Spire (SR) 18 Nov 202020 Q4 Earnings call transcript

Company Profile

Participants

Scott Dudley	Managing Director, Investor Relations
Suzanne Sitherwood	President and Chief Executive Officer
Steve Lindsey	Executive Vice President and Chief Operating Officer
Steve Rasche	Executive Vice President and Chief Financial Officer
Adam Woodard	Treasurer
Richard Ciciarelli	Bank of America
Shahriar Pourreza	Guggenheim Partners
Richard Sunderland	JPMorgan
Michael Weinstein	Credit Suisse
Brian Russo	Sidoti
Selman Akyol	Stifel
Andrew Levi	HITE Hedge

Call transcript

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Operator

Good morning and welcome to the Spire Year End Conference Call. [Operator Instructions] Please also note today’s event is being recorded. And at this time, I would like to turn the conference call over to Scott Dudley, Managing Director of Investor Relations. Sir, please go ahead.

Scott Dudley

Good morning, everyone and welcome to Spire’s fiscal 2020 year end earnings call. news our morning Newsroom. website earnings access you an on it at issued release and this may We spireenergy.com under is either that may presentation Investors and from a webcast & under There you Presentations. Events and our accompanies website download webcast the our from then site or it slide today Executive Sitherwood, President the President Operating Chief Presenting Vice and Steve and and CEO; call Officer; on Rasche, and are Suzanne Steve President CFO. Vice Lindsey, Executive

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

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

Suzanne Sitherwood

forward progress joining results priorities, our our the the results fiscal we solid a us Scott an challenges, with operating outlook. and beyond. But step would report while our I to Lindsey of into full update XXXX XXXX everyone as regulatory strategic financial Rasche you, delivering financial update. cover Steve morning sustainability first, and able pleased for all to were our highlights and future capital I Steve glimpse to matters objectives. like and into will XXXX in advancing Thank cover and for our and achieve provide that and provide investment, will good growth year we performance. XXXX to am operating on on its

you our gas As is nearly utilities. business our of know, from all

So, remaining challenging upgrading for important on help our through while is year, was us our customers focused a infrastructure. manage it and to

with our robust pipeline our is company’s majority capital of continued reducing We primary expenditure our replacement. our program methane and focused footprint path the important on emissions spend goal toward the work advancing carbon of neutrality. This

deployment including year achieve new not and Spire employees. among to to growth organic continue continue the our investment initiatives. and economic systems management advance We in our initiatives. the collective could business innovation, development other technology also of without of success by upgrade our our achieved this our in of And we X,XXX technology, efforts enterprise advanced dedicated metering supported incredible have We

year, other to our earlier I initiatives served, the As adjustments the created They bill financial the that challenges were to our employees make customers. well Spire and to enhanced resilient, are and our possible. this unfolded healthy and and necessary ensure and especially coronavirus communities still people up customers safe as have the are pandemic of assistance kept supported efforts am with setting to help cope proud pandemic. support by

matters under This to on care for a and time, each year, regulatory this gratitude extend their I advanced challenging in For my every diligence, we and Missouri and continued compassion in employee. very Spire that infrastructure have ways: pass recovery been the of gaining in appeal resolution organizations greater on the ISRS replacement on our XXXX passage agreement and the legislation, request. clarity new to three

investment XXXX. year. will in performance have preparing reflect the state our We our since file this rate achieved next which are also we to Overall, significant case solid

on growth We is driven This ESG record performance capital a long-term target and we $X we upgrades increased in reductions. utilities continuing coronavirus the year an now expanded to social were performance opportunities, X% through earnings per performance strong range. over Spire, X-year our up Based with launching with grow of growth the forward share plan, to rate are track billion on our base our operation on despite to we and today, side. the have impact and the areas earnings expect of our and we spend gas built totaling governance. with an step by to X%. growth, last At our and have strong Our while focus solid on future infrastructure excellent emission XXXX

by Women’s in the recognized by most was XX% companies Directors representation. the sustainability, carbon to recognized diverse one of York of to United New Spire emissions. was list reduce a of Board as female for lowering XXX across of greenhouse Forum to XXXX, having gas through continues the its regards Spire In with responsible XX footprint in environmental in industries example, Spire companies good Newsweek as States. X included For And be the

example, methane cumulative we from reductions XXXX XXXX. a when and to By a targeting are further and cumulative reduction XXXX have see achieved For already our targeting we levels expect reductions are numbers XXXX, are XX% through for emission reduction. XX% finalized

busy our plans so. you know, to As by neutrality achieve mid-century. is to goal And are carbon developing long-term we do

natural our investment also to include and achieve offset in pipeline looking environmental main These Program. RNG, upgrades, or our and are driver at the other hydrogen, While gas, renewable Energy goals. carbon means Efficiency we is

and offer our to agreement standards plan methane for and to economics engaged opportunities interconnect already case RNG done opened to RNG seek There working through RNG and upcoming rate Missouri We They address understand filings. Commission hydrogen. be to for RNG in supply is and are and Public more evaluating process an have quality recently Missouri. the work of contracted this The approval reduction feasibility, Service has biogas. in case our utilities study fully across potential to are actively and a

as environmental renewable that of investment required our well including how as on facilities. costs hydrogen impact commodity the infrastructure and and of might with There our include availability considerations, some equipment gas. key end-users, and achievable system, Some from gas benefits operational RNG including portion fit energy surplus of determining replacing and our also considerations hydrogen the natural of in are the their

As leveraging with AGA to the work environmental advance endeavor engaging we are doing. and that we our is sustainability,

In will fact, Co-Chair over emission and have that, I gas AGA’s a leadership and to task change help to I the a Steve the shape climate on position Lindsey. Board With greenhouse call Directors policy. I turn of force Steve? leadership on AGA

Steve Lindsey

We through a ISRS recovery program, regulatory million investment case with our of total in plan spent our of I rate I caring employees year also want I Suzanne. deliver supporting challenging $XXX infrastructure customers ‘XX, also discussing through our year achieving replaced outstanding of and including and a new efforts we to have and Of by business. discuss communities. and $XXX we begin further you, during Thank gas our before of we remarks great to fiscal miles end. we file capital regarding we to a $XXX great acknowledge utilities. to in will invested upgrades Missouri year calendar Starting performance clarity in including XXX million while that reliability, $XX drive for million invested the will my operating to pipeline. over how the invest continue in on growth, million operating safety, improvement in and sustainability. our while performance, amount,

the year add growing we growing continue Our new new last at years over X business meters has spend rate. been and every to

we last year. over X% have new this premise fact, last new record growth including In meter activations, with year conversions of

the completion mostly invested for $XX businesses into in went which pipeline, of November. non-utility million also last We STL Spire our service

infrastructure our Missouri, base across upgrading Alabama Mississippi. on utilities our Our continued growth drives focus distribution rate and in

At injury the starts in that reduce sustainability and and everything combined in noted to an we note system, methane safety, on pleased billion integrity our this am base neutrality safety has The of infrastructure capital fell. spending XXXX. employee through sustainability, carbon rate last Suzanne people that once slide supports X years. growth to emissions. in As our from over our you On can $X.X technology see, Spire, and performance make commitment. better performance areas our trend in are we our again with as billion investments lead upgrades improving our $X.X operating to our rate measures the show mid-century also XXXX grown system focused I further

Our XX% rate better X.XX, was OSHA than DART in fiscal XXXX.

this prevent leaks damages we thousand an how year’s reduced accidental measure held Our two-thirds fell what X releases years. have the by steady thousand reflecting over XX, per level. important our with last methane miles time, below measure per locates the we same last system At

leak customers, for continue time other improvement we showing response have metrics. to in outstanding while Lastly, many average operational our

ISRS from timely of reliable good gas of work the has outcomes. only successful very safer, recovery with the me workforce minimal pipeline impact in customers communities matters. important infrastructure. let our in that work At investment clarifying more but Missouri years and note which starting time, of system, state, turn the made development with would that helps same for Governor’s priorities to Now, Spire and customer a aligns the progress been our we than from upgrade in with on produced benefits resolution of recovery benefit natural more in replacement do and has regulatory the our investment XX I a program Not ISRS have the in its support our investing rates. employment

eligibility Missouri Commission agreed to and we the passed $XX of August ISRS a appeal in XX. August. upgrade last Court that spend can to of recovered amount change that ISRS noted, ISRS. under one-time No to were Appeals. a million case, Service with of clarified quarter we Missouri cases under pipeline our Public customers settled Missouri in revenues As Under They That the was be to collect. make effective our XXXX two also legislation settlement refund at the we

parties annualized for approved total million filings. $XX reached Commission In Latest approval, Service revenue. of run-rate our in million. these $XX.X ISRS of our addition, all agreements ISRS Missouri in incremental XXXX agreements we annual is with Public both ISRS a

me provided a made let required to of more which and rate case we base rate our growth approach file year. our we filing this notice to Missouri case and weren’t rate and before We we reliable case. system Even end though, the is right given developments. XX-day required we expect other greener, October our Last until to year, safer a to to communities. of our calendar Now, advance of the the believe turn we customers now for file next recover intention file our need upcoming month, that

million system. in We have $XXX to invested modernize our than infrastructure more upgrades

that We will neutrality our including that expect, customers RNG propose new programs support will commitment mid-century. our and want to by options carbon and

a technology portal, including service of We also enhancements, advanced platform technology. implemented online metering and customer number customer enhancements

any seek timing is filing to rate reset eligible the its work. reached is cap must further of important West of in consideration ISRS our recovery recovery order not They or Missouri important therefore timely the the to case The amounts. Spire that in cap infrastructure able continue

to want all Missouri X.X will West integrated and to we the the we will tariff treated combine ensure serve single in customers reflect Missouri that a under to operate Lastly, Missouri also This our utility consistently. state. today East that customers be million

terms rates late will be that can in timing, be cases months XX rate that In to a implemented up Missouri in XXXX. of new decided. reminder Under calendar take to timeline,

our Although in over update. time. settlements to Steve have completed financial that, the to achieve turn will timeframe, than we XXXX prior Rasche and the in April for case review rate maximum extended in Steve? a it worked last less I full With to of cases,

Steve Rasche

everyone. And good Steve this for good safety add to and done wishes health our Thanks, team year. job morning thanks me well a for let and my and

Now, fiscal and and let’s XXXX into forward take XXXX then at a quick beyond. look back step

fiscal last net quarter. Our impairment income from charge XXXX includes the

focus share, from our $X.XX economic the I So a $X.XX to net last $XX per X.X%. was million, for up were share on per earnings, earnings, basis, year. going year or am which nearly On economic net up

as corporate to at gas results Storage. positions of ISRS last less than higher depreciation. marketing’s were of contribution which both our and This This as lower down year. into and year pipeline, service last utility our Spire operating business, mentioned, overall off from increase million, cost from margin posted new businesses partially program advantage November reflects sales $XX from were and offset STL by we favorable RSC Alabama at $X.X went $XXX million last of $X expenses and the Other Missouri Looking and million by O&M quarter, well as reflects due million the earnings year. storage earnings Spire system up million higher Gas the improved reflecting the as performance last nearly earnings a towards conditions, lower market $XX situation. discussed ago, take a pivot to that Steve

commodity we natural gas prices and As due a COVID. reminder, this in drop demand to significant spring, a saw

differentials. also a and seasonal withdrawal storage the natural commitments just asset of season. position and price our price situation, and are market opportunities, volatility seasonal take the fiscal but returns strong each second our that cost put differentials This to quarter. gas creates store first it near-term us reduced XXXX procure, we through quarter as gas winter in a unlocked The value heating optimization this advantage demand significant production locking the of While incurring XXXX, this we the for be our in inject fiscal XXXX, doubled month. in upon will generally drop in To in forecasted significant almost as

business base intact remains profitable. in Our marketing and

be our shortfall to roughly half standpoint, can from to storage. incremental fact, In year magnitude order tied an of prior of annual

a several and variances. summary. $X commodity the gas after on second other key the million at deferral down costs touch and gas of the for XX%, over Let expenses were the regulatory lower Natural as utilities. Operations reclassification me here pension on outlined reflecting year were cost for down costs maintenance considering

other million, gas O&M back net utility O&M second. by which I also costs and lowered related year cost. expenses a income. and items. a were income composed other flat pipeline in employee lower results into by business, operational lastly, run-rate all $XX to just two come will in at both the whereas service, showed that last Spire These was the marketing decrease COVID-XX, million reflecting Looking other reflect O&M of placed STL was year Gas was And included of O&M essentially recognized to of impact prior operating $XX

debt here mentioned, the of above compared lower as financial fairly just so pipeline offset recorded by $X our remained higher the largely view headwinds revenue with consistent and earnings. secondly, operating I have Overall, costs created investment fee last of to here STL AFUDC million roughly year and results movement we line Slide to bad the Lower on COVID-XX outlined as Spire First, XX. the quarter. speak, last have

debts costs able allowed less have that with Missouri first regulatory to now reductions we totaling adverse the COVID higher and impacts and clarity been programs. our us higher Last approved Missouri in and to to new It Service We cost and us of COVID Public have both and offset margins Alabama. AAO these Commission month, rollout defer response, million, allowed achieved. cost foremost $X.X also customer essentially relief net bad reductions the cost

both allowed operations, be us that loss We and track Finally, next will the the design to recovery AAO impact. fee Alabama, includes revenues. cost case. including by In for RSC amounts felt our all of rate considered revenue cost in COVID

ensures giveback Our hit authorized that position including our year-end ROE, those impacts. we

XXXX. into forward step let’s Now,

target, growth Marketing. impacts long-term per year the growth for between economic in expected calendar fiscal earnings ended. with we seen Consistent This range reasonable net $X be uses consistent rate Suzanne continued from X% improved net As and to we now our any raised share. just the target mentioned, our this share assumes of economic of what have a and That base contributions remove to our per with have conditions, half coronavirus year in is Spire back consistent and earnings as utilities X%, the growth economic growth reflecting XXXX year. continued range $X.XX of to XXXX that

and the also our rolled have increased through forward $X capital billion. targets investment XXXX to We total

up base our and Our and will deliver that growth million and drives energy increased $XXX between of X% we was safe, from This continue to to viable our forecast sustainable X%. customers rate last forecast. plan to XXXX for also million, $XX ensures

well-diversified and investment territories programs long capital by is supported upgrade plan service minimal As mechanisms a spend. reminder, lives of that across ensure XX% our and regulatory over our regulatory with for our lag

capital tied financing support Finally, noted metrics, we to here. operating plans targeted years investments. XXXX credit plans have a that in long-term our our steady of X paired level as the company Those over debt next includes long-term equity, updated our with

investment summary, solid our we accelerating me With So growth XXXX back into Suzanne. to are you, in shape that, and capital stepped beyond have we in plans. our turn targets and and it let

Suzanne Sitherwood

is Steve. and common first with the X that payment have row marking our increasing I Steve The me realize want Directors that increase dividend. stock dividend the annual we per investment. earnings, to reflects with the today the growing increased the you, growth January to XXth our Board’s increased reasons share, highlight Spire. dividend, confidence key have and In Effective They dividend closing, for the compelling Thank of are is XXXX. let Board Spire’s strategy year a points Spire in why $X.XX that invest combined plans going and recap a we in forward. discussed in compelling a

heard, the and pursue As believe utility regulated makes gas we further a We key focus our investment. Spire infrastructure. what upgrading on investments through you continue our to attractive an growth is business to

over is gas XX% $X mix plan ensuring our XX% spend a of value, that XXXX have regulatory and utilities, through earnings business on with spend. timely recovery get CapEx that Our robust billion totaling we stability regulated, and to

Our X%. drives EPS X% updated to of capital annual X% to our base growth long-term which annual plan rate supports target X% growth,

performance growing reduced advance As we XXXX. and on gas our updating goals with success to that our environmental X% progress yield by greenhouse way carbon achieving stock I most and to effort in emissions price. We based forward mid-century. a focused you fiscal on recent our discussed, neutrality an sustainability dividend achieving on the through further look our excess in Spire a attractive of offers have just to pays strong And ESG

healthy. As Stay your in investment appreciate always, and we interest Spire. safe and

your take questions. to ready are we Now

Operator

question Bank question. America. from Instructions] with of Ciciarelli go Please ahead And your from [Operator comes our Richard today first

Richard Ciciarelli

here. Thanks for taking good Hey, my morning. question

Suzanne Sitherwood

Good morning.

Steve Rasche

Good morning.

Richard Ciciarelli

do breakdown versus the a provide X% growth in the increase to rate, outlook? the on in that of curious X% you earnings non-regulated just Hey, utility

Steve Rasche

at I more let me go say sure stop wanted I Treasurer stay is correct Richie, further, take everybody to something Hey, he And make and has call, I it this a know on so I Steve. also and you Woodard, will Adam track. if in I before it. our to shot will if any joined first importantly, the that incorrect, jump

for at to out business, look just Spire run-rate, put positions, XX% in to still year thing clearly have numbers the if of to Richie, And of our will it two the even clearly come Marketing’s storage which right look and drag were at performance break you if prepared you given remarks a If up to the our Spire up that talked opted the was reflect we were do back. market earnings utility. and opportunity about you the XX% that not we mix the

prior I think would that. saw to last year the We Spire years. of and like get earnings expect marketing rate you that to see can the you kind back run in

So along pipeline to some and to marketing that think steady earnings give years come. reasonable under and Spire frankly, years crank should the you how and is between growth going about just for level utilities and to guidelines the of the

Richard Ciciarelli

very about And know on that curious is thoughts just program, on then assets some strategic just LDC few Got a curious pretty separately, it. that helpful. landscape. utility peers sale, a just your have the That thinking overall? is you but here I are CapEx I you have for robust gas I how mean, see there

Suzanne Sitherwood

well. will take colleagues that, sure am some color Suzanne, my is I add I this as Richard and Hey, will

call that most we a had know on tenure So here. my few acquisitions the since have as

you utilities I evaluation But immediately, levels, we that us certain assets. said, we not every that And successful also have say, companies levels. don’t unless from aware that has of take of we can exhibited approach any over even create many done being have one we certain would operational interest from highly we been, think selling a seen of on which acquired. are the have those forward know in certain transactions. we term, we the so including to deep about yes, other moving assets. these value And but And long how have That

Steve Rasche

value, any anything to do, that what’s would I range on long into think is acquisitions, Richie, target in we predicated of record And of a Yes, the and tuned we clear increasing track is a scale. growth we value, our creating there path on I remain as but will excess result add market. have not going a

Steve Lindsey

And is Richie this Steve Lindsey.

in companies. to of level to confident our the billion, is infrastructure relative kind our diversified reinforce X very think of Just are I we all across to relative very upgrades, spend which of

think I clarity. cleared the all gives ISRS Missouri in getting in really some us that’s things great

I Missouri, have see some third, then opportunities programs and think and secondly, territory. Alabama to side AMI, new or as to in continued strong with are have starting for the other state, we it’s like business such even with our the investments some relative we our to growth that. new Mississippi, technology, we that expand service And west of whether

pieces plan like very So opportunities next really we the and Suzanna for years. confident in I those may emerge but when X other just think you add together all that are we Steve mentioned the have

Richard Ciciarelli

Thanks helpful. very That’s it. got a lot. Alright,

Operator

Our go from next question. with Partners. from Shahriar question Please Guggenheim your comes ahead Pourreza

Shahriar Pourreza

Hey morning, good guys.

Suzanne Sitherwood

morning. Good

Shahriar Pourreza

Just a here. questions of couple

maybe just to I going the into is a sort Just get this a versus versus kind large versus of little on driven am term the on sort marketing, utilities year year ‘XX, year you by the the a much increase winter of the in storage little year sense that seven, more of over year over bit bit how build your short of position to trying the drivers? into growth season, of five honing of

Steve Lindsey

it. take Shahriar, at I will this is Steve, a shot

it expect If at contribution, positions help and contribution. that. get its based clearly years us that rate clearly underperformed this to contributed marketing average it historic would is which run storage just $XX the that over you ago regain to And back million year we the two look will upon

rate in have western rate recovery just continue see clearly that we think I think the and out have remarks we we about. base of bit already biggest the additional side as grow. are one little slowdown that’s terms in see about, utilities our we ISRS. in land, prepared investments are the of And to to base, in in going we that can mentioned will of we We talked that we So a movers the of that significant only because growth, as you the we expect state capped to are have

little be a that why headwind that’s of would other reasons terms that and So of the we the I that’s, later bit in of And this cadence And thing about year. earnings remarks. on the mention The but you point part next out this to getting of plan. storage the to think was Missouri the to Spire the CapEx seeing that cost a quarter is opted at half also. back I prepared we when here of going okay, the recovery in QX in file see additional one are for of the and in we that year that, our rate Marketing case quarter, point in are this principally in did calendar

fiscal that So a winter, if our use to deliver earlier term, of Marketing Spire year. see which gas that in the are when you going value is I we’ve positioned storage second the from we the for seasonality the that’s the concentrated investments because can with quarter will in perspective, more

Shahriar Pourreza

more that predominantly little to driver? coming is growth little year-over-year a exact regulated, the storage Got to that or just it. from trying guidance. honing Is But bit Steve, get that more just of XXXX a from you bit base got X% just a midpoint have of the sense that on in it maybe ‘XX

Steve Rasche

storage Yes. year, this have Marketing position. outsized of the an will piece of just because it

as are living think a have have We expect going there our in and good I in impact at isn’t remember, grow. of while XXXX, job the done And we everybody forward. the industry, coronavirus did And are look we it of through headwinds times, nice. the of settlement, all our to still businesses offsetting ISRS we with clearly we that we

degree that We But we forward of remember, ruling, the of were are as the drag of XXXX where XXX a results handful court $X.XX settlement. a result ago were First I change. isn’t X XXXX cents, at year that a there Appeals from think a with results in year worth

So growth addition just the organic utility. in that in to comes clearly back

Shahriar Pourreza

Got in etcetera. obviously, additional case, it. Got highlighted of Any conversations any you your these it. on sort to these sort potentially and kind the far of are you items any initial so stakeholders so that Missouri And current Have capital outlook? of rate feedback some you to file plan with right, of RNG, items? guys programs then had AMI incremental

Steve Lindsey

Well, Lindsey. Steve is this

can out to with is, it’s stakeholders the I and it’s and whether on haven’t whether about think the why it’s think look whether constituents programs all of on, that customers, I it’s early for case to the really there. the infrastructure, the we for really embark engaging technology to we kind put of discussions, yet. filed the what even because been But programs case, the have talk I say since last we

is why are we this. Here doing

to what Here from is come this. expect we

good of that see again, do. the things better going capital, focused to are I think settlements of to still plan I at, we think some the types if think it you relative technology, involved second it’s other work AMI starting little have new really we think together, that about set And we look of we lot on to are either or pretty a way. infrastructure, as forward, about to we capital all then doing to, a I you parties you think the even recently can And stage. if in come that question So, I have your think a going that for business, are looking been our the

are But shiny done again, those. competence. if we I always consider and other our that have I level new anything don’t our haven’t we we plan there is opportunities to will where sticking So, really of that’s and highest think think emerge, we

Shahriar Pourreza

past be to in guys positive EBITDA Got stated quarter we just could it. the an in expected get storage the lastly, you that? know, that Super helpful. I you on And update just

Steve Rasche

move just We going for we the the of line year It until was and expectation EBITDA largely and the quarter, still to forward breakeven, sure. for if goals. our our is Yes, achieved underwater above going be stretch as to market we seek next the use regulatory know. for are which to time, you of and could to to evaluate opportunity approval X forward, the period going the next years and X

Shahriar Pourreza

Terrific. Congrats guys. on the results,

Steve Rasche

Thank you.

Suzanne Sitherwood

Thank you.

Operator

next with Sunderland go your Our Richard question. from JPMorgan. Please from question comes ahead

Richard Sunderland

Thanks my any just expectation on the or morning. part baked there of forward starting changes into quick taking sort anything Good evaluation a as real beyond Hi. are process around Maybe follow-up breakeven that questions storage, here. around growth going of storage rate that incorporated? for

Steve Rasche

early Richard, on move again, we which whatever we make and we a long-term will want sure growth to to not to this future, is the to bit well factored we will to clearly in once back in take And Steve. decision our explain evaluation. Not prospects. decision And time. the at our for out what forward, be expect this is a rationale make our are in point. market that we of It’s how come we likely It’s take.

Richard Sunderland

now declines color Got was changes you CapEx in just any to unusual, prior? plans could is it. That CapEx And increased where which here, the through some time? as you think I to the if the Thank I provide see And versus particular, you. over the a in around behind of return very regulated often want you program the clear. briefly, little the drivers then move

Steve Lindsey

go really our Sure. of And program. back of anchors the again, I kind will to

to do all clarity I level of programs, on have And certainty us work lot you relative to we it. we provides our really think think going jurisdictions forward to years of so infrastructure from on more between anyway. helps a the that I in anywhere us about going that return But the ISRS are were those the think that XX if the having X again,

a other that is relative growth year I in longer around the term side. for you just don’t pieces an business of Alabama, have big million, from because on $XX the west The opportunities those our into And expanding such had Mississippi, the back I we system that programs expansion technology, an go everything focused new we with that grow like, put to our AMI five kickoff opportunity And in we good, And we to business, example, again, and I to are big normal continue think new on, this of system in years. Mississippi, that’s the sizable. are think type next that’s yesterday other just earnings area we areas and these buckets, but those comes as, fleet would are for operations we the facilities, the that serve. in, of then else things, a think an other to kind are those types delivering

Richard Sunderland

this about spend, sight an forward on to to And of appreciate I that’s strength line you years, to more past business thinking going just over few the have Great. follow-up the new you of that can area so been say plan? year this have to now. would in program other trends to those extent capitalist versus that the from But your two potentially offset consider years fair investments you added to is continue, the that or

Steve Rasche

than the of I new higher five at straight year of know that don’t well year. business would growth years as look of we years meters year, previous straight I added new five had over as

what’s don’t again economy. some small bit know So forward, commercial, that’s I we And don’t you going small the especially little trend. where are of coming is of the when a at think it we about mercy great business.

what emphasis is had conversions. So on have we an say will I

our strongest on year propane system. natural this were, of for that gas was so a opportunity are great for converting customers on year us. to our example, already And That’s

again, our territory. of The expansion other the are service parts,

increased efforts know we going the take So we it, emphasis years. going I we and I if we advantage are are necessarily say that I for But that and continue to on it. that of it’s deliver there’s a trend are have, very with five to opportunity, don’t that would think would comfortable

Richard Sunderland

of and component, for plan around around just options phasing updated Great, about the any common hybrids? what maybe have looking me, one at hybrid final thinking financing equity one kind the there thanks. the you and headroom And the versus

Steve Rasche

are we Yes. financing largely is seen we in you in range on with And, our have as years. Richard, yes, the actually along prior consistent not we as, are the plan and the what bottom, metrics. credit know,

that’s where will lot really is. agencies, our to and capital are am sure it’s pretty that valued, we only evaluate and ask little pretty at because to how Schmid last the we value by into a two week as go you of I ago have a have to market and pretty And the achieve sector. continues But to market to would us to our a we continue we is out that our you are sure run opportunities commitment any other saw on can close may have will and that not our that And And make our goal. say program. we would stay investors. we rating are, or does we but up week will nimble, did market predicated it’s half. that you the a you bit to to us you the last that upon time expect, were mentioned, undervalued for So balanced I at a answer a us market. been for year AEI a And of use been structure really, where questions the as all utilities, here when advantage. and, might to And great the It’s if it’s trying the we we differently, market. really our ATM have the looking be also us, are good vehicles that

support to we to investing that going effective past, you most position as strong a to the are continue the capital are So watch continue vehicle get cost the we to And, used financial in have seen the have to whatever it. essentially utility. have sense in makes to capital we

Richard Sunderland

the Great, thank update. there and the you appreciate color for

Steve Rasche

you. Thank

Operator

Weinstein Michael ahead Suisse. Our comes question. from Please your next from go with Credit question

Michael Weinstein

guys. morning, good Hey,

Suzanne Sitherwood

morning, Good Michael.

Michael Weinstein

any the be just case block need the sufficient a you question. to last on you rate for ATM going top Hey, equity or need forward? up any will going to follow Do probably equity think off is common that for

Steve Lindsey

in be levels the, the And the want case, that at that companies have capital the sure forecast, we we have levels, at the could to supports each manage refine our operating HR and right rates continue all company cash or we that we regard level the of make of clearly structure the structures will with in handle company. of ATM. that Missouri rate we Yes. the of to we holding with to those bandwidth And do. historic Mike, whether it Missouri since normally rate structure that’s in expect it big terms base When the we level it as – and you I a enter rate way another. a case rate that to can a capital, we one of the state, don’t rate capital in the case order a or we tweak driver makes get to customers being right cost but weighted for sense our ultimately that for average of see us will

Michael Weinstein

to could capital higher plan does filed the current that to guess? – ISRS include Got or you case the achieve expect higher forecast rate higher is capital even is an – are hoping already it. caps we And decided, that after or I see the

Adam Woodard

this Mike, think, think I CapEx is current that status Yes, I quo front. Adam, really the plan, is on

planning We there. are us. not driver for real that’s room I on additional think cap don’t a

Steve Rasche

of revenue on the the And is just requirement. really, cap outcome the formulaically based driven Yes. it’s

period the robust planned sides of for on other a we full for think time. again don’t anything both part a I that So, plan again, state like the is long of diversification is, our and

or its it’s contingent one other. side on not So, like the

relative the think coming I that’s in early why drivers cap, think of in obviously, I us, little this this bit to time. that’s for don’t the if limiter one So case, a are for we

think next we with we run-rates have comfortable the hit several And so years. good moving I forward are that some again, really over

Michael Weinstein

words, rate other not was would the on ISRS that? And�� In or regardless Understood. next of whether build matter, dependent really till an you you no it’s there just but Understood. case, waited

Steve Rasche

we is is reason but time in things. want regulatory which doing are that there we out it I that that think we reasons, this period. this, within. obviously, One the the we the to the safety have, two to in is that And is there doing cap right operate hit case, are for prior reliability essence, construct first this X-year a the and

on a But a of is ramped kind are we So both of this operating up really sides because good different we thing, the have that’s state. this world in that now.

Suzanne Sitherwood

on is when thing I only The essence Lindsey to plan make more one both this combine the state and do we basically of Steve create we filing color Yes. is in utility. may add add sides

after will So, the helpful. conversations one such, these about will talk so quit future talking I assuming be commission that and west basically and approve number, about east would the we in think

Steve Lindsey

that a is good point. Yes,

us X.X we one are you this think Louis. Kansas a fairly I regardless Missouri in I step for if let’s was have consistently, same customers, And filing. trying St. think really, rate treat to entirety are as million we approach to in its this or take that City everybody opportunity the in towards

Suzanne Sitherwood

well. appreciate commission, well And the also Governor, legislative the audience that removed political audiences them some the would complications as as for as

Michael Weinstein

Right.

issues to rate to in those point of come didn’t whatever. fact, that issues, was resolved to or going was have in Missouri I remind physically their issues shared a in this border, one of call the pay up cross or me, had In remember are resolved this those maybe those be was last Are regulators that it there services share addressed like just across case? rate located Alabama. necessarily want at jurisdictional again of for jurisdictions, cross case, and center the the allocation cross-border

Steve Rasche

think expansion. efficient. it’s growth service shared are with we say, you the discuss. think around be and to what going the very think have I effective, approach. I shared best about model a more through to very But am again, comes provided operating service will and clarity acquisitions transparency lot thinking is something I And it’s our always if multiple And model, is we there and jurisdictions, that

are a you presentation. cases, and of job on who is but challenges coming And justify or finance call from? the have is think on IT. there much a are centers think a But some forward rationale in as and service functions so what we regulatory proceedings very up good so our we how behind through all efficient whether organization. it in set go we going or the done engineering shared paying or for the process, I position our of better it’s that And where – really, yes, initial sometimes I establishing to And

Suzanne Sitherwood

customer time on are that say what would commission very very our of I a have and recently, was the the And with on commission that staff on experience And more pleased. very focused they spent we were. metrics the topic lot

an people but having to location this and it the much for that and as enabled enabled what is have perform, about perform has Steve can to a not deployed, customers the us is and look that’s more space that year do really performance our as what online metrics experience not it’s could those and our us has all the where tell go entire news, customer example, which it’s So their in you again, of our what just improved metrics Lindsey we technology levels, about are we online Account bills enjoy. My convenience, And good good area their been focus, of and year, things their interactive it because, at have kinds and over and actually. we see be we like

Michael Weinstein

Steve. Yes,

that What and You a run-rate said hoping are Marketing Spire is what’s XXXX right going the to? guess old because is or before to it’s be to good for get that to after year? you were I hoping that? Storage to rate XXXX Spire the run And you that Marketing, get

Steve Rasche

$XX in probably just a were they million in, good neighborhood over XXXX. Yes, That’s

Michael Weinstein

It’s a higher than run-rate. It be the right, probably next year, of will that because opportunities. good

Steve Rasche

Now, we $X are starting at million.

pretty, a So be pretty would back to if that we can step get up. the big neighborhood

Michael Weinstein

see. I I see,

growth Okay. a can you view on electrification of last increasing and currently forward load load of long towards your long-term of comment question. more itself gas, oil But, just me strategy And question for this natural coal. is with as one and term country moves served the

I gas that, to to hear a XX your But among secular opportunities like concern argument But there, discount have point there years, an enough, been grow, agree out right, has at there love an a deserve decline I general? utilities in far in I don’t look some, on just, their trade as has Now, this. they investors with of not view that. to would and, just guess, you out that of been that, because necessarily some if argument.

Suzanne Sitherwood

of it’s where engaging Most support the that country the the modernized facilities a putting a not gas have that efficient. all United go of topic, on take heard I staggering electrification especially reason those technology $X.X you that to for It’s through natural in to we It’s commission. sector obviously, And will, things. abundance that customers having customers again, don’t and I quote in estimates believe these States, side agree stop gas electrify you us so in house, regulators to don’t natural then deploying first our when don’t of and kind customer. hear you the advantage XXXX. about companies energy think find to costs, of the and going agree through recoveries really natural XX just gas, is, this agree either. are science a because been if of you that way to given way that’s in seek this we years, natural industry benefit contain part X%, glad from in a gas, sort entire cases gas it, about plus not a amount were it’s Lindsey filing someone go afford. only and if of benefits. business, very our have in there, it’s on the am could with lot yes, to with as all, went business just small and our and have trying Steve it’s with steps emissions. a and I billion through And at an for is uncompetitive rate of be the with the and customers costs it have fuel, cost to of we the and abundant, replacement place. of But domestic I because of customers industry for That’s greenhouse and $XXX a of And a but will our shoved as reductions sort about and that the but… it’s these world, importantly, of are it safe, green, economical, small mean, total residential it, infrastructure. methane residential infrastructure onto go that amount the the pipeline trillion of you if doesn’t I that think individual process, I us level, it’s in through we would would more levels And have just it hard could at structure tolerance make

Steve Lindsey

story, long as I us and Well, those points incumbent decisions whether I them. let’s job thing it’s sure before or as we term it’s level, is benefits level one hit that policymakers, and legislative, making trying the federal energy, we need on the to would And energy, that at environmentally or are that of consequences. friendly energy, decisions, Suzanne understand economic I make what local people to mayors, whether reliable level I consequences it’s local make think talked or great the impacts role, think, whether active industry decisions. we really a it’s are to think taking affordable company do and the are about this or all Suzanne the development we it’s got to an at understand add an continue to good a educate And that telling whether regulatory, you state on,

Suzanne Sitherwood

our By of at investors reliability, of of carbon opportunities other we mid we those have as the And of wanted to the replacement things an reasons doesn’t guess mentioned am only mean of early looking company the basis not going came are we my and one looking industry the out doing capture we that kinds these as that and with carbon that’s role we also earlier, century, on technologies. want those with we like are Association but at safety investments why a to well, said customers educate neutral. our that’s And gas I RNG, from it types well. not as American pipeline say, and a neutrality that hydrogen, benefits be program, and our we I resiliency to I would are

focused, years way, we fact, will but exist believe very we serving our in So good XX customers. now, are also a products our from in

Michael Weinstein

and a guys lot, a week. great Thanks Alright. have

Steve Lindsey

Thanks, Mike.

Operator

from Please Sidoti. question your question. with ahead comes And from Russo Brian go next our

Brian Russo

morning. good Hi,

Steve Rasche

Good morning, Brian.

Brian Russo

involved in a the Missouri the but filing an the under clarify, ISRS West won’t be you that cap, you’ll in cap, still what about due XXXX to East, that are are Just for know understanding case? rate be the postpone going to you I to with you considering

Steve Rasche

history that state. expect our we across that if and are No, because infrastructure is upgrades that, we we the are rate about would do continuing even every proceeding would will X you ISRS Brian, we months in a file invest to in

make we sure involved case, to likely want So take will possible. the best stay advantage of the ISRS, but the case. on It will in that adjudication we be rate of to

Brian Russo

X Okay, file the it total a what kind potentially of just rate can ISRS, trying to are next spend percent of having And what sooner to than the a remind over a get for mechanics just feel got you to years of in the it. revenue, is me, case recover that? increase avoid

Steve Rasche

cap at revenues awarded the rate XX% a of ISRS the Yes, set is case. from

apply now and here year talking from a be would sitting case cap you rate growth rates mirror, can are rearview rates at look become – will that to we of reward that total terms – So, of XX% once would about we we the get in and the the in this. hopefully our customer

Brian Russo

X%. any the I of question kind the versus at dividend look just EPS got outlook ratio Okay, dividend outlook? X% versus my the XXXX and your that first growth increase we in EPS it. X% payout And was then what’s for guess the should target to on is to lastly, increase to the how CAGR increased announced

Steve Rasche

we a dividend on right, it’s about when payout are focus we Yes, great question, our Brian. the you ratio. Yes, do think

right that to dividend is of an range target increase, to of history. about our the are second and the in raising that clearly was considerations biggest Our one $X.XX XX%. at And XX% we our $X.XX range top in

growth And dividend grow, a range. would expectation believe have it’s of our go and our would that think in total will expect of the That we So, continue as paying we to growth you years investors to earnings think return. sharing you same our our can good size equity we I understand be dividend. we earnings from that us about Remember, increases part years their and as and puts it drive forward, that – isn’t of level XX of you for then been back portion should the XX not that increase. with our a within

Brian Russo

you Also disclosed agreement bit a the or through your could Okay. is you add you RNG are service just positive in what it exactly the just RNG just little getting curious? providing detail, that landfill presentation, fee, a pipes, margin more transporting

Steve Rasche

come on just an that. for interconnect that’s – Brian, agreement to now, are Yes, we more

Brian Russo

Okay, thank you.

Operator

And Akyol go Stifel. question comes from your Selman next ahead Please our from question. with

Selman Akyol

you. about I those drive I Good continue morning. taking moment. recognizing earnings think have Thank you In order increase need contracts term, want to Marketing and QX. do about just talked therefore Spire tenures roll and a saw to for in years think back said, storage on for Spire opening Marketing? overall volatility X to But as as volatility clearly those return your QX you go I fairly a or it to about in of the comments, storage having quickly off additional to longer X should guided that to

Steve Rasche

It’s great Selman. a question. hey, Yes,

Marketing exceptions, they positions For our than year. few storage are with so our Spire less a a are seasonal,

during we of base the think of as looks exiting we like season. go of the And as will through so winter gas and in we once level when we is the winter selling we seasonal the our about that see market and it ramped remember to serve what stories and it’s the doubled our storage, season. is springtime assessment same it any recurring have last that to year, just need demand it we as because are level heating There up it logistics position our when need a storing that customers in necessary a transporting order customers, would where have business to in our and generally that business, they

Selman Akyol

of Understood. come for forward? savings, And to am more Thank times wondering, just number go talked as there I is you that cost that. we about and you then of

Steve Rasche

are customer making service that we experience as things sure But the order efficient. us we to in that our mentioned, investing keeping can been to and down control history our customer experience drive We need that same a use investing we other O&M more the got those. for to technology for at team. and like have costs again make We look able time, they you combination of gas in utilities numbers especially gas and at and a of have this have Suzanne with the right year, – where availability things and

do we balance So, to that. try

looking always are under for add control. are We inflation that component offset ways to our keeping a well minimum so of customers we that

that So base growth, rate our add hoisting we not [indiscernible] the customers. in on when are growth we

Steve Lindsey

really to over technology, O&M to go safety, all I think thousand efficient some we to about, obviously, other X think if about we one all the that the become the the using last miles, that planning you seen Yes. more reduction things as earlier environmental, the leveraging lease the forward. talked things but workload And years, a and specifically, have in XX% that of of comments a per I think such period time goes we is over utilities mentioned in

think things I setting up lot are of well. those a

we So to translate should when cost the all you there, ultimately, that are benefits O&M the capital savings as talk about think always but investments, about they well.

Selman Akyol

Alright. very Thank you much.

Operator

And our HITE Levi question next Please comes from question. go from with Hedge. Andrew your ahead

Andrew Levi

morning. How you? are Hey, good

Steve Rasche

you man? doing, are How

Andrew Levi

I am doing you. well. Thank

Just if groups? of some a court with I the from going environmental STL am the not on Pipeline mistaken, challenge is there

Steve Rasche

Yes.

with that’s servers, that’s basically the challenge that’s FERC Fund to a Andy, doing so and a the in Environmental about positive of build job. very continue and Defense so And relative, it’s pipe great that’s we

that’s I specifically of don’t the that’s That’s FERC’s core and than more not process. challenges, I others, ultimately some will forward the any so but think, that’s moving but is think approval us. of it with different process of yes, a most have that And

Andrew Levi

Okay, so am I familiar because not it. with that

So could like pipe the maybe it, not the what just a and they has do of case? because I maybe you specifically to am Environmental I are with just or could existing Defense correctly, explain what that it’s it for followed useful what’s mistaken explain And weren’t really think in, certain challenging? something am If court I like I that or that that remember status used or and verse enable rules it? familiar Fund,

Suzanne Sitherwood

so to guess, build did Suzanne, activate approval. without approved FERC is decades FERC matter. I we guess. of Louis it’s file, and obviously, certificate but I process don’t I has of the court. court But a we over FERC for functioning that’s for – would way, the me, to year. it did been FERC St. gas a I that a that benefits in other tried FERC pipeline have FERC and excuse the went Yes, the follow extent have this This through it’s legal not deal approval supplies my to see or obviously me, perspective, able either before. show the DC terms pipeline great created that of that to fact. would upholding being stay now the a guess allowing will piece in We the that in region themselves again, really And and the where pipeline. for I support and Yes, interesting it the know – will call process is to and to path our – with gas true pipeline. nor approval because We that and great have we also a benefits, FERC again, have gas pressures EDF most with from economic the brought able to to delivered be region, created will systems of is for DC remand probably an into challenge of wasn’t that There happen But natural operational But development that likely region. be it’s operational the we and FERC back

have is FERC have if operating approval, pipeline there punch we have provide, also the we we that line and but can process, approval the is decades old service, information me we point will, great and it we my but approved that built FERC So to you since again, is that went the pipeline, then…. through for in

Andrew Levi

say hear court? may we from I not – from or should courts When court, the courts the

Suzanne Sitherwood

Yes, ahead get don’t the to… want of can I I I think court. don’t

Andrew Levi

like timing final are arguments oral waiting And and all a kind No, and wise. a made for just like process legal beyond all final still there we been on no, the of that going or just is has decision? decision

Steve Lindsey

going radar challenges precedence so and isn’t isn’t Andy, court and EDF screen look to Well, we hear allow of pipelines that – other can precedence the going FERC in given our we get individually. of other you the argument. take it’s low a to DC the will the with it back strong

Andrew Levi

great. Okay, very to you much. you. Thank will I Scott, get back

Suzanne Sitherwood

thank you. Yes,

Operator

management remarks. conference over to session. to with And the will question-and-answer ladies would any the we that, like end pass today’s I team closing and for gentlemen, back

Scott Dudley

thank Well, your all of Great. interest say us. joining We today. things you to appreciate a questions. for lot all your had We and

will day the around the well. safe. everybody. follow-ups. Thanks, for We any Take be rest care. Be of Be

Suzanne Sitherwood

you. Thank

Steve Lindsey

you. Thank

Operator

gentlemen, that with we and We Ladies do conclude will today’s conference. attending. for you thank

your You lines. may now disconnect

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