SR - Earnings call transcript Q1 2021

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Operator

Good morning and welcome to the Spire First Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Scott Dudley, Managing Director, Investor Relations. ahead. go Please

Scott Dudley

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

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

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

Suzanne Sitherwood

sustainability priorities, reported we objectives. us solid call, our the morning our while challenges the end, good operating for On quarter financial pandemic. fiscal our make continue coronavirus advancing delivered from and Scott to we XXXX growth our strategic first year and towards today strides results, year you, By everyone despite update. to joining end that Thank and

also a in As we quarter last you utility, XXXX. start good We momentum in quarter At service that time, from improvements step is integrity, moment. results pleased strong by Steve the our largely update earnings off our financial solid thanks reported gas in Rasche gas safety, first first and our a building to operating tell cover sustainability. we're fiscal same will and to forward, I'm performance but on to driven marketing. year's are with environmental higher system

particular, the commitment on goals. company our into a As achieving step emissions new on priorities to our and strategic that ESG we record. committed we our In drive building focused midcentury we're carbon remain our reduction on methane executing growth, by while neutral our being year, to

reduction you emissions currently the pipeline replacement. As primary know, is in driver

a play looking has affordable. collectively combining focused will to emissions growth. Lindsey management important identify value natural the other methane and longer-term entire coalition achievements. future. chain. while efforts to industry meet environmental setting LDC carbon to emissions a We reducing solution. yesterday, natural more earnings to upgrades our that are on investment and RNG approaches in investments choices our of the and join energy in to low-carbon we but support reduce in of can access carbon have are infrastructure same Spire believe we plans, say as gas on and this, our pleased continue the on including and methane the are our Steve Americans that we that announced to several transition in to improving joined the to And evaluate commitments, across gas energy reduce That's report to to have Future, programs these we leaks. time, At role ONE natural at We're has with hydrogen a track other an is that and Keep ways critical because opportunities mind, offsets because ensuring near-term, represent on clean gas peers our

He data company's a one Economic in to we taken brings named of strategy processes Spire's currently Spire Development our to being Efforts. our Earlier new and Business new also important expertise efforts. guides this he naming as carbon-neutral Nick week, this our by of executives have environmental analytics We lead to midcentury. as behind the and business develop leads Nick to Head Commitment. an step Popielski commitment works and role company Environmental and

Corporate And one environment total the Responsibility getting only Although pleased the efforts strategy. within ESG or note today, our Social is it our are to noticed. area I'm focus is ESG about we're talking that

America's As by of Most second Companies, Newsweek strong in Responsible performance ranked a one was corporate a the for example, citizen. row one recognizing as our as year Spire

matters, Lindsey we two including our for At Specifically, governance. in completing start Spire more rate-setting year, corporate are annual commitment Steve Mississippi, rate the will as social to regulatory the several the in for filing cover this Alabama we've in review on as our recognized environment, and issues also progressed our Missouri. well utilities of fiscal a detail.

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Our You'll we're to to methane reductions. be see our commitment infrastructure upgrades and by protect our emissions includes Story in a environment. doing to This we company carbon-neutral highlighting what began that

employees support And privilege and upgrading help of providing learn, responsibility performance. that Overall, Story that energy, see including integrity operating innovation. care but means the system our people pandemic. from infrastructure, energy a also about encompasses through affordable, working Our you're You'll take and the have provider, everything we earnings it during clean and communities, driving grow future future. what an to our our included. performance, We're of we're is including being businesses service, while new delivering advancing and and growth This investment our and including safety, to programs and reliable energy least, and sustainable create essential the not certainly good last,

As I noted possible amazing our X,XXX is success collective only through last time, efforts achieving our of Spire the employees.

Spire the I'll the over call our and getting healthy. and served, to challenges, kept employees Lindsey. and themselves up Coronavirus customers supported in it's are whether to of Steve Our continue storms, the dedicate well winter job or safe to ensuring step done communities the and employees turn With that, face

Steve Lindsey

serving track want in I customers The continuing you, the our to also achieve and efforts, the of and stay for, our do Suzanne. a the of our the growth. with Thank ability acknowledge you confidence work efforts success every supporting our communities. as to stepping on with bar helps on and Thanks raise performance employees, commitments. caring another to year your of midst day us to in advancing and and and us company, enabling our especially plans keep we are forward pandemic

infrastructure our than a key be gas capital first more upgrades the towards growth expenditures million, had for million, million As Over drivers utilities our capital to a $XX $XXX of our our totaled ago. we continue start growth in utility new our efforts. organic XX% nearly make CapEx over investments we pace fiscal you plan. our in customers In quarter, a half our spend XXXX, including year first was went strong We've the through replacement. quarter reflects And to and $XXX which on what year the with invested in spend adding our with our the of spend pipeline ago. business know, growth

service pipelines completed The spend in biggest for our is is storage that which driver other investment placed significantly. Pipeline, for mid-November note of XXXX. and was Spire and You'll lower STL down into

with year XX% track spend plan that, utilities. full on gas our are We earmarked $XXX which our is for million, of

Our well. plan for as with year on track the our investment pipeline and storage is

utility totaling growth. will X% robust five-year plan X% Our CapEx to rate-based billion $X and drop

in our sustainability. on and our on last system momentum integrity, true is certainly from safety, improvements service As year operating areas impact we're the Suzanne seeing key this and said, performance We're side. building of that

For area, in year, example, a reliability, also as and Suzanne and per goal is has lower with significantly, is entire performance the include The as the and one midstream this leading to well operators coalition seeing to X,XXX down earlier, lower focused natural and case ONE companies noted operating chain or management member miles rates methane emissions. methane safety performance rate time. DART the reduced approach leaks US. emissions. injuries. rate XX the level an of damage We're Spire Spire of consistent employee the innovative, value system less that our year-over-year joined science-based LDCs, companies is natural is Future, last gas improve resulting X% delivery. of on natural in average across continues gas chain our efforts achieve methane gas total for a average across enhanced the And and To support of OSHA production leak an costs response producers that supply emissions an the across in

industry's the to to develop more As likeminded energy XXXX. be environmental innovative strategic through priority a The come. ways aim intensity and to a for to sustainable with for generations create methane and Spire Future implement member excited ONE will our our companies advance reduce with partnering innovation. report aligns future company, We're footprint of to

our fact, last significant me programs is for more filing base more customer in reliable focused our on, voluntary to regardless Implementing customer review and of course cleaner. investment value than equal of carbon-neutral program, the that metering mid-December technology, rate utilities. RNG. beneficial customers made in and with a XXXX. services turn communities enhancements and we year. by our created Now, to and we enhancements they're recover combining on advanced last rate that benefits Missouri making million and platform filed and This reset safer, was our and online the to portal, This the which side new starting systems customers a let our reflecting Missouri including normal including, our programs have an Ensuring our access in rates, $XXX proposing designed technology have included regulatory options update, since state service

which rates, being million already Our base is $XX through net in increase request for collected million $XX is ISRS. of a

increase For typical on residential monthly about X.X% an represents their this of customer, bill.

rate $X.X the equity billion, of an ratio fiscal nearly of a XXXX end reflects on X.XX%. return equity XX.XX% and filing of at Our base of

In we're discovery, staff, and commission midst staff. the the during to requests rate year which of of Based testimony May, procedural Service terms XXst, hearings from with a Public in currently the the we're the August. data interested update in Commission Missouri June responding from in continue for review XXXX discussions of process, includes, test and parties May start other likely schedule and direct staff the will likely period that through on and

process the our While than and settled in XX elements review Missouri case and a that, preference the is sooner is history an can for be fully of agreement litigated, to be constructive months key achieved. the reach such can rate in all outcome

utilities, Xst, on for December Alabama and to completed rates XX.X% annual process our rate XX.X% on been new based Southeast utilities, Turning Alabama our including, the ROEs Gulf. Spire effective the RSC are for Spire XXXX. established with under mechanism, These setting allowed has for rates

reset for completed of with January ratio. an rates annual at new equity XX% Mississippi rate ROE effective also the XX% reflecting XXth, We Spire

us this a in economic with gas the force Alabama Public on the project to rate in expand were in program groundbreaking critically natural Ranburne, Public agricultural is reality. Public farmers multiphase expand Alabama pleased working important service sustain Twinkle and regulators grow featuring In the we're for support of Service matters, project unanimous to natural ceremony working with of on bring engaging all was to Service Alabama. from with this industries Service Commission our Commissions parts development. service President driving slide addition service and to to Cavanaugh, our poultry areas. on including increasingly territories, We're working gas We rural initiative receive Shown to our for to the advanced the to the for Commission photo

is review the the in right that, the benefit of believe enjoy these over and local strongly to to affordable state over across because turning address been filed operate initiatives or Steve of have utilities and Rasche, efforts, this Alabama it prohibit Before to and legislative to I choice to financial issue. Legislation Mississippi in We're reliable, to has should Steve? we supportive to and call I'll want natural Rasche gas turn a clean update. our bans. customers Steve gas. natural energy for expected the Missouri, With comment on

Steve Rasche

everyone. morning, and Thanks, Steve good

You this Super that of Chiefs of live Chiefs. difference course, many I championship What City Except ways. know, are us the of Sunday, competing call Champion, year Chiefs. year this a a the be cheering one it shared them in ago for makes on, will Kansas of in the go picture Bowl was celebration a all that and again

Okay, now back business. to

the results economic quarter. $X.XX up earnings of We million consolidated share nearly per $X.XX million $XX share, our year. for to net Turning per from delivered $XX or last or

last a reflecting as last were Storage as $XX Spire And first $X.X full compared utilities to results earnings improved with and Gas all loss lower STL Spire gas last year, from costs of million, from of Our year. to reflecting contribution, higher operating and a quarter million, posted $X.X solid operating year's $X margins quarter. earnings other compared earnings businesses well costs. strong that marketing up Pipeline's corporate million million posted down to

lower unlock million customer few other up quickly was Alabama by our hand value combined $XXX less ago. decline year was was net quarter, modest favorable utility net economic to reflects of begin to marketing's on commodity winter the Contribution that or improved as than value with remainder with positions. we offset the margin Gulf a million monetize Total Storage. track these Looking and operating both lower on purposes, conditions were as down market reflecting as in well positions $XX and at New the both and This planned, milder associated margin prices. adjustments last higher rates fair earnings were last to as Spire a season. for from above million, Other and business Gas Gas ISRS, of excluding that grew margins, We the more the demand discussed in remain XX%. of STL storage we $XX down million in usage $X.X performance million weather removed some did due costs details. and Pipeline we year growth. margins $X.X lower Missouri revenues December and heating XX%

Looking remains million, a couple AFUDC financial higher the effective Big utilities, and offset costs other expenses. costs at XX% last cost reflects tax, key reflects lower $X with both Slide income maintenance the were variances long-term of investment roughly strong our returns Operation Other XX. the operations and O&M which the on some regulatory by considering prior a position driver from income capitalization deferral. tax of in We and year year XX% to mentioned favorable and year, range gas fundamentally reflecting here for expenses and STL expectations. was after at consistent related reclassification down a timing in income our Pipeline. here And lower remain and taxable rate finally, change our balanced. higher this mid employee

by the long-term And debt liquidity. Spire $XXX we favorable we and issuing we took capital our upgrades. peak working of million During and market our seasonal to as help at fund needs, Alabama, significant conditions infrastructure retained capacity hit very quarter, the of advantage of

to well We as quarter dividends. our grow as and to talked Net flow also cash funds Steve up with both million. EBITDA flow continue XX% as about, base cash our $XXX rate investments our just first

have $X.XX of per common prudent, a rewarding on fact, dividends. Spire, dividend our long April growing with quarterly of just consistent Board shareholders a declared and payable Xnd. At In we history share

increased years, the have running. for past In XX dividend past XX year each dividends fact, paid for and then a our we the years

range per guidance, share target to our economic X% our growth to X%. earnings we of net reaffirm long-term Turning

of earnings per target $X.XX range 'XX to $X also our We share. reaffirm fiscal

upgrade expenditure drives spend. long-term to also of and our service continue rate a investment and This the and safe, long is lag And with lines billion to X% a as Steve forecast will our programs by mentioned, a plans regulatory minimal X%. for reminder, XXXX we targeted well spend of emissions, As customers, through capital years of most supported are $X reduce of with energy our sustainable unchanged growth diversified capital our and by mechanisms and methane $XXX for between that our ensures deliver ensure regulatory our that plan territories, our to five billion. continue across reliable year base covered current plan

is for plan debt to both unchanged a that financing company structure our debt including our largely Our and targets commitment credit holding reflects to and ratings. plans to growth balanced capital support forward, strong our and our strong investment support FFO going and

businesses. the success investing me you, back a turn long-term to summary, in the solid With across that, to and over are year Suzanne. fiscal our off start to let it to So we're

Suzanne Sitherwood

In Thank you, as let you, investment. Steve. Steve a about Spire closing, thank compelling and me underscore

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

over is mix ensuring XX% value. and earnings business Our stability regulated,

have to our billion, stand regulatory totaling for and gas of $X with recovery. that XX% robust utility, XXXX, CapEx We a plan timely

plan strong drives annual that an dividend growth, to way base the to gas continues as carbon and yield greenhouse performance, capital and share target emissions the achieving growth updating excess annual X%. pay further to our to X% of but progress look reduce to the Our XXXX per efforts goals on long-term have which attractive forward rate ESG And X% you neutrality. unfold. achieving our growing success supports X%. offers of we We earnings focused a on in We X% to

stay investment interest your appreciate Stay Spire. healthy take to in we and ready we're questions. now and safe, always, As your

Operator

you. Thank

will Credit is question open. muted from first Instructions] ahead. session. Michael, be you're We with now question-and-answer end. your Perhaps Please go Weinstein the line on Suisse. will begin the your [Operator And Michael

Michael Weinstein

for, you target discuss prospects given, about you some you surrounding could be have know, well focal things Missouri. points case, that's easier legislation Hey, Missouri, rate know prospects tax the a sorry resolved the for as I case going you of that you you you historic you that you controversial Could more prepaid, discuss the might that. have of the around? substantially for last guys resolution rate in settlements resolved in capital by know expense briefly prior morning. know mentioned been rate to know, time issues are structure, Good the a been this in reform, settlement Hi, interest

Suzanne Sitherwood

well to Steve add color case. time I'll that that. the Suzanne, Missouri their case through their settlement. and together get know to of hearing process. filing want us as something Mike, to between as of and cadence Lindsey when and the are is this cadence to provide the Hey, months cases XX the there's a generally may parties an the some that intervener after filing is what process interveners in But period happens filed you rate land and And is case, a try And then

You you and, so back and may decide will, normal know, is fact, cadence. as you in then it just the results settlement time of my go commissioners a decades at few the with the settlement the the last if if Missouri, partial course, a least in in or most multiple items, hanging chads that

if all around time believe would parties a to always or if our we it's so part, as be know, objective well. settlement that you get this whole reach in So a for and we can table better see

Steve Lindsey

is back the from investments there's some Steve service, really, what made reason a customers natural an And to that is of the options, you options. for trying to we're this do customer as and Michael, there always to right programs, pretty capital of really to well. cadence just why. with is customers, pieces, know, ISRS I would RNG of we're know, even enhancements the a in kind Lindsey, go But technology we've couple Lots more provide you investment this and perspective. time the that And to big back just go to options,

we right if of go would a reasons, like again, think as a go said, make I of ISRS term. to now, we'll there parties the the to And the think full obviously, So in got back this we've lot for as is of of And the we're really we're kind recent makes you that the Suzanne that we'd that. some to you would the length legislation sense issues, why not with and on the back have doing work position process, know, I as to anchor we like, possible. all so got this resolutions the passed, with in then reason some expedited we're of right

Michael Weinstein

Hey, purchases marketing expecting we those you. the weren't in segment. to Got storage monetize

more marketing similarly you on is later And second quarter? like monetization second most you And know can gains? this those that a you like frontload Or bit you you results it conditions also, do in expect quarter, then so allowed little know, earlier - comment did in of the quarter? strong

Steve Rasche

heating take there Hey, in serve. of is this the geographies on - to Yeah. we Michael I'll some, the amount of season was expected there was a shot get the tucked at December, Steve, storage which that. beginning really we that for that is Yeah a small

So were now the flattish, and the call, lot everybody Overall, market actually surprising. through quarter. we that supportive conditions a snow. through January of And seen first it because on all particularly whole we've knows watch even not as wasn't

lot of have more at And cold. a and up. most you injected snow commodity looking fact, all of the probably are a of volatility the price In is lot markets and

forward. know, we live going entire So heating some the I I, see we think opportunities through you and season,

value. into little bit see wouldn't Clearly, markets, a little to flexibility withdrawal anything earlier, I to an in read So early that and opportunity a at we maximize bit we the was optimize planned. the look use the late daily that we order if position

concerned, track the when I'm is, standpoint, we're we value important in most point to from laid in last we on that that positions. unlock So locked summer not the that particularly essentially

- quarter right seasonality or In those of that we're focus, in of the physically terms realization to is most happen now. our that in going

of Spire with marketing now. chat see from to out all coming So three good you when strong numbers I expect we months would a

Michael Weinstein

the on talk Got one But blend plan, reduction? Future. How much on way gas are maybe part the natural reduction I utilities, question that of last you. to leak you seems flare is like gas it's you this the plans into helping system mostly flare of Hey, renewable methane and of emissions it And, methane about negative guess focused that the ONE could off strategy. achieve as emissions, dairy actually if to know, global thing? carbon - kind to for methane gas results coming landfills farms a you essentially

Suzanne Sitherwood

I'll can that to is that with American to there's start to and others is to wellhead of from that provide with, the there's looking provide. start organizations And at then ONE pass from them. that about more it the Steve Gas tip, I'll and many again to that to one like color he'd we burner Gas also tip. Association, wellhead beauty emissions. are what ONE burner eliminate many do Gas But

program know we Commission far of kinds is those using or terms of example, what as can pipeline As our you replacement as we're introduce working us, with an in legislation and our Spire things.

the time for reasons Future. carbon plans by involved Gas, American I be neutrality ONE ONE time process, Gas ONE it very but you'll Gas a Association be us to there'll again, you navigate is layout that It's we expensive. natural as multiple these for So, doing as choices one us bring organizations And gas, important we of as through for know, things. associations together, and want moves If on, Steve? be abundant with included. consumer see and several this And certain. that's think and

Steve Lindsey

there example, puzzle. think prevention, ONE think to from gas all big know, value programs a too, industry to of address. to about clearly to proposing on part longer I that. think other are things a that. quality some it there's are with some build there. there's to we're that And companies if it right the access I things we us about the obviously, to just or do service are now, us for that that's may you LDCs I with it's in accelerate the And I things are agricultural what approach We there's to any that way to would in intelligence going the the a the to to entirety because for one come that gas the tip. you But as ONE help think time, And pieces, the Commission. we're we we us, helps going committees not That's an chain, are spot literally know, think of damage with opportunity alignment of the artificial a then able good RNG. segment allow thing of better like And this be natural and value strong ought we have that don't detection us wellhead as that storage, for example, it's had why have that anybody get think need like this organization leak burner do to around all landfill example, to some that secondly, know, do I you as we just Yeah, areas take and address we if is, really technology for independently Future, from technical things this a Future that, the as in predict piece potentially period you chain. that with that's

and pieces this early. of helping of lot us a there's solve those is think pieces few I a

Michael Weinstein

Thank you. much, all have. you I Got very that's

Steve Lindsey

Mike. Thanks,

Suzanne Sitherwood

Thanks, Mike.

Operator

ahead. Please Richard will from next The with go question America. Bank of Ciciarelli be

Richard Ciciarelli

question. Hi, taking my for good morning. Thanks

Suzanne Sitherwood

morning. Good

Steve Lindsey

Good morning, Richard.

Steve Rasche

morning. Good

Richard Ciciarelli

recently couple case. in one. Missouri one know that the I one's you now, know, are right through went peers on back the there just Hey, rate one of just midst of

and And indication know what's discussed if outcomes you progressing? how draw Just any you can, thus curious with those are any, comparisons settlements things you on you the from going I Commission know, to know any far on? currently early

Steve Rasche

are take as outcome. reasonable have course, watching in pretty that shot not I on in need we the to space a time and especially proceeding particular think in every that pretty Yeah, ago, on around cap across issues bunch everything there that going versus has in with items company, team Steve, a at - operating Commission Yeah, rate what is our with, of own we're a cap think we're the perspective unusual the one the that's our from good to. structure did be And right going company that company in and that Hey, we a around but jump we're, that the I'll of spot long will I we're to and to they Richie, we've a Missouri, this perspective staff North and think and spot, with deal addressed the watching in. only which referenced operating the optimistic their from structure you holding America. had a about business we're and getting have last the what's case, to I got customer rate things

Commission, reflect they we're complications we think structure, leaving where strong cap those see would, do the You right our I Spire ability to last customers do And choose structure rate the the confident the customers and the that going operating all we for operating which in themselves it can and the be doing case, ring-fencing staff so Missouri lead in things but ROE, been as cap good we've Missouri said, frankly, is and of not that, our the the forward. only position. benefit and a in

Steve Lindsey

so efficiency obviously tariff, than would there that's this you the for do X.X capital looking opportunities, prior most something this one about the there's utilities. you Missouri that million recovery, part, combining Hey, we're a things for maybe again, know, think is a the of Lindsey, we're I consistency of in under and customers, are one and add same programs lot across of question. that This little little the to that's this Rich the West for in two different state about the piece some Steve case, one. is East we you around a is cases the Missouri utilities, that's and But that but Missouri customer enhanced the two think thanks typically for is, in combine different one provides one reasons to our

very help we're the bit perspective forward we comfortable And we really positions that well. from a have from are the of it'll perspective, that's say customers. otherwise, as the efficiency I'd benefitting the for So think Commission's an them but going little that difference,

Suzanne Sitherwood

actually fully brought our other Commission acquisition, up. a and was and you the right I I'm I time And it that way plan for to The Rasche the would to going so to to aware is customers. to add Lindsey Commission right the only the - then raise point do staff since it, in at glad and that was that point Steve our

really that. that's So nothing there's new about

Richard Ciciarelli

switching gears just filing. the Pipeline. that's environmental helpful. challenges some I little bit Okay, by PGA other FERC, a know the there's guess on STL an And to one in some Missouri I there and very at group,

Just and outcome the potential those are level kind there? comfort progressing curious with how your what's of

Steve Lindsey

se, the but this Environmental yeah Rich, STL Steve Pipeline, it's process process and that. in I'll is And FERC per was addressing the by Fund. process. it Hey, start is, Lindsey, forward basically, it approving right not Defense was It's now the their brought the really

pipeline operating has since November So of XXXX. that been

larger the we're better we've is, our has from that and interconnects of will over coming, the originally. the very with year We're thing made didn't So of here parts that the the one that for customers And some benefits accessing we thought other I operating have and country been well pipeline that supply efficiently. before. a than some of are benefits we operational are from recently say even the

perspective, certificate we I now, go arguments event case. now. we'll we very the have right process. relative are original received the March that all through so go in And additional From have to the there. from case And the and the was we that me due the to But even that right then confident even have be that case to Again, think to timing just believe to in feel stronger. makes a been behind rationale original added and anything, of benefits to

Richard Ciciarelli

That had. it. very Thanks helpful. got again. right, All all was That's I

Suzanne Sitherwood

Yeah, thank you.

Operator

JP with go The Morgan. question Sunderland next ahead. from be Please will Richard

Richard Sunderland

Thanks taking good morning. Hi, questions. for my

Suzanne Sitherwood

Good morning, Richard.

Richard Sunderland

whatnot? speak specific with off quarter you particularly know, maybe you the of any you year? to timing, and just that savings considerations, in COVID utility to particular with the you the results starting other throughout how O&M balance And this the Maybe if curious could know, see coming the related quarter of in

Steve Rasche

let again, O&M back efficient we a milder plan spend and tend do that that of There comment weather, that me Rich cadence the be weather or at we is to we was until not us program and that. that better normally of month and the take the year. think again, weather. hey, calibrate so the of some Well, gets part spend may and job in effective to that we increments come And do more clearly may because for timing we a shot had XX normal was back the life in down a And clearly our did in adjust bit demand actually little rest had accordingly. of we of does something the would so expect capital capital to than allow

of we unusual season history clearly side start look some we that O&M after better on up the get from And good a little summertime here benefit. that ramping the what than So a timing during it not And hard we expenses those our and expect, heating the was to perspective, at the had then, year when is want start done we period. to season. into because to get take a the usually bit

with potential time forward and rate with our how net start and and the travel to working everything across We the things with see internally when of have the as progresses. that done can this the a and in past interacting going as team meetings year But we that in COVID cost to out companies, isn't we still have vaccine the customers, lid rollout all going going else we're with team and customers second calendar talked our we'll members happen and until half calls, phase US. and actually frankly, are as keep we've or limited on and about our with job good a to of look no stuff most to

the absolute of largely side, seeing customer up. our quarter, isn't much. terms In the not residential is - impact some in on last COVID demand base that really O&M impacting We're - residential, our as we're we benefit holding us we're seeing on mentioned

of seeing last XXXX. season heating we as now, right the with enter March year, this we headwinds, of dealing remember, really not lot first the of a because we're part in weren't until So COVID,

Steve Lindsey

Yeah, March and are before. started part we one operating ended last of in it We in he talked didn't we a part with this kind that have that now the I year. in would Steve add of the that of environment new was about,

we So I more the season, of weather gone we're the what being parts years, very you a going job of back, quote, gives think we've even through lineup or know, balance able winter. into good five now extreme done, have four really And to three, us.

it our our balance of of quarter. year, we is O&M and things for really the not positive, isn't, how we Some it process some the manage construction versus for

And so I done of a historical really think having that. manage to good we've ability job

right environment the be by you in And to so even a with the we winter. as earlier, a I now, we're to quarter, right we go longer-term we're now middle good very that. back need if that take operational try doing think And of our job, would se, look at we're I exactly metrics on the things where per really in discussed perspective we to we're

Richard Sunderland

Appreciate the me you. circling there. color. one to the maybe And one final for thank case just back Great, rate

on lot, or consolidation of settlement rate experiences. that process case? sticky impacting the particular, know, settlement if particular, you in curious a know gone issues kind kind prospects but could around the versus You've in you prior that aspect, of are you the of the there impact any how And kind that jurisdictional items kind of particular through see just the

Suzanne Sitherwood

from the expectation, way statewide a beginning two. navigated the Commission been the transparent the with customers, service that been the of one along it's one as goal one same same sort start, you the and we've pass and I'll don't big at that basis work So our down rate see combine we've rate the be beneficial utility as along. to to day and improve would - cases that team gets I at the serving the we and same different day they to to said On group, know, levels year-over-year and Steve customers when does in it continuing And Lindsey the out. prove and state. day his just and structure have

our customers. if the socioeconomic well an And from the important light on as those know, taking about You residential people you that service the do We grow the Development residential basis. were their development it the Governor Economic look businesses, individuals, the how way, customers important. our you're better provide for cost experiencing? What to services And lower your for also on on economic socioeconomic cost versus on so, is same level? not what platforms to our the about into a they're industry? structures a customers really how Alabama are What us, you do and the our and see we with able are the doing small the perspective, extent, businesses. know, level and know, And but we utilities a to and in technology they technology as Missouri we're It's of to customers restaurants? day experiences through we are every what in customer-centric off you matter. And do those Team, that able you that are What are terms State great strong do attract commercial provide know service on energy basis, help when and to that the way high this is to use customers just to across of higher them value. ability vital and they that's and industry need

was state. services the it the and beginning. We're Spire at has the of gas again, a path this in Spire so, to was - the started And preponderance the gas

well state as this our see customers. as I move the strategic for So for as a

Steve Lindsey

doing Yeah, operate were, if service and state, if inherent think And I there's get you multiple really know comments companies, for opportunities combine you when efficiency. about improved thing companies those you only inefficiency within for you example, the that. to would an a in Suzanne's add

but se, little owner now as lot per that we're sense. consolidation we're to think the differently us of same I case the operate just having a that's And the right bit of well, I with because makes think tariffs. just a again, really

Richard Sunderland

Got you. it. Thank

Operator

go question from Instructions] come Akyol Stifel. [Operator ahead. Please with will The next Selman

Selman Akyol

all. you. Good morning, Thank

So just Future back real of questions ONE quick going to quick. Couple there.

all it all, guys through, then on actually of who the natural say gas? provide who will any talked have wellhead way since from your the you about input producers are First you the

Steve Lindsey

ONE back to Well, I don't anchor that Future. would know that I

that I that's some but to business the I with does all get way as an more again, looking think as it and industry model. not we transparency at companies. our think is, value from think what I the provides is, want really at we're along that's looking it people perspective, of single collectively, chain, it we're And what better

is storage. that midstream There's collectively so And pieces so, reporting be all amongst on any if of there the is, pieces see structure we'll committing the all that we to specific the again, land signing information even XX. we're chain, companies. has information, aggregation make works the distribution there. way and to the up you we out insider have with But would relative the and that's of where about if side essence, the I report Future reported, don't, LDCs, those and that What put the group, we it's have will if be outcome different we ONE kind be goal won't for to you the and the which companies. companies, will, in access value on think pipeline think other the our amongst about But we will

are you that I to to of think the is, align with. those that would want says me kind what companies

Suzanne Sitherwood

goal chain, burner this And the value to conduction is want the in active that as terms moving add on, from so Steve carbon targets are. message other the those Steve more that to he been what a there's of and in to tip again, there's keep clearer piece in reductions a of you in area set know may desire described the and terms targets

well, benefits is this those transparency of targets what reductions one the more of and the are. that organization as So and

Selman Akyol

you you were where out, say the also XXXX? those along said that. just of you'll I going guess is, then for started And to think lines, you guess you at Understood. I my end for you provide question know, guess I are where XXXX, I

Steve Lindsey

Yeah.

you XX% will use we to that. intensity But Future again, relative if definitions reporting, ONE what have we methane to looking for report and is back of And the so, kind you know, been go a we that to this XX% we're went our have point, number that our to seen go back system, to XXXX by methane we that emissions, in from reduction and on projecting is up distribution XXXX.

So we've in been the really reporting challenge. methane

information on the out information additional continue Future calculation So, based be all to to the that we'll there, that that report will ONE is methane relative will intensity. provide to

efforts we So the goes everything going quite reflects Spire to really we the just be beyond a and and coalition of have, is is that to part industry. honest, does what it's be entire think that a transparent, to of going above This public. be

Selman Akyol

this Understood. And here, the question then anything quarter? on AGM last

Steve Rasche

Selman is - No, Steve this

Selman Akyol

- good Very

Steve Rasche

the active. wasn't Well AGM

Selman Akyol

thank right, you. All

Suzanne Sitherwood

thanks. Selman,

Operator

The [Operator next Russo ahead. Brian Sidoti. question Please Instructions] with from go is

Brian Russo

morning. good Hi,

Suzanne Sitherwood

Hey, Brian.

Brian Russo

like possibly opportunities the And the Hey, can for can that's it opportunity of - - growth of you that ongoing? in also poultry with some the and parts what's some that external you opportunities on mentioned just of that elaborate Alabama. the type customers, size synergistic some on backside R&D rural can be

Steve Lindsey

the the are the parts for in presentation poultry agricultural the Sure. even part, too And And we about Alabama, of southern primarily most and a had areas. expansions that to that it's those in and hand typically and we're referencing, time. picture are natural of raising in those conversions. customers and their and been things These wanting result that. that have period a for available gas them from propane like are will And conversions

state. That if I we area, opportunity Certificate operating that much with come providing you and have you actually makes a expansion in good that our coast, on there's customer. and that's And obviously went of development, Missouri kind then the lot lot programs down Convenience getting but western economic back part Gulf gas can parts different to the you one CCNs CCN is Necessity. here through to didn't well. it those go as do together, to of like are success all the the for had things Commission, expansion customer there of down by efficient. the a of some so industry We've that state process if in think a is to you about way a expansion, entire of doing was a which Previously, Even and talk a it. the county it, an And at and the to ways with as Missouri had we of time President of which more and Cavanaugh there's as see, some coming recently can of as we're viewed put it's in And known state, side rural worked that. that

what being will know, of it's state think, because think an by I you out we're don't development customers really clearly Commissions I perspective. something we seeing a don't think really economic I there, want. And to canvass opportunities the we company, customers supported areas, So, know, I both which the the get number those for and come want is it's the from win-win put as in jurisdictions is, because out our and the both, a but

Brian Russo

over first increasing the know, not this assume know, financing earlier, of and, needs the equity just, issued rest year? quarter much what in in we know, any just should to and Okay, ATM unchanged, thank you first fiscal that average And, under you view was you alluded we that. the the incremental decided share just quarter should to difficulty] [technical you for to you you you not know, How equity the count? extrapolate issue remain

Steve Rasche

think when tape, Yeah, way, know, over the I and I you its since is spot Steve, introduced life we can used the you're that and we at years look I sure the we're think clearly, on as ago, you since that at way fair it ATM two it Brian, recall, in about that value. this trading we've think also make

many of trading our we below value. fair all all think, would hopefully, and we we agree, were the that I most do, peers call on I think

to a right felt So for out And we're settle appropriate to market earnings. and it wait the again, hang little quarter delivering now good tight bit. first

So for the that folks, us look few peers. of another for we hopefully and will at repetition value for a be our

Brian Russo

deferrals you think September, just first this $X related any as in had million quarter? And over were COVID a made I of little fiscal there curious?

Steve Rasche

Right, head, my question. off of number which answer Brian. the the don't would I the have top

I $XXX,XXX found that now answer. think but couple was small, of it I a the it was $XXX,XXX tweak

we now were at we assessing assessed year - So have year. we the up remember, of our had [XXX] since until largely position at mid-November. end [ph] the And we're end,

well the good had on reporting quarter, and So visibility. we were now into we're

surprised So number very moved I'm that not hasn't much.

Brian Russo

of excess STL capacity the And the any update at Pipeline? filling

Suzanne Sitherwood

system pressure team earlier, an operate might operator, nothing into on, and not, be, and like control Lindsey we be It so you it different and economic in we're pressure pressures and have know, those Louis the around St. you said, have are always because pipelines and or development And gas pipeline outperformed said so Yeah, it do I to that of highly operation our we've delighted of system and the to of where holding the I in we're is the satisfied the needed the it's opportunities know bringing than pipeline, customers. kinds that industries. able what know Steve know, region and we're to terms pressure forth we like that, into of in difficulty that working earlier, like invite volumes volumes in, Steve pipeline those of more what of like that expectations. serving Lindsey brings and those of able volumes because now our mentioned the growth, design to support that believe those announced, old with industries and in, gas has terms also, we be our parts I'm as have part the to you our

Brian Russo

Alabama a Great. And was what attributable just just in the - one of adjustment that million to? $X.X rates clarification last

Steve Rasche

December - we're basis go both into the upon the Alabama operating budget in Alabama on effect in those of rates on each on year utilities and reset rates that about based in. annual an of we or both Well one

So normal that's Brian kind adjusted. of are cadence, rates of the how

Brian Russo

Okay, thank you.

Suzanne Sitherwood

you. Thank

Operator

Ladies would for gentlemen, over the session. like Dudley to concludes question-and-answer I any this back turn to conference closing and our Scott remarks.

Scott Dudley

joining us Thank today. for you, everyone

day Have the with we follow-ups of and rest catching the a in around be look forward future. will you for great up We day. to any

Operator

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

now may You disconnect.

Spire (SR) 5 Feb 212021 Q1 Earnings call transcript