Spire(US:SR)2026-02-03 17:02Financial 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]