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]

Core Insights - MDU Resources Group, Inc. reported third quarter financial results for 2025, highlighting strong performance in the pipeline segment and regulatory activities in utility segments, despite increased operational costs [1][2][4] Financial Performance - Net income for Q3 2025 was $18.4 million, down from $64.6 million in Q3 2024, with earnings per share (EPS) at $0.09 compared to $0.32 in the previous year [2][19] - Income from continuing operations increased to $18.4 million from $15.6 million year-over-year, with diluted EPS from continuing operations at $0.09, up from $0.08 [2][19] - For the nine months ended September 30, 2025, net income was $114.1 million, down from $225.9 million in 2024, with EPS decreasing from $1.11 to $0.56 [2][19] Segment Performance Electric Utility Segment - The electric utility segment reported a net income of $21.5 million in Q3 2025, down $2.8 million from the previous year, primarily due to higher operation and maintenance expenses [4][26] - Retail sales volumes declined by 1.6%, attributed to cooler summer temperatures, although industrial retail sales volumes increased [4][26] Natural Gas Distribution Segment - The natural gas distribution segment experienced a seasonal loss of $18.2 million in Q3 2025, compared to a loss of $17.5 million in Q3 2024, driven by higher operational costs [5][30] - Operating revenues increased by 8.0% year-over-year to $144.3 million, with total operating expenses rising by 7.4% [27] Pipeline Segment - The pipeline segment reported net income of $16.8 million in Q3 2025, up from $15.1 million in Q3 2024, driven by revenue from growth projects and increased customer demand [10][32] - Operating revenues for the pipeline segment increased by 11.5% year-over-year to $57.4 million [31] Regulatory Updates - MDU Resources is actively involved in regulatory proceedings across multiple states, including rate case filings in Montana and Wyoming, seeking annual increases of $14.1 million and $7.5 million, respectively [9][30] - The North Dakota Public Service Commission approved the acquisition of a 49% interest in Badger Wind Farm, which is expected to enhance the company's renewable energy portfolio [4][9] Guidance and Future Outlook - The company narrowed its earnings guidance for 2025 to a range of $0.90 to $0.95 per share, reflecting a slight adjustment based on performance through Q3 [3][11] - MDU Resources anticipates continued customer growth at a rate of 1% to 2% annually, with ongoing capital investment and rate recovery plans [17][30]

Financial Data and Key Metrics Changes - The trailing 12-month return on equity (ROE) improved to 8.3% [4] - Earnings per share (EPS) related to continuing operations improved by $13.4 million, or $0.19 per diluted share compared to the previous year's third quarter, with consolidated EPS for the quarter at $3.74 per diluted share [25] - Full-year net income is now expected toward the top end of the $265 million-$275 million range [6][34] Business Line Data and Key Metrics Changes - Utility operating margin increased by $26.8 million, primarily driven by $22.3 million of combined rate relief across all jurisdictions and $1.6 million from customer growth [26] - Operating and maintenance (O&M) expenses increased by $4.1 million compared to the prior year quarter, mainly due to variable labor and benefit costs, including a $4 million increase in incentive compensation [26] Market Data and Key Metrics Changes - The company reported a significant increase in cash balance to nearly $780 million, with over $1.5 billion of liquidity across the business [9] - The company successfully completed the full deconsolidation and separation of Centuri, generating nearly $1.4 billion of net sale proceeds [7] Company Strategy and Development Direction - The company is focused on its natural gas-regulated business, aiming to address increasing energy needs in its growing service territories [4] - The anticipated rate case roadmap includes new rates in California in 2026 and requests for alternative forms of rate-making in Arizona and Nevada [6] - The company is optimistic about improved rate-making opportunities and is committed to delivering exceptional customer service while achieving strong financial performance [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding future regulatory environments in all jurisdictions and highlighted the potential for incremental growth driven by regional energy demand [5][6] - The company is confident in its trajectory as a leading pure-play natural gas business, focusing on robust organic rate-based growth [35] Other Important Information - S&P upgraded the company's issuer and senior unsecured long-term debt credit ratings to BBB+ with stable outlooks [9] - The CFO will be leaving the company on December 1, and an internal and external search process for a successor has been initiated [10] Q&A Session Summary Question: Can you walk through the specific timelines for the Great Basin project? - Management indicated that they are finalizing precedent agreements and expect to complete this process within the next week, with updates to be provided in the fourth quarter call [39][40] Question: What are the expectations for the formula rate in Arizona? - The company expects to file a rate case in March 2026, with new rates potentially effective by October 2026, and anticipates that alternative rate-making adjustments could begin as early as 2028 [19][21] Question: What is the cash position and timeline for using cash for construction? - The company plans to keep cash in short-term investments until construction starts, with ongoing assessments of the Great Basin project [64][65] Question: Will the company provide EPS guidance in the fourth quarter call? - The company expects to provide longer-term EPS guidance that incorporates potential opportunities along the line [66]

Financial Data and Key Metrics Changes - The trailing 12-month return on equity (ROE) improved to 8.3% [5] - Earnings per share (EPS) from continuing operations improved by $13.4 million, or $0.19 per diluted share, compared to the previous year's third quarter, with consolidated EPS for the quarter at $3.74 per diluted share [26][30] - Full-year net income is now expected toward the top end of the $265 to $275 million range [7][35] Business Line Data and Key Metrics Changes - Utility operating margin increased by $26.8 million, primarily driven by $22.3 million of combined rate relief across all jurisdictions and $1.6 million from customer growth [27] - Operating and maintenance (O&M) expenses increased by $4.1 million, mainly due to variable labor and benefit costs, including a $4 million increase in incentive compensation [27] - Year-to-date O&M expense is up approximately 2.5%, which is less than inflation, reflecting continued cost discipline [27] Market Data and Key Metrics Changes - The company successfully completed the full deconsolidation and separation of Centuri, generating nearly $1.4 billion of net sale proceeds, which were used to repay all debt at the holding company [8][10] - The cash balance increased to nearly $780 million, with over $1.5 billion of liquidity across the business [10][11] Company Strategy and Development Direction - The company is focused on its natural gas-regulated business and is optimistic about future regulatory environments in all jurisdictions [5][6] - Anticipated rate cases in California, Arizona, and Nevada are expected to improve rate-making opportunities and enhance returns for shareholders [7][19] - The company aims to sustain robust organic rate-based growth driven by strong regional demand while enhancing earnings through disciplined financial management and operational excellence [36] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future and the promising opportunities ahead, particularly in light of strong economic activity in service areas and positive regulatory outcomes [11][35] - The company is committed to maintaining an investment-grade profile and has received an S&P upgrade to BBB+ with stable outlooks [10][33] Other Important Information - Rob Stefani, the CFO, will be leaving the company on December 1, and the board has initiated a search for his successor [11][12] - The company plans to continue paying a competitive dividend to shareholders, with planned payouts in 2025 expected to result in a payout ratio competitive with natural gas peers [32] Q&A Session Summary Question: Update on Great Basin project timelines and capital costs - Management discussed the finalization of precedent agreements and the potential for a supplemental open season to clarify capacity needs, with updates expected in the fourth quarter [39][41] Question: Clarification on margin increase components - The margin increase was attributed to rate relief, customer growth, and recovery mechanics on interest recovery [48] Question: Timeline for FERC filing and potential obstacles - Management confirmed that they are still targeting a November 2028 in-service date and do not foresee major obstacles, focusing on finalizing commitments from shippers [50][78] Question: Cash position and construction timeline for Great Basin - Cash will remain in short-term investments until construction starts, with management assessing the project scope and timing [63][66] Question: EPS guidance for the fourth quarter - Management indicated that they expect to provide longer-term EPS guidance in the future, incorporating potential opportunities [67]

Financial Data and Key Metrics Changes - The trailing 12-month return on equity (ROE) improved to 8.3%, reflecting a commitment to consistent ROE improvement over the years [4] - Consolidated earnings per share (EPS) for the quarter was $3.74 per diluted share, with a year-over-year increase of $13.4 million or $0.19 per diluted share [23] - Full-year net income is now expected toward the top end of the $265 to $275 million range [5][32] Business Line Data and Key Metrics Changes - Utility operating margin increased by $26.8 million, primarily driven by $22.3 million of combined rate relief across all jurisdictions and $1.6 million from customer growth [24] - Operating and maintenance (O&M) expenses increased by $4.1 million, mainly due to variable labor and benefit costs, including a $4 million increase in incentive compensation [24] - Year-to-date O&M expense is up approximately 2.5%, which is below the rate of inflation, indicating a focus on cost discipline [24] Market Data and Key Metrics Changes - The company reported a significant increase in cash balance to nearly $780 million, with over $1.5 billion in liquidity across the business [9] - The S&P upgraded the issuer and senior unsecured long-term debt credit ratings to BBB+ with stable outlooks, reflecting an improved corporate risk profile [9][30] Company Strategy and Development Direction - The company has fully deconsolidated and separated from Centuri, allowing for a stronger focus on its natural gas-regulated business [4] - Future rate-making opportunities are anticipated in California, Arizona, and Nevada, with plans for new rates in California by 2026 and alternative rate-making requests in Arizona and Nevada [5][18] - The company aims to enhance transparency and align with long-term value creation as a fully regulated natural gas business [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding future regulatory environments across all jurisdictions and highlighted significant regional energy demand driving potential growth [5][10] - The company is confident in its trajectory as a leading pure-play natural gas business, focusing on robust organic rate-based growth driven by strong regional demand [32] Other Important Information - The company completed four follow-on offerings and three concurrent private placements, generating nearly $1.4 billion of net sale proceeds, which were primarily used to repay outstanding debt [7][29] - The board has initiated a search for a new CFO following Rob Stefani's departure, with internal and external candidates being considered [10][58] Q&A Session Summary Question: Update on Great Basin project timelines and capital costs - Management discussed the finalization of precedent agreements and the potential for a supplemental open season to clarify capacity needs, with updates expected in the fourth quarter [37][39] Question: Clarification on margin increase components - The margin increase was attributed to rate relief, customer growth, and recovery mechanics on interest recovery mechanisms [45] Question: Timeline for FERC filing and potential obstacles - The company remains on track for a November 2028 in-service date and plans to file with FERC in the fourth quarter of 2026 [47][74] Question: Cash position and construction timeline for Great Basin - Cash will remain in short-term investments until construction begins, with assessments ongoing regarding the project scope [60][62] Question: EPS guidance for the fourth quarter - The company expects to provide longer-term EPS guidance in the fourth quarter, incorporating potential opportunities [63]

Financial Performance & Guidance - Southwest Gas Holdings (SWX) expects 2025 Utility net income toward the top end of the $265 - $275 million guidance range[19] - The Utility is targeting 60% to 80% net income growth and 60% to 80% rate base growth from 2025-2029[19] - Q3 2025 net income was approximately $55 million, a significant improvement over Q3 2024, and year-to-date net income reached $1821 million, an 111% increase compared to the same period in 2024[26] - Capital expenditure for 2025 is projected to be around $880 million, supporting customer growth, system improvements, and pipe replacement programs[73] - The company reaffirms its forward-looking guidance for 2025-2029, with a capital expenditure plan of $43 billion[74] Strategic Initiatives & Regulatory Updates - SWX completed the full separation of Centuri (CTRI), generating approximately $135 billion of total net sales proceeds[19, 23] - The company expects no near-term equity needs through the end of 2025 and finished the quarter with approximately $779 million in consolidated cash and nearly $15 billion in available liquidity[27] - Great Basin is pursuing a potential expansion project in 2028, which could add up to approximately 176 BCF/day of incremental capacity, with a potential capital expenditure of approximately $12 billion - $16 billion[34] - The company anticipates rate case filings in the first half of 2026, requesting alternative forms of rate making in Arizona (AZ) and Nevada (NV)[26] Regulatory Outcomes - The Arizona Corporation Commission (ACC) approved an increase in rates effective in March 2025, resulting in an approximately $802 million revenue increase[108] - The Public Utilities Commission of Nevada authorized an approximately $59 million revenue increase, with rates effective in April 2024[117] - The Federal Energy Regulatory Commission (FERC) approved an increase in rates for Great Basin Gas Transmission Company (GBGTC) effective March 3, 2025, estimating an annual margin increase of approximately $96 million[120, 124]