Note 9 - Information by Operating Segment

3 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

The Company has three reportable segments: Gas Utility, Gas Marketing, and Midstream. The Gas Utility segment is the aggregation of the operations of the Utilities. The Gas Marketing segment includes the results of Spire Marketing, a subsidiary engaged in the non-regulated marketing of natural gas and related activities, including utilizing natural gas storage contracts for providing natural gas sales. The Midstream segment includes Spire STL Pipeline, a subsidiary of Spire providing interstate natural gas pipeline transportation services, and Spire Storage, a subsidiary of Spire providing interstate natural gas storage services. Other components of the Company’s consolidated information include Spire's subsidiaries engaged in the operation of a propane pipeline and risk management, among other activities, and unallocated corporate items, including certain debt and associated interest costs.

Accounting policies are described in Note 1, Summary of Significant Accounting Policies. Intersegment transactions include sales of natural gas from Spire Marketing to Spire Missouri, Spire Alabama and Spire Storage, sales of natural gas from Spire Missouri to Spire Marketing, propane transportation services provided by Spire NGL Inc. to Spire Missouri, and natural gas transportation services provided by Spire STL Pipeline to Spire Missouri.

Management evaluates the performance of the operating segments based on the computation of net economic earnings. Net economic earnings exclude from reported net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of impairments and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions.

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Three Months Ended December 31, 2022
Operating Revenues:
Revenues from external customers	$	733.0	$	74.1	$	6.8	$	0.1		$	—		$	814.0
Intersegment revenues		—		—		8.4		3.9			(12.3	)		—
Total Operating Revenues		733.0		74.1		15.2		4.0			(12.3	)		814.0
Operating Expenses:
Natural gas		401.6		26.0		—		—			(8.4	)		419.2
Operation and maintenance		119.9		6.3		5.8		4.0			(3.9	)		132.1
Depreciation and amortization		59.7		0.3		1.9		0.2			—			62.1
Taxes, other than income taxes		49.9		0.1		0.4		—			—			50.4
Total Operating Expenses		631.1		32.7		8.1		4.2			(12.3	)		663.8
Operating Income (Loss)	$	101.9	$	41.4	$	7.1	$	(0.2	)	$	—		$	150.2
Net Economic Earnings (Loss)	$	62.9	$	25.7	$	3.8	$	(7.3	)	$	—		$	85.1

	Gas Utility		Gas Marketing			Midstream		Other			Eliminations			Consolidated
Three Months Ended December 31, 2021
Operating Revenues:
Revenues from external customers	$	503.5	$	47.9		$	3.8	$	0.2		$	—		$	555.4
Intersegment revenues		—		—			9.1		3.5			(12.6	)		—
Total Operating Revenues		503.5		47.9			12.9		3.7			(12.6	)		555.4
Operating Expenses:
Natural gas		210.2		48.0			—		—			(9.0	)		249.2
Operation and maintenance		107.3		2.7			5.8		4.2			(3.6	)		116.4
Depreciation and amortization		54.6		0.3			1.9		0.1			—			56.9
Taxes, other than income taxes		37.0		—			0.6		—			—			37.6
Total Operating Expenses		409.1		51.0			8.3		4.3			(12.6	)		460.1
Operating Income (Loss)	$	94.4	$	(3.1	)	$	4.6	$	(0.6	)	$	—		$	95.3
Net Economic Earnings (Loss)	$	67.2	$	0.5		$	2.5	$	(7.6	)	$	—		$	62.6

The following table reconciles the Company’s net economic earnings to net income.

	Three Months Ended December 31,
	2022			2021
Net Income	$	91.0		$	55.7
Adjustments, pre-tax:
Fair value and timing adjustments		(7.8	)		3.7
Income tax adjustments		1.9			3.2
Net Economic Earnings	$	85.1		$	62.6

The Company’s total assets by segment were as follows:

	December 31,			September 30,			December 31,
	2022			2022			2021
Total Assets:
Gas Utility	$	8,355.1		$	8,042.8		$	7,882.1
Gas Marketing		492.4			638.7			424.4
Midstream		466.6			446.0			421.7
Other		2,882.8			2,449.2			1,995.9
Eliminations		(1,869.2	)		(1,493.0	)		(1,073.6	)
Total Assets	$	10,327.7		$	10,083.7		$	9,650.5