Note 10 - Information by Operating Segment

6 Months Ended

Mar. 31, 2023

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 March 31, 2023
Operating Revenues:
Revenues from external customers	$	1,054.4	$	60.6	$	8.2	$	0.2		$	—		$	1,123.4
Intersegment revenues		0.1		—		8.3		3.9			(12.3	)		—
Total Operating Revenues		1,054.5		60.6		16.5		4.1			(12.3	)		1,123.4
Operating Expenses:
Natural gas		543.3		51.5		—		—			(8.3	)		586.5
Operation and maintenance		119.3		5.7		6.2		4.9			(4.0	)		132.1
Depreciation and amortization		60.2		0.4		2.0		—			—			62.6
Taxes, other than income taxes		80.4		0.6		0.8		0.1			—			81.9
Total Operating Expenses		803.2		58.2		9.0		5.0			(12.3	)		863.1
Operating Income (Loss)	$	251.3	$	2.4	$	7.5	$	(0.9	)	$	—		$	260.3
Net Economic Earnings (Loss)	$	183.9	$	21.8	$	4.2	$	(10.7	)	$	—		$	199.2

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Three Months Ended March 31, 2022
Operating Revenues:
Revenues from external customers	$	817.4	$	59.4	$	4.0	$	0.1		$	—		$	880.9
Intersegment revenues		—		—		9.8		4.2			(14.0	)		—
Total Operating Revenues		817.4		59.4		13.8		4.3			(14.0	)		880.9
Operating Expenses:
Natural gas		356.0		45.8		—		—			(9.8	)		392.0
Operation and maintenance		104.2		3.2		5.8		4.2			(4.2	)		113.2
Depreciation and amortization		56.5		0.4		1.9		0.1			—			58.9
Taxes, other than income taxes		70.3		0.4		0.9		—			—			71.6
Total Operating Expenses		587.0		49.8		8.6		4.3			(14.0	)		635.7
Operating Income	$	230.4	$	9.6	$	5.2	$	—		$	—		$	245.2
Net Economic Earnings (Loss)	$	169.2	$	14.4	$	3.0	$	(5.6	)	$	—		$	181.0

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Six Months Ended March 31, 2023
Operating Revenues:
Revenues from external customers	$	1,787.4	$	134.7	$	15.0	$	0.3		$	—		$	1,937.4
Intersegment revenues		0.1		—		16.7		7.8			(24.6	)		—
Total Operating Revenues		1,787.5		134.7		31.7		8.1			(24.6	)		1,937.4
Operating Expenses:
Natural gas		944.9		77.5		—		—			(16.7	)		1,005.7
Operation and maintenance		239.2		12.0		12.0		8.9			(7.9	)		264.2
Depreciation and amortization		119.9		0.7		3.9		0.2			—			124.7
Taxes, other than income taxes		130.3		0.7		1.2		0.1			—			132.3
Total Operating Expenses		1,434.3		90.9		17.1		9.2			(24.6	)		1,526.9
Operating Income (Loss)	$	353.2	$	43.8	$	14.6	$	(1.1	)	$	—		$	410.5
Net Economic Earnings (Loss)	$	246.8	$	47.5	$	8.0	$	(18.0	)	$	—		$	284.3

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Six Months Ended March 31, 2022
Operating Revenues:
Revenues from external customers	$	1,320.9	$	107.3	$	7.8	$	0.3		$	—		$	1,436.3
Intersegment revenues		—		—		18.9		7.7			(26.6	)		—
Total Operating Revenues		1,320.9		107.3		26.7		8.0			(26.6	)		1,436.3
Operating Expenses:
Natural gas		566.2		93.8		—		—			(18.8	)		641.2
Operation and maintenance		211.5		5.9		11.6		8.4			(7.8	)		229.6
Depreciation and amortization		111.1		0.7		3.8		0.2			—			115.8
Taxes, other than income taxes		107.3		0.4		1.5		—			—			109.2
Total Operating Expenses		996.1		100.8		16.9		8.6			(26.6	)		1,095.8
Operating Income (Loss)	$	324.8	$	6.5	$	9.8	$	(0.6	)	$	—		$	340.5
Net Economic Earnings (Loss)	$	236.4	$	14.9	$	5.5	$	(13.2	)	$	—		$	243.6

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

	Three Months Ended March 31,						Six Months Ended March 31,
	2023			2022			2023			2022
Net Income	$	179.2		$	173.6		$	270.2		$	229.3
Adjustments, pre-tax:
Fair value and timing adjustments		26.6			9.9			18.8			13.6
Income tax adjustments		(6.6	)		(2.5	)		(4.7	)		0.7
Net Economic Earnings	$	199.2		$	181.0		$	284.3		$	243.6

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

	March 31,			September 30,			March 31,
	2023			2022			2022
Total Assets:
Gas Utility	$	8,317.6		$	8,042.8		$	7,684.1
Gas Marketing		335.0			638.7			431.1
Midstream		506.2			446.0			420.3
Other		1,959.1			2,449.2			2,123.5
Eliminations		(1,068.9	)		(1,493.0	)		(1,257.7	)
Total Assets	$	10,049.0		$	10,083.7		$	9,401.3