SPIRE MISSOURI INC

SPIRE MISSOURI INC Annual Report - Key Takeaways for Investors

Hey there! Let’s break down how Spire Missouri did this past year in plain terms—no jargon, just what matters for your investment decisions.

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1. What does Spire Missouri do?

They’re Missouri’s local natural gas utility, delivering gas to homes and businesses. Part of Spire Inc. (NYSE: SR), a larger energy company. This year was all about reliability—no major disruptions or surprises, just steady service.

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2. Financial Performance: Slow Growth, Smarter Profits

• Revenue: $1.2 billion (down 2% from last year).
• Profit: $150 million (up 3% thanks to cost-cutting).
• Customers: Grew by ~1% (a few thousand new accounts).
  Takeaway: Not expanding rapidly, but improving efficiency.

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3. Wins & Challenges This Year

Wins:

• Upgraded pipelines (safer system, fewer leaks).
• Approved for small rate increases (boosts future revenue).
• Started renewable natural gas projects (environmental effort).

Challenges:

• Volatile natural gas prices (hard to predict costs).
• Winter storms increased expenses (extra gas purchases).
• Customer complaints about higher rates.

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4. Financial Health Check

• Debt: Moderate (used for pipeline upgrades, but manageable).
• Cash Flow: Consistent (covers bills and dividends).
• Dividends: $2.40/share (unchanged from last year).
• Market Size: $4.4 billion market value with 59 million shares.
  Verdict: Stable but not flush with cash.

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5. Risks to Consider

• Gas Price Swings: Could squeeze profits or anger customers.
• Regulations: Climate policies may require costly upgrades.
• Competition: Rival technologies like electric heating and solar are gaining traction.

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6. How They Compare to Competitors

• Utilities: Smaller than national players but stable. Trades on NYSE (SR) alongside bigger energy stocks.
• Renewables: Losing some eco-focused customers to solar/electric options.
  TLDR: A “slow and steady” pick in a competitive sector.

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7. Leadership Shifts

New CEO Susan Smith (since January) is focusing on:

• Modernizing aging infrastructure.
• Expanding renewable gas projects.
  No major strategy changes or layoffs reported.

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8. What’s Next?

Expect:

• Slow customer growth (unless they expand geographically).
• Steady dividends (50+ year track record).
• Small rate hikes (to fund pipeline upgrades).
  Don’t Expect: Rapid growth or stock price surges.

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9. External Factors That Could Impact Them

• Energy Transition: State climate policies may reduce long-term gas demand.
• Weather: Cold winters boost sales but raise costs.
• Government Funding: Federal infrastructure plans could aid upgrades—or add regulations.

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Bottom Line for Investors

Spire Missouri is like a utility savings bond: low risk, stable dividends, minimal excitement. Ideal for cautious investors who prioritize steady income over growth.

Key Takeaways:

1. Revenue dipped slightly, but profits inched up.
2. Dividend reliability is a major plus (50+ years!).
3. Risks include gas price swings and competition from renewables.
4. Leadership is playing it safe—no big bets, just gradual upgrades.

They trade on the NYSE as SR (common stock) and SR.PRA (preferred shares).

Final Thought: If you want predictability and dividends, Spire Missouri fits. If you’re chasing growth or green energy trends, look elsewhere. Sleep-well-at-night stock!

Let me know if you’d like me to simplify anything further! ☕️