Spire(US:SR)2021-08-08 00:25Financial Data and Key Metrics Changes - The company reported consolidated net economic earnings of $6.9 million or $0.06 per share, down $400,000 or $0.01 per share from the previous year [41] - Gas utilities earnings were just over $12 million, an increase of almost $4 million from the prior year, driven by higher contribution margins due to increased rates and customer growth [41] - Overall, gas marketing posted a loss of just over $5 million due to less favorable market conditions and lower wholesale demand [42] Business Line Data and Key Metrics Changes - New business totaled more than $100 million, up $30 million compared to a year ago, indicating growth in utility operations [32] - The company continued to make significant investments in utility infrastructure, with total capital expenditures of $463 million, including over $430 million for gas utility infrastructure upgrades [32] Market Data and Key Metrics Changes - The company faced challenges in gas marketing due to cooler than normal weather, which affected power generation demand and resulted in higher costs [42] - Gas costs increased due to higher commodity prices, impacting overall operational expenses [44] Company Strategy and Development Direction - The company is committed to becoming carbon-neutral by mid-century, focusing on reducing methane emissions and exploring renewable natural gas (RNG) operations [9][31] - Significant investments are being made in infrastructure to enhance operational performance and service reliability, with pipeline replacement being a major focus [32] Management's Comments on Operating Environment and Future Outlook - Management emphasized the critical importance of the STL Pipeline for reliable energy delivery, especially during extreme weather events like Winter Storm Uri [11][12] - The company is actively pursuing legal and regulatory avenues to secure the STL Pipeline's operations, highlighting the potential impact on service if the pipeline is not maintained [13][14] Other Important Information - The company is engaged in a rate review process with the Missouri Public Service Commission, seeking recovery for nearly $1 billion in capital deployed since the last rate case [34] - Recent legislation in Missouri allows for investment in renewable gas infrastructure, which the company plans to leverage for future growth [37][38] Q&A Session Summary Question: What to watch for procedurally and timing-wise regarding the STL Pipeline filings? - Management indicated that there is no specific timeline for the emergency certificate determination, but they are hopeful for expedited processing due to the upcoming winter [50][51] Question: Can you speak to the system changes since the STL Pipeline was put in service? - Management explained that various interconnections and system configurations have changed, which could lead to service disruptions without the pipeline during extreme cold [53][54] Question: Have you received any feedback from FERC regarding the STL Pipeline? - Management noted that they have not received specific feedback but emphasized that new operational data is available for consideration [64] Question: What is the status of the RNG strategy following recent legislation? - Management expressed excitement about the opportunities presented by the new legislation but stated that it is still in the early stages of implementation [66] Question: What happens if the D.C. Court denies the rehearing request? - Management confirmed that a denial would trigger a timeline for FERC to issue an emergency certificate to avoid vacating the pipeline [84] Question: Is Spire Missouri still the only shipper on the pipeline? - Management confirmed that while Spire Missouri is the primary shipper, there are short-term customers utilizing excess capacity [92]