We are energy in motion Investor presentation June 2019 We believe - - PowerPoint PPT Presentation

We are energy in motion

Investor presentation June 2019

Spire | Investor Presentation – June 2019 2

We believe in a world where energy enriches people’s lives. We are Spire.

Our energy is in motion

Our mission

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

Our strategic priorities

• Growing organically
• Investing in infrastructure
• Acquiring and integrating
• Innovating and advancing

technology

3 3 Spire | Investor Presentation – June 2019

• We’re the fifth largest publicly traded

natural gas company serving 1.7 million homes and businesses across Alabama, Mississippi and Missouri

• We are developing and growing
• ur gas-related businesses

– Spire Marketing – Spire STL Pipeline – Spire Storage

We’ve expanded to serve more customers and markets

Spire | Investor Presentation – June 2019 4

We’re a growing, financially strong company

Spire | Investor Presentation – June 2019 5

Delivering growth

• 5-year capital investment of $2.8B focused on infrastructure upgrades
• Growing organically across our utility and gas-related businesses
• Targeting 4 - 7% annual long-term EPS growth

Financial strength

• Strong and growing cash flow
• Solid capitalization (51.6% equity) and ample liquidity via $975M credit facility
• Solid investment grade credit ratings

Superior investor returns

• Delivering total shareholder return of 142%1
• Growing dividend with attractive 3% yield
• Increasing market capitalization by 4.4 times since 2012

1For FY17 through first half FY19.

We continue to drive growth in our gas utilities.

Spire | Investor Presentation – June 2019

6

8,167 8,141 9,498 10,937 11,159 11,544 4,000 8,000 12,000

2014 2015 2016 2017 2018 2019

Spire | Investor Presentation – June 2019 7

Growing organically

• Enhancing our approach to new

business and economic development

• Increasing spend on new business

– Growing new premise activations – Expanding into new service areas

• Increasing margin via

– Customer growth – Balanced and constructive regulatory outcomes

• Controlling costs across our utilities

O&M expenses per customer2

$270 $252 $244 $241 $255 $256 $250 $230 $240 $250 $260 $270 2014 2015 2016 2017 2018 2019

112-months ending March 2019. 2Operation and maintenance (O&M) expenses and customers for Spire Missouri,

Spire Alabama and Spire Gulf for all years. Expenses in orange for 2018 and 2019 exclude Missouri rate case items.

$246

New premise activations

1 1

Spire | Investor Presentation – June 2019 8

Increasing our capital investment

• FY19 capex target increased to $740M

– Higher utility spend of $490M – Includes $82M for utility new business

• 5-year capex target increased to $2.8B

(thru 2023) from $2.6B (thru 2022)

– Higher investment across all businesses – Diversified across our utilities

• Focus on infrastructure upgrades

– Pipeline upgrade program with lives of 15-18 years – Drives 6% long-term rate base growth – Utility spend ~80% recovered with minimal lag or reflected in earnings Capital expenditures

(Millions)

393 395 63 95 43 250 $0 $250 $500 $750 FY18 actual FY19 forecast $740 $499

$740 $535 $520 $515 $520 395 395 400 405 410 95 90 90 100 100 250 50 30 10 10

2019 2020 2021 2022 2023 5-year forecast: $2.8B

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

Inspiring innovation through technology

• Completing our companywide

information technology modernization

• Leveraging technology and robust

databases for

– New business development – Targeting growth opportunities – Improving workload planning

• Providing customers better ways to

connect with Spire via My Account

• Deploying robotic technology to

inspect/repair distribution pipelines

• Exploring gas detection technology
• Opened our new Innovation Center

Spire | Investor Presentation – June 2019 9

174.0 141.9 99.7 75.6 68.6 2015 2016 2017 2018 2019

Strengthening system integrity

Leaks per 1,000 system miles

Improving operating performance

Investment in infrastructure upgrades, technology and our people are driving improved safety, system integrity and service.

Spire | Investor Presentation – June 2019 10

3.66 3.65 3.22 2.63 2.39 2015 2016 2017 2018 2019

Reducing employee injuries

OSHA DART1 rate 4.84 4.76 4.78 4.24 3.92 2015 2016 2017 2018 2019

Improving pipeline safety

Damage rate per 1,000 locates 32.4 28.9 28.4 26.8 25.4 2015 2016 2017 2018 2019

Enhancing service and safety

Average leak response time (minutes)

1Days away, restricted time. 2Twelve-months ending March 2019.

2 2 2 2

Progressing on regulatory initiatives

Spire | Investor Presentation – June 2019 11

Renewal

• f Pipeline

Safety Act

• Reauthorizes Pipeline and Hazardous Material Safety Administration (PHMSA)
• Focus on safety standards and mandates for system integrity
• Congress will address later this year

Missouri

• Working with Governor and state leaders to drive economic development
• Recovering pipeline upgrade investments via ISRS

– Current ISRS annualized revenues of $8M effective October 18 – Additional ISRS revenues of $13.2M authorized on May 3 Alabama

• On track for AIM target for 2019, which would increase ROE to 10.5% in 2020
• Positive movement on 811 legislation

We continue to develop our gas-related businesses to drive earnings growth.

Spire | Investor Presentation – June 2019

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Spire | Investor Presentation – June 2019 13

Growing Spire Marketing

• Building a strong team in Houston
• Logistics-based business supported

by strong risk management

• Delivers gas on 35+ pipelines
• Expanding geographically and

increasing customers and volumes

• Strong first half FY19 performance,

with NEE of $0.28 per share

• Utilities account for 77% of customers

(by net dollar exposure)

77% 8% 15%

Utilities Producers LNG and independent marketing companies

Spire Marketing locations in Houston, Oklahoma City and St. Louis

Spire | Investor Presentation – June 2019 14

Completing Spire STL Pipeline

• On track for in-service by end of FY19
• Brings new gas supply to St. Louis

– 65-mile pipeline connecting to REX – Enhances supply diversity, reliability and resiliency – Capacity of 400 MMcf/day with Spire Missouri contracted for 350 MMcf/day

• Construction well underway

– Completed major river crossings – Installing pipe (95% complete1), metering stations, ancillary equipment

• Project investment

– Total costs: $230M - $240M – Investment to date2: $132M

1Percentage of mileage completed. 2Through March 2019.

Spire | Investor Presentation – June 2019 15

Developing Spire Storage

• Integrating our facilities and

finalizing the development plan to:

– Seize expanded opportunities to serve variety of customers (utilities, power generators and producers) – Increase injection/withdrawal capabilities – Expand working gas capacity – Improve overall performance

• Total investment to date1 of $130M,

including $56M in base gas

• 1H FY19 loss of $7.4M; expect

earnings contribution in 2H FY20

1Through March 2019.

We’re executing on our growth strategy to further deliver financial strength and performance.

Spire | Investor Presentation – June 2019

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Spire | Investor Presentation – June 2019 17

• 1H capital spend of $377M, up $161M

– $136M for pipeline upgrades – $53M for utility new business, up 23% – $120M for pipelines and storage

• NEEPS of $4.20, up $0.18 (4.5%)
• Gas Utility NEEPS, up $0.23 (5.8%)

– Higher margin from MO rate design change – Slightly lower operating costs1

• Spire Marketing NEEPS $0.28, flat YoY

– Benefits of geographic expansion – Good market conditions, although less

• pportunities than winter 2017-18

Delivering solid first half performance

Net economic earnings per share (NEEPS)2

Six months ended March 31, 2018 2019 Gas Utility $3.94 $4.19 Gas Marketing 0.29 0.28 Other (0.21) (0.27) Total $4.02 $4.20

1After removing non-recurring MO rate case adjustments and reclass of benefit costs. 2See Net economic earnings (non-GAAP) reconciliation in Appendix.

168 205 18 50 30 122 $0 $100 $200 $300 $400 1H FY18 1H FY19 $377 $216

Capital expenditures

(Millions)

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

$370 $413 $200 $250 $300 $350 $400 $450 1H FY18 1H FY19

Spire | Investor Presentation – June 2019 18

Maintaining our strong financial position

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

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

2See Long-term capitalization reconciliation in the Appendix.

Adjusted EBITDA1

(Millions)

51.6% 48.4% Equity Debt

Long-term capitalization2

(at March 31, 2019)

• YTD FY19 EBITDA1 $413M, up 12%
• Ample liquidity from credit facility

and commercial paper program

• Solid LT equity capitalization2 51.6%,

up 180 basis points from a year ago

Spire Inc. Spire Missouri Spire Alabama Commercial Paper Senior Unsecured Senior Secured Senior Unsecured Moody’s P-2 Baa2 A1 A2 Standard & Poor’s A-2 BBB+ A A-

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 $80.80 year-to-date in 2019 through June 21.

Spire | Investor Presentation – June 2019 19

• Board declared quarterly dividend of $0.5925, payable July 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 2.9%2

Dividend payout ratio Dividends per share

Annualized dividends per share

Dividend payout ratio

1

Spire | Investor Presentation – June 2019 20

Confirming our outlook

• Expect 4 - 7% long-term annual

NEEPS growth1

– Growth from all businesses – Supported by $2.8B capex plan – Earnings mix predominately regulated

• FY19 NEEPS range of $3.70 - $3.80;

midpoint growth of 5.6%1

• Balanced financing plan that utilizes:

– Operating company long-term debt – Common and preferred equity

• Key credit metric targets

– FFO/debt: 15 - 16% – Holdco debt/total debt: <20% Long-term financing forecast

1Base is run-rate FY18 NEEPS of $3.55.

Capital expenditures

$740 $535 $520 $515 $520 395 395 400 405 410 95 90 90 100 100 250 50 30 10 10

2019 2020 2021 2022 2023 5-year forecast: $2.8B

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

275-300 50-100 100-150 100-150 150-200 100-200 100-200 100-200

2019 2020 2021 2022

Common and preferred equity

($ Millions) (Millions)

Operating company long-term debt

Financing our growth

$250M perpetual preferred offering

• Closed May 21, 2019 (NYSE: SR.PRA)
• Issued 10M shares of $25 par

depository shares

• 5.90% coupon
• Callable at par after Aug. 15, 2024
• Strong investor response
• Proceeds used to

– Finance capital investments – Fund $125M in maturing Spire Inc. debt on Aug. 15, 2019

$150M At-the-Market program

• Announced in February
• Launched May 16, 2019

– Three-year authorization – Proceeds used to finance capital investments – Anticipate some equity issuance in second half 2019

Spire | Investor Presentation – June 2019 21

We’re evolving as a business and we continue to build on how we serve, grow and lead in our communities.

Spire | Investor Presentation – June 2019

22

We believe the greatest energy in the world comes from one source—people We built our Corporate Social Responsibility (CSR) strategy around four key areas, and now—for the first time ever— we’re reporting on how we impacted:

Our communities Our people Our leadership Our environment

Spire | Investor Presentation – June 2019 23

Introducing Spire’s very first CSR Report

In our CSR Report, you’ll see how we’ve used our energy for good, influencing each

• f our targeted areas in FY18—the first full

year of our CSR efforts. We’re committed to driving positive and significant change in the communities we serve. Learn more at CSRReport2018.SpireEnergy.com

Spire | Investor Presentation – June 2019 24

Spire | Investor Presentation – June 2019 25

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

Supplemental material

Spire | Investor Presentation – June 2019

26

• Spire leadership
• Additional gas utility information
• Other financial information

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,” and “adjusted EBITDA,” 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. 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 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 2019 27

Spire executive leadership team

Suzanne Sitherwood

President and Chief Executive Officer

B

Steve Lindsey

Executive Vice President, Chief Executive Officer, Gas Utilities and Distribution Operations

Steve Rasche

Executive Vice President, Chief Financial Officer

Mark Darrell

Senior Vice President, General Counsel and Chief Compliance Officer

Mike Geiselhart

Senior Vice President, Strategic Planning and Corporate Development

Spire | Investor Presentation – June 2019 28

Spire business unit presidents

E

Scott Carter

President, Spire Missouri

Joe Hampton

President, Spire Alabama and Mississippi

Scott Jaskowiak

President, Spire STL Pipeline and Spire Storage

Pat Strange

President, Spire Marketing

Spire | Investor Presentation – June 2019 29

Additional gas utility information

Spire | Investor Presentation – June 2019

30

Our Spire gas utility portfolio

Spire | Investor Presentation – June 2019 31

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

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

5Terms of renewed RSE, effective 10/1/18 through 9/30/22.

Upgrading our infrastructure over the next 15-18 years

Estimated replacement miles remaining

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 – June 2019 32

191 247 243 294 356 382 100 200 300 400 2013 2014 2015 2016 2017 2018

Miles of pipeline replaced

Gaining regulatory certainty

• Missouri rate cases completed in March 2018

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

• Alabama rate-setting parameters (RSE) updated

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

Spire | Investor Presentation – June 2019 33

Spire Alabama Spire Gulf 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% >

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 J. Coleman (D) – Aug. 2021 – Daniel Y. Hall (D) – Sept. 2019 – Ryan A. Silvey (R), Chair – Jan. 2024 – Scott T. Rupp (R) – Apr. 2020

Spire | Investor Presentation – June 2019 34

1RRA is Regulatory Research Associates.

Missouri regulatory and legislative update

• Restructuring of agencies to facilitate

economic and workforce development

• Received annualized ISRS of $21.2M

since rate cases concluded April 2018

– $13.2M effective May 3, 2019; excludes $1.1M for interspersed plastic pending determination of ISRS eligibility – Non-ISRS eligible amounts recoverable in next rate case

• We are assessing our regulatory and

legislative strategy to achieve more progressive and timely rate review

Spire | Investor Presentation – June 2019 35

Alabama regulatory summary

• Top-rated regulatory jurisdiction by RRA
• Rate Stabilization and Equalization (RSE)

– RSE parameters evaluated every four years – Annual rate-setting process with forward-year budget and quarterly reviews – 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 – June 2019 36

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

Spire | Investor Presentation – June 2019 37

Other financial information

Spire | Investor Presentation – June 2019

38

Affirming our earnings guidance

• FY19 NEEPS range of $3.70 - $3.80
• Long-term NEEPS growth target of 4 - 7%

– Base is run-rate FY18 NEEPS – Removes 17¢ of Spire Marketing NEEPS driven by market conditions not expected to recur

Net economic earnings per share

Spire | Investor Presentation – June 2019 39

1Run-rate adjustment is an estimate of Spire Marketing results of $0.17 in 2018 not anticipated to recur.

1

40

Controlling expenses

• Gas Utility operating expenses

– Lower demand and volumes and deferred gas cost recoveries – O&M expenses, as reported, include the prior year impact of the Missouri rate case write-offs as well as the adoption of new GAAP guidance for pension (retirement plan) expense classification – Pro forma O&M was higher by $3.0M, reflecting $4.0M in higher benefit and energy efficiency costs (reset in our MO rate cases), offset in part by lower other costs – Depreciation and amortization increased consistent with higher investment levels

1Represents quarter-over-quarter change in certain post-retirement costs reclassed to other income and expense.

Second quarter ended March 31, 2019

As reported As reported Rate case & TCJA Benefit reclass1 Pro forma run rate $ %

Operating Expenses Gas Utility Natural & propane gas 337.4 $ 383.7 $ $  $  383.7 $ (46.3) $

• 12%

Operation and maintenance (O&M) 109.5 135.3 (38.4) 9.6 106.5 3.0 3% Depreciation & amortization 44.4 41.1   41.1 3.3 8% Taxes, other than income taxes 57.4 58.0   58.0 (0.6)

• 1%

Gas Marketing 38.0 39.7   39.7 (1.7)

• 4%

Other 7.3 5.5   5.5 1.8 33% Operating Income 209.5 150.1   150.1 59.4 40% Other Income (Expense), Net 6.1 (7.6)  9.6 2.0 4.1 205% Interest Expense 27.6 25.4   25.4 2.2 9% Income Tax Expense 33.4 18.9 10.1  29.0 4.4 15%

(Millions)

2018 Change vs Pro forma

Spire | Investor Presentation – June 2019

Spire | Investor Presentation – June 2019 41

Missouri rate cases – 2018 impacts

• New rates went into effect on April 19, 2018

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

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 rate cases – 2018 impacts

• Effective tax rate of 17.8% in 2019 is lower than the 2018 run rate (excluding
• ne-time items) of 20.8% due to the following:

– Return of Excess ADIT to customers in Missouri included as both a customer rate reduction and a company tax deduction – Tax Reform legislation passed in Missouri in June 2018 lowering the State Tax rate to 4.0% from 6.25% effective FY21

• Higher tax expense in Q2 2019 due to Missouri rate case write-offs that occurred

in the prior year and the change in the Missouri rate structure to more variable

Spire | Investor Presentation – June 2019 42

1Excess Accumulated Deferred Income Taxes (ADIT).

(Millions)

2019 2018 2019 2018 GAAP expense (benefit) before ADIT amortization1 35.5 $ 18.9 $ 52.3 $ (14.2) $ Amortization of excess ADIT (2.1)  (4.2) GAAP income tax expense (benefit) 33.4 $ 18.9 $ 48.1 $ (14.2) $ Benefit from revaluation of net deferred tax liabilities (TCJA)  4.0 0.0 54.0 Other tax adjustments  1.0 0.0 1.9 Run rate income tax expense 33.4 $ 23.9 $ 48.1 $ 41.7 $ Effective tax rate 17.8% 20.4% 17.8% 20.8% Quarter ended March 31, Six months ended March 31,

Net economic earnings [non-GAAP] reconciliation

Spire | Investor Presentation – June 2019 43

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 and then

adding any estimated effects of enacted state or local income tax laws for periods before 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 Total Per diluted share2 Three months ended March 31, 2019 Net Income (Loss) [GAAP] 146.7 $ 12.9 $ (5.0) $ 154.6 $ 3.04 $ Adjustments, pre-tax: Unrealized gain on energy-related derivatives . (9.1) . (9.1) (0.18) Income tax effect of adjustments1 . 2.4 . 2.4 0.04 Net Economic Earnings (Loss) [Non-GAAP] 146.7 $ 6.2 $ (5.0) $ 147.9 $ 2.90 $ Diluted EPS [GAAP] 2.88 $ 0.26 $ (0.10) $ 3.04 $ Net Economic EPS [Non-GAAP]2 2.88 $ 0.12 $ (0.10) $ 2.90 $ Three months ended March 31, 2018 Net Income (Loss) [GAAP] 102.5 $ 0.3 $ (4.6) $ 98.2 $ 2.03 $ Adjustments, pre-tax: Missouri regulatory adjustments 30.6 . . 30.6 0.63 Unrealized loss on energy-related derivatives . 11.8 . 11.8 0.24 Realized gain on economic hedges prior to the sale of the physical commodity . (0.2) . (0.2) (0.01) Acquisition, divestiture and restructuring activities 0.2 . 1.8 2.0 0.04 Income tax effect of adjustments1 (7.6) (3.0) (0.5) (11.1) (0.22) Effect of the Tax Cuts and Jobs Act 6.0 1.3 (1.4) 5.9 0.12 Net Economic Earnings (Loss) [Non-GAAP] 131.7 $ 10.2 $ (4.7) $ 137.2 $ 2.83 Diluted EPS [GAAP] 2.12 $ 0.01 $ (0.10) $ 2.03 $ Net Economic EPS [Non-GAAP]2 2.72 $ 0.21 $ (0.10) $ 2.83 $

Net economic earnings [non-GAAP] reconciliation

Spire | Investor Presentation – June 2019 44

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 and then

adding any estimated effects of enacted state or local income tax laws for periods before 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 Total Per diluted share2 Six months ended March 31, 2019 Net Income (Loss) [GAAP] 213.1 $ 22.9 $ (14.1) $ 221.9 $ 4.36 $ Adjustments, pre-tax: Unrealized gain on energy-related derivatives . (11.3) . (11.3) (0.22) Acqusition, divestiture and restructuring activies . . 0.4 0.4 0.01 Income tax effect of adjustments1 . 2.9 (0.1) 2.8 0.05 Net Economic Earnings (Loss) [Non-GAAP] 213.1 $ 14.5 $ (13.8) $ 213.8 $ 4.20 $ Diluted EPS [GAAP] 4.19 $ 0.45 $ (0.28) $ 4.36 $ Net Economic EPS [Non-GAAP]2 4.19 $ 0.28 $ (0.27) $ 4.20 $ 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 adjustments1 (7.6) (3.2) (0.9) (11.7) (0.24) Effect 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 $

Contribution margin [non-GAAP] reconciliation

Spire | Investor Presentation – June 2019 45 (Millions)

Gas Utility Gas Marketing Other Eliminations Consolidated

Three months ended March 31, 2019 Operating income (loss) [GAAP]

196.3 $ 16.8 $ (3.6) $ $  209.5 $

Operation and maintenance

112.0 2.7 6.5 (2.9) 118.3

Depreciation and amortization

44.4  0.5  44.9

Taxes, other than income taxes

57.4 0.3 0.4  58.1

Less: Gross receipts tax expense

(43.4) (0.1)   (43.5)

Contribution margin [non-GAAP]

366.7 19.7 3.8 (2.9) 387.3

Natural and propane gas costs

366.7 5.7 0.1 (0.2) 372.7

Gross receipts tax expense

43.4 0.1   43.5

Operating revenues

776.8 $ 25.5 $ 4.3 $ (3.1) $ 803.5 $

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

151.0 $ 1.1 $ (2.0) $ $  150.1 $

Operation and maintenance

137.5 1.5 5.8 (2.6) 142.2

Depreciation and amortization

41.1  0.4  41.5

Taxes, other than income taxes

58.0 0.1 0.1  58.2

Less: Gross receipts tax expense

(43.5) (0.1)   (43.6)

Contribution margin [non-GAAP]

344.1 2.6 4.3 (2.6) 348.4

Natural and propane gas costs

403.2 18.6 0.1 (0.3) 421.4

Gross receipts tax expense

43.5 0.1   43.6

Operating revenues

790.8 $ 21.3 $ 4.4 $ (3.1) $ 813.4 $

Contribution margin [non-GAAP] reconciliation

Spire | Investor Presentation – June 2019 46 (Millions)

Gas Utility Gas Marketing Other Eliminations Consolidated

Six months ended March 31, 2019 Operating income (loss) [GAAP]

291.9 $ 29.3 $ (6.6) $ $  314.6 $

Operation and maintenance

216.9 5.3 13.9 (5.6) 230.5

Depreciation and amortization

88.1  1.0  89.1

Taxes, other than income taxes

96.6 0.5 0.8  97.9

Less: Gross receipts tax expense

(69.3) (0.1)   (69.4)

Contribution margin [non-GAAP]

624.2 35.0 9.1 (5.6) 662.7

Natural and propane gas costs

658.5 16.2 0.6 (1.9) 673.4

Gross receipts tax expense

69.3 0.1   69.4

Operating revenues

1,352.0 $ 51.3 $ 9.7 $ (7.5) $ 1,405.5 $

Six months ended March 31, 2018 Operating income (loss) [GAAP]

251.7 $ 6.1 $ (3.7) $ $  254.1 $

Operation and maintenance

238.4 3.1 10.1 (4.9) 246.7

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 $

Adjusted EBITDA [non-GAAP] reconciliation Long-term capitalization reconciliation

1Redeemable non-controlling interest of $6.5M included in March 2018.

Spire | Investor Presentation – June 2019 47

(Millions)

2019 2018 Net Income 221.9 $ 214.2 $ Add back: Interest charges 53.5 49.8 Regulatory asset write-offs !! 38.4 Income tax expense (benefit) 48.1 (14.2) Depreciation & amortization 89.1 81.9 Adjusted EBITDA 412.6 $ 370.1 $ Six months ended March 31,

(Millions)

Equity Debt Total Equity Debt Total Capitalization per balance sheet1 $ 2,406.0 $ 2,041.9 $ 4,447.9 $ 2,160.0 $ 2,073.9 $ 4,233.9 Current portion of long-term debt  215.0 215.0  105.5 105.5 Adjusted long-term capitalization $ 2,406.0 $ 2,256.9 $ 4,662.9 $ 2,160.0 $ 2,179.4 $ 4,339.4 % of Total 51.6% 48.4% 100.0% 49.8% 50.2% 100.0% As of March 31, 2019 As of March 31, 2018

Spire | Investor Presentation | December 2018 48 Spire | Investor Presentation – June 2019 48