SR - Earnings call transcript Q3 2019

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Operator

Hello and welcome to the Spire Third Quarter Conference Call.

You will be in listen-only mode during the presentation. But there will be an opportunity afterwards to ask questions, instructions will follow at that time. [Operator Instructions]. This conference call is being recorded.

to call like Dudley. to now would turn over the Scott I Mr. Dudley?

Scott Dudley

this may you site then morning newsroom. earnings also at issued quarter. release or website Spire's investors and and from and presentation it presentations. welcome spireenergy.com, our from our and webcast that for news Good to our third under There's call download and our accompanies either it events access on slide fiscal XXXX earnings morning website you today a may the webcast under We

Gas and Corporate Suzanne room Presenting Mike and CFO. Vice Development. Rasche, call Executive and Lindsey, Also Vice Utilities today Senior on President Geiselhart, of and are, today the Sitherwood, of and are President President Distribution Vice Strategic the and Planning CEO; Chief Executive Steve Operations; joining President Steve in us and Executive Officer

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

are anticipated. forward-looking uncertainties outlined there or that with filings in to Although, quarterly performance are than cause statements and and risk our reasonable factors on various may different be annual and results These future based risks those uncertainties assumptions, our are the SEC.

and contained evaluating performance and counterparts, which are these GAAP our margin, our contribution non-GAAP in of measures of comments, our earnings and to by discussing will their news we management, used economic In release. non-GAAP operations. are reconciliations when net be measures Explanations results

turn to will I over that, Suzanne. with call So the

Suzanne Sitherwood

for good and morning us today's update. Scott, you to everyone Thank joining

us full momentum we continued to plans. our execute target. with year our our track growth on successfully During quarter, squarely on earnings our third Keeping

more Houston an employees our I'm hello, St. perhaps job into results. by say and customers, field after care amazing Alabama we and stop X,XXX day morning, share the teamed walk and our another like to one time produce Edmonton, office to say operations in operating take to good to in Every Louis detail, inspired of a who community site our than I who in financial together strong or teams our to thank I visit the day. I'd Before at technicians people,

grateful their shareholders, with And investments. on be I'm to possible them. work also this through I'm for make journey thankful the who our

In financial on our to terms company at operating organic results, we growth, as and and wide. well upgrades and as of continue focus innovation technology modernization infrastructure utilities,

customer applications. Our technology investments and focused include enterprise those for IT infrastructure

to investments both in businesses are financial and and of At Pipeline. strategic in Steve in same Spire our as time, cover STL moment Combine discuss marketing, great detail. performance, operating gas development in in continue invest a our the I'll related leading which Rasche, to focus storage we the by will these results, our Spire Spire improvements

of Our $X.XX economic us results results expected, where regulatory share. our to for earnings year full reset the Missouri These per share and target net on $X.XX given to the the with $X.XX quarter of of in year. track keep in earnings impacts last we came per

as on on XX% about turn gas quarter. well through account which consistently through growing Year-to-date of utilities, businesses. focused our each our of We're starting to new replacement our the our pipeline robust update and gas businesses, as third that, our let's With our an for program, capital performance earnings. with of utilities modernization,

with that than $XXX utility capital to of Our dedicated span infrastructure is upgrades. more million, half

investments of to these see quickly service, timely we integrity operating the terms in improved from and system ensure safety, want recovery. costs, we benefits While also financial

million, for these $X our recovery for of generally or pipelines revenue ISRS weeks of of additional six-months. Two additional fiscal ago, Surcharge costs of and the we with filed replacement of regulatory of the Replacement $XX $X.X new annual another revenue we System minimal file for investments, May. ISRS materials. XXXX, every and in million million recovery Infrastructure received for ISRS additional lag. costs Because the Missouri, associated for plastic near with $XX.X allows approval million of In another disputed ISRS, We start filing, plus

replacement you As of Court. incidental plastic qualification the recall, may the under District Western pipe appeal at is Missouri

ISRS of the We have cumulative included impact July our request.

for the real-time In our in in form Alabama called Alabama, annual recover Plus, have additional process through an on rate of we making basis Growth replacement customers for making XX rate initiatives, add the the and qualify an report next deliver to track the and utilities our Equity. returns margins. of incentive capital we're tips to on spend required pipeline we that for also essentially in miles points designed Return RSE. replacement to additional burner to pleased higher comes organic with rate. I'm year's from

year-to-date in XX% last nearly investment Our business up new over is year.

we As utilities, a ensure structure costs, by to investments record consistent earnings grow, driven we At and and in to continue best result, our our the we people. control And continue levels. finally, continue improvements our year's cost to our customers. performance, gas our premise upgrade, our operating growth new activation see technology pipeline outpacing to discretionary for deliver last in

several safety that integrity, better seeing enhance rates is system At injury begins Modernizing proud Spire, response times. damages and promote with and safe system across pipeline party leak and reductions practices entire share our our lower to everything We're footprint. Thanks safety, overall excavation I'm overall. to leaks our also to we're in in but leading to seeing employee programs success third that systems. better reducing

well before to to program. reduce all utilities to by In the requiring damages its XXX as excavation were help provisions to of call fact, existing members be as XXX safe dig, system, you designed enacted recently law. These changes stronger enforcement changes Alabama legislation adding existing the

in last And on finally, our success. levels the field to performance continue and year's service build

long both term for an team trend growth for and geography. its business business payment broader upward. power volumes. and utilities, growth appointment building technicians customers stronger producers, and satisfaction the At a continue extending Team gas success of more position that's customer scores logistics we by Our is resulting managing marketing, across in our model the more and moving from rates in Spire field even to generators actively

of like that, on customers I'd more utility XX% net utilities, Spire's a to marketing than dollar were of the economic slightly via than conditions $XX.X Thanks nine-months ago earnings normal. first are just than based market marketing part expansion for in the delivered net million stronger affiliates. to the are This lower exposure of business, fiscal when is note year. geographic year our of

Storage. Spire to turning Now,

ensuring operations current reliable is the upcoming on during winter. Our focus

our the a demonstrate to the commitments prospective our objective. been To prudent, commercial reliably volumes we've during completing customers been operational Our the designed contractual focused projects needs upcoming market, to meet single capital strategic Operationally, the and ability this and and selling on has that been the operating we've on winter. winter consistent of execution year are our to for capabilities. customers of capacity and based facilities operating current upcoming specific with preparedness. withdrawal enhance expected Commercially, our winter

the spending anticipate these million on We of and $XX approximately of remainder capital specific 'XX. FY incremental projects

and engagement that we've to prospective we're with existing both our pleased addition, report customers. increased In

the set broader business advance a West. we of throughout Rockies and As market and their our to understanding for of opportunities the the continue needs result, our

staffing, the build supports we continue to regarding a that team efforts Finally, business. to grow

XX is to that substantially now pipeline the proud I'm construction Pipeline, December, STL began XX% in Spire report which of complete with installed. mile the Regarding

resume of no sufficiently project, caused to Mississippi you've range. flooding restoration, area as their on of our to the heard, will total and the which complete the the the delay, construction near top soon of incur doubt This about and estimated and allow confluence area As equipment the historic causing Louis specifically end recede, delay in project the this waters Due St. the completing crews Midwest costs experienced as rivers. costs year. in the the miles to $XXX Missouri Construction a of X and to the additional to expect exceed cost we million, back is site. impacted

cost We filings year. final, this and later the total be will our updating

day a expect XXXX. the push delay flood also later in We to calendar in-service to

dividend has payout quarterly issued record, dividend increases August preferred newly closing, range row stock Board of years the Spire's targeted Directors XX, Also to on per declared our dividend, records in The our report dividend payable holders dividend on common within pleased of conservative XX%. Prorated our our for a XX% In of October We're quarterly uninterrupted stock. a $X.XXX to per the $X.XXXX payment ratio declared of X. payable and track a of I'm years the board XX share, August is regular proud X. very XX that share

of updates. the a like summary, I'd Steve Steve? results provide that to With to our call Rasche, over review and other financial to turn

Steve Rasche

Thanks, Suzanne. Good morning, everyone.

XX. starting results quarterly our at look a here slide take on Let's

over $XX just $X Our ago. net economic were from third earnings million, year down quarter a million

over our a As rate These thankfully, a this the variance. of noise last change in included this reminder, of have account And results including lack the prior last we'll of for comparability the was year. resets, XX% Missouri year-over-year that year quarter design. rate with impacts

normal earnings results earnings, year largely That down benefits non-recurring million, down effort down $X.X segment. market and posted Gas growing offset conditions from we've return of a reset. slightly year business from more reflects higher year. the marginally and costs. a decline by of rate were after to than or utility recognized marketing million Gas million interest $X.X at lower from the $X.X utility miscellaneous offset expansion last Looking gain, $X.X more the by million reflecting of that earnings roughly income last the operating ago, higher costs case our

and STL a million from Spire economic higher was from diluted businesses economic compared ago. earnings Spire share to $X.X million, $X.X includes Storage, by pipeline. AFUDC excluded higher Offset other loss year. from expense. corporate and slightly year down last Net All were net This per earnings from interest $X.XX expenses a year $X.XX were last which

share current as share and ATM equity last preferred stock in our the program, well count as May the increase our With from earnings per the dividends. period offering reflecting

on year, million nearly details as $XXX the also $XXX year, down mostly to were timing operating million, adjustments reflecting last marketing. Total from gas volumes recovers. margin million and value next the last $XX the fair utility to Contribution due was from Turning lower revenues down cost of slide. of of far

than differentials. In under margins just by and by narrower $XXX,XXX, of decreased fact, that modest marketing adjustments margins $XXX and just down new offset were $XX $X.X value million resets after were basis as were a largely million ISRS reduced expansion higher of margins as change more little margins our by million, customer from utility growth. $X million, Gas rate revenues removing the fair volumes in offset

income miscellaneous expenses, volumes, to due largely and gas the O&M gross post costs the maintenance of utilities. receipts operating and lower a Looking were and were reset taxes starting regulatory with fuel retirement operation reclassification benefit higher, down between expenses or at Utility costs. on costs O&M and

are variances higher side investments. not expansion. expenses, those transportation million, by $X.X bad after were Excluding up higher removing the marketing higher other expenses were expense. $X reflecting given on employee charges of higher, consistent slightly and with were volume costs debt higher just over million capital the O&M costs impact and surprising value Depreciation fair the our business Gas

dip primarily XX% we tax Missouri. reflecting on year income term higher rates Miscellaneous do just cost our $X tax by rate $X.X of finish And of excess quarter X.X income finally, loss next effective in And benefit Expense for benefit was of or bit And A expense tax a as our the position for discussion, a effective $X.X accumulated million, reclassification. and was full year-to-date, the as side amortization to full short million, point by XX.X%. the levels. we million so. to up reflecting Interest borrowing to expect rate the tax income year. about higher pre-tax the taxes. year this other stands up well currently expect be that deferred at was

reflecting and positive last gives earnings here or how earnings things million on design the Gas O&M and at we're look up And good in perspective rate grew re X% basis, up last growth. on regulatory the $XX.X removing classifications, to you expenses Our by utilities. year-to-date and utility we're impacts $X.X point of performing adjustments if Missouri resets. at the after couple Overall, given is highlighted holding A net by changes this performance on XX the modest were the million, year. resets Other year customer year's line about rate economic year-to-date of X%. rate from out. cost on utility slide

offset in Gas last are and we've but two largely year-to-date marketing from favorable Storage, reflecting corporate have from higher that Spire year, resulted conditions million market below earnings and that up largely volumes earnings changing business by expanding benefited earnings lower were roughly and very $XX.X by year pipeline our offset to the expenses, million, winters just has market grow that last $X.X plans from Spire this XX% STL loss cost. ago conditions. Other geographically recall a

continue flow strong a position. We cash our to maintain financial and grow

Our holding net proceeds with we retire and a million. to as August. just well $XXX under raised matures stand, year-to-date $XX a million, activated adjusted short and our in improved fund equity up ready and $X quarter both a market equity. active that debt our company to solid this million now and liquidity We're again stands $XXX also the million with this as term of quarter long strong successful in over at that in EBITDA million. at is just in We term were market offering, had We the prefers capitalization perpetual program XX% $XXX position, and

slide to is with capital million, to term we've Year-to-date, $XXX all increases which drive growth. across continue long year, XX% that's from as XX, expenditures mentioned, invested we businesses. our Turning Suzanne last fueling up

$XX investments and completion utility invest the base are in pipeline Our last Spire operational the near is investment Spire we being business and of quarter. $XXX with discussed investment infrastructure of Storage, investments we up upgrades to that year-to-date driven new invested in STL and continue we in over And to We've million gas addition upgrades project. that spend. million, higher by as XX%

term share share take growth Finally, guidance outlook. our $X.XX long our of reaffirm current per our $X.XX at net of a year economic X%. X% per and target to earnings let's to look range We

which spend year, progress million $XX across far spend portion target roughly $X.X this the spend spend higher up our increasing of fiscal update, updates so reflects for storage year remainder up billion, pipeline of Given capital million, at $XXX are on businesses push $XX million. of million our STL Spire last our our Those our five-year we year the our a utilities. update. XXX anticipated current also rate The to from our retiming to the the the and target are capital last from

a will growth forward position, debt and shown for also supports As growth help programs solid our our that regulatory and earnings utility our balanced financing generally X% the XX Spread needs by of minimal to XX supported targets across based are operating It spend are lag. consistent relatively on continue upgrade years. capital footprint with reminder, infrastructure drive rate time. goal our our over between as financial here providing And company going given slide. equity

to with So, Suzanne. over term. investments businesses continued With you, for consisting growth increasing strength financial across this on let focused our we're on plans success the track over year and coming earnings growth and in from that, of to long-term drive me All back our years. position our turn long the a

Suzanne Sitherwood

business. Thank to in year-to-date our our the you, track operating growth year, and to including Steve. In investment on summary, us performance quarter meet financial targets for the puts our and third

questions, that stakeholders. published best evaluate we words May. investors Spire's going we disclosure, online few to sustainability in the a important strategy, ESG like develop I'd increasingly Before are benchmark about template. We Responsibility That's Social Report, our Corporate social data, to a took know our which initiative corporate reporting gather to and responsibility practices other and to key and why say

you'd call, like reporting. We to I ESG inspiring. in and of your on ever informative of also appreciate some us CSR and terms you first think report our including from what financial you'll this asked input about the find community, see and We

and And efforts perspective. sustainability, let to an we read so, done encourage to report what We sustainably already think. our on on environment, and we and Spire. from governance we us operate and we data interest our included environmental, local know protect appreciate how always, haven't our the stories you communities you methane as social you support information with If a and particular on And focus investment included reducing continued at emissions. your

Now, we're questions. to your take ready

Operator

Weinstein comes of first question ahead. Suisse. Our go Michael Please [Operator Instructions] from Credit

Michael Weinstein

Hi, good morning, guys.

STL can has you that's hint this that increased million. that saying any speaking, the the the pipelines you're of there I of sort total allocated is the, on might CapEx be STL's mean, to So that for year amount percentage increase? pipeline, roughly $XX

Steve Rasche

Steve, really year. turn is color. a can $XX for then the bit and the in let absolute sense because I the little Mike, this it Michael, million that in to over the rate increase on we've this give more me Yes, spend seen to start is the utilities, success as the of

been year. weather despite spring, utility spend to some wet fact, we've really winter successful and be In this some at cold up ramping able our

million. the In $XX an that's absolute sense

and fiscal terms pushed still on on was that fiscal we our historic actually replace If you that flooding would to and between the million three that the million recognizing the 'XX this $XX 'XX, year. for the spend for access get year to that Spire be targeted with which of timing storage miles impacted pipeline look spend by underneath the that STL that discussed year estimated we $XX XXXX, remainder in our about can't we we of call,

So timing a that really was aspect. of more

able In We're figure order so contractors miles to in of what those to that cost of done really terms need guide our position can access not the team three anything? get in out right a an number. to total complete. add be we and increasing kind cost to pipeline. the able did to We to be to Mike, of the specific a now exactly we you to need want

Mike Geiselhart

Steve. it, that No, I think covers

Michael Weinstein

the now with, estimate originally what September you've what's And that been And the, September, is been, I after date? something is getting that done that new what is is you've targeting? for the it was, official think it

Steve Rasche

October the it to be fiscal year, would which expect we sometime And would now in been we originally or it the Yes. place quarter. end guided our in by in September fourth calendar have have Xst. We of that

we what know Given today.

Michael Weinstein

Got you. you. Got

great. Okay,

Just, done and rest is is Missouri, toward your storage storage opportunities beyond, some next talk talked a there opportunities year? I done. pipeline of maybe maybe about Kansas consolidation the St. think opportunities? further Louis, City terms past expansion opportunities And about in you've of get Alabama. more gas even in anything you you Looking can in or the guys after expansion after

be there's you of what about, Just growth? might next phase if like anything wondering can talk else the

Suzanne Sitherwood

all thinking of about just correctly. Michael, that

are western of it on City, was and In supply perspective from fact, of Kansas now through we and very a pipeline and teams We of side obviously right on market and that, the around setting of right that. transportation and completion got ideas his are lot and market. the thought We're Mike the but storage focused the still you've the team state analysis. where Missouri, conducted in And that Alabama focussed some storage. working are now mostly the the about pipeline

Operator

The comes Please of Bank question Coleman next go with Dennis from ahead. America.

Unidentified Analyst

Jason for is Dennis. This Good morning. on

Suzanne Sitherwood

Jay. Hi,

Unidentified Analyst

STL, of XXX have to Maybe bit we a be the go you'll it little going million significantly can a, this for that to a number I over first mentioned? for more you on wait the year later is and mentioned cost exact that know maybe filing you've

Suzanne Sitherwood

Yes.

simplify we flood. level. about about from picture So from conservative we that to Jason, we have connecting when might in is but X.X to it, really three have I right the will. sort three you've look And pictures, X.X up a miles think the we it We water away the then a install seen in that need connect, re-prep get other the mile we've and and probably mile clean here's and it if remaining ground, of, too. Because that way, simplify to high you then really at share, just there, need the it miles

know timing, We lot cost just I've be not want contained, be a short that. it's as to a to period of But a fairly able need it's at and provide there of work, of able to the really work's estimate, we it. described in but speculate, in work. to terms we to So also get look don't

We helicopters to show it's of up get again, of from about a boots these to look at That some so work. on able look one areas. the be of kind we And at and and reasons also, to in want to aerials want can we amount there want it our of But thing. you to it that ground we again, Once a sort six-week hard look it. get at picture. the in of

down this here? there that and occurred that coverage. the to has record heard area I'm actually add And that is its you've some been Mike, of community quite have like anything ourselves that is in to reminding broadly more We keep impactful and flooding sure, to river. this up

Mike Geiselhart

I the to. we've spoken between got miles mean, already Yes, big which two six in of XX rivers, Suzanne's

really between a and it's be And Suzanne better XX the I with mentioned, six-weeks we sort of around going work rivers. restorations and of understanding half. need general required probably So maybe what also think just to a of a then miles like in crew that

part that a to in it the really and and and the of to wait down back for work. this ditch So, we up levels we where to is difficult. water finish water need not, table hold there get get just to It's can the level get hugely more, down

overheads timing overall fair Timing each involved of that sort So doing and type matters really this with reason kind have costs does uncertainty I cost. fixed And about for is, like point week, of as are amount mean, adds to we this. really month, the of a cost. a it in drive the passing each a project fixed passing another in cost. at

better going final that'll have can and around what's sense we cost a really help once So of of, finish us is in work, to our when get we back kind be. there get the arms

Unidentified Analyst

that might impacted those how Okay, Suzanne And up? can as costs you I turns be creep That's great. Mike, Thanks. helpful. appreciate it. will, and discuss

Mike Geiselhart

Mike is this again. Yes,

a that a with our there result in provision it's to is is and to a costs a case on limited there utility shipper, of is clearly There extent the our maximum us here. provision an increased goes anchor approved precedent do $X.XX. enables limitation to that happened as by agreement in have FERC the project Missouri. that rate We up, But inspired increase which our permitted

that original the was too precedent make as that filing final have that expense the we future have distant project the know So permitted agreement an are going make We'll look or, to the rate ability what our Spire once will that with and increase we filing in be this again, that expectation by to to update probably $X.XX, as will that drive to turn $X.XX result and so adjustment we costs anchor $X.XX. not negotiated sense you the be. maximum would much of we as in shipper a under the that would rate. at that process. $X.XX And, point, rate a the And with end up for for

Unidentified Analyst

it. Got

I color but And part give big winter season range, X% XXXX maybe give talk X% term about at pretty we're maybe impact you missing in-start of day, any Can new there. the how the could to the Okay. that XXXX, might that on looking long guess, and a time? you, earnings guys

Steve Rasche

but like little cash be getting I from delta We more. a like surprised the a on cash AFUDC pipeline, is at the be all earnings. we'll impact Yes, and timing earnings cash a lot earnings don't may lot the between bit, you'd more. between little Not that, how

about the investment, business, you've to our And of seen that this X% with a it'll the bit get to growth it good year, what I to from especially gas we little able I design begins of to around been we XX% expect X%, look So noise us that. higher of utilities. can think results which more think I'd fairly again, because the gives we've continue. be you that drive bit rate reset utilities, a think little add, our a that when year-to-date And return the on. is which at When you manage

well, And clearly some headwinds. Spire significant performed marketing has pretty offsetting color,

our about X% utility utilities to So the think to our continue And base rate consistent targets that grow the achieve in job and starting year actually think this to and XXXX look that's growth earlier said at continue that's this when and ability the our our and And overachieve year, ability the you into growth. ability with where our many well and spend to I deliver had that over tend to we beyond. going that for to bodes grow is years. I to

Unidentified Analyst

Sure.

of That's Okay. $XX year-to-date terms provide you been is maybe how Thanks. much maybe Can could Thanks. of may still Thanks, an on for on just the or side. storage. helpful. million spent from last infrastructure going the Steve. gas are those and where be me One loss part into that's update has discuss one you in the expenses

Mike Geiselhart

Yes. fiscal for kind right spend $XX $XX in the spend the is million to to year-to-date 'XX, base into to This gas that's million up million well. total CapEx, Mike. which to last of or trying quarter With largely going first purchases we spend sort operations. of is the of $XX of really this quarter the is regard fiscal the like final the tighten are of the $XX just on is focused traditional fiscal remaining And then of around year, and million comprised expect made in we winter and year as January

As regard of business, much of kind the have a we've and there's some improve we of where operate to equipment, the better understanding processing we, to equipment. as surface particularly opportunities with equipment

we've that. And focused so been on

$XX we've in quarter million count, three this first fiscal far, spend around of on last in and the million quarters expect similar through $XX the last of types year. spent to the So projects

Unidentified Analyst

I appreciate it. Okay.

Steve Rasche

the, cost, through. with interest capital of the that we of the is the of And pull about a the really lack cost, components quarter the of in costs investments made associated rest is terms is and the

developing been building the team. at been the and we've we've facility As line margin

really to of be the, those million for that's going build to continue term. investment the for So, we're this moving parts was short year. knew result $XX well we which the are that means first kind and that team we And making of the that investment nine-months And team operating. now of going the the terms the in in need long we in term, just forward operated over

Unidentified Analyst

it. Got

everyone. Thanks, Okay.

Suzanne Sitherwood

Thanks.

Operator

The question Partners. comes next Instructions] Please Shar of go [Operator Guggenheim ahead. Pourreza from

Shar Pourreza

morning, good questions of the answered. Most Hi, were guys.

Just What's STL numbers guide? minor your that you ones AFUDC have again. two XXXX's the in on for

Suzanne Sitherwood

looking… are We

Steve Rasche

that of Oh, you, boy, I top have head, if off, to for think number the I'm my trying Shar.

Shar Pourreza

Okay.

Steve Rasche

one. I through to let that can I'm of tell you, was me in pretty a a the is year, flip going actually, That just second, one the nine-months first, pages, the a good little through question. first

So,

Shar Pourreza

You STL, in want why some I'm delay this, asking a right. better you of, see of one, trying to sort I'm sort if but a

later to there that don't levels your For just planned. about instance, than from levels should the in an sort the water recede receded. And status flowing better we quick been maybe gas, have a update of XXXX earnings thinking water early then be construct, if have and you XXXX, guys you AFUDC maybe start is maybe impact

So confidence to what's given with flow gas you'll delay? only guess, couple be month able that I

Suzanne Sitherwood

So, receding in map looking the must that and can provide so, Mike daily, color Mike, maybe water little do to land track you're you a and know, at a on.

Mike Geiselhart

that around above area. XX In between we the I the surface, on that X water had the ground to at in feet flooding, that Yes. the of area referred of peak to earlier, rivers standing the

then nothing X of of And parts of, portion area, water, much side down standing to right. still other As was of on on think kind that in surface. the week, tracks, we to other earlier this pretty the were of I X the feet the

somewhere do, rid in of we is obviously then neighborhood X the standing right. table, feet the need, So to water a of water and what get we X all of about to need

Shar Pourreza

Okay.

Mike Geiselhart

over least sort need water if got table like to our X we've at not the drop Because of X of So feet. foot cover X, we pipe. a,

the But than to actually miles between that the of earlier. with the other already can get that miles because get that's sort mentioned for need restoration in we table to started we don't about to X-ish was point we to rivers, finish need water pipe in the the the on So X that, ground. earlier worry

Shar Pourreza

it. Got

that's go Okay, Yes, ahead. helpful.

Sorry.

Steve Rasche

that capital a $X the AFUDC around, course, It for the was it you ramps is now just For million But that was $X ramps the last quarter. up, for spend year-to-date, it. as of million, gives feel up.

Shar Pourreza

you what for an envision have, don't material it'll be get Got incremental if impact beyond you enough it. And to delay your 'XX? you numbers

Mike Geiselhart

as that have, I we you it we pretty we, trades brought expect scenarios the No, much inside I the noise. think down we've coming flooding that have, the saw we would and

Shar Pourreza

guys. Thanks, Perfect.

Sorry good about minor the question. morning. a Have

Operator

Stifel. Akyol with go ahead. comes next from question The Selman Please

Selman Akyol

I'm just you quick. to etc. off you. guys But would know pivoting Cheyenne morning. back in delays defining you impact talked standpoint? that real I Connector storage the about Thank Good customer from needs, does

Mike Geiselhart

believe this is so. don't Mike, No, I

issue really our terms really of facility up facility. the the to were more in more in flows withdrawal asset. really is of an shippers focused right the It's not of shoring really now. our, the You our of And gas side sort supply for kind our on and west

Selman Akyol

one. Okay, at I is you sort that the for about that This ideal term? then you, Steve, another long Is is XX%. now one great. of be the thinking guess, just And for is capital equity noted Spire I level should

- Steve A Rasche

say, agencies rating look actual we're kind as XX% our to we in Yes. that preferred. sure would taking the adds always And at we that of be at agencies I And stay the rating in how plan which for and being look XX%, is debt. the forma number, our equity next If million make want various and And Selman, to in company the credit pro holding preferred, month where actually fair just it's our and the you factoring it. look if at a ranges clear the are the company. between close $XXX the utilities stacks would range, to retire we inside

equity Our I'm say, in financing also thing long what a we entity I our the at is to would equity And consolidated the the you that good term and basis. presentation, are out there means in look included keeping a years. when so, going our mid XX's in several high capital returns next range, over are

invest fairly $XXX to any all finance clear it You as we can million No debt. for and a because to be well It's company We to balanced. debt company, term that $XXX equity, going a we be to going million long to holding want offering some term balanced really continue year long see way. forward. plans have in they're then

took or of know And Alagasco we want agencies but the security, what the given rating know the primarily company on the measure acquisition mid where be, if either ago, a and investments be we're ready, gives capitalization then potential committed we chuck we prepared, XXs, inside we we is holding this in have the to economy not of, when sure would companies us make might last going to years we're an of did low companies. the that And is we terms the the with going, of only And in presents don't where itself. opportunity that's just debt. in the keeping what be holds future equity having to point to

We but business what including rating pay the charted companies a fundamentally do cash to capitalization going to we told us a only not above holding really path we going period were how achieving debt, time. long about of flows to over and we equity XX, also agencies the new for when down get term everybody, them show the the it's of were

Selman Akyol

much. Thank right. very All you

Operator

go Weinstein The Please of next ahead. Michael question Credit Suisse. comes from

Michael Weinstein

quick guys, Hi, just one follow up.

simple three-year quick, through the, ATM a raise Another The for is question. program. the equity

Just the this issuing you the forward some in Would STL way? increase or the than delays planned and equity wondering, affect more more that maybe pulling might that? for you maybe pipeline in originally year if be cost

Steve Rasche

and it back low consider bottom on a that that the knowing we preferred raises usage slide, bit but our we in little you to the honestly level, fairly in and wide of know if that's have point $XXX to bands do to points math I Michael, Yes, fairly raised of a the some already at don't the you, really that now, change, going to million it, right range. work understand where we've ATM end that, I within. what

I enough the of itself helps to And our where we opportunity, the and million fact, which of of we market if to the advantageous. ATM the preferred reasons to presented think of saw a that. pricing business that are, into earlier we're In perpetual well, the know ready the the shares needs issued saying I or extend assessing would current one leaned And us market always are year. business, advantage actually you forward, the as if needs stand what opportunities will and plan we we that, always know market opportunity presented extremely authorization. was $XXX the bit, take life this We why of that's little in

Michael Weinstein

Right.

Okay. Thank you.

Suzanne Sitherwood

you. Thank

Operator

queue. [Operator in Instructions] There questions zero currently are

Steve Rasche

Okay, thank you, joining for everyone, today. us

around great all. then. day. throughout we will up for catching follow-ups any the We you to Have look be Thank a and forward day

Operator

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

disconnect. may now You

Spire (SR) 31 Jul 192019 Q3 Earnings call transcript