Energy in motion Investor presentation March 2019 2 2 Spire | - - PowerPoint PPT Presentation

Energy in motion

Investor presentation March 2019

Spire | Investor Presentation | December 2018 2 Spire | Investor presentation – March 2019 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. More complete descriptions and listings of these uncertainties and risk factors can be found in our annual (Form 10-K) and quarterly (Form 10-Q) filings with the Securities and Exchange Commission. This presentation also includes “net economic earnings,” “net economic earnings per share,” “contribution margin,” “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 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. EBITDA is earnings before interest, income taxes, depreciation and amortization. Reconciliations of net income to net economic earnings and of contribution margin to operating income are contained in our SEC filings and in the Appendix to this presentation. Reconciliations of 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 – March 2019 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 – March 2019 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 STL Pipeline – Spire Storage

We’re expanding to serve more customers and markets

Spire | Investor presentation – March 2019 5

Spire | Investor presentation – March 2019 6

• Operating with regulatory certainty from

2018 resets in MO and AL

• Executing on organic growth and capital

investment plans

• Achieving strong Q1 financial performance

– NEEPS of $1.30, up 9% – Utility NEEPS up over 7%

• Advancing our gas-related businesses

– Expanding Spire Marketing – Constructing Spire STL Pipeline – Integrating Spire Storage; finalizing development plan

• Strengthening our financial position

Building on our momentum

Growing our gas utilities

• Driving organic growth

– 19% growth in new business capital investment in Q1 – Continued growth in new meter installations in Q1

• Increasing capital investment

– 40% increase in utility capital expenditures in Q1 – 85% of utility spend recovered with minimal lag or reflected in earnings

• Securing regulatory recovery of investments

– Missouri: $19M in additional annual ISRS revenues filed Jan. 14 (eff. mid-May) – Alabama: Progressing on AIM program (incentive to accelerate infrastructure upgrades)

• Managing costs across our utilities

Spire | Investor presentation – March 2019 7

Investing for long-term growth

• Q1 FY19 capital spend up $96M
• FY19 forecasted spend of $650M

– $475M for gas utilities – $150M for Spire STL Pipeline – Refining plan for Spire Storage

• 5-year capital investment of $2.6B

– Supported by infrastructure upgrade programs with lives up to 18 years – Driving long-term 6% rate base growth – 85%+ of utility spend recovered with minimal lag or reflected in earnings Capital expenditures

393 400 405 410 420 63 75 65 70 70 43 175

2018 2019 2020 2021 2022

Utility, with minimal lag and new business

5-year forecast: $2.6B

Pipelines and storage Other utility

$499 $650 $485 $495 $505

(Millions) Spire | Investor presentation – March 2019 8

$111 $207 $0 $50 $100 $150 $200 $250 Q1 FY18 Q1 FY19

Building Spire STL Pipeline

• We’ve received required approvals,

permits and land rights

• Construction is now underway
• Total project investment estimated

at $210-$225 million

• The 65-mile pipeline will bring new

gas supply to the St. Louis region

• Targeting in-service date by the

end of our fiscal year

Spire | Investor presentation – March 2019 9

Spire | Investor presentation – March 2019 10

Growing Spire Marketing

Spire Marketing’s operational reach

• Logistics-based business supported by

strong risk management

– Provides gas marketing services to diverse customer base in central and southern U.S. – Physically delivers gas on 20+ pipelines – Optimizes portfolio of commodity, transportation and storage contracts

• Positioning Spire Marketing for further

growth and success

– Adding talent, building team in Houston – Expanding geographic reach, customer base

• Strong Q1 NEEPS of $0.16, double the

prior year, driven by

– Geographic expansion of our business and favorable market conditions – Ongoing basis differentials that increased value from optimizing our portfolio

Spire | Investor presentation – March 2019 11

Developing Spire Storage

• FERC approved combining operations of
• ur two storage facilities in Wyoming
• We are integrating and finalizing the

development and investment plan to:

– Take advantage of expanded long-term

• pportunities to serve a variety of customers

(utilities, power generators and producers) – Increase injection and withdrawal capabilities – Expand working gas capacity – Improve overall performance

• $100M total investment through Q1 FY19
• Expect earnings contribution in FY20

$148 $152 $100 $120 $140 $160 Q1 FY18 Q1 FY19

Spire | Investor presentation – March 2019 12

Strengthening our financial position

• Q1 FY19 EBITDA1 of $152M, up 3%
• Ample liquidity at the peak of our

seasonal borrowing

• Solid LT equity capitalization2 51.3%,

up 190 basis points from a year ago

• Planned financings on track

‒ On Dec. 3, Spire MO completed and funded $100M 3-year term loan ‒ On Jan. 15, Spire AL completed private placement of $90M in Senior Notes

• Feb. 6 announced $150M equity

At-The-Market (ATM) program

‒ 3-year program ‒ Not active at this time ‒ Satisfies anticipated equity needs for the next two years

1EBITDA is earnings before interest, income taxes, depreciation and amortization. 2See Adjusted long-term capitalization reconciliation in the Appendix.

EBITDA1

(Millions)

51.3% 48.7% Equity Debt

Long-term capitalization2

(at December 31, 2018)

Growing the dividend

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 $77.28 year-to-date in 2019 through March 15.

Spire | Investor presentation – March 2019 13

• Board declared quarterly dividend of $0.5925, payable April 2
• 16 consecutive years of increases; 74 years of continuous payment
• Dividend growth (5.3% in 2019) supported by our

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

Dividend Yield 3.1%2

Dividend payout ratio Dividends per share

Annualized dividends per share

Dividend payout ratio

1

Targeting long-term earnings growth of 4%-7%

• Reflects ~6% annual utility rate base growth, regulatory certainty, and 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 – March 2019 14

2019 NEEPS guidance of $3.70-$3.80

• Gas Utility growth driven by organic initiatives and infrastructure upgrades more

than offsetting full-year impact of rate resets in MO (~3¢) and AL (~11¢)

• Increasing contributions from gas-related businesses as we complete Spire STL

Pipeline and continue growing Spire Marketing

• Other cost reductions (interest and other corporate costs) largely offset full-year

impact of May 2018 equity offering

Spire | Investor presentation – March 2019 15

Spire | Investor presentation – March 2019 16

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 – March 2019

17

Spire | Investor Presentation | December 2018 18 Spire | Investor presentation – March 2019 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 – March 2019 19

Our Spire utility portfolio

Spire | Investor presentation – March 2019 20

Alabama Gulf Mississippi Missouri Primary office Birmingham Mobile Hattiesburg

• St. Louis

Employees1 861 123 33 2,321 Customers1 420,600 83,900 18,500 1,169,900 Pipeline miles ~23,000 ~4,300 ~1,200 ~30,000 Rate base (Millions) $5092 $922 $243 $2,2174 Return on equity 10.40%5 10.70% 9.34% 9.80% Equity capitalization 55.5%5 55.5% 50.0% 54.2%

1Employees and customers as of September 30, 2018. 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 deferred taxes for Rate Stabilization Adjustment (RSA) purposes as of 9/14/18 filing. 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 RSE, effective 10/1/18 through 9/30/22.

Pipeline replacement program

Robust infrastructure replacement programs with lives of 15 - 18 years Estimated replacement miles

As of 12/31/18

Steel1 Cast iron Vintage plastic Total replacement miles Total system miles Missouri 1,740 720

• 2,460

30,000 Alabama 540 570 280 1,390 27,300 Total 2,280 1,290 280 3,850 57,300

% of total

59% 34% 7% 100%

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

Spire | Investor presentation – March 2019 21

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 $8M 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 – March 2019 22

Spire | Investor presentation – March 2019 23

Missouri rate cases

• New rates went into effect on April 19, 2018

– 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 Q2FY18)

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)

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 – March 2019 24

1RRA is Regulatory Research Associates.

Missouri regulatory and legislative update

• Utility regulation improved with passage
• f electric and water legislation in 2018
• As a result of our 2018 rate cases, we have

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

• We are assessing our regulatory and

legislative strategy to achieve more progressive and timely rate review

• We continue to recover our upgrade spend

– $8M increase in ISRS revenues, eff. Oct. 2018 – $19M ISRS increase requested Jan. 2019; new rates effective by mid-May

• Restructuring of agencies to facilitate

economic and workforce development

‒ MoPSC and OPC moving to Department of Commerce and Insurance ‒ Moving from Department of Econ. Dev.

Spire | Investor presentation – March 2019 25

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 – March 2019 26

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

– Program through Oct. 2021 for up to $5M 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 – March 2019 27

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 first quarter performance

Spire | Investor presentation – March 2019 28 (Millions, except earnings per share)

Earnings by Segment Gas Utility

$ 66.4 59.5

Gas Marketing

8.3 3.6

Other

(8.8) (5.2)

Net Economic Earnings (non-GAAP)1

$ 65.9 $ 57.9

Net Economic Earnings Per Share (non-GAAP)1

$ 1.30 $ 1.19

Other Key Metrics EBITDA2

$ 152.1 $ 147.7

Capital Expenditures

206.8 110.8

Long-Term Debt (incl. current portion)

2,167 2,136

Total Debt

2,793 2,719

% Equity to Adjusted LT Capitalization3

51.3% 49.4%

Average Shares Outstanding - Diluted

50.8 48.3

Three months ended December 31,

2018 2017

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

Q1 FY19 earnings growth

• Net economic earnings1 (NEE) $65.9M, up $8.0M
• NEE per share $1.30 up 9%, reflecting

– Improved results from Gas Utility and Gas Marketing – Partially offset by higher corporate costs and the operating loss from Spire Storage

• Gas Utility: NEE $66.4M (+$6.9M)

– Contribution margin2 +$2.0M

• Higher usage from colder weather and modest customer growth
• Missouri rate increase and design change
• Margin up $16.0M excl. customer rate reduction for tax reform (largely offset by lower tax expense)

– Net O&M expenses down slightly excl. higher benefit and energy efficiency costs

reset in MO rate cases

• Gas Marketing: NEE $8.3M (+$4.7M) reflecting geographic expansion of our

business and favorable market conditions

Spire | Investor presentation – March 2019 29

Tax Cuts and Jobs Act

• We lowered customer rates for all utilities as a result of tax reform
• 1HFY18 financial results include impacts based on the available guidance, including

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

• 2018 impact

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

Spire | Investor presentation – March 2019 30

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 $ 60.1 $ 1.21 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 – March 2019 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.

Spire | Investor presentation – March 2019 32

(Millions, except per share amounts)

Gas Utility Gas Marketing Other Total Per diluted share2 Three months ended December 31, 2018 Net Income (Loss) [GAAP] 66.4 $ 10.0 $ (9.1) $ 67.3 $ 1.32 $ Adjustments, pre-tax: Unrealized gain on energy-related derivatives  (2.2)  (2.2) (0.04) Acquisition, divestiture and restructuring activities   0.4 0.4 0.01 Income tax effect of adjustments1  0.5 (0.1) 0.4 0.01 Net Economic Earnings (Loss) [Non-GAAP] 66.4 $ 8.3 $ (8.8) $ 65.9 $ 1.30 $ Diluted EPS [GAAP] 1.31 $ 0.19 $ (0.18) $ 1.32 $ Net Economic EPS [Non-GAAP]2 1.31 $ 0.16 $ (0.17) $ 1.30 $ Three months ended December 31, 2017 Net Income [GAAP] 45.2 $ 3.5 $ 67.3 $ 116.0 $ 2.39 $ Adjustments, pre-tax: Unrealized loss on energy-related derivatives  0.8  0.8 0.02 Realized gain on economic hedges prior to the sale of the physical commodity  (0.1)  (0.1)  Acquisition, divestiture and restructuring activities   1.7 1.7 0.04 Income tax effect of adjustments1  (0.2) (0.4) (0.6) (0.02) Effectof the Tax Cuts and Jobs Act 14.3 (0.4) (73.8) (59.9) (1.24) Net Economic Earnings (Loss) [Non-GAAP] 59.5 $ 3.6 $ (5.2) $ 57.9 $ 1.19 $ Diluted EPS [GAAP] 0.93 $ 0.07 $ 1.39 $ 2.39 $ Net Economic EPS [Non-GAAP]2 1.22 $ 0.08 $ (0.11) $ 1.19 $

Contribution margin [non-GAAP] reconciliation

Spire | Investor presentation – March 2019 33

(Millions)

Gas Utility Gas Marketing Other Eliminations Consolidated

Three months ended December 31, 2018 Operating income (loss) [GAAP]

95.6 $ 12.5 $ (3.0) $  105.1 $

Operation and maintenance

104.9 2.6 7.4 (2.7) 112.2

Depreciation and amortization

43.7  0.5  44.2

Taxes, other than income taxes

39.2 0.2 0.4  39.8

Less: Gross receipts tax expense

(25.9)    (25.9)

Contribution margin [non-GAAP]

257.5 15.3 5.3 (2.7) 275.4

Natural and propane gas costs

291.8 10.5 0.1 (1.7) 300.7

Gross receipts tax expense

25.9    25.9

Operating revenues

575.2 $ 25.8 $ 5.4 $ (4.4) $ 602.0 $

Three months ended December 31, 2017 Operating income (loss) [GAAP]

100.7 $ 5.0 $ (1.7) $  104.0 $

Operation and maintenance

100.9 1.6 4.3 (2.3) 104.5

Depreciation and amortization

40.3  0.1  40.4

Taxes, other than income taxes

36.7    36.7

Less: Gross receipts tax expense

(23.1)    (23.1)

Contribution margin [non-GAAP]

255.5 6.6 2.7 (2.3) 262.5

Natural and propane gas costs

263.4 13.0 0.1 (0.3) 276.2

Gross receipts tax expense

23.1    23.1

Operating revenues

542.0 $ 19.6 $ 2.8 $ (2.6) $ 561.8 $

EBITDA1 [non-GAAP] reconciliation Adjusted long-term capitalization reconciliation

1EBITDA is earnings before interest, income taxes, depreciation and amortization. 2Redeemable noncontrolling interest included in Equity ($6.5M) as of December 31, 2017.

Spire | Investor presentation – March 2019 34

(Millions)

2018 2017 Net Income 67.3 $ 116.0 $ Add back: Interest charges 25.9 24.4 Income tax expense (benefit) 14.7 (33.1) Depreciation & amortization 44.2 40.4 EBITDA 152.1 $ 147.7 $ Three months ended December 31,

(Millions)

Equity Debt Total Equity Debt Total Capitalization per balance sheet2 $ 2,284.6 $ 1,992.0 $ 4,276.6 $ 2,085.7 $ 2,030.0 $ 4,115.7 Current portion of long-term debt  175.0 175.0  105.5 105.5 Adjusted long-term capitalization $ 2,284.6 $ 2,167.0 $ 4,451.6 $ 2,085.7 $ 2,135.5 $ 4,221.2 % of Total 51.3% 48.7% 100.0% 49.4% 50.6% 100.0% As of December 31, 2018 As of December 31, 2017