|
$
|
3.33
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
0.5
|
|
|
|
26.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26.6
|
|
|
|
0.50
|
|
Income tax
adjustments (1)
|
|
|
(0.1)
|
|
|
|
(6.5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.6)
|
|
|
|
(0.13)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
183.9
|
|
|
$
|
21.8
|
|
|
$
|
4.2
|
|
|
$
|
(10.7)
|
|
|
$
|
199.2
|
|
|
$
|
3.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
169.2
|
|
|
$
|
7.0
|
|
|
$
|
3.0
|
|
|
$
|
(5.6)
|
|
|
$
|
173.6
|
|
|
$
|
3.27
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
9.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9.9
|
|
|
|
0.20
|
|
Income tax
adjustments (1)
|
|
|
—
|
|
|
|
(2.5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.5)
|
|
|
|
(0.05)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
169.2
|
|
|
$
|
14.4
|
|
|
$
|
3.0
|
|
|
$
|
(5.6)
|
|
|
$
|
181.0
|
|
|
$
|
3.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
246.4
|
|
|
$
|
33.8
|
|
|
$
|
8.0
|
|
|
$
|
(18.0)
|
|
|
$
|
270.2
|
|
|
$
|
4.99
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
0.5
|
|
|
|
18.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18.8
|
|
|
|
0.36
|
|
Income tax
adjustments (1)
|
|
|
(0.1)
|
|
|
|
(4.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4.7)
|
|
|
|
(0.09)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
246.8
|
|
|
$
|
47.5
|
|
|
$
|
8.0
|
|
|
$
|
(18.0)
|
|
|
$
|
284.3
|
|
|
$
|
5.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
232.3
|
|
|
$
|
4.7
|
|
|
$
|
5.5
|
|
|
$
|
(13.2)
|
|
|
$
|
229.3
|
|
|
$
|
4.28
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
13.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13.6
|
|
|
|
0.27
|
|
Income tax
adjustments (1)
|
|
|
4.1
|
|
|
|
(3.4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.7
|
|
|
|
0.01
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
236.4
|
|
|
$
|
14.9
|
|
|
$
|
5.5
|
|
|
$
|
(13.2)
|
|
|
$
|
243.6
|
|
|
$
|
4.56
|
|
|
|
(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 six months ended March
31, 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
March 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
251.3
|
|
|
$
|
2.4
|
|
|
$
|
7.5
|
|
|
$
|
(0.9)
|
|
|
$
|
—
|
|
|
$
|
260.3
|
|
Operation and
maintenance expenses
|
|
|
119.3
|
|
|
|
5.7
|
|
|
|
6.2
|
|
|
|
4.9
|
|
|
|
(4.0)
|
|
|
|
132.1
|
|
Depreciation and
amortization
|
|
|
60.2
|
|
|
|
0.4
|
|
|
|
2.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
62.6
|
|
Taxes, other than
income taxes
|
|
|
80.4
|
|
|
|
0.6
|
|
|
|
0.8
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
81.9
|
|
Less: Gross receipts
tax expense
|
|
|
(60.0)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(60.2)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
451.2
|
|
|
|
8.9
|
|
|
|
16.5
|
|
|
|
4.1
|
|
|
|
(4.0)
|
|
|
|
476.7
|
|
Natural gas
costs
|
|
|
543.3
|
|
|
|
51.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8.3)
|
|
|
|
586.5
|
|
Gross receipts tax
expense
|
|
|
60.0
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
60.2
|
|
Operating
Revenues
|
|
$
|
1,054.5
|
|
|
$
|
60.6
|
|
|
$
|
16.5
|
|
|
$
|
4.1
|
|
|
$
|
(12.3)
|
|
|
$
|
1,123.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
230.4
|
|
|
$
|
9.6
|
|
|
$
|
5.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
245.2
|
|
Operation and
maintenance expenses
|
|
|
104.2
|
|
|
|
3.2
|
|
|
|
5.8
|
|
|
|
4.2
|
|
|
|
(4.2)
|
|
|
|
113.2
|
|
Depreciation and
amortization
|
|
|
56.5
|
|
|
|
0.4
|
|
|
|
1.9
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
58.9
|
|
Taxes, other than
income taxes
|
|
|
70.3
|
|
|
|
0.4
|
|
|
|
0.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
71.6
|
|
Less: Gross receipts
tax expense
|
|
|
(51.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(51.9)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
409.5
|
|
|
|
13.6
|
|
|
|
13.8
|
|
|
|
4.3
|
|
|
|
(4.2)
|
|
|
|
437.0
|
|
Natural gas
costs
|
|
|
356.0
|
|
|
|
45.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.8)
|
|
|
|
392.0
|
|
Gross receipts tax
expense
|
|
|
51.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51.9
|
|
Operating
Revenues
|
|
$
|
817.4
|
|
|
$
|
59.4
|
|
|
$
|
13.8
|
|
|
$
|
4.3
|
|
|
$
|
(14.0)
|
|
|
$
|
880.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
353.2
|
|
|
$
|
43.8
|
|
|
$
|
14.6
|
|
|
$
|
(1.1)
|
|
|
$
|
—
|
|
|
$
|
410.5
|
|
Operation and
maintenance expenses
|
|
|
239.2
|
|
|
|
12.0
|
|
|
|
12.0
|
|
|
|
8.9
|
|
|
|
(7.9)
|
|
|
|
264.2
|
|
Depreciation and
amortization
|
|
|
119.9
|
|
|
|
0.7
|
|
|
|
3.9
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
124.7
|
|
Taxes, other than
income taxes
|
|
|
130.3
|
|
|
|
0.7
|
|
|
|
1.2
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
132.3
|
|
Less: Gross receipts
tax expense
|
|
|
(90.4)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(90.6)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
752.2
|
|
|
|
57.0
|
|
|
|
31.7
|
|
|
|
8.1
|
|
|
|
(7.9)
|
|
|
|
841.1
|
|
Natural gas
costs
|
|
|
944.9
|
|
|
|
77.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(16.7)
|
|
|
|
1,005.7
|
|
Gross receipts tax
expense
|
|
|
90.4
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
90.6
|
|
Operating
Revenues
|
|
$
|
1,787.5
|
|
|
$
|
134.7
|
|
|
$
|
31.7
|
|
|
$
|
8.1
|
|
|
$
|
(24.6)
|
|
|
$
|
1,937.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
324.8
|
|
|
$
|
6.5
|
|
|
$
|
9.8
|
|
|
$
|
(0.6)
|
|
|
$
|
—
|
|
|
$
|
340.5
|
|
Operation and
maintenance expenses
|
|
|
211.5
|
|
|
|
5.9
|
|
|
|
11.6
|
|
|
|
8.4
|
|
|
|
(7.8)
|
|
|
|
229.6
|
|
Depreciation and
amortization
|
|
|
111.1
|
|
|
|
0.7
|
|
|
|
3.8
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
115.8
|
|
Taxes, other than
income taxes
|
|
|
107.3
|
|
|
|
0.4
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
109.2
|
|
Less: Gross receipts
tax expense
|
|
|
(73.6)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(73.8)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
681.1
|
|
|
|
13.3
|
|
|
|
26.7
|
|
|
|
8.0
|
|
|
|
(7.8)
|
|
|
|
721.3
|
|
Natural gas
costs
|
|
|
566.2
|
|
|
|
93.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(18.8)
|
|
|
|
641.2
|
|
Gross receipts tax
expense
|
|
|
73.6
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
73.8
|
|
Operating
Revenues
|
|
$
|
1,320.9
|
|
|
$
|
107.3
|
|
|
$
|
26.7
|
|
|
$
|
8.0
|
|
|
$
|
(26.6)
|
|
|
$
|
1,436.3
|
|
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.