Financial Performance - Q3 FY25 adjusted earnings were $001 per share, compared to $(014) in Q3 FY24[8] - The company affirms FY25 adjusted EPS guidance range of $440 to $460[8] - Q3 YTD FY25 capex reached $700 million, driven by Gas Utility investment[26] - The company raised FY25 capex target to $875 million from $840 million[26] Strategic Initiatives - The company entered into an agreement to acquire the Piedmont Natural Gas Tennessee business from Duke Energy for $248 billion[8] - Combined investment opportunities related to the Piedmont Natural Gas Tennessee acquisition are estimated at $44 billion over five years (2025-2029)[10] - The company's 10-year capex plan remains at $74 billion (FY25-FY34)[8, 30] Regulatory Updates - A unanimous settlement agreement was filed on August 4, 2025, in the Missouri rate case, projecting a $210 million annual revenue increase[8, 15] - The Missouri Public Service Commission (MoPSC) approved $190 million in Infrastructure System Replacement Surcharge (ISRS) revenues, effective May 2025[8] - The new rates in Missouri are expected to be effective October 24, 2025, leading to an average residential customer bill increase of approximately 11%, or around $9 per month[15] Growth Outlook - The company maintains a long-term adjusted EPS growth target of 5-7%, using the original FY24 guidance midpoint of $435 as a base[8, 9]

Core Insights - Spire reported revenue of $421.9 million for the quarter ended June 2025, reflecting a year-over-year increase of 1.9% and surpassing the Zacks Consensus Estimate by 2.16% [1] - The company achieved an EPS of $0.01, a significant improvement from -$0.14 in the same quarter last year, resulting in an EPS surprise of 111.11% [1] Revenue Performance - Operating Revenues from Gas Utility were $347.5 million, which was below the estimated $356.49 million, marking a decline of 6.8% year-over-year [4] - Gas Marketing revenues reached $43.1 million, exceeding the average estimate of $20.22 million, representing a substantial increase of 103.3% year-over-year [4] - Midstream revenues were reported at $42.2 million, surpassing the estimate of $31.86 million, with a year-over-year growth of 29.9% [4] - Other revenues amounted to $5.7 million, exceeding the estimate of $4.47 million, reflecting an 18.8% increase year-over-year [4] - Eliminations reported a figure of -$16.6 million, slightly better than the estimated -$17 million, with a year-over-year change of -2.9% [4] Operating Income - Operating Income from Gas Marketing was $28.7 million, significantly higher than the estimated $1.48 million [4] - Midstream Operating Income was reported at $23.8 million, exceeding the average estimate of $18.55 million [4] - Gas Utility Operating Income was $16.6 million, which fell short of the estimated $23.65 million [4] - Other Operating Income was $0.1 million, compared to the estimated -$0.23 million [4] Stock Performance - Spire's shares have returned 2.6% over the past month, outperforming the Zacks S&P 500 composite's 1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Spire reported quarterly earnings of $0.01 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 per share, and showing improvement from a loss of $0.14 per share a year ago, resulting in an earnings surprise of +111.11% [1] - The company posted revenues of $421.9 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.16% and showing an increase from $414.1 million year-over-year [2] - Spire's stock has increased by approximately 11.9% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The future performance of Spire's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, including current consensus earnings expectations for upcoming quarters [4][6] - The current consensus EPS estimate for the next quarter is -$0.34 on revenues of $310.77 million, while for the current fiscal year, it is $4.50 on revenues of $2.44 billion [7] Industry Context - The Utility - Gas Distribution industry, to which Spire belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Sempra, another company in the same industry, is expected to report quarterly earnings of $0.83 per share, reflecting a year-over-year decline of 6.7%, with revenues anticipated to be $3.15 billion, up 4.7% from the previous year [9][10]

Core Insights - Spire Inc. reported adjusted earnings per share of $0.01 for the third quarter of fiscal 2025, an increase of $0.15 compared to the previous year, driven by improved performance across all segments [1][7] - The company reaffirmed its fiscal 2025 adjusted earnings guidance range of $4.40 to $4.60 per share, indicating confidence in sustainable growth and long-term value creation [2][17] - Spire announced the acquisition of Piedmont Natural Gas Tennessee business for $2.48 billion, expected to close in the first quarter of calendar 2026, which is anticipated to enhance its regulated utility footprint and financial performance [3][7] Financial Performance - For the third quarter ended June 30, 2025, Spire reported a net income of $20.9 million, or $0.29 per diluted share, compared to a loss of $12.6 million, or $(0.28) per share, in the same period last year [7][25] - Adjusted earnings for the third quarter were $4.1 million, or $0.01 per share, compared to a loss of $4.3 million, or $(0.14) per share, in the prior year [7][27] - The Gas Utility segment reported an adjusted loss of $10.0 million, an improvement from a loss of $11.0 million in the previous year, while Gas Marketing and Midstream segments saw adjusted earnings of $5.3 million and $16.2 million, respectively [5][11][12] Segment Analysis - The Gas Utility segment's contribution margin increased by $4.2 million, primarily due to higher Infrastructure System Replacement Surcharge revenues, despite lower usage net of weather mitigation [8][15] - Gas Marketing adjusted earnings increased significantly from $1.0 million to $5.3 million, attributed to the business being well-positioned to create value [11] - Midstream adjusted earnings rose from $13.9 million to $16.2 million, driven by higher storage earnings due to additional capacity and asset optimization [12][16] Strategic Initiatives - The acquisition of Piedmont Natural Gas Tennessee is seen as a strategic fit that supports long-term adjusted earnings per share growth of 5-7% [3][7] - The company filed a unanimous stipulation and agreement in the Spire Missouri rate case, which is pending approval by the Missouri Public Service Commission, reflecting a commitment to reliable and affordable energy [4][7] - Spire's capital investment target is set at $7.4 billion over the next 10 years, focusing on infrastructure upgrades and new business in the Gas Utility segment, with fiscal 2025 capital expenditures increased to $875 million from $840 million [18][17]

Core Viewpoint - The Zacks Utilities sector is expected to see a 0.7% increase in earnings for Q2 2025, driven by higher revenues of 7.5%, supported by new rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - MDU Resources Group is anticipated to benefit from customer growth in electric and natural gas sectors, with an Earnings ESP of +20% and a Zacks Rank 2, despite a projected earnings decrease of 59.4% year-over-year [7][8] - ONE Gas is expected to report earnings of $1.75 per share, reflecting a 37.8% increase from the previous year, supported by new rates and infrastructure investments, with an Earnings ESP of +3.22% and a Zacks Rank 2 [9][10] - Sempra Energy's earnings are projected at 83 cents per share, a decrease of 6.7% from the prior year, benefiting from renewable energy investments and data center demand, with an Earnings ESP of +0.60% and a Zacks Rank 2 [11] - Spire is expected to show an improvement in fiscal third-quarter earnings, with a projected loss of 9 cents per share, indicating a 35.7% improvement year-over-year, supported by advanced meter installations and customer growth, with an Earnings ESP of +14.81% and a Zacks Rank 3 [12][13] Group 2: Factors Influencing Performance - Utility providers are benefiting from higher electricity rates, acquisitions, cost reductions, and energy-efficiency programs, which enhance their overall performance [3] - The installation of smart meters is improving operational efficiency and customer engagement, leading to reduced costs and increased revenue [4] - The growing demand from data centers, particularly those supporting artificial intelligence, is significantly increasing electricity consumption, positively impacting utility revenues [5] - Economic improvements in service territories are creating fresh demand for utility services, further boosting revenues [4][5][6]

Summary of Spire's Acquisition Conference Call Company and Industry - **Company**: Spire (SR) - **Industry**: Natural Gas Utility Core Points and Arguments - **Acquisition Announcement**: Spire announced the acquisition of Piedmont Natural Gas Tennessee LDC business from Duke Energy for $2.48 billion on a cash-free, debt-free basis, marking a significant strategic milestone for the company [4][5] - **Strategic Fit**: The acquisition enhances Spire's scale, diversifies its portfolio, and reinforces its commitment to long-term sustainable growth, particularly in the Nashville Metro Area, one of the fastest-growing regions in the U.S. [5][6] - **Earnings Growth**: The acquisition is expected to be accretive to adjusted earnings per share (EPS) and supports Spire's long-term growth target of 5% to 7% [6][16] - **Infrastructure Expansion**: The deal will add nearly 3,800 miles of distribution and transmission pipelines, approximately 205,000 customers, and a rate base of $1.6 billion to Spire's existing utility segment [7][12] - **Regulatory Environment**: Tennessee is described as having a constructive regulatory environment, which is expected to support timely recovery of capital investments through an annual rate review mechanism [14][23] - **Financial Benefits**: The acquisition is projected to increase Spire's five-year capital plan by over 25% and produce significant cost efficiencies across the enterprise [8][10] Additional Important Content - **Customer Base Growth**: The acquisition will increase Spire's customer base by 12% and expand its pipeline network by 6% [12] - **Operational Excellence**: Piedmont Natural Gas has a strong track record of operational excellence and customer service, aligning with Spire's values [7][14] - **Geographic Diversity**: The acquisition improves Spire's geographic diversity, enhancing its presence across Missouri, Alabama, Mississippi, and now Tennessee [12][15] - **Market Dynamics**: The Nashville Metro Area is home to major employers and has a robust housing market, supporting long-term growth for Spire [13] - **Financing Strategy**: Spire plans to secure a bridge facility for the acquisition and is pursuing a permanent financing plan that includes a balanced mix of debt, equity, and hybrid securities [10][39] - **Regulatory Approval Timeline**: Spire expects to file for regulatory approval with the Tennessee Public Utility Commission within 45 days and anticipates closing the transaction in 2026 [10][23] This summary encapsulates the key points discussed during the conference call regarding Spire's acquisition of Piedmont Natural Gas, highlighting the strategic, financial, and operational implications of the transaction.

July 29, 2025 Forward-looking statements and use of non-GAAP measures This presentation contains "forward looking statements," including Spire Inc. ("Spire") management's guidance regarding the impact of the proposed transaction on Spire, including the potential impact on earnings per share and the return on equity and other potential economic benefits to Spire. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of ...

Duke Energy agreed to sell its Tennessee Piedmont Natural Gas business to Spire for $2.5 billion. https://t.co/qUjB6nbZTm ...

Core Viewpoint - Spire Inc. has announced the acquisition of Piedmont Natural Gas's Tennessee local distribution company for $2.48 billion, which is expected to enhance its regulated utility footprint and support long-term earnings growth [2][4][7]. Acquisition Details - The acquisition is structured on a cash-free, debt-free basis, with a purchase price multiple of 1.5x the estimated rate base in 2026 [2]. - The transaction is anticipated to close in the first quarter of 2026, pending regulatory approvals and customary closing conditions [10]. Strategic Rationale - The acquisition significantly expands Spire's regulated business scale, adding to its existing operations in Missouri, Alabama, and Mississippi [4][7]. - It diversifies and de-risks growth by providing robust customer additions and system integrity investments in a favorable regulatory environment [7]. - Spire aims to increase its utility customer base to nearly two million homes and businesses through this acquisition [5]. Financial Implications - The transaction is expected to be accretive to adjusted earnings per share and supports long-term growth expectations of 5-7% [2][8]. - It generates significant cash flow to support business investments, shareholder returns, and dividend growth [8]. Financing Structure - The acquisition will be financed through a fully committed bridge facility and a balanced mix of debt, equity, and hybrid securities [9]. - Spire is also considering the sale of non-utility assets as a potential funding source [9]. Customer and Community Focus - Spire emphasizes its commitment to customer service and community engagement, aiming to build on the existing foundation of Piedmont Natural Gas [6][7]. - The integration of Piedmont Natural Gas is expected to enhance service delivery in the Nashville area [3][5].

"The transaction allows us to efficiently fund accelerating investment opportunities driven by record customer growth and a deepening economic development pipeline," said Harry Sideris, Duke Energy president and chief executive officer. "We're confident Spire will support the continued growth and success of the Tennessee natural gas business and serve as an incredible operator for the benefit of employees, customers and communities." Sideris added, "I want to thank our customers and the Nashville community ...