Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the Spire Second Quarter Fiscal Year 2023 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 also note this event is being recorded.

I would now like to turn the conference over to Scott Dudley, Head of Investor Relations. ahead. go Please

Scott Dudley

at and earnings everyone, this our XXXX presentation site, webcast, and that our Events fiscal under and There’s Good We and you’ll welcome either find download you webcast the and our issued quarter website or then on website it it call. may release our under an from second accompanies Newsroom. you Presentations. site. also slide morning, access may to spireenergy.com earnings morning that a from On our Investors news

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

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

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

are our On Executive President and CFO Vice and the and Vice Carter, President Officer; and Woodard, Gas Treasurer call Lindsey, of Steve today the Utilities. Vice President and Rasche, Executive Adam CFO. today is CEO; President room Operating Steve Scott Suzanne of Spire Sitherwood, President in and and Missouri; Chief Also

over to call I’ll turn that, the With Suzanne.

Suzanne Sitherwood

update our Spire’s to everyone. It’s outlook. performance, provide and recent good our pleasure a you, and morning, once Scott, developments again on quarterly Thank

of as lead say proud of the to been on into transformed in leading the calendar to my what for this forever team, Spire that a I’m at successfully a begin President year. past I end an the with and begin a as retire has the XX am First, become I’d CEO for privilege the have would leader. I to XXXX, say of starting like that to Laclede company industry growth. Spire lifetime. opportunity and to grateful plans reflections years our we Group, of decade

mission We establishing and us portfolio organic that growth culture, our businesses. our foundation started by strategy develop of our that gas-related strong. investing company by us scale utility ultimately and the our foundation expanding centered increased keeps growth to allowed business This of and in

in Spire with Alabama, know, expanding along you businesses. As now Mississippi successful utility companies and gas midstream Missouri, includes

a value. second geography gas diverse our quarter results to As demonstrate having portfolio consistently ability different our create natural businesses of enhances and

and be all, All grew reliability increasing who innovation all the this employees ultimately done heart safety in and company. to strategy, in investing of soul focused better the systems, six-fold. over and in And while enterprise this to staying than diligent decade, we the expansions, serve through customers continue communities. our more our the emissions, advancing of and our acquisitions are value executing We’ve our our our value bringing reducing Spire’s on to and we customers company past and shareholders,

personally, wonderful than the retirement a more XX me, of represents years gas spending culmination For career, natural my in industry. the

of future. of the leading through a vital decades a on Gas and I continue of Spire the to I’m chair is based believe part perspective, Spire represent our know, national you And that gas industry continuing As American December Association. to energy natural experience in as energized and global America’s

proven build and external terms upon those growth continued next growth including position In strong long-term company, is and our who has and search board Spire, and culture and Spire include success. a candidates. will a what’s initiated our for Spire of thorough strategy. comprehensive a Candidates well internal positioned

in confidence successfully well strategy execute of the and that our on employees future. and management plans the to to in have experienced We our team ability

to call the pass I’ll Steve Lindsey. Now,

Steve Lindsey

safe Suzanne. and their dedication service Their the gas I’ll maintaining continue you, delivery the especially reliable begin are appreciated Thank by season. acknowledging customers. and excellent and our employees to outstanding our of operations greatly during efforts on winter focus heating work and important who

Let start capital with me update on an investment.

our First more going gas infrastructure to X%, and Year-over-year, distribution our and total connect more than half towards Spire’s spend homes of $XXX increased gas businesses utilities. was to million, service. fiscal million $XXX with natural affordable reliable CapEx utility XX% XXXX, with our going toward upgrading safe, and pipeline

half $XXX million. first for our investment the reaffirm FY we Based XXXX our capital on of the year, of spend target

Our our infrastructure over and focus innovation and in that reliability, XX safety, next investment technology, years drive the expected $X to a meters. enhanced remains growth on an service additions with advanced CapEx experience, system in customer customer including support billion,

meters XXX,XXX upgraded across our began have We we the footprint since program.

first the utilities delivered in solid as customers key operating continued work and to for foremost, of gas for targets we year. we toward quarter, the our Turning performance our the second performance on our metrics

and new delivered the and gas rates of costs. calendar last headwinds end Our into of effect as around also earnings cash Alabama offset year, warm improved higher flow and Missouri went weather utilities combined both

lower year. across in impacted winter warmer XX% last utilities, a that Temperatures gas our experienced approximately and which market. in We volumes very were normal than warm resulted

and we worked warmest our rate While the winters on Missouri, of in experience largely mitigation to less weather one designs have in record. was effective do Alabama in much

Alabama XX% temperatures Spire were last and than fact, for year. In XX% normal warmer than warmer

mechanism the that commercial there as cover Reminder, from mitigation normal during periods. also degree had we especially does exposure actual some Weather warm very mitigation usage, does so days all customer industrial not variation weather compared a and to weather, well. uses formula that usage capture

and let these costs. short-term quarter, Last combined in the rates balances. with quarter, O&M second Interest provide the reflecting we higher interest update discussed an on costs me so higher increased expenses, higher

balances to Majority gas in points of made second carrying goal over year. calendar the short-term progress basis fact, to toward X% this last recover quarter debt more tied In we Expect by the costs the XXX last rates than are quarter. short-term year, costs. of current and last the gas averaged up end quarter, of

side, we continue expenses We further working and margins. offset cost that our balances fiscal in to enable headwind our improve O&M help fully O&M believe experienced recovering will we the financial XXXX to capital increases to our moderating control On [ph]. performance utility the

on Let me our update additional provide one utilities.

for upgrade Public new the May During of Commission Missouri ISRS for Spire investments Missouri period. in last effective October February quarter, to recovery $X.X XXXX. filed approved million Service revenues system of X the

a Midstream our Now, on quick let provide segment. update me

first has the already storage Preparations strong are the budget. and services. of Storage. of this in of additional remains the spend year, as schedule commercial First interest Spire and invested month quarter to that note we the market expansion in million I half $XX on this resume value begins construction underway Project to on Wyoming. reflecting in first demand been increasing there which capacity, of phase would the speaks spring

of small Northern is Also XX storage capacity, Salt Bcf in facility gas working recently valuable. facility acquired a Oklahoma, Plains,

net our to we to addition In earnings. to Midstream operations portfolio, economic expect be its accretive

sustainable. on annual our we its to progress Next even as month, more and in performance sustainability, Spire continued reflecting work impact publish measuring become report Xth will

methane gas me shows note improvement over X,XXX In network reflects upgrade in and point we focus leaks reduction the top environment. this our miles. methane cover achieved This significant emissions that our on with fiscal protecting in on since a that The percentage for a XXXX. system reductions. chart to XXXX, track utilities XXXX the slide we we a cumulative on initial per Let X calendar XX% few another made regarding our XXXX investments Please based leak saw starting XXXX, distribution highlights reduction assessment, metric, reduction. emissions

continued our includes culture our people. for serve. Our employees the care XX% measured benefit the those by sustainability since Employee strengthening rate the employee XXXX, safety, DART efforts with on we safety OSHA further improve injuries XXXX. to also focus fiscal and of how in decreasing as they for This rate, of

having Over board with enhanced years, sustainability was has last which for efforts oversight built and reputation governance, strong the corporate for a disclosures. year Spire our assuming a

for financial Steven it to review turn update. over and With that, Steve? Rasche, I’ll our

Steven Rasche

Thanks, Steve, you and morning, us for everyone, today. good thank joining

increase net improved a higher by economic by in earnings Our cost. our share of year. offset businesses, quarter, economic earnings above XX% part driven corporate year, of all Net last we fiscal from per reported last $X.XX, from X% second results $XXX million, or

Utility segments. Gas the million, nearly of last earnings through of ahead X% had Walk $XXX year.

interest from offset usage As more rates Steve saw in and of we lower new expenses. Missouri just mentioned, which growth higher the Alabama, and headwinds than

operations year. advantage were Marketing year, posting quarter, this of storage optimize XX% well ahead take was to nearly million of as Midstream and and its last withdrawal transportation to Similarly, its storage $XX optimize positioned to able our of market Gas commitments. was positions earnings earnings of last conditions

higher portion mentioned, incurred finance higher, As primarily which of were non-utility I due a just corporate to businesses. expense, was costs to interest our

of for roughly in prior and highlights. Utility due variances million by reflecting of commodity overview higher the $X of bad on expenses but principally service expenses an touched We’ve first, $XX are provides O&M key other X quarter. so contribution $X were pension drivers, reclassification million couple expenses on net margin Gas a here of up to: Slide the already the Missouri this million, as higher third-party continue debt customer contractor levels. overhead year, we lastly, cost focus especially non-employee cost; deferred cost, high higher in to expensed secondly, year;

trend debts year. bad a overhead control our treatment lower O&M for than inflation Utility as of our rest expected cost, Gas and cost marker bit on Overall, we are to of X% Missouri opportunities to focus net fiscal

mostly higher Spire representing were Marketing also costs margins. costs by higher, driven

reclassification a carrying as was turnaround Another investment driven cost returns income last unrealized year, well after $X up by million from as credits. interest

interest closer liquidity and a at look take our Let’s expense.

of from progress mortgage we cash our maturity quarter million We first, one and that deferred down improved including terming end a off that short-term last in company this areas, $XXX second, remembering the pending down needs, in including gas $XXX some cost and year December combination focus we balances been Missouri with paying bonds, this later of: XX. operating December. substantial have achieved $XX our of $XXX This reduction in maturity private debt, debt advanced our balances; reduction million essentially made a paid are had million through placement, flow, $XXX holding funding we million out million has

would were retiring the note we both in remaining rates this would current interest I the that also paid of our favorable coming that at anticipate our April position loan hedging to million into and term down year. rates later net balance I due note we below quarter. offerings $XXX short-term

expense of continue calendar as the interest costs utilities this our forward, balance Looking gas rate will year. we at collect run the to decline

outlined in Alabama just I supports XXXX. credits our holding or noted recovery As a just company either and matures reminder, a in the on financing rates at we Midstream utility other carrying and do the in through the most From plan cost level businesses, Marketing Spire interest Missouri of plan get in expense standpoint, the I income. Inc.

per long-term year turning our confident outlook, our earnings of starting in X% Now, initial to to net our share X% target growth from we fiscal the remain midpoint of guidance. XXXX economic

also Our we by and current investments, and growth driven reaffirmed base utility CapEx mentioned, both as targets. our is Steve rate XX-year year

our earnings per range have economics We and XXXX guidance $X.XX $X.XX share. narrowed net to

is the Suzanne benefit create of of businesses platform. offset to the opportunity and mentioned, value portfolio As a across our natural headwinds gas

So midpoint due getting from range we’re a part winter. our results there has to same. large the remains shifted in while the How the of bit,

lower principally are Utility a reflecting earlier, effective offset part by to reflect we segment, and credits. by higher due holding company strong moved Going the we tax timing cost discussed discipline the Gas year-to-date and to $X Corporate Gas the interest million Marketing tax rate, ranges Midstream mix cost headwinds earnings of cost. in range our raised and reflect for both results. to We’ve principally up lowering

We’ve our gas recycling as from financing forecast market. With as to also quick actual FFO couple of A of a of debt of supportive continued new year, observations a XX%. of earnings path issued we to on the to expect Gas flow reduced Utility as cash capital XX% target updated strong well result costs, and clear long-term of equity this growth reflect financing. overall recovery rates needs our

on different that. than had year rebound way with to pivoted a plans, ensure track positioned X beyond headwinds bit well we anticipated this So, in We’ve are that XXXX little and in and to this offset summary, in we’re perhaps year’s months we the ago.

over Suzanne. turn With that, to me back you, it let

Suzanne Sitherwood

investment forward continue you, Thank to stronger and communities positioned in thank many performance growing upcoming of well AGA customers, we’re Look Steve. then, overall our you Financial a investors. and delivering and Spire. Steve Forum few at the your interest for closing, at weeks. seeing for In Till continued and to you

questions. ready take to now We’re your

Operator

you. Thank

session. go question-and-answer our begin [Operator David now Instructions] Arcaro will And Morgan ahead. will Please We question from the from be Stanley. first

David Arcaro

taking upcoming my much morning. retirement. Thanks your Suzanne, congratulations on so good question. And, Hey, for

Suzanne Sitherwood

David. Thank I you much, very it. appreciate

David Arcaro

what on give candidate? internal would be there on that, anticipate timing CEO would when of thoughts potential starting Maybe a process, any an concluding you could of the just a the sense you just likelihood versus search decision for an external the and

Suzanne Sitherwood

know the as the you of what and get all I in vision their the the search end board timing Like, work process, and retire I skis process certainly was very They [ph] don’t my over best year, finalized of the want methodical strategy consistent for the the for that, obviously but a of company. a the they’ll in and terms of is company, way. the be but know, announcement that to has started in at

of I’m just ahead at the So, get of the again, want retiring to but end them, year. that I know don’t

David Arcaro

Got curious, level, to I at M&A utilities consolidation latest have gas articles the also, there And higher market. strategically. wondering more it. a Thanks. just been That about just are and potentially on then what media makes your thoughts several was sense. coming

Suzanne Sitherwood

are a interest guess, would on but I been market, But I in we’re Again, reflect and, this but ability activities activities. it’s comment decades useful to think morning that’s by. change that I healthy to our in to be of XX I have But the that the of these to great seen deployment see to of for we the so person think, say industry, on we again, as directly of go types I assets. always to there’s ebbs types changes I’ve gas comment decades. the And, commenting, from lot don’t who’s to in for all a someone hate it’s industry years, this sustainability. the those these After consolidation on across have great flows XX years, I don’t not and know from it’s and technology you call, as much very these tool. industry say

David Arcaro

was expense on gas Yeah, I Gas full expectation, more how an so the $XX much economic during or an year understood. million versus the Thanks. the Utility winter much impact And the lower then guide, segment. one was incremental and was of was margin prior the down guidance how utilities maybe wondering drag? at earnings the interest at then,

Steven Rasche

that. warmer view of Steve. interest a costs. David, surprise, this down exposure had the with interest so terms the coming into take there’s through bit gas it We less don’t cost full is of rate I’ll paying in a at shot a quarter, of always a the think deferred fairly winter, little and pull I much was although

bit are we the than little higher balances riding expected. So a had

winter are Alabama. our season Steve mitigation heating is as So to the a utilities the margins secondary consideration. the designed our really in We it’s large utilities. remarks, that. prepared weather during mentioned that majority I It’s as down and really margins in put of the earnings offset a both would earn of And and

worked Missouri, not. through, in in way weather pulled it it Alabama, because of largely did And which the in the

on utility standpoint. place But was a that and rerate the again, driver behind So cost offset that saw primary a got that. to Weather from reverts the in the in always plans range. back we’ve spot good still normal to you

we So, as beyond. and head I XXXX we’re think, well into positioned

Steve Lindsey

add that that mentioned, that, market. commercial does to would is I part industrial only to with and weather even mitigation The as apply I not

it residential, So you also others. but when only affects winter, have not the the

David Arcaro

Yeah.

Okay, much. great. Thanks so

Steve Lindsey

Dave. Thanks,

Suzanne Sitherwood

Thank you.

Operator

JPMorgan. Richard Please from is Sunderland ahead. question next go our from And

Richard Sunderland

focusing of the and frame say for term targeted more efforts that guess, headwinds on thanks really, let’s O&M, parse XXXX. how you and and the the longer the to last little that you this much back weather that in of for you’re XXXX time a Hi, morning, in bit terms what is how Could efforts that on XXXX performance? around good I Circling reaction today. question, versus really year

Steve Lindsey

have history offset customer the that in we’re acknowledge on normal create always also bill. take in process investing technology, et be improvement, to our rate cognizant because can I we cetera, of we Well, part, bill, a based because and impact customer investing second we our want to growth inflation and of long in headroom the

sure offset can, just we’re to those weather. few to push looked accelerator a cost plans we actually of as term We’ve is the make as the of want that pace. much fair longer to But the to in All that’s macro discretionary warmer that our term, want to we of given at to if continue you those, being use that the goal because our customer. always

to of look that to for to this that isn’t unusual. whereas the been it’s continuing space, areas, every possibly we started terms year, Alabama cost, us. can including Across in in the record many offset we’re In unfold, warm place winter

Suzanne Sitherwood

is teams when some at your weather weather, cold it’s when warmer, the company and those there’s the it To company] in point, unusually Steve, of way if operational the look efficiencies [here [ph]. there, more is will different. to like gives And you team that of hedge you sort Lindsey operate the by the natural conditions the versus Steve under said, those a opportunity

Steven Rasche

little Steve’s piece is last following up I’ll on comments. the a And add bit

We around now, which to all start allow us to supply companies standardization leverage workload common some across chain, our are of logistics. on planning, will around really right platforms around

really companies. So strong we some think as move management our a all drive cost we’re throughout now forward in good to of situation

Richard Sunderland

of acquisitions? indicative think $XX relative investment, is about there? Spire to it. you further grow a color the Storage That’s you looking million attractive And platform expansion could even outline you’re there. through got How asset efforts? additional a Plains, this to more helpful Salt what’s the that Okay, about bit little

Steve Lindsey

think all we West, myself it evidenced mentioned, can Spire platform, I it’s as very they’re think, businesses bit help this having mentioned, think positioned year, Storage we as Steve, natural we Suzanne, small businesses, do what facilities. diverse we think hedging asset, some forward. it’s they a at going connected with I a as of independent think well have even gas terms start, directly is a effect. and to and the our other Relative little I’ll of to gas but create in of it’s Well, don’t going

our that, platform don’t being of I that it’s that to would again, necessarily lot going least and near-term, the say expect at a from in we do So, we looked something it made opportunity perspective, but know a at sense be I as enabler, forward. business accretive

Richard Sunderland

any Okay. you’re Got that there point? this Is it. with further particularly, anticipating Plains, at investment Salt

Steve Lindsey

At terms this with in advantage take opportunities and, point, again, being some businesses. no. in Again, our we’re of to it’s of for looking go the some way other opportunities early leverage and operated looking

Steven Rasche

would utility Richard, our same facility capital, terms in position the that I Spire invest and more And like becomes add put Once XXXX. dealing customers. with of this Storage much in we the in

utilities In the different. those, pipelines is and range from the industry many in folks facility are X customers years, no of fact, and, to they’re that this and serve on and X contracts who

existing facility and giving it like So to without is buying are lot as since the really operating will, our a we’re team in expansion, and an operations in West. just needs plugging far that they optimize of as Storage facility the midstream it just opportunity CapEx for

Richard Sunderland

it. clear. Very today. for time Got Thanks the

Suzanne Sitherwood

Well, you. thank

Operator

Shar ahead. question from the go Please Pourreza will be from And Guggenheim. next

Shar Pourreza

guys. morning, good Hey,

Suzanne Sitherwood

morning. Good

Steve Lindsey

Hi, Shar.

Shar Pourreza

in just quick inflation a on Just O&M. one

a forward? costs, considerations of from Just go should just as increase same all overhead which which you $X the how of separate I in should Thanks. course, special O&M half were, million forward on last from guess, the the about in year, inflation general. of going quarter came we deferring it we about this sort a the is your or just Any O&M treat basis? think

Steven Rasche

already that costs really that it’s incurred shifted O&M. Yeah, into we’d

of kind it’s of we take for So calculus that out worth. that the inflation what

Shar Pourreza

the perfect. issuances, equity market year-over-year. the was helpful. $X just have corporate guys quarter about And Okay, That’s drag been around you you’ve on of But million quick, pay cost, planned done Obviously, see a just real sort needs Thanks. well, short-term formed? your any Could cash thoughts bonds, nearly interest still clear very in private lastly, higher mortgage that’s really the there? placements. debt you benefit you’ve some managed convert and done

Adam Woodard

Adam. is Yeah. Shar, this

Shar Pourreza

Hi, Adam.

Adam Woodard

Yeah. Hi.

certainly in year. different seen always the I interested horizon there’s it’s but techniques. financing interesting we’ve anything here We’re on an interesting there, this that say so trend wouldn’t far

Steve Lindsey

team this you including a Shar, to there’s know, in activity, and year and that hedge credit do We we And closely. extremely an rate from been position perspective. our perhaps the the interest this an Adam entered of of flurry strong watch as benefit week, and

So, the a current interest straight actually understand buy rate in those convert that does all just industry down doing the we debt. versus

that every market year. but we I got were the this hedge periods, in did we bit benefit, advantage it so of prior that think, we in taking of

So us wasn’t had as to already advantage in convert take we that the really a wanted advantage that built we given for attractive of.

Shar Pourreza

Phase it, appreciate and congrats appreciate X. I Perfect. I on it, guys.

Steve Lindsey

Thanks, Shar.

Suzanne Sitherwood

you, Thank Shar.

Operator

question from go And Zimbardo next from America. the Bank ahead. Please is of Paul

Paul Zimbardo

Can you good me? Hey, morning. hear

Suzanne Sitherwood

Yes, we can.

Paul Zimbardo

Hey, of right look, first of Excellent. trued here puts back and good X appreciate In in time. Thanks now? the reaffirming the XXXX talk just just this here, obviously up off here Can reracking coming it. the Hey, and and some had. specifically coming as of forward to I for so couple of you’re XXXX. a the some getting pressures questions guys that you things composition, experienced about looking that guidance kind to much suppose also some the team. you off, you maybe forward I year, the and confident to effects, of terms look takes knock-on off of the X morning,

Steven Rasche

doing of a top dealing I rates and industry the this have is many gas a the talked Steve. And Julian that deferred with. sight of a we is especially phenomenon about prepared interest remarks And lot which balances, in on getting that. those back line We terms think Yeah. our to in are of in and clear [ph], on of we

earlier. as manage to continue We mentioned we cost, a bit O&M

I think we as we’re the think into where places next I go very one that’s So another year. confident of

of regulatory change we horizon not There’s beauty get. we now about we’re where our nothing XXXX, within we at thoughts stand on any need we right into go is the don’t juncture. proceedings built our because in think gas utilities, that’s as this that so a the have And no rate

us some So And those going clear activity my markets of interest some in completed table things the actually would well. position we this that be the risk capital the in that many mind off forward. rate of ways quarter takes the

Steve Lindsey

Yeah, interest Bringing going we’re and to on relatively so about defensively down than forward a from good feel different here. balances no that X certainly is rates well, those most postured peers key, I as that’s basis. think, our X go pretty of forward on

Paul Zimbardo

Right.

that’s earned maybe much specifically like to you here think with composition, a O&M, you the if back more think seen little respect we’ve the have about typical about We get might trends [ph]. able to get the ROE bit, it XXXX way, offset. [line And shifted the you in the feel when XXXX that to that So you entirely composition, said pretty you’re out the such of that] should cut utilities. O&M

Steve Lindsey

broke a to we think that. after in there that we of I little up through You range we kind get there. coming definitely feel on are O&M yeah, we at the but And ability as X% seen end, like the bit guided have and pull in, focused

as about that next after get to ability historical a same into year. and feel going good have well We

Paul Zimbardo

bit the the financing respect about little super prepared the you subsidiary you intact can and a the at I here the here. slides, commentary to yesterday talk Can equation about the least Moody’s talk in of Excellent. plan it. alluded your with some in remarks, of Alabama quickly, metrics but sheet it to little to And more balance noticed side Got talk you coming from overall then bit just and point back just about plan? an a the

Steven Rasche

report. noting equity as was Yeah. and and but that our to ratings. go as our negative were think of targets. towards Thanks with did, not to I before, off of also Alabama. on we something It’s And, think, those continue I And you the topic, on targets it’s that progress we but – credit around us does we feel pathway about with, I both pleased the targets close plans still our towards continue outlook you see execution think again, again, into and it. come surprise, mentioned, on well, get metric wrapped you a discussed had outlook up and certainly as we and for that take our them hear what negative something have which could towards a our targets continually an feel of that our that to very Missouri our agencies plan affirmation that They stay good progress We those Moody’s restate report affirmation pretty

Paul Zimbardo

pleasure. right. it there. of luck, I’ll a Suzanne, All Excellent. best leave it’s been

Suzanne Sitherwood

Thanks.

Operator

go [Operator from Securities. Christopher Please Instructions] The Mizuho Jeffrey next question is from ahead.

Christopher Jeffrey

Thanks. everyone. on two just Hi, Maybe ones quick Salt Plains.

your for a just to contributing that’s XXXX? typical then the huge Just how as for for curious much that expansion, the funding example, business also whether change as from maybe not for acquisition, but Midstream it’s changed the far the funding know mix, guidance I and

Steven Rasche

ability and strength get recycle to year. our this Adam the good as structure updated look that, underneath marketing capital That’s to the mentioned, as a that to track credit balance then of XX-XX morning, for take Spire Yeah, and to was that acquisition. we and targets. the headwind I our that year, and stay to this of guide, and a that metrics so on can at some, offset cap you And factored guidance our in good that benchmark, I typically Christopher. expect think it’s can the really financing We

We be small self a claims to deal. do accretive, expect it’s

year in year. entity, Spire this stub So little it we including year add the any And world case then earnings. cost in any a the newly thought we’ll is the economic bit does And deploy not do it’s the include the same to year of it’s first for fully our acquired of but reflected operations. in typically net in accretion, acquisition, full transition earnings

So, launched when wasn’t reflected be but the fully to short It Midstream expect year, for answer is would no. the you we [ph]. [XX in factored it update, days] range into this

Christopher Jeffrey

as if see the benefits gas timeline on from if timeline know far or as could possible, of lower through last even to just either the costs generally you capital expense when more of bad just debt just prices, deferred you maybe then on kind speak natural that. And maybe how and if a but coming expect Thanks. kind or the Great. could it shorten that’s I to of wondering gas year. don’t working

Scott Carter

higher Yeah, average, we’re through backlog Scott our works cost. Storm Carter. already recovering the that and our gas it’s cost that that. already through seeing Obviously, of the the costs we’re But this the impacts some our it of working plan, of of Obviously, in you’re some our we’re over with stab kind the years working it. the I’ll take bringing year. capital. at dollar then benefits now seeing first of down our But that we saw inventory is last gas as of we’re then and Uri seeing costs

But going we work off that get forward, think year. again, those we’ll balances, as we of most this done

into a the and to the up, that, that bad will start into to You’ll our gas of market able that then assume will raised assume we’ll translates translate sight start lower of bills seeing lower customers holds then line debt. being cost

we’ll see we the So complete lineage believe, into next calendar you’ve pretty strongly, through And year. we that as got correct. head coming

Christopher Jeffrey

you in See Suzanne. everyone. Thanks, Great. congratulations, and AGA,

Steven Rasche

Thanks.

Operator

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

Scott Dudley

of We’ll for We you couple be for in of the for of day to a again all, Thanks around seeing any joining. many rest you, Thank look AGA at the weeks. joining follow-ups. forward us.

Operator

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

now may disconnect. You

Spire (SR) 3 May 232023 Q2 Earnings call transcript