Energy in motion Investor presentation December 2018 2 2 Spire | - - PowerPoint PPT Presentation

Energy in motion

Investor presentation December 2018

Spire | Investor Presentation | December 2018 2 Spire | Investor presentation | December 2018 2

Forward-looking statements and use of non-GAAP measures

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward- looking statements in this presentation speak only as of today, and we assume no duty to update them. Forward-looking statements are typically identified by words such as, but not limited to: “estimates,” “expects,” “anticipates,” “intends,” and similar expressions. Although our forward-looking statements are based on reasonable assumptions, various uncertainties and risk factors may cause future performance or results to be different than those anticipated. For a more complete description of these uncertainties and risk factors, see our Form 10-K for the fiscal year ended September 30, 2018 filed with the Securities and Exchange Commission (SEC). This presentation also includes “net economic earnings,” “net economic earnings per share,” “contribution margin,” “adjusted EBITDA,” and “adjusted long-term capitalization,” non-GAAP measures used internally by management when evaluating the Company’s performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair-value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture, and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain long-standing assets related to pension costs and property sold as a result of disallowances in our Missouri rate proceedings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations by facilitating comparisons of year-over-year results. Contribution margin is defined as operating revenues less natural and propane gas costs and gross receipts tax expense, which are directly passed on to customers and collected through revenues. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income or net income. Adjusted EBITDA is earnings before interest, income taxes, depreciation and amortization, plus largely non-cash write-offs related to Missouri rate cases. Reconciliations of net income to net economic earnings and of contribution margin to

• perating income are contained in our SEC filings and in the Appendix to this presentation. Reconciliations of adjusted EBITDA to net income and of

capitalization per balance sheet to adjusted long-term capitalization are also contained in the Appendix. Note: Years shown in this presentation are fiscal years ended September 30, unless otherwise indicated.

Investor Relations contact

Scott W. Dudley Jr. Managing Director, Investor Relations 314-342-0878 Scott.Dudley@SpireEnergy.com

Spire | Investor presentation | December 2018 3

Putting our energy in motion

Our mission

Answer every challenge, advance every community and enrich every life through the strength of our energy.

Transforming our company

1. Growing organically 2. Investing in infrastructure 3. Acquiring and integrating 4. Innovation and technology

4 Spire | Investor presentation | December 2018 4

• We’ve transformed our company

by increasing our geographic footprint

• Our gas companies now serve 1.7 million

homes and businesses across Alabama, Mississippi and Missouri

• We are advancing our gas-related businesses

– Spire Marketing – Spire Storage – Spire STL Pipeline

We’re expanding to serve more customers and markets

Spire | Investor presentation | December 2018 5

Moving forward confidently

• Gaining regulatory certainty through recent resets in Missouri and Alabama
• Executing on our organic growth and capital investment plans
• Advancing our gas-related businesses
• Strengthening our financial position
• Delivering solid FY18 net economic earnings per share (NEEPS) of $3.72
• Setting growth expectations for FY19 and beyond

– FY19 NEEPS guidance of $3.70-$3.80 – Long-term annual NEEPS growth target of 4%-7% based on FY18 run-rate earnings

Spire | Investor presentation | December 2018 6

Gaining regulatory certainty

• Missouri rate cases completed in March 2018

– Increased return (ROE) and higher equity capitalization – Secured weather normalization that mitigates margin exposure

• Received approval for $8 million ISRS increase in Missouri
• Alabama rate-setting parameters (RSE) updated

– ROEs and CCM reset – Capital structures harmonized – Gained infrastructure upgrade incentive for Spire Alabama

Current Prior Current Prior Return on Equity (ROE) Range 10.15% - 10.65% 10.50% - 10.95% 10.45% - 10.95% 10.45% - 10.95% Adjusting point 10.40% 10.80% 10.70% 10.80% Equity capitalization 55.50% 56.50% 55.50% 56.00% Infrastructure incentive AIM: +/-10 bps ROE CIMFR: 75% eq ratio > baseline thru 2019 Cost Control Measurement (CCM) Metric O&M / customer Total O&M O&M / customer Total O&M Base year 2018 2007 2017 2014 +/- band 1.50% 1.75% 1.50% 1.75% Spire Alabama Spire Gulf

Spire | Investor presentation | December 2018 7

Spire | Investor presentation | December 2018 8

Growing organically

• Targeting programs to increase

utility customers and margins

• Increased homes and businesses

we served in FY18

– New business capex to $85M (+44%) – Installed record 11,000+ new meters – Contracted 4,600 multi-family units

• Achieved higher Gas Utility margin
• Focused on managing costs across
• ur utilities, post the regulatory

resets

Contribution margin – Gas Utility

$844 $939 $948

600 700 800 900 1,000 2016 2017 2018 (Millions)

O&M expenses per customer1

$270 $252 $244 $241 $255 $250

$230 $240 $250 $260 $270 2014 2015 2016 2017 2018

1Operation and maintenance (O&M) expenses and customers for Spire Missouri, Spire

Alabama and Spire Gulf for all years. 2018 (in orange) excludes pension and other amortization ($8M) associated with rate proceedings in MO and AL.

33% 27% 30% 10%

Missouri East Missouri West Alabama/Mississippi Pipelines and storage 393 400 405 410 420 63 75 65 70 70 43 175 15 15 15

2018 2019 2020 2021 2022

Utility, with minimal lag and new business

Investing for long-term growth

• 5-year capital investment forecast

increased to $2.6B

• Driven by higher utility spend

– Supported by infrastructure upgrade programs with lives up to 20 years – More than 85% of utility spend recovered with minimal regulatory lag or reflected in earnings

• Also reflects development of

Spire STL Pipeline and Spire Storage

Capital expenditures forecast

5-year forecast: $2.6B

Pipelines and storage Other utility

$499 $650 $485 $495 $505

(Millions)

Balanced 5-year spending Rate base1 growth

$2.6 $2.8

2017 2018 2019 2020 2021 2022

1Rate base for Missouri utilities per order authorized 2/21/18 for cases C-GR-2017-0215 and

C-GR-2017-0216, plus retained shareholders’ equity for Spire Alabama and Spire Gulf per RSE filings on 10/26/18, and Spire Mississippi rate base per stipulation 4/10/18, all with estimated growth subject to prudence review.

Spire | Investor presentation | December 2018 9

Building Spire STL Pipeline

• Received FERC Notice to Proceed on November 5
• Completed project construction schedule
• Targeting in-service date in second half of calendar 2019
• Ready to mobilize for construction once land acquisition is completed
• Total project investment targeted at $210 - $225 million

Spire | Investor presentation | December 2018 10

Spire | Investor presentation | December 2018 11

Growing Spire Marketing

Spire Marketing’s operational reach

• Solid business model supported by

strong risk management protocols

– Provides gas marketing and related services to diverse customer base – Physically delivers gas on 20+ pipelines – Optimizes portfolio of commodity, transportation and storage contracts

• Strong FY18 results driven by

– Improved market conditions – Wider regional basis differentials – Greater storage and transport optimization

• Positioning Spire Marketing for

continued growth and success

– Industry veterans leading the business and growing the team – Expanding geographically with Houston business center

Spire | Investor presentation | December 2018 12

Investing in storage

• Building Spire Storage

– Integrating two adjacent natural gas storage facilities we acquired – Upgrading operational capabilities and expanding service offerings

• Marketing to a broad range of

customers:

– Utilities – Power generators – Pipelines – Producers – Marketers

• $56M total investment through FY18
• Expect small earnings contribution

in FY19

$482 $493

$400 $500 FY17 FY18

Strengthening our financial position

• FY18 adjusted EBITDA1 of $493M
• Stronger long-term capitalization

– Equity improved 350bp from last year – Near-term equity needs covered by May 2018 offering

• Ample liquidity from $975M facility

– Extended through 2023 – Helps meet seasonal liquidity needs – Capacity will increase with planned utility debt issuances

• Spire Missouri received $500M in

new financing authority through 2021

1Adjusted EBITDA is Earnings before interest, income taxes, depreciation and

amortization, plus largely non-cash write-offs related to Missouri rate cases.

2See Adjusted long-term capitalization reconciliation in Appendix.

FY18 adjusted EBITDA1

(Millions)

52.2% 47.8%

Equity Debt

Long-term capitalization2

(at September 30, 2018)

Spire | Investor presentation | December 2018 13

Driving long-term earnings growth

• Long-term NEEPS growth target of 4% - 7%

– Reflects ~6% annual utility rate base growth and regulatory certainty – Growing contribution from all businesses

• Base is run-rate FY18 NEEPS, which removes 17¢ of Spire Marketing

earnings driven by market conditions that are not expected to recur

• Earnings mix will remain predominately regulated

Net economic earnings per share (NEEPS)

Spire | Investor presentation | December 2018 14

2019 NEEPS guidance

• Initiating 2019 NEEPS guidance of $3.70 - $3.80

– Gas Utility growth driven by organic initiatives and infrastructure upgrades more than

• ffsetting full-year impact of rate resets in Missouri (~3¢) and Alabama (~11¢)

– Increasing contributions from gas-related businesses as we develop Spire STL Pipeline and grow Spire Marketing and Spire Storage – Other cost reductions (interest and other corporate costs) largely offset full-year impact

• f May 2018 equity offering

Spire | Investor presentation | December 2018 15

Annualized dividends per share

Raising our dividend by 5.3%

1Quarterly dividend of $0.5925 per share effective January 3, 2019, annualized. 2Based on $2.37 per share dividend and SR average closing stock price of $74.92 for calendar 4th quarter 2018 through Nov. 27.

Dividend Yield 3.2%2

• Annualized dividend increased to $2.37 per share
• 5.3% increase supported by our

– Long-term earnings growth targets – Conservative payout ratio and target range of 55% - 65%

• 16 consecutive years of increases; 74 years of continuous payment

$1.66 $1.70 $1.76 $1.84 $1.96 $2.10 $2.25 $2.37

50% 55% 60% 65% 70% $1.50 $1.70 $1.90 $2.10 $2.30 $2.50 2012 2013 2014 2015 2016 2017 2018 2019

Dividend payout ratio Dividends per share

Spire | Investor presentation | December 2018 16

1

Spire | Investor presentation | December 2018 17

At Spire, we’re always in motion, using our energy to get the job done today while exploring new and innovative ideas for tomorrow.

Appendix

Spire | Investor presentation | December 2018

18

Spire leadership team

• F. Scott B. Carter

Senior Vice President, Commercial Operations

• E. Michael C. Geiselhart

Senior Vice President, Strategic Planning and Corporate Development

• D. Mark C. Darrell

Senior Vice President, General Counsel and Chief Compliance Officer

• B. Steven P. Rasche

Executive Vice President, Chief Financial Officer

• A. Suzanne Sitherwood

President and Chief Executive Officer

• C. Steven L. Lindsey

Executive Vice President, Chief Operating Officer of Distribution Operations A B C D E F

Spire | Investor presentation | December 2018 19

Our Spire utility portfolio

Alabama Gulf Mississippi MO East MO West Founded 1852 1836 1933 1857 1867 Primary office Birmingham Mobile Hattiesburg

• St. Louis

Kansas City Employees 861 1561 1,721 600 Customers 420,600 83,900 18,500 653,600 516,300 Pipeline miles ~23,000 ~4,300 ~1,200 ~16,000 ~14,000 Rate base (In Millions) $5092 $922 $233 $2,2004 ROE 10.40%5 10.70% 9.34% 9.80%4 9.80%4 Equity capitalization 55.5%5 55.5% 50.0% 54.2% 54.2%

1Employees for Gulf and Mississippi utilities combined. 2The Rate Stabilization and Equalization (RSE) mechanism uses avg common equity for year ended 9/30/18 for Alabama and Gulf utilities, rather than rate base, for ratemaking purposes. 3Mississippi net assets less def. taxes for Rate Stabilization Adjustment (RSA) purposes as of 6/30/17. 4Estimated FY18 year-end rate base at Spire Missouri reflecting growth since amended MoPSC order dated March 7, 2018, establishing rate base in MO East of $1,221M and MO West of

$807M. Growth in rate base subject to prudence review.

5Terms of renewed Rate Stabilization and Equalization (RSE), effective 10/1/18 through 9/30/22.

Spire | Investor presentation | December 2018 20

Pipeline replacement program

Robust infrastructure replacement programs with lives up to ~20 years Estimated replacement miles

As of 12/31/17

Steel1 Cast iron Vintage plastic Total

• Est. years to

completion Missouri 1,750 800

• 2,550

16-18 Alabama 550 650 250 1,450 18-20 Total 2,300 1,450 250 4,000

% of total

58% 36% 6% 100%

1Includes hard copper services inside bare steel, and threaded and coupled steel in Missouri.

Spire | Investor presentation | December 2018 21

Missouri regulatory summary

• Average-rated regulatory jurisdiction by RRA1
• Traditional approach: general rate case typically filed every three years

– Cost-of-service, rate base and capital structure determined using historical test year – Both utilities have weather mitigated rate designs and mechanisms to address purchased gas costs, pensions and energy efficiency investments

• Infrastructure System Replacement Surcharge (ISRS)

– Enables recovery of (and on) infrastructure investment with minimal regulatory lag – In effect since 2003

• Missouri Public Service Commission – five members appointed by Governor

(also appoints the Chairman)

– William P. Kenney (R) – Jan. 2019 – Maida Coleman (D) – Aug. 2021 – Daniel Y. Hall (D) – Sept. 2019 – Ryan Silvey (R), Chairman – Jan. 2024 – Scott T. Rupp (R) – Apr. 2020

Spire | Investor presentation | December 2018 22

1RRA is Regulatory Research Associates.

Missouri regulatory and legislative update

• State regulatory framework improved

in 2018 with passage of electric and water utility legislation

• As a result of our recently completed

rate cases, we now have

– Regulatory certainty in key areas, including ROE and capital structure – Full residential weather normalization

• $8M increase in annual ISRS

revenues, effective on Oct. 8th

• We are assessing our regulatory and

legislative strategy going forward

• We still strongly believe in the

benefits of more progressive and timely rate review

Spire | Investor presentation | December 2018 23

Alabama regulatory summary

• Top-rated regulatory jurisdiction by RRA
• Progressive approach using forward year budget
• Rate Stabilization and Equalization (RSE)

– Annual rate-setting process with quarterly reviews for potential rate reductions – Rates set based on retained shareholders’ equity

• Spire Alabama: 10.40% allowed ROE and 55.5% equity ratio
• Spire Gulf: 10.7% allowed ROE and 55.5% equity ratio

– Includes current recovery on planned capital spend

• Cost Control Measurement (CCM)

– Incentive to manage O&M costs relative to target benchmark – Sharing with customers outside of band

• Good recovery mechanisms

– Gas costs, weather normalization and certain other non-recurring costs – Opportunity for enhanced return for pipeline replacement (Spire Alabama’s AIM) and certain infrastructure investments (Spire Gulf’s CIMFR)

• Alabama Public Service Commission – commissioners elected to 4-year term

– Twinkle Andress Cavanaugh, President (R) – 2020 – Chris “Chip” Beeker (R) – 2022 – Jeremy H. Oden (R) – 2022 Spire Alabama

Spire | Investor presentation | December 2018 24

Mississippi regulatory summary

• Average-rated regulatory jurisdiction by RRA
• Rate Stabilization Adjustment (RSA)

– RSA provides for annual rate performance reviews rather than periodic rate cases

• Formulaic approach to ROE setting with equity capitalization currently set at 50%
• Rate adjustment when ROE is outside a 1% band of allowed ROE (currently 9.34%)

‒ 50% of the amount over the allowed return going to a rate reduction, or ‒ 75% of the deficiency toward a rate increase

– Received approval for a new fixed rate structure to be effective with new RSA – Weather normalization mechanism recently approved; effective 2018-19 heating season

• Supplemental Growth (SG) Rider

– 3-year pilot put into place December 2015 for up to $5 million in investment – Qualified industrial development projects earn a 10-year supplemental return at 12.0% ROE

• Mississippi Public Service Commission – commissioners elected to 4-year term

– Brandon Presley, Chairman (D) – 2020 (Northern District) – Cecil Brown, Vice Chair (D) – 2020 (Central District) – Sam Britton (R) – 2020 (Southern District)

Spire | Investor presentation | December 2018 25

1See Net economic earnings (non-GAAP) reconciliation later in Appendix. 2See Adjusted EBITDA (non-GAAP) reconciliation later in Appendix. 3See Adjusted long-term capitalization reconciliation later in Appendix.

We delivered solid FY18 performance

Spire | Investor presentation | December 2018 (Millions, except earnings per share)

Earnings by Segment Gas Utility

$ 183.1 181.5

Gas Marketing

22.9 6.8

Other

(22.3) (20.7)

Net Economic Earnings (non-GAAP)1

$ 183.7 $ 167.6

Net Economic Earnings Per Share (non-GAAP)1

$ 3.72 $ 3.56

Other Key Metrics Adjusted EBITDA2

$ 492.9 $ 482.4

Capital Expenditures

499.4 438.1

Long-Term Debt (incl. current portion)

2,076 2,095

Total Debt

2,629 2,572

% Equity to Adjusted LT Capitalization3

52.2% 48.7%

Average Shares Outstanding - Diluted

49.3 47.0

Twelve months ended September 30,

2018 2017

26

1See Net economic earnings (non-GAAP) reconciliation later in Appendix. 2See Contribution margin (non-GAAP) reconciliation later in Appendix.

FY18 earnings growth

• Net economic earnings1 (NEE) $183.7M, up $16.1M or 10%
• NEE per share $3.72 (+$0.16 or 4.5%), reflecting 4.9% share increase
• Gas Utility: NEE $183.1M

– Contribution margin2 +$8.5M

• Higher demand due to the return of normal weather
• Higher MO ISRS and modest customer growth
• Offset in part by seasonal rate design change at MO utilities and lower utility rates due to

tax reform

– O&M expense (net of write-offs) up $14.0M due to weather-driven increases in

employee-related costs and bad debt expense, and higher amortization of MO benefit costs

• Gas Marketing: NEE up $16.1M on improved market conditions

Spire | Investor presentation | December 2018 27

Spire | Investor presentation | December 2018 28

Missouri rate cases

• New rates went into effect on April 19

– Reflect ~$70 million in cost savings from our transformative growth – Authorized 9.8% ROE, utility LT capital structure and $2.0B rate base – Aligns MO rate design: higher volumetric component and full residential weather normalization

• We have filed legal appeals on pensions, rate case expenses and gain on sale

disallowances (written off in Q2)

Impact (Millions) Customer rates Earnings Base rate increase $66.2 $66.2 Rate reduction for tax benefits (33.0) Current ISRS reset to zero (49.0) (49.0)

• Amort. of reg. assets and other

(23.1) Total ($15.8) ($5.9)

Write-offs from the Missouri rate cases

(Millions, except per share amounts)

Gross Net of tax Per share

Disputed pension contributions (prior to 1997) $ (28.8) $ (17.7) NBV of property sold in 2014 (1.8) (1.1) GAAP write-offs added back to NEE $ (30.6) $ (18.8) $ (0.39) Earnings or equity-based incentives (Jan 2016 on) $ (6.9) $ (4.2) Portion of rate case expenses (0.9) (0.6) GAAP write-offs reflected in NEE $ (7.8) $ (4.8) $ (0.10) Total impact $ (38.4) $ (23.6)

Tax Cuts and Jobs Act

• We lowered customer rates for all utilities as a result of tax reform
• 1H financial results include impacts based on the available guidance, including

– Lowering our effective tax expense by $14.4 million, reflecting lower federal income taxes, net of amounts reflected in lower customer rates – GAAP results include revaluation of deferred taxes totaling $54 million (excluded from NEE)

• 2018 impact

– Cash flow will be reduced by ~$40 million annually due to lower customer rates – Interest deductibility will likely be retained due to our largely regulated mix and growing non-regulated EBITDA

Spire | Investor presentation | December 2018 29

Impact of tax reform

(Millions, except per share amounts)

Net impact Per share Non-cash benefit from the revaluation of net deferred tax liabilities GAAP benefit excluded from NEE $ 54.0 $ 1.10 Lower income tax expense, net amounts reflected in customer rates Included in both GAAP and NEE $ 14.4 $ 0.30

Income tax expense

• Income taxes includes the non-cash benefit from revaluing net deferred tax

liabilities for the Tax Cuts and Jobs Act using current Treasury guidance

• Net of those benefits, the effective tax rate for 2018 was 18.6%

– Lower than prior year due to tax reform – Includes the benefit of amortizing excess ADIT returned to Missouri customers

• 2019 effective tax rate anticipated to be 17% - 18%, reflecting a full 12-month

amortization of excess ADIT amortization

1Excess Accumulated Deferred Income Taxes (ADIT).

(Millions)

2018 2017 2018 2017 GAAP expense (benefit) before ADIT amortization1 (23.0) $ 77.6 $ (14.5) $ (6.7) $ Amortization of excess ADIT (3.5) (3.5) GAAP income tax expense (benefit) (26.5) $ 77.6 $ (18.0) $ (6.7) $ Benefit from revaluation of net def. tax liab. (TCJA) 60.1

• 6.1
• Other tax adjustments

1.3

• (0.6)
• Run rate income tax expense (benefit)

34.9 $ 77.6 $ (12.5) $ (6.7) $ Effective tax rate 18.6% 32.4% 28.5% 33.5% Year ended September 30, Quarter ended September 30,

Spire | Investor presentation | December 2018 30

1Income tax effect of adjustments is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of pre-tax reconciling items. 2Net economic earnings (NEE) per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted earnings per share

• calculation. Also, NEE per share exclude the impact of the equity offerings to fund the acquisitions of Spire MO West, Spire Alabama, and Spire EnergySouth in fiscal years

2013, 2014, and 2016, respectively. The weighted average shares used in the NEE per share calculation and the GAAP diluted EPS calculation were 22.5 million and 26.0 million, respectively, for FY13; 32.7 million and 35.9 million, respectively, for FY14; and 43.5 million and 44.3 million, respectively, for FY16.

Net economic earnings per share (non-GAAP) reconciliation

Fiscal year ended September 30,

2012 2013 2014 2015 2016 2017 2018

Total Spire

Diluted Earnings Per Share (GAAP) $2.79 $2.02 $2.35 $3.16 $3.24 $3.43 $4.33 Adjustments, pre-tax: Missouri regulatory adjustments — — — — — — 0.62 Unrealized (gain) loss on energy-related derivatives (0.02) 0.04 (0.04) (0.07) — 0.13 (0.08) Lower of cost or market inventory adjustments — 0.05 (0.03) 0.01 0.01 — — Realized loss (gain) on economic hedges prior to the sale of the physical commodity 0.01 — (0.01) 0.06 (0.04) (0.01) (0.01) Acquisition, divestiture and restructuring activities 0.01 0.67 0.82 0.23 0.21 0.09 0.28 Gain on sale of property — — — (0.18) — — — Income tax effect of adjustments1 — (0.29) (0.31) (0.02) (0.06) (0.08) (0.21) Effects of the Tax Cuts and Jobs Act (1.21) Weighted average shares adjustment2 — 0.38 0.27 — 0.06 — — Net Economic Earnings Per Share2 (Non-GAAP) $2.79 $2.87 $3.05 $3.19 $3.42 $3.56 $3.72

Spire | Investor presentation | December 2018 31

Net economic earnings (non-GAAP) reconciliation

1Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and

then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date.

2Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation.

(Millions, except per share amounts)

Gas Utility Gas Marketing Other Consolidated Per diluted share2 Year ended September 30, 2018 Net Income (GAAP) 144.4 $ 24.9 $ 44.9 $ 214.2 $ 4.33 $ Adjustments, pre-tax: Missouri regulatory adjustments 30.6 — — 30.6 0.62 Unrealized gain on energy-related derivatives — (4.0) — (4.0) (0.08) Realized gain on economic hedges prior to the sale of the physical commodity — (0.3) — (0.3) (0.01) Acquisition, divestiture and restructuring activities 0.2 — 13.4 13.6 0.28 Income tax effect of adjustments1 (9.1) 1.2 (2.4) (10.3) (0.21) Effects of the Tax Cuts and Jobs Act 17.0 1.1 (78.2) (60.1) (1.21) Net Economic Earnings (Loss) (Non-GAAP) 183.1 $ 22.9 $ (22.3) $ 183.7 $ 3.72 $ Diluted EPS (GAAP) 2.92 $ 0.50 $ 0.91 $ 4.33 $ Net Economic EPS (Non-GAAP)2 3.71 $ 0.46 $ (0.45) $ 3.72 $ Year ended September 30, 2017 Net Income (Loss) (GAAP) 180.5 $ 3.4 $ (22.3) $ 161.6 $ 3.43 $ Adjustments, pre-tax: Unrealized loss on energy-related derivatives 0.1 5.9 — 6.0 0.13 Realized gain on economic hedges prior to the sale of the physical commodity — (0.3) — (0.3) (0.01) Acquisition, divestiture and restructuring activities 1.5 — 2.5 4.0 0.09 Income tax effect of adjustments1 (0.6) (2.2) (0.9) (3.7) (0.08) Net Economic Earnings (Loss) (Non-GAAP) 181.5 $ 6.8 $ (20.7) $ 167.6 $ 3.56 $ Diluted EPS (GAAP) 3.83 $ 0.07 $ (0.47) $ 3.43 $ Net Economic EPS (Non-GAAP)2 3.86 $ 0.14 $ (0.44) $ 3.56 $

Spire | Investor presentation | December 2018 32

Contribution margin (non-GAAP) reconciliation

(Millions)

Gas Utility Gas Marketing Other Eliminations Consolidated

Year ended September 30, 2018 Operating Income (Loss) (GAAP)

262.2 $ 33.8 $ (16.3) $ — $ 279.7 $

Operation and maintenance

464.1 7.4 30.3 (10.1) 491.7

Depreciation and amortization

167.0 — 1.4 — 168.4

Taxes, other than income taxes

152.5 0.2 0.8 — 153.5

Less: Gross receipts tax expense

(98.3) (0.1) — — (98.4)

Contribution Margin (non-GAAP)

947.5 41.3 16.2 (10.1) 994.9

Natural and propane gas costs

842.6 30.2 0.3 (1.4) 871.7

Gross receipts tax expense

98.3 0.1 — — 98.4

Operating Revenues (GAAP)

1,888.4 $ 71.6 $ 16.5 $ (11.5) $ 1,965.0 $

Year ended September 30, 2017 Operating Income (Loss) (GAAP)

321.6 $ 5.2 $ (5.1) $ — $ 321.7 $

Operation and maintenance

409.1 5.9 11.8 (5.5) 421.3

Depreciation and amortization

153.5 0.1 0.5 — 154.1

Taxes, other than income taxes

137.8 0.5 0.2 — 138.5

Less: Gross receipts tax expense

(83.0) (0.1) — — (83.1)

Contribution Margin (non-GAAP)

939.0 11.6 7.4 (5.5) 952.5

Natural and propane gas costs

645.9 67.6 0.3 (8.7) 705.1

Gross receipts tax expense

83.0 0.1 — — 83.1

Operating Revenues (GAAP)

1,667.9 $ 79.3 $ 7.7 $ (14.2) $ 1,740.7 $

Spire | Investor presentation | December 2018 33

Adjusted EBITDA1 (non-GAAP) reconciliation Adjusted long-term capitalization reconciliation

1Adjusted EBITDA is Earnings before interest, income taxes, depreciation and amortization, plus largely non-cash write-offs related to Missouri rate cases. 2Largely non-cash, pre-tax impacts of regulatory asset and expense write-offs disallowed in Missouri rate cases.

Note: Redeemable noncontrolling interest included in Equity ($7.9M) as of September 30, 2018.

(Millions)

Equity Debt Total Equity Debt Total Capitalization per balance sheet $ 2,263.3 $ 1,900.1 $ 4,163.4 $ 1,991.3 $ 1,995.0 $ 3,986.3 Current portion of long-term debt — 175.5 175.5 — 100.0 100.0 Adjusted long-term capitalization $ 2,263.3 $ 2,075.6 $ 4,338.9 $ 1,991.3 $ 2,095.0 $ 4,086.3 % of Total 52.2% 47.8% 100.0% 48.7% 51.3% 100.0% As of September 30, 2018 As of September 30, 2017

(Millions)

2018 2017 Net Income 214.2 $ 161.6 $ Add back: Interest charges 98.4 89.1 Regulatory asset write-offs2 38.4 — Income tax (benefit) expense (26.5) 77.6 Depreciation & amortization 168.4 154.1 EBITDA 492.9 $ 482.4 $ Year ended September 30,

Spire | Investor presentation | December 2018 34