Note 10 - Information by Operating Segment

6 Months Ended

Mar. 31, 2024

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 Storage, Spire STL Pipeline and Spire MoGas Pipeline, which are subsidiaries engaged in the storage and transportation of natural gas. 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, storage services from Spire Storage to Spire Missouri and Spire Marketing, and natural gas transportation services provided by Spire STL Pipeline and Spire MoGas 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 March 31, 2024
Revenues from external customers	$	1,072.4	$	46.0	$	10.0	$	0.1		$	—		$	1,128.5
Intersegment revenues		0.3		—		11.5		4.0			(15.8	)		—
Total Operating Revenues		1,072.7		46.0		21.5		4.1			(15.8	)		1,128.5
Depreciation and amortization expense		65.4		0.4		3.0		0.1			—			68.9
Interest expense		38.3		—		2.0		22.3			(10.4	)		52.2
Income tax expense (benefit)		41.7		7.6		1.5		(1.4	)		—			49.4
Net economic earnings (loss)		188.0		15.5		3.8		(10.7	)		—			196.6
Capital expenditures		137.3		—		46.0		—			(0.5	)		182.8

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Three Months Ended March 31, 2023
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
Depreciation and amortization expense		60.2		0.4		2.0		—			—			62.6
Interest expense		35.5		—		1.9		17.0			(7.2	)		47.2
Income tax expense (benefit)		38.9		0.8		1.5		(0.3	)		—			40.9
Net economic earnings (loss)		183.9		21.8		4.2		(10.7	)		—			199.2
Capital expenditures		143.7		—		9.3		—			—			153.0

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Six Months Ended March 31, 2024
Revenues from external customers	$	1,787.6	$	82.3	$	15.0	$	0.2		$	—		$	1,885.1
Intersegment revenues		0.3		—		21.4		8.0			(29.7	)		—
Total Operating Revenues		1,787.9		82.3		36.4		8.2			(29.7	)		1,885.1
Depreciation and amortization		129.6		0.8		5.3		0.2			—			135.9
Interest Expense		77.3		—		3.8		46.3			(24.6	)		102.8
Income tax expense (benefit)		57.4		11.4		2.1		(0.5	)		—			70.4
Net Economic Earnings (Loss)		263.8		22.7		6.2		(13.4	)		—			279.3
Capital expenditures		312.2		—		98.0		—			(0.9	)		409.3

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Six Months Ended March 31, 2023
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
Depreciation and amortization		119.9		0.7		3.9		0.2			—			124.7
Interest Expense		67.6		—		3.8		36.5			(17.1	)		90.8
Income tax expense (benefit)		51.3		11.3		2.9		(3.0	)		—			62.5
Net Economic Earnings (Loss)		246.8		47.5		8.0		(18.0	)		—			284.3
Capital expenditures		290.0		0.2		17.0		0.6			—			307.8

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

	Three Months Ended March 31,						Six Months Ended March 31,
	2024			2023			2024			2023
Net Income	$	204.3		$	179.2		$	289.4		$	270.2
Adjustments, pre-tax:
Fair value and timing adjustments		(10.2	)		26.6			(15.4	)		18.8
Acquisition activities		—			—			1.9			—
Income tax adjustments		2.5			(6.6	)		3.4			(4.7	)
Net Economic Earnings	$	196.6		$	199.2		$	279.3		$	284.3

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

	March 31,			September 30,			March 31,
	2024			2023			2023
Total Assets:
Gas Utility	$	8,646.3		$	8,486.7		$	8,317.6
Gas Marketing		191.4			332.0			335.0
Midstream		845.2			574.3			506.2
Other		2,467.2			2,533.3			1,959.1
Eliminations		(1,438.7	)		(1,612.7	)		(1,068.9	)
Total Assets	$	10,711.4		$	10,313.6		$	10,049.0