SPIRE INC — Call Transcript 2026

Good day, and welcome to Spire's first quarter fiscal 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Megan McPhail, Managing Director, Investor Relations. Please go ahead. Good morning, and welcome to Spire's fiscal 2026 first quarter earnings call. We issued an earnings news release this morning, and you may access it on our website at spireenergy.com under Newsroom. There's a slide presentation that accompanies our webcast, which can be downloaded from our website. Before we begin, let me cover our safe harbor statement and use of non-GAAP earnings measures. Today's call, including responses to questions, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although our forward-looking statements are based on reasonable assumptions, there are various uncertainties and risk factors that may cause future performance or results to be different from those anticipated. These risks and uncertainties are outlined in our quarterly and annual filings with the SEC. In our comments, we will be discussing non-GAAP measures used by management when evaluating our performance and results of operations. Explanations and reconciliations of these measures to their GAAP counterparts are contained in both our news release and slide presentation. On the call today is Scott Doyle, President and CEO, and Adam Woodard, Executive Vice President and CFO. With that, I will turn the call over to Scott Doyle. Scott? Good morning, and thank you for joining us. As we begin our fiscal first quarter update, I want to recognize and appreciate the hard work of our employees across every part of our organization during Winter Storm Fern. The recent weather event was an opportunity for us to serve our customers when they needed us most, and I'm very proud of how we responded. With extreme weather impacting all our service territories, our team collaborated closely, making sure homes and businesses stayed safe and warm. According to the American Gas Association, Winter Storm Fern led to some of the highest demand of natural gas in our nation's history. In fact, at the height of the storm, just our Spire utilities delivered natural gas equivalent to 31 gigawatts of electric generation capacity at a much lower cost to customers. Despite extreme conditions, natural gas once again distinguished itself, underscoring that direct use of natural gas remains the most reliable and affordable way to heat your home. This morning, we announced adjusted earnings of $1.77 per share, up from $1.34 per share a year ago. The strong year-over-year improvement reflects solid execution in our gas utility business, supported by new rates across all of the utilities. Our marketing and midstream segments also delivered meaningful contributions. Just as we've discussed on prior calls, cost management and customer affordability remain central to our strategy. We continue to pursue efficiencies while investing in system improvements and safety, ensuring we maintain the reliability our customers expect. On the regulatory front, we are executing on our goal to achieve constructive outcomes in all jurisdictions. New Missouri rates became effective in October, and in November, we filed a request for a $30.3 million revenue increase under the Infrastructure System Replacement Surcharge, with rates expected to be effective no later than May. Spire Alabama and Spire Gulf rates under the Rate Stabilization and Equalization mechanism were updated in December, supporting our continued system investment. Looking ahead, we are reaffirming our 2026 adjusted EPS guidance of $5.25 to $5.45 per share. Our 2027 adjusted EPS guidance of $5.65 to $5.85 per share, and our long-term 5% to 7% adjusted EPS growth target. These targets underscore our confidence in the strength of our portfolio and our disciplined approach to capital deployment. Our ten-year capital plan remains at $11.2 billion, with a majority targeted toward utility investments. Finally, we remain on track. We remain committed to delivering on our financial and operational goals as we execute our strategy to grow organically, invest in infrastructure, and drive continuous improvement. Turning now to page five for an update on the Tennessee acquisition. We continue to make progress toward closing. The Hart-Scott-Rodino review is complete and approval from the Tennessee Public Utility Commission remains pending. Our financing plan is aligned with maintaining our current credit ratings and includes a balanced mix of debt, equity, and hybrid securities. In November, we issued $900 million of junior subordinated notes of Spire Inc. Following this, in December, we entered into a master note purchase agreement for $825 million of Spire Tennessee senior notes, which will fund at closing. We continue to expect minimal common equity needs. As we've discussed on previous earnings calls, our evaluation of the potential sale of our natural gas storage assets is ongoing. The timeline for an announcement has extended beyond our initial expectations, reflecting our objective to achieve the right value for each of the assets. We are focused on simplifying our portfolio and expect to provide an update later this quarter ahead of the acquisition close. ... Operationally, our integration planning is well underway, supported by an 18-month transition services agreement designed to ensure seamless continuity for both customers and employees. Moving to page 6. In the quarter, we invested $230 million in capital expenditures, with the majority directed toward our gas utility operations, including system upgrades, infrastructure modernization, and new business connections. These investments are already delivering value, as reflected in the strong operational performance and reliability of the system through a quarter marked by weather swings from unseasonably warm to well below average temperatures. CapEx was lower year-over-year, driven by the near completion of the Advanced Meter Upgrades in the St. Louis region and the wrap-up of our storage expansion project. We continue to expect 2026 CapEx of $809 million, supported by our ten-year, $11.2 billion capital plan. These investments directly support rate base growth of roughly 7% in Missouri and 7.5% in Tennessee, and 6% regulated equity growth in Alabama and Gulf. This consistent and disciplined investment strategy underpins our confidence in achieving long-term 5% to 7% adjusted EPS growth. I'll now turn the call over to Adam for a financial review and update on guidance and outlook. Adam? Thanks, Scott, and good morning, everyone. I'll begin with our quarterly results, which are detailed on pages 7 and 8 of our presentation. For the first quarter, we reported adjusted earnings of $108 million, or $1.77 per share, compared to $81 million, or $1.34 per share a year ago. Breaking down earnings by business segment, gas utilities earned $104 million, up over 33%, or $26 million from last year, driven by the new rates in Missouri and higher margin under the RSE in Alabama. These benefits were partially offset by the lower volumetric margin in both Missouri and Alabama, along with higher O&M depreciation and interest expense. Gas marketing earned $4.5 million, an increase of $2.3 million due to increased portfolio optimization opportunities. Midstream delivered earnings of $12.7 million, up almost $1 million from last year, driven by additional capacity at Spire Storage, partially offset by higher depreciation and interest expense. And finally, other corporate costs were an adjusted loss of $12.7 million, approximately $2 million higher than the prior year. This reflects higher corporate costs and slightly higher interest expense in the current year. Turning now to our growth outlook on page 9. As Scott mentioned, we are reaffirming our 5% to 7% long-term adjusted EPS growth target, supported by strong rate-based growth across Missouri and Tennessee, steady regulated equity growth in Alabama and Gulf, and our 10-year, $11.2 billion CapEx plan. We remain committed to executing on our strategy and are affirming our 2026 adjusted earnings guidance range of $5.25 to $5.45 per share. As a reminder, this range excludes the results of the pending acquisition of the Piedmont Tennessee business and includes a full year of earnings related to our natural gas storage facilities. We are also affirming our 2027 adjusted earnings guidance range of $5.65 to $5.85 per share, which reflects a full year of expected earnings contribution from the Piedmont Tennessee business and excludes earnings from Spire Storage. The adjusted earnings range for corporate and other has been updated to a range of -$40 million to -$46 million, lowering the midpoint $9 million to reflect the interest expense related to the incremental debt to redeem the Spire Inc. preferred stock. Fiscal 2026 preferred dividends impacting EPS are expected to be lower by $9 million. I would like to note that our merger of the STL and MoGas pipelines was completed January 1, 2026. It will operate as the Spire MoGas pipeline. Moving now to slide 10 for an update on our base business financing plan, excluding Tennessee. We expect equity needs of $0-$50 million per year and will continue to rely on long-term debt to support refinancing and capital requirements. Our recent base business financing activity includes $200 million of first mortgage bonds issued at Spire Missouri in October 2025, and $200 million of 6 3/8% junior subordinated notes issued in January 2026. We intend to use the proceeds from these JSNs, along with other funds, to redeem all outstanding shares of Spire Inc.'s preferred stock. Our projected long-term debt issuances for 2026 has increased by $250 million, driven by the decision to redeem the preferred shares. As always, we remain focused on maintaining our balance sheet strength and flexibility. We continue to target FFO to debt of 15%-16%. With that, let me turn it back over to you, Scott. Thanks, Adam. To close, our business priorities for the year remain consistent with our commentary over the past several quarters. Safely and reliably deliver natural gas service, execute our capital plan efficiently, and recover capital in a timely manner, maintain a strong focus on customer affordability through disciplined cost management, achieve constructive regulatory outcomes, including preparing for a future test year Missouri rate case, and successfully financing and closing the Tennessee acquisition while ensuring a seamless integration. Thank you for joining us today. We appreciate your continued support, and we are now ready to take your questions. Thank you. To ask a question, you may press Star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. The first question comes from Gabe Moreen with Mizuho. Please go ahead. Hey, good morning, team. Maybe if I can start off in terms of some of the volatility we've seen here in gas markets in January. Scott, you mentioned how well the utilities performed operationally, but can you talk about maybe how marketing was positioned during the month and whether it might have been able to capture some of that volatility? Hey, Gabe, good morning. Yeah, I mean, as we mentioned, feel really good about how all of our systems performed across the enterprise during the month. It's a little early to describe them, you know, quantitatively at this time, so but one thing we do know, we met all of our customer obligations. The market itself performed very well both from the supply side, but even just the way the markets worked during those times. Everything was fluid and liquid during that time, so it felt good about how that event took place. So, look forward to talking more about that on the second quarter call. Got it, Scott, and I know you say you don't want to talk about things too much quantitatively, but can you also just talk about how, you know, your utility's hedging strategy may have played out in terms of protecting customers from some of the volatility and whether you're satisfied with how that worked out as well? Yeah. Simple answer is yes, satisfied. As you know, on our utility purchasing strategy, particularly in both Missouri and Alabama, we have the ability to operate effectively our own AMA for the utilities, and those performed as expected during this time. So our customers were protected and benefited from that activity. Great. That's all I have. Thanks, Scott. Yep. Thanks, Gabe. Thanks, Gabe. The next question comes from David Arcaro with Morgan Stanley. Please go ahead. Oh, hey, good morning. Thanks so much. I was wondering if you could give a maybe a little bit more color on the storage asset sales process. But, you know, I guess any feedback that you got from the market on interest and appetite for those assets, you know, could you maybe lay out the timing, and how that might line up? Like, could a full transaction get done, you know, before the close? Or kind of how, what are the backup plans there? Thanks so much. Yeah, sure, David. Good morning. You know, as we mentioned in our prepared remarks, the evaluation process has gone a little longer than we initially anticipated. You know, our focus remains making sure we get the, the right value for each of the assets. You know, maybe just a comment about the assets themselves. Coming out of January, in particular, from a operational perspective, they performed very well, met all of our cost-customer obligations. We'll have demand for those services, for those assets on a going-forward basis. So feel good about that, feel good about the process, how it's unfolding at this time, but just making sure we're spending the time, looking at the opportunities that are in front of us, and our focus continues to remain on prioritizing the utilities and simplifying our portfolio, as we go through this process. I'll let Adam maybe comment a little bit more on timing, and maybe from a financing standpoint. Adam? Yeah. Hey, David, it's Adam. We do expect to make an announcement on the storage evaluation a little bit later this quarter. To your point, as far as whether something is transacted prior to the close of Tennessee, we are fully covered with a bridge loan, and if we needed to tap that for a short period of time, that we would be able to do that. But you know, we are committed to making announcement here later this quarter prior to the close of Tennessee. Yeah. Got it. Thanks. And it just... Was it in response to, was it harder to, you know, find interest or sell the assets together? Or were valuations different from what you had expected, going into that process? No. Yeah, David, we've had very good interest in them. Again, these assets can be looked at in combination, or they can be looked at separately. And so what we're wanting to do is make sure that full process plays out. Got it. Okay. Thanks. That is helpful. Then maybe a separate topic. I was just wondering if you could touch on, maybe more broadly, economic development efforts. You know, are you seeing opportunities for, you know, large loads or large generation facilities coming into your service territories? Anything on the larger side that would boost growth in the pipeline? Yeah, sure, David, on the particularly on large loads as it relates to the pipeline, you know, the opportunity there for us is to serve generation needs, either as they convert coal to gas or as new gas plants come online. We're active in talking to different parties, but don't have anything to announce. We'll announce when the time is right. ... Okay, great. Thank you so much. The next question comes from Julien Dumoulin-Smith with Jefferies. Please go ahead. Hi, team. This is Spark on for Julien. Congrats on the solid quarter. Appreciate the color on the storage transaction and marketing segment. Maybe just a quick follow-up. Just how should we think about the timing for equity issuance related to the Tennessee acquisition? Yeah, so Spark, maybe to walk through kind of where we're at, where we've come from and where we're at now, and then expectations around that. So, in November, raised $900 million in the JSN market, and then followed that up with $825 million in for the operating company, you know, from potential sale of businesses. We're looking to get that announcement made on what that looks like. You know, that would indicate something if we weren't needing to go to the equity market, that would be sometime after the next call in May or June. Understood. Appreciate the color. Yep. Thanks, Spark. The next question comes from Ross Fowler with Bank of America. Please go ahead. Morning, Scott. Morning, Adam. How are you? Maybe- Morning, Ross. Taking a step back, bigger, bigger picture question. Obviously, you know, we're on track to close Tennessee by the end of the first quarter. Or, I mean, excuse me, we're on track to get a storage asset sale announced by the end of the first quarter. You're moving to Tennessee close, pending approval of the Tennessee Commission. So once we get through both of those things, how do you... You know, you talked about prioritizing utilities, simplifying the business model. How do you think about your scale of the company post those two transactions, should they be executed and completed? And how do you think about, you know, strategically, how you would think about adding utility to that portfolio or are there things you could take out of the portfolio? Just general thoughts around it. Yeah. Thanks, Ross. You know, our primary focus right now is closing the transaction and integrating Tennessee and making sure that we have a seamless transition for our customers there. And so our plate is really full right now with regard to executing on that priority, and so we want to keep that a priority. So at this time, that's, that's what we're focused on, is doing that. From a scale perspective, you know, this has some benefit for customers ultimately, because we'll be able to spread our shared services costs over a bigger base, is what we'll do, as well. So, you know, that scale benefit is, is a, a benefit for our customers and for the company as well. But that's what we're focused on right now is executing on our plan. Then how do you. You mentioned the integration of Tennessee post-close. How do you think about, you know, there's probably system stuff you have to do, operational stuff you have to do. I mean, it's not contiguous, but there's still all of that sort of back office stuff you have to do. As you mentioned, shared services. How do you think about the timeline of, you know, you know, on a piece of paper, it never looks like a lot of work, but I imagine it's a ton of work. How do you think about the timeline of getting that accomplished and getting through that integration? Yeah, I know the 100-plus people on our side that are working on that really appreciate that comment, Ross, as to the amount of effort that's required, as well. So a lot of work takes place, post-close. As you know, we do have integration teams working very closely with Duke, both on the separation of the assets, but also on the continued operation of them, as we'll have transition services for a period of 18 months. So our job will be to work to make sure that both for employees and customers, as we transition those services and bring them under the Spire umbrella of serving them, that we do that in a way that is methodical, but also brings value to the organization as well. And so when we do that, a lot of plans have been put in place, and once we close, we'll be doing the really hard work of pulling this off. The good news is this is a company, Spire is a company that has a long history of doing this, and has a lot of well-developed muscles regarding this. So I feel very confident in our ability to do this. All right. Thank you very much. Thanks, Ross. The next question comes from Paul Fremont with Ladenburg. Please go ahead. Thank you. Congratulations on a strong quarter. I guess my first question relates to storage. I guess in the past, you, you've expressed optimism of being able to complete the review with a sale. Do you still have that optimism at this point in time, that at the end of the month you can achieve a sale, or the end of the quarter, I mean? Yeah, Paul, this is Scott, and good morning. Yeah, we... Look, we've had strong interest in these assets, and, as I've mentioned earlier, our desire at this time is to make sure that we're getting good value for both or each. And so that's what's causing the process to perhaps go a little longer than we had anticipated initially, but feel good about where we are in the stage of the process at this time. Great. And then when I look at all the financing that you've done, it seems like you've been able to achieve some very reasonable rates. And you've gone sort of beyond in terms of potentially achieving savings from the retirement of the preferred. Does that compare favorably to the assumptions that you put out when you gave guidance on the fourth quarter call? Hey, Paul, it's Adam. You know, it's a good question. I would say that we were contemplating the redemption of the preferred in that guidance, so that's it. It's not additive to it. And I think so far in the acquisition financing, we're relatively close to what our expectations were. Good question. Great. Great. Thanks a lot. That's it for me. Thanks. Thanks, Paul. Once again, if you have a question, please press Star, then one. The next question comes from Bill Appicelli with UBS. Please go ahead. Hi, good morning. Good morning, Bill. Just a question on the clarifying that preferred impact, because you guys do show the corporate other side line item getting impacted by about $9 million, but then there's a direct one-to-one offset, right, on the preferred dividend impact, which you don't actually quantify, you know, in the guidance. So net-net EPS is unchanged, right? So even though the cumulative looks like the, you know, earnings, if you add the buckets up, it gets worse, but there's an offset that's not actually shown. Is that the way to think about it? That's right, Bill. Yeah, I think you followed it. Okay. And then, can you just remind us on the regulatory strategy or calendar from here, particularly as it relates to Missouri? You know, just as a, you know, walk us through sort of the timeline of when the next case would be filed and new rates under the new legislation? Yeah. Hey, Bill, on the rate case timing, it'll, the way we have it, at least anticipated right now, is we follow the pattern of our prior case, which is, you know, we'd file it after fiscal year-end, but before Thanksgiving. So look at the October-November timeframe of this year. And then the timeframe of the rate case, the prosecution would follow most likely the same amount of time it took, for this last rate case. And as we've talked to a lot of folks, it's a case of first impression, with being the first, future test year that we would be filing. So we'd want to work through those details with the commission, as we go through this process, as well. But that's what we're looking forward to later this year, and work is already underway in dialogue with commission staff and others, as we prepare to file that, the package under the, under the conditions that they'd like for us to file it. Okay. That's very helpful. Thank you. That's it for me. Thank you, Bill. This concludes the question and answer session. I would like to turn the conference back over to Megan McPhail for any closing remarks. Please go ahead. Thank you for joining us on the call today. We look forward to seeing many of you at conferences in the coming weeks. Have a great day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker 6: Good day, and welcome to Spire's first quarter fiscal 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Megan McPhail, Managing Director, Investor Relations. Please go ahead. Good day, and welcome to Spire's first quarter fiscal 2026 earnings conference call. good day and welcome to spire's first quarter fiscal 2026 earnings conference call All participants will be in listen-only mode. all participants will be in listen-only mode Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. should you need assistance please signal a conference specialist by pressing the star key followed by zero After today's presentation, there will be an opportunity to ask questions. after today's presentation there will be an opportunity to ask questions To ask a question, you may press star, then one on your telephone keypad. to ask a question you may press star then one on your telephone keypad To withdraw your question, please press star, then two. to withdraw your question please press star then two Please note, this event is being recorded. please note this event is being recorded I would now like to turn the conference over to Megan McPhail, Managing Director, Investor Relations. i would now like to turn the conference over to megan mcphail managing director investor relations Please go ahead. please go ahead

Speaker 5: Good morning, and welcome to Spire's fiscal 2026 first quarter earnings call. We issued an earnings news release this morning, and you may access it on our website at spireenergy.com under Newsroom. There's a slide presentation that accompanies our webcast, which can be downloaded from our website. Before we begin, let me cover our safe harbor statement and use of non-GAAP earnings measures. Today's call, including responses to questions, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although our forward-looking statements are based on reasonable assumptions, there are various uncertainties and risk factors that may cause future performance or results to be different from those anticipated. These risks and uncertainties are outlined in our quarterly and annual filings with the SEC. Good morning, and welcome to Spire's fiscal 2026 first quarter earnings call. good morning and welcome to spire's fiscal 2026 first quarter earnings call We issued an earnings news release this morning, and you may access it on our website at spireenergy.com under Newsroom. we issued an earnings news release this morning and you may access it on our website at spireenergy.com under newsroom There's a slide presentation that accompanies our webcast, which can be downloaded from our website. there's a slide presentation that accompanies our webcast which can be downloaded from our website Before we begin, let me cover our safe harbor statement and use of non-GAAP earnings measures. before we begin let me cover our safe harbor statement and use of non-gaap earnings measures Today's call, including responses to questions, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. today's call including responses to questions may contain forward-looking statements within the meaning of the private securities litigation reform act of 1995 Although our forward-looking statements are based on reasonable assumptions, there are various uncertainties and risk factors that may cause future performance or results to be different from those anticipated. although our forward-looking statements are based on reasonable assumptions there are various uncertainties and risk factors that may cause future performance or results to be different from those anticipated These risks and uncertainties are outlined in our quarterly and annual filings with the SEC. these risks and uncertainties are outlined in our quarterly and annual filings with the sec In our comments, we will be discussing non-GAAP measures used by management when evaluating our performance and results of operations. Explanations and reconciliations of these measures to their GAAP counterparts are contained in both our news release and slide presentation. On the call today is Scott Doyle, President and CEO, and Adam Woodard, Executive Vice President and CFO. With that, I will turn the call over to Scott Doyle. Scott? In our comments, we will be discussing non-GAAP measures used by management when evaluating our performance and results of operations. in our comments we will be discussing non-gaap measures used by management when evaluating our performance and results of operations Explanations and reconciliations of these measures to their GAAP counterparts are contained in both our news release and slide presentation. explanations and reconciliations of these measures to their gaap counterparts are contained in both our news release and slide presentation On the call today is Scott Doyle, President and CEO, and Adam Woodard, Executive Vice President and CFO. on the call today is scott doyle president and ceo and adam woodard executive vice president and cfo With that, I will turn the call over to Scott Doyle. with that i will turn the call over to scott doyle Scott? scott

Speaker 9: Good morning, and thank you for joining us. As we begin our fiscal first quarter update, I want to recognize and appreciate the hard work of our employees across every part of our organization during Winter Storm Fern. The recent weather event was an opportunity for us to serve our customers when they needed us most, and I'm very proud of how we responded. With extreme weather impacting all our service territories, our team collaborated closely, making sure homes and businesses stayed safe and warm. According to the American Gas Association, Winter Storm Fern led to some of the highest demand of natural gas in our nation's history. In fact, at the height of the storm, just our Spire utilities delivered natural gas equivalent to 31 gigawatts of electric generation capacity at a much lower cost to customers. Good morning, and thank you for joining us. good morning and thank you for joining us As we begin our fiscal first quarter update, I want to recognize and appreciate the hard work of our employees across every part of our organization during Winter Storm Fern. as we begin our fiscal first quarter update i want to recognize and appreciate the hard work of our employees across every part of our organization during winter storm fern The recent weather event was an opportunity for us to serve our customers when they needed us most, and I'm very proud of how we responded. the recent weather event was an opportunity for us to serve our customers when they needed us most and i'm very proud of how we responded With extreme weather impacting all our service territories, our team collaborated closely, making sure homes and businesses stayed safe and warm. with extreme weather impacting all our service territories our team collaborated closely making sure homes and businesses stayed safe and warm According to the American Gas Association, Winter Storm Fern led to some of the highest demand of natural gas in our nation's history. according to the american gas association winter storm fern led to some of the highest demand of natural gas in our nation's history In fact, at the height of the storm, just our Spire utilities delivered natural gas equivalent to 31 gigawatts of electric generation capacity at a much lower cost to customers. in fact at the height of the storm just our spire utilities delivered natural gas equivalent to 31 gigawatts of electric generation capacity at a much lower cost to customers Despite extreme conditions, natural gas once again distinguished itself, underscoring that direct use of natural gas remains the most reliable and affordable way to heat your home. This morning, we announced adjusted earnings of $1.77 per share, up from $1.34 per share a year ago. The strong year-over-year improvement reflects solid execution in our gas utility business, supported by new rates across all of the utilities. Our marketing and midstream segments also delivered meaningful contributions. Just as we've discussed on prior calls, cost management and customer affordability remain central to our strategy. We continue to pursue efficiencies while investing in system improvements and safety, ensuring we maintain the reliability our customers expect. On the regulatory front, we are executing on our goal to achieve constructive outcomes in all jurisdictions. Despite extreme conditions, natural gas once again distinguished itself, underscoring that direct use of natural gas remains the most reliable and affordable way to heat your home. despite extreme conditions natural gas once again distinguished itself underscoring that direct use of natural gas remains the most reliable and affordable way to heat your home This morning, we announced adjusted earnings of $1.77 per share, up from $1.34 per share a year ago. this morning we announced adjusted earnings of $1.77 per share up from $1.34 per share a year ago The strong year-over-year improvement reflects solid execution in our gas utility business, supported by new rates across all of the utilities. the strong year-over-year improvement reflects solid execution in our gas utility business supported by new rates across all of the utilities Our marketing and midstream segments also delivered meaningful contributions. our marketing and midstream segments also delivered meaningful contributions Just as we've discussed on prior calls, cost management and customer affordability remain central to our strategy. just as we've discussed on prior calls cost management and customer affordability remain central to our strategy We continue to pursue efficiencies while investing in system improvements and safety, ensuring we maintain the reliability our customers expect. we continue to pursue efficiencies while investing in system improvements and safety ensuring we maintain the reliability our customers expect On the regulatory front, we are executing on our goal to achieve constructive outcomes in all jurisdictions. on the regulatory front we are executing on our goal to achieve constructive outcomes in all jurisdictions New Missouri rates became effective in October, and in November, we filed a request for a $30.3 million revenue increase under the Infrastructure System Replacement Surcharge, with rates expected to be effective no later than May. Spire Alabama and Spire Gulf rates under the Rate Stabilization and Equalization mechanism were updated in December, supporting our continued system investment. Looking ahead, we are reaffirming our 2026 adjusted EPS guidance of $5.25 to $5.45 per share. Our 2027 adjusted EPS guidance of $5.65 to $5.85 per share, and our long-term 5% to 7% adjusted EPS growth target. These targets underscore our confidence in the strength of our portfolio and our disciplined approach to capital deployment. New Missouri rates became effective in October, and in November, we filed a request for a $30.3 million revenue increase under the Infrastructure System Replacement Surcharge, with rates expected to be effective no later than May. new missouri rates became effective in october and in november we filed a request for a $30.3 million revenue increase under the infrastructure system replacement surcharge with rates expected to be effective no later than may Spire Alabama and Spire Gulf rates under the Rate Stabilization and Equalization mechanism were updated in December, supporting our continued system investment. spire alabama and spire gulf rates under the rate stabilization and equalization mechanism were updated in december supporting our continued system investment Looking ahead, we are reaffirming our 2026 adjusted EPS guidance of $5.25 to $5.45 per share. looking ahead we are reaffirming our 2026 adjusted eps guidance of $5.25 to $5.45 per share Our 2027 adjusted EPS guidance of $5.65 to $5.85 per share, and our long-term 5% to 7% adjusted EPS growth target. our 2027 adjusted eps guidance of $5.65 to $5.85 per share and our long-term 5% to 7% adjusted eps growth target These targets underscore our confidence in the strength of our portfolio and our disciplined approach to capital deployment. these targets underscore our confidence in the strength of our portfolio and our disciplined approach to capital deployment Our ten-year capital plan remains at $11.2 billion, with a majority targeted toward utility investments. Finally, we remain on track. We remain committed to delivering on our financial and operational goals as we execute our strategy to grow organically, invest in infrastructure, and drive continuous improvement. Turning now to page five for an update on the Tennessee acquisition. We continue to make progress toward closing. The Hart-Scott-Rodino review is complete and approval from the Tennessee Public Utility Commission remains pending. Our financing plan is aligned with maintaining our current credit ratings and includes a balanced mix of debt, equity, and hybrid securities. In November, we issued $900 million of junior subordinated notes of Spire Inc. Following this, in December, we entered into a master note purchase agreement for $825 million of Spire Tennessee senior notes, which will fund at closing. Our ten-year capital plan remains at $11.2 billion, with a majority targeted toward utility investments. our ten-year capital plan remains at $11.2 billion with a majority targeted toward utility investments Finally, we remain on track. finally we remain on track We remain committed to delivering on our financial and operational goals as we execute our strategy to grow organically, invest in infrastructure, and drive continuous improvement. we remain committed to delivering on our financial and operational goals as we execute our strategy to grow organically invest in infrastructure and drive continuous improvement Turning now to page five for an update on the Tennessee acquisition. turning now to page five for an update on the tennessee acquisition We continue to make progress toward closing. we continue to make progress toward closing The Hart-Scott-Rodino review is complete and approval from the Tennessee Public Utility Commission remains pending. the hart-scott-rodino review is complete and approval from the tennessee public utility commission remains pending Our financing plan is aligned with maintaining our current credit ratings and includes a balanced mix of debt, equity, and hybrid securities. our financing plan is aligned with maintaining our current credit ratings and includes a balanced mix of debt equity and hybrid securities In November, we issued $900 million of junior subordinated notes of Spire Inc. Following this, in December, we entered into a master note purchase agreement for $825 million of Spire Tennessee senior notes, which will fund at closing. in november we issued $900 million of junior subordinated notes of spire inc following this in december we entered into a master note purchase agreement for $825 million of spire tennessee senior notes which will fund at closing We continue to expect minimal common equity needs. As we've discussed on previous earnings calls, our evaluation of the potential sale of our natural gas storage assets is ongoing. The timeline for an announcement has extended beyond our initial expectations, reflecting our objective to achieve the right value for each of the assets. We are focused on simplifying our portfolio and expect to provide an update later this quarter ahead of the acquisition close. ... Operationally, our integration planning is well underway, supported by an 18-month transition services agreement designed to ensure seamless continuity for both customers and employees. Moving to page 6. In the quarter, we invested $230 million in capital expenditures, with the majority directed toward our gas utility operations, including system upgrades, infrastructure modernization, and new business connections. We continue to expect minimal common equity needs. we continue to expect minimal common equity needs As we've discussed on previous earnings calls, our evaluation of the potential sale of our natural gas storage assets is ongoing. as we've discussed on previous earnings calls our evaluation of the potential sale of our natural gas storage assets is ongoing The timeline for an announcement has extended beyond our initial expectations, reflecting our objective to achieve the right value for each of the assets. the timeline for an announcement has extended beyond our initial expectations reflecting our objective to achieve the right value for each of the assets We are focused on simplifying our portfolio and expect to provide an update later this quarter ahead of the acquisition close. ... we are focused on simplifying our portfolio and expect to provide an update later this quarter ahead of the acquisition close Operationally, our integration planning is well underway, supported by an 18-month transition services agreement designed to ensure seamless continuity for both customers and employees. operationally our integration planning is well underway supported by an 18-month transition services agreement designed to ensure seamless continuity for both customers and employees Moving to page 6. moving to page 6 In the quarter, we invested $230 million in capital expenditures, with the majority directed toward our gas utility operations, including system upgrades, infrastructure modernization, and new business connections. in the quarter we invested $230 million in capital expenditures with the majority directed toward our gas utility operations including system upgrades infrastructure modernization and new business connections These investments are already delivering value, as reflected in the strong operational performance and reliability of the system through a quarter marked by weather swings from unseasonably warm to well below average temperatures. CapEx was lower year-over-year, driven by the near completion of the Advanced Meter Upgrades in the St. Louis region and the wrap-up of our storage expansion project. We continue to expect 2026 CapEx of $809 million, supported by our ten-year, $11.2 billion capital plan. These investments directly support rate base growth of roughly 7% in Missouri and 7.5% in Tennessee, and 6% regulated equity growth in Alabama and Gulf. This consistent and disciplined investment strategy underpins our confidence in achieving long-term 5% to 7% adjusted EPS growth. These investments are already delivering value, as reflected in the strong operational performance and reliability of the system through a quarter marked by weather swings from unseasonably warm to well below average temperatures. these investments are already delivering value as reflected in the strong operational performance and reliability of the system through a quarter marked by weather swings from unseasonably warm to well below average temperatures CapEx was lower year-over-year, driven by the near completion of the Advanced Meter Upgrades in the St. Louis region and the wrap-up of our storage expansion project. capex was lower year-over-year driven by the near completion of the advanced meter upgrades in the st louis region and the wrap-up of our storage expansion project We continue to expect 2026 CapEx of $809 million, supported by our ten-year, $11.2 billion capital plan. we continue to expect 2026 capex of $809 million supported by our ten-year $11.2 billion capital plan These investments directly support rate base growth of roughly 7% in Missouri and 7.5% in Tennessee, and 6% regulated equity growth in Alabama and Gulf. these investments directly support rate base growth of roughly 7% in missouri and 7.5% in tennessee and 6% regulated equity growth in alabama and gulf This consistent and disciplined investment strategy underpins our confidence in achieving long-term 5% to 7% adjusted EPS growth. this consistent and disciplined investment strategy underpins our confidence in achieving long-term 5% to 7% adjusted eps growth I'll now turn the call over to Adam for a financial review and update on guidance and outlook. Adam? I'll now turn the call over to Adam for a financial review and update on guidance and outlook. i'll now turn the call over to adam for a financial review and update on guidance and outlook Adam? adam

Speaker 1: Thanks, Scott, and good morning, everyone. I'll begin with our quarterly results, which are detailed on pages 7 and 8 of our presentation. For the first quarter, we reported adjusted earnings of $108 million, or $1.77 per share, compared to $81 million, or $1.34 per share a year ago. Breaking down earnings by business segment, gas utilities earned $104 million, up over 33%, or $26 million from last year, driven by the new rates in Missouri and higher margin under the RSE in Alabama. These benefits were partially offset by the lower volumetric margin in both Missouri and Alabama, along with higher O&M depreciation and interest expense. Gas marketing earned $4.5 million, an increase of $2.3 million due to increased portfolio optimization opportunities. Thanks, Scott, and good morning, everyone. thanks scott and good morning everyone I'll begin with our quarterly results, which are detailed on pages 7 and 8 of our presentation. i'll begin with our quarterly results which are detailed on pages 7 and 8 of our presentation For the first quarter, we reported adjusted earnings of $108 million, or $1.77 per share, compared to $81 million, or $1.34 per share a year ago. for the first quarter we reported adjusted earnings of $108 million or $1.77 per share compared to $81 million or $1.34 per share a year ago Breaking down earnings by business segment, gas utilities earned $104 million, up over 33%, or $26 million from last year, driven by the new rates in Missouri and higher margin under the RSE in Alabama. breaking down earnings by business segment gas utilities earned $104 million up over 33% or $26 million from last year driven by the new rates in missouri and higher margin under the rse in alabama These benefits were partially offset by the lower volumetric margin in both Missouri and Alabama, along with higher O&M depreciation and interest expense. these benefits were partially offset by the lower volumetric margin in both missouri and alabama along with higher o&m depreciation and interest expense Gas marketing earned $4.5 million, an increase of $2.3 million due to increased portfolio optimization opportunities. gas marketing earned $4.5 million an increase of $2.3 million due to increased portfolio optimization opportunities Midstream delivered earnings of $12.7 million, up almost $1 million from last year, driven by additional capacity at Spire Storage, partially offset by higher depreciation and interest expense. And finally, other corporate costs were an adjusted loss of $12.7 million, approximately $2 million higher than the prior year. This reflects higher corporate costs and slightly higher interest expense in the current year. Turning now to our growth outlook on page 9. As Scott mentioned, we are reaffirming our 5% to 7% long-term adjusted EPS growth target, supported by strong rate-based growth across Missouri and Tennessee, steady regulated equity growth in Alabama and Gulf, and our 10-year, $11.2 billion CapEx plan. Midstream delivered earnings of $12.7 million, up almost $1 million from last year, driven by additional capacity at Spire Storage, partially offset by higher depreciation and interest expense. midstream delivered earnings of $12.7 million up almost $1 million from last year driven by additional capacity at spire storage partially offset by higher depreciation and interest expense And finally, other corporate costs were an adjusted loss of $12.7 million, approximately $2 million higher than the prior year. and finally other corporate costs were an adjusted loss of $12.7 million approximately $2 million higher than the prior year This reflects higher corporate costs and slightly higher interest expense in the current year. this reflects higher corporate costs and slightly higher interest expense in the current year Turning now to our growth outlook on page 9. turning now to our growth outlook on page 9 As Scott mentioned, we are reaffirming our 5% to 7% long-term adjusted EPS growth target, supported by strong rate-based growth across Missouri and Tennessee, steady regulated equity growth in Alabama and Gulf, and our 10-year, $11.2 billion CapEx plan. as scott mentioned we are reaffirming our 5% to 7% long-term adjusted eps growth target supported by strong rate-based growth across missouri and tennessee steady regulated equity growth in alabama and gulf and our 10-year $11.2 billion capex plan We remain committed to executing on our strategy and are affirming our 2026 adjusted earnings guidance range of $5.25 to $5.45 per share. As a reminder, this range excludes the results of the pending acquisition of the Piedmont Tennessee business and includes a full year of earnings related to our natural gas storage facilities. We are also affirming our 2027 adjusted earnings guidance range of $5.65 to $5.85 per share, which reflects a full year of expected earnings contribution from the Piedmont Tennessee business and excludes earnings from Spire Storage. We remain committed to executing on our strategy and are affirming our 2026 adjusted earnings guidance range of $5.25 to $5.45 per share. we remain committed to executing on our strategy and are affirming our 2026 adjusted earnings guidance range of $5.25 to $5.45 per share As a reminder, this range excludes the results of the pending acquisition of the Piedmont Tennessee business and includes a full year of earnings related to our natural gas storage facilities. as a reminder this range excludes the results of the pending acquisition of the piedmont tennessee business and includes a full year of earnings related to our natural gas storage facilities We are also affirming our 2027 adjusted earnings guidance range of $5.65 to $5.85 per share, which reflects a full year of expected earnings contribution from the Piedmont Tennessee business and excludes earnings from Spire Storage. we are also affirming our 2027 adjusted earnings guidance range of $5.65 to $5.85 per share which reflects a full year of expected earnings contribution from the piedmont tennessee business and excludes earnings from spire storage The adjusted earnings range for corporate and other has been updated to a range of -$40 million to -$46 million, lowering the midpoint $9 million to reflect the interest expense related to the incremental debt to redeem the Spire Inc. preferred stock. Fiscal 2026 preferred dividends impacting EPS are expected to be lower by $9 million. I would like to note that our merger of the STL and MoGas pipelines was completed January 1, 2026. It will operate as the Spire MoGas pipeline. Moving now to slide 10 for an update on our base business financing plan, excluding Tennessee. We expect equity needs of $0-$50 million per year and will continue to rely on long-term debt to support refinancing and capital requirements. The adjusted earnings range for corporate and other has been updated to a range of -$40 million to -$46 million, lowering the midpoint $9 million to reflect the interest expense related to the incremental debt to redeem the Spire Inc. preferred stock. the adjusted earnings range for corporate and other has been updated to a range of -$40 million to -$46 million lowering the midpoint $9 million to reflect the interest expense related to the incremental debt to redeem the spire inc preferred stock Fiscal 2026 preferred dividends impacting EPS are expected to be lower by $9 million. fiscal 2026 preferred dividends impacting eps are expected to be lower by $9 million I would like to note that our merger of the STL and MoGas pipelines was completed January 1, 2026. i would like to note that our merger of the stl and mogas pipelines was completed january 1 2026 It will operate as the Spire MoGas pipeline. it will operate as the spire mogas pipeline Moving now to slide 10 for an update on our base business financing plan, excluding Tennessee. moving now to slide 10 for an update on our base business financing plan excluding tennessee We expect equity needs of $0-$50 million per year and will continue to rely on long-term debt to support refinancing and capital requirements. we expect equity needs of $0-$50 million per year and will continue to rely on long-term debt to support refinancing and capital requirements Our recent base business financing activity includes $200 million of first mortgage bonds issued at Spire Missouri in October 2025, and $200 million of 6 3/8% junior subordinated notes issued in January 2026. We intend to use the proceeds from these JSNs, along with other funds, to redeem all outstanding shares of Spire Inc.'s preferred stock. Our projected long-term debt issuances for 2026 has increased by $250 million, driven by the decision to redeem the preferred shares. As always, we remain focused on maintaining our balance sheet strength and flexibility. We continue to target FFO to debt of 15%-16%. With that, let me turn it back over to you, Scott. Our recent base business financing activity includes $200 million of first mortgage bonds issued at Spire Missouri in October 2025, and $200 million of 6 3/8% junior subordinated notes issued in January 2026. our recent base business financing activity includes $200 million of first mortgage bonds issued at spire missouri in october 2025 and $200 million of 6 3/8% junior subordinated notes issued in january 2026 We intend to use the proceeds from these JSNs, along with other funds, to redeem all outstanding shares of Spire Inc.'s preferred stock. we intend to use the proceeds from these jsns along with other funds to redeem all outstanding shares of spire inc.'s preferred stock Our projected long-term debt issuances for 2026 has increased by $250 million, driven by the decision to redeem the preferred shares. our projected long-term debt issuances for 2026 has increased by $250 million driven by the decision to redeem the preferred shares As always, we remain focused on maintaining our balance sheet strength and flexibility. as always we remain focused on maintaining our balance sheet strength and flexibility We continue to target FFO to debt of 15%-16%. we continue to target ffo to debt of 15%-16% With that, let me turn it back over to you, Scott. with that let me turn it back over to you scott

Speaker 9: Thanks, Adam. To close, our business priorities for the year remain consistent with our commentary over the past several quarters. Safely and reliably deliver natural gas service, execute our capital plan efficiently, and recover capital in a timely manner, maintain a strong focus on customer affordability through disciplined cost management, achieve constructive regulatory outcomes, including preparing for a future test year Missouri rate case, and successfully financing and closing the Tennessee acquisition while ensuring a seamless integration. Thank you for joining us today. We appreciate your continued support, and we are now ready to take your questions. Thanks, Adam. thanks adam To close, our business priorities for the year remain consistent with our commentary over the past several quarters. to close our business priorities for the year remain consistent with our commentary over the past several quarters Safely and reliably deliver natural gas service, execute our capital plan efficiently, and recover capital in a timely manner, maintain a strong focus on customer affordability through disciplined cost management, achieve constructive regulatory outcomes, including preparing for a future test year Missouri rate case, and successfully financing and closing the Tennessee acquisition while ensuring a seamless integration. safely and reliably deliver natural gas service execute our capital plan efficiently and recover capital in a timely manner maintain a strong focus on customer affordability through disciplined cost management achieve constructive regulatory outcomes including preparing for a future test year missouri rate case and successfully financing and closing the tennessee acquisition while ensuring a seamless integration Thank you for joining us today. thank you for joining us today We appreciate your continued support, and we are now ready to take your questions. we appreciate your continued support and we are now ready to take your questions

Speaker 6: Thank you. To ask a question, you may press Star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. The first question comes from Gabe Moreen with Mizuho. Please go ahead. Thank you. thank you To ask a question, you may press Star, then one on your telephone keypad. to ask a question you may press star then one on your telephone keypad If you're using a speakerphone, please pick up your handset before pressing the keys. if you're using a speakerphone please pick up your handset before pressing the keys If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. if at any time your question has been addressed and you would like to withdraw your question please press star then two The first question comes from Gabe Moreen with Mizuho. the first question comes from gabe moreen with mizuho Please go ahead. please go ahead

Speaker 4: Hey, good morning, team. Maybe if I can start off in terms of some of the volatility we've seen here in gas markets in January. Scott, you mentioned how well the utilities performed operationally, but can you talk about maybe how marketing was positioned during the month and whether it might have been able to capture some of that volatility? Hey, good morning, team. hey good morning team Maybe if I can start off in terms of some of the volatility we've seen here in gas markets in January. maybe if i can start off in terms of some of the volatility we've seen here in gas markets in january Scott, you mentioned how well the utilities performed operationally, but can you talk about maybe how marketing was positioned during the month and whether it might have been able to capture some of that volatility? scott you mentioned how well the utilities performed operationally but can you talk about maybe how marketing was positioned during the month and whether it might have been able to capture some of that volatility

Speaker 9: Hey, Gabe, good morning. Yeah, I mean, as we mentioned, feel really good about how all of our systems performed across the enterprise during the month. It's a little early to describe them, you know, quantitatively at this time, so but one thing we do know, we met all of our customer obligations. The market itself performed very well both from the supply side, but even just the way the markets worked during those times. Everything was fluid and liquid during that time, so it felt good about how that event took place. So, look forward to talking more about that on the second quarter call. Hey, Gabe, good morning. hey gabe good morning Yeah, I mean, as we mentioned, feel really good about how all of our systems performed across the enterprise during the month. yeah i mean as we mentioned feel really good about how all of our systems performed across the enterprise during the month It's a little early to describe them, you know, quantitatively at this time, so but one thing we do know, we met all of our customer obligations. it's a little early to describe them you know quantitatively at this time so but one thing we do know we met all of our customer obligations The market itself performed very well both from the supply side, but even just the way the markets worked during those times. the market itself performed very well both from the supply side but even just the way the markets worked during those times Everything was fluid and liquid during that time, so it felt good about how that event took place. everything was fluid and liquid during that time so it felt good about how that event took place So, look forward to talking more about that on the second quarter call. so look forward to talking more about that on the second quarter call

Speaker 4: Got it, Scott, and I know you say you don't want to talk about things too much quantitatively, but can you also just talk about how, you know, your utility's hedging strategy may have played out in terms of protecting customers from some of the volatility and whether you're satisfied with how that worked out as well? Got it, Scott, and I know you say you don't want to talk about things too much quantitatively, but can you also just talk about how, you know, your utility's hedging strategy may have played out in terms of protecting customers from some of the volatility and whether you're satisfied with how that worked out as well? got it scott and i know you say you don't want to talk about things too much quantitatively but can you also just talk about how you know your utility's hedging strategy may have played out in terms of protecting customers from some of the volatility and whether you're satisfied with how that worked out as well

Speaker 9: Yeah. Simple answer is yes, satisfied. As you know, on our utility purchasing strategy, particularly in both Missouri and Alabama, we have the ability to operate effectively our own AMA for the utilities, and those performed as expected during this time. So our customers were protected and benefited from that activity. Yeah. yeah Simple answer is yes, satisfied. simple answer is yes satisfied As you know, on our utility purchasing strategy, particularly in both Missouri and Alabama, we have the ability to operate effectively our own AMA for the utilities, and those performed as expected during this time. as you know on our utility purchasing strategy particularly in both missouri and alabama we have the ability to operate effectively our own ama for the utilities and those performed as expected during this time So our customers were protected and benefited from that activity. so our customers were protected and benefited from that activity

Speaker 4: Great. That's all I have. Thanks, Scott. Great. great That's all I have. that's all i have Thanks, Scott. thanks scott

Speaker 9: Yep. Thanks, Gabe. Yep. yep Thanks, Gabe. thanks gabe

Speaker 1: Thanks, Gabe. Thanks, Gabe. thanks gabe

Speaker 6: The next question comes from David Arcaro with Morgan Stanley. Please go ahead. The next question comes from David Arcaro with Morgan Stanley. the next question comes from david arcaro with morgan stanley Please go ahead. please go ahead

Speaker 3: Oh, hey, good morning. Thanks so much. I was wondering if you could give a maybe a little bit more color on the storage asset sales process. But, you know, I guess any feedback that you got from the market on interest and appetite for those assets, you know, could you maybe lay out the timing, and how that might line up? Like, could a full transaction get done, you know, before the close? Or kind of how, what are the backup plans there? Thanks so much. Oh, hey, good morning. oh hey good morning Thanks so much. thanks so much I was wondering if you could give a maybe a little bit more color on the storage asset sales process. i was wondering if you could give a maybe a little bit more color on the storage asset sales process But, you know, I guess any feedback that you got from the market on interest and appetite for those assets, you know, could you maybe lay out the timing, and how that might line up? but you know i guess any feedback that you got from the market on interest and appetite for those assets you know could you maybe lay out the timing and how that might line up Like, could a full transaction get done, you know, before the close? like could a full transaction get done you know before the close Or kind of how, what are the backup plans there? or kind of how what are the backup plans there Thanks so much. thanks so much

Speaker 9: Yeah, sure, David. Good morning. You know, as we mentioned in our prepared remarks, the evaluation process has gone a little longer than we initially anticipated. You know, our focus remains making sure we get the, the right value for each of the assets. You know, maybe just a comment about the assets themselves. Coming out of January, in particular, from a operational perspective, they performed very well, met all of our cost-customer obligations. We'll have demand for those services, for those assets on a going-forward basis. Yeah, sure, David. yeah sure david Good morning. good morning You know, as we mentioned in our prepared remarks, the evaluation process has gone a little longer than we initially anticipated. you know as we mentioned in our prepared remarks the evaluation process has gone a little longer than we initially anticipated You know, our focus remains making sure we get the, the right value for each of the assets. you know our focus remains making sure we get the the right value for each of the assets You know, maybe just a comment about the assets themselves. you know maybe just a comment about the assets themselves Coming out of January, in particular, from a operational perspective, they performed very well, met all of our cost-customer obligations. coming out of january in particular from a operational perspective they performed very well met all of our cost-customer obligations We'll have demand for those services, for those assets on a going-forward basis. we'll have demand for those services for those assets on a going-forward basis So feel good about that, feel good about the process, how it's unfolding at this time, but just making sure we're spending the time, looking at the opportunities that are in front of us, and our focus continues to remain on prioritizing the utilities and simplifying our portfolio, as we go through this process. I'll let Adam maybe comment a little bit more on timing, and maybe from a financing standpoint. Adam? So feel good about that, feel good about the process, how it's unfolding at this time, but just making sure we're spending the time, looking at the opportunities that are in front of us, and our focus continues to remain on prioritizing the utilities and simplifying our portfolio, as we go through this process. so feel good about that feel good about the process how it's unfolding at this time but just making sure we're spending the time looking at the opportunities that are in front of us and our focus continues to remain on prioritizing the utilities and simplifying our portfolio as we go through this process I'll let Adam maybe comment a little bit more on timing, and maybe from a financing standpoint. i'll let adam maybe comment a little bit more on timing and maybe from a financing standpoint Adam? adam

Speaker 1: Yeah. Hey, David, it's Adam. We do expect to make an announcement on the storage evaluation a little bit later this quarter. To your point, as far as whether something is transacted prior to the close of Tennessee, we are fully covered with a bridge loan, and if we needed to tap that for a short period of time, that we would be able to do that. But you know, we are committed to making announcement here later this quarter prior to the close of Tennessee. Yeah. yeah Hey, David, it's Adam. hey david it's adam We do expect to make an announcement on the storage evaluation a little bit later this quarter. we do expect to make an announcement on the storage evaluation a little bit later this quarter To your point, as far as whether something is transacted prior to the close of Tennessee, we are fully covered with a bridge loan, and if we needed to tap that for a short period of time, that we would be able to do that. to your point as far as whether something is transacted prior to the close of tennessee we are fully covered with a bridge loan and if we needed to tap that for a short period of time that we would be able to do that But you know, we are committed to making announcement here later this quarter prior to the close of Tennessee. but you know we are committed to making announcement here later this quarter prior to the close of tennessee

Speaker 3: Yeah. Got it. Thanks. And it just... Was it in response to, was it harder to, you know, find interest or sell the assets together? Or were valuations different from what you had expected, going into that process? Yeah. yeah Got it. got it Thanks. thanks And it just... and it just Was it in response to, was it harder to, you know, find interest or sell the assets together? was it in response to was it harder to you know find interest or sell the assets together Or were valuations different from what you had expected, going into that process? or were valuations different from what you had expected going into that process

Speaker 9: No. Yeah, David, we've had very good interest in them. Again, these assets can be looked at in combination, or they can be looked at separately. And so what we're wanting to do is make sure that full process plays out. No. no Yeah, David, we've had very good interest in them. yeah david we've had very good interest in them Again, these assets can be looked at in combination, or they can be looked at separately. again these assets can be looked at in combination or they can be looked at separately And so what we're wanting to do is make sure that full process plays out. and so what we're wanting to do is make sure that full process plays out

Speaker 3: Got it. Okay. Thanks. That is helpful. Then maybe a separate topic. I was just wondering if you could touch on, maybe more broadly, economic development efforts. You know, are you seeing opportunities for, you know, large loads or large generation facilities coming into your service territories? Anything on the larger side that would boost growth in the pipeline? Got it. got it Okay. okay Thanks. thanks That is helpful. that is helpful Then maybe a separate topic. then maybe a separate topic I was just wondering if you could touch on, maybe more broadly, economic development efforts. i was just wondering if you could touch on maybe more broadly economic development efforts You know, are you seeing opportunities for, you know, large loads or large generation facilities coming into your service territories? you know are you seeing opportunities for you know large loads or large generation facilities coming into your service territories Anything on the larger side that would boost growth in the pipeline? anything on the larger side that would boost growth in the pipeline

Speaker 9: Yeah, sure, David, on the particularly on large loads as it relates to the pipeline, you know, the opportunity there for us is to serve generation needs, either as they convert coal to gas or as new gas plants come online. We're active in talking to different parties, but don't have anything to announce. We'll announce when the time is right. Yeah, sure, David, on the particularly on large loads as it relates to the pipeline, you know, the opportunity there for us is to serve generation needs, either as they convert coal to gas or as new gas plants come online. yeah sure david on the particularly on large loads as it relates to the pipeline you know the opportunity there for us is to serve generation needs either as they convert coal to gas or as new gas plants come online We're active in talking to different parties, but don't have anything to announce. we're active in talking to different parties but don't have anything to announce We'll announce when the time is right. we'll announce when the time is right

Speaker 3: ... Okay, great. Thank you so much. ... Okay, great. okay great Thank you so much. thank you so much

Speaker 6: The next question comes from Julien Dumoulin-Smith with Jefferies. Please go ahead. The next question comes from Julien Dumoulin-Smith with Jefferies. the next question comes from julien dumoulin-smith with jefferies Please go ahead. please go ahead

Speaker 10: Hi, team. This is Spark on for Julien. Congrats on the solid quarter. Appreciate the color on the storage transaction and marketing segment. Maybe just a quick follow-up. Just how should we think about the timing for equity issuance related to the Tennessee acquisition? Hi, team. hi team This is Spark on for Julien. this is spark on for julien Congrats on the solid quarter. congrats on the solid quarter Appreciate the color on the storage transaction and marketing segment. appreciate the color on the storage transaction and marketing segment Maybe just a quick follow-up. maybe just a quick follow-up Just how should we think about the timing for equity issuance related to the Tennessee acquisition? just how should we think about the timing for equity issuance related to the tennessee acquisition

Speaker 9: Yeah, so Spark, maybe to walk through kind of where we're at, where we've come from and where we're at now, and then expectations around that. So, in November, raised $900 million in the JSN market, and then followed that up with $825 million in for the operating company, you know, from potential sale of businesses. We're looking to get that announcement made on what that looks like. You know, that would indicate something if we weren't needing to go to the equity market, that would be sometime after the next call in May or June. Yeah, so Spark, maybe to walk through kind of where we're at, where we've come from and where we're at now, and then expectations around that. yeah so spark maybe to walk through kind of where we're at where we've come from and where we're at now and then expectations around that So, in November, raised $900 million in the JSN market, and then followed that up with $825 million in for the operating company, you know, from potential sale of businesses. so in november raised $900 million in the jsn market and then followed that up with $825 million in for the operating company you know from potential sale of businesses We're looking to get that announcement made on what that looks like. we're looking to get that announcement made on what that looks like You know, that would indicate something if we weren't needing to go to the equity market, that would be sometime after the next call in May or June. you know that would indicate something if we weren't needing to go to the equity market that would be sometime after the next call in may or june

Speaker 10: Understood. Appreciate the color. Understood. understood Appreciate the color. appreciate the color

Speaker 9: Yep. Thanks, Spark. Yep. yep Thanks, Spark. thanks spark

Speaker 6: The next question comes from Ross Fowler with Bank of America. Please go ahead. The next question comes from Ross Fowler with Bank of America. the next question comes from ross fowler with bank of america Please go ahead. please go ahead

Speaker 8: Morning, Scott. Morning, Adam. How are you? Maybe- Morning, Scott. morning scott Morning, Adam. morning adam How are you? how are you Maybe- maybe-

Speaker 9: Morning, Ross. Morning, Ross. morning ross

Speaker 8: Taking a step back, bigger, bigger picture question. Obviously, you know, we're on track to close Tennessee by the end of the first quarter. Or, I mean, excuse me, we're on track to get a storage asset sale announced by the end of the first quarter. You're moving to Tennessee close, pending approval of the Tennessee Commission. So once we get through both of those things, how do you... You know, you talked about prioritizing utilities, simplifying the business model. How do you think about your scale of the company post those two transactions, should they be executed and completed? And how do you think about, you know, strategically, how you would think about adding utility to that portfolio or are there things you could take out of the portfolio? Just general thoughts around it. Taking a step back, bigger, bigger picture question. taking a step back bigger bigger picture question Obviously, you know, we're on track to close Tennessee by the end of the first quarter. obviously you know we're on track to close tennessee by the end of the first quarter Or, I mean, excuse me, we're on track to get a storage asset sale announced by the end of the first quarter. or i mean excuse me we're on track to get a storage asset sale announced by the end of the first quarter You're moving to Tennessee close, pending approval of the Tennessee Commission. you're moving to tennessee close pending approval of the tennessee commission So once we get through both of those things, how do you... so once we get through both of those things how do you You know, you talked about prioritizing utilities, simplifying the business model. you know you talked about prioritizing utilities simplifying the business model How do you think about your scale of the company post those two transactions, should they be executed and completed? how do you think about your scale of the company post those two transactions should they be executed and completed And how do you think about, you know, strategically, how you would think about adding utility to that portfolio or are there things you could take out of the portfolio? and how do you think about you know strategically how you would think about adding utility to that portfolio or are there things you could take out of the portfolio Just general thoughts around it. just general thoughts around it

Speaker 9: Yeah. Thanks, Ross. You know, our primary focus right now is closing the transaction and integrating Tennessee and making sure that we have a seamless transition for our customers there. And so our plate is really full right now with regard to executing on that priority, and so we want to keep that a priority. So at this time, that's, that's what we're focused on, is doing that. From a scale perspective, you know, this has some benefit for customers ultimately, because we'll be able to spread our shared services costs over a bigger base, is what we'll do, as well. So, you know, that scale benefit is, is a, a benefit for our customers and for the company as well. But that's what we're focused on right now is executing on our plan. Yeah. yeah Thanks, Ross. thanks ross You know, our primary focus right now is closing the transaction and integrating Tennessee and making sure that we have a seamless transition for our customers there. you know our primary focus right now is closing the transaction and integrating tennessee and making sure that we have a seamless transition for our customers there And so our plate is really full right now with regard to executing on that priority, and so we want to keep that a priority. and so our plate is really full right now with regard to executing on that priority and so we want to keep that a priority So at this time, that's, that's what we're focused on, is doing that. so at this time that's that's what we're focused on is doing that From a scale perspective, you know, this has some benefit for customers ultimately, because we'll be able to spread our shared services costs over a bigger base, is what we'll do, as well. from a scale perspective you know this has some benefit for customers ultimately because we'll be able to spread our shared services costs over a bigger base is what we'll do as well So, you know, that scale benefit is, is a, a benefit for our customers and for the company as well. so you know that scale benefit is is a a benefit for our customers and for the company as well But that's what we're focused on right now is executing on our plan. but that's what we're focused on right now is executing on our plan

Speaker 8: Then how do you. You mentioned the integration of Tennessee post-close. How do you think about, you know, there's probably system stuff you have to do, operational stuff you have to do. I mean, it's not contiguous, but there's still all of that sort of back office stuff you have to do. As you mentioned, shared services. How do you think about the timeline of, you know, you know, on a piece of paper, it never looks like a lot of work, but I imagine it's a ton of work. How do you think about the timeline of getting that accomplished and getting through that integration? Then how do you. then how do you you You mentioned the integration of Tennessee post-close. you mentioned the integration of tennessee post-close How do you think about, you know, there's probably system stuff you have to do, operational stuff you have to do. how do you think about you know there's probably system stuff you have to do operational stuff you have to do I mean, it's not contiguous, but there's still all of that sort of back office stuff you have to do. i mean it's not contiguous but there's still all of that sort of back office stuff you have to do As you mentioned, shared services. as you mentioned shared services How do you think about the timeline of, you know, you know, on a piece of paper, it never looks like a lot of work, but I imagine it's a ton of work. how do you think about the timeline of you know you know on a piece of paper it never looks like a lot of work but i imagine it's a ton of work How do you think about the timeline of getting that accomplished and getting through that integration? how do you think about the timeline of getting that accomplished and getting through that integration

Speaker 9: Yeah, I know the 100-plus people on our side that are working on that really appreciate that comment, Ross, as to the amount of effort that's required, as well. So a lot of work takes place, post-close. As you know, we do have integration teams working very closely with Duke, both on the separation of the assets, but also on the continued operation of them, as we'll have transition services for a period of 18 months. So our job will be to work to make sure that both for employees and customers, as we transition those services and bring them under the Spire umbrella of serving them, that we do that in a way that is methodical, but also brings value to the organization as well. Yeah, I know the 100-plus people on our side that are working on that really appreciate that comment, Ross, as to the amount of effort that's required, as well. yeah i know the 100-plus people on our side that are working on that really appreciate that comment ross as to the amount of effort that's required as well So a lot of work takes place, post-close. so a lot of work takes place post-close As you know, we do have integration teams working very closely with Duke, both on the separation of the assets, but also on the continued operation of them, as we'll have transition services for a period of 18 months. as you know we do have integration teams working very closely with duke both on the separation of the assets but also on the continued operation of them as we'll have transition services for a period of 18 months So our job will be to work to make sure that both for employees and customers, as we transition those services and bring them under the Spire umbrella of serving them, that we do that in a way that is methodical, but also brings value to the organization as well. so our job will be to work to make sure that both for employees and customers as we transition those services and bring them under the spire umbrella of serving them that we do that in a way that is methodical but also brings value to the organization as well And so when we do that, a lot of plans have been put in place, and once we close, we'll be doing the really hard work of pulling this off. The good news is this is a company, Spire is a company that has a long history of doing this, and has a lot of well-developed muscles regarding this. So I feel very confident in our ability to do this. And so when we do that, a lot of plans have been put in place, and once we close, we'll be doing the really hard work of pulling this off. and so when we do that a lot of plans have been put in place and once we close we'll be doing the really hard work of pulling this off The good news is this is a company, Spire is a company that has a long history of doing this, and has a lot of well-developed muscles regarding this. the good news is this is a company spire is a company that has a long history of doing this and has a lot of well-developed muscles regarding this So I feel very confident in our ability to do this. so i feel very confident in our ability to do this

Speaker 8: All right. Thank you very much. All right. all right Thank you very much. thank you very much

Speaker 9: Thanks, Ross. Thanks, Ross. thanks ross

Speaker 6: The next question comes from Paul Fremont with Ladenburg. Please go ahead. The next question comes from Paul Fremont with Ladenburg. the next question comes from paul fremont with ladenburg Please go ahead. please go ahead

Speaker 7: Thank you. Congratulations on a strong quarter. I guess my first question relates to storage. I guess in the past, you, you've expressed optimism of being able to complete the review with a sale. Do you still have that optimism at this point in time, that at the end of the month you can achieve a sale, or the end of the quarter, I mean? Thank you. thank you Congratulations on a strong quarter. congratulations on a strong quarter I guess my first question relates to storage. i guess my first question relates to storage I guess in the past, you, you've expressed optimism of being able to complete the review with a sale. i guess in the past you you've expressed optimism of being able to complete the review with a sale Do you still have that optimism at this point in time, that at the end of the month you can achieve a sale, or the end of the quarter, I mean? do you still have that optimism at this point in time that at the end of the month you can achieve a sale or the end of the quarter i mean

Speaker 9: Yeah, Paul, this is Scott, and good morning. Yeah, we... Look, we've had strong interest in these assets, and, as I've mentioned earlier, our desire at this time is to make sure that we're getting good value for both or each. And so that's what's causing the process to perhaps go a little longer than we had anticipated initially, but feel good about where we are in the stage of the process at this time. Yeah, Paul, this is Scott, and good morning. yeah paul this is scott and good morning Yeah, we... yeah we Look, we've had strong interest in these assets, and, as I've mentioned earlier, our desire at this time is to make sure that we're getting good value for both or each. look we've had strong interest in these assets and as i've mentioned earlier our desire at this time is to make sure that we're getting good value for both or each And so that's what's causing the process to perhaps go a little longer than we had anticipated initially, but feel good about where we are in the stage of the process at this time. and so that's what's causing the process to perhaps go a little longer than we had anticipated initially but feel good about where we are in the stage of the process at this time

Speaker 7: Great. And then when I look at all the financing that you've done, it seems like you've been able to achieve some very reasonable rates. And you've gone sort of beyond in terms of potentially achieving savings from the retirement of the preferred. Does that compare favorably to the assumptions that you put out when you gave guidance on the fourth quarter call? Great. great And then when I look at all the financing that you've done, it seems like you've been able to achieve some very reasonable rates. and then when i look at all the financing that you've done it seems like you've been able to achieve some very reasonable rates And you've gone sort of beyond in terms of potentially achieving savings from the retirement of the preferred. and you've gone sort of beyond in terms of potentially achieving savings from the retirement of the preferred Does that compare favorably to the assumptions that you put out when you gave guidance on the fourth quarter call? does that compare favorably to the assumptions that you put out when you gave guidance on the fourth quarter call

Speaker 1: Hey, Paul, it's Adam. You know, it's a good question. I would say that we were contemplating the redemption of the preferred in that guidance, so that's it. It's not additive to it. And I think so far in the acquisition financing, we're relatively close to what our expectations were. Good question. Hey, Paul, it's Adam. hey paul it's adam You know, it's a good question. you know it's a good question I would say that we were contemplating the redemption of the preferred in that guidance, so that's it. i would say that we were contemplating the redemption of the preferred in that guidance so that's it It's not additive to it. it's not additive to it And I think so far in the acquisition financing, we're relatively close to what our expectations were. and i think so far in the acquisition financing we're relatively close to what our expectations were Good question. good question

Speaker 7: Great. Great. Thanks a lot. That's it for me. Great. great Great. great Thanks a lot. thanks a lot That's it for me. that's it for me

Speaker 9: Thanks. Thanks, Paul. Thanks. thanks Thanks, Paul. thanks paul

Speaker 6: Once again, if you have a question, please press Star, then one. The next question comes from Bill Appicelli with UBS. Please go ahead. Once again, if you have a question, please press Star, then one. once again if you have a question please press star then one The next question comes from Bill Appicelli with UBS. the next question comes from bill appicelli with ubs Please go ahead. please go ahead

Speaker 2: Hi, good morning. Hi, good morning. hi good morning

Speaker 9: Good morning, Bill. Good morning, Bill. good morning bill

Speaker 2: Just a question on the clarifying that preferred impact, because you guys do show the corporate other side line item getting impacted by about $9 million, but then there's a direct one-to-one offset, right, on the preferred dividend impact, which you don't actually quantify, you know, in the guidance. So net-net EPS is unchanged, right? So even though the cumulative looks like the, you know, earnings, if you add the buckets up, it gets worse, but there's an offset that's not actually shown. Is that the way to think about it? Just a question on the clarifying that preferred impact, because you guys do show the corporate other side line item getting impacted by about $9 million, but then there's a direct one-to-one offset, right, on the preferred dividend impact, which you don't actually quantify, you know, in the guidance. just a question on the clarifying that preferred impact because you guys do show the corporate other side line item getting impacted by about $9 million but then there's a direct one-to-one offset right on the preferred dividend impact which you don't actually quantify you know in the guidance So net-net EPS is unchanged, right? so net-net eps is unchanged right So even though the cumulative looks like the, you know, earnings, if you add the buckets up, it gets worse, but there's an offset that's not actually shown. so even though the cumulative looks like the you know earnings if you add the buckets up it gets worse but there's an offset that's not actually shown Is that the way to think about it? is that the way to think about it

Speaker 9: That's right, Bill. Yeah, I think you followed it. That's right, Bill. that's right bill Yeah, I think you followed it. yeah i think you followed it

Speaker 2: Okay. And then, can you just remind us on the regulatory strategy or calendar from here, particularly as it relates to Missouri? You know, just as a, you know, walk us through sort of the timeline of when the next case would be filed and new rates under the new legislation? Okay. okay And then, can you just remind us on the regulatory strategy or calendar from here, particularly as it relates to Missouri? and then can you just remind us on the regulatory strategy or calendar from here particularly as it relates to missouri You know, just as a, you know, walk us through sort of the timeline of when the next case would be filed and new rates under the new legislation? you know just as a you know walk us through sort of the timeline of when the next case would be filed and new rates under the new legislation

Speaker 9: Yeah. Hey, Bill, on the rate case timing, it'll, the way we have it, at least anticipated right now, is we follow the pattern of our prior case, which is, you know, we'd file it after fiscal year-end, but before Thanksgiving. So look at the October-November timeframe of this year. And then the timeframe of the rate case, the prosecution would follow most likely the same amount of time it took, for this last rate case. And as we've talked to a lot of folks, it's a case of first impression, with being the first, future test year that we would be filing. So we'd want to work through those details with the commission, as we go through this process, as well. Yeah. yeah Hey, Bill, on the rate case timing, it'll, the way we have it, at least anticipated right now, is we follow the pattern of our prior case, which is, you know, we'd file it after fiscal year-end, but before Thanksgiving. hey bill on the rate case timing it'll the way we have it at least anticipated right now is we follow the pattern of our prior case which is you know we'd file it after fiscal year-end but before thanksgiving So look at the October-November timeframe of this year. so look at the october-november timeframe of this year And then the timeframe of the rate case, the prosecution would follow most likely the same amount of time it took, for this last rate case. and then the timeframe of the rate case the prosecution would follow most likely the same amount of time it took for this last rate case And as we've talked to a lot of folks, it's a case of first impression, with being the first, future test year that we would be filing. and as we've talked to a lot of folks it's a case of first impression with being the first future test year that we would be filing So we'd want to work through those details with the commission, as we go through this process, as well. so we'd want to work through those details with the commission as we go through this process as well But that's what we're looking forward to later this year, and work is already underway in dialogue with commission staff and others, as we prepare to file that, the package under the, under the conditions that they'd like for us to file it. But that's what we're looking forward to later this year, and work is already underway in dialogue with commission staff and others, as we prepare to file that, the package under the, under the conditions that they'd like for us to file it. but that's what we're looking forward to later this year and work is already underway in dialogue with commission staff and others as we prepare to file that the package under the under the conditions that they'd like for us to file it

Speaker 2: Okay. That's very helpful. Thank you. That's it for me. Okay. okay That's very helpful. that's very helpful Thank you. thank you That's it for me. that's it for me

Speaker 9: Thank you, Bill. Thank you, Bill. thank you bill

Speaker 6: This concludes the question and answer session. I would like to turn the conference back over to Megan McPhail for any closing remarks. Please go ahead. This concludes the question and answer session. this concludes the question and answer session I would like to turn the conference back over to Megan McPhail for any closing remarks. i would like to turn the conference back over to megan mcphail for any closing remarks Please go ahead. please go ahead

Speaker 5: Thank you for joining us on the call today. We look forward to seeing many of you at conferences in the coming weeks. Have a great day. Thank you for joining us on the call today. thank you for joining us on the call today We look forward to seeing many of you at conferences in the coming weeks. we look forward to seeing many of you at conferences in the coming weeks Have a great day. have a great day

Speaker 6: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. The conference is now concluded. the conference is now concluded Thank you for attending today's presentation. thank you for attending today's presentation You may now disconnect. you may now disconnect