Q4 2025 Spire Inc Earnings Call

It's more of a conference specialist by pressing the star key followed by zero.

Scott Doyle: Thanks, Adam. As we look ahead to fiscal 2026, our priorities are clear and aligned with Spire's commitment to operational excellence, regulatory engagement, financial discipline, and strategic growth. First and foremost, we remain focused on safely delivering reliable natural gas services to our customers. We are executing on our capital plan for the year, targeting safety and long-term infrastructure resilience, while maintaining customer affordability through disciplined cost management. On the regulatory front, we're working toward constructive outcomes across all of our jurisdictions. The key step will be preparing to file a future test year rate case in Missouri to ensure timely cost recovery and support ongoing investments. From a financial perspective, we are committed to delivering on our fiscal 2026 adjusted EPS guidance of $5.25 to $5.45, while maintaining a strong balance sheet that supports both our growth strategy and long-term shareholder value.

After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad.

Speaker #3: bill's The passage marks a milestone , and we're grateful for the major partnership that helps strengthen Missouri's regulatory framework for both utilities and their customers .

To withdraw your question. Please press Star then two.

Please note this event is being recorded.

Speaker #3: This morning, we issued fiscal 2026 adjusted EPS guidance in the range of $5.25 to $5.45. This range excludes the results pending from the acquisition of the Piedmont, Tennessee business and includes a full year of earnings from our natural gas storage facilities.

I would now like to turn the conference over to Megan Mcphail, managing director of Investor Relations. Please go ahead.

Good morning, and welcome to spire fiscal 2025 year end earnings call on the call with me today is Scott Doyle, President and CEO and Adam what are executive Vice President and CFO.

Speaker #3: Today , we are also providing fiscal adjusted earnings per share 2027 guidance of $5.65 to $5.85 , which reflects a full year of expected earnings contribution from the Piedmont , Tennessee business and excludes earnings from Spire Storage due to the expected sale of the assets .

Issued an earnings news release. This morning, you may access it on our website fire energy Dot com under newsroom.

The slide presentation that accompanies our webcast, which can be downloaded from our website under investors and then events and presentations.

Before we begin let me cover our safe Harbor statement and use of non-GAAP earnings measures.

Scott Doyle: Finally, we are making significant progress with the acquisition of the Piedmont Tennessee business. Our focus is on financing and closing the transaction, which includes completing the evaluation of the sale of our natural gas storage assets. We remain laser-focused on ensuring a seamless integration for customers and employees. Together, these priorities position Spire Missouri to deliver strong operational and financial performance, and sustainable long-term growth. We are confident in our path forward and energized by the opportunities ahead. Thank you for your continued support and interest in Spire Missouri. We will now take your questions.

Speaker #3: long term Our EPs growth adjusted guidance is 5 to 7% . Using the fiscal 2027 guidance midpoint of $5.75 as a base . Our ten year capital plan , including expected capital needs in Tennessee , totals $11.2 billion , demonstrating confidence in the long term fundamentals of our business .

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 than those anticipated.

These risks and uncertainties are outlined in our quarterly and annual filings with the SEC.

Speaker #3: I am pleased to say that the Spire Board of Directors approved a dividend increase of 5.1%, bringing the annualized rate to $3.30 per share.

In our comments, we will be discussing non-GAAP measures used by management when evaluating our performance and results of operations.

Speaker #3: Spire has continuously paid a cash dividend since 1946 , and 2026 will mark the 23rd consecutive year . The dividend has increased . As you can see five , on slide we checked all of the boxes on our fiscal 2025 key business priorities and more .

Explanations and reconciliations of these measures to their GAAP counterparts are contained in both our news release and slide presentation.

Operator: We will now begin the question and answer session. To ask a question, you may press Star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star then 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Julian Dumolen-Smith with Jefferies. Please go ahead.

Now here's Scott, who will start on page four of the presentation.

Thanks, Mike and good morning, everyone. Thank you for joining us for spires, you're in fiscal 2025 update.

Speaker #3: It was a year of strong execution, and we are committed to delivering strong results in fiscal 2026 and beyond with a solid, confident foundation.

We appreciate your continued interest and support as we review our financial results discuss recent developments and share our outlook for 2026 and beyond.

Speaker #3: ability We're to sustainable deliver value for our customers , communities and shareholders . In the ahead . Let's turn now to slide six for an update on our pending acquisition Piedmont , Tennessee of the which business , remains track to close in the first quarter of calendar 2026 .

I'm incredibly proud of what we accomplished during the year to advance our strategic goals, both operationally and financially.

[Analyst] (Jefferies): Hi, good morning, team. It's Paul Zimbardo on for Julian. How are you?

We made significant progress towards settings fire up for long term success.

Adam Woodard: Hey, good morning.

This includes the pending acquisition of Piedmont natural gas, Tennessee business from Duke, which I'll provide an update on in a moment we.

[Analyst] (Jefferies): Hi, good morning. No, thank you for the update. The first question I had was just if you could give a little bit more details and color on the long-term growth rate, and just really, are you expecting continued improvement in earned ROEs within that path, and just any commentary you can share on how to think about gas marketing midstream growth in that profile as well?

Speaker #3: We completed the Hart-scott-rodino review in September , important marking an milestone in the approval process , and we recently received approval from Ferc for the transfer of Piedmont , Tennessee's gas supply contract's Tennessee public Utility Commission approval is pending , and we continue to work closely with the commission burning to our financing plan .

We had a great year and none of this would be possible without our 3500 dedicated employees I want to thank them for everything they do to our for our customers and the communities. We serve the commitment and hard work of our employees are the heart of these strong results and the opportunities ahead.

Speaker #3: We are pursuing a permanent capital structure that is consistent with Spire's current credit ratings . Our approach remains largely the same and balanced mix debt , of includes a equity and hybrid securities , ensuring we maintain financial flexibility and strength .

We're continuing to build a strong leadership team and I'm delighted to welcome Steve Greenlee as our new Executive Vice President and Chief operating Officer.

Adam Woodard: Yeah, sure. This is Scott. Clearly, we provided two years of guidance on this call. The primary reason for that is there's a lot of things happening within the business over the next 12 months in this fiscal year. Using 2027 as perhaps a cleaner year based on the assumptions that we provided in the prepared remarks. To the point, when we think about earned returns within the utility coming out of the Missouri rate case, there's a step-up associated with that as we've brought capital into base rates from an extended period over the last several years, capital that had not passed through our ISRS mechanism. When we think about earned returns in the utility, particularly in Missouri, we're getting closer to our allowed returns in Missouri.

Steve has over 25 years of utility operations experience and will oversee our gas utilities. In addition to our midstream segment.

Speaker #3: We expect a minimal amount of Spire Common shares to be issued as a percentage of total financing . And we have launched process a evaluating the sale gas of our storage facilities as potential sources of funds .

We're excited about the expertise and collaborative leadership style, Steve adds to our team.

I'm confident that he will play a key role as we continue to advance our strategy.

Speaker #3: We're targeting calendar year end for the completion of this evaluation process . Transition planning for the acquisition is well underway . A seamless transition for both customers and employees is our top priority by an .

Turning now to our fiscal 2025 results adjusted EPS came in at $4 44.

Seven 5% from $4 13 sets in fiscal 2024, reflecting growth across all segments driven by infrastructure investments and.

Speaker #3: Integration team. We're led and have an 18-month transition agreement to provide service continuity and support once closed. We were making solid progress on all fronts.

In fiscal 2025, we invested $922 million with close to 90% being spent at the utilities enhancing the reliability and safety of our systems for our customers.

Adam Woodard: We'll file another case in Missouri in the fall of next year, and we'll need to prosecute that case. That case will be based on a future test year, but the outcome of that case is not going to be reflected in the FY27 time period. When you think about the guide that we're looking at for FY27, the earned returns in Missouri will be a little less than what they are in 2026 when we think about that. When we think about Alabama, the earned returns are close to our allowed, as we have a forward-looking mechanism there that works annually, and we're currently in the process of having it reviewed right now. Marketing and midstream, as we think about the guide, clearly, all of midstream is in the guide for next year, but as we said on the call, we pulled storage out for FY27.

On the regulatory front, we were pleased to reach a positive settlement and outcome.

Is there a rate case and new rates were effective in October and.

In Alabama, we are currently in the rate stabilization and equalization or RSC rate setting process and are working closely with the key stakeholders to update rates.

We remain focused on achieving consistent and constructive regulatory outcomes in all of our jurisdictions, leading to a more sustainable financial performance trajectory.

Despite significant critical investments in our systems customer rate increases the past several years in both Missouri, and Alabama has been in line with the rate of inflation reinforcing our commitment to affordability.

Natural gas remains the most affordable energy source for heating and water heating and cooking.

Adam Woodard: Marketing, as you know, we rebase every year, and it's not part of our growth story when we think about how it supports the overall growth picture, or at least the guide for '5 to '7.

Across our service territories electricity is two to three times more expensive than natural gas.

In Missouri, New legislation passed establishing a future test year as the rate setting model.

This legislation is the result of collaboration among numerous stakeholders across the state.

[Analyst] (Jefferies): Okay. Great. It does sound like you would expect using that '27 base and tailwinds on earned ROE based on that cadence you described, if that's fair.

The new forward looking approach will allow natural gas and water utilities to set rates based on projected costs, rather than historical expenses, enabling prudent planning attractive investments in energy infrastructure and fueling economic growth statewide.

Adam Woodard: Yeah. Yes, yes, that's correct.

[Analyst] (Jefferies): Okay. Great. Any additional detail on the FFO to debt target, the 15%, 16%? How does that also evolve if we use a 2027 kind of jumping-off point? Where in that range do you expect to be, and how does that trend over time? Thank you.

The bills passage marks a major milestone and we're grateful for the partnership that helped strengthen Missouri's regulatory framework for both utilities and their customers.

This morning, we issued fiscal 2026, adjusted EPS guidance in the range of $5 25 to $5 45.

Adam Woodard: Yeah. Paul, as we've talked, we're at the bottom of the threshold ranges now, but a lot of that is premised on just getting back into the right recovery path for Missouri. We see a pretty steady movement up into the middle of the threshold bands for both Moody's and S&P going forward, really premised on the recoveries in Missouri. We're also taking, I think, a very deliberate financing tack with Tennessee to make sure that that is also credit-positive as well.

This range excludes the results of the pending acquisition of Piedmont, Tennessee business and includes a full year earnings of earnings related to our natural gas storage facilities.

Today, we are also providing fiscal 2027 adjusted earnings per share guidance of $5 65 to $5 85, which.

Which reflects a full year of expected earnings contribution from the Piedmont, Tennessee business and excludes earnings from spire storage due to the expected sale of the assets.

Our long term adjusted EPS growth guidance is 5% to 7% using the fiscal 2027 guidance midpoint of $5.75 as a base.

[Analyst] (Jefferies): Indeed, yes. Okay. Thank you. That makes sense. Appreciate it.

Adam Woodard: Thanks, Paul.

Our 10 year capital plan, including expected capital needs in Tennessee totals $11 $2 billion.

Operator: The next question is from Gabe Maureen with Mizuho. Please go ahead.

[Analyst] (Mizuho): Hey, good morning, everybody. I just wanted to ask a quick question on the financing mix and timing. Adam, has anything shifted in your mind, I guess, since you announced the acquisition? Just kind of your latest thoughts. You mentioned the minimal common equity issue, and just maybe latest thoughts on the financing mix and timing.

Demonstrating confidence in the long term fundamentals of our business I am pleased to say that the spire board of directors approved a dividend increase of five 1%, bringing the annualized rate to $3 30 per share.

Spire has continuously paid a cash dividend since $19 46, and 2026 will mark the 20 <unk> consecutive year that the dividend has increased.

Adam Woodard: Yeah. No big update. We continue to feel confident about taking a very balanced mix of debt and equity. Obviously, we're taking on these assets debt-free, so we need to recapitalize rate base at Tennessee, so you can expect that. Obviously, part of that is our evaluation of the storage business, and more to come there. We don't have an announcement there, but those are terrific assets, and we are seeing quite a bit of interest there. We will be making an announcement at some point in the not-too-distant future.

As you can see on slide five we checked all the boxes on our fiscal 2025 key business priorities and more it was a year of strong execution and we are committed to delivering strong results in fiscal 2026 and beyond.

With a solid foundation, we are confident in our ability to deliver sustainable value for our customers communities and shareholders in the years ahead.

Let's turn now to slide six for an update on our pending acquisition of Piedmont, Tennessee business, which remains on track to close in the first quarter of calendar 2026.

We completed the Hart Scott Rodino review in September marking an important milestone in the approval process and we recently received approval from FERC for the transfer of Piedmont to cease gas supply contracts.

[Analyst] (Mizuho): Gotcha. Thanks, Adam. I appreciate that. Maybe if I can ask just on your O&M assumptions kind of going forward, it seems like '26, you're below and aiming to stick below inflation. Does that stick for the rest of the plan? I guess just as an overarching basis with the interaction or, sorry, the integration planning going on between the utilities, any best practices or major initiatives that you think you'd share between the two that would, I guess, keep a lid on O&M?

Does he public utility Commission approval is pending and we continue to work closely with the commission.

Turning to our financing plan, we are pursuing a permanent capital structure that is consistent with <unk> current credit ratings.

Our approach remains largely the same and includes a balanced mix of debt equity and hybrid securities, ensuring we maintain financial flexibility and strength.

Adam Woodard: Hey, Gabe. This is Scott. Great question. Yeah. O&M, our guide for this year is to be below the rate of inflation. Historically, that's been our guide year over year, and that was actually our performance this year was below the rate of inflation. When you think about the integration activities, we're in the very early stages, but that is our theme as we step into the integration activities. Anytime we go through these, we look to best practices across both organizations. As those that know us or have followed our story for a long time, we have been through this before. When we do that, we find things that others do well, and we want to make sure we incorporate that into our go-forward business.

We expect a minimal amount of fire common shares to be issued as a percentage of total financing and we have launched a process of evaluating the sale of our gas storage facilities as potential sources of funds.

We're targeting calendar year in for the completion of this evaluation process.

Transition planning for the acquisition is well underway.

He most transition for both customers and employees is our top priority.

Were led by an experienced integration team and having an 18 months transition service agreement to provide continuity and support once closed we.

We're making solid progress on all fronts regulatory financial and operational.

Adam Woodard: We'll have more to talk about that as we get a little further into the integration planning and start working more closely with the assets themselves once we close.

We're excited about the opportunities this acquisition brains that are committed to delivering value to our customers employees and shareholders as we move forward.

Turning to slide seven with the addition of Tennessee spire will operate across states with constructive regulatory frameworks and minimal regulatory lag.

[Analyst] (Mizuho): Thanks, Scott.

Operator: The next question is from Paul Fremont with Ladenburg. Please go ahead.

This strengthens our ability to deliver consistent and balanced growth across our utility businesses, improving diversification and stability of earnings importantly, each jurisdiction is supported by a recovery mechanisms that encourage investment in critical infrastructure.

[Analyst] (Ladenburg): Thanks. I guess my first question is, with the future test year rate adjustment taking place in 2028, could 2028 be a year that falls outside of that 5 to 7 range, given the fact that you'll be further potentially narrowing your under-earning in Missouri?

Looking ahead by fiscal year 'twenty, three we expect our total rate base and capitalization to grow to $10 $7 billion from an estimated $8 $2 billion at the end of fiscal 2026, driven by a robust capital plan.

Adam Woodard: Yeah. Hey, Paul, this is Scott. Maybe Adam and I will both tag-team this. I think a couple of things to think about. When we pivot to future test year, we're going to bring forward some capital into that process. We'll have to get through the process before we know what that will be as well. Within the range of what we're providing, we're basing that based on what we know right now, and the best guess that we have. Yeah. We don't want to get too far ahead of rate-making, given that that's another couple of years out. I think your implication, Paul, of a more fully earned ROE is usually the implication around future test year. We don't want to get ahead of that, but we would expect certainly some improvement there.

We're excited about the opportunities this acquisition brings. We are committed to delivering value to our customers, employees, and shareholders as we move forward.

Our long term adjusted EPS growth targets supported by compound annual rate base growth in Missouri of about 7% and compound annual growth in Tennessee of approximately seven 5%.

Earning the slide 7.

With the addition of Tennessee Spire will operate across states with constructive regulatory Frameworks, and minimal regulatory lag.

We also expect 6% regulated equity growth in Alabama, and golf as a reminder, under the RSC mechanism in Alabama, we earn on regulated common equity rather than rate base, which is expected to outpace the total capitalization growth rate.

This strengthens our ability to deliver consistent and balanced growth of our utility businesses improving diversification and stability of earnings.

Importantly each jurisdiction is supported by recovery mechanisms that encourage investment in critical infrastructure.

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, Let's review, our fiscal 2025 results and our guidance for 2026 and beyond.

Looking ahead by fiscal year 2030. We expect our total rate base in capitalization, to grow to 10.7 billion dollars from an estimated, 8.2 billion dollars, at the end of fiscal 2026 driven by our robust Capital plan.

[Analyst] (Ladenburg): It sounds to me like you're more confident about your decision to sell storage. I think on the last call, you had indicated that would depend on levels of interest. I assume the levels of interest are strong enough that you now feel that it will be sold?

In fiscal 2025, we reported adjusted earnings of $275 5 million or $4 44 per share compared to $247 4 million or $4 13 per share in the prior year.

Our long-term adjusted EPS growth target is supported by a compound annual growth rate in Missouri of about 7%.

and compound annual growth in Tennessee of approximately 7.5%.

These results included a fourth quarter adjusted loss of $24 million or <unk> 47 per share, reflecting the seasonality of our businesses.

Adam Woodard: Paul, we're still in the evaluation process. As I mentioned earlier, we have seen quite a bit of interest, and strong interest in the assets, but more to come there. We'll make an announcement once we get to a conclusion of that process.

In the quarter adjusted earnings were $3 million or <unk> <unk> per share above last year, but fell below our expectations due to higher utility O&M expense.

We also expect 6% regulated Equity growth in Alabama and Gulf, as a reminder under the RSC mechanism in Alabama, we earn on regulated common Equity rather than rate base which is expected to outpace the total capitalization growth rate.

I'll now turn the call over to Adam for a financial review and update on guidance and Outlook Adam.

Looking at the full fiscal year for our business segments gas utilities earned $231 million up almost 5% over $10 million.

[Analyst] (Ladenburg): Great, you're expecting to make an announcement one way or another between now and the end of the year, right?

Thanks, Scott, and good morning, everyone. Let's review our fiscal year 2025 results and our guidance for 2026 and beyond.

Adam Woodard: Yeah, we're targeting by the end of the calendar year.

Almost 5% or over $10 million from last year.

[Analyst] (Ladenburg): Just going back to sort of your original comments, if you were to sell the storage, the remaining sort of balance of equity and debt, has that changed since your last call?

Recovery in Missouri, and new rates in Alabama were partially offset by slightly lower usage in Alabama, higher O&M and depreciation expense.

The fiscal 2025, we reported adjusted earnings of 275.5 million or $4.44 per share compared to the 247.4 billion dollars or $4.13 per share in the prior year.

You said Jeanette have weather mitigation in Missouri was comparable in fiscal 'twenty 'twenty five to the prior year.

Midstream delivered earnings of $56 million up almost $23 billion from last year, driven by additional capacity of asset optimization at spire storage.

These results, including the fourth quarter, show an adjusted loss of $24 million, or $0.47 per share, reflecting the seasonality of our businesses.

Adam Woodard: Well, that certainly figures into the mix of financing. I think once we get to the point of an announcement, we would shed some more light on that.

In the quarter adjusted, earnings were a 3 and a half million dollars or 7 cents per share above last year.

Partially offset by higher operating costs from higher activity at scale gas.

Would call the lower expectations due to higher utility onm, expense.

Gas marketing earned $46 million, an increase of $2 $5 million, reflecting the business.

[Analyst] (Ladenburg): Okay. Last question, can you be more specific in terms—in other words, if you're not issuing straight equity, what else would sort of fall into the category of fulfilling your equity need?

Being well positioned to create value.

This was partially offset by higher storage and transportation fees.

And finally, other corporate costs were $38 million nearly $8 million higher than the prior year. This reflects the absence of the prior year benefit of an interest rate hedge.

Adam Woodard: I mean, there are certainly other securities that we would have access to markets to that would provide equity-like coverage there, whether those are equity-linked securities, hybrids, or what have you. I think there are some other options there.

10 million dollars from last year. This was recovery in Missouri and new rates in Alabama were partially offset by slightly lower usage? In Alabama.

Higher onm and depreciation expense.

Higher interest expense in the current year.

Turning to slide 10, and our updated capital plan, which includes the anticipated Tennessee span our latest five year investment plan totaling $4 8 billion.

Usage. Net of whether mitigation in Missouri was comparable in fiscal 2025 to the prior year.

For fiscal 2026 through fiscal 2000 22030.

[Analyst] (Ladenburg): Junior subordinated debt, is that included as well?

And we projected a 10 year capital plan of $11 $2 billion. The majority of this investment 70%, that's dedicated to safety and reliability projects.

Midstream delivered earnings of 56 million up almost 23 million from last year, driven by additional capacity of asset optimization Inspire storage, partially offset by higher operating costs for higher activity and scale.

Adam Woodard: Yeah. I'm using that along with—I would use that terminology with a hybrid. Yeah.

Gas marketing earned 26 million dollars an increase of 2.5 million.

Reflecting the business.

Highlighting our commitment to upgrading distribution of the structure and ensuring the integrity of our systems.

Being well-positioned to create value.

[Analyst] (Ladenburg): Got it. Okay, that's it for me. Congratulations.

This is partially offset by higher storage and transportation fees.

Adam Woodard: Thanks, Paul. Thanks, Paul.

Another 19% supports customer expansion and new business connections, helping us to safely deliver a reliable and affordable natural gas to more homes and businesses.

Operator: The next question is from Alex Kania with BTIG. Please go ahead.

[Analyst] (BTIG): Good morning. Thanks for taking my question. Would you mind reminding me again just on the within midstream, just the rough split? I think it was 1/3, 2/3 on kind of pipelines versus storage. Would that be earnings, or would it be EBITDA as well? Is it fair?

As a reminder, almost all of our 10 year capital expenditure plan is targeted towards utility investments and we expect to recover a significant portion through.

And finally other corporate costs for 38 million, nearly 8 million dollars higher than the prior year. This reflects the absence of the prior year benefit of an interest rate Edge and higher interest expense in the current year.

Through forward test year, ratemaking true up mechanisms or other constructive regulatory tools, helping balance infrastructure investment with customer affordability.

Adam Woodard: Yeah. It's 1/3 pipeline, 2/3 storage is kind of the split. Depending on which way you cut the data, it's about the same. Whether it's EBITDA or earnings, about the same.

Starting to slide 10 and are updated Capital plan, which includes anticipated Tennessee, spend our latest 5-year investment plan, totals, 4.8 billion dollars from fiscal 2026. Through fiscal 2020, 2030.

Turning now to our growth outlook on slide 11.

Scott mentioned, we are reaffirming our long term adjusted earnings per share growth target of 5% to 7% anchored on the midpoint of our fiscal 2027 guidance range of $5 75 per share.

And we projected 10-year Capital plan of 11.2 billion dollars. The majority of this investment 70% is dedicated to safety and reliability projects.

[Analyst] (BTIG): Great. Thanks. Maybe we're just taking kind of a step too far down the path of an asset sale, but just if there was a decision to move forward with the sale, does that kind of—would that be big enough to sort of change your kind of long-term balance sheet targets, thresholds, and things like that as you look forward, given the supply and regulated assets?

Highlighting our commitment to upgrading distribution of the structure and ensuring the Integrity of our systems.

This growth is supported by expected rate base growth of approximately 7% of Missouri, seven 5% of Tennessee. In addition to the 6% equity growth at Alabama utilities.

Another 19% supports customer expansion and new business connections, helping us to safely deliver, reliable, and affordable natural, gas to more homes and businesses.

This also reflects timely recovery of investments across all of our jurisdictions.

Adam Woodard: Yeah, I mean, too early to comment. That's part of the evaluation process. There'll be more as we announce the conclusion of the evaluation process.

As a reminder, almost all of our 10 year capital expenditure plan is targeted towards utility Investments and it'll be expected to recover a significant portion.

For fiscal 2026, we've issued an adjusted EPS guidance range of $5 25 to $5 45 per share.

Through forward test year rate making, throughout mechanisms or other constructive regulatory tools.

[Analyst] (BTIG): Great. Thanks. My last question just is on the transition to the forward test year in Missouri. Do you anticipate—or I guess, do you think that all parties are sort of on the same page just in terms of how the process is going to look as they kind of think about the rate-making, kind of a slightly different paradigm as it's been in the past? Is there any education that needs to be done, or any twists that we should be kind of aware of leading up to the filing?

Helping balance, infrastructure investment with customer affordability.

At the midpoint that represents over 20% growth from our 225 results driven by the rate case outcome in Missouri.

Turning now to our growth outlook on, slide 11.

This range excludes the pending acquisition of Piedmont, Tennessee business, but does include a full year of anticipated earnings from our gas storage facilities.

Scott Benjamin. We are reaffirming our long-term adjusted earnings per share growth Target of 5 to 7% anchored on the midpoint of our fiscal 2027 guidance range of 5.75 cents per share.

We will revise our earnings expectations, if the outcome of the storage asset sale evaluation materially affects our outlook.

Looking ahead to fiscal 2027, our adjusted EPS guidance range is $5 65 to $5 85, which.

Adam Woodard: Yeah. No. I think you're spot on. It's a case of first impression. All the parties are going to need to work together in order to understand both what the filing requirements would be and how to prosecute inside that paradigm. All parties will work together. That's historically how it's worked here. We look forward to that process and going through it together.

This growth is supported by expected rate based growth of approximately 7% in Missouri, 7 and a half percent in Tennessee. In addition to 6% Equity growth at the Alabama Utilities

This also reflects timely recovery of Investments, across all of our jurisdictions.

Which incorporates a full year of earnings for Piedmont, Tennessee, and excludes the storage facilities due to the expected sale of the assets.

At the midpoint, that's seven 5% growth over the 2026 guidance midpoint and nearly 10% compounded annual growth from our prior long term base of $4 35 in fiscal 2024.

For fiscal 2026. We've issued an adjusted EPS guidance range of 5.25 to 5 dollars per share at the midpoint that represents over 20% growth from our 2025 results driven by the rate case outcome in Missouri.

[Analyst] (BTIG): Great, thanks very much.

This strong growth was driven by execution on infrastructure investment.

Adam Woodard: Thanks, Alex.

Operator: Again, if you have a question, please press star, then one. The next question is from Selman Akyol with Stifel. Please go ahead.

Structured regulatory outcomes and the strategic acquisition of Piedmont, Tennessee to expand our gas utility business.

This range includes the pending acquisition of the pimont Tennessee business. But does include a full year of anticipated earnings from our gas storage facilities.

Turning to our business segment guidance on slide 12, we anticipate our gas utilities will generate between $285 million and $315 million next year due to the combined impact of new Missouri rates effective October 24th and anticipated <unk> revenues from our filing is expected later this month.

[Analyst] (Stifel): Thank you. Good morning. Two quick ones for me. Maybe you're at the higher end of your growth range. Could you remind us just in terms of how you think about the dividend in terms of payout ratios, and sort of growth going forward?

We will revise our earnings expectations, if the outcome of the storage asset sale evaluation materially affects our Outlook.

Adam Woodard: Yeah. Hi, Selman. It's Adam. We would continue to expect the dividend to grow basically at our earnings growth rate. We do target kind of the common payout ratio for utilities in that 55% to 65% range.

Looking ahead to fiscal 2027, our adjusted DPS guidance range is $5.65 to $5.85, which incorporates a full year of earnings from Piedmont, Tennessee, and excludes the storage facilities due to the expected sale of the assets.

<unk> in Alabama, and golf under the RSC mechanism are also expected to benefit earnings beginning in December.

Yeah.

Partially offsetting these favorable items were targeting O&M expense to increase below the rate of inflation. In addition to higher depreciation and interest expense.

At the midpoint that's 7 and a half percent growth over the 2026 guidance midpoint and nearly 10% compounded, annual growth from our prior long-term base of 4 dollars in fiscal 2024.

[Analyst] (Stifel): Very good. As you think about your sort of long-term capital needs, and you gave a 10-year sort of outlook, can you just remind us in terms of how much equity you're thinking about that for you overall?

Turning to gas marketing, we anticipate the adjusted earnings of 19% to $23 million, reflecting expectations under current market conditions.

This strong growth is driven by execution on infrastructure investment, constructive regulatory outcomes, and the strategic acquisition of Piedmont Tennessee to expand our gas utility business.

Midstream adjusted earnings are projected to range between $42 million and $48 million in fiscal 'twenty choice, six including a full year of storage and pipeline operations.

Adam Woodard: Yeah. We did refresh our financing needs, and you can find that at the back of, I think, the earnings deck. We really continue to see a minimal amount of equity per year. Think of that as some additional support for the utility CapEx program. When I say minimal, it's kind of in that $0 to 50 million range, so not anything particularly significant.

Within the storage business, we expect to realize the full benefit of the spire storage west expansion.

Turning to our business segments, guidance on, slide 12. We anticipate our gas utilities, will generate between 185 million and 315 million next year, due to the combined impact of new, Missouri rates effective October 24th in anticipated District revenues from a filing expected later this month.

Offsetting this our higher operating costs increased interest and depreciation expense. In addition to a decline in year over year optimization related earnings.

New rates in Alabama and golf under the RSC mechanism are also expected to benefit earnings beginning in December.

We anticipate the midstream business mix to be 65% storage at <unk> 35 per cent pipeline during fiscal 2026, I would like to note that FERC approved our request to merge the STL and Mo gas pipeline with the merger targeted for completion by January one 2026.

Partially offsetting these favorable items, we are targeting an expense increase below the rate of inflation, in addition to higher depreciation and interest expense.

[Analyst] (Stifel): All right, thank you very much.

Adam Woodard: Thank you, Selman.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Megan McPhail for any closing remarks.

Starting to Gas marketing. We anticipate the adjusted earnings of 19 to 23 million, reflecting expectations on our current market conditions.

And finally corporate and other is anticipated to be in the range of negative $31 billion to negative $37 million an improvement from last year's loss of $38 million, primarily driven by lower interest expense, resulting from reduced long term debt rates.

Operator: Thank you for joining us this morning. We look forward to speaking with many of you in the coming weeks ahead. Have a good day.

Midstream adjusted earnings are projected to range between $42 million and $48 million in fiscal 2026, including a full year of storage and pipeline operations.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Within the storage business, we expect to realize the full benefit of the Spire Storage West expansion.

We've updated our three year financing plan for our base business as outlined on slide 13.

<unk> does not include financing related to the pending acquisition of Piedmont, Tennessee business, which we expect to update along with the conclusion of the storage asset sale evaluation.

Earnings.

Our equity needs through fiscal 2028 are minimal and are expected to be managed through our ATM program.

Turning to the long term debt needs for our current base business. Our three year financing plan assumes refinancing of maturities due to incremental debt of approximately $625 million.

We anticipate the Midstream business mix to be 65% storage and 35% pipeline during fiscal 2026. I would like to note that FERC approved our request to merge the STL and MoGas pipelines with the merger, targeted for completion by January 1, 2026.

This includes the $200 million of first mortgage bonds issued by spire, Missouri last month.

And finally corporate and others anticipated to be in the range of negative, 31 billion to negative, 37 million and improvement from last year's loss of 38 million.

We continue to target <unk> to debt of 15% to 16%, providing 300 basis points of cushion above our S&P and Moody's published downgrade thresholds of 12 and 13% respectively.

Primarily driven by lower interest expense resulting from reduced long-term debt rates.

We've updated our 3-year financing plan for our base business as outlined on slide 13.

With that let me turn it back over to you Scott.

Thanks, Adam as we look ahead to fiscal 2026, our priorities are clear and aligned with spires commitment to operational excellence regulatory engagement financial discipline and strategic growth.

The plan does not include financing related to the pending acquisition of the Piedmont Tennessee business, which we expect to update along with the conclusion of the storage asset sale evaluation,

Our Equity needs through fiscal. 2028 are minimal and are expected to be managed through our ATM program.

First and foremost we remain focused on safely delivering reliable natural gas services to our customers.

We are executing on our capital plan for the year are getting safety and long term infrastructure resilience, while maintaining customer affordability through disciplined cost management.

Turning to the long-term debt needs for our current base business. Our 3-year financing plan as soon as refinancing and maturities and incremental debt of approximately 625 million,

This includes the $100 million of First Mortgage bonds issued by Spire Missouri last month.

On the regulatory front, we're working toward constructive outcomes across all of our jurisdictions. The Keystone will be preparing to file a future test year rate case in Missouri to ensure timely cost recovery and support ongoing investments from.

We continue to Target ffo to debt of 15 to 16% providing 300 basis points of cushion above our S&P and Moody's published downgrade thresholds of 12 and 13% respectively.

With that, let me turn it back over to you, Scott.

From a financial perspective, we are committed to delivering on our fiscal 2026, adjusted EPS guidance of $5.25 to.

To $5 45, while maintaining a strong balance sheet that supports both our growth strategy and long term shareholder value.

Thanks, Adam. As we look ahead to fiscal 2026, our priorities are clear and aligned with Spire's commitment to operational excellence, regulatory engagement, financial discipline, and strategic growth.

First and foremost, we remain focused on safely delivering reliable natural gas services to our customers.

Finally, we are making significant progress with the acquisition of Piedmont, Tennessee business. Our focus is on financing and closing the transaction, which includes completing the evaluation of the sale of our natural gas storage assets, we remain laser focused on ensuring a seamless integration for customers and employees.

We are executing on our capital plan for the year, targeting safety and long-term infrastructure resilience while maintaining customer affordability through disciplined cost management.

Together these priorities position spire to deliver strong operational and financial performance and sustainable long term growth.

On the regulatory front, we're working toward constructive outcomes across all of our jurisdictions. The key step will be preparing to file a future test. Your rate case in Missouri to ensure timely cost recovery and support ongoing investments.

We're confident in our path forward and energized by the opportunities ahead.

Thank you for your continued support and interest in spire, we will now take your questions.

We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad. If you were using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time.

From a financial perspective, we are committed to delivering on our fiscal 2026 adjusted EPS, guidance of 5.25 to 5 dollars while maintaining a strong balance sheet that supports both our growth strategy and long-term shareholder value.

Finally, we are making significant progress with the acquisition of the Pimont, Tennessee business. Our focus is on financing and closing the transaction, which includes completing the evaluation of the sale of our natural gas storage assets.

We will pause momentarily to assemble our roster.

We remain laser-focused on ensuring a seamless integration for customers and employees.

The first question comes from Julien Dumoulin Smith with Jefferies. Please go ahead.

Hi, Good morning team, it's Paul's embargo on for Julian how are you.

Together, these priorities position us to deliver strong operational and financial performance in sustainable long-term growth. We are confident in our path forward and energized by the opportunity ahead.

Hey, good morning.

Thank you for your continued support and interest Inspire. We will now take your questions.

Hi, good morning, Thank you for that update.

The first question I had was just if you could give a little bit more details and color on the long term growth rate and just really are you expecting continued improvement in earned ROE is within that path and just any commentary you can share on like how to think about gas marketing midstream.

We will now begin the question and answer session.

to ask a question, you may press star then 1 on your telephone keypad,

Growth in that profile as well.

If you are using a speaker-phone please pick up your handset before pressing the keys to withdraw your question. Please press star. Then 2 at this time we will pause momentarily to assemble our roster.

Yeah sure. This is Scott. So you know clearly we provided two years of guidance.

On this call and the primary reason for that is there's a lot of things happening within the business over the next 12 months in this fiscal year and then using 27 is a perhaps a cleaner year based on the assumptions that we provided.

The first question comes from Julian deol and Smith with Jeffrey's please go ahead.

Hi, good morning, team, it's Paul zimbardo, on for Julian, how are you?

In the prepared remarks, so to the point when we think about earned returns within the utility coming out of the Missouri rate case, there's a step up associated with that is we've.

<unk> brought capital into base rates.

From a extended period over the last several years, our capital that had not a pass through our <unk> mechanism and so when we think about earned returns in the utility, particularly in Missouri, we're getting closer to our allowed returns in Missouri will file another case in Missouri in the fall of next year.

Hi, good morning, now. Thank you for the update. Uh, the first question I had was just if you could give a little bit more details and color on the long-term growth rate and just really are you expecting, uh, continued Improvement in earned. Are we within that path and just, uh, any commentary you can share on like how to think about Gas marketing, Midstream, uh, growth in that profile as well.

Sure.

And we'll need to prosecute that case that case will be based on a future test year, but that the outcome of that case is not going to be reflected in the FY 'twenty seven time period. So when you think about the guide that we're looking at for FY 'twenty seven.

Earned returns in Missouri will be.

Be a little less than what they are in 26, when we think about that when you think about Alabama the earned returns.

Our close to our allowed as we have a forward looking mechanism there that works annually and we're currently in the process of having it reviewed right now.

Marketing and midstream so as we think about you know.

The guide clearly all of midstream is in the guide for next year, but as we settle Nicole we pulled storage out for FY 'twenty seven and then marketing as you know we Rebase every year and it's not part of our growth story, when we think about how it supports the overall growth picture.

Picture of at least the guide for five to seven.

Capital into base rates. Uh from a extended period. Uh over the last several years, Capital that had not uh pass through our Israelis mechanism. And so when we think about earned returns in the utility particularly in Missouri, we're getting closer to our allowed returns, uh, in Missouri. We'll file another case in Missouri, uh, in the fall of next year, uh, and we'll need to prosecute. That case that case will be based on a future test year, but that the outcome of that case is not going to be reflected in the FY 27 time period. So when you think about the guide that we're looking at for FY, 27, uh the earned returns in Missouri will, um,

Okay, great. So it does sound like you would expect using that 27 base some tail winds on earned ROE.

Based on that that cadence you described if that's fair.

Yes, yes, yes, that's correct okay.

Okay.

Great and then any additional detail on the <unk> to debt target. The 15, 16% just how does that also evolve if we use a 2027 kind of jumping off point, where we're in that range do you expect to be and how does that trend over time, yes.

Paul as we've talked we're at the bottom of the threshold raises now but.

Be a little less than what they are in 26. When we think about that, when we think about Alabama the earned returns, uh, are, uh, close to our allowed. As we have a forward-looking mechanism there, that works annually. And we're currently in the process of having, uh, it reviewed right now, um, marketing and Midstream. Uh, so as we think about, uh, you know, the guy clearly all of Midstream is in the guide for next year. But as we said on the call, uh we pulled storage out for FY, 27. And then marketing, as you know, we rebase every year and it's not part of our growth story. Uh, when we think about how it supports, uh, the overall growth uh, picture or at least the guide for 5 to 7,

But that's a lot of that is premised on just getting back into the right recovery path for Missouri.

And so we see a pretty steady movement up and into that.

Okay, great. It does sound like you would expect, using that 27 basis points, some tailwind on earned hourly is based on that. That cadency described as, that's fair.

And to the middle of the threshold bands, both Moody's and S&P going forward really premised on a on the recoveries in Missouri, but we were also taking I think a.

Yeah, yes, yes. That's correct.

Deliberate financings tack with Tennessee to make sure that that.

Is also credit credit positive as well.

Indeed, yes, okay. Thank you that makes sense I appreciate it.

Thanks, Paul.

The next question is from Gabe Moreen with Mizuho. Please go ahead.

Hey, good morning, everybody I just wanted to ask a quick question on the financing mix and timing.

Adam has anything shifted in your mind I guess since you you announced the acquisition just kind of your latest thoughts you mentioned the minimal common equity issuance just maybe the latest thoughts on the financing mix and timing.

Yeah, No no no big update we you know we continue to see.

Feel confident about taking a very balanced mix of debt and equity, obviously, where we're taking on these assets.

Great. And then any additional detail on the the ffo to debt, Target the 156%. Just, how does that also evolved? If we use a 2027, kind of jumping off point where, where in that range do you expect to be and over time and, and Paul, as we've talked uh, we're we're at the bottom of the threshold range is now. Um, but that's a lot of that is premised on just getting back into the right recovery path for Missouri. Um, and so we we we see a, a, a pretty steady, uh, movement up and into that uh, into the middle of that. The threshold advance for both Moody's and S&P. Going forward really premised on, uh, on the, the recoveries in Missouri. Uh, but we, you know, we're also taking I think a, a very deliberate financing tack with Tennessee to make sure that that uh, is is also uh, credit credit positive as well.

Indeed, yes. Okay, thank you. That makes sense. I appreciate it.

You know.

Thanks Paul.

Debt free so we need to recapitalize rate base at our Tennessee. So you can expect that and then we you know.

The next question is from Gabe moiraine with muo. Please go ahead.

Obviously part of that is our evaluation of the storage business and more to come there. We don't we don't have an announcement to that are there, but that's you know those are terrific assets and we are seeing quite a bit of interest there, but we'll we'll oh, well, we will be making an announcement at some point in the not too distant future.

Hey, good morning everybody. Uh, I just wanted to ask a question on the financing mix and timing, you know, Adam is anything shifted in your mind. I guess since you you announced the acquisition just kind of your latest thoughts. You mentioned the minimal common Equity issue and just just maybe latest thoughts on on the financing mix and timing.

Uh, no.

Gotcha. Thanks Donna.

We showed that and then maybe if I can ask just on your O&M assumptions kind of going forward. It seems like 26 year below and aiming to stick below inflation does that stick for the rest of the plan and I guess, just sort of an overarching basin with the basis with the interaction or sorry, the integration planning going on between the utilities and <unk>.

Best practices are major initiatives that you'd think you'd shared between the two though with I guess keep a lid on O&M.

Hey, Dave This is Scott.

Great question, Yeah, O&M, our guide for this year is I see below the rate of inflation and historically, that's been our guide year over year and that would be actually our performance. Our performance. This year was below the rate of inflation. When you think about the integration activities. We're in the very early stages, but that is our theme.

Yeah, no, no, uh, no big update. We, we know we continue to see a, a, a field confident about taking a, a very balanced mix of debt and Equity. I obviously, we're we're taking on these assets, um, you know, uh, debt-free. So we need to recapitalize rate base at at Tennessee, so you can expect that. Uh, and then we, you know, obviously part of that is, uh, our evaluation of the storage business and, and more to come there. We don't, we don't have an announcement to there, but that's, you know, those are terrific assets. And we, we are seeing quite a bit of interest there. Uh, but we'll, we'll, uh, we'll, we'll, we will be making an announcement at at some point in the not too distant future.

Same as we step into the integration activities anytime we go through these we look to best practices across both organizations and as those that know us or have followed our story for a long time, we have.

Been through this before and when we do that we find things that others do well, we want to make sure we incorporate that into our go forward business. So we'll have more to talk about that as we get little further into the integration planning and.

Gotcha. Thanks Adam. I appreciate that. And then um maybe if I can ask just on your own and M assumptions kind of going forward, it seems like 26 year below and aiming to stick below inflation, does that stick for the rest of the plan and I guess just have an overarching Basin with the basis with the interaction or sorry, the integration planning going on between the utilities.

Any best practices or major initiatives that you think you'd share be between the 2 that would I guess. Keep a lid on on M.

And start working more closely with the assets themselves once we close.

Yeah.

Thanks Scott.

The next question is from Paul Fremont with Ladenburg. Please go ahead.

Thanks, Hi, I guess my first question is with.

With the future test year rate adjustment, taking place in 'twenty eight.

<unk> 28, a be a year that falls outside of that five to seven range.

Given the fact that you'll be further potentially narrowing your you're under earning in Missouri.

Yeah, Hey, Hey, Paul It's Scott, maybe Adam and I will tag team. This.

A couple of things to think about when you when we pivot to the future test year, we're going to bring forward some capital.

Are, uh, same as we step into the integration activities. Anytime we go through these, we look to best practices across um both organizations and uh as those that know us or have followed our story for a long time. We have been through this before and uh, when we do that, we find things that others do well. We want to make sure we incorporate that into our go forward business. So we'll have more to talk about that as we get a little further into the integration planning uh and start working more closely, uh, with the assets themselves. Once we close

Things up.

Into that process and so we'll have to get through the process before we know what that will be as well, but within the range of what we're providing.

The next question is from Paul. Fremont with Ladenburg. Please go ahead.

We're basing that based on what we know right now and the best Best guess that we have yeah. We don't we don't get too far ahead of ratemaking.

Given that that's another couple of you know there's a couple of years out, but I think your your implication Paul of a you.

You know a more fully earned ROE.

Thanks uh I guess my first question is uh with the future uh test year uh rate adjustment taking place in 28 could 28 uh be uh a year that falls outside of that 5 to 7 range. Uh given the fact that you'll be further potentially narrowing your your under earning in Missouri.

You usually the application around future test year. So we don't want to we don't want to get ahead of that but that's we would expect certainly some improvement there.

And it sounds to me like Youre more confident about.

About your decision to sell storage I think on the last call you had indicated.

That would depend on on levels of interest and I assume the levels of interest are strong enough that you now feel that it will be solved.

Yeah. Hey, hey Paul. This is Scott, maybe Adam and I will both tag team this you know I think a couple things to think about uh when you when we pivot to Future tests here, we're going to bring forward some Capital uh into that process and so we'll have to get through the process before we know what that will be uh, as well but uh within the range of what we're pro providing.

Paul we're still under evaluation process as I've mentioned.

And earlier I E. We do we have seen a.

Quite a bit of interest and strong interest in the assets, but more to come there will make it will make an announcement once we get to a conclusion of that <unk> of that process.

Great and you're expecting to make an announcement one way or another between now and the end of the year right.

Uh, we're basing that based on what we know right now and the best best. Guess that we have. Yeah, we don't we don't get too far ahead of rain making, uh, given that that's another couple, you know, that's a couple years out but I I think your your implication Paul of a, uh, you know, a more fully earned Roe is, is you usually the implication around future tests year? So we don't want to, we don't want to get ahead of that. But that's, uh, we would expect, you know, certainly some improvement there.

Yes, we're targeting by the end of the calendar year.

And then just going back to.

To sort of your original comments, if you were to sell.

And it's it's sounds to me like you're more confident, uh, about your decision uh, to sell storage. I think, uh, on the last call, you know, you had indicated

This storage.

Right.

The remaining a sort of balance of equity and that has that changed since our since your last.

Um, that would depend on on levels of Interest. I assume the levels of Interest are strong enough that you now feel that it will be sold

Carl.

Well that that is that's certainly figures into the mix of financing. So that I believe we will I think.

Uh, you know, we're Paul, we're still on the evaluation process. I I I as I mentioned earlier, I I we do we have seen uh you know, quite a bit of interest and and strong interest in in the assets but more to come there, we'll make it. We'll make an announcement once we get to a conclusion of that of that process.

Once we get to the point of an announcement, we would shed some more light on that.

Okay and last question can you be more specific in terms in other words, if you're not issuing straight equity what else would sort of fall into the category of fulfilling your equity needs.

Great. And you're expecting to make an announcement one way or another between now and the end of the year, right?

Yeah, we're targeting by the end of the calendar year.

And then just going back to sort of your original comments, if you were to sell.

I mean, there's other there's certainly other securities.

Securities.

You know that we that we would have access to markets to that would provide equity like coverage there whether those are equity linked securities.

Uh, the storage, uh, the remaining, uh, sort of balance of equity and debt, has that changed since, uh, since your last, uh,

uh, call.

Hybrids or what have you, but there you know there I think there are some other options there.

And junior subordinated debt is that included as well.

Yeah, I'm using that science with along with that.

Uh, well that that is uh, that's certainly figures into the mix of of financing. So that we we will I think uh, once we get to the point of an announcement, we would uh, shed some more light on that.

I would use that terminology with the hybrid yeah got it okay.

That's it for me congratulations.

Thanks, Paul Paul.

The next question is from Alex Kania with BTG. Please go ahead.

Okay. And last question, can you be more specific in terms of, in other words, if you're not issuing straight equity, what else would sort of fall into the category of fulfilling your equity needs?

Good morning, Thanks for taking my question.

Just would you mind reminding me again, just on the within midstream just the rough split I think it was two one third two third on your kind of pipelines versus storage and would that would that be like earnings or would it be EBITDA as well as fair.

Uh, I mean, there's other there, there, there are certainly other, uh, Securities uh, extern. You know that we that we would have access to markets to. That would provide Equity like uh, coverage there. Whether those are Equity link Securities or

Yeah. It's it's one third pipeline two thirds storage as kind of a split.

A hybrids or, or, or what have you? But they're you know, they're I think there are some other options there.

And Junior subordinated. Dad is that included as well?

And depending on which way you cut the data it's about the same so whether its EBITDA or earnings.

Yeah.

Great. Thanks, and then maybe.

Yeah, I I'm using that sign, you know, with along with that, that that I would use that terminology with a hybrid. Yeah. Got it. Okay.

We're just taking kind of a step too far down that path of an asset sale, but just you know if if there was a decision to move forward with the sale does that does that is that would that be big enough to sort of change your kind of long term balance sheet targets and thresholds and things like that as you look forward.

That's it for me, congratulations.

The next question is from Alex, Kenya with btig. Please go ahead.

Good morning. Uh, thanks for taking my question. Um,

Given there was only unregulated assets.

Yeah, I mean, it's too early to comment that's part of the evaluation process there'll be more as we announced the conclusion of the evaluation process.

uh, just would you mind reminding me again? Um, just on the, you know, within Midstream just the rough split. I think it was 2 1/3 2/3 on. Um, you kind of pipelines versus storage and and would that would that be like earnings or would it be ebiz? Well, it's fair.

Oh, great. Thanks, and my last question just is on the transition to the fourth test here in Missouri.

Do you anticipate I guess do you think that all parties are sort of on the same page just in terms of how that process is going to look as they kind of think about making kind of a slightly different paradigm. This had been in the past is there any education that needs to be done or any twists that we should be kind of aware of leading up to the filing.

Earnings.

Yeah, no. So I think you're spot on it's a case of first impression and so all the parties are going to need to work together in order to understand.

Great, thanks. And then, um, maybe you know, I maybe maybe we're just taking kind of a step too far down that down, the path of an asset sale. But just, you know, if if there was a decision to, to move forward with the sale, um, does that does that kind of, is that would that be, you know, big enough to sort of change? You know, your, your kind of long-term balance sheet, targets thresholds and things like that, as, as you look forward.

You know, given point and regulated assets.

You know what the filing requirements would be and how to prosecute inside that paradigm.

Yeah, I mean, too early to comment. That's part of the evaluation process. There'll be more as we announce the conclusion of the evaluation process.

So.

All parties will work together, that's historically, how it's worked here and so we look forward to that process and going through it together.

Great. Thanks very much.

Thanks Al.

Again, if you have a question. Please press Star then one.

The next question is from Selman <unk> with Stifel. Please go ahead.

Thank you good morning, two quick ones for me maybe.

Okay, great. Thanks. And my last question just is, um, you know, on the transition to the the forward test here in Missouri. Uh, you know, do you anticipate is or I guess a, you know, do you think that all parties are sort of you know, on the same page just in terms of how the process is going to look as they, you know, kind of think about you know the rate making kind of a slightly different Paradigm? Has it been in the past? Is there any education that needs to be done or um you know any twists that we should be kind of aware of leading up to the filing?

You're at the higher end of your growth range and so could you remind us just in terms of how you think about the dividend in terms of payout ratios and.

You know sort of growth going forward.

I felt that it's Adam.

We would continue to expect the dividend to grow basically at.

Our earnings growth rate and we do we do target the kind of the common payout ratio for utilities in that 55% to 65% range.

Yeah, no, I I so I think you're spot on. It's a case of first impression and so, all the parties are going to need to work together in order to understand, um, both you know what, the filing requirements would be and how the prosecute inside that Paradigm. Uh, and so, um, you know, all parties will work together. That's historically how it's worked here. And so, we look forward to that process, uh and going through it together.

Great. Thanks very much.

Thanks Alex.

Very good and then also as you think about your sort of long term.

again, if you have a question, please press star then 1

Capital needs and he gave it 10 year sort of.

The next question is from Selman. AIO with Stifel. Please go ahead.

Outlook can you just remind us in terms of how much equity you're thinking about that for you.

Overall.

Yeah. So we did we did.

Refresh our financing needs in this and you can find that at the back of I think the earnings deck, but we really continue to see a minimal amount of equity per year.

Thank you, good morning. Um, two quick ones for me, maybe. Uh, you're at the higher end of your growth range, and so could you remind us just in terms of how you think about the dividend in terms of payout ratios?

You know, sort of growth going forward.

It's Adam.

Continue to expect. Uh,

So think of that as some.

Additional support for the utility Capex program, but you know what.

What I'd say minimal it's kind of in that zero to $50 million range, so not not anything anything particularly significant.

Our earnings growth rate. Um, and we do, we do Target, the kind of the common, uh, payout ratio for Utilities in that 55 to 65% range.

Very good. And then also, as you think about your sort of long-term,

Alright, Thank you very much.

Thank you Selman Selman.

Capital needs, um, and you gave a 10-year sort of

This concludes our question and answer session.

I'd like to turn the conference back over to Megan Mcphail for any closing remarks.

Outlook, can you just remind us, in terms of how much equity you're thinking about for you?

Overall.

Thank you for joining us. This morning, we look forward to speaking with many of you in the coming weeks ahead I have a good day.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Yeah, so we did. We did uh uh re re re uh refresh our, our financing needs and this uh, and you can find that at the back of, I think the the earnings stack. But we really continue to see a minimal amount of equity, uh, per per year that, you know, some think of that as some, uh, additional support for the, the utility capex program. But, uh, you know, when I say minimal, it's kind of in that zero to 50 million dollar,

Power range. So not not anything uh, anything particularly significant

All right. Thank you very much.

Thank you so much.

This concludes our question-and-answer session. I would like to turn the conference back over to Megan McPhail for any closing remarks.

Thank you for joining us this morning. We look forward to speaking with many of you in the coming days.

Weeks ahead, have a good day.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.