Spire Benefits From Infrastructure Upgrades & Expanding Customer Base

Core Viewpoint - Spire Inc. is benefiting from systematic capital investments aimed at strengthening infrastructure and improving service reliability, alongside an expanding natural gas customer base [1] Group 1: Positive Factors - Spire's capital expenditures for fiscal 2025 are projected to be $840 million, an increase from the previous guidance of $790 million, with notable increases in Spire Missouri and Midstream for storage expansion projects [2] - The company has invested nearly $103 million in advanced meter installations, with over 350,000 advanced meters installed in fiscal 2024, benefiting a total of 850,000 customers [3] - Spire is expanding its customer base through acquisitions, such as MoGas and Omega pipeline systems, which added approximately 263 miles of interstate natural gas pipelines to its network, enhancing service in St. Louis, MO [4] Group 2: Challenges - As a holding company with no significant assets, Spire relies on its operating units to meet financial obligations, making it vulnerable if subsidiaries fail to generate sufficient net income and cash flows [5] - The company's financial performance could be adversely affected by disruptions in the transmission and storage capacity of interstate natural gas pipelines during peak demand periods [5] Group 3: Stock Performance - Over the past six months, Spire's shares have increased by 12.7%, outperforming the industry's growth of 3.1% [6] Group 4: Industry Comparisons - Other stocks in the industry with better rankings include UGI Corporation (Zacks Rank 1), Atmos Energy (Zacks Rank 2), and ONE Gas (Zacks Rank 2), with UGI's long-term earnings growth rate at 5.2% and a projected 2.3% year-over-year EPS improvement for fiscal 2025 [8] - Atmos Energy has a long-term earnings growth rate of 7.19% with a projected 6% year-over-year EPS improvement for fiscal 2025, while ONE Gas has a long-term growth rate of 5.56% and a projected 9.7% year-over-year EPS improvement [9]