Spire Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Spire Inc. filed its Q1 2024 10-Q, reporting a correction to a prior period's fair value presentation that did not impact financial results.</b>

AI Summary

SPIRE INC (SRJN) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. Spire Inc. filed its 10-Q report for the quarter ended December 31, 2023. The filing covers Spire Inc., Spire Alabama Inc., and Spire Missouri Inc. The company identified an error in fair value level presentation for certain line items in the Fair Value Measurements table for the quarter ended December 31, 2022. This error, corrected in Q4 fiscal 2023, involved presenting impacted line items in Level 2 rather than Level 1, and was deemed immaterial. The correction did not impact reported fair values or consolidated financial statements.

Why It Matters

For investors and stakeholders tracking SPIRE INC, this filing contains several important signals. The filing provides an update on Spire Inc.'s financial performance and operational status for the most recent quarter. The correction of a Level 1 vs. Level 2 fair value presentation error, though immaterial, indicates attention to accounting detail and compliance.

Risk Assessment

Risk Level: low — SPIRE INC shows low risk based on this filing. The risk is low as the identified error in fair value presentation was deemed immaterial and did not impact the consolidated financial statements.

Analyst Insight

Monitor future filings for any recurring accounting adjustments or further details on fair value measurements.

Key Numbers

• 2023-12-31 — Period End Date (Quarterly report period)
• 2024-02-01 — Filing Date (Date the report was filed)
• Q1 2024 — Fiscal Quarter (Indicates the first quarter of fiscal year 2024)
• Level 2 — Fair Value Presentation (Corrected presentation for certain line items)
• Level 1 — Fair Value Presentation (Original presentation for certain line items)

Key Players & Entities

• SPIRE INC (company) — Filer
• SPIRE ALABAMA INC (company) — Filer
• SPIRE MISSOURI INC (company) — Filer
• LACLEDE GROUP INC (company) — Former company name
• ALABAMA GAS CORP (company) — Former company name
• 2023-12-31 (date) — Period of report
• 2024-02-01 (date) — Filed as of date
• 700 MARKET STREET (address) — Business address for Spire Inc. and Spire Missouri Inc.

Forward-Looking Statements

• Spire Inc. will face increased scrutiny regarding its internal controls over financial reporting in upcoming filings. (Spire Inc.) — medium confidence, target: Q2 2024 earnings report

FAQ

Risk Factors

• Fair Value Measurements [low — financial]: An error was identified in the fair value level presentation for certain line items in the Fair Value Measurements table for the quarter ended December 31, 2022.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a timely update on the company's financial condition and performance.)

Fair Value Measurements

A table that presents information about the inputs used to measure the fair value of the company's assets and liabilities. (Crucial for understanding the valuation of financial instruments and the reliability of those valuations.)

Level 1 Inputs

Quoted prices in active markets for identical assets or liabilities. (Represents the most reliable measure of fair value when available.)

Level 2 Inputs

Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable. (Used when Level 1 inputs are not available, providing a less direct but still observable valuation.)

Key Financial Figures

• $1.00 — hange on which registered Common Stock $1.00 par value SR New York Stock Exchang
• $25.00 — le Perpetual Preferred Stock, par value $25.00 per share SR.PRA New York Stock Exch
• $0.01 — e Alabama Inc. Common Stock, par value $0.01 per share (all owned by Spire Inc.) 1,

Filing Documents

• spre20231231_10q.htm (10-Q) — 3087KB
• ex_606442.htm (EX-31.1) — 33KB
• ex_606443.htm (EX-31.2) — 33KB
• ex_606444.htm (EX-31.3) — 33KB
• ex_606445.htm (EX-32.1) — 14KB
• ex_606446.htm (EX-32.2) — 13KB
• ex_606447.htm (EX-32.3) — 14KB
• 0001437749-24-002776.txt (&nbsp;) — 12024KB
• sr-20231231.xsd (EX-101.SCH) — 62KB
• sr-20231231_cal.xml (EX-101.CAL) — 60KB
• sr-20231231_def.xml (EX-101.DEF) — 412KB
• sr-20231231_lab.xml (EX-101.LAB) — 355KB
• sr-20231231_pre.xml (EX-101.PRE) — 450KB
• spre20231231_10q_htm.xml (XML) — 2907KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1

Financial Statements (Unaudited)

Financial Statements (Unaudited) Spire Inc. Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Shareholders' Equity 8 Condensed Consolidated Statements of Cash Flows 10 Spire Missouri Inc. Condensed Statements of Comprehensive Income 11 Condensed Balance Sheets 12 Condensed Statements of Shareholder's Equity 14 Condensed Statements of Cash Flows 15 Spire Alabama Inc. Condensed Statements of Income 16 Condensed Balance Sheets 17 Condensed Statements of Shareholder's Equity 19 Condensed Statements of Cash Flows 20

Notes to Financial Statements

Notes to Financial Statements Note 1. Summary of Significant Accounting Policies 21 Note 2. Revenue 24 Note 3. Earnings Per Common Share 25 Note 4. Shareholders ' Equity 25 Note 5. Regulatory Matters 26 Note 6. Financing 30 Note 7. Fair Value of Financial Instruments 31 Note 8. Fair Value Measurements 33 Note 9. Pension Plans and Other Postretirement Benefits 36 Note 10. Information by Operating Segment 39 Note 11. Commitments and Contingencies 40 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 56 Item 4

Controls and Procedures

Controls and Procedures 56

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 57 Item 1A

Risk Factors

Risk Factors 57 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 57 Item 3 Defaults upon Senior Securities 57 Item 4 Mine Safety Disclosures 57 Item 5 Other Information 57 Item 6 Exhibits 58

SIGNATURES

SIGNATURES 59 1 Table of Contents GLOSSARY OF KEY TERMS AND ABBREVIATIONS APSC Alabama Public Service Commission PGA Purchased Gas Adjustment ASC Accounting Standards Codification RSE Rate Stabilization and Equalization Company Spire and its subsidiaries unless the context suggests otherwise SEC U.S. Securities and Exchange Commission Degree days The average of a day's high and low temperature below 65, subtracted from 65, multiplied by the number of days impacted Spire Spire Inc. FASB Financial Accounting Standards Board Spire Alabama Spire Alabama Inc. FERC Federal Energy Regulatory Commission Spire EnergySouth Spire EnergySouth Inc., the parent of Spire Gulf and Spire Mississippi GAAP Accounting principles generally accepted in the United States of America Spire Gulf Spire Gulf Inc. Gas Marketing Segment including Spire Marketing, which provides natural gas marketing services Spire Marketing Spire Marketing Inc. Gas Utility Segment including the operations of the Utilities Spire Mississippi Spire Mississippi Inc. GSA Gas Supply Adjustment Spire Missouri Spire Missouri Inc. ISRS Infrastructure System Replacement Surcharge Spire STL Pipeline Spire STL Pipeline LLC, or the 65-mile FERC-regulated pipeline it constructed and operates to deliver natural gas into eastern Missouri Midstream Segment including Spire Storage and Spire STL Pipeline Spire Storage The physical natural gas storage operations of Spire Storage West LLC and Spire Storage Salt Plains LLC MoPSC Missouri Public Service Commission U.S. United States MSPSC Mississippi Public Service Commission Utilities Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth O&M Operation and maintenance expense 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION The interim financial statements included herein have been prepared by three separate registrants — Spire Inc. ("Spire" or the "Company"), Spire Missouri Inc. ("Spire Missouri") and Spire Alabama Inc. ("Spire Alabama") — without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). These financial statements should be read in conjunction with the financial statements and the notes thereto included in the registrants' combined Form 10-K for the fiscal year ended September 30, 2023. The Financial Information in this Part I includes separate financial statements (i.e., statements of income and comprehensive income, balance sheets, statements of shareholders' equity and statements of cash flows) for Spire, Spire Missouri and Spire Alabama. The Notes to Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations are also included and presented herein on a combined basis for Spire, Spire Missouri and Spire Alabama. 3 Table of Contents

Financial Statements

Item 1. Financial Statements SPIRE INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended December 31, (In millions, except per share amounts) 2023 2022 Operating Revenues $ 756.6 $ 814.0 Operating Expenses: Natural gas 367.0 419.2 Operation and maintenance 130.7 132.1 Depreciation and amortization 67.0 62.1 Taxes, other than income taxes 52.7 50.4 Total Operating Expenses 617.4 663.8 Operating Income 139.2 150.2 Interest Expense, Net 50.6 43.6 Other Income, Net 17.5 6.0 Income Before Income Taxes 106.1 112.6 Income Tax Expense 21.0 21.6 Net Income 85.1 91.0 Provision for preferred dividends 3.7 3.7 Income allocated to participating securities 0.1 0.1 Net Income Available to Common Shareholders $ 81.3 $ 87.2 Weighted Average Number of Common Shares Outstanding: Basic 53.5 52.4 Diluted 53.6 52.6 Basic Earnings Per Common Share $ 1.52 $ 1.66 Diluted Earnings Per Common Share $ 1.52 $ 1.66 See the accompanying Notes to Financial Statements. 4 Table of Contents SPIRE INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended December 31, (In millions) 2023 2022 Net Income $ 85.1 $ 91.0 Other Comprehensive Loss, Before Tax: Cash flow hedging derivative instruments: Net hedging loss arising during the period ( 15.4 ) ( 3.0 ) Amounts reclassified into net income ( 9.0 ) ( 0.3 ) Net loss on cash flow hedging derivative instruments ( 24.4 ) ( 3.3 ) Net gain on defined benefit pension and other postretirement plans 0.1 0.1 Net unrealized gain on available for sale securities 0.1 — Other Comprehensive Loss, Before Tax ( 24.2 ) ( 3.2 ) Income Tax Benefit Related to Items of Other Comprehensive Loss ( 5.7 ) ( 0.8 ) Other Comprehensive Loss, Net of Tax ( 18.5 ) ( 2.4 ) Comprehensive Income $ 66.6 $ 88.6 See the accomp

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