Note 10 - Information by Operating Segment

9 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10. INFORMATION BY OPERATING SEGMENT

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, subsidiaries of Spire providing interstate and intrastate 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, storage services from Spire Storage to Spire Marketing, and natural gas transportation services provided by Spire STL Pipeline to Spire Missouri and Spire Marketing. 

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 June 30, 2023
Operating Revenues:
Revenues from external customers	$	387.5		$	23.1		$	7.7	$	0.2		$	—		$	418.5
Intersegment revenues		0.3			—			9.7		4.1			(14.1	)		—
Total Operating Revenues		387.8			23.1			17.4		4.3			(14.1	)		418.5
Operating Expenses:
Natural gas		154.6			25.3			—		—			(10.1	)		169.8
Operation and maintenance		111.7			4.2			8.1		5.5			(4.0	)		125.5
Depreciation and amortization		61.7			0.3			2.1		0.2			—			64.3
Taxes, other than income taxes		45.9			0.4			0.7		(0.1	)		—			46.9
Total Operating Expenses		373.9			30.2			10.9		5.6			(14.1	)		406.5
Operating Income (Loss)	$	13.9		$	(7.1	)	$	6.5	$	(1.3	)	$	—		$	12.0
Net Economic (Loss) Earnings	$	(12.3	)	$	(2.5	)	$	3.6	$	(7.4	)	$	—		$	(18.6	)

	Gas Utility		Gas Marketing			Midstream		Other			Eliminations			Consolidated
Three Months Ended June 30, 2022
Operating Revenues:
Revenues from external customers	$	377.4	$	64.1		$	6.3	$	0.2		$	—		$	448.0
Intersegment revenues		—		—			8.3		3.9			(12.2	)		—
Total Operating Revenues		377.4		64.1			14.6		4.1			(12.2	)		448.0
Operating Expenses:
Natural gas		144.5		67.1			—		—			(8.3	)		203.3
Operation and maintenance		95.0		3.2			4.8		3.2			(3.9	)		102.3
Depreciation and amortization		58.1		0.3			1.8		0.2			—			60.4
Taxes, other than income taxes		43.0		0.4			0.6		0.1			—			44.1
Total Operating Expenses		340.6		71.0			7.2		3.5			(12.2	)		410.1
Operating Income (Loss)	$	36.8	$	(6.9	)	$	7.4	$	0.6		$	—		$	37.9
Net Economic Earnings (Loss)	$	4.2	$	0.4		$	4.3	$	(4.8	)	$	—		$	4.1

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Nine Months Ended June 30, 2023
Operating Revenues:
Revenues from external customers	$	2,174.9	$	157.8	$	22.7	$	0.5		$	—		$	2,355.9
Intersegment revenues		0.4		—		26.4		11.9			(38.7	)		—
Total Operating Revenues		2,175.3		157.8		49.1		12.4			(38.7	)		2,355.9
Operating Expenses:
Natural gas		1,099.5		102.8		—		—			(26.8	)		1,175.5
Operation and maintenance		350.9		16.2		20.1		14.4			(11.9	)		389.7
Depreciation and amortization		181.6		1.0		6.0		0.4			—			189.0
Taxes, other than income taxes		176.2		1.1		1.9		—			—			179.2
Total Operating Expenses		1,808.2		121.1		28.0		14.8			(38.7	)		1,933.4
Operating Income (Loss)	$	367.1	$	36.7	$	21.1	$	(2.4	)	$	—		$	422.5
Net Economic Earnings (Loss)	$	234.5	$	45.0	$	11.6	$	(25.4	)	$	—		$	265.7

	Gas Utility		Gas Marketing			Midstream		Other			Eliminations			Consolidated
Nine Months Ended June 30, 2022
Operating Revenues:
Revenues from external customers	$	1,698.3	$	171.4		$	14.1	$	0.5		$	—		$	1,884.3
Intersegment revenues		—		—			27.2		11.6			(38.8	)		—
Total Operating Revenues		1,698.3		171.4			41.3		12.1			(38.8	)		1,884.3
Operating Expenses:
Natural gas		710.7		160.9			—		—			(27.1	)		844.5
Operation and maintenance		306.5		9.1			16.4		11.6			(11.7	)		331.9
Depreciation and amortization		169.2		1.0			5.6		0.4			—			176.2
Taxes, other than income taxes		150.3		0.8			2.1		0.1			—			153.3
Total Operating Expenses		1,336.7		171.8			24.1		12.1			(38.8	)		1,505.9
Operating Income (Loss)	$	361.6	$	(0.4	)	$	17.2	$	—		$	—		$	378.4
Net Economic Earnings (Loss)	$	240.6	$	15.3		$	9.8	$	(18.0	)	$	—		$	247.7

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

	Three Months Ended June 30,						Nine Months Ended June 30,
	2023			2022			2023			2022
Net (Loss) Income	$	(21.6	)	$	(1.4	)	$	248.6		$	227.9
Adjustments, pre-tax:
Fair value and timing adjustments		3.4			7.3			22.2			20.9
Acquisition activities		0.5			—			0.5			—
Income tax adjustments		(0.9	)		(1.8	)		(5.6	)		(1.1	)
Net Economic (Loss) Earnings	$	(18.6	)	$	4.1		$	265.7		$	247.7

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

	June 30,			September 30,			June 30,
	2023			2022			2022
Total Assets:
Gas Utility	$	8,283.2		$	8,042.8		$	7,854.7
Gas Marketing		316.6			638.7			595.5
Midstream		533.3			446.0			430.9
Other		2,134.1			2,449.2			2,222.0
Eliminations		(1,229.7	)		(1,493.0	)		(1,319.2	)
Total Assets	$	10,037.5		$	10,083.7		$	9,783.9