Group 1 - The company focuses on timely dividend-paying stocks to assist investors in wealth accumulation [1] - The author has extensive experience as a Registered Investment Advisor and has published multiple investment-related books [1] - The company aims to provide a steady pace of financial growth for its clients through various investment strategies [1] Group 2 - The author has a background in corporate management, having worked for Georgia-Pacific Corp for 15 years before starting their own ventures [1] - The company has a history of involvement in small business advisory roles, including an appointment by President Ronald Reagan [1] - The investment newsletter created in the late 1990s emphasized selections of dividend-paying stocks [1]

Core Viewpoint - Spire Inc. is positioned to benefit from its investments aimed at expanding operations and meeting increasing customer demand, while also leveraging technology to enhance efficiency and service quality [1][4]. Investment and Growth Plans - Spire plans to invest $790 million in fiscal 2025, which is $100 million more than its previous estimate, focusing on reliability, new service connections, and advanced meter installations in Spire Missouri [2]. - The company has a long-term capital investment plan of $7.4 billion over the next decade, expecting to drive 7-8% rate base growth [2]. Customer Base and Technological Advancements - There has been a consistent increase in the average number of gas utility customers, with Spire installing over 350,000 advanced meters in fiscal 2024, benefiting a total of 850,000 customers [3]. - The company is innovating through technology, which not only enhances service quality but also reduces operational costs, benefiting customers [4]. Challenges and Risks - Spire's supply of natural gas is reliant on the performance of suppliers and the capacity of pipeline and storage operators, posing a risk to financial performance in case of disruptions [5]. - The company faces regulatory challenges due to numerous environmental laws, which can increase operating costs and impact profitability if compliance is not met [6]. Stock Performance - Over the past six months, Spire's stock has increased by 14.6%, contrasting with a 3.5% decline in the industry [7]. Industry Comparisons - Other better-ranked stocks in the industry include UGI Corporation, Southwest Gas, and New Jersey Resources, all currently rated Zacks Rank 2 (Buy) [8]. - UGI has a long-term earnings growth rate of 4.8% with an average earnings surprise of 74.82% over the last four quarters [8]. - Southwest Gas has a long-term earnings growth rate of 6.6%, with a Zacks Consensus Estimate for 2025 EPS indicating a 17.1% improvement [9]. - New Jersey Resources has a fiscal 2025 EPS estimate showing a 7.5% improvement, with revenues projected at $1.84 billion, reflecting a 2.5% rise [9].

Core Viewpoint - Spire Global is facing significant financial challenges due to high debt levels and cash burn, but a potential sale of its maritime subsidiary could resolve these issues and position the company for growth [1][2][3]. Financial Situation - Spire Global has $131 million in debt and only $64 million in cash, having burned through $54 million in cash in 2023 [2]. - The company plans to sell its maritime ship-tracking subsidiary to Kpler for $241 million, which would eliminate its debt and provide sufficient cash to operate for at least three years [3][4]. Sale and Legal Issues - Kpler initially agreed to the acquisition but later attempted to back out, leading Spire to file a lawsuit to enforce the sale [5][6]. - Spire's management has indicated uncertainty regarding the lawsuit's outcome, which could force the company to repay its loans immediately if the deal fails [6]. Recent Earnings and Performance - In Q3 2024, Spire reported a 29% year-over-year increase in sales to $28.6 million and a significant reduction in GAAP losses to $12.5 million [9]. - The company generated positive free cash flow of $5.1 million and has a strong book-to-bill ratio of 1.4, indicating potential for future sales growth [9]. Current Status and Market Reaction - Despite positive earnings news and the potential for the Kpler deal to close soon, Spire's stock has not reacted favorably, with a 16% decline in stock price following the earnings report [10][11]. - The market has not yet fully recognized the implications of the Kpler deal, suggesting that Spire's stock could potentially double once investors understand the situation [12].

Company Overview - Spire Inc. reported Q1 fiscal 2025 earnings of $1.34 per share, missing the Zacks Consensus Estimate of $1.42 by 5.6% and declining 8.8% from $1.47 in the prior year [2] - Total revenues for the quarter were $669.1 million, missing the Zacks Consensus Estimate of $726 million by 7.8% and decreasing 11.6% from $756.6 million in the year-ago quarter [3] Financial Performance - Operating expenses totaled $520.3 million, down 15.7% from $617.4 million in the prior-year period [4] - Operating income was $148.8 million, compared to $139.2 million in the prior-year quarter [4] - Net interest expenses decreased 5.1% year over year to $48 million [4] Segment Performance - Gas Utility segment reported adjusted earnings of $77.8 million, up 2.6% from the prior-year quarter, driven by higher Spire Missouri ISRS revenues and improved margins at Spire Alabama [5] - Gas Marketing segment reported adjusted earnings of $2.2 million, down 69.4% from the prior-year quarter due to higher storage and transportation costs [6] - Midstream segment adjusted earnings totaled $12 million, up 400% from the year-ago quarter, attributed to higher Spire Storage earnings [7] - Other segment reported an adjusted loss of $10.9 million compared to a loss of $2.7 million in the prior-year quarter [7] Financial Highlights - Cash and cash equivalents as of December 31, 2024, were $11.5 million, up from $4.5 million as of September 30, 2024 [8] - Long-term debt as of December 31, 2024, totaled $3,697.7 million, slightly down from $3,704.4 million as of September 30, 2024 [8] - Net cash provided by operating activities in Q1 totaled $81.1 million, compared to $70 million in the year-ago period [8] Guidance and Outlook - Spire expects fiscal 2025 earnings to be in the range of $4.40-$4.60 per share, with the Zacks Consensus Estimate at $4.51 per share [10] - The company anticipates a 10-year capital investment of $7.4 billion, expected to drive annual rate-based growth of 7-8% [10] - Capital expenditures for fiscal 2025 are projected to be $790 million [10] Industry Context - Spire is part of the Zacks Utility - Gas Distribution industry, which has seen Atmos Energy (ATO) gain 2.3% over the past month [14] - Atmos reported revenues of $1.18 billion for the quarter ended December 2024, reflecting a year-over-year change of +1.5% [14]

Spire's biggest news of last year could become its worst news of this year.Spire Global (SPIR -52.59%) stock crashed 49.7% through 11:11 a.m. ET Wednesday, and a lot of investors are wondering why right now. What the heck is going on? There's neither a single press release about this nor anything on the company's website to explain the disaster.Lucky for you, I've found the answer.In a Securities and Exchange Commission 8-k filing last night, Spire Global warned investors about a major risk to their investm ...

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Core Insights - Spire Global, Inc. has secured a C$72 million ($50.40 million) agreement with the Canadian government to create a satellite network for tracking wildfires, leading to a surge in its stock price [1][5] - The WildFireSat mission, scheduled for launch in 2029, aims to provide critical data on wildfire dynamics, smoke, and air quality, focusing on peak burn periods [2] - The initiative is expected to address the significant financial burden of wildfires in Canada, which costs approximately C$1 billion annually, not including additional economic impacts [3] Group 1 - Spire Global Canada will design and build a specialized satellite constellation to support the WildFireSat mission [1] - The collaboration with OroraTech will develop essential payloads for the satellites, enhancing wildfire monitoring capabilities [2] - The project will involve Indigenous businesses through a partnership with the Alexis Nakota Sioux Nation, creating job opportunities and economic benefits for these communities [4] Group 2 - The CEO of Spire Global emphasized the importance of detecting wildfires as a significant satellite capability that benefits public safety, environmental health, and the economy [5] - Spire's stock price increased by 10.5%, reaching $20.39 following the announcement of the agreement [5]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $81.1 million or $1.34 per share for Q1 2025, a decrease from $82.7 million or $1.47 per share in the same quarter last year, reflecting a decline of approximately 8.8% in earnings per share [21][9] - The results were driven by growth in the Gas Utility and Midstream segments, offset by lower earnings in the marketing segment [22][9] Business Line Data and Key Metrics Changes - Gas utility earnings increased, particularly at Spire Alabama and Spire Gulf, while Spire Missouri experienced lower earnings [22] - The marketing segment's performance was lower due to reduced market volatility and higher transportation storage fees [24] - The Midstream segment saw strong earnings growth driven by new contracts and higher rates on contract renewals [23] Market Data and Key Metrics Changes - The first quarter experienced warmer than normal weather, with Missouri being 18% warmer than normal and Alabama 25% warmer than normal, impacting residential customer usage [25][25] - Despite the warm weather, the company managed to mitigate some temperature-sensitive margins in Alabama [25] Company Strategy and Development Direction - The company reaffirmed its long-term EPS growth target of 5% to 7% and a fiscal 2025 earnings guidance range of $4.40 to $4.60 per share [27][13] - The ten-year capital expenditure plan remains at $7.4 billion, focusing on reliability, system modernization, and new service connections [13][27] - The company aims to achieve consistent regulatory outcomes across all jurisdictions to ensure a sustainable financial outlook [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial and operational goals while executing strategies for organic growth and infrastructure investment [14][31] - The company is focused on maintaining a strong balance sheet and delivering natural gas safely and reliably [31][32] Other Important Information - The company filed a rate case in Missouri for new rates effective by October 2025, with an anticipated revenue increase of $19 million from the infrastructure system replacement surcharge [10][11] - The average customer bill in Missouri is expected to increase by approximately 15% or $14 per month if the rate case is approved [19][80] Q&A Session Summary Question: Weather impact for the quarter - Management acknowledged the warm start to winter and noted that there is still a lot of winter left, indicating potential for recovery in Q2 [36][37] Question: Marketing segment guidance - Management expressed confidence that the marketing segment can meet its guidance despite the first quarter results, citing a constructive backdrop for the second quarter [38][40] Question: Rate case strategy - Management indicated that the rate case is progressing as expected and highlighted the potential for discrete adjustments in the case [48][50] Question: Customer bill increase details - Management confirmed that the average customer bill increase is expected to be $14 to $15 per month, but noted that this would return average bills to levels prior to recent gas cost reductions [79][81] Question: Inflationary pressures on O&M - Management acknowledged ongoing cost pressures but maintained confidence in keeping O&M expenses flat for the year [82][83]

First quarter fiscal 2025 update February 5, 2025 Forward-looking statements and use of non-GAAP measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements in this presentation speak only as of today, and we assume no duty to update them. Forward- looking statements are typically identified by words such as, but not limited to: "estimates," "expects," "anticipates," "intends," "targets," "plans," " ...

Core Viewpoint - Spire Inc. reported disappointing first-quarter fiscal 2025 earnings, missing consensus estimates and showing a decline in both earnings per share and total revenues compared to the previous year [1][2]. Financial Performance - Earnings per share for the first quarter were $1.34, falling short of the Zacks Consensus Estimate of $1.42 by 5.6% and down 8.8% from $1.47 in the same quarter last year [1]. - Total revenues amounted to $669.1 million, missing the Zacks Consensus Estimate of $726 million by 7.8% and decreasing 11.6% from $756.6 million year-over-year [2]. Operating Expenses and Income - Operating expenses were reported at $520.3 million, a decrease of 15.7% from $617.4 million in the prior-year period [3]. - Operating income increased to $148.8 million compared to $139.2 million in the prior-year quarter [3]. - Net interest expenses decreased by 5.1% year-over-year to $48 million [3]. Segment Performance - **Gas Utility**: Adjusted earnings were $77.8 million, up 2.6% from the prior-year quarter, driven by higher contribution margins [4]. - **Gas Marketing**: Adjusted earnings fell to $2.2 million, a decline of 69.4% from the previous year, attributed to increased costs and reduced volatility [5]. - **Midstream**: Adjusted earnings surged to $12 million, a 400% increase from the year-ago quarter, due to higher Spire Storage earnings [6]. - **Other**: This segment reported an adjusted loss of $10.9 million, worsening from a loss of $2.7 million in the prior-year quarter [6]. Cash Flow and Debt - Cash and cash equivalents as of December 31, 2024, were $11.5 million, up from $4.5 million as of September 30, 2024 [7]. - Long-term debt (less current portion) was $3,697.7 million as of December 31, 2024, slightly down from $3,704.4 million as of September 30, 2024 [7]. - Net cash provided by operating activities totaled $81.1 million, compared to $70 million in the year-ago period [7]. Future Guidance - The company expects fiscal 2025 earnings to be in the range of $4.40-$4.60 per share, with the Zacks Consensus Estimate at $4.51 per share [8]. - Spire plans a 10-year capital investment of $7.4 billion, aiming for an annual rate-based growth of 7-8% [8]. - Capital expenditures for fiscal 2025 are projected to be $790 million [8].