Moving forward confidently Investor Presentation June 2018 2 2 - - PowerPoint PPT Presentation

Moving forward confidently

Investor Presentation June 2018

Spire | Investor Presentation | June 2018 2 Spire | Investor Presentation | June 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, 2017 as 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

• perations. 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 include the revaluation

• f deferred tax assets and liabilities due to the federal Tax Cuts and Jobs Act and 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 operating 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 | June 2018 3

At Spire, we’re connecting people and energy

Our mission

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

Transforming our company

• Growing organically
• Investing in infrastructure
• Acquiring and integrating
• Innovation

and technology

4 Spire | Investor Presentation | June 2018 4

• We’ve transformed our company

by increasing our geographic footprint

• Our gas companies serve 1.7 million

homes and businesses across Alabama, Mississippi and Missouri

• We are advancing our other businesses

– Expanding into gas storage – Pursuing Spire STL Pipeline – Opening a business center in Houston to support Spire Marketing

We’re expanding to serve more customers and markets

Spire | Investor Presentation | June 2018 5

Moving forward confidently

• Moving forward with clarity after regulatory reset
• Executing on our strategy with confidence
• Driving regulated growth
• Advancing our non-regulated businesses
• Strengthening our financial position

Spire | Investor Presentation | June 2018 6

Regulatory certainty offers clarity

Spire | Investor Presentation | June 2018 7

• Missouri rate cases finalized, parameters set

– Rate base, ROE, equity capitalization, cost of service – Rate design harmonized across Spire Missouri – ISRS reset and renewed

• Finalized RSE reset for Spire Gulf and

updated Spire Mississippi rates

• Spire Alabama RSE parameters under review
• Weather normalization across all our utilities
• Reduced all customer rates

as a result of tax reform

 Other utility  Pipelines and storage  Utility, with minimal lag and new business

We are building rate base

Capital expenditures forecast

365 380 395 410 420 60 70 70 70 70 75 110 10 10 10

2018 2019 2020 2021 2022 5-year forecast: $2.5B

$500 $560 $475 $490 $500

(Millions) Spire | Investor Presentation | June 2018 8

Rate base1 growth

$2.6

2017 2018 2019 2020 2021 2022

(Billions)

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 current RSE effective 12/1/17, and Spire Mississippi rate base per stipulation 4/10/18.

• 2018 capex forecast now $500M

– Higher utility spend of $425M – $80M for new business investment

• Increased our 5-year capital spend

forecast to $2.5 billion

– Supported by utility infrastructure upgrade programs with lives up to 20 years – ~85% recovered with minimal lag

• r reflected in earnings
• Expect annual rate base growth ~6%
• Balanced spending

33% 29% 29% 9%

Missouri East Missouri West Alabama/Mississippi Pipelines and storage

We’re growing organically

• Targeting programs that add

customers and increase utility margin

– Enhanced new business approach – More focused economic development

• Seizing market opportunities through

– Strategic line extensions providing natural gas to growing communities – Pursuit of multi-family segment

• Year-to-date in fiscal 2018 we have

– Increased new business spend ~40% – Installed 5% more new meters

• Managing O&M expenses

Spire | Investor Presentation | June 2018 9

0.63 1.12 1.55 1.57 1.68 1.69 0.3 0.6 0.9 1.2 1.5 1.8 2012 2013 2014 2015 2016 2017

(Millions)

Total utility customers1

1Rolling 12-month average customers for all gas utilities for period of Spire’s

• wnership and average customers of acquired utilities for period of ownership

in the year of acquisition.

$276 $285 $270 $252 $244 $241 $200 $225 $250 $275 $300 2012 2013 2014 2015 2016 2017

O&M expenses per customer2

2Operation and maintenance (O&M) expenses and customers for Spire Missouri,

Spire Alabama and Spire Gulf for all years.

We’re investing in pipelines

• Progressing on Spire STL Pipeline

– Anticipate FERC approval in 2018 – Ready to begin construction

• 65-mile pipeline connecting to REX

to bring shale gas to Missouri East

• Targeting 2019 in-service date and

investment of $190 - $210 million

• Evaluating other opportunities in

Missouri and Alabama

Spire | Investor Presentation | June 2018 10

Spire | Investor Presentation | June 2018 11 Spire | Investor Presentation | June 2018 11

Spire Marketing is expanding its reach

• Positioning Spire Marketing for

continued growth and success

– Named industry veteran, Pat Strange, to lead the business and grow the team – Expanding geographically by opening a business center in Houston – Strengthening our strategic position

• Strong YTD 2018 net economic

earnings of $0.29 per share

– Improved market conditions and wider regional basis differentials – Greater storage optimization and volumes

Spire | Investor Presentation | June 2018 12

Pat Strange, Spire Marketing President

We’re investing in natural gas storage

Spire | Investor Presentation | June 2018 13

• Acquired storage facility in Wyoming

– Interconnections with five interstate pipes and access to REX ‒ Strategically located near Opal hub ‒ Positioned to serve multiple regions and customers (utilities, power generators, marketers and pipelines)

• Hired Laura Luce who brings

extensive experience in storage

• We’re enhancing operating

and financial performance

• Spire Storage expected to add

to FY19 NEE per share

Spire | Investor Presentation | June 2018 14

• Net economic earnings per share

up $0.60 or 18%

• Both segments benefited from return
• f normal weather
• Gas Utility up $0.36 per share

– Higher volumes, growing ISRS revenues and modest customer growth – Benefits of lower federal income taxes – Partially offset by higher weather sensitive expenses

• Spire Marketing up $0.26 per share
• n improved market conditions

3.40 3.76 0.03 0.29 $0.00 $1.00 $2.00 $3.00 $4.00 1st Half FY17 1st Half FY18 $4.02

Net economic earnings per share1

We delivered solid 1H FY18 performance

1See Net economic earnings (non-GAAP) reconciliation in Appendix. 2Negative Other amounts not shown, ($0.01) in 1st Half FY17 and ($0.03) in 1st

Half FY18, and Gas Utility amounts reflect $0.19 and $0.18, respectively, of acquisition-related interest (normally reported in Other) in Gas Utility.

$3.42

2 2  Gas Utility  Gas Marketing

Earnings by segment

(Per diluted share)

Six months ended March 31, 2017 2018 Gas Utility $3.59 $3.94 Gas Marketing 0.03 0.29 Other (0.20) (0.21) Total $3.42 $4.02

We continue to drive earnings growth

• Growing Gas Utility earnings after rate regulatory resets, a normal part of

being a public utility

• FY18 net economic earnings per share (NEEPS) guidance of $3.65 - $3.75
• Long-term annual NEEPS growth target of 4%-7%

Gas Utility Gas Marketing Other2

Net economic earnings per share1

1See Net economic earnings (non-GAAP) reconciliation in Appendix. 2Negative amounts not shown: ($0.03) in 2013, ($0.09) in 2014, ($0.05) in 2015, ($0.06) in 2016 and ($0.04) in 2017. 3Interest expense associated with the Spire Alabama and Spire EnergySouth acquisitions (normally reported in Other) is included in Gas Utility. That interest expense totaled

$14.2 million ($0.33 per share) in 2015, $14.7 million ($0.34 per share) in 2016 and $19.4 million ($0.40 per share) in 2017.

2.14 2.51 2.83 3.14 3.33 3.46 0.55 0.39 0.31 0.10 0.15 0.14 $0.00 $1.00 $2.00 $3.00 $4.00 2012 2013 2014 2015 2016 2017 2018 guidance

3 3 3

$3.42 $3.19 $3.05 $2.87 $2.79 $3.56 $3.65 - $3.75

Spire | Investor Presentation | June 2018 15

We have set our FY18 earnings guidance

• 2018 NEEPS targeted at $3.65 - $3.75, reflecting

‒ First half results, including Spire Marketing strong performance and tax reform ‒ Missouri rate design change which concentrates margins during winter ‒ Higher expense run rate of ~$12 million annually from the MO rate cases

• Incorporates our 2018 initiatives, including

‒ May 2018 equity offering ‒ $500 million capital expenditures plan ‒ Lower cash flow due to tax reform (~$40 million annually), offset by new MO cash flow and tax benefits retained Net economic earnings per share

Spire | Investor Presentation | June 2018 16

$3.56 $3.70 $0.31 $0.30 ($0.10) ($0.31) ($0.06) $2.75 $3.00 $3.25 $3.50 $3.75 $4.00 $4.25 2017 actual 1H operating results Tax reform MO rate case write-offs Rate design Equity

• ffering

2018 midpoint

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

• Long-term NEEPS growth target

‒ Base year is 2018 run-rate earnings ‒ Frames both annual and long-term expectations

• Driven by rate base growth and our $2.5 billion capex forecast
• Anticipate growing contribution from our non-utility businesses
• Business mix remains predominantly regulated

Spire | Investor Presentation | June 2018 17

1Normalization of 2018 earnings per share to remove performance from Spire Marketing due to more favorable market conditions that are not expected to recur.

1

Net economic earnings per share

$349 $370 $200 $250 $300 $350 $400 1st Half FY17 1st Half FY18

Strengthening our financial position

• YTD FY18 adjusted EBITDA1 of

$370 million, up 6% from last year

• Ample liquidity provided by our

$975 million credit facility and commercial paper program

• Solid LT equity capitalization2 of

49.8%, up 1.1% from fiscal year-end

• 2.3 million shares issued May 10

‒ $153 million net proceeds ‒ Further strengthens our long-term equity capitalization to 51.5% ‒ Satisfies our anticipated equity needs for the next twelve months

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 (non-GAAP) reconciliation in Appendix.

Adjusted EBITDA1

(Millions)

49.8% 50.2% Equity Debt

Adjusted long-term capitalization2

(at March 31, 2018)

Spire | Investor Presentation | June 2018 18

Annualized dividends per share

$1.66 $1.70 $1.76 $1.84 $1.96 $2.10 $2.251 $1.30 $1.50 $1.70 $1.90 $2.10 $2.30 2012 2013 2014 2015 2016 2017 2018

We’re growing our dividend

1Quarterly dividend of $0.5625 per share effective January 3, 2018, annualized. 2Based on $2.25 per share dividend and SR average closing price of $70.83 for month of May 2018.

Dividend Yield 3.2%2

+2.4% +3.5% +4.5% +6.5% +7.1%

• Board declared quarterly dividend of $0.5625 per share, payable July 3
• 15 years of consecutive dividend increases (+7.1% the last two years)
• 73 years of continuous payment
• Supported by a conservative payout ratio (target range of 55%-65%)

+7.1%

Spire | Investor Presentation | June 2018 19

Moving forward confidently

• Growing our gas utilities with higher regulatory certainty
• Poised to develop our Spire STL Pipeline
• Advancing our non-regulated businesses
• Strengthening our financial position with the recent equity offering
• Increasing our long-term earnings growth target to 4%-7%

– Raising our 5-year capital investment plan to $2.5 billion – Reflecting the impacts of tax reform, Missouri rate cases and planned financing

Spire | Investor Presentation | June 2018 20

We’re bringing people and energy together in ways that enrich the lives of those we serve and add value for our stakeholders.

Spire | Investor Presentation | June 2018 21

Appendix

Spire | Investor Presentation | June 2018

22

Spire leadership team

Spire | Investor Presentation | June 2018

• F. Scott B. Carter

Senior Vice President, Commercial Operations

• E. Michael C. Geiselhart

Senior Vice President, Strategy 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

23

A B C D E F

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 half performance

Spire | Investor Presentation | June 2018 (Millions, except earnings per share)

Earnings by Segment Gas Utility

$ 191.2 $ 164.0

Gas Marketing

13.8 1.4

Other

(9.9) (8.9)

Net Economic Earnings (non-GAAP)1

$ 195.1 $ 156.5

Net Economic Earnings Per Share (non-GAAP)1

$ 4.02 $ 3.42

Other Key Metrics Adjusted EBITDA2

$ 370.1 $ 349.4

Capital Expenditures

215.8 187.3

Long-Term Debt (incl. current portion)

2,179 1,925

Total Debt

2,571 2,493

% Equity to Adjusted LT Capitalization3

49.8% 50.6%

Average Shares Outstanding - Diluted

48.4 45.7

Six months ended March 31,

2018 2017

24

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

First half 2018 earnings growth

• Net economic earnings1 (NEE) $195.1 million, up $38.6 million or 25%
• Gas Utility: NEE $191.2 million (+$27.2 million)

‒ Contribution margin2 +$22.4 million

• Higher demand (+$25.9 million) due to the return of near normal weather
• Higher MO ISRS, customer growth and off-system sales/capacity release (+$5.6 million)
• Partially offset Alabama customer rate reductions for tax reform ($9.0 million) and a higher

Spire Gulf RSE adjustment ($1.8 million)

‒ O&M expense (net of write-offs) was $5.3 million higher, largely due to weather-driven increases in employee-related costs and bad debt expense

• Gas Marketing: NEE $13.8 million (+$12.4 million) on improved market

conditions

• NEE per share $4.02 includes a 6% share increase from the April 2017 equity

unit maturity

Spire | Investor Presentation | June 2018 25

Spire | Investor Presentation | June 2018 26

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 | June 2018 27

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 $ 1.11 Lower income tax expense, net amounts reflected in customer rates Included in both GAAP and NEE $ 14.4 $ 0.30

Income tax expense

Spire | Investor Presentation | June 2018 28

• Federal income tax expense now reflects the net TCJA impact based on current

Treasury guidance

• For Q2, the non-cash revaluation of net deferred tax liabilities increased by

$4.0 million reflecting the results of the Missouri rate proceedings

• Net tax expense now reflects customer rate reductions across all of our jurisdictions to

return the benefit of tax reform as lower rates

• FY18 effective tax rate expected to be 20-21% (excluding the deferred tax revaluation)

(Millions)

2018 2017 2018 2017 GAAP income tax (benefit) expense (14.2) $ 75.6 $ 18.9 $ 53.3 $ Add: Benefit from Revaluation of net deferred tax liabilities (TCJA) Balance at 12/31/17 50.0 — — — Adjustment due to the Missouri rate cases 4.0 — 4.0 — 54.0 — 4.0 — Other tax adjustments 1.9 — 1.0 — Run rate income tax expense 41.7 $ 75.6 $ 23.9 $ 53.3 $ Effective tax rate 20.8% 33.0% 20.4% 33.0% Six months ended March 31, Quarter ended March 31,

Spire | Investor Presentation | June 2018 29 Spire | Investor Presentation | June 2018 29

Our Spire utility portfolio

Missouri Alabama

(Alagasco)

East

(Laclede Gas)

West

(MGE)

Gulf

(Mobile Gas)

Mississippi

(Willmut Gas)

Founded 1852 1857 1867 1836 1933 Primary Office Birmingham

• St. Louis

Kansas City Mobile Hattiesburg Employees 826 1,670 579 1631 Customers 421,000 651,000 513,000 84,900 18,600 Pipeline Miles ~23,000 ~16,000 ~14,000 ~4,300 ~1,200 Rate Base (In Millions) $8952 $1,2213 $8073 $1572 $234 ROE 10.80% 9.80%3 9.80%3 10.70% 9.34% Equity Capitalization 56.5% 54.2% 54.2% 55.5% 50.0%

1Employees for Gulf and Mississippi utilities combined. 2Year-end capitalization for Rate Stabilization and Equalization (RSE) purposes as of 9/30/17 for Alabama and Gulf utilities. RSE uses capitalization rather than rate base

for ratemaking purposes.

3Per amended MoPSC order dated 3/7/18 in Missouri East Case No. GR-2017-0215 and Missouri West Case No. GR-2017-0216. 4Mississippi net assets less deferred taxes for Rate Stabilization Adjustment (RSA) purposes as of 6/30/17.

Spire | Investor Presentation | June 2018 30

Spire | Investor Presentation | June 2018 31

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.

• Below-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), Chairman – Sept. 2019 – Ryan Silvey (R) – Jan. 2024 ‒ Scott T. Rupp (R) – Apr. 2020

Missouri regulatory summary

Spire | Investor Presentation | June 2018 32

1RRA is Regulatory Research Associates.

Legislative update

• The Rate Case Modernization Act,

Missouri SB 730 and HB 1878

– Sought to improve rate stability using annual rate reviews – Encouraged performance-based incentives and cost accountability

• Positive progress this session

– Regulatory reform bills for electric and water utilities passed – Gas legislation had broad support, but did not pass

• We are assessing our approach for

2019 and beyond

– We have mechanisms to ensure timely recovery and earn our authorized ROE – With recent rate case, we added weather normalization

Spire | Investor Presentation | June 2018 33

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: 10.80% allowed ROE and 56.5% equity ratio
• Spire Gulf: 10.7% allowed ROE and 55.5% equity ratio

‒ Includes current recovery on planned capital spend

• Cost Control Measure (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 on certain infrastructure investments at Spire Gulf

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

‒ Twinkle Andress Cavanaugh, President (R) – 2020 – Chris “Chip” Beeker (R) – 2018 ‒ Jeremy H. Oden (R) – 2018

Spire | Investor Presentation | June 2018 34

Spire Alabama

Mississippi regulatory summary

• Above-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 | June 2018 35

Spire | Investor Presentation | June 2018 36

Growing Spire Marketing

• Provides wholesale services to diverse

customer base

• Optimizes portfolio of commodity,

transportation and storage contracts

• Operates on 20+ pipelines
• Average sales of 1.2 Bcf/d in FY18
• 7.2 Bcf of leased storage
• Core operating footprint has been

in central U.S.

• We are positioning Spire Marketing

for continued growth and success

Spire Marketing’s operational reach

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 are calculated by replacing net income with NEE 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

Spire | Investor Presentation | June 2018 37

Fiscal years ended September 30,

2012 2013 2014 2015 2016 2017

Total Spire

Diluted Earnings Per Share (GAAP)

$2.79 $2.02 $2.35 $3.16 $3.24 $3.43

Adjustments, pre-tax: Unrealized (gain) loss on energy-related derivatives

(0.02) 0.04 (0.04) (0.07)

—

0.13

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)

Acquisition, divestiture and restructuring activities

0.01 0.67 0.82 0.23 0.21 0.09

Gain on sale of property

— — —

(0.18)

— —

Income tax effect of adjustments1

—

(0.29) (0.31) (0.02) (0.06) (0.08)

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

Net economic earnings (non-GAAP) reconciliation

1Income taxes are calculated by applying federal, state and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. 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 | June 2018 38

(Millions, except per share amounts)

Gas Utility Gas Marketing Other Total Per Diluted Share2 Six Months Ended March 31, 2018 Net Income (Loss) (GAAP) 147.7 3.8 $ 62.7 $ 214.2 $ 4.42 $ Adjustments, pre-tax: Missouri regulatory adjustments 30.6

• 30.6

0.63 Unrealized loss on energy-related derivatives

• 12.6
• 12.6

0.26 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

• 3.5

3.7 0.08 Income tax effect of pre-tax adjustments1 (7.6) (3.2) (0.9) (11.7) (0.24) Effects of the Tax Cuts and Jobs Act 20.3 0.9 (75.2) (54.0) (1.12) Net Economic Earnings (Loss) (Non-GAAP) 191.2 $ 13.8 $ (9.9) $ 195.1 $ 4.02 $ Diluted EPS (GAAP) 3.05 $ 0.08 $ 1.29 $ 4.42 $ Net Economic EPS (Non-GAAP)2 3.94 $ 0.29 $ (0.21) $ 4.02 $ Six Months Ended March 31, 2017 Net Income (Loss) (GAAP) 164.0 $ (1.8) $ (9.0) $ 153.2 $ 3.34 $ Adjustments, pre-tax: Unrealized loss on energy-related derivatives

• 5.4
• 5.4

0.12 Realized gain on economic hedges prior to the sale of the physical commodity

• (0.2)
• (0.2)
• Acquisition, divestiture and restructuring activities

0.1

• 0.1

0.2 0.01 Income tax effect of pre-tax adjustments1 (0.1) (2.0)

• (2.1)

(0.05) Net Economic Earnings (Loss) (Non-GAAP) 164.0 $ 1.4 $ (8.9) $ 156.5 $ 3.42 $ Diluted EPS (GAAP) 3.58 $ (0.04) $ (0.20) $ 3.34 $ Net Economic EPS (Non-GAAP)2 3.59 $ 0.03 $ (0.20) $ 3.42 $

Contribution margin (non-GAAP) reconciliation

Spire | Investor Presentation | June 2018 39

(Millions)

Gas Utility Gas Marketing Other Eliminations Consolidated

Six Months Ended March 31, 2018 Operating income (loss) (GAAP)

244.5 $ 6.1 $ (3.7) $

• $

246.9 $

Operation and maintenance

245.6 3.1 10.1 (4.9) 253.9

Depreciation and amortization

81.4

• 0.5
• 81.9

Taxes, other than income taxes

94.7 0.1 0.1

• 94.9

Less: Gross receipts tax expense

(66.6) (0.1)

• (66.7)

Contribution margin (non-GAAP)

599.6 9.2 7.0 (4.9) 610.9

Natural and propane gas costs

666.6 31.6 0.2 (0.8) 697.6

Gross receipts tax expense

66.6 0.1

• 66.7

Operating revenues

1,332.8 $ 40.9 $ 7.2 $ (5.7) $ 1,375.2 $

Six Months Ended March 31, 2017 Operating income (loss) (GAAP)

273.2 $ (3.0) $ (0.7) $

• $

269.5 $

Operation and maintenance

199.8 2.9 3.9 (2.6) 204.0

Depreciation and amortization

75.6

• 0.2
• 75.8

Taxes, other than income taxes

81.7 0.2 0.1

• 82.0

Less: Gross receipts tax expense

(53.1) (0.1)

• (53.2)

Contribution margin (non-GAAP)

577.2

• 3.5

(2.6) 578.1

Natural and propane gas costs

490.1 43.8 0.1 (6.8) 527.2

Gross receipts tax expense

53.1 0.1

• 53.2

Operating revenues

1,120.4 $ 43.9 $ 3.6 $ (9.4) $ 1,158.5 $

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. 2Includes consolidated total equity plus redeemable noncontrolling interest of $6.5 million.

Spire | Investor Presentation | June 2018 40

Six months ended March 31,

(Millions)

2018 2017 Net Income $ 214.2 $ 153.2 Add back: Interest charges 49.8 44.8 Regulatory asset write-offs 38.4

• Income tax (benefit) expense

(14.2) 75.6 Depreciation & amortization 81.9 75.8 Adjusted EBITDA $ 370.1 $ 349.4

As of March 31, 2018 As of March 31, 2017

(Millions)

Equity2 Debt Total Equity Debt Total Capitalization per balance sheet $2,160.0 $2,073.9 $4,233.9 $1,883.0 $1,925.3 $3,808.3 Current portion of long-term debt

• 105.5

105.5

• Adjusted long-term capitalization

$2,160.0 $2,179.4 $4,339.4 $1,883.0 $1,925.3 $3,808.3 % of Total 49.8% 50.2% 100.0% 49.4% 50.6% 100.0%