(Dollars in millions, except per share amounts)





This section analyzes the financial condition and results of operations of Spire
Inc. (the "Company"), Spire Missouri Inc., and Spire Alabama Inc. Spire
Missouri, Spire Alabama and Spire EnergySouth are wholly owned subsidiaries of
the Company. Spire Missouri, Spire Alabama and the subsidiaries of Spire
EnergySouth (Spire Gulf and Spire Mississippi) are collectively referred to as
the "Utilities." This section includes management's view of factors that affect
the respective businesses of the Company, Spire Missouri and Spire Alabama,
explanations of financial results including changes in earnings and costs from
the prior periods, and the effects of such factors on the Company's, Spire
Missouri's and Spire Alabama's overall financial condition and liquidity.



Certain matters discussed in this report, excluding historical information,
include forward-looking statements. Certain words, such as "may," "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "seek," "target," and similar
words and expressions identify forward-looking statements that involve
uncertainties and risks. Future developments may not be in accordance with our
current expectations or beliefs and the effect of future developments may not be
those anticipated. Among the factors that may cause results or outcomes to
differ materially from those contemplated in any forward-looking statement are:



• Weather conditions and catastrophic events, particularly severe weather in

U.S. natural gas producing areas;

• Volatility in gas prices, particularly sudden and sustained changes in

natural gas prices, including the related impact on margin deposits

associated with the use of natural gas derivative instruments, and the impact

on our competitive position in relation to suppliers of alternative heating

sources, such as electricity;

• Changes in gas supply and pipeline availability, including as a result of

decisions by natural gas producers to reduce production or shut in producing

natural gas wells and expiration or termination of existing supply and

transportation arrangements that are not replaced with contracts with similar

terms and pricing (including as a result of a failure of the Spire STL

Pipeline to retain its permanent Certificate of Public Convenience and

Necessity from the FERC due to any appeal related to the FERC's December 15,

2022 order granting such certificate or as a result of any related regulatory

uncertainty), as well as other changes that impact supply for and access to


     the markets in which our subsidiaries transact business;


  •  Acquisitions may not achieve their intended results;


  •  Legislative, regulatory and judicial mandates and decisions, some of which

     may be retroactive, including those affecting:


  ?  allowed rates of return and recovery of prudent costs,


  ?  incentive regulation,


  ?  industry structure,


  ?  purchased gas adjustment provisions,


  ?  rate design structure and implementation,


  ?  capital structures established for rate-setting purposes,


  ?  regulatory assets,


  ?  non-regulated and affiliate transactions,


  ?  franchise renewals,


  ?  authorization to operate facilities,


  ?  environmental or safety matters, including the potential impact of

legislative and regulatory actions related to climate change and pipeline


     safety and security,


  ?  taxes,

? pension and other postretirement benefit liabilities and funding obligations,


     or


  ?  accounting standards;


  •  The results of litigation;


  •  The availability of and access to, in general, funds to meet our debt

obligations prior to or when they become due and to fund our operations and


     necessary capital expenditures, either through (i) cash on hand, (ii)
     operating cash flow, or (iii) access to the capital markets;


  •  Retention of, ability to attract, ability to collect from, and conservation
     efforts of, customers;




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• Our ability to comply with all covenants in our indentures and credit

facilities, any violations of which, if not cured in a timely manner, could


     trigger a default of our obligation;


  •  Energy commodity market conditions;


  •  Discovery of material weakness in internal controls;

• The disruption, failure or malfunction of our operational and information

technology systems, including due to cyberattacks; and

• Employee workforce issues, including but not limited to labor disputes, the

inability to attract and retain key talent, and future wage and employee

benefit costs, including costs resulting from changes in discount rates and


     returns on benefit plan assets.



Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Company's Condensed Consolidated Financial Statements, Spire Missouri's and Spire Alabama's Condensed Financial Statements, and the notes thereto.





OVERVIEW



Certain information is presented by reportable segment, as described below.
Effective during the first quarter of fiscal 2023, the Company changed its
reportable segments to reflect changes in the way its chief operating decision
maker evaluates the performance of its operations, develops strategy and
allocates capital resources. Specifically, Midstream, which was formerly
included in Other is now reported separately. The Company's historical segment
disclosures have been recast to be consistent with the current presentation.



The Company has three reportable segments: Gas Utility, Gas Marketing, and
Midstream. Spire's earnings are derived primarily from its Gas Utility segment,
which reflects the regulated activities of the Utilities. Due to the seasonal
nature of the Utilities' business and the volumetric Spire Missouri rate design,
earnings of Spire and each of the Utilities are typically concentrated during
the heating season of November through April each fiscal year.



Gas Utility - Spire Missouri





Spire Missouri is Missouri's largest natural gas distribution utility and is
regulated by the MoPSC. Spire Missouri serves St. Louis, Kansas City, and other
areas throughout the state. Spire Missouri purchases natural gas in the
wholesale market from producers and marketers and ships the gas through
interstate pipelines into its own distribution facilities for sale to
residential, commercial and industrial customers. Spire Missouri also transports
gas through its distribution system for certain larger customers who buy their
own gas on the wholesale market. Spire Missouri delivers natural gas to
customers at rates and in accordance with tariffs authorized by the MoPSC. The
earnings of Spire Missouri are primarily generated by the sale of heating
energy.



Gas Utility - Spire Alabama





Spire Alabama is the largest natural gas distribution utility in the state of
Alabama and is regulated by the APSC. Spire Alabama's service territory is
located in central and northern Alabama. Among the cities served by Spire
Alabama are Birmingham, the center of the largest metropolitan area in the
state, and Montgomery, the state capital. Spire Alabama purchases natural gas
through interstate and intrastate suppliers and distributes the purchased gas
through its distribution facilities for sale to residential, commercial, and
industrial customers, and other end users of natural gas. Spire Alabama also
transports gas through its distribution system for certain large commercial and
industrial customers for a transportation fee. Effective December 1, 2020, for
most of these transportation service customers, Spire Alabama also purchases gas
on the wholesale market for sale to the customer upon delivery to the Spire
Alabama distribution system. All Spire Alabama services are provided to
customers at rates and in accordance with tariffs authorized by the APSC.



Gas Utility - Spire EnergySouth





Spire Gulf and Spire Mississippi are utilities engaged in the purchase, retail
distribution and sale of natural gas to approximately 100,000 customers in
southern Alabama and south-central Mississippi. Spire Gulf is regulated by the
APSC, and Spire Mississippi is regulated by the MSPSC.



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Gas Marketing



Spire Marketing is engaged in the marketing of natural gas and related
activities on a non-regulated basis and is reported in the Gas Marketing
segment. Spire Marketing markets natural gas to customers across the U.S. (and
into Canada), including customers inside and outside of the Utilities' service
areas. It holds firm transportation and storage contracts in order to
effectively manage its transactions with counterparties, which primarily include
producers, municipalities, electric and gas utility companies, and large
commercial and industrial customers.



Midstream



Spire's midstream operations consist of Spire Storage West LLC, Spire Storage
Salt Plains LLC (jointly, "Spire Storage") and Spire STL Pipeline LLC ("Spire
STL Pipeline"). Spire STL Pipeline is a wholly owned subsidiary of Spire which
owns and operates a FERC-regulated 65-mile pipeline connecting the Rockies
Express Pipeline in Scott County, Illinois, to delivery points in St. Louis
County, Missouri, including Spire Missouri's storage facility. Spire STL
Pipeline's operating revenue is derived primarily from Spire Missouri as its
foundation shipper. Spire Storage is engaged in the storage of natural gas in
both the western and midcontinent regions of the United States. The storage
facility located in Wyoming consists of two storage fields operating under one
FERC market-based rate tariff, while the storage facility located in Oklahoma,
acquired on April 1, 2023, operates under intrastate jurisdiction with
authorizations from FERC under Section 311 of the Natural Gas Policy Act to
provide certain interstate storage, transportation, and hub services.



Other



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.



NON-GAAP MEASURES



Net income, earnings per share and operating income reported by Spire, Spire
Missouri and Spire Alabama are determined in accordance with accounting
principles generally accepted in the United States of America (GAAP). Spire,
Spire Missouri and Spire Alabama also provide the non-GAAP financial measures of
net economic earnings, net economic earnings per share and contribution margin.
Management and the Board of Directors use non-GAAP financial measures, in
addition to GAAP financial measures, to understand and compare operating results
across accounting periods, for financial and operational decision making, for
planning and forecasting, to determine incentive compensation and to evaluate
financial performance. These non-GAAP operating metrics should not be considered
as alternatives to, or more meaningful than, the related GAAP measures.
Reconciliations of non-GAAP financial measures to the most directly comparable
GAAP measures are provided on the following pages.



Net Economic Earnings and Net Economic Earnings Per Share





Net economic earnings and net economic earnings per share are non-GAAP measures
that exclude from net income, as applicable, the impacts of fair value
accounting and timing adjustments associated with energy-related transactions,
the impacts of acquisition, divestiture and restructuring activities, the
largely non-cash impacts of impairments, and other non-recurring or unusual
items such as certain regulatory, legislative or GAAP standard-setting actions.
In addition, net economic earnings per share would exclude the impact, in the
fiscal year of issuance, of any shares issued to finance such activities that
have yet to be included in net economic earnings.



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The fair value and timing adjustments are made in instances where the accounting
treatment differs from what management considers the economic substance of the
underlying transaction, including the following:



• Net unrealized gains and losses on energy-related derivatives that are

required by GAAP fair value accounting associated with current changes in the

fair value of financial and physical transactions prior to their completion

and settlement. These unrealized gains and losses result primarily from two

sources:

1) changes in the fair values of physical and/or financial derivatives prior to


     the period of settlement; and


  2) ineffective portions of accounting hedges, required to be recorded in

earnings prior to settlement, due to differences in commodity price changes


     between the locations of the forecasted physical purchase or sale
     transactions and the locations of the underlying hedge instruments;



• Lower of cost or market adjustments to the carrying value of commodity

inventories resulting when the net realizable value of the commodity falls


     below its original cost, to the extent that those commodities are
     economically hedged; and



• Realized gains and losses resulting from the settlement of economic hedges


     prior to the sale of the physical commodity.




These adjustments eliminate the impact of timing differences and the impact of
current changes in the fair value of financial and physical transactions prior
to their completion and settlement. Unrealized gains or losses are recorded in
each period until being replaced with the actual gains or losses realized when
the associated physical transactions occur. Management believes that excluding
the earnings volatility caused by recognizing changes in fair value prior to
settlement and other timing differences associated with related purchase and
sale transactions provides a useful representation of the economic effects of
only the actual settled transactions and their effects on results of operations.
While management uses these non-GAAP measures to evaluate all of its businesses,
the net effect of these fair value and timing adjustments on the Utilities'
earnings is minimal because gains or losses on their natural gas derivative
instruments are deferred pursuant to state regulation.



Contribution Margin



In addition to operating revenues and operating expenses, management also uses
the non-GAAP measure of contribution margin when evaluating results of
operations. Contribution margin is defined as operating revenues less natural
gas costs and gross receipts tax expense. The Utilities pass to their customers
(subject to prudence review by, as applicable, the MoPSC, APSC or MSPSC)
increases and decreases in the wholesale cost of natural gas in accordance with
their PGA clauses or GSA riders. The volatility of the wholesale natural gas
market results in fluctuations from period to period in the recorded levels of,
among other items, revenues and natural gas cost expense. Nevertheless,
increases and decreases in the cost of gas associated with system gas sales
volumes and gross receipts tax expense (which are calculated as a percentage of
revenues), with the same amount (excluding immaterial timing differences)
included in revenues, have no direct effect on operating income. Therefore,
management believes that contribution margin is a useful supplemental measure,
along with the remaining operating expenses, for assessing the Company's and the
Utilities' performance.



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EARNINGS - THREE MONTHS ENDED March 31, 2023

This section contains discussion and analysis of the results for the three months ended March 31, 2023 compared to the results for the three months ended March 31, 2022, in total and by registrant and segment.





Spire


Net Income and Net Economic Earnings

The Company reported net income growth of $5.6 and net economic earnings growth of $18.2, reflecting improved results across all segments in the quarter.

The following tables reconcile the Company's net economic earnings to the most comparable GAAP number, net income.





                                                                                                              Per Diluted
                                                                                                                Common
                                Gas Utility       Gas Marketing       Midstream       Other       Total         Share**
Three Months Ended March 31,
2023
Net Income (Loss) [GAAP]       $       183.5     $           2.2     $       4.2     $ (10.7 )   $ 179.2     $        3.33
Adjustments, pre-tax:
Fair value and timing
adjustments                              0.5                26.1               -           -        26.6              0.50
Income tax adjustments*                 (0.1 )              (6.5 )             -           -        (6.6 )           (0.13 )
Net Economic Earnings (Loss)
[Non-GAAP]                     $       183.9     $          21.8     $      

4.2 $ (10.7 ) $ 199.2 $ 3.70



Three Months Ended March 31,
2022
Net Income (Loss) [GAAP]       $       169.2     $           7.0     $       3.0     $  (5.6 )   $ 173.6     $        3.27
Adjustments, pre-tax:
Fair value and timing
adjustments                                -                 9.9               -           -         9.9              0.20
Income tax adjustments*                    -                (2.5 )             -           -        (2.5 )           (0.05 )
Net Economic Earnings (Loss)
[Non-GAAP]                     $       169.2     $          14.4     $       3.0     $  (5.6 )   $ 181.0     $        3.42




*     Income tax adjustments include amounts calculated by applying federal,
state, and local income tax rates applicable to ordinary income to the amounts
of the pre-tax reconciling items.

**  Net economic earnings per share is calculated by replacing consolidated net
income with consolidated net economic earnings in the GAAP diluted earnings per
share calculation, which includes reductions for cumulative preferred dividends
and participating shares.



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Reconciliations of contribution margin to the most directly comparable GAAP measure are shown below.





                               Gas Utility       Gas Marketing       Midstream       Other      Eliminations       Consolidated
Three Months Ended March
31, 2023
Operating Income (Loss)
[GAAP]                        $       251.3     $           2.4     $       7.5     $  (0.9 )   $           -     $        260.3
Operation and maintenance
expenses                              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
Less: Gross receipts tax
expense                               (60.0 )              (0.2 )             -           -                 -              (60.2 )
Contribution Margin
[Non-GAAP]                            451.2                 8.9            16.5         4.1              (4.0 )            476.7
Natural gas costs                     543.3                51.5               -           -              (8.3 )            586.5
Gross receipts tax expense             60.0                 0.2               -           -                 -               60.2
Operating Revenues            $     1,054.5     $          60.6     $      16.5     $   4.1     $       (12.3 )   $      1,123.4

Three Months Ended March
31, 2022
Operating Income [GAAP]       $       230.4     $           9.6     $       5.2     $     -     $           -     $        245.2
Operation and maintenance
expenses                              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
Less: Gross receipts tax
expense                               (51.9 )                 -               -           -                 -              (51.9 )
Contribution Margin
[Non-GAAP]                            409.5                13.6            13.8         4.3              (4.2 )            437.0
Natural gas costs                     356.0                45.8               -           -              (9.8 )            392.0
Gross receipts tax expense             51.9                   -               -           -                 -               51.9
Operating Revenues            $       817.4     $          59.4     $      13.8     $   4.3     $       (14.0 )   $        880.9




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Select variances for the quarter ended March 31, 2023 compared to the quarter
ended March 31, 2022 are summarized in the following table and discussed below.



                                     Gas             Gas                          Other, Net of
Variances: Fiscal 2023 Versus
Fiscal 2022                        Utility        Marketing       Midstream        Eliminations       Consolidated
Net Income                        $     14.3     $      (4.8 )   $       1.2     $           (5.1 )   $         5.6
Net Economic Earnings
[Non-GAAP]                              14.7             7.4             1.2                 (5.1 )            18.2
Operating Revenues                     237.1             1.2             2.7                  1.5             242.5
Contribution Margin [Non-GAAP]          41.7            (4.7 )           2.7                 (0.0 )            39.7
Operation and Maintenance
Expenses                                15.1             2.5             0.4                  0.9              18.9
Interest Expense                                                                                               19.7
Other Income                                                                                                   10.4
Income Tax                                                                                                      0.2




The increase in interest expense reflects the significant increase in short-term
interest rates and higher debt levels versus the prior year. Current year
weighted-average short-term debt increased, driven by timing of gas cost
recoveries, and weighted-average short-term interest rates were 5.03% in the
current-year quarter, versus 0.56% in the prior-year quarter.



After removing the impact of the Non-Service Cost Postretirement Benefit Transfer ("NSC Transfer") of $2.8, other income increased $7.6. This increase was primarily the result of favorable inventory carrying cost credits and mark-to-market valuations on unqualified retirement trusts at Spire Missouri.





The change in income taxes reflects slightly favorable income mix. Removing this
impact, the change in income taxes is in line with the change in pre-tax book
income.



Gas Utility



For the quarter ended March 31, 2023, Gas Utility net income was $14.3 higher
than the prior-year period, driven by $13.9 growth at Spire Missouri. Net
economic earnings in the current year was $14.7 higher than the prior year,
which tracks the net income trend. These results are described in further detail
below.


The increase in Gas Utility operating revenues was attributable to the following factors:

Spire Missouri and Spire Alabama - Higher PGA/GSA rates (gas cost recovery)

                                                              $    

219.2


Spire Missouri - 2022 rate order                                            

36.2


Spire Alabama - RSE adjustments, net                                        

7.9

Spire EnergySouth

3.1


Spire Missouri and Spire Alabama - Volumetric usage (net of weather
mitigation)                                                                  (32.6 )
All other factors                                                              3.3
Total Variation                                                        $     237.1




The primary driver of revenue growth was $219.2 in higher gas cost recoveries in
the current year reflecting the higher average gas costs being passed through to
customers, and a $36.2 increase from Spire Missouri resulting from the impact of
implementing the 2022 rate order. The current-year quarter also benefited
from Spire Alabama's favorable RSE adjustments of $7.9 and an increase of
$3.1 at Spire EnergySouth. These favorable impacts were partly offset by lower
volumetric usage (net of weather mitigation) totaling $32.6 across Spire
Missouri and Spire Alabama.



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The year-over-year increase in Gas Utility contribution margin was attributable to the following factors:





Spire Missouri - 2022 rate order                                       $    

36.2


Spire Alabama - RSE adjustments, net                                        

6.4

Spire EnergySouth

3.2


Spire Missouri and Spire Alabama - Volumetric usage (net of weather
mitigation)                                                                   (5.0 )
All other factors                                                              0.9
Total Variation                                                        $      41.7




Contribution margin growth versus the prior year was primarily driven by the
previously mentioned $36.2 increase from the impact of the Spire Missouri 2022
rate order, $6.4 from favorable rate adjustments within the RSE framework at
Spire Alabama, and gains of $3.2 at Spire EnergySouth.



O&M expenses for the three months ended March 31, 2023, were $15.1 higher than
the prior year. Run-rate expenses increased $12.4 after removing the $2.7 impact
of the NSC Transfer. The Gas Utility segment O&M increase reflects approximately
$6.0 due to the change in treatment of Spire Missouri general overheads that
were being deferred in the prior-year period, higher non-employee operations
expense of $5.8 and higher bad debts expense of $2.9. These unfavorable impacts
were only partly offset by lower employee-related expenses and favorable
insurance expense.



Taxes, other than income taxes, increased $10.1, and were driven by $8.1 in higher pass-through gross receipts taxes, along with higher property taxes resulting from the continued infrastructure build-out by the Utilities. Depreciation and amortization expenses for the quarter ended March 31, 2023 were $3.7 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities.





Gas Marketing



Net economic earnings reflect the strong operating results experienced in the
current-year quarter, driven by favorable market conditions that allowed the
business to take advantage of regional basis differentials to optimize storage
and transportation positions, only slightly offset by higher O&M costs from
associated higher employee-related costs. Net income reflected these same
variance drivers, as well as the unfavorable quarter-over-quarter mark-to-market
activity on open derivative contracts.



Midstream


Net income and net economic earnings for the Company's Midstream segment increased $1.2 for the quarter ended March 31, 2023 versus the prior-year quarter, primarily attributable to Spire Storage, reflecting optimized operational and withdrawal commitments. The $2.7 increase in revenues and contribution margin reflect the optimization activity at Spire Storage. Operating expenses across the segment were in line with the prior-year quarter.





Other



The Company's other activities generated a $10.7 loss in the three months ended
March 31, 2023, $5.1 higher than the prior-year quarter. The larger current-year
loss was driven by $3.8 higher interest expense in the current year, reflecting
both higher borrowings and interest rates, combined with higher corporate costs.



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Spire Missouri



                                       Three Months Ended March 31,
                                         2023                2022
Operating Income [GAAP]              $       147.5       $       130.2
Operation and maintenance expenses            77.4                64.3
Depreciation and amortization                 39.2                35.9
Taxes, other than income taxes                61.2                53.0
Less: Gross receipts tax expense             (45.6 )             (39.0 )
Contribution Margin [Non-GAAP]               279.7               244.4
Natural gas costs                            465.7               287.8
Gross receipts tax expense                    45.6                39.0
Operating Revenues                   $       791.0       $       571.2
Net Income                           $       112.1       $        98.2




Revenues for the quarter ended March 31, 2023 were $219.8 higher than the
comparable prior-year period. A key driver was an increase in gas recovery costs
totaling $184.0. Further, $36.2 of the increase was attributable to fiscal 2023
results including the impact of the implementation of the 2022 rate
order. Higher gross receipts taxes contributed a $6.6 increase. These
revenue growth drivers were only partially offset by lower off-system sales of
$6.8.


Contribution margin for the three months ended March 31, 2023, increased $35.3 from the same period in the prior year, largely as a result of the previously mentioned timing of the 2022 rate case implementation generating $36.2 incremental contribution.





Reported O&M expenses for the current-year quarter increased $13.1 versus the
prior year. Run-rate expenses increased $10.8 after removing the $2.3 impact of
the NSC Transfer. The increase was largely due to $6.0 of general overheads
that were previously deferred and were not reflected in rates collected during
the current year. The increase also reflects higher non-employee operations
expense of $4.8 and higher bad debts expense of $2.7, partly offset by lower
employee-related expenses and favorable insurance expense.



Depreciation and amortization expenses increased $3.3 versus the prior-year
quarter due to ongoing capital investments. Taxes, other than income taxes,
increased $8.2, driven by the higher pass-through gross receipts taxes of $6.6,
combined with higher property taxes resulting from the continued infrastructure
build-out.


Other income improved by $6.0 after removing the $2.3 impact due to the NSC Transfer. This variance is primarily attributable to increased inventory carrying cost credits and, to a lesser extent, mark-to-market valuations on unqualified retirement trusts. Interest expense increased $10.4, reflecting higher short-term interest rates in the current year and the $400 in long-term debt that was issued early in the current-year second quarter.

Resulting net income for the quarter ended March 31, 2023 represents a $13.9 increase in results versus the prior-year quarter.





Degree days in Spire Missouri's service areas during the three months ended
March 31, 2023, were 13.7% warmer than normal, and 14.4% warmer than the same
period last year. Spire Missouri's total system volume sold and transported were
657.8 million centum (Latin for "hundred") cubic feet (CCF) for the quarter,
compared with 765.5 million CCF for the same period in the prior year. Total
off-system volume sold and transported were 1.2 million CCF for the current-year
quarter, compared with 14.4 million CCF a year ago.



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Spire Alabama



                                       Three Months Ended March 31,
                                         2023                2022
Operating Income [GAAP]              $        88.9       $        87.9
Operation and maintenance expenses            34.5                32.9
Depreciation and amortization                 17.0                16.7
Taxes, other than income taxes                16.1                14.5
Less: Gross receipts tax expense             (12.6 )             (11.3 )
Contribution Margin [Non-GAAP]               143.9               140.7
Natural gas costs                             61.8                52.1
Gross receipts tax expense                    12.6                11.3
Operating Revenues                   $       218.3       $       204.1
Net Income                           $        60.0       $        62.4




Operating revenues for the three months ended March 31, 2023 increased
$14.2 from the same period in the prior year. The change in operating revenue
was principally due to $35.2 higher gas recovery costs, and net favorable
regulatory adjustments of $7.9 under the RSE framework, and an increase in
off-system sales totaling $1.1. These favorable impacts were only partly offset
by the $31.0 decrease attributable to unfavorable weather/usage impacts.



Contribution margin was $3.2 higher versus the prior-year quarter, primarily
driven by $6.4 favorable net rate adjustments under the RSE mechanism, slightly
offset by $3.4 unfavorable weather/usage variance after weather mitigation.



O&M expenses for the three months ended March 31, 2023 increased $1.6 versus the
prior-year quarter, $1.4 after removing the NSC Transfer variance versus the
prior-year quarter. The increase was primarily due to higher non-employee
operating expenses that were only partly offset by lower employee-related
expenses.



Depreciation and amortization expenses were up $0.3, the result of continued
investment in infrastructure upgrades. Interest expense for the current-year
quarter increased $4.3 versus the prior-year quarter, the result of
significantly higher short-term interest rates and to a lesser extent, higher
levels of long-term debt.


For the quarter ended March 31, 2023, resulting net income decreased $2.4 versus the prior-year quarter.





As measured in degree days, temperatures in Spire Alabama's service area during
the three months ended March 31, 2023, were 26.3% warmer than normal and 12.4%
warmer than a year ago. Spire Alabama's total system volume sold and transported
were 295.6 million CCF for the three months ended March 31, 2023, compared with
319.7 million CCF for the same period in the prior year. Total off-system
volume sold and transported were 13.4 million CCF for the quarter, compared with
nominal off-system volume sold and transported in last year's second quarter.



EARNINGS - SIX MONTHS ENDED March 31, 2023





This section contains discussion and analysis of the results for the six months
ended March 31, 2023 compared to the results for the six months ended March 31,
2022, in total and by registrant and segment.



Spire


Net Income and Net Economic Earnings

The Company reported net income growth of $40.9 and net economic earnings growth of $40.7, reflecting improved results across all segments.

The following tables reconcile the Company's net economic earnings to the most comparable GAAP number, net income.


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                                                                                                              Per Diluted
                                                                                                                 Common
                               Gas Utility       Gas Marketing       Midstream       Other        Total         Share**
Six Months Ended March 31,
2023
Net Income (Loss) [GAAP]      $       246.4     $          33.8     $       8.0     $  (18.0 )   $  270.2     $       4.99
Adjustments, pre-tax:
Fair value and timing
adjustments                             0.5                18.3               -            -         18.8             0.36
Income tax effect of
adjustments*                           (0.1 )              (4.6 )             -            -         (4.7 )          (0.09 )
Net Economic Earnings
(Loss) [Non-GAAP]             $       246.8     $          47.5     $       

8.0 $ (18.0 ) $ 284.3 $ 5.26



Six Months Ended March 31,
2022
Net Income (Loss) [GAAP]      $       232.3     $           4.7     $       5.5     $  (13.2 )   $  229.3     $       4.28
Adjustments, pre-tax:
Fair value and timing
adjustments                               -                13.6               -            -         13.6             0.27
Income tax effect of
adjustments*                            4.1                (3.4 )             -            -          0.7             0.01
Net Economic Earnings
(Loss) [Non-GAAP]             $       236.4     $          14.9     $       5.5     $  (13.2 )   $  243.6     $       4.56




*      Income tax adjustments include amounts calculated by applying federal,
state, and local income tax rates applicable to ordinary income to the amounts
of the pre-tax reconciling items, and for fiscal 2022, include a $4.1 Spire
Missouri regulatory adjustment.

**   Net economic earnings per share is calculated by replacing consolidated net
income with consolidated net economic earnings in the GAAP diluted earnings per
share calculation, which includes reductions for cumulative preferred dividends
and participating shares.



Reconciliations of contribution margin to the most directly comparable GAAP
measure are shown below.



                               Gas Utility       Gas Marketing       Midstream       Other       Eliminations       Consolidated
Six Months Ended March 31,
2023
Operating Income (Loss)
[GAAP]                        $       353.2     $          43.8     $      14.6     $   (1.1 )   $           -     $        410.5
Operation and maintenance
expenses                              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
Less: Gross receipts tax
expense                               (90.4 )              (0.2 )             -            -                 -              (90.6 )
Contribution Margin
[Non-GAAP]                            752.2                57.0            31.7          8.1              (7.9 )            841.1
Natural gas costs                     944.9                77.5               -            -             (16.7 )          1,005.7
Gross receipts tax expense             90.4                 0.2               -            -                 -               90.6
Operating Revenues            $     1,787.5     $         134.7     $      31.7     $    8.1     $       (24.6 )   $      1,937.4

Six Months Ended March 31,
2022
Operating Income (Loss)
[GAAP]                        $       324.8     $           6.5     $       9.8     $   (0.6 )   $           -     $        340.5
Operation and maintenance
expenses                              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
Less: Gross receipts tax
expense                               (73.6 )              (0.2 )             -            -                 -              (73.8 )
Contribution Margin
[Non-GAAP]                            681.1                13.3            26.7          8.0              (7.8 )            721.3
Natural gas costs                     566.2                93.8               -            -             (18.8 )            641.2
Gross receipts tax expense             73.6                 0.2               -            -                 -               73.8
Operating Revenues            $     1,320.9     $         107.3     $      26.7     $    8.0     $       (26.6 )   $      1,436.3




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Select variances for the  six months ended March 31, 2023 compared to the  six
months ended March 31, 2022 are summarized in the following table and discussed
below.



                                     Gas             Gas                          Other, Net of
Variances: Fiscal 2023 Versus
Fiscal 2022                        Utility        Marketing       Midstream        Eliminations       Consolidated
Net Income                        $     14.1     $      29.1     $       2.5     $           (4.8 )   $        40.9
Net Economic Earnings
[Non-GAAP]                              10.4            32.6             2.5                 (4.8 )            40.7
Operating Revenues                     466.6            27.4             5.0                  2.1             501.1
Contribution Margin [Non-GAAP]          71.1            43.7             5.0                    -             119.8
Operation and Maintenance
Expenses                                27.7             6.1             0.4                  0.4              34.6
Interest Expense                                                                                               34.7
Other Income                                                                                                    9.0
Income Tax                                                                                                      3.4




The increase in interest expense reflects the significant increase in short-term
interest rates and higher debt levels versus the prior year. Current-year
weighted-average short-term debt increased over $230, driven by timing of gas
cost recoveries, and weighted-average short-term interest rates were 4.7% in the
current year, versus 0.5% in the prior year.



The change in other income was $8.2 after removing the impact of the NSC Transfer of $0.8. This increase was primarily the result of increased inventory carrying-cost credits, along with favorable mark-to-market valuations on unqualified retirement trusts at Spire Missouri.

After removing the $4.1 Spire Missouri regulatory charge that was recorded in the prior year, the change in income taxes is consistent with the change in pre-tax book income.





Gas Utility



For the six months ended March 31, 2023, Gas Utility net income was $14.1 higher
than the prior-year period, as the $5.4 decrease experienced by Spire Alabama
was more than offset by the $15.9 and $3.6 growth at Spire Missouri and Spire
EnergySouth, respectively. Net economic earnings in the current year was
$10.4 higher than the prior year, which tracks the net income trend after
removing the Spire Missouri $4.1 GAAP regulatory adjustment in the prior-year
period. These results are described in further detail below.



The increase in Gas Utility operating revenues was attributable to the following factors:

Spire Missouri and Spire Alabama - Higher PGA/GSA rates (gas cost recovery)

                                                              $    

394.3


Spire Missouri - 2021 and 2022 rate case outcomes                           

54.6


Spire Missouri and Spire Alabama - Higher gross receipts taxes              

16.2

Spire EnergySouth

13.5


Spire Alabama - RSE adjustments, net                                        

9.4


Spire Alabama - Volumetric usage (net of weather mitigation)                 (25.3 )
All other factors                                                              3.9
Total Variation                                                        $     466.6




The primary driver of revenue growth in the current year-to-date results
was $394.3 in higher gas cost recoveries at the utilities of Spire Missouri and
Spire Alabama in the current year, reflecting higher average gas costs being
passed through to customers. The current year also benefited from
a $54.6 increase at Spire Missouri resulting from the current-year impacts of
implementing the 2022 and 2021 rate orders. The current year-to-date results
also benefited from higher gross receipts taxes of $16.2 at Spire Missouri and
Spire Alabama, growth of $13.5 at Spire EnergySouth, and $9.4 at Spire Alabama,
reflecting favorable rate adjustments within the RSE framework. These favorable
impacts were only partly offset by an unfavorable volumetric usage impact (net
of weather mitigation) totaling $25.3 at Spire Alabama.



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The year-over-year increase in Gas Utility contribution margin was attributable to the following factors:





Spire Missouri - 2021 and 2022 rate case outcomes          $ 54.6
Spire Alabama - Rate adjustment under RSE mechanism, net      7.8
Spire EnergySouth                                             6.1
All other factors                                             2.6
Total Variation                                            $ 71.1




Year-to-date contribution margin growth was primarily driven by the
$54.6 increase from the Spire Missouri 2022 and 2021 rate order implementations,
$7.8 from favorable rate adjustments within the RSE framework at Spire Alabama,
and a $6.1 increase at Spire EnergySouth.

O&M expenses for the six months ended March 31, 2023, were $27.7 higher than the
prior year. Run-rate expenses increased $27.0 after removing the $0.7 impact of
the NSC Transfer. The Gas Utility segment O&M increase reflects higher
non-employee operations expense of $12.1, approximately $12 due to the change in
treatment of Spire Missouri general overheads that were being deferred in the
prior-year period, and higher bad debts expense of $5.5. These impacts were only
partly offset by favorable insurance expense and lower employee-related
expenses.



Taxes, other than income taxes, increased $23.0, and were driven by $16.8 in
higher pass-through gross receipts taxes, along with higher property taxes
resulting from the continued infrastructure build-out by the
Utilities. Depreciation and amortization expenses for the first half of fiscal
2023 were $8.8 higher than the same period in the prior year primarily driven by
continued infrastructure capital expenditures across all the Utilities.



Gas Marketing

Net income and net economic earnings reflect the strong operating results experienced in the current-year, driven by favorable market conditions that allowed the business to take advantage of regional basis differentials to optimize storage and transportation positions, only slightly offset by higher O&M costs associated with higher employee-related expenses.





Midstream



Net income and net economic earnings for the Company's Midstream segment
increased $2.5 for the year-to-date ended March 31, 2023 versus the prior-year
period. Of this increase, $2.4 was attributable to Spire Storage, reflecting
optimized operational and withdrawal commitments. The $5.0 increase in revenues
and contribution margin reflect the optimization activity at Spire Storage.
Operating expenses across the segment were in-line with the prior-year-to-date
period.



Other



The Company's other activities generated a $18.0 loss in the six months ended
March 31, 2023, $4.8 higher than the prior-year corresponding period. The larger
current-year loss was driven by $7.2 higher interest expense, reflecting both
higher borrowings and interest rates, and higher corporate costs, offset
partly by lower income tax expense.



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Spire Missouri



                                         Six Months Ended March 31,
                                          2023                 2022
Operating Income [GAAP]              $         219.9       $      195.6
Operation and maintenance expenses             154.5              130.6
Depreciation and amortization                   77.8               70.1
Taxes, other than income taxes                  97.6               78.7
Less: Gross receipts tax expense               (67.7 )            (53.9 )
Contribution Margin [Non-GAAP]                 482.1              421.1
Natural gas costs                              782.4              444.1
Gross receipts tax expense                      67.7               53.9
Operating Revenues                   $       1,332.2       $      919.1
Net Income                           $         159.4       $      143.5




Revenues for the six months ended March 31, 2023 were $413.1 higher than the
comparable prior-year period. A key driver was an increase in gas recovery costs
totaling $343.9. Further, $54.6 of the increase was attributable to fiscal 2023
results including the cumulative impacts of the implementation of the 2022 and
2021 rate orders. Higher gross receipts taxes contributed a $13.8 increase, and
volume (net of weather mitigation) contributing $5.0 growth. These
revenues growth drivers were only partially offset by lower off-system sales of
$6.3.



Contribution margin for the six months ended March 31, 2023 increased $61.0 from
the same period in the prior year, largely as a result of the previously
mentioned timing of the 2022 and 2021 rate case implementations generating
$54.6 incremental contribution, combined with favorable volumetric impacts of
$5.0.



Reported O&M expenses for the current year-to-date period increased $23.9 versus
the prior year. Run-rate expenses increased $23.5 after removing the $0.4 impact
of the NSC Transfer. The increase was largely due to approximately $12 of
general overheads that were previously deferred and were not reflected in rates
collected during the current year. The increase also reflects higher
non-employee operations expense of $10.4 and higher bad debts expense of $4.3,
partly offset by lower employee-related expenses and favorable insurance
expense in the current year.



Other income was higher by $7.0, after removing the $0.4 expense due to the NSC
Transfer. This variance is primarily attributable to increased inventory
carrying cost credits, combined with favorable mark-to-market valuations on
unqualified retirement trusts. Interest expense increased $17.9, primarily
reflecting higher short-term interest rates and net long-term debt issuances in
the current year.


Resulting net income for the six months ended March 31, 2023 represents a $15.9 increase versus the prior-year period.





Degree days in Spire Missouri's service areas during the six months ended March
31, 2023 were 8.5% warmer than normal, but 1.7% colder than the same period last
year. Spire Missouri's total system volume sold and transported were
1,215.9 million CCF for the first half of this year, compared with
1,196.5 million CCF for the same period in the prior year. Total off-system
volume sold and transported were 3.9 million CCF for the current year, compared
with 16.5 million CCF a year ago.



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Spire Alabama



                                        Six Months Ended March 31,
                                         2023                2022
Operating Income [GAAP]              $       109.2       $       109.0
Operation and maintenance expenses            69.6                67.4
Depreciation and amortization                 34.0                33.2
Taxes, other than income taxes                26.7                23.5
Less: Gross receipts tax expense             (19.4 )             (17.0 )
Contribution Margin [Non-GAAP]               220.1               216.1
Natural gas costs                            131.2                97.6
Gross receipts tax expense                    19.4                17.0
Operating Revenues                   $       370.7       $       330.7
Net Income                           $        69.2       $        74.6




Revenues for the six months ended March 31, 2023 were $40.0 higher than the
comparable prior-year period. A key driver was an increase in gas recovery costs
totaling $50.4. Further, $9.4 of the increase was attributable to fiscal 2023
results including favorable adjustments under the RSE framework. Revenue in the
current year also benefited $5.5 due to the combination of higher off-system
sales and gross receipts taxes. These growth drivers were only partially offset
by $25.3 unfavorable volume impacts (net of weather mitigation).



Contribution margin for the six months ended March 31, 2023, increased $4.0 from
the same period in the prior year, as favorable RSE adjustments of $7.8 more
than offset unfavorable volumetric impacts of $4.1.



Reported O&M expenses for the first half of fiscal 2023 increased $2.2 versus
the comparable prior-year period. Run-rate expenses increased $2.0 after
removing the $0.2 impact of the NSC Transfer. The increase was largely due to
higher non-employee operations expense, a $0.7 increase in bad debts
expense, partly offset by lower employee-related expenses.



Depreciation and amortization expenses were up $0.8, the result of continued
investment in infrastructure upgrades. Interest expense for the six months ended
March 31, 2023 increased $7.5 versus the prior-year period, the result of
significantly higher short-term interest rates and, to a lesser extent, higher
levels of long-term debt.


For the six months ended March 31, 2023, resulting net income decreased $5.4 versus the prior-year period.





As measured in degree days, temperatures in Spire Alabama's service area during
the six months ended March 31, 2023 , were 22.0% warmer than normal and 10.9%
warmer than a year ago. Spire Alabama's total system volume sold and transported
were 547.7 million CCF for the six months ended March 31, 2023 , compared with
572.5 million CCF for the same period in the prior year. Total off-system
volume sold and transported were 28.0 million CCF for the first half this year,
compared with 0.1 million CCF a year ago.



LIQUIDITY AND CAPITAL RESOURCES





Recent Cash Flows



                                                Six Months Ended March 31,
Cash Flow Summary                                 2023               2022

Net cash provided by operating activities $ 179.9 $ 155.1 Net cash used in investing activities

              (340.7 )            (273.2 )
Net cash provided by financing activities           161.5               122.0




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For the six months ended March 31, 2023, net cash from operating activities
improved $24.8 from the corresponding period of fiscal 2022. The key drivers to
the favorable change are the $40.9 increase in net income (discussed above),
coupled with changes related to regulatory timing and fluctuation in working
capital items (as discussed below in the Future Cash Requirements section).



For the six months ended March 31, 2023, net cash used in investing activities was $67.5 greater than for the same period in the prior year. As discussed in


  Note 1   of the Notes to Financial Statements in Item 1, on March 31, 2023,
Spire made an advance payment of the $37.1 preliminary purchase price for the
subsequent acquisition of a natural gas storage facility. Total capital
expenditures were $31.9 higher than last year, with a $24.1 spending increase in
the Utilities, and a $11.7 increase for Spire Storage, partially offset by a
$5.3 spending decline at Spire STL Pipeline.



Lastly, for the six months ended March 31, 2023, net cash provided by financing
activities increased $39.5 versus the six months ended March 31, 2022.
Current-year long-term debt issuances were $755.0, or $455.0 higher than a year
ago, and repayments of long-term debt in the current period declined $24.6
compared to the prior-year period. Offsetting a substantial portion of the
higher net long-term debt issuances was a $411.6 net increase in repayments of
short-term debt. Cash from the issuance of common stock in the current-year
period was $3.6, a decline of $20.4 from the comparative period; see the
discussion regarding Spire's forward sales of stock under its ATM program in
  Note 4   of the Notes to Financial Statements in Item 1. Finally, dividends
paid on common stock rose $4.4 in the first half of fiscal 2023 compared to the
first half of fiscal 2022.



Future Cash Requirements



The Company's short-term borrowing requirements typically peak during colder
months when the Utilities borrow money to cover the lag between when they
purchase natural gas and when their customers pay for that gas. Changes in the
wholesale cost of natural gas (including cash payments for margin deposits
associated with Spire Missouri's use of natural gas derivative instruments),
variations in the timing of collections of gas cost under the Utilities' PGA
clauses and GSA riders, the seasonality of accounts receivable balances, and the
utilization of storage gas inventories cause short-term cash requirements to
vary during the year and from year to year, and may cause significant variations
in the Company's cash provided by or used in operating activities.



Spire's material cash requirements as of March 31, 2023, are related to capital
expenditures, principal and interest payments on long-term debt, natural gas
purchase obligations, and dividends. Except for the issuance of debt described
in   Note 6   of the Notes to Financial Statements in Item 1, there were no
material changes outside the ordinary course of business from the future cash
requirements discussed in the Company's Annual Report on Form 10-K for the
fiscal year ended September 30, 2022. Total Company capital expenditures are
planned to be $700 for fiscal 2023.



Source of Funds



It is management's view that the Company, Spire Missouri and Spire Alabama have
adequate access to capital markets and will have sufficient capital resources,
both internal and external, to meet anticipated requirements. Their debt is
rated by two rating agencies: Standard & Poor's Corporation ("S&P") and Moody's
Investors Service ("Moody's"). As of March 31, 2023, the debt ratings of the
Company, Spire Missouri and Spire Alabama (shown in the following table) remain
at investment grade with a stable outlook (other than Moody's negative outlook
for Spire Missouri debt).



                                                S&P    Moody's

Spire Inc. senior unsecured long-term debt BBB+ Baa2 Spire Inc. preferred stock

                      BBB      Ba1
Spire Inc. short-term debt                      A-2      P-2

Spire Missouri senior secured long-term debt A A1 Spire Alabama senior unsecured long-term debt A- A2


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Cash and Cash Equivalents


Bank deposits were used to support working capital needs of the business. Spire had no temporary cash investments as of March 31, 2023.





Short-term Debt



The Company's short-term cash requirements can be met through the sale of up to
$1,300.0 of commercial paper or through the use of Spire's $1,300.0 revolving
credit facility. For information about short-term borrowings, see   Note 6  

of

the Notes to Financial Statements in Item 1.





Long-term Debt and Equity



At March 31, 2023, including the current portion but excluding unamortized
discounts and debt issuance costs, Spire had long-term debt totaling $3,982.7,
of which $2,048.0 was issued by Spire Missouri, $750.0 was issued by Spire
Alabama, and $229.7 was issued by other subsidiaries. For information about
long-term debt issued this fiscal year, see   Note 6   of the Notes to Financial
Statements in Item 1.



Effective March 5, 2022, Spire Missouri was authorized by the MoPSC to issue
conventional term loans, first mortgage bonds, unsecured debt, preferred stock
and common stock in an aggregate amount of up to $800.0 for financings placed
any time before December 31, 2024. Under this authorization through April 2023,
Spire Missouri has issued $40.4 of common stock, a $250.0 term loan, and $400.0
of first mortgage bonds. Spire Alabama has no standing authority to issue
long-term debt and must petition the APSC for each planned issuance.



Spire has a shelf registration statement on Form S-3 on file with the U.S.
Securities and Exchange Commission (SEC) for the issuance and sale of up to
250,000 shares of common stock under its Dividend Reinvestment and Direct Stock
Purchase Plan. There were 147,414 and 142,290 shares at March 31, 2023 and April
30, 2023, respectively, remaining available for issuance under this Form S-3.
Spire and Spire Missouri also have a universal shelf registration statement on
Form S-3 on file with the SEC for the issuance of various equity and debt
securities, which expires on May 9, 2025.



Spire has an "at-the-market" (ATM) equity distribution agreement, pursuant to
which the Company may offer and sell, from time to time, shares of its common
stock (including shares of common stock that may be sold pursuant to forward
sale agreements entered into in connection with the ATM equity distribution
agreement). As of March 31, 2023, under this ATM program, Spire may sell
additional shares with an aggregate offering price of up to $152.8 under the
current Board of Directors authorization expiring May 2025. For additional
information about the ATM program, see   Note 4   of the Notes to Financial
Statements in Item 1.



Taking into account the current portion of long-term debt, the Company's long-term consolidated capitalization consisted of 43% and 46% equity at March 31, 2023 and September 30, 2022, respectively.





ENVIRONMENTAL MATTERS



The Utilities and other Spire subsidiaries own and operate natural gas
distribution, transmission and storage facilities, the operations of which are
subject to various environmental laws, regulations, and interpretations. While
environmental issues resulting from such operations arise in the ordinary course
of business, such issues have not materially affected the Company's, Spire
Missouri's, or Spire Alabama's financial position and results of operations. As
environmental laws, regulations, and interpretations change, however, the
Company and the Utilities may be required to incur additional costs. For
information relative to environmental matters, see Contingencies in   Note
11   of the Notes to Financial Statements in Item 1.



REGULATORY MATTERS


For discussions of regulatory matters for Spire, Spire Missouri, and Spire Alabama, see Note 5 , Regulatory Matters, of the Notes to Financial Statements in Item 1.





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ACCOUNTING PRONOUNCEMENTS


The Company, Spire Missouri and Spire Alabama have evaluated or are in the process of evaluating the effects that recently issued accounting standards will have on the companies' financial position or results of operations upon adoption, but none are currently expected to have a significant impact.

CRITICAL ACCOUNTING ESTIMATES





Our discussion and analysis of our financial condition, results of operations,
liquidity and capital resources are based upon our financial statements, which
have been prepared in accordance with GAAP, which requires that we make
estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and
liabilities. We evaluate our estimates on an ongoing basis. We base our
estimates on historical experience and on various other assumptions that we
believe are reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from
these estimates. Our critical accounting estimates used in the preparation of
our financial statements are described in Item 7 of Spire, Spire Missouri, and
Spire Alabama's combined Annual Report on Form 10-K for the fiscal year ended
September 30, 2022, and include regulatory accounting, employee benefits and
postretirement obligations, impairment of long-lived assets, and income taxes.
There were no significant changes to critical accounting estimates during the
six months ended March 31, 2023.



For discussion of other significant accounting policies, see   Note 1   of the
Notes to Financial Statements included in this Form 10-Q as well as   Note 1
of the Notes to Financial Statements included in Spire, Spire Missouri, and
Spire Alabama's combined Annual Report on Form 10-K for the fiscal year ended
September 30, 2022.



MARKET RISK



There were no material changes in the Company's commodity price risk or
counterparty credit risk as of March 31, 2023, relative to the corresponding
information provided in the Company's Annual Report on Form 10-K for the fiscal
year ended September 30, 2022.



At March 31, 2023, the following swaps were outstanding:





•  From the first quarter of fiscal 2021, one swap contract remains outstanding.
The remaining outstanding contract is a ten-year interest rate swap that has a
notional amount of $50.0 with a fixed interest rate of 1.49180%. The Company
recorded a $1.0 mark-to-market loss to accumulated other comprehensive income on
the swap for the six months ended March 31, 2023.



•  From the second quarter of 2022, two swap contracts remain outstanding. Both
contracts are ten-year interest rate swap contracts; the first swap has a
notional amount of $75.o with a fixed interest rate of 1.6475%, while the second
swap has a notional amount of $25.0 with a fixed interest rate of 1.746%. The
Company recorded a $2.1 mark-to-market loss to accumulated other comprehensive
income on these swaps for the six months ended March 31, 2023.



•  From the first quarter of fiscal 2023, one swap contract is outstanding. The
remaining outstanding contract is a ten-year interest rate swap that has a
notional amount of $50.0 with a fixed interest rate of 3.4480%. The Company
recorded a $1.7 mark-to-market loss to accumulated other comprehensive income on
this swap for the six months ended March 31, 2023.



•  In the second quarter of fiscal 2023, the Company entered into multiple
two-year interest rate swap contracts with a cumulative total notional amount of
$100.0 with fixed interest rates ranging from 3.385% to 3.685%. The Company
recorded an $0.5 mark-to-market loss to accumulated other comprehensive income
on these swaps for the six months ended March 31, 2023.



As of March 31, 2023, the Company has recorded through accumulated other comprehensive income a cumulative mark-to-market net gain of $14.3 on open swaps.





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