Spire (SR) Investor presentation summary

Business overview and strategy

• Operates regulated natural gas utilities serving 1.7 million customers in Alabama, Missouri, and Mississippi, with over 63,000 miles of pipeline and a focus on infrastructure investment and organic growth.

• Gas marketing services span North America, optimizing commodity, transportation, and storage portfolios for value creation.

• Midstream segment includes highly contracted pipelines and storage facilities in Wyoming and Oklahoma, supporting utility gas supply.

• Maintains a 90%+ regulated business mix and targets 5-7% long-term EPS growth, supported by a robust $11.2B 10-year capex plan.

• Dividend has grown for 23 consecutive years, with a targeted payout ratio of 55-65%.

Major acquisition and impact

• Announced acquisition of Piedmont Natural Gas Tennessee business for $2.48B, increasing scale and diversifying the regulated utility footprint.

• Acquisition adds 205,000 customers and $1.6B in rate base, raising the total customer base to 1.95 million and rate base to $8.2B.

• Five-year capex plan increases from $3.9B to $4.8B, with combined investment opportunities supporting long-term EPS growth and dividends.

• Financing includes a mix of debt, equity, and hybrid securities, with minimal common equity expected; regulatory approvals have been received.

• Acquisition expected to close in Q1 2026, with ongoing evaluation of storage asset sales.

Financial performance and outlook

• Q1 FY26 adjusted earnings rose by $27.3M year-over-year, driven by new Missouri rates, ISRS revenues, and Alabama RSE, partially offset by higher O&M, depreciation, and interest expenses.

• Affirmed FY27 adjusted EPS guidance of $5.65 to $5.85, with long-term EPS growth target of 5-7% based on robust rate base and regulated equity growth.

• 10-year capex forecast of $11.2B, with 70% allocated to safety and reliability, and 96% of investments expected to be recovered via ratemaking mechanisms.

• Maintains FFO/debt target of 15-16% and stable credit ratings, with recent debt issuances and refinancing to support capital plans.

• Dividend increased 5.1% to $3.30 per share in 2026, marking 23 consecutive years of growth.