Spire (SR) 1 Feb 242024 Q1 Earnings call transcript

Good morning, and welcome to the Spire Inc.

First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Megan McPhail, Managing Director, Investor Relations. Please go ahead.

Good morning, and welcome to Spire's Fiscal 2024 First Quarter Earnings Call. news our morning, new website earnings access you terms. an on it at issued release and this may We spireenergy.com under you our website There our Investors and either presentation slide and under webcast may Presentations. Events and the from is from download or that site then it a webcast, accompanies

meaning me Securities contain safe measures. begin, harbor Reform including call, Before forward-looking Today's XXXX. use within to and Private let responses we may of statement Act of cover our questions, Litigation statements the earning the of non-GAAP

our net on their counterparts annual discussing and evaluating Although management risks by earnings factors reasonable slide Explanations there and with these economic measures filings release news margin, reconciliations are different performance results forward-looking cause operations. or be our and presentation. and These in may when anticipated. uncertainties risk non-GAAP both the SEC. In and and which are assumptions, of than statements are those GAAP to be of will results are outlined based to we contained various are both in comments, that used our future our and quarterly uncertainties performance contribution measures our

will Steve Treasurer; Executive and and Scott Scott Dudley, Also and Lindsey, the today and Relations. With Steve Vice over CEO; turn President I Rasche, call Lindsey. Executive Doyle, Steve? call the the room On Waters, Adam Vice President Vice is CFO. and to are President President in today and Steve that, COO; Investor

recent outlook. like thanking for commitment joining quarter customers dedication and review their first serving by and heating good performance and our we us you the morning, I'd on today update continuing season. Megan, enter everyone. important to begin as employees and for winter Thanks, Thank our to an our developments

quarter, as as Missouri conditions parts with extreme territory negative first Alabama windshields dipped as service last our territories customers negative experienced weather a low XX%. impacted service and of month. we year our Rigid low cold as across fiscal in warmer-than-normal Following temperatures XX%

our As a reliable we result for of well were our it and in to they our safe, gas customers when preparation positioned significant most. natural the energy affordable gas utilities, investment and communities needed and deliver

marketing to I'm tirelessly work our incredibly employees midstream proud our Our teams during and dedication for and gas gas segments, of our utilities and this time. collaboration their

achieving will We In while doing the drive on the of our in and infrastructure improvement. to strategy operational invest priorities so, remain execution grow our our continuous focused continued same: businesses, remain essential excellence.

we share of first the of $X.XX NEE During quarter, compared year ago. per delivered per economic net share to an a $X.XX earnings

results year a more Utility and Alabama. stabilization Our conditions reflect market effective RSE and to ago. matters, to now segment rate very regulatory for our In favorable marketing growth in midstream new the in rates Gas our or mechanism and under our gas return are compared equalization segments normal conditions utilities,

recall, budget recently rate may constructive we you Doyle, forward Officer. Operating Scott and nearly leadership. brings experience deep operational the and capital team leadership in has to pleased framework for common rate annual of industry Vice strategy base setting the Chief him rate purposes. Further, regulatory years this as say Scott rather and knowledge Executive deployment than and XX I'm our President welcomed As of making average equity uses with year

publicly regional a gas United As take of like for and of confident our Director tremendous traded the I'm a States. utilities from the who opportunity the one he utility inspired companies served transformation natural Chair been spans also to Board Spire comp as last Ed Glotzbach to to company and has largest gas that Ed COO, XX His XXXX. Board a since week. years service from in Directors oversee to Mississippi. company. We'd will retired Missouri of Alabama, this our across our recognize addition be will

to on Board are long considerable contributions capital member exceptional committed elected meeting support who FY delivering of last our at our closely for week. been our XXXX over growth, XXXX strongly We the expansion remaining has Spire's and Rob We'll them well to the we and a employees was We're energy Directors his execute Board and the and Chair Rob Jones, since investment success has term, the valuable our utilities Spire's our of in forward played to of we by by for success. longer value our as with Board, communities, businesses. for a governance this key on Spire, working with over to look performance going customers, I plans service. forward. At term and essential shareholders. positioned role are strong achieve focused grateful and in oversight providing gas-related provided

natural Missouri an totaled our for largely gas and million. on revenues $XX.X February be remains XXXX XXXX utilities. natural Service connecting of Year-over-year, recovery a totaled completed Spire Commission our interest pace and we to year's next rate more homes the in upgrade the for million, Public infrastructure investments. the filing update our to of on of segment million, for through In distribution investment Turning XX% investment of utility This to our the note eligible and of of first new heating on January, period. MoGas September in mid-January. Pipeline emphasis XXXX. I'm the and of base. Omega Once as increased to later Omega they our with and CapEx safe, with interconnected system. $XXX season. filed includes quarter, for MoGas The existing The expansion reliable growing and $XX Central midstream companies Steve? an Storage Pipeline and capital be over it distribution for to a interstate effective customer which nearly businesses majority and approved, as request natural and affordable the financial Missouri the with The consists Army is review completed spend a for with that gas. base ISRS CapEx with outlook. expand gas XX-mile to In West, our pipeline the Pipeline with XXX gas Omega gas businesses system, deliver Rasche resiliency Missouri. With that, our within miles the Missouri MoGas MoGas serving we XXX of Pipeline midstream guidance increase on acquisition our fits to is Spire bolster July primarily turn in our to gas STL Steve and pleased anticipated update ideal footprint primarily pipelines, South I'll in by interconnects are

good an and start Steve, certainly team delivered has morning, year standpoint our the and fiscal It interesting Thanks, weather to from congratulations. a everyone. been

a at Let's results our look outlook. take and

quarter, of roughly to earnings last $XX share $X.XX $XX.X million a we basis, year. per lower For of year. our $X.XX net than economic first compared last were million fiscal On reported earnings

And well. to we higher factors are: All earnings the of in key saw focus Missouri in our gas and our rigs first, new performed on by Alabama. utilities businesses driven

the not interest other midstream key solid results, with recur that an gain as swap. Slide And rate both lower, ago this settlement the businesses detail X of and year. saw on marketing noted, our corporate pretax $X.X delivered costs on the were provides an lastly, Secondly, we variances. reflecting acknowledgment, market year Steve did a million

expenses. expectations. lower, benefited long-term economic cost. line year. the Spire both Missouri consolidated lower offset And I from Let's effective resulting scale net larger MoGas utility as was our with to and our expenses are Midstream Marketing normalization segment costs margins Alabama. expenses. due with in Gas debt margins looking higher mentioned. debt, employee-related to at Margins as higher from acquisition levels combined due just costs highlights. weather $X.X expense due with as footprint Gas were partially say midstream lower interest in million maintenance due by last $X.X the couple higher marginally million utility and principally higher growth to And insurance short-term and residential to levels, a Marketing in reminder, and $X by Utility lower acquisition down And excluded temperatures our were and higher expense higher experience higher of compared to higher costs in lower debt we business did on due while earnings. Interest volumes. new operations were across we mechanisms rates interest a rates. expense And were And in to were these of were were million costs,

of those to $XX.X the credits and we As of rate higher credits. quarter. swap recovery billion income grew cost rate carrying interest cost on Missouri, settlement million reminder, a due of portion for the was And a our by last and last other expense get year gain the in $X.X through credits those carrying finally, above

support remain strategy fiscal Turning our in to goals. this so our confident results our and far our We year outlook. growth

earnings economic business share per guidance, by to year As 'XX a X% both our segment including net targets. result, fiscal current per economics target $X.XX are long-term earnings we share, X% our and affirming CapEx of to $X.XX and growth net of and XX-year ranges

Slide X. to Moving

remains X-year to modest unit settled Our at our our reauthorized track million, $XXX and also are conversion. for our financing equity Last ATM will meet We've on XXXX. we our this forward week, our equity remaining plan program sale unchanged. through now Board use program and equity very needs

our short-term I after As factoring seeing loan borrowings noted lower we even X-month total are in here. earlier, mentioned term

collect to substantially heating We expect this end cost deferred of by are track our gas and to recovered on season. the balances be

to refinancing an just activity, incremental million financing debt I tied $XXX long-term million acquisition. Our $XX and fund the MoGas largely through to plan is the mentioned, remarketing

Our in plans to by operationally Scott positioned is executing today And I financially. future a Relations, joined well I call. the to take to going basis XXXX. In before to of Investor interest would our opportunity and continue hedging relative in XX% Director up, Managing fiscal this and to at summary, recognize this expect forward, interest to who's range us positioned on like needs line target and are rates. we both on with Dudley, And FFO be wrap are our favorably we and rate XX%, program these debt consolidated

after of miss the friend [ many to the to FOD on IR you to in ago time many a my retiring is power phase We ], utility distinguished spanning friend. fortunate course. With a out us applies of nearly you you program, lot a in of let join that Scott Scott include term of here Best XX to space turn know, to years of that, suspect Dods spent I of listening Most convince will over very is luck your next will badge golf years. more Relations honor with to on build and were Investor Steve. Spire. career X at was me and XX today which March As back life, which or this I it of working time the our highest you,

the appreciate echo the and dedication you've would Scott. miss work, to Storage I wrap comments to your your West. in during your reliability and nothing we and Thanks, the We I growth, financial like executing hard about were will Spire capital first you And expansion your retirement. To our wish Steve. family truly over utilities enthusiasm the We displayed but deliver best And able operating years. and personality. personally investment plan, on gas while of which performance supports up, safety our quarter, and of the solid the

on our remain to beyond. focused continue We and in strategy 'XX executing fiscal year

the wish Kansas we the cheese Vegas. City Las of in the Finally, Super and to upcoming best Bowl luck

the including the are prepared That under now game. providing natural remarks. field City We're very ready provider Arrowhead playoff gas be questions. our Kansas Stadium during fringed the to We and in concludes to proud recent take warm

Shar from is today Pourreza with question first Partners. Guggenheim Our Instructions] [Operator

to Shar. the for And on usage C&I Ward give volumes maybe Missouri the mechanisms prepared this normalization you you on about weather thinking quarter the of Jamieson in us weather lower Alabama. is effective the your bit the 'XX? color Could more in and mentioned In fiscal were remarks, compared expectations? for This you're how quarter rest a normalized

Yes, think this And I and great -- Adam. question, is James.

certainly some that usage, is weather have related smaller in C&I lower we don't industrial over the think accounts. weather I that normalization commercial and of

been the of lion's think So it. that the normalization of I share factor. And that's outside always probably piece that's of

Perfect.

Okay.

cold last about in then or the And bit was part this January on $XX is weather impact the the on also there. I in fiscal quarter the QX of impacts million weather confirm extreme Could it potential on think year, you given second to wanted just significant so. second expand the weather year? of a Just

it's went QX St. Unfortunately, warm XX degrees it's is really Steve. in today funny. to Yes, extreme be here January. We from this cold in going to in Louis. Jameson,

we quickly next to the the and how it quarter, it's clearly and So then That of happened want west through amazing get we'll changes. winter, market. we update

businesses. our all I well assured think we the rest of is were positioned that across

So well. our we served customers

were well hang in our we And get side, just business, update earnings everybody tight, and in on actually On midstream we first we'll once positioned were positioned marketing, the call. well utility through foremost, winter, too. next and we the

Sunderland The Richard JPMorgan. next is question from with

second if the normalization. a Maybe looking like I you're plus what XQ wondering of reaffirming guidance, to really there. XQ Jamieson's but reaffirm given if that XQ January and I'm budget frame just question get take another versus stab And at itself? you working weather at considering results realize sounds can that weather trying of sense is to here

January is this take we at Rich, everybody then Steve. shot else know I'll can was. and -- in. where We a weigh it look obviously

of And winter, all and have the to we as it'd the we and why January, and impossible weather can customer we with. with quarter again, our certain support pulls that we as very to expectations were we to we manage, as we focus the the that's on And not that get units. But includes we customers. had results to it's do, that things And they that are about with and have And demand think the deal cold what our at weather our in before serve always that. through deal stuff first we of then So we look in earnings even our be business across ranges comfortable across businesses. our the things have all classes. pushes

out. think and the quarter very the how of can were plays you rest our results So see assured I rest of for first the winter the plans year, we'll supportive

then out. X on helpful front? And with called forward the the context on books unpacking diving of year? That's O&M are Anything there. the now? O&M your target if there some that's utility savings Curious were XQ, on on you the kind quarter expectations else What for going Great. worth for

there's still quarter, be to a Rich, a if We're results after lot during X rest the first careful watching more us unpack the expense of continue the for we don't that the know make to it's there. like Adam. I quarter. and very whole We for focus year. and the

to rate Rich, I dot goal never a on of And to where but normalized We would overriding X rate want is that manage our landed, the line inflation. draw dot. O&M like the add of we first based below

is and for the we started clearly go off There's of But I a very overall So spot. supportive some in that forth. always our back good timing plan think things year.

on I'll there. Well, to Great. best Very And retirement. helpful. luck Scott, leave of it

next with is from Dumoulin-Smith America. The Bank of question Julien

This for is [ Tanner ] on Julien.

customer the ask respect you 'XX. step-up looks to slight rate wanted to and It Just quarter. new about a the to growth-related fully CapEx trends the fiscal year this there with And connections? Is seeing focus Is growth geographic in like to growth? specifically? are new residential from run that connections composition a attributable any

Tanner. growth question, Yes. I specific would Great don't I if attribute that know to trends.

project, items in getting Some from also specific storage different what's the CapEx was a the seen quarter-to-quarter, of around prioritization from path in of movement some we quarter-to-quarter movement of have it a or quarter. around the profile some utilities, we've the

if that. know there a trend wouldn't from don't -- I draw So I line

it's think across really something that's I quarters. just moving

we And consistency thing capital business. that a follow-up, in terms Steve, on one deployment is are very year-over-year of the this is our of focused infrastructure, new that

very do we So again, construction. our types , very to even that. consistent and you consistent, are investment across I think deploy anything that necessarily that pretty relative all in of way uptick infrastructure-specific. like of of programs, our we some new footprint. about think do the it's it's other things types not message have But things I if But it's to the a and has year-over-year meters to don't relative think other

on whether over it's way Missouri deliver we're really in East, that's we it's now that. the XX-year it's the we West, long Missouri ability X-year Southeast, our focus have term. And whether have a I and to think to plan, the used whether very reaffirm a we we plan, So -- confident

for and the parent, interest the expense in at Great. items And out the then onetime quarter. stripping the hedging

forward corporate year-over-year. ongoing of How You 'XX? rest costs the those should through the going base think higher about of corporate costs noted base we fiscal were cadence

which And I consistent they're the very be might that category, we in late underlying recall, Tanner. pretty cost, the going as assumptions didn't guidance was include flat, 'XX. run other the guidance think you down This the it's that part corporate Steve. with to had year corporate costs. that would year significantly fiscal launched was for of the before. from costs last we Again, had when other, onetime that due is pretty recur we And rate to year of

for the right. all congratulations help. of by way. it. you Really Scott All Dudley, Thank And Great. to your appreciate

next with Mizuho. Jeffrey Christopher question from comes The

to from of a the takes guidance approach couple angles. for different the Maybe for puts and the year

the Just aspects, as in you in so budget? of Alabama, in wondering, the Missouri. Have And hedging were kind on ISRS were trending expecting the income those that debt RSC those what expectations those maybe line kind of regulatory is the some as far the recovery you then been onetimes, expecting like how the of higher the as in interest the for far on year? against Like items -- also other of kind levels?

ISRS met back the normalized I our to is Alabama, RCS as this I planned in items in in -- as and expected. Adam. coming a come Yes, expectations as filings those Chris, think has the has cadence have far of been our think

those far are a is good year plan. So to yes, is one. have one, things our the your think -- been there It's and observation items really according thus I a in running good I think your question expectations

October. hedge settlement, the Chris, onetime that which which fully happened yes, add would we I the early in was item, And contemplated

that that it in and would So gas tied that's because even of drawdown is to saw we deferred there we're guidance. be it reverse in before If demand. QX, launched the QX, thing we customer one was cost seeing

get the even what specifically and gas So but comes additional end it in is why and reevaluate. we overall the we what one assure winter costs what -- track we on from had still below though those the Missouri back we'll we're small you that the the want that norm amount the we're get worked, we never off deferred get I January weather little heating by to a paid in around, in piece can would exercised the PGA winter, which seeing want was season, But expected, entire overly then through largely about of happens of get to to season.

Great. people the think sounds weather, utility And then kind events, marketing the types as of side, as weather I far the but January side, midstream there's like asked have on it and those then leverage to on some dislocations. of also

how those the rest pieces, year? for the thinking wondering midstream XQ and you're the both about of in marketing of Just the

Yes. don't now. in know I we're QX right

the thing important it know the what of let So of primary to we the in we winter. the for XX we'll And again, again warm next we the winter the through is us positioned all cold was to focus update it's and our get most quarter. in serve days. as was we across today, a were everybody relief we well our plan welcome But entire all saw of for get That's And January, And again, which that from have winter. customers rest through QX. heat businesses. our is. end

Congratulations to Scott.

remarks. would like to to back conference for any question-and-answer over our I McPhail the session. closing concludes turn This Megan

on later coming call for this look We the the weeks. you joining many Thank of and with forward in to us speaking today morning. you

presentation, you for now Thank has today's may attending conference The you disconnect. now concluded.