Financial Data and Key Metrics Changes - The total shares present at the meeting were over 80 million, representing more than 50% of the company's outstanding common stock [2][3] - All nominees for election to the board of directors received a majority vote, indicating strong shareholder support [8] Business Line Data and Key Metrics Changes - The proposals for amendments to the company's articles of incorporation were approved by more than two-thirds of the outstanding shares entitled to vote, reflecting a consensus on governance changes [9] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed in the provided content Company Strategy and Development Direction - The company is focused on governance improvements, as evidenced by multiple proposals to amend articles of incorporation, including increasing the number of authorized shares and clarifying indemnification provisions [5][9] Management Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook in the provided content Other Important Information - The independent auditor for the meeting was Ernst & Young, indicating a commitment to transparency and accountability [4] - The meeting included a non-binding advisory vote on executive compensation, known as Say-on-Pay, which was approved by a majority [8] Q&A Session Summary - No shareholder questions were submitted prior to the meeting, and therefore no Q&A session occurred [1]

Financial Data and Key Metrics Changes - The company reported a net income of $403 million for the first quarter of fiscal 2026, translating to $2.44 per diluted share, which is a 9.4% increase compared to the prior year quarter [4][10] - Capital expenditures for the first quarter totaled $1 billion, with over 85% focused on enhancing safety and reliability [4][5] - The rebased fiscal 2026 earnings per share guidance is set in the range of $8.15-$8.35 per share [4][14] Business Line Data and Key Metrics Changes - The Atmos Pipeline-Texas division completed significant projects, including the installation of approximately 55 miles of pipeline and enhancements to the Bethel Salt Dome storage facility [5][6] - Rate increases across operating segments contributed an additional $68 million to operating income [10] - APT's through system revenues, net of Rider REV, increased by about $7 million, although through system volumes declined by approximately 2 Bcf due to maintenance [10][11] Market Data and Key Metrics Changes - The company added nearly 54,000 new customers over the 12 months ending December 31, 2025, with 42,000 in Texas [7] - Customer satisfaction ratings reached 98% for the quarter, and Atmos Energy was recognized for customer satisfaction in the South and Midwest regions [8][9] Company Strategy and Development Direction - The company continues to focus on system modernization and safety, aiming to be the safest provider of natural gas services [3] - The strategy includes significant capital investments, with a planned capital spending of $4.2 billion for fiscal 2026 [14] - The company is actively engaging in regulatory discussions regarding affordability and reliability, emphasizing the importance of investments for system performance [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the rebased earnings guidance and highlighted the positive impact of recent projects and customer growth [10][14] - The company noted that the recent Winter Storm Fern had minimal impact on supply and operational performance compared to previous storms [24] Other Important Information - The company has $4.6 billion in available liquidity, including $1.1 billion in net proceeds from existing forward sale agreements [13][14] - The company is pursuing additional regulatory filings for annualized operating income increases, seeking approximately $400 million [12] Q&A Session Summary Question: Discussion on the $35 million benefit for the quarter - Management indicated that the benefit will be influenced by spending timing and operational activities, maintaining guidance of $8.15-$8.35 per share [16][17] Question: Financial impacts from Winter Storm Fern - Management stated that the storm's impact was not as significant as previous storms, with minimal supply issues and effective gas supply plans in place [23][24] Question: Affordability pressures in regulatory proceedings - Management confirmed that affordability is a continuous topic with regulators, who understand the need for investment to maintain reliability [31][32] Question: Opportunities in gas power and storage - Management noted ongoing inquiries for large loads and power generation, with evaluations for potential gas storage needs post-winter [55][56] Question: Impact of recent political changes in Texas - Management emphasized an apolitical stance, focusing on collaboration with all stakeholders to promote the importance of natural gas [38][39] Question: Mississippi rate case outcomes - Management indicated that the plan remains unchanged, focusing on safety and reliability investments regardless of regulatory outcomes [40][41]

Financial Data and Key Metrics Changes - For Q1 2026, the company reported a net income of $403 million, or $2.44 per diluted share, representing a 9.4% increase compared to the prior year quarter [4][11] - Capital expenditures for the first quarter totaled $1 billion, with over 85% focused on enhancing safety and reliability [4][11] - The rebased fiscal 2026 earnings per share guidance is in the range of $8.15-$8.35 per share [4][14] Business Line Data and Key Metrics Changes - The Atmos Pipeline-Texas division completed significant projects, including the installation of approximately 55 miles of pipeline and enhancements to the Bethel Salt Dome storage facility [5][6] - APT's through system revenues, net of Rider REV, increased by about $7 million, while through system volumes declined by approximately 2 Bcf due to maintenance [11][12] Market Data and Key Metrics Changes - The Texas Workforce Commission reported that the seasonally adjusted number of employees in Texas was 14.3 million, with job growth outpacing the national rate [8] - The company added nearly 54,000 new customers over the 12 months ending December 31, 2025, with over 1,100 commercial customers added in the first quarter [7][8] Company Strategy and Development Direction - The company continues to focus on system modernization and safety, aiming to be the safest provider of natural gas services [3][4] - The strategy includes significant capital investments, with a planned capital spending of $4.2 billion for the fiscal year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the rebased earnings per share guidance and highlighted the positive impact of Texas House Bill 4384 on financial performance [11][14] - The company noted that the recent Winter Storm Fern had minimal supply issues, indicating strong operational resilience [23][24] Other Important Information - The company has implemented $123 million in annualized operating income increases in its distribution segment since the beginning of the fiscal year [13] - Customer satisfaction ratings reached 98% for the quarter, with recognition from J.D. Power and Escalent for exceptional customer service [9][10] Q&A Session Summary Question: Discussion on the $35 million benefit for the quarter - Management indicated that the $35 million benefit is influenced by spending timing and operational activities, maintaining guidance of $8.15-$8.35 for earnings per share [16][17] Question: Financial impacts from Winter Storm Fern - Management stated that the storm's impact was not as significant as previous storms, with minimal supply issues and effective gas supply plans in place [20][23] Question: Affordability pressures in regulatory proceedings - Management confirmed that affordability is a continuous topic with regulators, who understand the need for investment to maintain reliability and safety [31][32] Question: Impact of recent political changes in Texas - Management emphasized an apolitical stance, focusing on collaboration with all stakeholders to promote the importance of natural gas for communities [38][39] Question: Updates on the Mississippi rate case - Management noted that the outcome of the Mississippi rate case does not adjust the overall plan, as safety and reliability remain the primary focus [40][41]

Core Viewpoint - Southern California Gas Co. (SoCalGas) and other gas utilities have petitioned the California Public Utilities Commission (CPUC) to modify a previous decision requiring a demonstration project for blending hydrogen into natural gas, citing advancements in safety and operational data since 2022 [1][2][3]. Group 1: Petition Details - The petition seeks to remove the requirement for a 5% hydrogen demonstration project before recommending a systemwide blending standard, while still adhering to the CPUC's mandate for projects studying blends in the 5%-20% range [2]. - The utilities argue that the safety case for low-level hydrogen blends has improved, allowing for a more efficient approach to decarbonization [2][4]. Group 2: Research and Demonstration Projects - New research and real-world experiences indicate that blending up to 5% hydrogen into natural gas systems can be done safely and reliably without modifying customer appliances [3][5]. - States like Utah and companies like Hawai'i Gas have successfully implemented hydrogen blending, demonstrating its safety and effectiveness over decades [5][6]. Group 3: Industry Perspectives - Industry leaders emphasize that hydrogen blending is a practical step towards decarbonizing the natural gas system, leveraging existing infrastructure to reduce emissions while planning for a cleaner energy future [4][6]. - The blending of hydrogen is seen as essential for achieving sustainability and cost goals in California's energy transition [4][6]. Group 4: SoCalGas Initiatives - SoCalGas has been at the forefront of hydrogen blending initiatives, having completed the first power-to-gas hydrogen blending project in the U.S. in 2016 and several other demonstration projects since then [7]. - The company has proposed two hydrogen blending demonstration projects, one of which aims to blend up to 5% hydrogen, which may be affected by the outcome of the current petition [4][7].

Core Insights - Atmos Energy reported revenue of $1.34 billion for the quarter ended December 2025, marking a 14.2% increase year-over-year, but fell short of the Zacks Consensus Estimate of $1.44 billion by -6.45% [1] - The company's EPS for the quarter was $2.44, an increase from $2.23 in the same quarter last year, exceeding the consensus EPS estimate of $2.41 by +1.46% [1] Revenue Performance - Pipeline and Storage segment generated operating revenues of $286.63 million, surpassing the average estimate of $283.06 million by analysts, reflecting a year-over-year increase of +12.2% [4] - Distribution segment reported operating revenues of $1.26 billion, exceeding the average estimate of $1.17 billion, with a year-over-year growth of +13.5% [4] Operating Income - Operating income for the Pipeline and Storage segment was $165.5 million, slightly below the average estimate of $167.62 million from analysts [4] - Operating income for the Distribution segment was $349.2 million, which also fell short of the average estimate of $354.4 million [4] Stock Performance - Atmos Energy's shares have returned -0.2% over the past month, in contrast to the Zacks S&P 500 composite's +1.8% 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 - Atmos Energy reported a 14.5% increase in first-quarter profit, driven by strong demand for its gas distribution and pipeline facilities [1] Company Performance - The profit rise indicates robust operational performance within the natural gas utility sector, highlighting the effectiveness of Atmos Energy's distribution and pipeline services [1]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.77 per share for Q1 2026, an increase from $1.34 per share a year ago, reflecting strong execution in the gas utility business and contributions from marketing and midstream segments [4][10] - Adjusted earnings for the quarter totaled $108 million, compared to $81 million in the previous year, indicating a year-over-year growth of approximately 33% in gas utilities earnings [10][11] - The company reaffirmed its 2026 adjusted EPS guidance of $5.25 to $5.45 per share and 2027 guidance of $5.65 to $5.85 per share, with a long-term adjusted EPS growth target of 5% to 7% [6][12] Business Line Data and Key Metrics Changes - Gas utilities earned $104 million, up over 33% from the previous year, driven by new rates in Missouri and higher margins in Alabama [10] - Gas marketing segment earnings increased to $4.5 million, up $2.3 million due to enhanced portfolio optimization opportunities [11] - Midstream earnings rose to $12.7 million, an increase of nearly $1 million from last year, attributed to additional capacity at Spire Storage [11] Market Data and Key Metrics Changes - The company experienced record natural gas demand during Winter Storm Fern, delivering natural gas equivalent to 31 gigawatts of electric generation capacity [3] - The new Missouri rates became effective in October, and a request for a $30.3 million revenue increase was filed in November, expected to be effective by May [5] Company Strategy and Development Direction - The company is focused on executing its ten-year capital plan of $11.2 billion, primarily targeting utility investments, and maintaining a disciplined approach to capital deployment [6][9] - The company is committed to customer affordability through cost management and is pursuing constructive regulatory outcomes across all jurisdictions [4][15] - The integration planning for the Tennessee acquisition is underway, with an 18-month transition services agreement to ensure continuity for customers and employees [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the ability to achieve long-term growth targets despite the challenges posed by extreme weather conditions [4][6] - The company is focused on simplifying its portfolio and expects to provide updates on the potential sale of natural gas storage assets later this quarter [8][25] - Management highlighted the importance of maintaining a strong balance sheet and flexibility, targeting a funds from operations (FFO) to debt ratio of 15%-16% [14] Other Important Information - The merger of the STL and MoGas pipelines was completed on January 1, 2026, and will operate as the Spire MoGas pipeline [13] - The company invested $230 million in capital expenditures during the quarter, primarily directed toward gas utility operations [8][9] Q&A Session Summary Question: How did the marketing segment perform during January's gas market volatility? - Management indicated that the marketing segment performed well and met all customer obligations during the volatility, with a positive outlook for further discussions in the next quarter [17][18] Question: Can you provide an update on the storage asset sales process? - Management confirmed strong interest in the storage assets and is focused on achieving the right value, with an announcement expected later this quarter [24][25] Question: What are the expectations for equity issuance related to the Tennessee acquisition? - Management indicated that announcements regarding equity issuance would likely occur after the next call in May or June, depending on the progress of the acquisition [31] Question: What is the regulatory strategy and timeline for the next rate case in Missouri? - Management anticipates filing the next rate case after the fiscal year-end but before Thanksgiving, with preparations already underway [55]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.77 per share for Q1 2026, an increase from $1.34 per share a year ago, reflecting strong execution in the gas utility business and contributions from marketing and midstream segments [4][10] - Adjusted earnings for the quarter totaled $108 million, compared to $81 million in the previous year, marking a year-over-year increase of approximately 33% in gas utilities earnings [10][11] - The company reaffirmed its 2026 adjusted EPS guidance of $5.25-$5.45 per share and 2027 guidance of $5.65-$5.85 per share, indicating confidence in long-term growth [6][12] Business Line Data and Key Metrics Changes - Gas utilities earned $104 million, up over 33% from the previous year, driven by new rates in Missouri and higher margins in Alabama [10][11] - Gas marketing segment earnings increased to $4.5 million, up $2.3 million due to enhanced portfolio optimization opportunities [10] - Midstream earnings rose to $12.7 million, an increase of nearly $1 million from last year, attributed to additional capacity at Spire Storage [11] Market Data and Key Metrics Changes - The company experienced record natural gas demand during Winter Storm Fern, delivering natural gas equivalent to 31 gigawatts of electric generation capacity [3] - The company’s capital expenditures for the quarter were $230 million, primarily directed towards gas utility operations, with expectations of $809 million in total CapEx for 2026 [8][9] Company Strategy and Development Direction - The company is focused on executing its ten-year capital plan of $11.2 billion, with a majority aimed at utility investments [7] - The company is committed to maintaining customer affordability through disciplined cost management and achieving constructive regulatory outcomes [4][15] - The ongoing evaluation of potential sales of natural gas storage assets aims to simplify the portfolio while ensuring the right value is achieved [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the disciplined approach to capital deployment, reaffirming long-term adjusted EPS growth targets of 5%-7% [6][12] - The integration planning for the Tennessee acquisition is underway, with a focus on ensuring seamless continuity for customers and employees [8][40] - Management highlighted the importance of maintaining a strong balance sheet and flexibility, targeting a funds from operations to debt ratio of 15%-16% [14] Other Important Information - The company completed the merger of the STL and MoGas pipelines, which will now operate as the Spire MoGas pipeline [13] - The company anticipates minimal common equity needs and plans to rely on long-term debt for refinancing and capital requirements [14] Q&A Session Summary Question: How did the marketing segment perform during January's gas market volatility? - Management indicated satisfaction with the operational performance and confirmed that customer obligations were met during the volatility [17][18] Question: Can you provide an update on the storage asset sales process? - Management noted that the evaluation process is taking longer than expected but remains optimistic about achieving good value for the assets [24][25] Question: What are the opportunities for large loads or generation facilities in service territories? - Management is actively engaging with parties regarding opportunities to serve generation needs as they convert from coal to gas [27] Question: What is the timeline for equity issuance related to the Tennessee acquisition? - Management indicated that announcements regarding equity issuance would likely occur after the next earnings call in May or June [31] Question: What is the regulatory strategy and timeline for the next rate case in Missouri? - Management anticipates filing the next rate case in October-November 2026, following the pattern of previous cases [55]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.77 per share for Q1 fiscal 2026, an increase from $1.34 per share a year ago, reflecting strong execution in the gas utility business and contributions from marketing and midstream segments [4][10] - Adjusted earnings for the quarter totaled $108 million, compared to $81 million in the previous year, with gas utilities earning $104 million, up over 33% [10][11] - The company reaffirmed its 2026 adjusted EPS guidance of $5.25-$5.45 per share and 2027 guidance of $5.65-$5.85 per share, indicating confidence in its financial performance [5][12] Business Line Data and Key Metrics Changes - Gas utilities segment earnings increased by $26 million year-over-year, driven by new rates in Missouri and higher margins in Alabama, despite lower volumetric margins and increased O&M depreciation and interest expenses [10][11] - Gas marketing segment earnings rose to $4.5 million, an increase of $2.3 million due to enhanced portfolio optimization opportunities [10] - Midstream segment earnings reached $12.7 million, up nearly $1 million from the previous year, attributed to additional capacity at Spire Storage [11] Market Data and Key Metrics Changes - The company experienced significant demand for natural gas during Winter Storm Fern, delivering natural gas equivalent to 31 gigawatts of electric generation capacity [3] - The company’s capital expenditures for the quarter were $230 million, primarily directed towards gas utility operations, with expectations of $809 million in CapEx for 2026 [8][9] Company Strategy and Development Direction - The company is focused on executing its ten-year capital plan of $11.2 billion, primarily targeting utility investments, while maintaining a disciplined approach to capital deployment [6][9] - The company aims to achieve constructive regulatory outcomes and is preparing for a future test year Missouri rate case [16] - The ongoing evaluation of the potential sale of natural gas storage assets reflects the company's strategy to simplify its portfolio [8][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the disciplined approach to capital deployment, reaffirming long-term adjusted EPS growth targets of 5%-7% [5][12] - The integration planning for the Tennessee acquisition is underway, with a focus on ensuring seamless continuity for customers and employees [8][39] - Management highlighted the importance of customer affordability and cost management as central to the company's strategy [4][16] Other Important Information - The company issued $900 million of junior subordinated notes and entered into a master note purchase agreement for $825 million of senior notes to fund the Tennessee acquisition [7][15] - The merger of the STL and MoGas pipelines was completed on January 1, 2026, which will operate as the Spire MoGas pipeline [13] Q&A Session Summary Question: How did the marketing segment perform during the gas market volatility in January? - Management indicated satisfaction with the operational performance and confirmed that customer obligations were met during the volatility [18][19] Question: Can you provide an update on the storage asset sales process? - Management noted that the evaluation process is taking longer than expected but remains optimistic about achieving the right value for the assets [24][25][46] Question: What are the expectations for equity issuance related to the Tennessee acquisition? - Management stated that an announcement regarding the storage evaluation is expected later this quarter, and they are covered with a bridge loan if needed [32][26] Question: What is the regulatory strategy and timeline for Missouri? - Management anticipates filing the next rate case after the fiscal year-end, likely in the October-November timeframe [56]

Core Insights - Spire Inc. reported first-quarter fiscal 2026 adjusted earnings of $1.77 per share, exceeding the Zacks Consensus Estimate of $1.62 by 9.3% and reflecting a 32.1% increase from $1.34 in the same quarter last year [1][8] Revenue Performance - Total revenues for the quarter reached $762.2 million, surpassing the Zacks Consensus Estimate of $712 million by 7.1% and showing a 13.9% increase from $669.1 million in the prior-year quarter [2][8] Earnings Highlights - Operating expenses were $588.7 million, up 13.1% from $520.3 million in the previous year [3] - Operating income was reported at $173.5 million, compared to $148.8 million in the prior-year quarter [3] - Net interest expenses rose 25.8% year over year to $60.4 million [3] Segment Performance - Gas Utility segment reported adjusted earnings of $103.9 million, a 33.7% increase from the prior-year quarter, driven by stronger results in Spire Missouri and Spire Alabama [4][8] - Gas Marketing segment saw adjusted earnings of $4.5 million, a significant growth of 104.5% year over year due to better portfolio optimization [4] - Midstream segment adjusted earnings totaled $12.7 million, up 5.8% from the previous year, attributed to higher Spire Storage revenues [5] - Other segment reported an adjusted loss of $12.7 million, compared to a loss of $10.9 million in the prior-year quarter [5] Financial Position - Cash and cash equivalents as of December 31, 2025, were $4.1 million, down from $5.7 million as of September 30, 2025 [6] - Long-term debt as of December 31, 2025, totaled $4.45 billion, an increase from $3.37 billion as of September 30, 2025 [6][8] - Net cash from operating activities for the first three months of fiscal 2026 was $81 million, slightly down from $81.1 million in the same period last year [6] Guidance - Spire expects fiscal 2026 adjusted earnings to be in the range of $5.25-$5.45 per share, with the Zacks Consensus Estimate at $5.30 [9] - For fiscal 2027, adjusted earnings are expected to be in the range of $5.65-$5.85 per share, with the Zacks Consensus Estimate at $5.71 [9] - The company plans a 10-year capital investment of $11.2 billion through fiscal 2035, aiming for long-term adjusted earnings per share growth of 5-7% [10]