Key Takeaways Spire is investing in system upgrades and acquisitions to expand and enhance service reliability.SR plans $809M in 2026 capex and a long-term investment of $4.8B for 2026-2030.SR's $2.48B Tennessee pipeline acquisition will add 200,000 customers.Spire Inc. (SR) has been focusing on systematic investments in infrastructure upgradation, acquisition of complementary assets to expand its operations and enhance service reliability. The company’s long-term (three to five years) earnings growth rate ...

Core Viewpoint - Black Hills Corp. has filed a rate review application with the Arkansas Public Service Commission, seeking $29.4 million in new annual revenue to cover capital infrastructure and operational costs for its natural gas utility serving over 189,000 customers in Arkansas [1][2]. Summary by Sections Rate Review Application - The company is requesting $29.4 million in new annual revenue to recover necessary costs for safe and reliable natural gas service [1]. - This request is based on a capital structure of 50.2% equity and 49.8% debt, with a targeted return on equity of 10.5% [3]. Infrastructure Investments - Black Hills Corp. aims to recover approximately $147 million invested in safety, reliability, and system integrity for its natural gas pipeline infrastructure since the last general rate filing in 2023 [2]. - These investments are essential for system growth and compliance with state and federal regulations [2]. Company Overview - Black Hills Corp. serves 1.35 million natural gas and electric utility customers across eight states, including Arkansas, Colorado, and South Dakota [4]. - The company emphasizes its commitment to providing safe and reliable natural gas service while supporting growth through critical infrastructure investments and prudent cost management [3].

PresentationGood day, and welcome to the ONE Gas 2026 Financial Guidance Conference Call and Webcast. Today's conference is being recorded. At this time, I would like to turn the conference over to Erin Dailey. Please go ahead, Ms. Dailey.Erin Dailey Good morning, and thank you for joining us for our 2026 financial guidance conference call. Our guidance presentation can be found on the Investor page in the Financials and Filings section at www.onegas.com. This call is being webcast live and a replay will be ...

2026 Financial Guidance December 2025 About Us ONE Gas, Inc. (NYSE: OGS) is a 100-percent regulated natural gas utility and is one of the largest natural gas utilities in the United States. ONE Gas provides natural gas distribution services to approximately 2.3 million customers in Kansas, Oklahoma and Texas. Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita and Topeka, Kansas; and Austin and El Paso, Texas. We deliver natural gas for ...

Core Points - ONE Gas, Inc. announced the retirement of John W. Gibson as chair of the board after the Annual Meeting for Shareholders in May 2026, marking his leadership since the company's inception in 2014 [1] - Deborah A.P. Hersman has been elected as the new chair of the board, effective May 21, 2026, following a comprehensive succession planning process [1] - Hersman brings extensive experience in safety, technology, and public policy, having previously served as chair of the National Transportation Safety Board and chief safety officer of Waymo [1][6][7] Company Overview - ONE Gas, Inc. is a 100-percent regulated natural gas utility, trading on the New York Stock Exchange under the symbol "OGS" and included in the S&P MidCap 400 Index [3] - The company provides reliable and affordable energy to over 2.3 million customers across Kansas, Oklahoma, and Texas, with divisions including Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service [4] Leadership Transition - John W. Gibson's leadership is credited with creating value for shareholders and establishing a framework for growth during his tenure [1] - Deborah Hersman's election is seen as a move to strengthen the board's diversity of experience and strategic focus, aligning with the company's commitment to operational excellence and sustainable growth [1][2]

Financial Data and Key Metrics Changes - Adjusted EPS for Fiscal 2025 was $4.44, up 7.5% from $4.13 in Fiscal 2024, reflecting growth across all segments driven by infrastructure investments [5][14] - Adjusted earnings for Fiscal 2025 totaled $275.5 million compared to $247.4 million in the prior year, with a fourth-quarter adjusted loss of $24 million due to seasonality [14][15] - The company invested $922 million in Fiscal 2025, with nearly 90% allocated to utilities to enhance system reliability and safety [6] Business Line Data and Key Metrics Changes - Gas utilities earned $231 million, an increase of almost 5% from the previous year, driven by interest recovery in Missouri and new rates in Alabama [15] - Midstream earnings rose to $56 million, up nearly $23 million, due to additional capacity and asset optimization in Spire Storage [15] - Gas marketing earnings increased to $26 million, reflecting a well-positioned business despite higher storage and transportation fees [15] Market Data and Key Metrics Changes - New rates in Missouri became effective in October, and Alabama is undergoing a rate stabilization process [7][19] - The company noted that natural gas remains the most affordable energy source compared to electricity, which is two to three times more expensive [7] Company Strategy and Development Direction - The company is focused on a long-term capital plan totaling $11.2 billion, with 70% dedicated to safety and reliability projects [16][12] - The pending acquisition of the Piedmont Natural Gas Tennessee business is expected to close in the first quarter of calendar 2026, enhancing operational capabilities across states with constructive regulatory frameworks [10][12] - The company aims for long-term adjusted EPS growth of 5%-7%, supported by expected rate-based growth in Missouri and Tennessee [9][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Fiscal 2026 adjusted EPS guidance of $5.25-$5.45, driven by regulatory outcomes and infrastructure investments [23][17] - The company is committed to maintaining a strong balance sheet while pursuing strategic growth and operational excellence [23][24] - Management highlighted the importance of regulatory engagement and disciplined cost management to support ongoing investments [23] Other Important Information - The company approved a dividend increase of 5.1%, marking the 23rd consecutive year of dividend growth [9] - The company is evaluating the sale of its gas storage facilities as a potential source of funds [11] Q&A Session Summary Question: Long-term growth rate and earned ROEs - Management indicated that earned returns in Missouri are improving, with a future test year rate case planned for next year [28][29] Question: FFO to debt target - Management expects to move towards the middle of the threshold bands for both Moody's and S&P, driven by recoveries in Missouri [33][34] Question: Financing mix and timing - Management confirmed confidence in a balanced mix of debt and equity, with minimal common equity issuance expected [39][40] Question: O&M assumptions and integration planning - Management aims to keep O&M expenses below inflation and will incorporate best practices during integration [41][42] Question: Future test year rate adjustment - Management acknowledged the need for collaboration among all parties to understand the new rate-making process [59][60] Question: Dividend payout ratios and growth - Management targets a payout ratio of 55%-65% and expects dividends to grow at the earnings growth rate [64] Question: Long-term capital needs and equity - Management anticipates minimal equity needs, around $0-$50 million annually, to support utility CapEx [66]

Financial Data and Key Metrics Changes - Adjusted EPS for Fiscal 2025 was $4.44, a 7.5% increase from $4.13 in Fiscal 2024, reflecting growth across all segments driven by infrastructure investments [5][12] - Adjusted earnings for Fiscal 2025 totaled $275.5 million, compared to $247.4 million in the prior year [12][13] - The company invested $922 million in Fiscal 2025, with nearly 90% allocated to utilities [5] Business Line Data and Key Metrics Changes - Gas utilities earned $231 million, up nearly 5% from the previous year, driven by interest recovery in Missouri and new rates in Alabama [13] - Midstream earnings increased to $56 million, up almost $23 million from last year, due to additional capacity and asset optimization [14] - Gas marketing earnings rose to $26 million, an increase of $2.5 million, reflecting a well-positioned business despite higher storage and transportation fees [14] Market Data and Key Metrics Changes - New rates in Missouri became effective in October, and Alabama is undergoing a rate stabilization process [6][18] - The company expects total rate base and capitalization to grow to $10.7 billion by Fiscal Year 2030 from an estimated $8.2 billion at the end of Fiscal 2026 [11] Company Strategy and Development Direction - The company is focused on operational excellence, regulatory engagement, financial discipline, and strategic growth [22] - A pending acquisition of the Piedmont Natural Gas Tennessee business is expected to close in the first quarter of calendar 2026, enhancing operational capabilities [9][10] - The long-term adjusted EPS growth target is set at 5%-7%, supported by a robust capital plan totaling $11.2 billion over ten years [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Fiscal 2026 adjusted EPS guidance of $5.25-$5.45, driven by regulatory outcomes and infrastructure investments [22][23] - The company is committed to maintaining affordability for customers while investing in critical infrastructure [6][15] - Management highlighted the importance of collaboration with stakeholders in Missouri to establish a future test year rate-setting model [7][26] Other Important Information - The Board of Directors approved a dividend increase of 5.1%, bringing the annualized rate to $3.30 per share, marking the 23rd consecutive year of dividend increases [8] - The company is targeting a minimal amount of common equity issuance as part of its financing strategy [10][21] Q&A Session Summary Question: Long-term growth rate and ROEs - Management indicated expectations for continued improvement in earned ROEs, particularly in Missouri, with a future test year rate case planned [25][26] Question: Financing mix and timing - Management confirmed confidence in a balanced mix of debt and equity for financing, with ongoing evaluation of the storage business [31][32] Question: O&M assumptions and integration planning - Management aims to keep O&M expenses below inflation, leveraging best practices during integration activities [33][34] Question: Future test year rate adjustment implications - Management acknowledged potential improvements in earned ROE with the future test year but emphasized caution in making predictions [36] Question: Storage asset sale interest - Management noted strong interest in the storage assets but is still in the evaluation process [37][38] Question: Dividend payout ratios and growth - Management targets dividend growth in line with earnings growth, maintaining a payout ratio of 55%-65% [46] Question: Long-term capital needs and equity outlook - Management anticipates minimal equity needs, estimating $0-$50 million annually to support utility CapEx [47]

Core Insights - Spire Inc. reported consolidated adjusted earnings per share of $4.44 for fiscal year 2025, reflecting a 7.5% increase from $4.13 in fiscal 2024, driven by improved gas utility and midstream earnings [1][8][10]. Financial Performance - For fiscal 2025, Spire's total adjusted earnings reached $275.5 million, up from $247.4 million in fiscal 2024 [8][10]. - The net income for fiscal 2025 was $271.7 million, compared to $250.9 million in fiscal 2024 [8][10]. - The company expects adjusted EPS for fiscal 2026 to be in the range of $5.25 to $5.45 and for fiscal 2027 to be between $5.65 and $5.85 [12][13]. Segment Performance - Gas Utility adjusted earnings increased to $231.4 million in fiscal 2025 from $220.8 million in fiscal 2024, primarily due to higher earnings at Spire Missouri and Spire Alabama [3][10]. - Midstream adjusted earnings rose significantly to $56.3 million in fiscal 2025 from $33.5 million in fiscal 2024, attributed to additional storage capacity and new contracts at higher rates [10][11]. - Gas Marketing adjusted earnings improved to $25.9 million in fiscal 2025 from $23.4 million in fiscal 2024, benefiting from a favorable market position [9][10]. Operational Highlights - Contribution margin increased by $37.5 million, mainly due to new rates at Spire Alabama and higher ISRS revenues at Spire Missouri, despite lower usage [4][10]. - Operating and maintenance expenses rose by $13.1 million, or 3.1%, due to higher employee costs and non-payroll related expenses [5][10]. - Depreciation expense increased by $14.0 million, reflecting higher capital investments [6][10]. Dividend and Capital Investment - The board of directors raised the common stock dividend by 5.1%, marking 23 consecutive years of dividend growth [15]. - Spire has increased its 10-year capital investment target to $11.2 billion, supporting long-term adjusted EPS growth of 5-7% [14].

Core Viewpoint - ONEOK (OKE) has experienced a significant decline of 28% over the past year, including dividends, with its stock price nearly halved since its peak in November 2024 [1] Group 1: Stock Performance - The three-year performance of ONEOK is characterized by substantial underperformance compared to market expectations [1] Group 2: Investment Strategy - The analysis emphasizes a fundamental approach to investment, focusing on individual issues and asset classes that are currently out of favor, presenting a favorable risk/reward trade-off [1]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $7.46, marking the 23rd consecutive year of earnings per share growth and the 41st consecutive year of dividend growth [3][10] - Consolidated capital spending increased to $3.6 billion, with 87% dedicated to improving safety and reliability [10] - Rate base increased by 14% to an estimated $21 billion as of September 30 [10] Business Line Data and Key Metrics Changes - Approximately 57,000 residential customers were added during fiscal 2025, with over 44,000 of those in Texas [4] - Nearly 3,200 commercial customers and 29 industrial customers were added, with anticipated annual consumption of approximately 4 BCF of gas from industrial customers [4] - Over the last five years, the company has added nearly 300,000 residential and commercial customers and 225 industrial customers, equivalent to nearly 1.2 million residential customers on a volumetric basis [4] Market Data and Key Metrics Changes - Texas added jobs at a faster rate than the nation, growing at a rate of 1.14% [5] - The current population estimate for the Dallas-Fort Worth metroplex is approximately 8.6 million, projected to be the third largest metropolitan area in the U.S. by 2030 [5] Company Strategy and Development Direction - The company plans to invest $26 billion over the next five years, with approximately 85% allocated to safety and reliability [7][14] - The five-year plan reflects the impact of Texas House Bill 4384, allowing for quicker recovery of capital spending [8][15] - The company anticipates earnings per share growth of 6%-8% from the midpoint of its rebased fiscal 2026 guidance [8][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety, reliability, and modernization of natural gas systems to meet customer and community expectations [18][20] - The company remains focused on maintaining a strong balance sheet and available liquidity, with $4.9 billion in liquidity [20] Other Important Information - The company completed integrity inspections for its Bethel Salt Dome Caverns and is working on further inspections [7] - The average monthly natural gas bill for residential customers is expected to remain the lowest utility bill in the home [20] Q&A Session Summary Question: Discussion on larger load customers and Refresh Capital plan - Management indicated that 85% of spending is dedicated to safety and reliability, with modest growth included in the plan [24] Question: Capital recovery and its impact on growth - Management stated that the capital recovery process has been consistent and is part of their long-term planning since 2011 [26] Question: EPS rebase and impact of Texas legislation - Management confirmed that the impact of House Bill 4384 is included in the rebased earnings per share guidance [46] Question: O&M budgeting for 2026 - Management explained that the O&M budget is consistent with previous years, with adjustments based on compliance and system monitoring needs [34] Question: Long-term gas price assumptions - Management noted that the long-term gas price assumptions are based on the forward curve and that residential gas bills are expected to remain competitive [41][42] Question: Dividend guidance and its sustainability - Management indicated that the dividend has been increased by 15% to align with rebased earnings per share guidance, with intentions to grow the dividend in line with earnings growth [52]