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Note 8 - Fair Value Measurements
 3 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

8. FAIR VALUE MEASUREMENTS

 

The information presented in the following tables categorizes the assets and liabilities in the balance sheets that are accounted for at fair value on a recurring basis in periods subsequent to initial recognition.

 

The mutual funds included in Level 1 are valued based on exchange-quoted market prices of individual securities.

 

Derivative instruments included in Level 1 are valued using quoted market prices on the New York Mercantile Exchange (NYMEX) or the Intercontinental Exchange (ICE), and also certain natural gas commodity contracts. Derivative instruments classified in Level 2 include derivatives that are valued using broker or dealer quotation services or published benchmarks whose prices are derived principally from, or are corroborated by, observable market inputs. Also included in Level 2 are certain derivative instruments that have values that are similar to, and correlate with, quoted prices for exchange-traded instruments or in active markets. Derivative instruments included in Level 3 are valued using generally unobservable inputs that are based upon the best information available and reflect management’s assumptions about how market participants would price the asset or liability. There were no Level 3 balances as of December 31, 2023, September 30, 2023, and December 31, 2022. The Company’s and the Utilities’ policy is to recognize transfers between the levels of the fair value hierarchy, if any, as of the beginning of the interim reporting period in which circumstances change or events occur to cause the transfer.

 

The mutual funds are included in “Other Investments” on the Company’s balance sheets and in “Other Property and Investments” on Spire Missouri’s balance sheets. Changes in their recurring valuations are recorded as unrealized gains or losses in the corresponding income statement. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the balance sheets when a legally enforceable netting agreement exists between the Company, Spire Missouri, or Spire Alabama and the counterparty to a derivative contract.

 

Spire

   

Quoted Prices in Active Markets (Level 1)

    

Significant Observable Inputs (Level 2)

    

Effects of Netting and Cash Margin Receivables /Payables

    

Total

  

As of December 31, 2023

                                

ASSETS

                                

Gas Utility:

                                

U.S. stock/bond mutual funds

   $ 22.0     $ —     $ —     $ 22.0  

NYMEX/ICE natural gas contracts

     4.7       —       (4.7 )     —  

Gas Marketing:

                                

NYMEX/ICE natural gas contracts

     13.2       —       (13.2 )     —  

Natural gas commodity contracts

     —       45.5       (1.4 )     44.1  

Other:

                                

U.S. stock/bond mutual funds

     14.6       —       —       14.6  

U.S. bonds

     21.6       —       —       21.6  

Global bonds

     1.4       —       —       1.4  

Interest rate swaps

     —       22.7       —       22.7  

Total

   $ 77.5     $ 68.2     $ (19.3 )   $ 126.4  

LIABILITIES

                                

Gas Utility:

                                

NYMEX/ICE natural gas contracts

   $ 60.7     $ —     $ (60.7 )   $ —  

Gasoline and heating oil contracts

     —       0.4       (0.4 )     —  

Gas Marketing:

                                

NYMEX/ICE natural gas contracts

     32.7       —       (32.7 )     —  

Natural gas commodity contracts

     —       24.5       (1.4 )     23.1  

Other:

                                

Interest rate swaps

     —       2.0       —       2.0  

Total

   $ 93.4     $ 26.9     $ (95.2 )   $ 25.1  

 

   

Quoted Prices in Active Markets (Level 1)

    

Significant Observable Inputs (Level 2)

    

Effects of Netting and Cash Margin Receivables /Payables

    

Total

  

As of September 30, 2023

                                

ASSETS

                                

Gas Utility:

                                

U.S. stock/bond mutual funds

   $ 20.4     $ —     $ —     $ 20.4  

NYMEX/ICE natural gas contracts

     6.3       —       (6.3 )     —  

Gasoline and heating oil contracts

     —       0.1       (0.1 )     —  

Gas Marketing:

                                

NYMEX/ICE natural gas contracts

     10.1       —       (10.1 )     —  

Natural gas commodity contracts

     —       36.7       (3.6 )     33.1  

Other:

                                

U.S. stock/bond mutual funds

     37.6       —       —       37.6  

Interest rate swaps

     —       44.2       —       44.2  

Total

   $ 74.4     $ 81.0     $ (20.1 )   $ 135.3  

LIABILITIES

                                

Gas Utility:

                                

NYMEX/ICE natural gas contracts

   $ 50.8     $ —     $ (44.0 )   $ 6.8  

Gas Marketing:

                                

NYMEX/ICE natural gas contracts

     21.8       —       (21.8 )     —  

Natural gas commodity contracts

     —       27.6       (3.6 )     24.0  

Total

   $ 72.6     $ 27.6     $ (69.4 )   $ 30.8  
                                 

As of December 31, 2022

                                

ASSETS

                                

Gas Utility:

                                

U.S. stock/bond mutual funds

   $ 19.5     $ —     $ —     $ 19.5  

NYMEX/ICE natural gas contracts

     0.4       —       (0.4 )     —  

Gasoline and heating oil contracts

     0.2       —       (0.2 )     —  

Gas Marketing:

                                

NYMEX/ICE natural gas contracts

     52.0       —       (52.0 )     —  

Natural gas commodity contracts *

     —       92.9       (13.2 )     79.7  

Other:

                                

U.S. stock/bond mutual funds

     28.3       —       —       28.3  

Interest rate swaps *

     —       61.4       —       61.4  

Total

   $ 100.4     $ 154.3     $ (65.8 )   $ 188.9  

LIABILITIES

                                

Gas Utility:

                                

NYMEX/ICE natural gas contracts

   $ 35.7     $ —     $ (35.7 )   $ —  

Gasoline and heating oil contracts

     0.2       —       (0.2 )     —  

Gas Marketing:

                                

NYMEX/ICE natural gas contracts

     58.4       —       (58.4 )     —  

Natural gas commodity contracts *

     —       71.1       (13.2 )     57.9  

Other:

                                

Interest rate swaps *

     —       0.8       —       0.8  

Total

   $ 94.3     $ 71.9     $ (107.5 )   $ 58.7  

 

* Subsequent to the issuance of its consolidated financial statements for the quarter ended December 31, 2022, during the fourth quarter of fiscal 2023, the Company identified an error in the fair value level presentation for certain line items in the Fair Value Measurements table. The presentation has been corrected to reflect the impacted line items in Level 2 rather than Level 1 as of December 31, 2022. This immaterial correction did not impact the reported fair values or the consolidated financial statements.

 

Spire Missouri

   

Quoted Prices in Active Markets (Level 1)

    

Significant Observable Inputs (Level 2)

    

Effects of Netting and Cash Margin Receivables /Payables

    

Total

  

As of December 31, 2023

                                

ASSETS

                                

U.S. stock/bond mutual funds

   $ 22.0     $ —     $ —     $ 22.0  

NYMEX/ICE natural gas contracts

     4.7       —       (4.7 )     —  

Total

   $ 26.7     $ —     $ (4.7 )   $ 22.0  

LIABILITIES

                                

NYMEX/ICE natural gas contracts

   $ 60.7     $ —     $ (60.7 )   $ —  

Gasoline and heating oil contracts

     —       0.4       (0.4 )     —  

Total

   $ 60.7     $ 0.4     $ (61.1 )   $ —  
                                 

As of September 30, 2023

                                

ASSETS

                                

U.S. stock/bond mutual funds

   $ 20.4     $ —     $ —     $ 20.4  

NYMEX/ICE natural gas contracts

     6.3       —       (6.3 )     —  

Gasoline and heating oil contracts

     —       0.1       (0.1 )     —  

Total

   $ 26.7     $ 0.1     $ (6.4 )   $ 20.4  

LIABILITIES

                                

NYMEX/ICE natural gas contracts

   $ 50.8     $ —     $ (44.0 )   $ 6.8  
                                 

As of December 31, 2022

                                

ASSETS

                                

U.S. stock/bond mutual funds

   $ 19.5     $ —     $ —     $ 19.5  

NYMEX/ICE natural gas contracts

     0.4       —       (0.4 )     —  

Gasoline and heating oil contracts

     0.2       —       (0.2 )     —  

Total

   $ 20.1     $ —     $ (0.6 )   $ 19.5  

LIABILITIES

                                

NYMEX/ICE natural gas contracts

   $ 35.7     $ —     $ (35.7 )   $ —  

Gasoline and heating oil contracts

     0.2       —       (0.2 )     —  

Total

   $ 35.9     $ —     $ (35.9 )   $ —